3.22.111. Chapter Three and Chapter Four Withholding Database

(1) Tax Year - Identifies the tax period for which the withholding agent is submitting the Forms 1042-T.

• This is a four-position field that must be present.

• Only numeric characters are valid.

• May be current or prior year.

• The Tax Examiner MUST check the Tax Year field on all paper records for transcription and editing errors. Ensure that the correct tax year appears on the screen.

  Caution: f the tax year is missing and there is no indication of the tax year, the current tax year should be used. DO NOT override (OR) this field if Tax Year field is blank.

• Code and Edit will edit future tax years to the current tax year.

Note: This field may or may not appear in red.

(1) Received Date - Identifies the received date of the Form 1042-T.

1. This is an eight-position field that must be present.

2. Only numeric characters (0-9) are valid.

3. The date must be in MMDDYYYY format.

   Caution: DO NOT override (OR) this field if Received Date is in the wrong format (i.e., YYYYMMDD), or if the field is blank.

4. This field can only be corrected on paper records.

5. Refer the record to your SME/lead/manager if you detect an error in the Received Date field on an electronic record. If an attempt is made to correct this field on an electronic record, you will receive an error message.

6. The date should be stamped/edited below the signature area on paper Form(s) 1042-T. If no date is present, use the instructions below to determine the correct date to enter in the Received Date field.

(2) If the received date is not stamped or edited on the Form 1042-T and can't be located through the research discussed above, determine the date in the following order of priority:

1. The earliest legible postmark date on the envelope,

2. The Revenue Officer's date of signature,

3. The taxpayer's date of signature,

4. The DLN Julian Date minus 10 days,

5. The current date minus 10 days.

Note: If mailed USPS "Certified", give to a designated person with internet access to find the "Acceptance" date on https://www.usps.com/. If a designated Private Delivery Service, see IRM 3.10.72.6.2.4(3), Determining Postmark Date.

(1) Identifies the Chapter 3 or Chapter 4 status of the withholding agent.

(2) This is a two-position, numeric field. See Exhibit 3.22.111-1 for Chapter 3 Status Codes and Exhibit 3.22.111-2 for Chapter 4 Status Codes for illegible characters only.

(1) Employer Identification Number (EIN) - Identifies the Employer Identification Number (EIN) of the Withholding Agent, Qualified Intermediary or Non-Qualified Intermediary.

• This is a nine-position field that must be present.

• Only numeric characters are valid. However, all zeros (0s) or all nines (9s) are invalid characters.

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(2) Refer any Form 1042-T record marked as NC, to your SME, lead, and/or manager. The non-correctable Form 1042-T record MUST be elevated to the HQ Analyst. Mark the corresponding Form 1042-S records as non-correctable if they fall out for error. The Form 1042-T and the corresponding Form 1042-S documents will be held in ERS until the Analyst provides the correct information.

(1) Withholding Agent EIN Indicator - Identifies the type of tax identification number for the Withholding Agent on Form 1042-T prior to tax year 2014.

• This is a one-position field that may be present on electronic files.

• The valid entries for this field are:

Value	Definition
0 (blank)	EIN Indicator (Paper Form 1042-T only)
1	QI EIN Indicator
2	NQI EIN Indicator

Note: This field is currently not correctable. It is no longer on Form 1042-T and is not visible in the CTW application.

Reminder: For Paper Form 1042-T only, transcribers will always enter a zero in this field in ISRP. If a transcription error occurs and the return falls out, follow the instructions below.

(2) The field is currently not correctable because it is not visible in the CTW application, and is no longer on the actual Form 1042-T. It does, however, exist in the CTW database.

(3) For Paper Form 1042-T only - if the record falls out because the indicator is QI EIN and the EIN is not within the QI EIN range and/or the address is domestic, send to the lead/manager. The manager will forward to the HQ analyst for review. The HQ analyst will advise on what steps to take to correct the record.

(1) Withholding Agent Name Line - Identifies Withholding Agent's name as established when filing for the EIN or QI-EIN. This field consists of three-line entries.

• These fields are 40-position fields.

• Name Line 1 - Required.

• Name Line 2/3 - Used to identify other name line data. (e.g., In Care of, In Trust for (ITF), Division, Department, Office, etc.)

(2) Valid characters for all name and address fields are:

• Alpha (A-Z)

• Numeric (0-9)

• Blank

• Ampersand (&)

• Hyphen (-)

• Slash (/)

• Period (.)

• Comma (,)

• Apostrophe (')

• Pound (#)

• Percent (%)

  Note: The percent (%) is used to indicate "in care of" and is valid in the first position only.

(1) Withholding Agent Address Line - Identifies the Withholding Agent address of record. This field consists of entries which identify street, city, state, province code (if applicable), country code (if applicable), and zip or foreign postal code. See IRM 3.22.111.10.4.6 for a list of valid characters. The following defines the various address entries:

• Street Line 1 - is a required field and identifies the street address of record for the Withholding Agent. This field consists of 40 positions. The address must consist of number, street and apartment or suite number (P.O. Box if mail is not delivered to street address). Abbreviate as needed, See Exhibit 3.21.111–7, Job Aid 2543–702 and Document 7475 for address abbreviations.

If

Then

Missing, incomplete, or illegible,

Research document or initiate research via IDRS using the Withholding Agent's EIN. If found, enter the corrected street information and continue processing. Note: Whenever you perform IDRS research, ensure you access the correct account. If the IDRS research shows information which is not consistent with the CTW correction screen, don't correct the fields. Mark the listing as NC and clear the screen. If not found, mark listing as non-correctable (NC) and clear the screen.

• Street Line 2 - is used to provide other information pertaining to the Withholding Agent's Street address.

(2) When identifying City, State, Province Code, Country Code, and Zip/Foreign postal codes you must take the following into consideration before performing any correction procedures:

• City - is a required field and identifies the city of record for the Withholding Agent. This is a 40-position field. Enter city or town (or another locality name).

  Note: If an APO (Army Post Office)/FPO (Fleet Post Office)/DPO (Diplomatic Post Office) address is present, you must ensure APO/FPO/DPO, the applicable state abbreviation, and zip code are in the City/State/ZIP field. An example of the format for APO/FPO/DPO addresses can be found in paragraph (3) of IRM 3.22.111.11.3.25. (See Exhibit 3.21.111–8, State Abbreviations and Zip Code Ranges including APO/FPO/DPO Zones, Job Aid 2543–702 and Document 7475).

If

Then

Missing, incomplete, or illegible,

Research document or initiate research via IDRS using the Withholding Agent's EIN. If found, enter the correct city information and continue processing. Note: Whenever you perform IDRS research, ensure you access the correct account. If the IDRS research shows information which is not consistent with the CTW correction screen, don't correct the fields. Mark the listing as NC and clear the screen. If not found, mark listing as non-correctable (NC) and clear the screen.

• State - is a required field if the Withholding Agent is a U.S. Withholding Agent and is located within the United States, one of its territories, or an APO/FPO/DPO address. This is a two-position field. See Exhibit 3.21.111–8, State Abbreviations and Zip Code Ranges including APO/FPO/DPO Zones, Job Aid 2543–702 and Document 7475, for the correct state abbreviation.

  Note: If the Withholding Agent is not located in a U.S. state, territory, or APO/FPO/DPO, this field must be blank. DO NOT enter foreign country code in this field.

If

Then

Missing, incomplete, or illegible,

Research document or initiate research via IDRS using the Withholding Agent's EIN. If found, enter correct state information and continue processing. Note: Whenever you perform IDRS research, ensure you access the correct account. If the IDRS research shows information which is not consistent with the CTW correction screen, don't correct the fields. Mark the listing as NC and clear the screen. If not found, mark listing as non-correctable (NC) and clear the screen.

• Province Code - is a required field if Withholding Agent Country Code is CA (Canada). This is a two-position field. The Province Code field is only present when foreign Country Code for withholding agent is "CA (Canada)". See Exhibit 3.21.111-11 and Job Aid 2543-702, for Canadian Province Codes. The Job Aid includes Canada Postal Code definers.

If	Then
Missing, incomplete, or illegible,	Research document or initiate research via IDRS using the Withholding Agent's EIN. If found, enter the correct province information and continue processing. Note: Whenever you perform IDRS research, ensure you access the correct account. If the IDRS research shows information which is not consistent with the CTW correction screen, don't correct the fields. Mark the listing as NC and clear the screen. If not found, mark listing as non-correctable (NC) and clear the screen.
The city is blank and the country is "CA (Canada),"	Enter full province name in the city field and the correct Province Code in the Province Code field.
A province, or Province Code is entered in the city line, for a country other than Canada,	Leave the entry in the city line and don't enter a Province Code in the Province Code field.

• Country Code - This field is a two-position field. See Exhibit 3.22.111-3, Country Code Chart for Tax Purposes and Document 7475 for correcting entity/address information.

If	Then
Missing, incomplete, or illegible,	Research document or initiate research via IDRS using the Withholding Agent's EIN. If found, enter the correct country information and continue processing. Note: Whenever you perform IDRS research, ensure you access the correct account. If the IDRS research shows information which is not consistent with the CTW correction screen, don't correct the fields. Mark the listing as NC and clear the screen. If not found, continue processing.
Country name is one of the following: Hong Kong (HK) Monaco (MN) Abu Dhabi (AE) Malta (MT) Mexico (MX) Singapore (SN) Luxembourg (LU) San Marino (SM) Vatican City (VT)	Enter full country name in city field and correct Country Code in Country Code field.
Country Code is one of the following: TC VP WE XE	Change the expired code to match the current code: TC to AE VP to FR WE to IS XE to UK

• Postal/Zip Code - This field identifies the foreign postal or domestic Zip Code for the Withholding Agent. This field varies between 5-9 positions. See Job Aid 2543–702 and Document 7475 for more information on Zip Code ranges. Valid characters for this field can be Alpha (A-Z), or Numeric (0-9), and may include a hyphen (-).

  Note: If Withholding Agent address is U.S., the Zip Code must be present and must be numeric. If address is foreign, the foreign postal code may or may not be present and can be alpha and/or numeric. If foreign postal code is not present, and the country is other than Australia, it is not necessary to research for a Postal Code. If present, don't delete. Correct any obviously misplaced entries.

• A foreign postal code must be present for all Australian addresses. If the Postal Code field is blank, edit using the list below:

Australian State/Territory	Postal Code
New South Wales and Australian Capital Territory (A.C.T.)	2000 - 2999
Victoria	3000 - 3999
Queensland	4000 - 4999
South Australia	5000 - 5799
Western Australia	6000 - 6799
Tasmania	7000 - 7499
Northern Territory	0800 - 0899

• European postal systems frequently do not spell out the name of the country, instead, they use a prefix to the postal code. At times, the Withholding Agent enters their foreign postal code and city only in the city field and leaves the Country Code and foreign postal code fields blank. To assist you in determining missing Country and/or foreign postal code use the table below.

(1) Identifies whether Form 1042-T and corresponding Form 1042-S are reporting Chapter 3 or Chapter 4 withholding.

(2) This is a one-position field that must be a 3 or 4.

(3) This field is not correctable. If input incorrectly, the Form 1042-T and corresponding Form 1042-S need to be renumbered and reinput.

(4) If not edited correctly or blank, Form 1042-T and corresponding Form 1042-S need to go back to C&E to be corrected, renumbered and reinput.

(1) Return Type Indicator (RTI) - identifies the type of Form 1042-S attached/submitted with Form 1042-T. On the Form 1042-T record, this information is separated into two fields (boxes) for Line 1b. The type of returns that are indicated in the first box are either an Original or Amended record.

• No action is required for electronic records.

• Paper Form 1042-T are transcribed in ISRP and the ERS tax examiner must correct any transcription errors. Research the associated paper form to ensure entries on the screen are correct.

• The Data transcriber should press the "Enter" key, which will generate a "0" in the RTI, if the filer has placed a mark in the box on the form for Original (or if neither the Original nor Amended boxes have been checked). The ERS tax examiner must ensure "Original" appears in the first box.

• Data should enter a "1," if the filer has placed a mark in the box for "Amended." The ERS TE must ensure "AMENDED" appears in the first box.

• This field is not correctable. If input incorrectly, the Form 1042-T and corresponding Form 1042-S need to be renumbered and reinput.

(1) Pro-Rata Basis Reporting - identifies whether the Withholding Agent is reporting Pro-Rata withholding on attached Form 1042-S. If the agent is reporting Pro-Rata withholding, the second box under Line 1c will be checked.

• No action is required on electronic records.

• Use the paper form as a source document and ensure entries on the screen are correct.

• If no mark is entered in the box for Pro-Rata, on the paper Form 1042-T, Data will hit the "Enter" key, which will generate a "0" in the field. The ERS TE should ensure the second box under Line 1c indicates "Not Pro-Rata."

• If there is a mark in the box for Pro-Rata on the form, Data should enter a "1." ERS must ensure "Pro-Rata" appears in the second box, under Line 1c, on the screen.

• This field is not correctable. If input incorrectly, the Form 1042-T and corresponding Form 1042-S need to be renumbered and reinput.

(1) Number of Form 1042-S Attached - identifies the number of paper Form 1042-S submitted with Form 1042-T or the electronically filed Form 1042-S submitted by a transmitting agent at ECC-MTB.

• This is a required field and may have up to 5 positions.

If	Then
Missing or zero,	For paper records, count the number of associated Form(s) 1042-S and enter the correct number in the field. If there are no associated Form 1042-S, place a "1" in the field and refer the case to the SME, lead, or manager (feedback should be provided to Code and Edit). For electronic records, enter a "1" in the field.
Number of paper Form 1042-S is over 10	Verify the number is correct on the document. If the number doesn't match what is on the screen, override the field and insert the correct number. Note: If the amount truly is over 10, refer the case to the SME, lead, or manager for Override procedures.

(1) Withholding in Subsequent Year - identifies whether partnership withholding occurred in the subsequent year. If the agent is reporting withholding occurred in subsequent year the box next to Line 1e will be checked.

• No action is required on electronic records.

• Use the paper form as a source document and ensure entries on the screen are correct.

• If there is no mark entered in the box for withholding in subsequent year on the paper form 1042-T, Data will hit the "Enter" key, which generates a "0" in the field. The ERS TE should ensure the box under Line 1e indicates "Withholding in Subsequent Year."

• If there is a mark in the box for withholding in subsequent year on the form, Data will enter a "1." ERS must ensure "Withholding in Subsequent Year" appears in the box, under Line 1e, on the screen.

• This field is not correctable. If input incorrectly, the Form 1042-T and corresponding Form 1042-S need to be renumbered and reinput.

(1) Gross Income Paid - identifies the total of gross income from all associated Form 1042-S.

• This is a required entry and may have up to 15 numeric values.

• All entries must be positive and be in whole dollars only.

If	And	Then
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(1) Total Federal Tax Withheld - identifies the Federal Tax withheld from all associated Form 1042-S. The total amount withheld is the amount of Total Withholding Credit (TWC) on Form 1042-S. TWC equals the amount in Box 10 or the sum of Federal Tax Withheld (Box 7a) plus Tax withheld by other agents (Box 8) minus Amount repaid to recipient (Box 9).

• This is a required entry and may have up to 15 numeric values.

• Entries should be in whole dollars only.

• Only zero (0), or positive entries are valid.

(1) Final Return Indicator - identifies if the return is a final return, and is located at the bottom of Page 2 of the Form 1042-T screen.

• This is a one-position field.

• The valid entries for this field are "0" or "1."

If	Then
Final return - filer has placed a ✓ or X in the box	"1" will be present in checkbox.
Not a final return - the box has been left blank	"0" will be in the checkbox.

(1) Tax Year - Identifies the tax period for which the withholding agent is submitting the Form 1042-S.

• This is a four-position field that must be present.

• Only numeric characters are valid.

• May be current or prior year.

• The Tax Examiner MUST check the Tax Year field on all paper records for transcription and editing errors. Ensure the correct tax year appears on the screen.

  Caution: If the tax year is missing and there is no indication of the tax year, the current tax year should be used. DO NOT override (OR) this field if it is blank.

• Tax years that fall outside the current plus nine-year range will fall out to Junk.

• Code and Edit will edit future tax years to the current tax year.

Note: This field may or may not appear in red.

(1) Received Date - identifies the received date of the Form 1042-S.

• This is an eight-position field that must be present.

• Only numeric characters (0-9) are valid.

• The date must be in MMDDYYYY format.

  Caution: DO NOT override (OR) this field if Received Date is in the wrong format (i.e., YYYYMMDD), or if the field is blank.

If	Then
Missing, incomplete, or illegible,	Research document or attachments for received date.
Unable to locate on document or attachments,	Determine date using the following priority order: DLN Julian date, minus 10 days, or current date, minus 10 days.

(1) Cross Reference Document Location Number (DLN) - identifies the DLN of the Form 1042-T transmitting record associated with this Form 1042-S. This field is in the bottom left corner of paper Form 1042-S. On electronically filed records, the cross-reference DLN is computer generated.

• This is a 14-position field that must be present.

• If missing from paper filed Form 1042-S, research and enter in the bottom left corner of paper Form 1042-S.

(1) Withholding agents must assign a unique identifying number to each Form 1042-S they file.

(2) This is a 10-position numeric field where valid values are 0-9.

(3) If periods are present, research and make the necessary corrections. If unable to correct, leave the periods and continue processing.

(4) If less than 10 digits are present, research and make the necessary corrections. If unable to correct, continue processing.

(5) If completely blank, leave blank.

(1) Return Type Indicator - identifies the type of Form 1042-S. On paper filed Form 1042-S, this field is located under the title and must be coded by C&E.

• This is a one-position field that must be present.

• The valid characters are blank for original and 1 for amended.

• For paper filed Form 1042-S, ERS must research and enter, using the instructions below:

(2) This field is not correctable. If input incorrectly, the Form 1042-T and corresponding Form 1042-S need to be renumbered and reinput.

(1) Withholding agents filing an amended form must indicate the amendment number (using “1” for the first amendment and increasing sequentially for each subsequent amendment).

(2) This is a one-position numeric field that may or may not be present.

(3) Blank and numeric characters 1-9 are valid.

(4) If the Amended Checkbox is present, and this field is blank or has a period, research and correct. If unable to correct, clear this field and continue processing.

(1) Income Code - identifies the type of income being reported.

• This is a two-position numeric field. The valid entries are listed in the table below. Blanks are also valid.

Note: If only one character is present, precede it with a zero.

• If Income Code is missing, research the document to determine if the income type is present elsewhere on the document.

• If an explanation of income type is provided, determine the correct code from the table below:

• If missing from paper filed Form 1042-S, research and enter. If unable to locate or determine a valid code, continue processing.

Income Code	Definition
01	Interest paid by U.S. obligors-general
02	Interest paid on real property mortgages
03	Interest paid to controlling foreign corporations
04	Interest paid by foreign corporations
05	Interest on tax-free covenant bonds
06	Dividends paid by U.S. corporations-general
07	Dividends qualifying for direct dividend rate
08	Dividends paid by foreign corporations
09	Capital gains
10	Industrial royalties
11	Motion picture or television copyright royalties
12	Other royalties (for example, copyright, software, broadcasting, endorsement payments)
13	Royalties paid on certain publicly offered securities
14	Real property income and natural resources royalties
15	Pensions, annuities, alimony, and/or insurance premiums
16	Scholarship or fellowship grants
17	Compensation for independent personal services
18	Compensation for dependent personal services
19	Compensation for teaching
20	Compensation during studying and training
22	Interest paid on deposit with a foreign branch of a domestic corporation or partnership
23	Other income
24	Qualified investment entity (QIE) distributions of capital gains
25	Trust distributions subject to IRC 1445
26	Unsevered growing crops and timber distributions by a trust subject to IRC 1445
27	Publicly traded partnership distributions subject to IRC 1446(a)
28	Gambling winnings
29	Deposit interest
30	Original issue discount (OID)
31	Short-term OID
32	Notional principal contract income
33	Substitute payment - interest
34	Substitute payment - dividends
35	Substitute payment - other
36	Capital gains distributions
37	Return of capital
38	Eligible deferred compensation items subject to IRC 877A(d)(1)
39	Distributions from a nongrantor trust subject to IRC 877A(f)(1)
40	Other dividend equivalents under IRC 871(m)
41	Guarantee of indebtedness
42	Earnings as an artist or athlete—no central withholding agreement
43	Earnings as an artist or athlete—central withholding agreement
44	Specified Federal procurement payments
50	Income previously reported under escrow procedure
51	Interest paid on certain actively traded or publicly offered securities
52	Dividends paid on certain actively traded or publicly offered securities
53	Substitute payments-dividends from certain actively traded or publicly offered securities
54	Substitute payments-interest from certain actively traded or publicly offered securities
55	Taxable death benefits on life insurance contracts
56	Dividend equivalents under IRC 871(m) as a result of applying the combined transaction rules
57	Amount realized under IRC 1446(f)
58	Publicly traded partnership distributions - undetermined

(1) Gross Income - identifies the gross income being reported.

• This is a 12-position numeric field.

• This field must have a positive entry.

• If missing from paper filed Form 1042-S, research and enter.

• Enter amount in whole dollars only, rounding to the nearest dollar (don't enter cents).

(1) Identifies whether withholding is reporting tax withheld under Chapter 3 or Chapter 4 of the Internal Revenue Code (IRC).

(2) This is a one-position field, either a three or a four.

(3) This field is not correctable. If input incorrectly, Form 1042-T and corresponding Form 1042-S need to be renumbered and reinput.

(1) Exemption Code - if applicable, identifies the code associated with the exemption from withholding under Chapter 3.

• This is a two-position numeric field that may or may not be present.

• A valid Exemption Code should be present if Box 3b, Tax Rate equals zero ("00.00").

Note: If an Exemption Code should be present and can't be found through research, continue processing.

• The valid Exemption Codes and definitions are as follows:

(1) Identifies when the agent is applying an exemption from Chapter 4 withholding.

(2) This is a two-position field.

(3) Only numeric characters (0-9) or blanks are valid.

(4) May be filled in if a three is present in Box 3.

• The valid Exemption Codes and definitions are as follows:

(1) Chapter 3 Tax Rate - identifies the tax rate applied to the income.

• This is a four-position numeric field that must be present.

• The tax rate must consist of two digits, a decimal, and two digits (i.e., 30.00 for 30%).

• If ERS tax examiner must enter the Tax Rate (i.e., the field is blank or requires correction), the decimal point must be entered in the correct position.

Note: C&E is not required to edit the decimal and the Data Transcriber is not required to enter it. The decimal point is automatically generated into the field for both electronic and paper records.

• Tax rates for non-treaty countries equals 30%. However, tax rates between treaty countries vary.

• The Chapter 4 Tax Rate is 30%. If another rate is entered, continue processing.

• If missing, check Treaty Tax Rate Chart (Exhibit 3.21.111–12 and Exhibit 3.21.111–13, and Job Aid 2543–702, for the tax rate(s) applicable to each country). If there are multiple valid treaty rates and/or no determination can be made, continue processing. DO NOT mark as non-correctable (NC).

• The valid Chapter 3 Tax Rate percentages for treaty and non-treaty countries are:

Chapter Three Tax Rate Table

Tax Rate	Tax Rate	Tax Rate
00.00	10.00	25.00
02.00	12.00	27.50
04.00	12.50	28.00
04.90	14.00	30.00
04.95	15.00	35.00 (Prior to January 1, 2018)
05.00	17.50	37.00 (After January 1, 2018)
07.00	20.00	39.60 (Prior to January 1, 2018)
08.00	21.00 (After January 1, 2018)

(1) Withholding Allowance - identifies if a withholding agent applied a withholding allowance to the gross income to calculate a net income (Box 6).

• This is a 12-position numeric field that is optional.

• If the entry is negative, mark as non-correctable (NC) and send to the lead/manager. The manager will forward to the HQ analyst for review.

Caution: Do not change the Income Code and/or withholding allowance submitted by the Withholding Agent.

• Enter amount in whole dollars only, rounding to the nearest dollar (don't enter cents).

(1) Net Income- identifies the result of Gross Income (Box 6), minus Withholding Allowance (Box 5).

• This is a 12-position field that should only be used with Income Code 16, 17, 18, 19, 20 or 42.

• Enter amount in whole dollars only, rounding to the nearest dollar (do not enter cents).

If	Then
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(1) Federal Tax Withheld - identifies the amount of U.S. federal tax withheld.

• This field may have up to 12 numeric values. There may or may not be tax withheld.

• All entries must be zero or positive.

• Enter amount in whole dollars only, rounding to the nearest dollar.

• If the tax rate is “0” (00.00) accept as filed. Correct only if there is a transcription or coding error.

If	Then
Tax Rate, Box 3b, is present and Tax Withheld equals a negative amount,	Initiate correspondence with Withholding Agent to send amended record. If unable to correspond, clear the field and continue processing.

(1) This is a one-position field that may or may not be checked.

(2) Edit this field only if there is a transcription or coding error.

(1) This is a one-position field that may or may not be checked and applies only if the Chapter 3 code is 08 or 09.

(2) Edit this field only if there is a transcription or coding error.

(1) Withholding by other agents - identifies the amount of income that has already been subject to withholding by another withholding agent(s). The amount withheld is reported in Box 8.

• This is a 12-position numeric field that may or may not be present.

• Only numeric characters (0-9) are valid.

• Enter amount in whole dollars only, rounding to the nearest dollar.

(1) Amount Repaid to Recipient - identifies an amount the Withholding Agent repaid to the recipient that was overwithheld. The Withholding Agent will reimburse itself by reducing by the amount of tax repaid, the amount of any deposit made for a payment period in the calendar year following the calendar year of the withholding.

• This is a 12-position numeric field that may or may not be present.

• Enter amount in whole dollars only, rounding to the nearest dollar.

• All entries must be zero or positive and should be in whole dollars only.

(1) Total Withholding Credit - identifies the total amount of tax withheld by withholding agents.

(2) This is a 12-position field.

(3) Only numeric characters (0-9) are valid.

(4) Enter amount in whole dollars only, rounding to the nearest dollar.

(5) If blank and you have a paper record, research Form 1042-S. If there are entries in boxes 7a, 8, or 9, compute by adding the amounts from Box 7a and Box 8 and subtracting the amount from Box 9. Enter the total amount in the Total Withholding Credit field.

(1) Identifies the tax paid by the agent, not withheld from the recipient.

(2) This is a 12-position field that may or may not be present.

(3) Only numeric characters (0-9) are valid.

(4) Enter amount in whole dollars only, rounding to the nearest dollar.

(1) Withholding Agent Information - identifies Withholding Agent entity information. This information is read only and can't be updated from the Form 1042-S screen. Withholding Agent information is corrected on the Form 1042-T correction screens. Any corrections made to Withholding Agent entity information are automatically changed on the Form 1042-S correction screen.

(2) The fields are:

• Withholding Agent Employer Identification Number

• Chapter 3 or 4 Status Code

• Withholding Agent Address

• Withholding Agent's Global Intermediary Identification Number (GIIN)

• Country Code

• Foreign Taxpayer Identification Number

• Withholding Agent Name

Note: If it appears the Withholding Agent entity information is incorrect, the CTW user needs to refer the case to the lead. The manager/lead should contact the HQ Analyst with the Cross-Reference DLN and the DLN of the Form 1042-S. Skip all related Form 1042-S records for this Withholding Agent.

Note: Only one Form 1042-T will be prepared for all the IRS Commissioner's issued paper Form 1042-S, Copy A. In addition, the Withholding Agent's address on the IRS Commissioner's Form 1042-S will vary from form to form and even the Form 1042-T because of the many IRS offices that contribute to the IRS Commissioner's Form 1042. See IRM 3.17.79, Accounting Refund Transactions, for more information on Accounting refund practices for Chapter Three Withholding.

(1) Recipient's Name - identifies the name of the Recipient. This field consists of the following entries:

• Name Line 1 is a 40-position field and is a required entry.

• Name Line 2/3 are used for supplemental information (e.g., In care of, In Trust For (ITF), Division, Department, Office, etc.).

Valid Characters are:

• Alpha (A-Z)

• Numeric (0-9)

• Blank

• Ampersand (&)

• Hyphen (-)

• Comma (,)

• Percent Sign (%), which is used to indicate "in care of" and is valid in the first position only.

Note: See chart below for correcting recipient's name, address, and TIN.

(2) If the name line is blank and the Recipient Chapter 3 Status Code (Box 13f) is 27-33 or the Recipient Chapter 4 Status Code (Box 13g) is 42-49, Name Line 1 should be Withholding Rate Pool.

(1) Recipient's Country Code - identifies the recipient's Country Code of residence for tax purposes and treaty benefits. This is a two-position field that may or may not be present.

(1) Recipient's Address - identifies the address of the recipient. See IRM 3.22.111.10.4(1) for a list of valid characters.

(2) These fields consist of entries which identify street, city, state, province code, if applicable, country code, if applicable and zip or foreign postal code.

1. Address (number and street) - Street Line 1 - is currently a required field in the CTW database and identifies the street address of the recipient. The address consists of number, street and apartment or suite number, if applicable. This field consists of 40 positions. Abbreviate as needed.

If	Then
Mail is not delivered to a street address,	Recipient must provide P.O. Box.
Recipient's address is a P.O. Box,	Enter "OR R-addr P.O. Box" in remarks field and mark listing "OR" for Override procedures. Note: If all items are corrected, Save record instead of (OR).

2. Street Line 2 - is used to provide other information pertaining to the recipient's street address.

3. City - is a required field that consists of up to 40 positions. Enter the city or town (or another locality name). Enter APO/FPO/DPO in this field, if applicable. An example of the format for APO/FPO/DPO addresses can be found in paragraph (3), below.

4. State - is a required field if the recipient is in the U.S. Enter the two-character abbreviation using Exhibit 3.21.111–8, State Abbreviation Code Table.

   Note: If City, State, and Domestic Zip Code are present, DO NOT enter a country code. See the table in paragraph 2 above.

5. Province Code - is a required field if the recipient's Country Code is CA (Canada) and consists of 2 positions. For all other recipient addresses this field should be blank.

If	Then
Missing, incomplete, or illegible,	Research supporting documentation or Province Code table (see Exhibit 3.21.111–11 and Job Aid 2543–702, for correct Province Code. The Job Aid includes Canada Postal Code definers).
The city is blank, and the country is CA (Canada),	Enter full province name in the city field along with the Province Code and Foreign Postal Code.

6. Country Code - is a required field when the recipient's address is foreign, and consists of 2 positions. See Exhibit 3.22.111-3 and Document 7475 to correct address/entity country codes.

If	Then
Missing, incomplete, or illegible,	Research supporting documentation or Country Code table for correct code.
Country name is one of the following: Hong Kong (HK) Monaco (MN) Gibraltar (GI) Malta (MT) Singapore (SN) Luxembourg (LU) Mexico (MX) San Marino (SM), Holy See, Vatican City (VT),	Enter country name in city field and Country Code in Country Code field.

7. Postal / Zip Code - identifies the foreign postal or domestic zip code for the recipient. This field varies between 5 - 9 positions. If foreign postal code is not present, and the country is other than Australia, it is not necessary to research for a Postal Code. If present, don't delete. Correct any obviously misplaced entries.

Valid characters are:

• Alpha (A-Z)

• Numeric (0-9)

• Hyphen (-)

If	Then
Recipient address is in U.S.,	Zip code must be present and must be numeric.
Recipient address is foreign,	Foreign postal code may or may not be present and can be alpha and/or numeric.

• A Foreign Postal Code must be present for all Australian addresses. If the Postal Code field is blank, edit using the list below:

Australian State/Territory	Foreign Postal Code
New South Wales and Australia Capital Territory (A.C.T.)	2000 - 2999
Victoria	3000 - 3999
Queensland	4000 - 4999
South Australia	5000 - 5799
Western Australia	6000 - 6799
Tasmania	7000 - 7499
Northern Territory	0800 - 0899

(3) APO/FPO/DPO addresses use the following format:

EXAMPLE:

Payee Name Line - PVT. Willard J. Doe

Address Line - Company F. PSC Box nnADD

Address Line - 100 167 REGT

City - APO (or FPO/DPO)

State - AE, AA, or AP

Zip Code ranges - AE = 090nn-098nn, AA = 340nn, AP = 962nn-966nn

(1) Recipient's U.S. TIN - identifies the recipient's TIN. This is a nine-position field that may or may not be present. Research is required only when a valid TIN is not present, and a transcription error is suspected on a paper Form 1042-S. If a valid TIN is found on the actual Form 1042-S, enter the valid number in the Recipient's TIN field. Research is not required when a valid TIN is not present on an electronic Form 1042-S.

(2) Only numeric characters are valid. However, all zeros (0) or all nines (9) are invalid entries. If the Recipient TIN is all zeros (0) or all nines (9), and a transcription error is suspected, review the actual paper Form 1042-S for the correct TIN. If found, enter the valid number in the Recipient’s TIN field. If the paper Form 1042-S has all zeros (0) or all nines (9), continue processing as is. On electronic Form 1042-S, continue processing as is.

(3) The Recipient's TIN can't be the same as the Withholding Agent's EIN, Box 12a. If a transcription error is suspected, review the actual paper Form 1042-S for the correct TIN. If found, enter the valid number in the Recipient’s TIN field. If not found, continue processing. On electronic Form 1042-S, continue processing as is.

(4) If other than nine numeric characters, and a transcription error is suspected, review the actual paper Form 1042-S for the correct TIN. If found, enter the valid number in the Recipient’s TIN field. If not found on either paper or electronic 1042-S, delete entire entry, and continue processing.

(1) Recipient Chapter Status Code - is the Chapter 3 or Chapter 4 status code that identifies the status of the recipient of the income.

• This is a two-position numeric field.

• Only numeric characters are valid.

• If only one digit is present, enter a zero (0) before the entry, (i.e., "5" is present, enter "05").

• See Exhibit 3.22.111-1 for Chapter 3 Status Codes and Exhibit 3.22.111-2 for Chapter 4 Status Codes.

(2) If the Recipient Chapter Status Code is missing, limited research may be initiated to determine if the recipient type is present elsewhere on the record.

(3) If Recipient First Name Line equals "Unknown," the Recipient Status Code should be 21 for Chapter 3, 29 for Chapter 4. Unknown may be spelled incorrectly. Don’t change withholding agent's entry for the Recipient Chapter Status Code.

(1) The Global Intermediary Identification Number (GIIN) is the identification number that is assigned for Chapter 4 reporting purposes.

(2) This is a 19-position field.

(3) May be blank, alpha, numeric and have periods.

(1) Recipient's Foreign Tax ID number - represents the recipient's identifying number, used in the country of residence for tax purposes.

(2) This is a 22-position field that may be present.

(3) Alpha and numeric characters are valid.

(1) Withholding agents withholding at a reduced rate based on a treaty claim by an entity include a limitation on benefits code (LOB code).

(2) This is a two-position field that may be present.

(3) Numeric characters are valid.

(1) Recipient's Account Number - is assigned by the Withholding Agent and is used to identify the recipient's investment account.

• This is a 20-position field that may or may not be present.

• Any character is valid.

(1) The date of birth of the recipient.

(2) This is an eight-position field.

(3) May be blank or have numeric values only.

(4) Must be in MMDDYYYY format.

(1) In cases in which amounts have already been withheld on a payment by another withholding agent, identify the other withholding agent’s name and EIN.

(2) Box 14a consists of 40 characters.

(3) Box 14b is a nine-position, all numeric field.

(1) Identifies pro-rata basis reporting.

(2) This is a one-position numeric field that must be blank or 1.

(3) If the Form 1042-S is marked, choose the Yes Pro-Rata Basis Reporting radio button.

(4) This field is not correctable. If input incorrectly, the Form 1042-T and corresponding Form 1042-S need to be renumbered and reinput.

(1) Non-Qualified Intermediary's (NQI's)/ Flow-Through Entity's Name, Address and TIN- identifies the name, address and TIN of a Non-Qualified Intermediary or Flow-Through entity.

(2) These fields will consist of the following:

• Box 15a, EIN - nine-position field;

• Boxes 15b and c, Chapter 3 or 4 Status Code - two-position field;

• Box 15d, Name - 40-position field;

• Box 15e, Intermediary’s GIIN (if any) - 19-position field;

• Box 15f, Country Code - two-position field;

• Box 15g - Foreign Taxpayer Identification Number, 22-position field;

• Box 15h and i, Address - (2) 40-position fields.

Note: If any of the above fields are present follow procedures in the Recipient address area for correction.

(3) If any of these fields are in error (red), and are the only fields that can't be corrected, delete the extraneous information, and save the record. If you are unable to save the record, mark the listing for override ("OR") and make a note in the remarks section, indicating override.

(1) Payer's Entity Information - identifies Payer information, if present.

(2) These fields will consist of the following:

• Box 16a, Payer's Name - 40 -position field;

• Box 16b, Payer's TIN - nine-position numeric field;

• Box 16c, Payer's GIIN - 19 -position field;

• Box 16d, Payer's Chapter 3 status code - two-position field;

• Box 16e, Payer's Chapter 4 status code - two-position field;

• Box 17a, State income Tax Withheld - 12-position numeric field and whole dollar amounts only;

• Box 17b, Payer's State Tax Number - 10-position field;

• Box 17c, State Code - two-position alpha field.

(3) If any of these fields are in error (red), and are the only fields that can't be corrected, delete the unnecessary information and save the record.