2032 Contract Coverage Under Title II of the Social Security

Form

2032

(Rev. November 2024)
Department of the Treasury
Internal Revenue Service

Contract Coverage Under Title II
of the Social Security Act

For use by an American employer to extend social security coverage to
U.S. citizens and resident aliens employed by its foreign affiliates.
Go to www.irs.gov/Form2032 for the latest information.

OMB No. 1545-0029

File three copies
of this form

Name of American employer

Employer identification number

Address number and street (P.O. box if no mail delivery to street address)

Apt. or suite no.

City, state, and ZIP code

This Form 2032 is filed as (check applicable box(es)):
1
An original (new) agreement.
This agreement is effective for services performed on and after (for original agreements only, check one):
The first day of the calendar quarter in which the submission processing field director signs this agreement.
a
b
The first day of the calendar quarter following the calendar quarter in which the submission processing field director signs
this agreement.
2
An amendment to an agreement previously entered into.
3
An election to apply the rules in effect after April 20, 1983, to agreements in effect on that date. By making this election, U.S.
resident aliens as well as U.S. citizens will be covered by social security.
If this is an amended election or agreement, provide the following information:
on
(Location where previous Form 2032 was filed)

4

(Date submission processing field director signed original agreement on Form 2032)

This agreement extends the federal insurance system under Title II of the Social Security Act to certain services performed outside
the United States by U.S. citizens and resident aliens employed by any of the foreign affiliates listed below. If you checked the box
on line 2 and did not check the box on line 3 above, this amendment extends Title II social security coverage to certain services
performed outside the United States by U.S. citizens employed by any of the foreign affiliates listed below.
Note. Enter foreign affiliate addresses below in the following order: city, province or state, and country. Do not abbreviate the
country name, and follow the country’s practice for entering the postal code. If this agreement includes more than four foreign
affiliates, attach a separate sheet of paper identified as part of this agreement with the name and address of each additional
foreign affiliate.

a

Name and address of foreign affiliate

c Name and address of foreign affiliate

b

Name and address of foreign affiliate

d Name and address of foreign affiliate

5

Estimated number of employees to be initially covered by this agreement, amendment, or election:
Nonagricultural employees
Agricultural employees

This agreement applies to all services performed outside the United States by each U.S. citizen or resident alien employed by any of the foreign
affiliates named above. However, the agreement applies only to the extent that payments to each employee for the services would be considered
wages if paid by the employer for services performed in the United States. This agreement does not apply to any service that is considered
employment for purposes of the employee tax and the employer tax under the Federal Insurance Contributions Act.
For an original agreement, an amendment to an agreement that was entered into after April 20, 1983, or an election to apply the rules in effect after
April 20, 1983, to agreements in effect on that date, the American employer declares that it owns at least a 10% interest (directly or through one or
more entities) in the voting stock or profits of each foreign entity named above. It also declares that section 3121(l) does not prevent this agreement.
For an amendment to an agreement in effect on April 20, 1983, without making the election to apply the new rules in effect after that date, the
domestic corporation declares that (a) it owns at least 20% of the voting stock of each foreign corporation named above, or (b) it owns at least 20% of
the voting stock of a foreign corporation that owns more than 50% of the voting stock of each foreign corporation named above. It also declares that
section 3121(l) does not prevent this agreement.
The American employer agrees:
1. To pay amounts equal to the taxes that would be imposed by sections 3101 and 3111 if the payment for the services was considered wages;
2. To pay, on written notification and demand, amounts equal to the interest, additions to taxes, and penalties that would apply if the payment for the
services were considered wages; and
3. To comply with the applicable regulations under section 3121(l).
This agreement (or amended agreement or election) is entered into under the provisions of section 3121(l) of the Internal Revenue Code and the
applicable regulations.
Signature of individual authorized to enter into this
agreement for the American employer

Title

Date

Field Director, Submission Processing

Location

Date

For Privacy Act and Paperwork Reduction Act Notice, see back of form.

Cat. No. 49954D

Form 2032 (Rev. 11-2024)

Page 2

Form 2032 (Rev. 11-2024)

General Instructions
Section references are to the Internal Revenue
Code.
Before April 21, 1983, only domestic
corporations could enter into this agreement
to cover only U.S. citizens employed by
foreign subsidiaries. For this agreement, a
foreign subsidiary was defined as a foreign
corporation in which:
• at least 20% of the voting stock was owned
by the domestic corporation, or
• more than 50% of the voting stock was
owned by another foreign corporation in
which the domestic corporation owned at
least 20% of the voting stock.
After April 20, 1983, any American employer
(no longer limited to a domestic corporation)
can enter into this agreement to cover U.S.
resident aliens as well as U.S. citizens
employed by a foreign affiliate. For this
agreement, a foreign affiliate is any foreign
entity (no longer limited to a foreign
corporation) in which the American employer
owns at least a 10% interest in the voting
stock or profits. This interest must be owned
directly or through one or more entities.
A domestic corporation having an
agreement in effect that was entered into
before April 21, 1983, can elect to apply the
post-April 20,1983, rules to such agreements.
If a domestic corporation makes this election,
social security coverage will be extended to
U.S. resident alien employees of any foreign
subsidiary for which U.S. citizens are currently
covered by an existing agreement. In addition,
the election allows a domestic corporation to
extend social security and Medicare coverage
to U.S. citizens and resident aliens employed
by a foreign entity that did not qualify for
coverage under the old 20% ownership rules,
but that now qualifies under the 10%
ownership rules.
Note. The United States has social security
(totalization) agreements with specific
countries. These agreements ensure that
social security taxes are paid to only one
country. However, these agreements may
affect the withholding requirements resulting
from filing Form 2032. For more information,
see Social Security and Medicare Taxes in
Pub. 54, Tax Guide for U.S. Citizens and
Resident Aliens Abroad.

Purpose of Form
An American employer uses this form to:
• Enter into the agreement specified in
section 3121(l) to extend coverage under Title
II of the Social Security Act to U.S. citizens
and resident aliens abroad by foreign
affiliates,
• Amend a previous agreement, or
• Elect to apply the rules in effect after April
20, 1983, to agreements in effect on that date.
For this agreement, an American employer
is an employer that is:
• The United States or any instrumentality
thereof,
• An individual who is a resident of the United
States,

• A partnership if two-thirds or more of the
partners are residents of the United States,
• A trust if all the trustees are residents of the
United States, or
• A corporation organized under the laws of
the United States or of any state.
Send three copies of this form to:
Internal Revenue Service
Ogden, UT 84201-0023
Enter on Form 2032 the employer
identification number as shown on your
employment tax return. This will help the IRS
process your form faster.

If you make this election, it will be effective
for all foreign entities covered by the
agreement. By making the election, U.S.
resident alien employees as well as U.S.
citizen employees will be covered by the
agreement.
To extend coverage to any foreign affiliate
not covered by an agreement, indicate the
name and address of the foreign affiliate on
line 4 and check the box on line 2 for the
amended agreement, and the box on line 3 for
the election.
Effective date. Generally, the election will
be effective on the day following the quarter in
which the election is signed by the field
director.

Completing Form 2032

No Termination of Agreement

Complete Form 2032 in triplicate. Each copy
of the form must be signed and dated by the
individual authorized to enter into the
agreement, amendment, or election. Attach to
each form evidence showing the authority for
such individual to sign the form. For example,
corporations must include a certified copy of
the minutes of the board of directors’
meeting.
After the director signs and dates the form,
it constitutes the agreement, amendment, or
election authorized by section 3121(l). The
IRS will return one copy of Form 2032 to the
American employer, send one copy to the
Social Security Administration, and keep one
copy with all related papers.
Original agreements. Check the box on line
1. Also check the applicable box on line 1a or
1b to designate when the agreement will take
effect.
Amending agreements. You may amend an
agreement at any time to extend coverage to
any foreign affiliate not covered by an existing
agreement. File Form 2032 in triplicate, and
check the box on line 2. If you amend an
agreement entered into on or before April 20,
1983, without making the election to apply the
rules in effect after that date, the agreement
and amendments will continue to be governed
by the rules in effect before April 21, 1983.
Effective date. If you file an amendment to
an agreement on Form 2032 to include
foreign affiliates not previously covered, and if
the field director signs the amendment during
the quarter for which the original agreement is
first effective or during the first month
following that quarter, the amendment will be
effective as of the effective date of the original
agreement. But if the amendment is signed by
the field director after the end of the fourth
month for which the original agreement is in
effect, the amendment won’t be effective until
the first day of the quarter following the one in
which the field director signed the
amendment.
Election to apply post-April 20, 1983, rules.
A domestic corporation having an agreement
in effect that was entered into before April 21,
1983 (old agreement), may elect to have the
rules in effect after April 20, 1983, apply to the
old agreement. File Form 2032 in triplicate,
and check the box on line 3.

Once you enter into an agreement, you
cannot terminate it, either in its entirety or
with respect to any foreign affiliate. However,
the agreement will terminate for a foreign
entity at the end of any quarter in which the
foreign entity, at any time in that quarter,
ceased to be your foreign affiliate.

Where To File

Privacy Act and Paperwork Reduction Act
Notice. We ask for the information on this
form to carry out the Internal Revenue laws of
the United States. We need it to figure and
collect the right amount of tax. Section 6109
requires you to provide your taxpayer
identification number (SSN or EIN). Section
3121 of the Internal Revenue Code allows
employees of foreign affiliates to be covered
under social security. Routine uses of this
information include giving it to the Social
Security Administration for use in calculating
social security benefits, the Department of
Justice for civil and criminal litigation, and
cities, states, and the District of Columbia for
use in administering their tax laws. We may
also disclose this information to federal and
state agencies to enforce federal nontax
criminal laws and to combat terrorism. We
may also give the information to foreign
countries under tax treaties. If you want this
coverage, you are required to give us this
information. If you fail to provide this
information in a timely manner, or you provide
incorrect or fraudulent information, you may
be denied this coverage and you may be
liable for penalties and interest.
You’re not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB control
number. Books or records relating to a form
or its instructions must be retained as long as
their contents may become material in the
administration of any Internal Revenue law.
Generally, tax returns and return information
are confidential, as required by section 6103.
The time needed to complete and file Form
2032 will vary depending on individual
circumstances. The estimated burden for
employers filing Form 2032 is approved under
OMB control number 1545-0029 and is
included in the estimates shown in the
Instructions for your employment tax return.