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A Form 1042-S must be filled out by a U.S. withholding agent when a payment is made to a foreign estate, indicating the estate as the recipient. When a U.S. withholding agent disburses a payment to a U.S. branch of an FFI or NFFE, Form 1042-S must be completed accordingly. Utilize recipient code 13 , qualified securities lender—qualified intermediary, or 14 (qualified iris casino securities lender—other) as the chapter 3 status code and incorporate the corresponding chapter 4 status code of the QSL. Payments of substitute dividends made by a withholding agent to a QSL should be reported on Form 1042-S, with the QSL designated as the recipient. A QI that takes on primary withholding responsibilities, as well as a WP or WT, is not obligated to give withholding rate pool details to a withholding agent but must report this information directly to the IRS. In most instances, when a U.S. withholding agent makes payments to a QI that is subject to withholding under chapters 3 or 4, whether or not the QI takes on primary withholding duties, or to a QI acting as a QDD, WP, or WT, Form 1042-S should be filled out, identifying the QI, QDD, WP, or WT as the recipient.
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Like the Japanese iris and the Louisiana iris, the Siberian iris’s flowers have the typical iris shape and lack beards. The Siberian iris is another popular garden species. Like the Japanese iris, all species of the Louisiana iris grow best near water. The category of “Louisiana irises” includes cultivars of five different species and their hybrids. The flowers have a flattened shape and lack the beards found on the bearded iris. The Japanese iris is a water-loving species commonly grown along the edges of ponds and streams.
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Thus, the withholding agent must treat a foreign upper-tier partnership in the PTP or a foreign simple trust as a recipient for reporting of these payments on Form 1042-S. See Appendix C for a comprehensive analysis of this Example 1 fact pattern, including a step-by-step guide on how to complete Form 1042-S in its entirety. A U.S. withholding agent should complete boxes 16a through 16e only if it is completing Form 1042-S as a paying agent acting pursuant to an agreement to act as an authorized agent for filing and reporting Forms 1042 and 1042-S. The Form 1042-S must also include the appropriate chapter 3 and chapter 4 exemption codes, if applicable, in boxes 3a and 4a, as well as the appropriate recipient codes for the chapter 3 and chapter 4 status codes for a payment that is a withholdable payment and an amount subject to chapter 3 withholding. You must always complete boxes 4a , chapter 4 exemption code, and 4b (chapter 4 withholding tax rate) regardless of the chapter indicator entered in box 3. You must complete the following steps before completing Form 1042-S.
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