Contract Coverage Under Title II OMB No. 1545-0137

of the Social Security Act Form 2032

(Rev. July 2007)

File three copies For use by an American employer to extend social security coverage to of this form U.S. citizens and resident aliens employed by its foreign affiliates. Department of the Treasury

Internal Revenue Service

Name of American employer Employer identification number

Address number and street (P.O. Box if no mail delivery to street address)

City, state, and ZIP code

This Form 2032 is filed as (check applicable box(es)):

An original (new) agreement.

This agreement is effective for services performed on and after (for original agreements only, check one):

The first day of the calendar quarter in which the submission processing field director signs this agreement.

The first day of the calendar quarter following the calendar quarter in which the submission processing field director signs

this agreement.

An amendment to an agreement previously entered into.

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)

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. For an amendment to an agreement 

without making the election to apply the post-April 20, 1983 rules, 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.

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

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.

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. 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. Form 2032 (Rev. 7-2007)Cat. No. 49954D

Apt. or suite no.

1

2

3

a

b

4

5
Form 2032 (Rev. 7-2007) Page 2

Privacy Act and Paperwork Reduction Act

Notice. We ask for the information on this form

to carry out the Internal Revenue laws of the

United States. We need it to figure and collect

the right amount of tax. Section 6109 requires

you to provide your taxpayer identification

number (SSN or EIN). Section 3121 of the

Internal Revenue Code allows employees of

foreign affiliates to be covered under social

security. Routine uses of this information include

giving it to the Social Security Administration for

use in calculating social security benefits, the

Department of Justice for civil and criminal

litigation, and cities, states, and the District of

Columbia for use in administering their tax laws.

We may also disclose this information to federal

and state agencies to enforce federal nontax

criminal laws and to combat terrorism. We may

also give the information to foreign countries

under tax treaties. If you want this coverage, you

are required to give us this information. If you fail

to provide this information in a timely manner, or

you provide incorrect or fraudulent information,

you may be denied this coverage and you may

be liable for penalties and interest.

Completing Form 2032

Complete Form 2032 in triplicate. Each copy of

the form must be signed and dated by the

individual authorized to enter into the agreement,

amendment, or election. Attach to each form

evidence showing the authority for such

individual to sign the form. For example,

corporations must include a certified copy of the

minutes of the board of directors’ meeting.

For this agreement, an American employer is

an employer that is:

You are not required to provide the

information requested on a form that is subject

to the Paperwork Reduction Act unless the form

displays a valid OMB control number. Books or

records relating to a form or its instructions must

be retained as long as their contents may

become material in the administration of any

Internal Revenue law. Generally, tax returns and

return information are confidential, as required

by section 6103.

After the director signs and dates the form, it

constitutes the agreement, amendment, or

election authorized by section 3121(l). The IRS

will return one copy of Form 2032 to the

American employer, send one copy to the Social

Security Administration, and keep one copy with

all related papers.

Where To File

Original agreements. Check the box on line 1.

Also check the applicable box on line 1a or b to

designate when the agreement will take effect.

Send three copies of this form to:

Amending agreements. You may amend an

agreement at any time to extend coverage to

any foreign affiliate not covered by an existing

agreement. File Form 2032 in triplicate, and

check the box on line 2. If you amend an

agreement entered into on or before April 20,

1983, without making the election to apply the

rules in effect after that date, the agreement and

amendments will continue to be governed by the

rules in effect before April 21, 1983.

General Instructions

Section references are to the Internal Revenue

Code.

Before April 21, 1983, only domestic

corporations could enter into this agreement to

cover only U.S. citizens employed by foreign

subsidiaries. For this agreement, a foreign

subsidiary was defined as a foreign corporation

in which:

Effective date. If you file an amendment to an

agreement on Form 2032 to include foreign

affiliates not previously covered, and if the field

director signs the amendment during the quarter

for which the original agreement is first effective

or during the first month following that quarter,

the amendment will be effective as of the

effective date of the original agreement. But if

the amendment is signed by the field director

after the end of the 4th month for which the

original agreement is in effect, the amendment

will not be effective until the first day of the

quarter following the one in which the field

director signed the amendment.

After April 20, 1983, any American employer

(no longer limited to a domestic corporation) can

enter into this agreement to cover U.S. resident

aliens as well as U.S. citizens employed by a

foreign affiliate. For this agreement, a foreign

affiliate is any foreign entity (no longer limited to

a foreign corporation) in which the American

employer owns at least a 10% interest in the

voting stock or profits. This interest must be

owned directly or through one or more entities.

Election to apply post-April 20, 1983 rules. A

domestic corporation having an agreement in

effect that was entered into before April 21,

1983 (old agreement), may elect to have the

rules in effect after April 20, 1983, apply to the

old agreement. File Form 2032 in triplicate, and

check the box on line 3.

A domestic corporation having an agreement

in effect that was entered into before April 21,

1983, can elect to apply the post-April 20, 1983

rules to such agreements. If a domestic

corporation makes this election, social security

coverage will be extended to U.S. resident alien

employees of any foreign subsidiary for which

U.S. citizens are currently covered by an existing

agreement. In addition, the election allows a

domestic corporation to extend social security

and Medicare coverage to U.S. citizens and

resident aliens employed by a foreign entity that

did not qualify for coverage under the old 20%

ownership rules, but that now qualifies under the

10% ownership rules.

If you make this election, it will be effective for

all foreign entities covered by the agreement. By

making the election, U.S. resident alien

employees as well as U.S. citizen employees will

be covered by the agreement.

To extend coverage to any foreign affiliate not

covered by an agreement, indicate the name and

address of the foreign affiliate on line 4 and

check the box on line 2 for the amended

agreement, and the box on line 3 for the

election.

Note. The United States has social security

(totalization) agreements with specific countries.

These agreements ensure that social security

taxes are paid to only one country. However,

these agreements may affect the withholding

requirements resulting from filing Form 2032. For

more information, see Social Security and

Medicare Taxes in Pub. 54, Tax Guide for U.S.

Citizens and Resident Aliens Abroad.

Effective date. Generally, the election will be

effective on the day following the quarter in

which the election is signed by the field director.

No Termination of Agreement

Once you enter into an agreement, you cannot

terminate it, either in its entirety or with respect

to any foreign affiliate. However, the agreement

will terminate for a foreign entity at the end of

any quarter in which the foreign entity, at any

time in that quarter, ceased to be your foreign

affiliate.

Purpose of form. An American employer uses

this form to:

The time needed to complete and file this form

will vary depending on individual circumstances.

The estimated average time is: Recordkeeping,

4 hr., 46 min.; Learning about the law or the

form, 35 min.; Preparing and sending the form

to the IRS, 42 min. If you have comments

concerning the accuracy of these time estimates

or suggestions for making this form simpler, we

would be happy to hear from you. You can write

to: Internal Revenue Service, Tax Products

Coordinating Committee, SE:W:CAR:MP:T:T:SP,

1111 Constitution Ave. NW, IR-6406,

Washington, DC 20224. Do not send Form 2032

to this address. Instead, see Where To File

above.

What’s New

The addresses for filing Form 2032 have

changed. See Where To File below.

● at least 20% of the voting stock was owned

by the domestic corporation, or

● more than 50% of the voting stock was

owned by another foreign corporation in which

the domestic corporation owned at least 20% of

the voting stock.

● Enter into the agreement specified in 3121(l) to

extend coverage under Title II of the Social

Security Act to U.S. citizens and resident aliens

abroad by foreign affiliates,

● Amend a previous agreement, or

● Elect to apply the rules in effect after April 20,

1983, to agreements in effect on that date.

● The United States or any instrumentality

thereof,

● An individual who is a resident of the United

States,

● A partnership if two-thirds or more of the

partners are residents of the United States,

● A trust if all the trustees are residents of the

United States, or

● A corporation organized under the laws of the

United States or of any state.

Internal Revenue Service

Ogden, UT 84201-0023

An American employer already filing Form 941,

Employer’s Quarterly Federal Tax Return, should

file Form 2032 with the Internal Revenue Service

where the employer files Form 941 (generally

their principal place of business). For electronic

Form 941 filers, send Form 2032 to Internal

Revenue Service, Cincinnati, OH 45999-0038.

Enter on Form 2032 the employer identification

number (EIN) as shown on Form 941. This will

help the IRS process your form faster.