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Total Net Tax Liability

electronically or on paper) and for all

should equal the sum of all Forms 1042-S,

Forms 1000.

box 8, that you file for the year.

Line 64a. Include on line 64a any

Line 63a. The amounts reported on

adjustments to total net tax liability. For

Note. All withholding agents (including

line 63a should be the amounts actually

example, report any adjustment to liability

QIs, WPs, WTs, NQIs, NWPs, and NWTs)

withheld by the withholding agent before

when:

must verify entries on lines 67a and 67b

any applicable adjustments reported on

A distributing corporation made a

by attaching supporting Form(s) 1042-S or

lines 63c(1) and 63c(2).

reasonable estimate of accumulated and

1099 to verify the credit amounts claimed

current earnings and profits under

for withholding by other withholding

Line 63c(1). The amounts reported on

Regulations sections 1.1441-3(c)(2)(ii)(A)

agents. Failure to do so will result in the

line 63c(1) should be amounts you repaid

or 1.1474-6(c)(2)(ii), and

denial of the refund or credit being

to the beneficial owner or payee in the

A distributing corporation or

claimed. If you are a PTP or a nominee

year following the calendar year of

intermediary paid over any underwithheld

withholding under section 1446, the tax

overwithholding pursuant to either the

tax with respect to the distribution by

paid for a payee may only be claimed as a

reimbursement or set-off procedures (and

March 15, 2018.

credit by the payee.

should also be reported as a reduction in

tax liability on line 59). See Adjustment for

QSL claiming a credit forward. If you

Note. The amount reported on line 64a

Overwithholding, later. See Form 1042-S,

are a QSL or other withholding agent

must not be included in the Record of

box 11 for reporting these corresponding

claiming a credit forward of prior

Federal Tax Liability (lines 1-60).

amounts.

withholding on substitute dividends on

Lines 64b and 64c. Enter the sum of the

line 67b as determined under Notice

Line 63c(2). The amounts reported on

amounts reported on the Record of

2010-46, you should attach Form(s)

line 63c(2) should be amounts that you

Federal Tax Liability (lines 1-60) that are

1042-S issued to you to support such

withheld in the year following the calendar

attributable to liability under chapter 3 (on

credits. If a credit is claimed with respect

year of underwithholding from future

line 64b) and chapter 4 (on line 64c). The

to any U.S. source substitute dividends

payments made to a beneficial owner or

amounts shown on lines 64b and 64c

paid to you from a withholding agent that

from other property or additional

should not include any amounts shown on

has not issued a Form 1042-S to you for

contributions of a beneficial owner that

lines 64a and 64d. Do not make any other

such payments, attach a supporting

you hold in custody or otherwise control.

adjustments to this line.

statement to Form 1042 indicating the

See Adjustment for Underwithholding,

following to support your credit.

Line 64d. Enter on line 64d amounts

later. Also report on line 63c(2) any other

reported on the Record of Federal Tax

The withholding agent's name, address,

amounts that you withheld in the year

Liability (lines 1-60) that are attributable to

and EIN (if known).

following the calendar year in which the

liability for specified federal procurement

The amount of U.S. source substitute

related payments were made (to the

payments under section 5000C.

dividends received from the withholding

extent permitted under an applicable

agent.

regulation section in chapter 3 or 4). See

Line 64e. The amount on line 64e should

The amount of credit forward you

Withholding after the time of payment,

equal the sum of lines 64a through 64d.

included on line 67b in connection with

earlier, for how to report the tax liability

Reporting of Taxes Paid and

these substitute dividends.

related to such payments.

Overpayment or Balance Due

The total of the amounts reported on

Lines 70a and 70b. Enter on line 70a

lines 63a and 63c(2) should be the

any overpayment attributable to payments

Line 65. Enter the total tax deposits you

amounts withheld by the withholding agent

subject to withholding under chapters 3

made for the year (including amounts paid

reported on box 7a of the corresponding

and 4. Enter on line 70b any overpayment

with an extension of time to file). Enter

Forms 1042-S.

attributable to payments subject to the

deposits of tax withheld during the

excise tax on specified federal

The total of the amounts reported on

calendar year in which the related

procurement payments. Do not include on

line 63b(1) and (2) should be the amounts

payment was made on line 65a. Enter

these lines any overpayment attributable

reported on box 8 of the corresponding

deposits of tax withheld during the year

to amounts that were actually withheld

Forms 1042-S.

following the calendar year in which the

from the beneficial owner (unless such

related payment was made (to the extent

Line 63d. The amounts reported on

amounts were repaid pursuant to the

permitted under an applicable regulation

line 63d should be the amounts paid by

reimbursement or setoff procedures).

section in chapter 3 or 4) on line 65b.

the withholding agent from its own funds

Line 71. You may claim an overpayment

rather than through withholding from the

Line 66. Enter any overpayment reported

(the sum of lines 70a and 70b) as a refund

payment to the recipient. See Form

on the 2016 Form 1042 that you are

or a credit. Check the applicable box on

1042-S, box 9 for the corresponding

applying as a credit on the 2017 Form

line 71 to show which one you are

amounts.

1042. See line 71.

claiming. If you claim a credit, it can

Line 67. You are permitted to take a

reduce your required deposits of withheld

Note. Amounts withheld and held in

credit for amounts withheld by other

tax for 2018. Note that if you repaid the

escrow (and not deposited with the IRS)

withholding agents that relate to the total

recipient overwithheld amounts after year

pursuant to the escrow procedures under

net tax liability reported on lines 64b and

end 2017 using the reimbursement or set-

Regulations section 1.1471-2(a)(5)(ii) or

64c. For example, you are a QI and the

off procedures, you are not able to claim a

1.1441-3(d) are not reported on lines 63a

amount you entered on line 64b includes

refund for such an amount on the 2017

through 63d until the year they are

amounts withheld by a U.S. withholding

Form 1042. Instead, you must indicate on

deposited with the IRS. See instructions

agent under chapter 3 with respect to

line 71 that you are claiming a credit to be

for lines 1-60, earlier. Therefore, amounts

payments made to you as an intermediary

applied to the 2018 calendar year. See

that are reported as held in escrow (see

on behalf of your account holders. You

Adjustment for Overwithholding, later.

box 7b of Form 1042-S) are not taken into

may take a credit on line 67 for the

account for purposes of reconciling lines

amounts that were withheld by the U.S.

63a through 63d with the corresponding

withholding agent. The amount on line 67

Forms 1042-S.

Instructions for Form 1042 (2017)

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Instructions For Form 1042 - Annual Withholding Tax Return For U.s. Source Income Of Foreign Persons - 2016 Page 7

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