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If you are a QI requesting a

If March 15 is a Saturday,

The sum of all Forms 1042-S, box 9

refund, you must attach the

Sunday, or legal holiday, the next

(box 7 plus box 8), less

TIP

corresponding Form(s) 1042-S

business day is the final date for

The sum of all Forms 1042-S, box 10,

CAUTION

received to support the amount claimed

these actions.

plus

on line 66. Failure to do so will result in the

The tax assumed from Forms 1000.

denial of the refund or credit being

Reimbursement procedure. Under

If it does not, attach a statement to

claimed. If you are a PTP or a nominee

the reimbursement procedure, you repay

Form 1042 explaining the difference.

withholding under section 1446, the tax

the beneficial owner or payee the amount

Line 63a. The amount on line 63a must

overwithheld. You use your own funds for

paid for a payee may only be claimed as a

equal the sum of the monthly totals as

this repayment. You must make the

credit by the payee.

listed on the Record of Federal Tax

repayment by March 15 of the year after

QSL claiming a credit forward. If you

Liability. Do not make any adjustments on

the calendar year in which the amount was

are a QSL or other withholding agent

this line. Except for adjustments described

overwithheld. For example, if you

claiming a credit forward of prior

in the instructions for line 63b, you may

overwithhold tax in 2013, you must repay

withholding on substitute dividends as

only make adjustments on the appropriate

the beneficial owner by March 17, 2014.

determined under Notice 2010-46, you

entry line of the Record of Federal Tax

You must keep a receipt showing the date

should attach Form(s) 1042-S issued to

Liability.

and amount of the repayment and provide

you to support such credits. If a credit is

a copy of the receipt to the beneficial

Line 63b. Include on line 63b any tax

claimed with respect to any U.S. source

owner.

liability resulting from adjustments of

substitute dividends paid to you from a

You may reimburse yourself by

underwithheld tax on corporate

withholding agent that has not issued a

reducing any subsequent deposits you

distributions made in calendar year 2013

Form 1042-S to you for such payments,

make before the end of the year after the

if:

attach a supporting statement to Form

calendar year in which the amount was

The distributing corporation made a

1042 indicating the following:

overwithheld. The reduction cannot be

reasonable estimate of accumulated and

The withholding agent's name, address,

more than the amount you actually repaid.

current earnings and profits under

and EIN (if known);

Regulations section 1.1441-3(c)(2)(ii)(A),

Report the reduced tax liability on lines

The amount of U.S. source substitute

and

1 through 60 for the period for which you

dividends received from the withholding

The distributing corporation or

reimbursed the overwithheld tax. Report

agent; and

intermediary paid over the underwithheld

the total tax withheld as your total

The amount of credit forward you

tax by March 17, 2014.

deposits. Indicate on line 70 whether you

included on line 66 in connection with

want a refund or a credit.

If you are a regulated investment

these substitute dividends.

company (RIC), real estate investment

Set-off procedure. Under the set-off

trust (REIT), or personal holding company

Line 69. You may claim an overpayment

procedure, you repay the beneficial owner

(PHC) that paid a dividend subject to

shown on line 69 as a refund or a credit.

or payee the amount overwithheld by

section 852(b)(7), section 857(b)(9), or

Check the applicable box on line 70 to

reducing the amount you would have been

show which you are claiming. If you claim

section 563(b) (relating to certain

required to withhold on later payments you

dividends declared in the preceding

a credit, it can reduce your required

make to that person. These later

October, November, or December), enter

deposits of withheld tax for 2014.

payments must be made before the earlier

your additional tax liability on those

of:

Line 71. Enter on line 71 the total amount

dividends declared in 2013 but paid no

The date you actually file Form 1042-S

of specified federal procurement

later than March 17, 2014, less any

for the calendar year in which the amount

payments multiplied by 2% (.02).

additional tax liability on those dividends

was overwithheld, or

declared in 2012 but paid no later than

Adjustment For

March 15 of the year after the calendar

March 15, 2013. Show any negative

year in which the amount was

Overwithholding

amount in brackets. Attach a statement

overwithheld.

showing your calculation.

What to do if you overwithheld tax

Report the reduced tax liability on lines

depends on when you discover the

Line 64. Enter the total tax deposits you

1 through 60.

overwithholding.

made (including amounts paid with an

Overwithholding discovered at a later

extension of time to file).

Overwithholding discovered by March

date. If you discover after March 15 of the

15 of the following calendar year. If

Line 66. You are permitted to take a

following calendar year that you

you discover that you overwithheld tax by

credit for amounts withheld by other

overwithheld tax for the prior year, do not

March 15 of the following calendar year,

withholding agents that relate to the total

adjust the amount of tax liability reported

you may use any undeposited amount of

net tax liability reported on line 63c. For

on Form 1042 or on any deposit or

tax to make any necessary adjustments

example, you are a QI and the amount you

payment for that prior year. Do not repay

between you and the recipient of the

entered on line 63c includes amounts

the beneficial owner or payee the amount

income. Repay the recipient and reduce

withheld by a U.S. withholding agent. You

overwithheld.

the amount of your total deposit. Report

may take a credit on line 66 for the

In this situation, the recipient will have

the reduced tax liability on lines 1 through

amounts that were withheld by the U.S.

to file a U.S. income tax return (Form

60 for the period(s) for which you repaid

withholding agent. The amount on line 66

1040NR, Form 1040NR-EZ, or Form

the overwithheld tax.

should equal the sum of all Forms 1042-S,

1120-F) or, if a tax return has already been

box 8, that you file for the year.

If the undeposited amount is not

filed, a claim for refund (Form 1040X or

enough to make any adjustments, or if you

amended Form 1120-F) to recover the

Note. All withholding agents (QIs and

discover the overwithholding after the

amount overwithheld.

NQIs) must verify entries on Line 66 by

entire amount of tax has been deposited,

attaching supporting Form(s) 1042-S,

you can use either the reimbursement or

Third Party Designee

issued to you, to verify the credit amounts

the set-off procedure to adjust the

claimed.

If you want to allow any individual,

overwithholding.

corporation, firm, organization, or

Instructions for Form 1042 (2013)

-4-

Instructions For Form 1042 - Annual Withholding Tax Return For U.s. Source Income Of Foreign Persons - 2013 Page 4

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