[Federal Register Volume 84, Number 149 (Friday, August 2, 2019)]
[Notices]
[Pages 37952-37953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16464]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Dividend Equivalents 
From Sources Within the United States (TD 9734), Forms 1042, 1042-S, 
and 1042-T

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: The Internal Revenue Service, as part of its continuing effort 
to reduce paperwork and respondent burden, invites the general public 
and other Federal agencies to take this opportunity to comment on 
proposed and/or continuing information collections, as required by the 
Paperwork Reduction Act of 1995. Currently, the IRS is soliciting 
comments concerning dividend equivalents from sources within the

[[Page 37953]]

United States, Form 1042, Annual Withholding Tax Return for U.S. Source 
Income of Foreign Persons, Form 1042-S, Foreign Person's U.S. Source 
Income Subject to Withholding, and Form 1042-T, Annual Summary and 
Transmittal of Forms 1042-S.

DATES: Written comments should be received on or before October 1, 2019 
to be assured of consideration.

ADDRESSES: Direct all written comments to Laurie Brimmer, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 
20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the form and instructions should be directed to LaNita Van 
Dyke, at (202) 317-6009, Internal Revenue Service, Room 6526, 1111 
Constitution Avenue NW, Washington, DC 20224, or through the internet 
at [email protected].

SUPPLEMENTARY INFORMATION: 
    Title: TD 9374 (Final)/Dividend Equivalents from Sources within the 
United States, Form 1042, Annual Withholding Tax Return for U.S. Source 
Income of Foreign Persons, Form 1042-S, Foreign Person's U.S. Source 
Income Subject to Withholding, and Form 1042-T, Annual Summary and 
Transmittal of Forms 1042-T.
    OMB Number: 1545-0096.
    Form Numbers: 1042, 1042-S, and 1042-T.
    Abstract: The regulations pertain to section 871(m) regarding 
dividend equivalent payments that are treated as U.S. source income. 
These regulations provide guidance regarding when payments made 
pursuant to certain financial instruments will be treated as U.S.-
source income and subject to U.S. withholding tax. The information 
provided is necessary to permit withholding agents to determine whether 
U.S. withholding tax is due with respect to a payment of a dividend 
equivalent and the amount of the tax. The information will also be used 
for audit and examination purposes. Form 1042 is used by withholding 
agents to report tax withheld at source on payment of certain income 
paid to nonresident alien individuals, foreign partnerships, or foreign 
corporations. The IRS uses this information to verify that the correct 
amount of tax has been withheld and paid to the United States. Form 
1042-S is used to report certain income and tax withheld information to 
nonresident alien payees and beneficial owners. Form 1042-T is used by 
withholding agents to transmit Forms 1042-S to the IRS.
    Current Actions: There are changes to the burden previously 
approved by OMB. There are no changes to the collection however the 
estimates are being updated to eliminate double counting associated 
with the business collection.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Business or other for profit organizations and 
individuals or households.
    The burden estimate is as follows:

 
----------------------------------------------------------------------------------------------------------------
                                                                     Number of       Time per      Total annual
                                                                     responses       response      burden hours
----------------------------------------------------------------------------------------------------------------
Form 1042.......................................................           3,640           18.05          65,702
Form 1042-S.....................................................         352,530             .58         204,467
Form 1042-T.....................................................           1,950              .2             390
TD 9374.........................................................           3,000               8          24,000
                                                                 -----------------------------------------------
    Total.......................................................         361,120  ..............         294,559
----------------------------------------------------------------------------------------------------------------

    The following paragraph applies to all of the collections of 
information covered by this notice:
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid OMB control number. Books or records 
relating to a collection of information must be retained as long as 
their contents may become material in the administration of any 
internal revenue law. Generally, tax returns and tax return information 
are confidential, as required by 26 U.S.C. 6103.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for OMB approval. All 
comments will become a matter of public record. Comments are invited 
on: (a) Whether the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information shall have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology; and (e) 
estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Approved: July 29, 2019.
Laurie Brimmer,
Senior Tax Analyst.
[FR Doc. 2019-16464 Filed 8-1-19; 8:45 am]
 BILLING CODE 4830-01-P