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1042-S

Setting 1042-S Controls

1042-S controls are set at the PAN level and include withholding agent, transmitter and NQI information as well as print and copy options. The first year you use ONESOURCE Trust Tax, set your 1042-S controls before processing any accounts with NRA recipients. Otherwise, you will receive the error message, "No withholding agent information-Processing stopped with error 682", during processing. Each subsequent year, you can roll over your 1042-S controls then review and update as necessary.

Rolling Over and Resetting 1042-S Controls

After your 1042-S controls are set the first year, you have the option to roll over or reset your 1042-S controls. When you roll over your 1042-S controls, you apply the same information to the next tax year. When you reset your 1042-S controls, you return the information and options to their default settings. Resetting your 1042-S controls means that the fiduciary information entered in the Fiduciary Info options on the Options and Overrides page is used as your Bank Default withholding agent.
note
You can roll over or reset your 1042-S controls only if your 1042-S controls have not yet been rolled over for the year.
To roll over or reset your 1042-S controls:
  1. Select
    SETUP
     then
    1042-S Control
    . If your 1042-S controls have not been rolled over, the following message displays:
  2. Select
    Save
     to roll over your 1042-S controls. Select
    Reset
     to reset your 1042-S controls.
  3. Review your rolled over or reset 1042-S controls. On the 1042-S Control Information page, be sure to review the Chapter 3 status code. 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)
  5. If an inactive Chapter 3 status code is not updated to an active Chapter 3 status code, a diagnostic message displays when you attempt to save other changes to the 1042-S Control Information page. Additionally, 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.

Setting Up Withholding Agent Information

On the 1042-S Control Information page, withholding agent information is included under the
Withholding Agent Information
 and
Withholding Agent Detail
 collapsible sections. The
Withholding Agent Information
 collapsible section has selections for identifying the withholding agent name and EIN. The
Withholding Agent Detail
 collapsible section is used to enter or update the withholding agent information.
A Bank Default withholding agent must always exist. The Bank Default withholding agent is used on all of your 1042-S returns if no other withholding agent is used. Since your organization is typically the withholding agent for the 1042-S returns you process, the Bank Default withholding agent information is initially based on the fiduciary information entered in the Fiduciary Info options on the Options and Overrides page. You can leave the information as is or you can change it.
note
If this is the first time you are accessing your 1042-S controls, you will need to activate the Bank Default withholding agent. To activate the Bank Default withholding agent, select
SETUP
,
1042-S Control
 then
Save
 on the 1042-S Control Information page.
ONESOURCE Trust Tax allows you to set up additional withholding agents to accommodate scenarios where the account may be a withholding agent or a group of accounts may have different withholding agents. All additional withholding agents must be associated with a sub ID. Under the
Withholding Agent Detail
 collapsible section, highlighting the row of an additional withholding agent shows the sub IDs associated with the withholding agent's EIN in the
Sub ID
 group box.
You can set up as many additional withholding agents as you need.
To set up withholding agent information:
  1. Select
    SETUP
     then
    1042-S Control
    .
  2. Under the
    Withholding Agent Information
     collapsible section, select one of the following to identify the name and EIN for the withholding agents:
    • Shown below for all accounts
      -The withholding agent information in the grid under the
      Withholding Agent Detail
       collapsible section is used for all 1042-S returns processed for your PAN. This is the default selection.
    • The account's name and EIN along with the associated address and phone number below
      -The account name and EIN as well as the address and phone number entered in the grid under the
      Withholding Agent Detail
       collapsible section is used as the withholding agent. When this option is selected, the Form 1042-S for each account will use a different name and EIN.
    • For accounts with no EIN; otherwise, use the account's name and EIN along with the associated address and phone number below
      -For each account with an EIN, the account name and EIN as well as the address and phone number entered in the grid under the
      Withholding Agent Detail
       collapsible section is used as the withholding agent.
    • For each account with no EIN, the name, EIN, address and phone number entered in the grid under the
      Withholding Agent Detail
       collapsible section is used as the withholding agent.
  4. Under the
    Withholding Agent Detail
     collapsible section, enter the withholding agent's EIN in the
    EIN
     field and the name and address in the respective fields in the row that includes the text, "Please select here to add new row." If the withholding agent is foreign or if FATCA reporting applies, be sure to scroll to the right to enter the appropriate information. If the
    Country
     field is left blank,
    U.S.
     prints on Form 1042-S beginning with tax year 2020. It is included in the IRS file for all years because the IRS requires the same file format for all years.
  5. If you are setting up an additional withholding agent, enter the withholding agent's sub ID in the first field of the
    Sub ID
     group box. Select the
    Add
     link to add the sub ID to the withholding agent's sub ID list.
  6. Select
    Save
    . You can now enter the information for the next additional withholding agent. When adding more than one additional withholding agent, be sure to enter the sub ID information then select
    Save
     before adding the next additional withholding agent.

Setting Up Transmitter Information

You must obtain approval from the IRS before you can electronically file Forms 1042-S through the IRS' FIRE system. See the IRS' About Form 4419, Application for Filing Information Electronically (FIRE) page to learn more about submitting Form 4419, Application for Filing Information Returns Electronically.
After you are approved, you will receive a five-character alphanumeric Transmitter Control Code (TCC) from the IRS. Before preparing a 1042-S data file, you will need to enter your TCC along with your contact information using the
Transmitter Information
 collapsible section on the 1042-S Control Information page.
note
TCCs for electronically filing Forms 1042-S begin with 22. You cannot use a TCC obtained for 1099 or 1041 electronic filing to electronically file Forms 1042-S.
Except for the
Control Code
,
Contact Name
 and
Contact Phone
 fields, the transmitter information under the
Transmitter Information
 collapsible section is initially based on the fiduciary information entered in the Fiduciary Info options on the Options and Overrides page. You can leave this information as is or you can change it.
To set up transmitter information:
  1. Select
    SETUP
     then
    1042-S Control
    .
  2. Under the
    Transmitter Information
     collapsible section, enter your TCC in the
    Control Code
     field and your contact and other transmitter information in the remaining fields.
  3. Select
    Save
    .

Setting Up NQI Information

Reportable amounts received by a nonqualified intermediary (NQI) are reported on Form 1042-S. At the PAN level, use the
Nonqualified Intermediary (NQI) Information
 collapsible section on the 1042-S Control Information page to set up the information for one NQI. At the account level, this NQI information can be used or it can be overridden.
To set up NQI information at the PAN level:
  1. Select
    SETUP
     then
    1042-S Control
    .
  2. Under the
    Nonqualified Intermediary (NQI) Information
     collapsible section, enter your PAN-level NQI information.
  3. Select
    Save
    .

Setting Print and Copy Options

The 1042-S control print and copy options are used to suppress or print various information or Form 1042-S Copies. To set 1042-S control print and copy options:
  1. Select
    SETUP
     then
    1042-S Control
    .
  2. Under the
    Options
     collapsible section, select the check boxes that are appropriate to what you want to suppress or print.
    • Suppress print of K-1/tax letters in beneficiary folder for nonresident aliens
      -When selected, recipient copies of Schedule K-1 are not generated for NRA recipients for those accounts where Form 1042-S and Form 1041 processing applies.
    • Suppress reporting of foreign interest and dividends on Form 1042-S
      -When selected, foreign interest and dividends are not reported on Form 1042-S.
    • Print consolidated form for Copy E (Withholding Agent)
      -When selected, Form 1042-S Copy E (for the withholding agent) is printed in the consolidated format. In compliance with IRS requirements, only Copy E can be generated in the consolidated format.
    • Print consolidated form for tax return projections
      -When selected, 1042-S projections are printed in the consolidated format.
    • Suppress Copy A (IRS)
      -When selected, Copy A (for the IRS) is not generated. You may want to suppress Copy A because it is electronically filed with the IRS.
    • Suppress Copy C (Recipient)
      -When selected, Copy C (for the recipient) is not generated. You may want to suppress Copy C and provide recipients with only Copy B, which is also for the recipient.
    • Suppress Copy D (Recipient)
      -When selected, Copy D (for the recipient) is not generated. You may want to suppress Copy D and provide recipients with only Copy B, which is also for the recipient.
    • Suppress Copy E (Withholding Agent)
      -When selected, Copy E (for the withholding agent) is not generated.
  5. Select
    Save
    .

This article applies to:

  • PRODUCT: ONESOURCE Trust Tax