2001 Instructions for Form 1040NR - Uncle Fed's Tax*Board

• You were not engaged in a trade or backup withholding, specify the type of income treatment, you must attach a
business in the United States at any payment on line 79 and show the statement that identifies the distributing
time. amount in column (e). corporation and provides the basis for
• You had no income that was
Line 80. Enter the total amount of the claim.
effectively connected with the conduct U.S. tax withheld at source (and not If you are claiming an exemption
of a U.S. trade or business.
refunded by the payer or withholding from withholding on a distribution from
• Your U.S. income tax liability was agent) for the income you included on a mutual fund or real estate investment
fully satisfied through withholding of tax lines 70a through 79.
trust (REIT) with respect to its stock
at source.
Lines 81 Through 83. Complete
because the distribution was
• You are filing Form 1040NR solely to
these lines as instructed on the form.
designated as long-term capital gain or
claim a refund of U.S. tax withheld at
a return of capital, you must attach a
source. Page 5. You must answer all statement that identifies the mutual
Example. X is a nonresident alien questions that apply. For item M, you fund or REIT and provides the basis for
individual. The only U.S. source income must identify the income tax treaty and the claim.
he received during the year was treaty article(s) under which you are
applying for a refund of tax. Also, enter If you are claiming an exemption
dividend income from U.S. stocks. The
the type of income (for example, from withholding on a distribution from
dividend income was reported to him on
dividends, royalties) and amount in the a U.S. corporation with respect to its
Forms 1042-S. On one of the dividend
appropriate space. You must provide stock because, in your particular
payments, the withholding agent
the information required for each type circumstances, the transaction qualifies
incorrectly withheld at a rate of 30%
of income for which a treaty claim is as a redemption of stock under section
(instead of 15%). X is eligible to use the
made.
302, you must attach a statement that
simplified procedure.
describes the transaction and presents
If you meet all of the conditions
Note: If you are claiming a reduced the facts necessary to establish that the
listed earlier for the tax year, complete
rate of, or exemption from, tax based payment was (a) a complete
Form 1040NR as follows.
on a tax treaty, you must generally be a redemption, (b) a disproportional
resident of the particular treaty country
Page 1. Enter your name, U.S.
redemption, or (c) not essentially
within the meaning of the treaty and
taxpayer identification number (TIN),
equivalent to a dividend.
you cannot have a permanent
country of citizenship, and all address establishment or fixed base in the
When To File
information requested at the top of United States.
page 1. Leave the rest of page 1 blank.
Page 2, Lines 49 and 54. Enter your Individuals. If you were an employee
Page 4, Lines 70a Through 79. Enter total income tax liability.
and received wages subject to
the amounts of gross income you
withholding, file Form 1040NR by the
received from dividends, interest,
Lines 62a and 64. Enter the total 15th day of the 4th month after your tax
royalties, pensions, annuities, and other amount of U.S. tax withheld (from line year ends. A return for the 2001
income. If any income you received
80). calendar year is due by April 15, 2002.
was subject to backup withholding or Lines 65 and 66a. Enter the
If you did not receive wages as an
withholding at source, you must include difference between line 54 and line 64. employee subject to U.S. income tax
all gross income of that type that you This is your total refund.
withholding, file Form 1040NR by the
received. The amount of each type of Signature. You must sign and 15th day of the 6th month after your tax
income should be shown in the column date your tax return. See Reminders year ends. A return for the 2001
under the appropriate U.S. tax rate, if on page 25.
calendar year is due by June 17, 2002.
any, that applies to that type of income
in your particular circumstances.
Documentation. You must attach Estates and Trusts. If you file for a
acceptable proof of the withholding for nonresident alien estate or trust that
If you are entitled to a reduced rate which you are claiming a refund. If you has an office in the United States, file
of, or exemption from, withholding on are claiming a refund of backup the return by the 15th day of the 4th
the income pursuant to a tax treaty, the withholding tax based on your status as month after the tax year ends. If you file
applicable rate of U.S. tax is the same a nonresident alien, you must attach a for a nonresident alien estate or trust
as the treaty rate. Use column (e) if the copy of the Form 1099 that shows the that does not have an office in the
applicable tax rate is 0%.
income and the amount of backup United States, file the return by the 15th
Example. Y is a nonresident alien withholding. If you are claiming a refund day of the 6th month after the tax year
individual. The only U.S. source income of U.S. tax withheld at source, you must ends.
he received during the year was as attach a copy of the Form 1042-S that Note: If the regular due date for filing
follows:
shows the income and the amount of falls on a Saturday, Sunday, or legal
• 4 dividend payments
U.S. tax withheld.
holiday, file by the next business day.
• 12 interest payments
Additional Information
Extension of Time To File. If you
All payments were reported to Y on
cannot file your return by the due date,
Form(s) 1042-S. On one of the dividend Portfolio Interest. If you are claiming
you should file Form 4868. You must
payments, the withholding agent a refund of U.S. tax withheld from
file Form 4868 by the regular due date
incorrectly withheld at a rate of 30% portfolio interest, include a description
of the return.
(instead of 15%). There were no other of the relevant debt obligation, including
withholding discrepancies. Y must the name of the issuer, CUSIP number Note: Form 4868 does not extend the
report all four dividend payments. He is (if any), interest rate, and the date the time to pay your income tax. The tax is
not required to report any of the interest debt was issued.
due by the regular due date of the
payments.
return.
Withholding on Distributions. If you
Note: Payments of gross proceeds are claiming an exemption from
from the sale of securities or regulated withholding on a distribution from a U.S. Where To File
futures contracts are generally exempt corporation with respect to its stock File Form 1040NR with the Internal
from U.S. tax. If you received such because the corporation had insufficient Revenue Service Center, Philadelphia,
payments and they were subjected to earnings and profits to support ordinary PA 19255, U.S.A.
Instructions for Form 1040NR
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