Processing 1042-S Projections and Tax Returns

Processing from a Register

From the Register Listing page, select Run for the register that includes the accounts you want to process.
Select the check box in the first column for each account you want to process. If you want to select all of the accounts in the register, do not select any check boxes.
The following graphic shows account 1042STEST is selected for processing:
Select the
Process
subtopic. The Process page displays.
Complete the following to process 1042-S projections:
Select
Tax Return Projection
from the
Request
drop-down list.
Select
Federal and State
,
Federal Only
or
State Only
from the
Document Option
drop-down list.
Under the
Projection Options
collapsible section, select
Year to Date
to include data from the beginning of the tax year to today's date. Select
Partial Year
to include the data for the date range you enter in the
beginning
and
ending
fields.
Complete the following to process 1042-S tax returns:
Select
Tax Return
from the
Request
drop-down list.
Select
Federal and State
,
Federal Only
or
State Only
from the
Document Option
drop-down list.
Select
Process
. After processing completes, you can review the processing results from a register.
You can make changes and reprocess accounts as many times as you like throughout the year. However, after the request to prepare the 1042-S data file is submitted, you must begin the 1042-S corrections process.

Processing from an Account Binder

Open the account.
Select
Process
from the
Account Action
drop-down list.
Complete the following to process a 1042-S projection:
Select
Tax Return Projection
from the
Request
drop-down list.
Select
Federal and state
,
Federal Only
or
State Only
from the
Document Option
drop-down list.
Under the
Projection Options
collapsible section, select
Year to Date
to include data from the beginning of the tax year to today's date, or select
Partial Year
to include the data for the date range you enter in the
beginning
and
ending
fields.
Complete the following to process a 1042-S tax return:
Select
Tax Return
from the
Request
drop-down list.
Select
Federal and state
,
Federal Only
or
State Only
from the
Document Option
drop-down list.
Select
Process
. After processing completes, you can review the processing results from the account binder.
You can make changes and reprocess accounts as many times as you like throughout the year. However, after the request to prepare the 1042-S data file is submitted, you must begin the 1042-S corrections process.

Processing Accounts that List Domestic and NRA Recipients when the Income Reallocation Service is Used to Factor Assets

Use the Admin Controls page to set the
Factoring Option
drop-down list to
Use IR Factors
.
Use the Process page or pop-up window to submit a processing request to generate 1041 or 1099 returns.
Use the Admin Controls page to set the
Factoring Option
drop-down list to
Use NRA Factors
.
Use the Process page or pop-up window to submit a processing request to generate Form 1042-S.

Reviewing Processing Results

Withholding Agent Listing
-Includes all withholding agents (even those where the account name or EIN is used) for the PAN. The information in this register is verified in the same manner as the 1042-S data file. Any errors in the information are displayed in the
WA Diagnostic
column.
A withholding agent that has one of the following errors at the time the 1042-S data file is prepared is excluded from the 1042-S data file along with the related recipients:
SSN/EIN is not correctly formatted
Recipient name required (Recipient means withholding agent)
Recipient address required (Recipient means withholding agent)
Recipient city required (Recipient means withholding agent)
Recipient state required (Recipient means withholding agent. The state is required only if the address is a U.S. address.)
Province code required for Canada
TIN must begin with 98 for QI-EIN
Withholding agent contact information required
Beginning in tax year 2020, the following Chapter 3 status codes are inactive:
01 (U.S. Withholding Agent-FI)
02 (U.S. Withholding Agent-Other)
34 (U.S. Withholding Agent-Froeign branch of FI)
An inactive Chapter 3 status code creates diagnostic errors in the
Withholding Agent Listing
register and in the
1042-S Error Summary
collapsible section on the Prepare 1042-S page. The error prevents the withholding agent and any records reported for the withholding agent from being included in the file to be exported and submitted to the IRS. To update the Chapter 3 status code, access the 1042-S Control Information page by selecting
SETUP
then
1042-S Control
.
If you change and save the PAN-level withholding agent information from this register, then the changes are saved in this register and under the
Withholding Agent Detail
collapsible section on the 1042-S Control Information page. If you change and save the information for a withholding agent that is an account, the changes are saved only in this register. The account is not updated.
NRA Recipient Listing
-Includes all NRA recipients for the PAN, and lists the recipient's EIN, name and address. The information in this register is verified in the same manner as the 1042-S data file. Any errors in the information are displayed in the
Recipient Diagnostic
column.
A NRA recipient that has one of the following errors at the time the 1042-S data file is prepared is excluded from the 1042-S data file along with the related income:
SSN/EIN is not correctly formatted
Recipient name required
Recipient address required (Refers to the street address, and does not apply if the recipient code is Unknown)
Recipient city required
Recipient state required (The state is required only if the address is a U.S. address)
Recipient country required
Province code required for Canada
APO/FPO Zip/state code mismatch (Refers to one of the following: the state code is AE and the zip code is not 090xx-0989x; the state code is AA and the zip code is not 340xx; or, the state code is AP and the zip code is not 962xx-966xx)
Country code cannot be UC (Does not apply if the recipient code is Unknown)
TIN must begin with 98 for QI-EIN
Name must be Unknown with blank address
Changes made and saved in this register are used only in the 1042-S data file. The source data is not updated. If you process a 1042-S projection or tax return after the information in this register is changed, the source data overrides the changes.
NRA Detail
-Includes the calculated details for each recipient's Form 1042-S. The information in this register is updated only when 1042-S tax returns are processed.
The information in this register is verified in the same manner as the 1042-S data file. Any errors in the information are displayed in the
1042-S Diagnostic
column.
A 1042-S entry that has a severe diagnostic at the time the 1042-S data file is prepared is excluded from the 1042-S data file. Severe diagnostic messages have a
s-
preceding the message. Informational diagnostic messages have an
i-
preceding the message.
Changes made and saved in this register are used only in the 1042-S data file. The source data is not updated. If you process a 1042-S tax return after the information in this register is changed, the source data overrides the changes.
You can exclude 1042-S information from the 1042-S data file by selecting
Yes
from the
Excl 1042-S
column.
The
1042-S Date Filed
field displays the date the 1042-S data file was created by ONESOURCE Trust Tax.
NRA Corrected Detail
-Includes the current records for each NRA recipient. The current records could be the 1042-S information that is ready to file with the IRS, the original 1042-S filing information or the corrected 1042-S filing information.
The information included in the
NRA Detail
register applies to this register. The difference between this register and the
NRA Detail
register is that the
NRA Detail
register shows all records (original and corrected) while this register shows only the current records.
NRA Summary
-Summarizes each recipient's Form 1042-S information. The information in this register cannot be changed.
The
Tax Withheld
column includes the calculated withholdings. The
Tax Withheld
and
Tax Paid YTD
columns can be compared to determine whether additional tax should be paid based on the data that exists in the database. When 1042-S projections or tax returns are processed, ONESOURCE Trust Tax totals transactions posted to tax code 342 (Federal Income Tax Withheld for NRA) and includes it in the
Tax Paid YTD
column. These totals can be used to help you complete Forms 1042 and 1042-T, which ONESOURCE Trust Tax does not support.

Open the account.
Select the
Recipients
main topic then the
Form 1042-S NQI and Filing Information
subtopic.
Under the
Recipient Summary
collapsible section, select the recipient's
Taxpayer ID
link.
The Form 1042-S Filing Detail page displays if there are no errors with the recipient's income information. If there are errors, a message similar to the following displays. The information displayed in this message is the same as the diagnostic messages displayed in the
NRA Detail
or
NRA Corrected Detail
register.
The Form 1042-S Filing Detail page includes all of the computed 1042-S information for the NRA recipient as it will be in the 1042-S data file. The changes you make to the information on this page are included in an original 1042-S data file as long as the recipient was not included in a previously created 1042-S data file for the tax year. Changes made on this page do not update the source data. If a 1042-S tax return is processed, the source data will override the changes made on this page when the changes are made prior to preparing an original 1042-S data file.
If the recipient was included in a previously created 1042-S data file for the tax year, then the recipient is in corrections mode. Changing the information on this page while in corrections mode turns the background of the changed field to yellow, and results in the creation of corrections records.
Review and, if necessary, change the basic recipient information under the
Recipient Information
collapsible section.
Review the withholding agent information under the
Withholding Agent Information
collapsible section. The information under this collapsible section cannot be changed. If changes are required to this information, change the source data.
Review the information under the
NQI Information
collapsible section only if you indicated that NQI information is required for the account.
If you are working in a tax year prior to tax year 2022, the
NQI Information
collapsible section includes payer information fields that should be reviewed only if the payer is different from the withholding agent.
NQI information is required for the account when the
Use NQI Information for all NRA beneficiaries on this account
check box is selected.
Review and, if necessary, change the recipient's income information under the
1042-S Income Information
collapsible section. The 1042-S income information is displayed in this section as it will be in the 1042-S data file.
If you want to exclude the 1042-S information from the 1042-S data file, horizontally scroll the grid to display the
Exclude from Filing
column. Select the check box in the row you want to exclude.
Beginning with tax year 2022, the grid under the
1042-S Income Information
collapsible section includes payer information fields that should be reviewed only if the payer is different from the withholding agent. The payer is different from the withholding agent when a payer name and EIN or GIIN is entered in the
Payer's Name if different from Agent
,
Payer's TIN if different from Agent
or
Payer's GIIN if different from Agent
fields under the
Form 1042-S Recipient Information
collapsible section on the Recipient Detail page. The
Date Filed for 1042-S
column displays a date if the information was already included in a 1042-S data file.
Select
Save
.