Section 3—Potential Section 871(m) Transactions

Check the box if you are a withholding agent that makes any payment under a potential section 871(m) transaction during the year, including a notional principal contract or other derivative contract that references, in whole or in part, a U.S. stock or underlying security. See Regulations section 1.871-15(a)(12) for the definition of a potential section 871(m) transaction and Regulations section 1.871-15(i) for the meaning of certain payments with respect to a section 871(m) transaction.

• Code 15 (payee not subject to chapter 4 withholding).

• Code 17 (foreign entity that assumes primary withholding responsibility).

• Code 18 (U.S. payees of participating FFI or registered deemed-compliant FFI).

• Code 19 (exempt from withholding under IGA).

• Code 20 (dormant account).

12 Instructions for Form 1042 (2025)