Purpose of Form — Instruction 1042 — Instructions for Form

Use Form 1042 to report the following.

The tax withheld under chapter 3 (excluding withholding under sections 1445 and 1446 except as indicated below) on certain income of foreign persons, including nonresident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts.
The tax withheld under chapter 4 on withholdable payments. For the withholding requirements of chapter 4, see Regulations sections 1.1471-2(a), 1.1471-4(b), and 1.1472-1(a).
The tax withheld pursuant to section 5000C on specified federal procurement payments.
The tax withheld under section 877A on payments of eligible deferred compensation items or distributions from nongrantor trusts to a covered expatriate.
Payments that are reported on Form 1042-S under chapter 3 or 4. See Regulations section 1.1474-1(d) (2)(i) for the definition of a chapter 4 reportable amount (which are amounts required to be reported on Form 1042-S for chapter 4 purposes) and Regulations section 1.1461-1(c)(2) for amounts subject to reporting for chapter 3 purposes.

Certain distributions subject to section 1445 with- holding tax. Publicly traded trusts, real estate investment trusts (REITs), and regulated investment companies that are qualified investment entities (as defined under section 897(h)(4)) must withhold section 1445 tax on certain distributions and report such amounts on Form 1042. For more information, see Regulations section 1.1445-8 and the Instructions for Form 1042-S .

Publicly traded partnerships (section 1446 withhold- ing tax). For purposes of reporting on Form 1042, a

publicly traded partnership (PTP) must withhold section 1446(a) tax on distributions of effectively connected taxable income (ECTI) or amounts realized on distributions for section 1446(f) purposes made to its foreign partners. A nominee that receives a distribution of ECTI from a PTP and is treated as the withholding agent for section 1446 purposes must use Form 1042 to report the tax withheld. For purposes of section 1446(f), starting for the 2023 year, a broker is generally required to withhold on an amount realized from the sale of a PTP interest that it effects for a foreign person that is the transferor of the interest. Absent an applicable exception to the withholding, a broker is required to withhold at a 10% rate on the amount realized and report the amount realized and withholding on Forms 1042 and 1042-S. See Regulations sections 1.1461-1(c)(2)(i)(Q) and (R) for further information on this reporting. A broker is also required to withhold under section 1446(f) on an amount realized on a PTP distribution. For this purpose, a nominee is a person that holds an interest in the PTP on behalf of one or more foreign partners and that is a domestic person, a qualified intermediary (QI) that assumes primary responsibility for the distribution, or a U.S. branch of a foreign person that agrees to be treated as a U.S. person. For more information, see Regulations sections 1.1446-4 and 1.1446(f)-4; the QI agreement in Rev. Proc. 2022-43, 2022-52 I.R.B. 570, available at IRS.gov/irb/2022-52_IRB#REV-PROC-2022-43 ; and Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities .