REQUIREMENTS AND CONDITIONS UNDER WHICH WITHHOLDING AGENT MAY FILE FORM 1042S INFORMATION RETURNS ON MAGNETIC MEDIA TAPE ARE UPDATED
Rev. Proc. 85-53; 1985-2 C.B. 721
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation85 TNT 223-35
Superseded by Rev. Proc. 86-40
PART A. GENERAL
SECTION 1. PURPOSE AND NATURE OF CHANGES
The purpose of this Revenue Procedure is to update and supersede Rev. Proc. 85-12, 1985-1 C.B. 500, that sets forth the requirements and conditions under which withholding agents, as defined in Section 2.01 below, may file Form 1042S information returns on magnetic tape.
For Tax Year 1985 Form 1042S has been revised. The most significant changes include the elimination of column (f) "Tax Released", consolidation of columns (e) "Amount of tax withheld" and (g) "Net Amount of tax withheld" into one column "Tax Withheld", and the addition of "Payer's name and employer identification number (if different from withholding agent's)".
The following changes have been included in this revenue procedure:
01 The record size for all record types has been expanded from 393 positions to 450 positions.
02 Part A, Section 3.06 the mailing address for magnetic tape shipments has been changed.
03 Part B, Section 2.02 the definition of a Payer (as opposed to a Withholding Agent) has been included.
04 Part B, Section 4 the references to the record length of the Transmitter "T" record have been changed from 393 positions to 450 positions.
05 Part B, Section 4 Element 8, "MX" is no longer a valid State Code for the Transmitter's address.
06 Part B, Section 4 Element 9, Zip Code of the Transmitting Agent, in the Transmitter "T" record has been expanded from 5 to 9 positions.
07 Part B, Section 5 Element 7, Zip Code of the Withholding Agent, in the Recipient "Q" record has been expanded from 5 to 9 positions. This necessitates a shift in relative position for elements 8 and beyond in the Recipient "Q" record.
08 Part B, Section 5 Element 10, Agent's ID Number, in the Recipient "Q" record has been expanded from 10 to 15 positions.
09 Part B, Section 5 Element 11, Country Code list, Kampuchea has changed its name back to Cambodia, however the Country Code (CB) remains unchanged.
10 Part B, Section 5 Element 28 in the Recipient "Q" record has been changed. Amount of Tax Released (element 28 last year) has been deleted and replaced with a new element "Payer's Name" consisting of 35 positions. For a definition of Payer, refer to Part B, Section 2.02.
11 Part B, Section 5 Element 29 in the Recipient "Q" record has been changed. Amount of Net Tax Withheld (element 29 last year) has been deleted and replaced with a new element "Payer's EIN".
12 Part B, Section 5 Element 30, the reserved filler at the end of the Recipient "Q" record has been expanded to accommodate the increase in size of the Recipient "Q" record.
13 Part B, Section 6, the references to the record length of the Withholding Agent "W" record have been changed from 393 positions to 450 positions.
14 Part B, Section 6 Element 8, Zip Code of the Withholding Agent, in the Withholding Agent "W" record has been expanded from 5 to 9 positions. This necessitates a shift in relative position for elements 9 and beyond.
15 Part B, Section 6 Elements 12, 13, and 14 in the Withholding Agent "W" record have been changed. "Total Tax Released" (Element 12 last year) and "Total Net Tax Withheld" (Element 13 last year) have been deleted and merged with last year's element 14 blank filler into a new element 12 consisting of a blank filler.
16 Part B, Section 7, the record length of the End of Reel "Z" record has been changed from 393 positions to 450 positions. Note that the format of the "Z" record is identical to the format of the "W" record as far as element positioning is concerned. Therefore, element 8 (Zip Code) will also expand in the "Z" record from 5 positions to 9 positions, and elements 12, 13, and 14 from last year's format have been merged into a new element 12 of blank filler.
17 Part B, Section 8, the references to the record length of the End of the Transmission "Y" record have been changed from 393 positions to 450 positions.
SEC. 2. APPLICATION FOR TAPE REPORTING
01 A withholding agent is defined as any person or entity, U.S. or foreign, required to withhold U.S. tax on payments of income subject to withholding from sources within the United States as provided for in Chapter 3 of the Internal Revenue Code. A withholding agent may be an individual, partnership, corporation, trust, estate, government agency (Federal, State or local), association, or a tax- exempt foundation or organization.
02 The Internal Revenue Service encourages any entities who must file information returns and who have facilities for submitting this information on magnetic tape to use this method of filing. Withholding agents filing Form 1042S information returns in the form of magnetic tape should also be aware of the current revenue procedures relating to magnetic tape reporting for wage and information documents, disk-pack reporting for wage and information documents, and diskette reporting for wage and information documents. Copies of these revenue procedures are available from any Internal Revenue Service Center.
03 Form 1042S statements may be filed on magnetic tape by withholding agents or by their agents. Tape reporting is not restricted to withholding agents with the ability to submit all their information on magnetic tape. A combination of tape records and paper documents is acceptable so long as there is no duplication or omission of documents.
04 Withholding agents or their agents who desire to file statements in the form of magnetic tape must first file Form 4419, Application for Magnetic Media Reporting of Information. Mail the application to:
Director, Philadelphia Service Center Internal Revenue Service P.O. Box 245 Bensalem, Pennsylvania 19020 Attention: Magnetic Media Coordinator.
The application must contain the following:
(a) Name, address, and Employer Identification Number (EIN) of person, organization or entity making the request.
(b) Name, title, and telephone number of person to contact regarding the request.
(c) An estimate of the number of Form 1042S statements to be reported in tape format, and the number, if any, to be reported on paper forms.
(d) Type and nature of equipment to be used to prepare tape, (i.e., manufacturer and model of main frame and tape drives, tape width (1/2", 3/4", etc.) density (character per inch), and recording mode (BCD, ASCII, EBCDIC, etc.).
(e) List of withholding agent(s) to be included in the file(s) if the requestor is a transmitter or Service Bureau that is filing for a group of withholding agents. This must include each withholding agent's name, complete address (including Zip Code), and EIN. The list should be in EIN sequence.
(f) Signature of official responsible for the preparation of tax reports or his authorized agent.
05 The Service will act on application and notify applicants of authorization or disapproval within 30 days of receipt of applications.
06 Generally, withholding agents using equipment compatible with the Service's can presume that their application will be approved. Compatible tape characteristics are shown in PART "B", Section 1.01. Where the capability to prepare several types of tapes exists, the Service prefers that compatible tapes be prepared.
07 If withholding agents propose to submit convertible tapes, the Service will attempt to find conversion facilities. Generally, an application to file on magnetic tape will be disapproved only when the Service is unable to obtain facilities to convert a withholding agent's file to a compatible form.
08 In general, once authorization to file on magnetic tape has been granted, such approval will continue in effect in succeeding years, providing that the requirements of this Revenue Procedure are met and there are no equipment changes by the withholding agent or transmitter. However, new applications are required:
(a) If the filers change from equipment producing compatible tapes to equipment producing convertible tapes.
(b) If the filers submit tapes that are not listed as either compatible or convertible.
(c) If the filers discontinue tape reporting for one or more years, then decide to resume this method of reporting.
SEC. 3. FILING OF TAPE REPORTS
01 Packaging, shipping, and mailing instructions will be provided in the authorizing letter issued by the Service in response to an application for tape reporting.
02 Withholding agents submitting a portion of their statements on magnetic tape and the remainder on paper forms, should file both magnetic tape records and paper documents at the Philadelphia Service Center, but in separate shipments.
03 The withholding agent's Form 1042 tax return serves as the transmittal document for Form 1042S statements, including those on paper and on magnetic tape. For transmitters of Service Bureaus filing statements on tape for several withholding agents, separate Forms 1042 must be filed by each withholding agent included in the transmittal. Since the required Form 1042 is a tax return (with or without a remittance attached), it must be filed separately from the shipment of magnetic tape. Any additional documents required to be submitted should accompany Form 1042. (See instructions for Form 1042, U.S. Annual Return of Income Tax to Be Paid At Source under Chapter 3. Internal Revenue Code.)
04 The dates prescribed for filing paper documents with the Service will also apply to magnetic tape filing. Requests for extension of time for filing and related matters should be made to the Director, Philadelphia Service Center. If an extension has been granted by the Service, a copy of the letter granting the extension should be attached to the Form 1042.
05 Enclose a transmittal in triplicate, in the first box of the tape shipment, with the following information:
(a) The complete name, address, and EIN of the transmitter of the tape file.
(b) Name, address, title, and telephone number of the person to contact regarding any tape file problem.
(c) The complete name and address to be used in returning tape file.
(d) The manufacturer and model of the main frame and tape drives, the tape width, the density in characters per inch, and the recording code (BCD, Excess 3, Octal, etc.).
(e) The type of document being reported--i.e. Form 1042S.
(f) Total number of tape reels in the file.
06 Ship to:
Internal Revenue Service Center 11601 Roosevelt Blvd. Philadelphia, PA 19155 Attn: Magnetic Media Coordinator
Note on the address side of the shipment:
"EXPEDITE FORM 1042S STATEMENTS ON MAGNETIC TAPE, DELIVER UNOPENED TO TAPE LIBRARY.
07 The magnetic tape specifications contained in PART "B" of this Revenue Procedure must be strictly adhered to. Deviations will not be permitted under any circumstances. All magnetic tape filings will be scanned for completeness of required fields, mathematical verification, and proper format. Tapes failing to meet specifications will not be processed, but will be returned to the transmitter for correction at the discretion of the Director, Philadelphia Service Center.
SEC. 4. PROCESSING OF TAPE STATEMENTS
01 The Service will copy the information from the original tapes and will return the original tapes to the transmitter. Normally, tapes will be returned by September 15 of the year in which submitted. However, if the tapes submitted are unprocessable, and must be returned for correction prior to processing, they will be returned within six months of the receipt of the acceptable tapes. We suggest that the withholding agent retain the original tape until the expiration of the statute of limitations for assessment.
02 The Service will prepare the appropriate statements for transmittal to treaty countries.
SEC. 5. CORRECTED STATEMENTS
01 The appropriate paper forms will normally be used if it is necessary to correct Recipient "Q" records in the magnetic tape files. Since corrected statements supersede information previously supplied, all required data fields must be completed. Annotate each form "Corrected" at the top. Corrected documents should be bundled separately from other paper documents. When correcting documents are shipped separately, an amended Form 1042 must be filed, also suitably annotated.
02 If the withholding agent discovers that a large volume of records submitted have to be corrected, the service center magnetic tape coordinator should be contacted. He/She should ask that the original tape be returned so that the corrections can be made to it. If the service center has already processed the tape, paper documents must be prepared for the ones needing corrections.
SEC. 6. EFFECT ON PAPER DOCUMENTS
01 Magnetic tape reporting to Internal Revenue Service eliminates the need for submission of paper Forms 1042S. However, withholding agents must continue to provide recipients with requisite information, although this need not be on a copy of Form 1042S.
02 If only a portion of the statements are reported on magnetic tape and the remainder are reported on paper forms, those paper statements must be filed on the prescribed forms.
SEC. 7. DATA ENTRIES
01 Since taxpayer identifying numbers are not required on all Forms 1042S (see specific Instructions for Withholding Agents, Copy C of the official Form 1042S), the specifications in PART "B" of this Revenue Procedure permit omission of such identifying numbers. Although identifying numbers are not always required for nonresident alien income recipients, the Service appreciates their being furnished when available.
02 Recipient surnames are used to computer-generate Sort Names. Use an asterisk to indicate the beginning of the surname for this purpose. If the surname is the first name on the line, as may be the case for nationals of Asian countries, the asterisk is to be omitted. In the case of a partnership or joint ownership, or some other case where more than one individual is listed, asterisk only the first surname. A blank will always precede the asterisk when it is used, but no asterisk may be followed by a blank. Do not use an asterisk with a corporate or any other business entity or governmental organization name, except partnerships or sole proprietorships.
03 In the case of multiple recipients, the name of the person whose identifying number has been provided should be placed before all other names.
04 Sometimes the recipient identification recorded on the withholding agent's records is lengthy, and exceeds 105 characters allotted in the Recipient Name Line and Supplemental Name Lines on the magnetic tape records. This is most common in the case of trusts or other types of fiduciary accounts. The first 105 characters of the recipient identification normally provide sufficient descriptive data for the Service's purposes. The Service encourages all agents to truncate or abbreviate lengthy recipient descriptions.
05 All monetary amount fields must show dollars and cents (omit the decimal point). For example, $135.72 must be shown as 13572, and $100 must be shown as 10000. All money amount fields are positive and must not be signed in any fashion. All money amounts must be right- justified and zero filled. Do not truncate any money amount fields. If the amount is more than the allowed space, prepare a second "Q" record to show the difference.
SEC. 8. ADDITIONAL INFORMATION
Requests for additional copies of this Revenue Procedure, or requests for additional information on tape reporting, should be addressed to:
Internal Revenue Service Post Office Box 245 Bensalem, Pennsylvania 19020 Attention: Magnetic Media Coordinator
PART "B"--MAGNETIC TAPE SPECIFICATIONS
SECTION 1. GENERAL
01 These specifications prescribe the required format and content of the records to be included in the file, but not the methods or equipment to be used in their preparation. Usually, the Service will be able to process, without translation, any compatible tape file. To be compatible, a tape file must meet all of the following:
Type of Tape--1/2 inch Mylar base, oxide coated
Interrecord Gap--
0.75 inch for 556 or 800 bpi density 7-trac,
0.6 inch for 800 bpi density 9-track,
0.6 inch for 1600 bpi density,
0.3 inch for 6250 bpi density 9-track
(a) When the Recording Mode is EBCDIC (Extended Binary Coded Decimal Interchange Code):
(1) Parity--Odd Parity
(2) Recording Density--800, 1600, or 6250 Densities
(3) 9 Channel
(b) When the Recording Mode is ASCII (American Standard Coded Information Interchange):
(1) Parity--Odd Parity
(2) Recording Density--800, 1600, or 6250 Densities
(3) 9 Channel
(c) When the Recording Mode is BCD (Binary Coded Decimal):
(1) Parity--Odd or Even Parity
(2) Recording Density--556 or 800 Densities
(3) 7 Channel or 9 Channel
02 An acceptable tape file for each withholding agent will contain data records as follows:
(a) Single reel:
(1) a Transmitter "T" record; then
(2) one or more Recipient "Q" records followed by a specific Withholding Agent "W" record; then
(3) additional "Q" and "W" record sequences for other withholding agents as needed; then
(4) an End of Transmission "Y" record.
(b) Multiple Reels:
(1) a Transmitter "T" record at the beginning of each reel; then
(2) sequences of Recipient "Q" records followed with corresponding Withholding Agent "W" records; then
(3) an End of Reel "Z" record on every reel except the last; and
(4) an End of Transmission "Y" record ending the last reel.
(c) Notes:
(1) a sequence of Recipient "Q" records may be continued from one reel to the next if they apply to the same withholding agent, without the necessity of repeating the "W" record. The sequence might be, for example, QQQQZ (end of one reel); TQQQQW (beginning of next reel).
(2) the End of Reel "Z" record is identical to the Withholding Agent "W" record, except that it indicates the end of the reel, but not necessarily the end of a withholding agent's "Q" records. For example, when end of reel will be reached before the end of an agent's "Q" records, the "Z" record will be used in lieu of a "W" record. The next tape reel will begin with a "T" record, followed by the remaining "Q" records for the withholding agent.
03 Affix an external label to each tape with the following information:
(1) Name of Transmitter.
(2) Number of "Q" records on that reel.
(3) Density (556, 800, 1600 CPI, etc.).
(4) Channel (7 or 9).
(5) Recording Mode (EBCDIC, ASCII, etc.).
(6) Parity (odd or even).
(7) Manufacturer and model of mainframe and tape drives.
(8) Sequence number of reel, and total reels in the file (i.e. 1 of 3, 2 of 4, etc.).
04 All records, including Header and Trailer labels (if used) must be transmitted at the same density.
_____________________________________________________________________
02 Definitions:
ELEMENT DESCRIPTION
b Denotes a blank position. For compatibility with
Service equipment, if using BCD recording mode, use
BCD bit configuration 010000 ("A" bit only) in even
parity, 001101 ("841" bits) in odd parity.
Special Any character that is not a numeral, a letter, or a
Character blank.
Withholding Person or organization, including withholding agent,
Agent responsible for paying income and withholding taxes.
The withholding agent is responsible for the
completeness, accuracy, and timely submission of
magnetic tape files.
Payer Person or organization who is the originator of income
and enters into a contractual agreement with the
withholding agent for the purpose of disbursing income
for the payer. For example, Corporation X is about to
declare a dividend. Corporation X contracts Bank Y to
calculate and distribute such dividends to recipients,
and be responsible for withholding. Corporation X is
considered the Payer and Bank Y is considered the
Withholding Agent.
Transmitter Person or organization preparing and filing tape
files. May be the withholding agent or his agent.
Recipient Person(s) or organization(s) receiving payments from a
withholding agent.
Record A group of related fields of information treated as a
unit.
Blocked Two or more records grouped together between
Records interrecord gaps.
File For the purpose of this Procedure, a file consists of
all tape records submitted by a transmitter.
Reel A spool of magnetic tape.
EIN Employer Identification Number that has been assigned
by the Service to the particular entity.
SSN Social Security Number.
_____________________________________________________________________
SEC. 2. CONVENTIONS AND DEFINITIONS
01 Header Labels, Trailers Labels, Record Marks and Tape Marks are all optional. They may be used as required by the transmitter's equipment or programming. If used they must conform to the following standards:
(a) Header Labels must begin VOL1, VOL2, HDR1, HDR2, or 1HDR. If used, they must be the first record(s) on the reel immediately before the Transmitter "T" record. Header labels may not exceed 80 characters in length.
(b) Trailer Lables must begin 1EOR, 1EOF, EOF1, or EOR1. If used, they must be the last record(s) on the reel, after the "Z" or "Y" record and Tape Mark (if a Tape Mark is used). Trailer Labels may not exceed 80 characters in length.
(c) Record Marks, if used, may only follow data portion of a record or block. All records are of uniform length, and record marks are not needed.
(d) Tape Marks, if used, must be IBM 001111 (Octal 17) in even parity. They always appear immediately after the "Z" or "Y" record. If Header and Trailers Labels are also used, the tape mark must follow the Header Label and must precede and/or follow the Trailer Label(s).
SEC. 3. RECORD LENGTH AND BLOCKING
01 Tape records prescribed in the specifications may be blocked or unblocked, subject to the following:
(a) All data records are of a fixed length (450 positions).
(b) All records may be blocked, except Header and Trailer Labels.
(c) A block may not exceed 15,000 characters, although shorter blocks may be written as desired. If records are being blocked, but sufficient records are not available to fill a complete block, the block may either be "padded" with 9's to fill all unused positions or truncated after the last data record ("short block"). Do not pad the block with blanks, or create blank records (for example, Q followed by 449 blanks, etc.).
(d) Two forms of blocking are acceptable:
(1) Only "Q" Records are acceptable:
(2) All records, except Header and Trailer Labels, if used, are blocked. In this case, a "T" Record may only be the first record in the first block on the reel (first reel only); a "W" Record must follow all associated "Q" Records; and, "Y" or "Z" Records may only be the last record in the last block on the reel (only block padding (all 9's) could follow).
02 The first position of each record indicates the record type:
Transmitter T
Recipient Q
Withholding Agent W
End of Reel Z
End of Transmission Y
03 The minimum file transmitted must consist of a Transmitter "T" record, a Recipient "Q" Record, a Withholding Agent "W" Record, and an End of Transmission "Y" Record.
SEC. 4. THE TRANSMITTER "T" RECORD
This record identifies the entity who prepares and transmits the magnetic tape file. The Transmitter and one of the withholding agents may be the same, but they need not be. The Transmitter "T" Record must be the first data record on a reel (preceded only by header labels, if any), and must appear on each reel in the file sent by the Transmitter. On multiple reel files the reel number must be incremented by 1 (one) for each tape reel after the first reel. Each "T" Record has a fixed length of 450 positions. The elements of data prescribed for each "T" Record are as follows:
_____________________________________________________________________
ELEMENT POSITIONS TITLE DESCRIPTION
1 1 Record Type Enter letter "T"
2 2 & 3 Tax Year Enter the last two digits of the
year for which income and
withholding is being reported. All
recipient "Q" and transmitter "T"
Records on the file for every
withholding agent MUST report
payments for this year, and this
year ONLY. Transmit separate Forms
1042 and tape files for different
tax years.
3 4 & 5 Reel Number The two-digit serial number
assigned by the Transmitter to
this reel, starting with 01. If
Header Labels are used, this
should be the same as the Reel
Sequence Number.
4 6-14 EIN Enter the Employer Identification
Number of the TRANSMITTER. Omit
hyphen.
5 15-54 Transmitter Enter name of submitter of file;
Name left justify and blank fill.
Abbreviate if necessary to fit 40-
character limit. Omit punctuation
marks except hyphens and
ampersands.
6 55-94 Street Enter Street Address, PO Box, or
Address other location of Transmitter.
Left justify and blank fill.
Abbreviate as needed to fit 40-
character limit.
7 95-114 City Enter City, Town, APO/FPO, etc. of
Transmitter. Left justify and
blank fill. Abbreviate to fit 20-
character limit.
8 115 & 116 State Code Enter two-letter PO Code as shown
in the list below ONLY. Do not
spell out any state name.
State Codes
STATE CODE
Alabama AL
Alaska AK
Arizona AZ
Arkansas AR
California CA
Colorado CO
Connecticut CT
Delaware DE
District of Columbia DC
Florida FL
Georgia GA
Hawaii HI
Idaho ID
Illinois IL
Indiana IN
Iowa IA
Kansas KS
Kentucky KY
Louisiana LA
Maine ME
Maryland MD
Massachusetts MA
Michigan MI
Minnesota MN
Mississippi MS
Missouri MO
Montana MT
Nebraska NE
Nevada NV
New Hampshire NH
New Jersey NJ
New Mexico NM
New York NY
North Carolina NC
North Dakota ND
Ohio OH
Oklahoma OK
Oregon OR
Pennsylvania PA
Rhode Island RI
South Carolina SC
South Dakota SD
Tennessee TN
Texas TX
Utah UT
Vermont VT
Virginia VA
Washington WA
West Virginia WV
Wisconsin WI
Wyoming WY
American Samoa AS
Canada CD
Guam GU
Puerto Rico PR
Virgin Islands VI
Notes:
(1) For other Foreign countries use XX
(2) APO & FPO addresses MUST show a city, state, and Zip. Do NOT
use "XX" for APO & FPO; the four permissible State codes are "NY",
"CA", "WA", and "FL".
ELEMENTS POSITIONS TITLE DESCRIPTION
9 117-125 ZIP Code Enter the ZIP Code of the
Transmitter for all U.S., U.S.
Territory or possession. APO/FPO
addresses. For Transmitters using
a 5 digit code, enter the zip code
in the left most 5 positions and
zero fill the remaining 4
positions. For Transmitters
outside the U.S. enter nine zeros
only. DO NOT blank fill. Blank
fill the rest of the "T" Record.
10 126-450 Blanks Blank fill the rest of the "T"
Record.
SEC. 5. RECIPIENT "Q" RECORD
This Record contains complete name and address data for both
Withholding Agent and Recipient of Income, together with all the
particulars of the income paid and tax withheld. Complete
Withholding agent data is required because each Recipient "Q" Record
is treated as if it were a separate Form 1042S, and is processed
independently of other records. Since the "Q" Record is restricted to
one type of income only, it may be necessary to write more than one
"Q" Record (up to 23) for any given individual income recipient, who
may have received income of more than one type. All recipient "Q"
Records for a particular Withholding Agent must be written before the
corresponding Withholding Agent "W" Record, and before "Q" Records
for another Withholding Agency may begin. Any order of "Q" Records
within those belonging to a given Withholding Agent may be used (for
example, they may be sorted alphabetically by surname, or by country
code, or by country of the mailing address, etc.) at the convenience
of the Transmitter or Withholding Agent, since the "Q" Records are
fully independent. All "Q" Records have a fixed length of 450
positions. All Elements are required unless otherwise stated.
ELEMENT POSITIONS TITLE DESCRIPTION
1 1 Record Type Enter Q only.
2 2-10 Agent EIN Enter the 9-digit Employer
Identification Number of the
Withholding Agent. Omit the
hyphen.
3 11-45 Agent Name Enter the name of the Withholding
Agent up to the limit of 35
characters. Abbreviate as needed,
omitting punctuation. Left justify
and blank fill.
4 46-80 Agent Address Enter Street address, PO Box, or
other location of the Agent to a
limit of 35 characters. Abbreviate
as needed, omitting punctuation.
Left justify and blank fill.
5 81-100 City Enter the city or town (or other
locality name) up to the limit of
20 characters. Left justify and
blank fill.
6 101 & 102 State Code Enter the two-character alphabetic
code in the list in Sec. 4.,
above. DO NOT use CD (Canada), MX
(Mexico), or XX (Other foreign
country). If the state is not a
U.S. state, blank fill this field
and use the Country Code field
(Element 11) to identify the
foreign address. Do not spell out
any state name.
7 103-111 Zip Code Enter 9 numeric characters for all
U.S. Addresses (including
territories, possessions, and
APO/FPO). If a 5 digit zip code is
used, enter the zip code in the
leftmost 5 positions and zero fill
the remaining 4 positions. Zero
fill for addresses outside the
U.S.
8 112 Account Type Enter "1" for U.S. business or
Code organization; Element 9 must have
an EIN.
Enter "2" for U.S. citizen or
resident alien; Element 9 must
have SSN.
Enter "3" for nonresident alien
persons, businesses, or
organizations. Element 9 should
contain an EIN or SSN if one is
available.
Enter "4" if "1" or "2" applies,
but an SSN or EIN is not available
for a legitimate reason; for
example, a number has been applied
for but not received.
9 113-121 TIN Enter the recipient's U.S.
identification number; if Element
8 has a "1" you must enter an EIN;
if Element 8 has a "3", enter an
EIN or SSN if available--otherwise
enter blanks; if Element 8 has a
"4" you must enter blanks.
10 122-136 Agent's ID Enter the account number assigned
Number by the Withholding agent for this
recipient up to a maximum of 15
positions. This number is used to
facilitate identification of the
specific record if there is any
correspondence. Left justify and
blank fill. This Element will be
all blank if account numbers are
not assigned. This field may
contain numeric or alphabetic
characters, blanks, or hyphens.
11 137 & 138 Country Code Enter two alphabetic characters
from the list below which
represents the official country
for which Tax Treaty Benefits are
based. This may or may not be the
same as the country given in
Element 20, below. Entry of a true
country code is mandatory. "OC"
(country unknown or not
identified) is to be used with
great reluctance. THE TAPE FILE
WILL BE RETURNED FOR CORRECTION AT
THE DISCRETION OF THE SERVICE
CENTER DIRECTOR IF A SUBSTANTIAL
NUMBER OF "Q" RECORDS SHOW COUNTRY
CODE "OC". WHENEVER COUNTRY CODE
"OC" IS USED, THE RATE OF TAX
WITHHELD MUST EQUAL 30%.
_____________________________________________________________________
Country Code Country Code
Afars & Issas
(now Djibouti) DJ Afghanistan AF
Albania AL Algeria AG
American Samoa AQ Andorra AN
Angola AO Anguilla AV
Antarctica AY Antigua & Barbuda AC
Argentina AR Ashmore & Cartier Is. AT
Australia AS Austria AU
Azores PO Bahamas, The BF
Bahrain BA Bangladesh BG
Barbados BB Bassas da India BS
Belgium BE Belize (formerly
British Honduras) BH
Benin (formerly Dahomey) BN Bermuda BD
Bhutan BT Bolivia BL
Botswana BC Bouvet Island BV
Brazil BR British Honduras
(now Belize) BH
British Indian Ocean
Territory IO British Virgin Islands VI
Brunei BX Bulgaria BU
Burkina (formerly
Upper Volta) UV Burma BM
Burundi BY Cambodia (formerly
Kamphuchea) CB
Cameroon CM Canada CA
Canary Islands SP Canton & Enderbury Islands
(now Kiribati) KR
Cape Verde CV Cayman Islands CJ
Central African Republic CT Ceylon (now Sri Lanka) CE
Chad CD Chile CI
China, Peoples Republic
(Mainland China) CH China (Taiwan) TW
Christmas Island KT Clipperton Island IP
Cocos (Keeling) Islands CK Colombia CO
Comoros CN Congo CF
Cook Islands CW Coral Sea Islands Terr. CR
Costa Rica CS Cuba CU
Cyprus CY Czechoslavakia CZ
Denmark DA Djibouti (formerly
Afars & Issas) DJ
Dominica DO Dominican Republic DR
Ecuador EC Egypt EG
Ellice Islands
(now Tuvalu) TV El Salvador ES
England UK Equatorial Guinea EK
Ethiopia ET Europa Island EU
Falkland Islands (also
known as Islas Malvinas) FA Faroe Islands FO
Fiji FJ Finland FI
France FR French Guinea FG
French Polynesia FP French Southern &
Antarctic Lands FS
Gabon GB Gambia, The GA
Gaza Strip GZ German Democratic Republic
(East Germany) GC
Germany, Federal Republic
of (West Germany) GE Ghana GH
Gibraltar GI Gilbert Islands (Kiribati) KR
Glorioso Islands GO Greece GR
Greenland GL Grenada GJ
Grenadine Islands
(& St. Vincent) VC Guadeloupe GP
Guam GQ Guatemala GT
Guernsey GK Guinea GV
Guinea-Bissau PU Guyana GY
Haiti HA Heard Island & McDonald
Islands HM
Holland (Netherlands) NL Honduras HO
Hong Kong HK Hungary HU
Iceland IC India IN
Indonesia ID Iran (formerly Persia) IR
Iraq IZ Iraq-Saudi Arabia
Neutral Zone IY
Ireland EI Isle of Man IM
Israel IS Italy IT
Ivory Coast IV Jamaica JM
Jan Mayen JN Japan JA
Jersey JE Johnston Atoll JQ
Jordan JO Juan de Nova Island JU
Kampuchea (now Cambodia) CB Kenya KE
Kingman Reef KQ Kiribati (Canton & Enderbury
& Gilbert Is.) KR
Korea, Democratic Peoples
Republic of (North
Korea) KN Korea, Republic of
(South Korea) KS
Kuwait KU Laos LA
Lebanon LE Lesotho LT
Liberia LI Libya LY
Liechtenstein LS Luxembourg LU
Macau MC Madagascar MA
Malawi MI Malaysia MY
Maldives MV Mali ML
Malta MT Martinique MB
Mauritania MR Mauritius MP
Mayotte MF Mexico MX
Midway Islands MQ Monaco MN
Mongolia MG Montserrat MH
Morocco MO Mozambique MZ
Namibia (SW Africa) WA Nauru NR
Navassa Island BQ Nepal NP
Netherlands (Holland) NL Netherlands Antilles NA
New Caledonia NC New Hebrides (Vanuatu) NH
New Zealand NZ Nicaragua NU
Niger NG Nigeria NI
Niue NE Norfolk Island NF
Northern Ireland UK Northern Mariana Islands CQ
Norway NO Oman MU
Pakistan PK Palmyra Atoll LQ
Panama (except Canal Zone) PM Papua-New Guinea PP
Paracel Islands PF Paraguay PA
Peru PE Philippines RP
Pitcairn Islands PC Poland PL
Portugal PO Portuguese Timor
(Indonesia) ID
Puerto Rico RQ Qatar QA
Reunion RE Romania RO
Rwanda RW St. Christopher-Nevis
(also called St. Kitts) SC
St. Helena SH St. Lucia ST
St. Pierre & Miquelon SB St. Vincent & the
Grenadines VC
San Marino SM Sao Tome and Principe TP
Saudi Arabia SA Scotland UK
Senegal SG Seychelles SE
Sierra Leone SL Singapore SN
Solomon Islands BP Somalia SO
South Africa SF Southern Rhodesia (now
Zimbabwe) ZI
South-West Africa (now
Namibia) WA Spain SP
Spratly Islands PG Sri Lanka (formerly Ceylon) CE
Sudan SU Suriname NS
Svalbard SV Swaziland WZ
Sweden SW Switzerland SZ
Syria SY Taiwan TW
Tanzania, United
Republic of TZ Thailand TH
Togo TO Tokelau TL
Tonga TN Trinidad & Tobago TD
Tromelin Island TE Trust Territory of the
Pacific Islands NQ
Tunisia TS Turkey TU
Turks & Caicos Islands TK Tuvalu (Ellice Islands) TV
Uganda UG Union of Soviet
Socialist Republics UR
United Arab Emirates TC United Kingdom UK
Upper Volta (now Burkina) UV Uruguay UY
Vanuatu (New Hebrides) NH Vatican City VT
Venezuela VE Vietnam VM
Virgin Islands (US) VQ Wake Island WQ
Wales UK Wallis & Futuna WF
West Bank WE Western Sahara WI
Western Samoa WS Yemen (South) (Aden) YS
Yemen (North) (Sanaa) YE Yugoslavia YO
Zaire CG Zambia ZA
Zimbabwe ZI (Other Countries) OC
ELEMENT POSITIONS TITLE DESCRIPTION
12 139-173 1st Name Line Enter full name of recipient, or if
there are more than one, the name
of the first recipient only. Use an
asterisk to indicate the surname as
shown in Section 7.02 above. Valid
characters are alphabetic, numeric,
ampersand (&), hyphen (-), slash
(/), asterisk (*), or blank. A name
MUST be entered here; if the
recipient is a numbered bank
account, and the true recipient is
not known, the account number must
be supplied here. THE TAPE FILE
WILL BE RETURNED FOR CORRECTION AT
THE DISCRETION OF THE SERVICE
CENTER DIRECTOR IF A SUBSTANTIAL
NUMBER OF "Q" RECORDS SHOW A BLANK
1ST NAME LINE OR AN INVALID 1ST
NAME LINE. Left justify and blank
fill.
13 174-208 2nd Name Line Enter supplementary information of
the recipient on this line. Use
this line for additional names
(e.g. of partners or joint owners),
for trade names, stage names,
aliases. Use this line also for
"care of", "via", or "through"
information. Valid characters are
the same as in the 1st name line,
except for the asterisk (*) which
is invalid here, and the percent
(%) which is valid in the first
position only (as shorthand for "in
care of"). If no additional name
data is to be provided, blanks are
to be inserted. Left justify and
blank fill.
14 209-243 3rd Name Line Enter further name data if
applicable; otherwise blank fill.
Specifications are precisely as for
the 2nd Name Line. See Street
Address, below.
NOTE: 105 total characters are available for name information. The
Service encourages full identification of nonresident alien persons
and organizations because data is furnished to their governments in
accordance with tax treaties and exchange of information agreements.
15 244-278 Street Enter the recipient's full street
Address address. Valid characters are the
same as in the 2nd Name Line except
that the percent is not valid. If
the street, building, military
installation or other name is too
long for the 35-character allotment
of this element, use the 3rd Name
Line as the 1st Street Address
Line, and continue on this line as
a 2nd Street Address line. This
line may be all blank, but only for
legitimate reasons; for example, if
the recipient is from a small town
or inlet or other place where a
town or island name is sufficient
to enable mail to be received. Left
justify and blank fill.
16 279-303 City Enter the name of City, Town,
Village, Municipality or rural
place of residence of the
recipient. Valid characters are as
in street address. Left justify,
and blank fill. For U.S. military
installations enter one of the
following:
APO New York FPO New York
APO San Francisco FPO San Francisco
APO Seattle FPO Seattle
APO Miami FPO Miami
The name of the installation or
ship may not be entered here, but
should be in the Street Address
Line.
17 304-318 Province Enter here the name of the
Name Province, Foreign State (but NOT
the U.S. State), County, Shire,
District, Region, or other
political subdivision. For many
countries the province (or other
political subunit) is an important
part of the postal address. For
Canada the Province MUST be given
here; a Canadian province must be
expressed as a two-character code
from the Canadian Province Code
List below. No other abbreviations
may be used, nor may the Canadian
Province name be written out in
full. If a Province (or other
political subunit) is not
available, blank fill this element.
Valid characters are as in the
street address. Left justify, blank
fill.
_____________________________________________________________________
Canadian Provinces and Codes
PROVINCE PROVINCE CODE
Alberta AB
British Columbia BC
Labrador LB
Manitoba MB
New Brunswick NB
Newfoundland NF
Nova Scotia NS
Northwest Territories NT
Ontario ON
Prince Edward Island PE
Quebec PQ
Saskatchewan SK
Yukon Territories YK
_____________________________________________________________________
ELEMENT POSITIONS TITLE DESCRIPTION
18 319-327 Postal Code Enter the Foreign or U.S. Postal
Code (ZIP Code), if available.
Withholding Agents should make an
effort to obtain postal codes,
especially for the following
countries: Belgium, Canada, France,
Germany, Italy, Spain, Switzerland,
Netherlands, and United Kingdom.
For U.S. addresses (including all
possessions) a ZIP Code must be
given. All postal codes should be
left justified and blank filled.
Alphabetic, numeric, and blank
characters only are allowed here.
Do not omit any blanks that may
appear in the ZIP Code.
19 328 & 329 State Code For all U.S. addresses enter the
correct two-letter code as
prescribed for Post Office use. The
state code MUST be present for all
U.S. addresses, including
territories and APO/FPO. Leave
blank for non-U.S. addresses. See
list in Section 4, above.
20 330-349 Country Name Enter the unabbreviated name of the
recipient's country. Omit political
titles such as "People's Republic
Of", "Kingdom of", etc. Use the
English Language name, as opposed
to the native language name. For
example, use "Finland" and not
"Suomi". Leave this field blank for
all U.S. addresses, including
territories, and APO/FPO. Left
justify and blank fill.
21 350 & 351 Income Code Enter the two digit income code
from the following list. Valid
range is 01-23. If a given
recipient receives more than one
kind of income, additional "Q"
records must be prepared, since
only one income code may be shown
per "Q" record.
_____________________________________________________________________
Income Code List
01 Interest paid by U.S. obligators--general
02 Interest on real property mortgages
03 Interest paid to a controlling foreign corporation
04 Interest paid by foreign corporations (U.S. Agent)
05 Interest in tax-free government bond
06 Dividends paid by U.S. corporation general
07 Dividends paid by U.S. subsidiary to foreign parent corporation
08 Dividends paid by foreign corporations
09 Capital gains
10 Industrial royalties
11 Motion Picture or television copyright royalties
12 Other copyright royalties
13 Real Property income and natural resources royalties
14 Pensions or annuities
15 Scholarship or fellowship compensations
16 Compensations for independent personal services
17 Compensations for dependent personal services
18 Compensations for teaching
19 Compensations during training
20 Other income (non-personal service compensations)
21 Social Security benefits
22 Railroad Retirement (Tier 1) benefits
23 Railroad Retirement (Tier 2) benefits
_____________________________________________________________________
ELEMENT POSITIONS TITLE DESCRIPTION
22 352 & 353 Type of Enter two digit code from the list
Recipient below. Valid range is 01-10.
Code
CODE TYPE OF RECIPIENT
01 Individual
02 Corporation
03 Partnership
04 Fiduciary
05 Nominee
06 Government or International
Organization
07 "Tax Exempt" Organization
08 Private Foundation
09 Other
10 Type of Recipient unknown
23 354-364 Gross Income Enter dollars and cents up to 11
Paid characters. Do NOT enter decimal
point. Right justify and zero fill.
An income amount other than zero
must be shown. For whole dollar
amounts, the cents MUST be shown by
zeroes. For example, $1500 should
be shown as 00000150000 where the
leftmost 5 zeros are "filler" and
the rightmost 2 zeros represent
cents.
24 365 Exemption Enter the one-digit exemption code
Code from the list below. If the rate of
tax shown is 00%, enter the code of
1-4 that applies. If the rate of
tax shown is other than 00%, enter
a zero in this field.
CODE DESCRIPTION
Zero No exemption claimed, rate of
tax ia above 00%
1 Income is effectively
connected with a U.S. trade
or business (Form 4224 must
be attached to Form 1042)
2 Income is exempt from tax by
the Internal Revenue Code
3 Income is non-U.S. sourced
4 No withholding per treaty for
this type of income.
25 366 Correction Enter the one position code to
Indicator identify if this return is the
original issuance, an amendment to
a previously submitted return, or a
total replacement of a previously
submitted return.
CODE DESCRIPTION
Zero Original return
R Replacement return
A Amended return
26 367 & 368 Rate of Tax Enter two-digit tax rate. Do not
use percent signs or decimal
points. A valid rate must be shown.
For fractional rates, drop the
fraction (e.g. for 12 1/2 use 12,
and for 27 1/2 use 27). Valid tax
rates are:
00 02 04
05 10 12
14 15 20
25 27 30
Note that when an exemption code
of 104 is used or element 24, the
Rate of Tax MUST be zero.
27 369-379 Amount of Tax Enter in dollars and cents the
Withheld amount of tax withheld, if any. An
amount must be shown if the RAte
of Tax is greater than 00, or if
income is not otherwise exempt
from withholding. Specifications
are the same as for Element 23
(Gross Income Paid). Right justify
and zero fill.
28 380-414 Payer's Name Enter the name of the Payer of
Income, if different from the
Withholding Agent, up to the limit
of 35 characters. Abbreviate as
needed, omitting punctuation. Left
justify and blank fill. If
withholding Agent and payer are
one and the same, blank fill Payer
Name.
29 415-423 Payer's EIN Enter the 9 digit Payer's Employer
Identification Number if element
28, Payer Name, is significant.
Blank fill if unknown or Payer Name
is blank.
30 424-450 (Reserved) Blank Fill.
NOTE: All money fields must be mathematically verified by the
transmitter before being sent to the Service.
_____________________________________________________________________
SEC. 6. WITHHOLDING AGENT "W" RECORD
Enter a "W" record after the last "Q" record submitted for a particular Withholding Agent. The "W" record serves as a summary of the preceding "Q" record data, and enables the Service to double-check the correctness of information received. Several "W" records for different withholding agents may appear on the same Transmitter's file. Also, the "W" record may refer to "Q" records on more than one reel, provided all of the preceding "Q" records are for the same withholding agent. A "W" record may only be followed by new Recipient "Q" records for the next Withholding Agent, if any, or by an End of Transmission "Y" record. The "W" record cannot be followed by a tape mark. Each "W" record has a fixed length of 450 positions. All elements of data in the "W" record are required as follows:
_____________________________________________________________________
ELEMENT POSITIONS TITLE DESCRIPTION
1 1 Record Type Enter the letter "W".
2 2 & 3 Payment Year Enter the last two digits of the
calendar year for which income and
withholding are being reported. All
recipient "Q" records must report
payments for this year ONLY.
Different tax years may not appear
on the same file.
3 4-12 EIN Enter the 9 digits of the Employer
Identification Number of the
WITHHOLDING AGENT. Omit the hyphen.
4 13-47 Agent Name Enter the name of the Withholding
Agent, up to the limit of 35
characters. Abbreviate as needed,
omitting punctuation. Left justify
and blank fill.
5 48-82 Agent Address Enter the street address, P.O. Box,
or other location of the
withholding agent to a limit of 35
characters. Abbreviate as needed,
omitting punctuation. Left justify
and blank fill.
6 83-102 City Enter the city, town, or other
locality name up to the limit of 20
characters. Left justify and blank
fill.
7 103-104 State Enter the two-character alphabetic
code from the list in Section 4
above.
8 105-113 Zip Code Enter 9 numeric characters for all
U.S. addresses (including
territories, possessions, and
APO/FPO). For 5 digit zip codes,
left justify and zero fill. Zero
fill for addresses outside the U.S.
9 114-121 "Q" Record Enter the total number of "Q"
Count records for this withholding agent;
that is, the total count of "Q"
records following the last "W"
record, or if this is the first "W"
record on the file, the total
number of "Q" records since the "T"
record. The Presence of a "Z" or
"T" record does not interrupt the
count, which may therefore include
consecutive "Q" records on more
than one tape reel.
10 122-134 Total Gross Enter the sum of all gross amounts
Amount Paid paid in all "Q" records, counted in
Element 9 above. Zero fill and
right justify. Do not "round off"
this total, since it is used as
"hash total" check on the "Q"
records.
11 135-147 Total Tax Enter the sum of all tax withheld
Withheld amounts from all "Q" records
counted in Element 9 above. Right
justify, zero fill.
12 148-450 Blank fill Blank fill up to the total of 450
characters.
_____________________________________________________________________
SEC. 7. END OF REEL "Z" RECORD
End every reel of a file, except the last reel, with an End of Reel "Z" record. A "Z" record may only appear as the last data record of a reel. If records are blocked, the "Z" record must be the last data record in the last block on the reel, but padding records (all 9's) may follow to fill the block. The "Z" record is identical in format to the "W" record. The "Z" record will replace the "W" record in every case where the "W" record would ordinarily fall last on the reel; that is, when all "Q" records for a particular withholding agent have been completed, and reel-end is reached. The "Z" record may only be preceded immediately by a "Q" record, and may only be followed by Trailer labels, if any. Elements of the "Z" record differ from the same elements of the "W" record as follows: (1) Element 1 Record type, will be "Z" instead of "W"; (2) Element 9, total Number of "Q" records, will include a count of all "Q" records since the last preceding "W" record or "T" record; (3) Elements 10 and 11 will likewise total corresponding amounts on "Q" records since the preceding "W" or "T" record.
SEC. 8. END OF TRANSMISSION "Y" RECORD
End the last reel on a file with an End of Transmission "Y" record. The "Y" record may only be preceded by a "W" record. It may only be followed by a tape mark or tape mark and a Trailer Label, if used. The "Y" record will count the total number of withholding agents in the transmission, and the total number of tape reels in the file. The "Y" record has a fixed length of 450 positions, and all elements listed are required.
_____________________________________________________________________
ELEMENT POSITIONS TITLE DESCRIPTION
1 1 Record Type Enter letter "Y"
2 2-4 Withholding Enter the total number of
Agent Count withholding agents on this file.
This count will be the same as the
total number of "W" records. Right
justify and zero fill.
3 5-7 Reel Count Enter the total number of reels for
this transmission. Right justify
and zero fill.
4 8-450 Blank fill Blank fill up to the end of the
record.
_____________________________________________________________________
SEC. 9. EFFECT ON OTHER DOCUMENTS
This Revenue Procedure supersedes Rev. Proc. 85-12, 1985-1 C.B. 500.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation85 TNT 223-35
