You may round off cents to whole dollars. If you do round to whole dollars, you must round all amounts. To round off amounts to the nearest whole dollar, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding and only round off the total.

See Correcting Paper Forms 1042-S on page 16.

Withholding agents must check this box to notify the IRS that an NQI that used the alternative procedures of Regulations section 1.1441-1(e)(3)(iv)(D) failed to properly comply with those procedures. See Pro-rata reporting beginning on page 8 for additional information and examples.

All filers must enter the appropriate 2-digit income code from the list on page 12. Use the income code that is the most specific. For example, if you are paying bank deposit interest, you should use code 29 (deposit interest), not code 01 (interest paid by U.S. obligors—general). If you paid more than one type of income to or on behalf of the same recipient, you must complete a separate Form 1042-S for each income type.

Substitute payment income codes are to be used for all substitute payment transactions. For more information, see Regulations sections 1.861-2(a)(7) and 1.861-3(a)(6) and Notice 97-66.

For each income type, enter the gross amount you paid to or on behalf of the recipient during calendar year 2007, including withheld tax. The following special procedures apply to the reporting of gross income.

This box should only be completed if the income code reported in box 1 is 15 (scholarship or fellowship grants) or 16 (compensation for independent personal services). See Pub. 515 for more information.

Complete this box only if you entered an amount in box 3. Otherwise, leave it blank.

Enter the correct rate of withholding that applies to the income in box 2 (gross income) or box 4 (net income), as appropriate. (See Valid Tax Rate Table on this page.) The correct tax rate should be included even if you withheld less than that rate. For example, if an NQI is reporting dividends paid to a beneficial owner who is a resident of a country with which the United States does not have a tax treaty and a U.S. withholding agent paid the dividend and withheld only 15% (rather than the required 30%) and the NQI withholds an additional 15%, the NQI should report “30.00” in box 5. See Example 2 on page 11.

The tax rate on dividends paid to a corporation created or organized in, or under the law of, the Commonwealth of Puerto Rico may be 10%, rather than 30%. See Pub. 515 for more information.

Enter the tax rate using the following format: two digits, a decimal, and two digits (for example, “30.00” for 30%). However, if the income is exempt from tax under a U.S. tax treaty or the Code, enter “00.00.” If the tax rate is less than 10%, enter a zero before the tax rate (for example, “04.00” for 4%).

Generally, if the tax rate you entered in box 5 is 00.00, you should enter the appropriate exemption code (01 through 09) from the list on page 12.

If an amount was withheld under Chapter 3 of the Code (the tax rate you entered in box 5 is greater than zero and is not due to backup withholding), enter “00” in box 6. If the tax rate you entered in box 5 is due to backup withholding, leave box 6 blank.

You must also provide the correct recipient code in box 12 and the name and address of the actual recipient in
box 13.

Enter the total amount of U.S. federal tax actually withheld. If no tax has been withheld on the payment by any withholding agent, enter “-0-.” If you are a withholding agent filing a Form 1042-S to report income that has already been subject to withholding by another withholding agent, enter the aggregate amount of tax withheld by you and any other withholding agent (see Amounts Paid by Nonqualified Intermediaries and Flow-Through Entities on page 11).

This box should be completed only if:

Generally, a QI should not enter an amount in box 8 unless it is a QI that has represented on its Form W-8IMY that it is assuming primary withholding responsibility under Chapter 3 of the Code.

You must also state on a timely filed Form 1042 for the calendar year of overwithholding that the filing of the Form 1042 constitutes a claim for refund.

You are generally required to enter your EIN. However, if you are filing Form 1042-S as a QI, withholding foreign partnership, or withholding foreign trust, enter your QI-EIN, WP-EIN, or WT-EIN. Enter the number and check the applicable box.

If you do not have an EIN, you can apply for one online at
www.irs.gov/smallbiz or by telephone at 1-800-829-4933. Also, you can apply for an EIN by filing Form SS-4, Application for Employer Identification Number. File amended Forms 1042-S when you receive your EIN.

To get a QI-EIN, WP-EIN, or WT-EIN, submit Form SS-4 with your application for that status. (See the definitions for Qualified intermediary (QI) on page 3 and Withholding foreign partnership (WP) or withholding foreign trust (WT) on page 4 for more information.) Do not send an application for a QI-EIN, WP-EIN, or WT-EIN to the Ogden Service Center; it will not be processed.

Enter your name and address in the appropriate boxes. If your post office does not deliver mail to the street address and you have a P.O. box, show the box number instead of the street address.

If you are a nominee that is the withholding agent under section 1446, enter the PTP's name and other information in boxes 17 through 20.

You may use this box to enter the account number assigned by you to the recipient.

Enter the recipient code from the list on page 12. The following special instructions apply.

You must obtain and enter a U.S. taxpayer identification number (TIN) for:

If a foreign person provides a TIN on a Form W-8, but is not required to do so, the withholding agent must include the TIN on Form 1042-S.

Enter the name of the recipient's country of residence for tax purposes.

You must enter the code (from the list that begins on page 17) for the country of which the recipient claims residency under that country's tax laws. Enter “OC” (other country) only when the country of residence does not appear on the list or the payment is made to an international organization (for example, the United Nations). Enter “UC” (unknown country) only if the payment is to an unknown recipient. If you are making a payment to a QI, WP, or WT or if you are a QI, WP, or WT and are making a payment to a QI, WP, or WT withholding rate pool, enter the country code of the QI, WP, or WT.

If you are reporting amounts paid to a recipient whose withholding certificates or other documentation has been submitted to you with a Form W-8IMY provided by an NQI or flow-through entity, you must include the name, address, and TIN, if any, of the NQI or flow-through entity with whose Form W-8IMY the recipient's Form W-8 or other documentation is associated.

For box 18, you must enter the country code from the list beginning on page 17 for the country where the NQI or flow-through entity is located.

If you are a nominee that is the withholding agent under section 1446, enter the PTP's name and other information in these boxes.

See the definition of a payer beginning on page 3. Include the payer's name and TIN if different from that in boxes 9 and 10.

Include in these boxes information relating to any state income tax withheld.

If you filed a Form 1042-S with the IRS and later discover you made an error on it, you must correct it as soon as possible. To correct a previously filed Form 1042-S, you will need to file an amended Form 1042-S. See the Step-by-Step Instructions on this page.

To determine whether you are required to submit amended Forms 1042-S electronically or on magnetic media, see Electronic/Magnetic Media Reporting on page 2 and Pub. 1187.

If any information you correct on Form(s) 1042-S changes the information you previously reported on Form 1042, you must also correct the Form 1042 by filing an amended return. To do this, see the Form 1042 instructions.