SEC. 13. CORRECTED RETURNS

.01 Form 1042–S is required to be filed magnetically or electronically if 250 or more returns are filed. This requirement applies separately to both original and corrected returns.

.02 If Form 1042–S is filed magnetically or electronically, and later the filer determines that corrections are

necessary, the corrections may be filed on paper if the 250 correction document threshold has not been met.

.03 If the withholding agent has 250 or more corrections, they MUST be submitted to IRS/MCC magnetically or electronically unless a waiver has been granted. If a waiver was granted for original Form 1042–S, this waiver applies to the corrections as well.

.04 Corrected returns MUST NOT be included on the same media or sent in the same electronic transmission with original returns.

.05 Form 4804 and Form 4802 must be submitted with corrected magnetically/electronically submitted files.

.06 The record sequence for filing corrections is the same as for original returns.

.07 Review the chart that follows.

Each correction requires TWO

TRANSACTIONS.

Guidelines for Filing Corrected Re-

turns Magnetically/Electronically

TRANSACTION 1: Identify incorrect

returns

a. Prepare a new Form 4804/4802

that includes information related to

this file.

b. Mark ‘‘Correction’’ in Block 1 of

Form 4804.

c. Prepare a new file. Make a

separate ‘‘T’’ Record. The information

in the ‘‘T’’ Record will be exactly the

same as it was in the original

submission.

d. The Recipient ‘‘Q’’ Record must

contain exactly the same information

as submitted previously except insert a

‘‘V’’ in field position 371, Corrected

Return Indicator.

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.01 Magnetic or electronic reporting eliminates the need to submit paper Form 1042–S to IRS.

.02 Even though the threshold for filing Form 1042–S magnetically or electronically is 250 or more, IRS encourages transmitters to submit all returns magnetically or electronically.

.03 The address for filing paper Form 1042–S and Form 1042 is:

Internal Revenue Service Center Philadelphia, PA 19255

Do NOT send paper Form 1042–S or

Form 1042 to IRS/MCC.

.04 If the returns were filed magnetically or electronically with IRS/ MCC, do not send paper returns to Philadelphia. Duplicate filing may cause penalty notices to be generated.

e. Prepare a ‘‘W’’ Record.

TRANSACTION 2: Report the correct

information

a. Prepare a new file with the

correct information in all records.

b. Make a separate ‘‘T’’ Record for

each transmitter.

c. The ‘‘Q’’ Record must show the

correct information as well as a ‘‘C’’

in field position 371, Corrected Return

Indicator.

d. Prepare a ‘‘W’’ Record.

e. ‘‘V’’ and ‘‘C’’ Coded Corrected

returns submitted to IRS/MCC may be

on the same tape or diskette, but must

have separate ‘‘T’’ Records.

f. Check the ‘‘Correction Box’’ on

the Form 5064.

.08 See the 1995 ‘‘Instructions for

Form 1042–S’’ for information on

filing paper corrections.