Form 1042, Schedule Q (Form 1042), Form 1042-S, Form 1042-T, and Section 871(m) Transactions

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons	Form	Modified	Available
Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons	Form	Modified	Repair queued
Form Schedule Q (Form 1 Tax Liability of Qualified Derivatives Dealer (QDD)	Form and Instruction	New	Available
Form Schedule Q (Form 1 Tax Liability of Qualified Derivatives Dealer (QDD)	Form and Instruction	New	Repair queued
Form 1042-T Annual Summary and Transmittal of Forms 1042-S	Form and Instruction	Modified	Available
Form 1042-T Annual Summary and Transmittal of Forms 1042-S	Form and Instruction	Modified	Repair queued
Form 1042-S Foreign Person's U.S. Source Income Subject to Withholding	Form	Modified	Available
Form 1042-S Foreign Person's U.S. Source Income Subject to Withholding	Form	Modified	Repair queued
1545-0096 Supporting Statement.docx	Supporting Statement A	Uploaded 2022-11-22	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
39506	Annual Withholding Tax Return for U.S. Source Income of Foreign Persons	Instruction	Modified
39506	Annual Withholding Tax Return for U.S. Source Income of Foreign Persons	Form	Modified	Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
39506	Annual Withholding Tax Return for U.S. Source Income of Foreign Persons	Form	Modified
257078	Tax Liability of Qualified Derivatives Dealer (QDD)	Form and Instruction	New	Tax Liability of Qualified Derivatives Dealer (QDD)
257078	Tax Liability of Qualified Derivatives Dealer (QDD)	Form and Instruction	New
217930	Section 871(m) Transactions		Modified
185426	Annual Summary and Transmittal of Forms 1042-S	Form and Instruction	Modified	Annual Summary and Transmittal of Forms 1042-S
185426	Annual Summary and Transmittal of Forms 1042-S	Form and Instruction	Modified
185425	Foreign Person's U.S. Source Income Subject to Withholding	Instruction	Modified
185425	Foreign Person's U.S. Source Income Subject to Withholding	Form	Modified	Foreign Person's U.S. Source Income Subject to Withholding
185425	Foreign Person's U.S. Source Income Subject to Withholding	Form	Modified

ICR Details

OMB Control No: 1545-0096	ICR Reference No: 202211-1545-008
Status: Historical Active	Previous ICR Reference No: 202011-1545-016
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Form 1042, Schedule Q (Form 1042), Form 1042-S, Form 1042-T, and Section 871(m) Transactions
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 02/13/2023
Retrieve Notice of Action (NOA)	Date Received in OIRA: 11/30/2022
Terms of Clearance: OMB understands that the IRS is currently in the process of revising the methodology it uses to estimate burden and costs. OMB expects that future ICRs under this OMB control number will include dollar estimates of annual burden costs to taxpayers calculated using this revised methodology.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	02/28/2026	36 Months From Approved	02/28/2023
Responses	8,558,200	0	3,617,200
Time Burden (Hours)	6,704,249	0	2,949,074
Cost Burden (Dollars)	0	0	0

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Abstract: Internal Revenue Code (IRC) sections 871, 877A, 1441, 1442, 1445, 1446, 1471, 1472, 5000C, and 6049 require withholding agents to deduct and withhold specified amounts of income paid to certain expatriates, nonresident aliens, foreign persons, foreign partnerships, and foreign corporations for tax liabilities under IRC Subtitle A. IRC sections 1461 and 1474, and their associated regulations, make these withholding agents liable for such tax and require reporting of taxes and payments to the IRS. Treasury Regulations section 1.871-15(p) was added by Treasury Decision (TD) 9734, as amended by TD 9815, as amended by TD 9887. This regulation provides that any party to an IRC section 871(m) transaction may request information regarding that transaction from another party to the transaction. There is no prescribed form required. Any statement required by section 1.871-15(p) may be provided in paper or electronic form. The regulation allows taxpayers to share information in any reasonable manner agreed to by the parties. See 1.871-15(p)(3)(i). Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, is used by withholding agents to report tax amounts withheld from payments to certain expatriates, nonresident aliens, foreign persons, foreign partnerships, and foreign corporations to the IRS. Schedule Q (Form 1042), Tax Liability of Qualified Derivatives Dealer (QDD), is used by a taxpayer, or any branch of the taxpayer, that was a QDD to report tax liabilities as required by Treasury Regulations section 1.441-1(e)(6)(i)(D)(3). Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is an information return used by the withholding agent to report certain income and amounts withheld to the payee and the IRS. Form 1042-T, Annual Summary and Transmittal of Forms 1042-S, is used by the withholding agent to transmit paper Forms 1042-S to the IRS.

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Authorizing Statute(s): US Code: 26 USC 1442 Name of Law: Withholding of tax on foreign corporations
   US Code: 26 USC 1461 Name of Law: Liability for withheld tax
   US Code: 26 USC 877A Name of Law: Tax Responsibilities Of Expatriation
   US Code: 26 USC 871 Name of Law: Tax on nonresident alien individuals
   US Code: 26 USC 1445 Name of Law: Withholding Of Tax On Dispositions Of United States Real Property Interests
   US Code: 26 USC 1446 Name of Law: Withholding Of Tax On Foreign Partners' Share Of Effectively Connected Income
   US Code: 26 USC 1471 Name of Law: Withholdable Payments To Foreign Financial Institutions
   US Code: 26 USC 1472 Name of Law: Withholdable Payments To Other Foreign Entities
   US Code: 26 USC 1474 Name of Law: Special Rules
   US Code: 26 USC 5000C Name of Law: Imposition Of Tax On Certain Foreign Procurement
   US Code: 26 USC 6049 Name of Law: Returns Regarding Payments Of Interest
   US Code: 26 USC 1441 Name of Law: Withholding of tax on nonresident aliens
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 53048	08/30/2022
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 72590	11/25/2022
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 5

table that charts list of burden

IC Title	Form No.	Form Name
Annual Summary and Transmittal of Forms 1042-S	1042-T	Annual Summary and Transmittal of Forms 1042-S
Annual Withholding Tax Return for U.S. Source Income of Foreign Persons	1042	Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Foreign Person's U.S. Source Income Subject to Withholding	1042-S	Foreign Person's U.S. Source Income Subject to Withholding
Section 871(m) Transactions
Tax Liability of Qualified Derivatives Dealer (QDD)	Schedule Q (Form 1042)	Tax Liability of Qualified Derivatives Dealer (QDD)

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ICR Summary of Burden

table that charts list of burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	8,558,200	3,617,200	0	2,100	4,938,900	0
Annual Time Burden (Hours)	6,704,249	2,949,074	0	1,735	3,753,440	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Schedule Q (Form 1042) was developed to replace the previous requirement to attach a statement to the Form 1042 providing information regarding a QDD's tax liability. The burden associated with TD 9884, previously approved under OMB control number 1545-1725, was incorporated into Form 1042-S and its instructions. This increases the burden by 2,100 responses and 1,735 hours due to Agency Discretion. The burden for Form 1042 was recalculated to provide better estimates. The number of respondents and responses were also updated to reflect current filing data. This increases the burden by 4,938,900 responses and 3,753,440 hours due to Agency Estimates.

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Annual Cost to Federal Government: $399,333

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 11/30/2022

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