 | The form you are looking for begins on the next page of this file. Before viewing it, please see the important update information below. Revised Mailing Address The filing address for Form 2032 no longer varies based on where the employer files Form 941 or if an employer files electronically. All Forms 2032 must be sent to: Department of the Treasury Internal Revenue Service Ogden, UT 84201-0023 |
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Contract Coverage Under Title II OMB No. 1545-0137
Form 2032
of the Social Security Act
(Rev. November 2010) File three copies
Department of the Treasury For use by an American employer to extend social security coverage to
Internal Revenue Service U.S. citizens and resident aliens employed by its foreign affiliates. of this form
Name of American employer Employer identification number
Address number and street (P.O. Box if no mail delivery to street address) Apt. or suite no.
City, state, and ZIP code
This Form 2032 is filed as (check applicable box(es)):
1 An original (new) agreement.
This agreement is effective for services performed on and after (for original agreements only, check one):
a The first day of the calendar quarter in which the submission processing field director signs this agreement.
b The first day of the calendar quarter following the calendar quarter in which the submission processing field director signs
this agreement.
2 An amendment to an agreement previously entered into.
3 An election to apply the rules in effect after April 20, 1983, to agreements in effect on that date. By making this election, U.S.
resident aliens as well as U.S. citizens will be covered by social security.
If this is an amended election or agreement, provide the following information:
on
(Location where previous Form 2032 was filed) (Date submission processing field director signed original agreement on Form 2032)
4 This agreement extends the federal insurance system under Title II of the Social Security Act to certain services performed outside
the United States by U.S. citizens and resident aliens employed by any of the foreign affiliates listed below. If you checked the box on
line 2 and did not check the box on line 3 above, this amendment extends Title II social security coverage to certain services
performed outside the United States by U.S. citizens employed by any of the foreign affiliates listed below.
Note. Enter foreign affiliate addresses below in the following order: city, province or state, and country. Do not abbreviate the country name,
and follow the country’s practice for entering the postal code. If this agreement includes more than four foreign affiliates, attach a separate
sheet of paper identified as part of this agreement with the name and address of each additional foreign affiliate.
a Name and address of foreign affiliate c Name and address of foreign affiliate
b Name and address of foreign affiliate d Name and address of foreign affiliate
5 Estimated number of employees to be initially covered by this agreement, amendment, or election:
Nonagricultural employees ▶ Agricultural employees ▶
This agreement applies to all services performed outside the United States by each U.S. citizen or resident alien employed by any of the foreign
affiliates named above. However, the agreement applies only to the extent that payments to each employee for the services would be considered
wages if paid by the employer for services performed in the United States. This agreement does not apply to any service that is considered
employment for purposes of the employee tax and the employer tax under the Federal Insurance Contributions Act.
For an original agreement, an amendment to an agreement that was entered into after April 20, 1983, or an election to apply the rules in effect after
April 20, 1983, to agreements in effect on that date, the American employer declares that it owns at least a 10% interest (directly or through one or
more entities) in the voting stock or profits of each foreign entity named above. It also declares that section 3121(l) does not prevent this agreement.
For an amendment to an agreement in effect on April 20, 1983, without making the election to apply the new rules in effect after that date, the
domestic corporation declares that (a) it owns at least 20% of the voting stock of each foreign corporation named above, or (b) it owns at least 20% of
the voting stock of a foreign corporation that owns more than 50% of the voting stock of each foreign corporation named above. It also declares that
section 3121(l) does not prevent this agreement.
The American employer agrees:
1. To pay amounts equal to the taxes that would be imposed by sections 3101 and 3111 if the payment for the services was considered wages;
2. To pay, on written notification and demand, amounts equal to the interest, additions to taxes, and penalties that would apply if the payment for the
services were considered wages; and
3. To comply with the applicable regulations under section 3121(l).
This agreement (or amended agreement or election) is entered into under the provisions of section 3121(l) of the Internal Revenue Code and the
applicable regulations.
Signature of individual authorized to enter into this Title Date
agreement for the American employer
Field Director, Submission Processing Location Date
For Privacy Act and Paperwork Reduction Act Notice, see back of form. Cat. No. 49954D Form 2032 (Rev. 11-2010)
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Form 2032 (Rev. 11-2010) Page 2
General Instructions Where To File To extend coverage to any foreign affiliate not
covered by an agreement, indicate the name and
Section references are to the Internal Revenue Send three copies of this form to: address of the foreign affiliate on line 4 and
Code. Internal Revenue Service check the box on line 2 for the amended
Before April 21, 1983, only domestic Ogden, UT 84201-0023 agreement, and the box on line 3 for the
corporations could enter into this agreement to An American employer already filing Form 941, election.
cover only U.S. citizens employed by foreign Employer’s Quarterly Federal Tax Return, should Effective date. Generally, the election will be
subsidiaries. For this agreement, a foreign file Form 2032 with the Internal Revenue Service effective on the day following the quarter in
subsidiary was defined as a foreign corporation where the employer files Form 941 (generally which the election is signed by the field director.
in which: their principal place of business). For electronic
• at least 20% of the voting stock was owned by Form 941 filers, send Form 2032 to Internal
the domestic corporation, or Revenue Service, Cincinnati, OH 45999-0038. No Termination of Agreement
Enter on Form 2032 the employer identification Once you enter into an agreement, you cannot
• more than 50% of the voting stock was owned number (EIN) as shown on Form 941. This will terminate it, either in its entirety or with respect
by another foreign corporation in which the help the IRS process your form faster. to any foreign affiliate. However, the agreement
domestic corporation owned at least 20% of the will terminate for a foreign entity at the end of
voting stock. any quarter in which the foreign entity, at any
Completing Form 2032
After April 20, 1983, any American employer time in that quarter, ceased to be your foreign
(no longer limited to a domestic corporation) can Complete Form 2032 in triplicate. Each copy of affiliate.
enter into this agreement to cover U.S. resident the form must be signed and dated by the
aliens as well as U.S. citizens employed by a individual authorized to enter into the agreement,
foreign affiliate. For this agreement, a foreign amendment, or election. Attach to each form Privacy Act and Paperwork Reduction Act
affiliate is any foreign entity (no longer limited to evidence showing the authority for such Notice. We ask for the information on this form
a foreign corporation) in which the American individual to sign the form. For example, to carry out the Internal Revenue laws of the
employer owns at least a 10% interest in the corporations must include a certified copy of the United States. We need it to figure and collect
voting stock or profits. This interest must be minutes of the board of directors’ meeting. the right amount of tax. Section 6109 requires
you to provide your taxpayer identification
owned directly or through one or more entities. After the director signs and dates the form, it number (SSN or EIN). Section 3121 of the
A domestic corporation having an agreement constitutes the agreement, amendment, or Internal Revenue Code allows employees of
in effect that was entered into before April 21, election authorized by section 3121(l). The IRS foreign affiliates to be covered under social
1983, can elect to apply the post-April 20,1983 will return one copy of Form 2032 to the security. Routine uses of this information include
rules to such agreements. If a domestic American employer, send one copy to the Social giving it to the Social Security Administration for
corporation makes this election, social security Security Administration, and keep one copy with use in calculating social security benefits, the
coverage will be extended to U.S. resident alien all related papers. Department of Justice for civil and criminal
employees of any foreign subsidiary for which Original agreements. Check the box on line 1. litigation, and cities, states, and the District of
U.S. citizens are currently covered by an existing Also check the applicable box on line 1a or b to Columbia for use in administering their tax laws.
agreement. In addition, the election allows a designate when the agreement will take effect. We may also disclose this information to federal
domestic corporation to extend social security Amending agreements. You may amend an and state agencies to enforce federal nontax
and Medicare coverage to U.S. citizens and agreement at any time to extend coverage to criminal laws and to combat terrorism. We may
resident aliens employed by a foreign entity that any foreign affiliate not covered by an existing also give the information to foreign countries
did not qualify for coverage under the old 20% agreement. File Form 2032 in triplicate, and under tax treaties. If you want this coverage, you
ownership rules, but that now qualifies under the check the box on line 2. If you amend an are required to give us this information. If you fail
10% ownership rules. agreement entered into on or before April 20, to provide this information in a timely manner, or
Note. The United States has social security 1983, without making the election to apply the you provide incorrect or fraudulent information,
(totalization) agreements with specific countries. rules in effect after that date, the agreement and you may be denied this coverage and you may
These agreements ensure that social security amendments will continue to be governed by the be liable for penalties and interest.
taxes are paid to only one country. However, rules in effect before April 21, 1983. You are not required to provide the
these agreements may affect the withholding Effective date. If you file an amendment to an information requested on a form that is subject
requirements resulting from filing Form 2032. For agreement on Form 2032 to include foreign to the Paperwork Reduction Act unless the form
more information, see Social Security and affiliates not previously covered, and if the field displays a valid OMB control number. Books or
Medicare Taxes in Pub. 54, Tax Guide for U.S. director signs the amendment during the quarter records relating to a form or its instructions must
Citizens and Resident Aliens Abroad. for which the original agreement is first effective be retained as long as their contents may
Purpose of form. An American employer uses or during the first month following that quarter, become material in the administration of any
this form to: the amendment will be effective as of the Internal Revenue law. Generally, tax returns and
• Enter into the agreement specified in 3121(l) to effective date of the original agreement. But if return information are confidential, as required
extend coverage under Title II of the Social the amendment is signed by the field director by section 6103.
Security Act to U.S. citizens and resident aliens after the end of the 4th month for which the The time needed to complete and file this form
abroad by foreign affiliates, original agreement is in effect, the amendment will vary depending on individual circumstances.
will not be effective until the first day of the The estimated average time is: Recordkeeping,
• Amend a previous agreement, or quarter following the one in which the field 4 hr., 46 min.; Learning about the law or the
• Elect to apply the rules in effect after April 20, director signed the amendment. form, 35 min.; Preparing and sending the form
1983, to agreements in effect on that date. Election to apply post-April 20, 1983 rules. A to the IRS, 42 min. If you have comments
For this agreement, an American employer is domestic corporation having an agreement in concerning the accuracy of these time estimates
an employer that is: effect that was entered into before April 21, or suggestions for making this form simpler, we
• The United States or any instrumentality 1983 (old agreement), may elect to have the would be happy to hear from you. You can write
thereof, rules in effect after April 20, 1983, apply to the to: Internal Revenue Service, Tax Products
old agreement. File Form 2032 in triplicate, and Coordinating Committee, SE:W:CAR:MP:T:T:SP,
• An individual who is a resident of the United check the box on line 3. 1111 Constitution Ave. NW, IR-6526,
States, Washington, DC 20224. Do not send Form 2032
If you make this election, it will be effective for to this address. Instead, see Where To File
• A partnership if two-thirds or more of the all foreign entities covered by the agreement. By above.
partners are residents of the United States, making the election, U.S. resident alien
• A trust if all the trustees are residents of the employees as well as U.S. citizen employees will
United States, or be covered by the agreement.
• A corporation organized under the laws of the
United States or of any state.
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