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IRS.gov Website
Instructions for Form 1042-S
taxmap/instr2/i1042s-007.htm#en_us_publink64278ad0e1185

taxmap/instr2/i1042s-007.htm#TXMP5aae7780
Amounts That Are Not Subject to Reporting on Form 1042-S(p9)

rule
taxmap/instr2/i1042s-007.htm#en_us_publink64278ad0e1228
taxmap/instr2/i1042s-007.htm#TXMP3bfcaa1b
Interest and OID from short-term obligations.(p9)
rule
Interest and OID from any obligation payable 183 days or less from the date of original issue is generally not required to be reported on Form 1042-S. See, however, the reporting requirements for deposit interest described earlier in Interest on deposits paid to certain nonresident aliens under Amounts Subject to Reporting on Form 1042-S.
taxmap/instr2/i1042s-007.htm#en_us_publink64278ad0e1238
taxmap/instr2/i1042s-007.htm#TXMP3419ac63
Registered obligations targeted to foreign markets.(p9)
rule
Interest on a registered obligation that is targeted to foreign markets and that qualifies as portfolio interest is not subject to reporting if it is paid to a registered owner that is a financial institution or member of a clearing organization and you have received the required certifications.
caution
Reporting will be required on interest paid on any registered obligation (regardless of whether targeted to foreign markets) if the registered obligation is issued after December 31, 2015.
taxmap/instr2/i1042s-007.htm#en_us_publink64278ad0e1254
taxmap/instr2/i1042s-007.htm#TXMP00a080a2
Bearer obligations targeted to foreign markets.(p9)
rule
Do not file Form 1042-S to report interest not subject to withholding on bearer obligations if a Form W-8 is not required.
caution
Withholding is required on interest paid on any bearer obligations targeted to foreign markets if the obligation is issued after March 18, 2012. You must file Form 1042-S to report this interest paid on an obligation issued after that date.
taxmap/instr2/i1042s-007.htm#en_us_publink64278ad0e1268
taxmap/instr2/i1042s-007.htm#TXMP12adc356
Notional principal contract payments that are not ECI.(p9)
rule
Amounts paid on a notional principal contract other than a specified notional principal contract (SNPC) other than income that is not effectively connected with the conduct of a trade or business in the United States should not be reported on Form 1042-S. All amounts paid on an SNPC that are treated as dividend equivalent payments should be reported as such on Form 1042-S.
taxmap/instr2/i1042s-007.htm#en_us_publink64278ad0e1278
taxmap/instr2/i1042s-007.htm#TXMP37398956
Accrued interest and OID.(p9)
rule
Interest paid on obligations sold between interest payment dates and the part of the purchase price of an OID obligation that is sold or exchanged in a transaction other than a redemption is not subject to reporting unless the sale or exchange is part of a plan, the principal purpose of which is to avoid tax, and the withholding agent has actual knowledge or reason to know of such plan.
taxmap/instr2/i1042s-007.htm#en_us_publink10007044
taxmap/instr2/i1042s-007.htm#TXMP00db8aa8
Certain withholdable payments.(p9)
rule
Withholdable payments not subject to reporting for chapter 3 purposes (other than bank deposit interest paid to certain nonresident aliens) are not required to be reported if withholding is not applied (or required to be applied) under chapter 4.