Form 1042 General And Specific Instructions (Page 2 of 3) in pdf

Form 1042 (2009)

Page

QI and NQI checkboxes. See page 2 for

If you are required to use EFTPS and fail to

understatements of tax from the due date

(including extensions) to the date of payment.

definitions of intermediary, qualified

do so, you may be subject to a 10% penalty.

Interest is figured at a rate determined under

intermediary (QI), withholding foreign

If you are not required to use EFTPS, you

partnership (WP), withholding foreign trust

section 6621.

may participate voluntarily. To enroll in or get

(WT), and nonqualified intermediary (NQI). See

more information about EFTPS, call

Late filing of Form 1042. The penalty for not

the Form 1042-S instructions for definitions of

1-800-555-4477. You also can visit the

filing Form 1042 when due (including

U.S. branch treated as a U.S. person and

EFTPS website at

extensions) is 5% of the unpaid tax for each

flow-through entity.

Depositing on time. For deposits made by

month or part of a month the return is late, up

Check the “QI/Withholding foreign

EFTPS to be on time, you must initiate the

to a maximum of 25% of the unpaid tax.

partnership or trust” box on page 1 if you are

transaction at least one business day before

Late payment of tax. The penalty for not

a QI, WP, WT, or a U.S. branch treated as a

the date the deposit is due.

paying tax when due is usually

⁄

of 1% of

U.S. person. Check the “NQI/Flow-through

Completing Form 8109. If you do not use

the unpaid tax for each month or part of a

entity” box if you are an NQI or a

EFTPS, deposit your income tax payments

month the tax is unpaid. The penalty cannot

flow-through entity.

using Form 8109. In most cases, you will fill

exceed 25% of the unpaid tax.

Lines 1 through 60. Except as otherwise

out a Form 8109 following the instructions in

Failure to deposit tax when due. See the

provided in these instructions, include tax

the coupon book. However, if a deposit

instructions for line 70 on page 4.

liability for the period in which the income

liability arises from a distribution reportable

was distributed. Do not enter any negative

on Form 1042 for the prior year, darken the

Other penalties. Penalties may be imposed

amounts on these lines.

4th quarter space on Form 8109. If the

for negligence, substantial understatement of

distribution is reportable for the current year,

tax, and fraud. See sections 6662 and 6663.

A domestic partnership that has not

darken the 1st quarter space. In all cases,

distributed a foreign partner’s distributive

follow the coupon book instructions for

Specific Instructions

share of income subject to withholding under

completing the rest of the deposit coupon. To

section 1441 must withhold tax on any

ensure proper crediting, write your taxpayer

income not distributed by the date on which

File only one Form 1042

identification number, the period to which the

the Schedule K-1 is sent or otherwise

consolidating all Form 1042-S

tax deposit applies, and “Form 1042” on the

furnished to the foreign partner (or, if earlier,

recipient information, regardless of

check or money order.

the due date for furnishing Schedule K-1 to

CAUTION

the number of different clients,

the partner). Include such tax for the period

branches, divisions, or types of income for

If you prefer you may mail your coupon and

that includes the date the tax was required to

which you are the withholding agent.

payment to:

be withheld.

However, if you are acting in more than one

Financial Agent

capacity (for example, you are acting as a QI

Do not include on lines 1 through 60 any

Federal Tax Deposit Processing

for certain designated accounts and as an

tax liability caused by adjustments of

P.O. Box 970030

NQI for other accounts), file a separate Form

underwithheld tax on corporate distributions

St. Louis, MO 63197 U.S.A.

1042 for each capacity in which you are

made in calendar year 2009 if the following

Make your check or money order payable

acting.

apply.

to “Financial Agent.” The Financial Agent

● The distributing corporation made a

Rounding off to whole dollars. You may

cannot process foreign checks. If you send a

round off cents to whole dollars. If you do

reasonable estimate of accumulated and

check written on a foreign bank to pay a

round to whole dollars, you must round all

current earnings and profits under Regulations

federal tax deposit, you generally will be

amounts. To round off amounts to the

section 1.1441-3(c)(2)(ii)(A); and

charged a deposit penalty and will receive a

nearest whole dollar, drop amounts under 50

● The distributing corporation or intermediary

bill in the mail. A foreign bank is a financial

cents and increase amounts from 50 to 99

institution that is not incorporated under the

paid over the underwithheld tax by March

cents to the next dollar. For example, $1.39

laws of the United States, any U.S. state, any

15, 2010.

becomes $1 and $2.50 becomes $3. If you

U.S. possession, or the District of Columbia.

Instead, include these payments of

have to add two or more amounts to figure

Note. The “Amount of Deposit” on the form

underwithheld tax on line 63b.

the amount to enter on a line, include cents

should be stated in U.S. dollars and all

when adding and only round off the total.

If you are a QI that did not assume primary

payments should be made in U.S. dollars.

withholding responsibility, enter the total

Employer identification number (EIN). You

amount withheld by the U.S. withholding

Interest and Penalties

are generally required to enter your EIN.

agent(s) on line 59. Report all other amounts

However, if you are filing Form 1042 as a QI,

(that is, amounts you actually withheld) on the

If you file Form 1042 late, or fail to pay or

withholding foreign partnership, or withholding

line that corresponds with the date the liability

deposit the tax when due, you may be liable

foreign trust, enter your QI-EIN, WP-EIN, or

was incurred.

for penalties and interest unless you can

WT-EIN. Also, be sure to check the

show that the failure to file or pay was due to

“QI/Withholding foreign partnership or trust”

If you repaid the recipient for an amount

reasonable cause and not willful neglect.

box. See QI and NQI checkboxes on this page.

overwithheld by reducing the amount withheld

on a later payment, report the reduced

If you do not have an EIN, you can apply

You do not have to figure the

amount on these lines. If you used the

for one online at or by

amount of any interest or penalties

TIP

reimbursement procedure for overwithheld

you may owe. Because figuring

telephone at 1-800-829-4933. Also, you can

amounts, see Pub. 515.

file Form SS-4, Application for Employer

these amounts can be

Identification Number, by fax or mail. File

complicated, we will do it for you if you want.

Line 61. Enter the number of Forms 1042-S

amended Forms 1042-S when you receive

We will send you a bill for any amount due.

filed on paper and electronically.

your EIN.

If you include interest or penalties (other

Lines 62a and 62b. Enter the amounts

To get a QI-EIN, WP-EIN, or WT-EIN,

than the penalty for failure to deposit tax

requested for all Forms 1042-S (regardless of

submit Form SS-4 with your application for

when due) with your payment, identify and

whether the form was filed electronically or on

that status. Do not send an application for a

enter the amount in the bottom margin of

paper) and for all Forms 1000, Ownership

QI-EIN, WP-EIN, or WT-EIN to the addresses

Form 1042, page 1. Do not include interest or

Certificate.

listed in the Instructions for Form SS-4.

penalties (other than the penalty for failure to

Be sure to reconcile amounts on

deposit tax when due) in the balance due on

Address. Include the suite, room, or other

Form 1042 with amounts on

line 68.

unit number after the street address. If your

Forms 1042-S (including Forms

Interest. Interest is charged on taxes not paid

post office does not deliver mail to the street

CAUTION

1042-S filed electronically), to

by the due date, even if an extension of time

address and you have a P.O. box, show the

avoid unnecessary correspondence with the

to file is granted. Interest is also charged on

box number instead of the street address.

IRS.

penalties imposed for failure to file,

negligence, fraud, and substantial

Form 1042 General And Specific Instructions Page 2

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