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IRS Amends Final Regs on Withholding on Payments to Foreign Persons

DEC. 31, 1998

T.D. 8804; 63 F.R. 72183-72189

DATED DEC. 31, 1998
DOCUMENT ATTRIBUTES
Citations: T.D. 8804; 63 F.R. 72183-72189

 [4830-01-u]

 

 DEPARTMENT OF THE TREASURY

 

 Internal Revenue Service

 

 26 CFR Parts 1, 31, 35a, and 301

 

 [TD 8804]

 

 RIN 1545-AW39

 

 

[1] AGENCY: Internal Revenue Service (IRS), Treasury.

[2] ACTION: Final rule; delay of effective date, technical amendments, and partial withdrawal.

[3] SUMMARY: This document contains changes delaying the effective date and making technical amendments to final regulations (TD 8734), which were published in the Federal Register for October 14, 1997, relating to the withholding of income tax on certain U.S. source income payments to foreign persons. The Department of the Treasury and the IRS believe it is in the best interest of tax administration to extend the effective date of the final withholding regulations to ensure that both taxpayers and the government can complete changes necessary to implement the new withholding regime. As extended by this document, the final withholding regulations will apply to payments made after December 31, 1999. This document also withdraws two amendments which have already been dealt with in TD 8772, which was published in the Federal Register for June 30, 1998.

[4] DATES: Effective Dates: The amendments in this final rule are effective January 1, 2000. As of December 31, 1998, the effective date of the final regulations published at 62 FR 53387, October 14, 1997, is delayed from January 1, 1999, until January 1, 2000; however, the effective date of the addition of section 31.9999-0 and section 35a.9999-0 and the removal of section 35a.9999-0T remains October 14, 1997.

[5] Withdrawal: Effective December 31, 1998, the amendments removing sections 1.6045-1T and 1.6045-2T published at 62 FR 53387, October 14, 1997, are withdrawn.

[6] FOR FURTHER INFORMATION CONTACT: Lilo Hester, (202) 622-3840 (not a toll-free number).

[7] SUPPLEMENTARY INFORMATION: Background

[8] The final regulations that are the subject of this amendment provide guidance under sections 1441, 1442, and 1443 of the Internal Revenue Code (Code) on certain U.S. source income paid to foreign persons, the related tax deposit and reporting requirements under section 1461 of the Code, and the related changes under sections 163(f), 165(j), 871, 881, 1462, 1463, 3401, 3406, 6041, 6041A, 6042, 6045, 6049, 6050A, 6050N, 6109, 6114, 6402, 6413, and 6724 of the Code.

Need for Changes

[9] On April 13, 1998, in Notice 98-16 (1998-15 I.R.B. 12), the IRS and Treasury announced their decision to extend the effective date of the final regulations, and to make correlative changes to the transition rules for obtaining new withholding certificates and statements containing the necessary information and representations required by the final regulations. As published in the Federal Register on October 14, 1997 (62 FR 53387), the final regulations were generally applicable to payments made after December 31, 1998, and generally granted withholding agents until after December 31, 1999, to obtain the new withholding certificates and statements required under those regulations. This amendment serves to make the final regulations applicable to payments made after December 31, 1999, and to require mandatory use of the new withholding certificates and statements after December 31, 2000. In addition, this amendment serves to address typographical errors, and to withdraw the removal of sections 1.6045-1T and 1.6045-2T since those sections were already removed on June 30, 1998, in TD 8772 (63 FR 35517).

Special Analyses

[10] It has been determined that this Treasury decision is not a significant regulatory action as defined in EO 12866. Therefore, a regulatory assessment is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. Finally, it has been determined that the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply to these regulations because the regulations do not impose a collection of information on small entities. Pursuant to 7805(f) of the Code, the notice of proposed rulemaking preceding these regulations (61 FR 17614) was submitted to the Small Business Administration for comment on its impact on small business.

List of Subjects

26 CFR Part 1

[11] Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 31

[12] Employment taxes, Income taxes, Penalties, Pensions, Railroad retirement, Reporting and recordkeeping requirements, Social security, Unemployment compensation.

26 CFR Part 35a

[13] Employment taxes, Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 301

[14] Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income taxes, Penalties, Reporting and recordkeeping requirements.

[15] Accordingly, under the authority of 26 U.S.C. 7805, 26 CFR parts 1, 31, 35a, and 301 are amended by making the following correcting amendments:

PART 1 -- INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. In section 1.871-14, paragraph(h) is revised to read as follows:

Section 1.871-14 Rules relating to repeal of tax on interest of nonresident alien individuals and foreign corporations received from certain portfolio debt investments.

* * * * *

(h) Effective date -- (1) In general. This section shall apply to payments of interest made after December 31, 1999.

(2) Transition rule. For purposes of this section, the validity of a Form W-8 that was valid on January 1, 1998, under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a Form W-8 that is valid on or after January 1, 1999, remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph (h)(2), however, does not apply to extend the validity period of a Form W-8 that expires solely by reason of changes in the circumstances of the person whose name is on the certificate. Notwithstanding the first three sentences of this paragraph (h)(2), a withholding agent or payor may choose to not take advantage of the transition rule in this paragraph (h)(2) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and, therefore, may choose to obtain withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.

Par. 3. In section 1.1441-1 as revised at 62 FR 53424, paragraph (f) is revised to read as follows:

Section 1.1441-1 Requirement for the deduction and withholding of tax on payments to foreign persons.

(f) Effective date -- (1) In general. This section applies to payments made after December 31, 1999.

(2) Transition rules -- (i) Special rules for existing documentation. For purposes of paragraphs (d)(3) and (e)(2)(i) of this section, the validity of a withholding certificate (namely, Form W-8, 8233, 1001, 4224, or 1078, or a statement described in section 1.1441-5 in effect prior to January 1, 2000 (see section 1. 1441-5 as contained in 26 CFR part 1, revised April 1, 1998)) that was valid on January 1, 1998 under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a withholding certificate that is valid on or after January 1, 1999, remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph (f)(2)(i), however, does not apply to extend the validity period of a withholding certificate that expires solely by reason of changes in the circumstances of the person whose name is on the certificate. Notwithstanding the first three sentences of this paragraph (f)(2)(i), a withholding agent may choose to not take advantage of the transition rule in this paragraph (f)(2)(i) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in paragraph (e)(4)(ii) of this section, regardless of when the certificate is obtained.

(ii) Lack of documentation for past years. A taxpayer may elect to apply the provisions of paragraphs (b)(7)(i)(B), (ii), and (iii) of this section, dealing with liability for failure to obtain documentation timely, to all of its open tax years, including tax years that are currently under examination by the IRS. The election is made by simply taking action under those provisions in the same manner as the taxpayer would take action for payments made after December 31, 1999.

Par. 4. In section 1.1441-4 as amended at 62 FR 53450, paragraph (g) is revised to read as follows:

Section 1.1441-4 Exemptions from withholding for certain effectively connected income and other amounts.

(g) Effective date -- (1) General rule. This section applies to payments made after December 31, 1999.

(2) Transition rules. The validity of a Form 4224 or 8233 that was valid on January 1, 1998, under the regulations in effect prior to January 1, 2000 (see 26 CFR part 1, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a Form 4224 or 8233 that is valid on or after January 1, 1999, remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR part 1, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph (g)(2), however, does not apply to extend the validity period of a Form 4224 or 8223 that expires solely by reason of changes in the circumstances of the person whose name is on the certificate. Notwithstanding the first three sentences of this paragraph (g)(2), a withholding agent may choose to not take advantage of the transition rule in this paragraph (g)(2) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR part 1, revised April 1, 1998) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR part 1, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.

Par. 5. In section 1.1441-5 as revised at 62 FR 53452, paragraph (g) is revised to read as follows:

Section 1.1441-5 Withholding on payments to partnerships, trusts, and estates.

(g) Effective date -- (1) General rule. This section applies to payments made after December 31, 1999.

(2) Transition rules. The validity of a withholding certificate that was valid on January 1, 1998, under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a withholding certificate that is valid on or after January 1, 1999, remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph(g)(2), however, does not apply to extend the validity period of a withholding certificate that expires solely by reason of changes in the circumstances of the person whose name is on the certificate. Notwithstanding the first three sentences of this paragraph (g)(2), a withholding agent may choose to not take advantage of the transition rule in this paragraph (g)(2) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.

Par. 6. In section 1.1441-6 as revised at 62 FR 53458, paragraph (g) is revised to read as follows:

Section 1.1441-6 Claim of reduced withholding under an income tax treaty.

* * * *

(g) Effective date -- (1) General rule. This section applies to payments made after December 31, 1999.

(2) Transition rules. For purposes of this section, the validity of a Form 1001 or 8233 that was valid on January 1, 1998, under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a Form 1001 or 8233 is valid on or after January 1, 1999, remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph(g)(2), however, does not apply to extend the validity period of a Form 1001 or 8233 that expires solely by reason of changes in the circumstances of the person whose name is on the certificate or in interpretation of the law under the regulations under section 1.894-1T(d). Notwithstanding the first three sentences of this paragraph (g)(2), a withholding agent may choose to not take advantage of the transition rule in this paragraph (g)(2) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.

Par. 7. In section 1.1441-9, paragraph (d) is revised to read as follows:

Section 1.1441-9 Exemption from withholding on exempt income of a foreign tax-exempt organization, including foreign private foundations.

* * * * *

(d) Effective date -- (1) In general. This section applies to payments made after December 31, 1999.

(2) Transition rules. For purposes of this section, the validity of a Form W-8, 1001, or 4224 or a statement that was valid on January 1, 1998, under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a Form W-8, 1001, or 4224 or a statement that is valid on or after January 1, 1999 remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph (d)(2), however, does not apply to extend the validity period of a Form W-8, 1001, or 4224 or a statement that expires solely by reason of changes in the circumstances of the person whose name is on the certificate. Notwithstanding the first three sentences of this paragraph (d)(2), a withholding agent may choose to not take advantage of the transition rule in this paragraph (d)(2) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.

Par. 9. In section 1.1443-1 as revised at 62 FR 53466, paragraph (c) is revised to read as follows:

Section 1.1443-1 Foreign tax-exempt organizations.

* * * * *

(c) Effective date -- (1) In general. This section applies to payments made after December 31, 1999.

(2) Transition rules. For purposes of this section, the validity of an affidavit or opinion of counsel described in section 1.1443-1(b)(4)(i) in effect prior to January 1, 2000 (see section 1.1443-1(b)(4)(i) as contained in 26 CFR part 1, revised April 1, 1998) that is valid on December 31, 1998 is extended until December 31, 2000. However, a withholding agent may choose to not take advantage of the transition rule in this paragraph (c)(2) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR part 1, revised April 1, 1998) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR part 1, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1 (e)(4)(ii), regardless of when the certificate is obtained.

Section 1.6041-3 [Amended]

Par. 10. Section 1.6041-3 as amended at 62 FR 53472 is further amended by removing the last sentence of the introductory text.

Par. 11. In section 1.6042-3 as amended at 62 FR 53475, paragraph (b)(5) is revised to read as follows:

Section 1.6042-3 Dividends subject to reporting.

* * * * *

(b) * * *

(5) Effective date -- (i) General rule. The provisions of this paragraph (b) apply to payments made after December 31, 1999.

(ii) Transition rules. The validity of a withholding certificate (namely, Form W-8 or other form upon which the payor is permitted to rely to hold the payee as a foreign person) that was valid on January 1, 1998, under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a withholding certificate that is valid on or after January 1, 1999, remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph (b)(5)(ii), however, does not apply to extend the validity period of a withholding certificate that expires solely by reason of changes in the circumstances of the person whose name is on the certificate. Notwithstanding the first three sentences of this paragraph (b)(5)(ii), a payor may choose not to take advantage of the transition rule in this paragraph (b)(5)(ii) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.

Par. 12. In section 1.6045-1 as amended at 62 FR 53476, paragraph (g)(5) is revised to read as follows:

Section 1.6045-1 Returns of information of brokers and barter exchanges.

* * * * *

(g) * * *

(5) Effective date -- (i) General rule. The provisions of this paragraph (g) apply to payments made after December 31, 1999.

(ii) Transition rules. The validity of a withholding certificate (namely, Form W-8 or other form upon which the payor is permitted to rely to hold the payee as a foreign person) that was valid on January 1, 1998, under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 3 5 a, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a withholding certificate that is valid on or after January 1, 1999, remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph (g)(5)(ii), however, does not apply to extend the validity period of a form that expires in 1998 solely by reason of changes in the circumstances of the person whose name is on the certificate. Notwithstanding the first three sentences of this paragraph (g)(5)(ii), a payor may choose not to take advantage of the transition rule in this paragraph (g)(5)(ii) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and, therefore, to require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.

Par 13. Effective December 31, 1998, the amendments removing sections 1.6045-1T and 1.6045-2T, published at 62 FR 53480, are withdrawn.

Par. 14. In section 1.6049-5 as amended at 62 FR 53483, paragraph (g) is revised to read as follows:

Section 1.6049-5 Interest and original issue discount subject to reporting after December 31, 1982.

* * * * *

(g) Effective date -- (1) General rule. The provisions of paragraphs (b)(6) through (15), (c), (d), and (e) of this section apply to payments made after December 31, 1999.

(2) Transition rules. The validity of a withholding certificate (namely, Form W-8 or other form upon which the payor is permitted to rely to hold the payee as a foreign person) that was valid on January 1, 1998, under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 3 5a, revised April 1, 1998) and expired, or will expire, at any time during 1998, is extended until December 31, 1998. The validity of a withholding certificate that is valid on or after January 1, 1999, remains valid until its validity expires under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) or, if earlier, until December 31, 2000. The rule in this paragraph (g)(2), however, does not apply to extend the validity period of a withholding certificate that expires solely by reason of changes in the circumstances of the person whose name is on the certificate. Notwithstanding the first three sentences of this paragraph (g)(2), a payor may choose not to take advantage of the transition rule in this paragraph (g)(2) with respect to one or more withholding certificates valid under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998) and, therefore, may require withholding certificates conforming to the requirements described in this section (new withholding certificates). For purposes of this section, a new withholding certificate is deemed to satisfy the documentation requirement under the regulations in effect prior to January 1, 2000 (see 26 CFR parts 1 and 35a, revised April 1, 1998). Further, a new withholding certificate remains valid for the period specified in section 1.1441-1(e)(4)(ii), regardless of when the certificate is obtained.

PARTS 1, 31, 35a, and 301 [AMENDED]

Par. 15. In the list below, for each section indicated in the left column (which was added, revised, or amended at 62 FR 53387), remove the language in the middle column and add the language in the right column:

 Section                  Remove                   Add

 

 _______                  ______                   ___

 

 1.871-14(c)(2)(iii)      1.1441-1(c)(3)(ii)       1.1441-1(e)(3)(ii)

 

 1.871-14(c)(3)(ii),      October 12, 1999         October 12, 2000

 

 Example, first and

 

 sixth sentences

 

 1.871-14(c)(3)(ii),      December 31, 1999        December 31, 2000

 

 Example, sixth sentence

 

 1.871-14(c)(3)(ii),      June 15, 2003            June 15, 2004

 

 Example, sixth and

 

 seventh sentences

 

 1.1441-1(b)(2)(iii)(B),  savings clause           saving clause

 

 fifth sentence

 

 1.1441-1(b)(2)(iv)(E),   actually maintain        actually maintains

 

 second sentence

 

 1.1441-1(b)(3)(iii)(B),  that cannot reliably     cannot reliably

 

 first sentence

 

 1.1441-1(b)(3)(iii)(C),  1.1441-4(e)              1.1441-4(d)

 

 last sentence

 

 1.1441-1(b)(3)(x),       W s                      W's

 

 Example 1, seventh and

 

 ninth sentences

 

 1.1441-1(b)(3)(x),       W s                      W's

 

 Example 2, sixth and

 

 seventh sentences

 

 1.1441-1(b)(3)(x),       X, nc.                   X, Inc.

 

 Example 3, third

 

 sentence

 

 1.1441-1(b)(4)(i),       1.871-7(b)(2)(i)         1.871-7(b)(2)

 

 first sentence

 

 1.1441-1(b)(4)(xix)      January 1, 1999          January 1, 2000

 

 1.1441-1(b)(4)(xix)      April 1, 1997            April 1, 1998

 

 1.1441-1(b)(5)(viii)     I.R.B. 1996-49           1996-2 C.B. 227

 

 1.1441-1(b)(7)(v),       June 15, 1999            June 15, 2000

 

 Example 1, first, fourth,

 

 and eighth sentences

 

 1.1441-1(b)(7)(v),       September 30, 2001       September 30, 2002

 

 Example 1, third and

 

 ninth sentences

 

 1.1441-1(b)(7)(v),       March 15, 2000           March 15, 2001

 

 Example 1, ninth

 

 sentence

 

 1.1441-1(b)(7)(v),       June 15, 1999            June 15, 2000

 

 Example 2, first,

 

 fourth, and seventh

 

 sentences

 

 1.1441-1(b)(7)(v),       September 30, 2001       September 30, 2002

 

 Example 2, third and

 

 seventh sentences

 

 1.1441-1(b)(7)(v),       March 15, 2000           March 15, 2001

 

 Example 2, seventh and

 

 ninth sentences

 

 1.1441-1(c)(6)(ii)(B)    January 1, 1999          January 1, 2000

 

 1.1441-1(c)(6)(ii)(B)    April 1, 1997            April 1, 1998

 

 1.1441-1(e)(4)(ii)(A)    September 30, 1999       September 30, 2000

 

 1.1441-1(e)(4)(ii)(A)    December 31, 2002        December 31, 2003

 

 1.1441-1(e)(4)(vi),      provided the acceptable  provided on the

 

 sixth sentence                                    acceptable

 

 1.1441-1(e)(4)(ix)(A)(2), section                 section 31.3406(c)-

 

 second sentence          31.3406(c)1(c)(3)(ii)    1(c)(3)(ii)

 

 1.1441-1(e)(5)(i),       reportable payments      reportable amounts

 

 penultimate sentence

 

 1.1441-1(e)(5)(v)(A),    the intermediary         the qualified

 

 third sentence                                    intermediary

 

 1.1441-1(e)(5)(v)(A),    the intermediary to      the qualified

 

 fourth sentence                                   intermediary to

 

 1.1441-1(e)(5)(v)(B)     paragraph (b)(3)(vi)     paragraph (e)(3)(vi)

 

 introductory text,

 

 third sentence

 

 1.1441-1(e)(5)(v)(B)(1), withholding agent        qualified

 

 second sentence                                   intermediary

 

 1.1441-1(e)(5)(v)(C),    The intermediary         The qualified

 

 first sentence                                    intermediary

 

 1.1441-2(a), last        871(h)(5)(B)             871(h)(5)(B) or a

 

 sentence                                          member of a clearing

 

 organization which

 

 member is the

 

 beneficial owner of

 

 the obligation

 

 1.1441-2(b)(1)(ii),      someone s                someone's

 

 fifth sentence

 

 1.1441-2(b)(3)(iv)       December 31, 1998        December 31, 1999

 

 1.1441-2(f)              December 31, 1998        December 31, 1999

 

 1.1441-3(h)              December 31, 1998        December 31, 1999

 

 1.1441-4(a)(2)(i),       United States            United States and is

 

 second sentence                                   includable in the

 

 beneficial owner's

 

 gross income for

 

 the taxable year

 

 1.1441-5(a)(6),          withholding partnership  withholding foreign

 

 second sentence                                   partnership

 

 1.1441-5(c)(2)(ii)(B),   qualified intermediary   withholding foreign

 

 sixth sentence                                    partnership

 

 1.1441-5(c)(2)(ii)(B),   customers                partners

 

 sixth sentence

 

 1.1441-5(c)(3)(iii)(D)   that the partners        that the amounts

 

 allocable to the

 

 partners

 

 1.1441-5(d)(4),          depending of             depending on

 

 Example 2,

 

 second sentence

 

 1.1441-6(b)(1), first    section 1.1441-          section 1.1441

 

 sentence                 1(e)(1)(ii)(B)           -1(e)(1)(ii)(A)(2)

 

 1.1441-6(c)(2)(ii),      upon a certificate       upon receipt of a

 

 first sentence                                    certificate

 

 1.1441-6(d), second      rate of tax              rate of withholding

 

 sentence

 

 1.1441-7(g)              December 31, 1998        December 31, 1999

 

 1.1461-1(b)(2)(v)        foreign partnership      foreign partnership

 

                          shall                    (whether or not a

 

                          withholding foreign

 

                          partnership) shall

 

 1.1461-1(b)(2)(vi),      banks, securities        banks, or insurance

 

 paragraph heading        dealers, or insurance    companies.

 

                          companies.

 

 1.1461-1(c)(4)(iv),      certificate attached     certificate or

 

 first sentence           to the intermediary's    documentary evidence

 

                          or partnership           attached to the

 

                          withholding certificate  intermediary's or

 

                          that is from a           partnership

 

                          qualified intermediary   withholding

 

                          or a withholding         certificate

 

                          foreign partnership

 

 1.1461-1(i)              December 31, 1998        December 31, 1999

 

 1.1461-2(a)(1), third    an adjustment to         a refund of

 

 sentence

 

 1.1461-2(a)(3),          beneficial owner         beneficial owner

 

 first sentence                                    or payee

 

 1.1461-2(a)(4),          December 1999            December 2000

 

 Example 1(i), second

 

 sentence

 

 1.1461-2(a)(4),          February 10, 2000        February 10, 2001

 

 Example 1(i), third

 

 sentence

 

 1.1461-2(a)(4),          1999                     2000

 

 Example 1(ii), first,

 

 second, and last

 

 sentences

 

 1.1461-2(a)(4),          March 15, 2000           March 15, 2001

 

 Example 1(ii), first

 

 sentence

 

 1.1461-2(a)(4),          2000                     2001

 

 Example 1(ii), third

 

 sentence

 

 1.1461-2(a)(4),          2000                     2001

 

 Example 2, second and

 

 last sentences

 

 1.1461-2(a)(4),          June 2000                June 2001

 

 Example 2, second

 

 sentence

 

 1.1461-2(a)(4),          July 15, 2000            July 15, 2001

 

 Example 2, third

 

 sentence

 

 1.1461-2(a)(4),          1999                     2000

 

 Example 2, third

 

 sentence

 

 1.1461-2(a)(4),          March 15, 2001           March 15, 2002

 

 Example 2, last

 

 sentence

 

 1.1461-2(a)(4),

 

 Example 3,               February 15, 2000        February 15, 2001

 

 last sentence

 

 1.1461-2(a)(4),

 

 Example 3,               March 15, 2000           March 15, 2001

 

 last sentence

 

 1.1461-2(d)              December 31, 1998        December 31, 1999

 

 1.1462-1(c)              December 31, 1998        December 31, 1999

 

 1.1463-1(a), last        Section 1.1441-7(b)(7)   Section 1.1441-7(b)

 

 sentence

 

 1.1463-1(b)              December 31, 1989        December 31, 1999

 

 1.1464-1 (b)             Section 1.1461-4         Section 1.1461-2

 

 1.6041-4(d)              December 31, 1998        December 31, 1999

 

 1.6041A-1(d)(3)(i)(B),   if payments made         if payments are made

 

 first sentence

 

 1.6041A-1(d)(3)(iv),     amount paid              amounts paid

 

 paragraph heading

 

 1.6041A-1(d)(3)(v)       December 31, 1998        December 31, 1999

 

 1.6043-2(a), first,

 

 second, and last         966                      1099

 

 sentences

 

 1.6045-1(d)(6)(ii)(B)    December 31, 1998        December 31, 1999

 

 1.6045-1(g)(3)(iv),      Example 7                Example 6

 

 second sentence

 

 1.6045-1(g)(4),          Y s                      Y's

 

 Example 7(ii),

 

 last sentence

 

 1.6049-4(c)(1)(ii)(A),   certificate meeting the  certificate stating

 

 second sentence          certification require-   that each member of

 

                          ments of paragraphs      the partnership

 

                          (c)(2)(ii)(A)(1)         meets the require-

 

                          through (5) of this      ments of paragraphs

 

                          section.                 (c)(1)(ii)(A)(1)

 

                          through (4) of this

 

                          section.

 

 1.6049-4(d)(3)(ii)(B)    December 31, 1998        December 31, 1999

 

 1.6049-5(b)(12),         Returns of information   Payments that

 

 first sentence           are not required for

 

                          payments that

 

 1.6049-5(c)(4)(i),       the payor may            the bank or other

 

 first sentence                                    financial institu-

 

                          tion may

 

 1.6049-5(c)(4)(ii),      then the financial       then the bank or

 

 second sentence          institution              other financial

 

                          institution

 

 1.6049-5(c)(4)(v)        January 1, 1999          January 1, 2000

 

 1.6049-5(d)(2)(ii),      publicly traded          actively traded

 

 second and last

 

 sentences

 

 1.6049-5(d)(2)(ii),      is less than 31          is equal to or less

 

 eighth sentence                                   than 31

 

 1.6049-5(e)(1)(i),       The amount               An amount is

 

 introductory text        described in this

 

  paragraph (e)(1)(i)

 

                        if it

 

 1.6049-5(e)(1)(ii)      The amount                An amount is

 

  described in this

 

  paragraph (e)(1)(ii)

 

  if it

 

 1.6049-5(e)(4),          specifically             specifically

 

 second sentence          identifies               identify

 

 1.6049-5(e)(5),          of is section            of this section

 

 Example 5,

 

 last sentence

 

 1.6049-5(e)(5),          a holds                  A holds

 

 Example 9, second

 

 sentence

 

 1.6049-5(e)(5),          paid to a                paid to A

 

 Example 9, third

 

 sentence

 

 1.6049-5(e)(5),          a's                      A's

 

 Example 9, third

 

 sentence

 

 1.6049-5(e)(5),          to a by DB               to A by DB

 

 Example 9, last

 

 sentence

 

 1.6050N-1(e),            is applies to            applies to

 

 first sentence

 

 1.6050N-1(e),            December 31, 1998        December 31, 1999

 

 last sentence

 

 31.3401(a)(6)-1(e),      January 1, 1999          January 1, 2000

 

 paragraph heading

 

 31.3401(a)(6)-1(e),      January 1, 1999          January 1, 2000

 

 first sentence

 

 31.3401(a)(6)-1(f),      December 31, 1998        December 31, 1999

 

 paragraph heading

 

 31.3401(a)(6)-1(f),      December 31, 1998        December 31, 1999

 

 first sentence

 

 31.3406(g)-1(e),         December 31, 1998        December 31, 1999

 

 first sentence

 

 31.3406(h)-2(d),         December 31, 1998        December 31, 1999

 

 penultimate sentence

 

 31.9999-0                January 1, 1999          January 1, 2000

 

 301.6114-1(b)(4)(ii)(C), December 31, 1998        December 31, 1999

 

 introductory text

 

 301.6114-1(b)(4)(ii)(D)  December 31, 1998        December 31, 1999

 

 301.6724-1(g)(2) Q-11    January 1, 1999          January 1, 2000

 

 301.6724-1(g)(2) Q-11    April 1, 1997            April 1, 1998

 

 301.6724-1(g)(2) A-11    January 1, 1999          January 1, 2000

 

 301.6724-1(g)(2) A-11    April 1, 1997            April 1, 1998

 

 301.6724-1(g)(3),        December 31, 1998        December 31, 1999

 

 first sentence

 

 301.6724-1(g)(3), last   January 1, 1999          January 1, 2000

 

 sentence in both places

 

 301.6724-1(g)(3), last   April 1, 1997            April 1, 1998

 

 sentence

 

Robert E. Wenzel

 

Deputy Commissioner of Internal Revenue

 

Approved: December 7, 1998

 

Donald C. Lubick

 

Assistant Secretary of the Treasury
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