Hi @Kartik,

May be ask the customer to put more focus on the below, however I recommend more detailed explanation might be better with screenshots for the customer. 

Checklist for 1042-S Reporting – Non-U.S. Supplier Setup in IFS

 1. Supplier Master Data Configuration

• Supplier Identity: Create a new supplier record in IFS.
• Country: Assign the supplier to a non-U.S. country.
• Tax Identification: Enter the supplier's tax ID number (TIN) in the Supplier/Address/Document Tax Information tab.

2. Supplier Income Tax Information

• Tax Reporting: Navigate to Tax Withholding/Reporting and specify whether the supplier is subject to tax reporting only or to both tax withholding and reporting.
• Tax Exemption: If the supplier is exempt from tax withholding, select the Tax Exempt checkbox and enter the exemption period.
• Supplier Income Type: Define the income type for the supplier, which categorizes the payments for tax reporting and withholding purposes.

3. Supplier Delivery Tax Information

• Tax Codes: Specify the tax calculation structure or tax codes for the supplier's delivery address.
• Tax Liability : Enter the appropriate tax liability code that indicates the nature of the supplier's tax liability.
• Exemption: If applicable, enter tax-free tax codes for exempt transactions.

4. Supplier Invoice Information

• Default Tax Information: Enter default tax information for the supplier, including tax codes and tax liability.
• Payment Terms : Specify the default payment terms for the supplier.
• Currency: Set the default currency used for transactions with the supplier.

5. Supplier Income Type Configuration

• Income Type ID: Create a new supplier income type that corresponds to the nature of the payment.
• Income Type Description: Provide a description that clearly defines the income type.
• Tax Reporting: Ensure the income type is linked to the appropriate tax reporting requirements.

IRS Form 1042-S Reporting Considerations

• Income Codes: Assign the correct income code based on the type of payment (e.g., royalties, interest).
• Exemption Codes: Use exemption codes where applicable, such as "03" for foreign-source income.
• Withholding Agent Information: Ensure that the withholding agent's information is accurately reflected on the form.

I’m unclear on the response to this previous question posted and need additional guidance. I’m also trying to set up a supplier for 1042-S reporting and need clarification on the process.

Specifically:

• Do I need to create a new Report Code associated with the supplier’s country (India in this case)?

• For example, I see that Report Codes like 4, 4A, 16A, and 16B each map to specific boxes on the 1099 report.

• Should I create a new Report Code such as “7A” for India (IN), or is this unnecessary?

• 

If I do need to create a new Report Code:

• Will it properly capture the necessary information for year-end 1042-S reporting?

• Will it be included when I run the operational report currently used for 1099 reporting?

• Or is there a different operational report used specifically for 1042-S reporting?

Also, when I update a supplier’s Tax Withholding/Reporting information, I notice the 1099 reporting field on that screen. Is that same screen used to update 1042-S information as well? And if so, do I then just submit a separate form for 1042-S reporting instead of the standard 1099?

Appreciate your help clarifying this process.