Dividend Equivalents From Sources Within the United States; Correction
Federal Register, Volume 82 Issue 206 (Thursday, October 26, 2017)
Federal Register Volume 82, Number 206 (Thursday, October 26, 2017)
Rules and Regulations
Pages 49508-49510
From the Federal Register Online via the Government Publishing Office www.gpo.gov
FR Doc No: 2017-22830
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
TD 9815
RIN 1545-BM33
Dividend Equivalents From Sources Within the United States; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and temporary regulations; Correcting amendments.
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SUMMARY: This document contains corrections to final and temporary regulations (TD TD 9815), which were published in the Federal Register on Tuesday, January 24, 2017.
DATES: Effective Date: These corrections are effective October 26, 2017.
Applicability Date: The corrections to Sec. Sec. 1.1.871-15, 1.871-15T, 1.1441-1(e)(5)(v)(B)(4), (e)(6), and (f)(5), 1.1441-2, 1.1441-7, and 1.1461-1 are applicable on January 19, 2017.
FOR FURTHER INFORMATION CONTACT: D. Peter Merkel or Karen Walny at 202-
317-6938 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final and temporary regulations that are the subject of these corrections are Sec. Sec. 1.871-15, 1.871-15T, 1.1441-1, 1.1441-2, 1.1441-7, and 1.1461-1, promulgated under sections 871(m) and 7805 of the Internal Revenue Code. These regulations affect foreign persons that hold certain financial products providing for payments that are contingent upon or determined by reference to U.S. source dividends, as well withholding agents with respect to dividend equivalents and certain other parties to section 871(m) transactions and their agents.
Need for Correction
As published, TD 9815 contains errors that may prove to be misleading and are in need of clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:
PART 1--INCOME TAXES
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Paragraph 1. The authority citation for part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sec. 1.871-15 Amended
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Par. 2. Section 1.871-15 is amended by:
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-
Removing paragraph (r)(2).
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-
Redesignating paragraphs (r)(3), (4), and (5), as (r)(2), (3), and (4), respectively.
Sec. 1.871-15 Amended
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Par. 3. For each section listed in the table, remove the language in the ``Remove'' column and add in its place the language in the ``Add'' column as set forth below:
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Section Remove Add
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Sec. 1.871- ELI.More............ ELI. More
15(a)(14)(ii)(B).
Sec. 1.871-15(l)(1), described in this described in this
second sentence. paragraph (l). paragraph (l)(1)
Sec. 1.871-15(q)(1) qualified qualified
intermediary intermediary
agreement. withholding
agreement
Page 49509
Sec. 1.871-15(q)(4) ordinary............ ordinarily
Sec. 1.871-15(q)(5), country that country with a
Example (3), paragraph (ii) provides treaty that
withholding. provides
withholding
Sec. 1.871-15(q)(5), paid by qualified paid by the
Example (3), paragraph (ii) derivatives dealer. qualified
derivatives dealer
Sec. 1.871-15(r)(1) September 18, 2015.. January 19, 2017
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Sec. 1.871-15T Amended
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Par. 4. Section 1.871-15T is amended by redesignating paragraph (r)(5) as (r)(4).
Sec. 1.871-15T Amended
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Par. 5. For each section listed in the table, remove the language in the ``Remove'' column and add in its place the language in the ``Add'' column as set forth below:
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Section Remove Add
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Sec. 1.871-15T(p)(5)...... Example 1........... Example.
Sec. 1.871-15T(q) through (q) through (r)(4) (q) through (r)(3)
(r)(4) Reserved. Reserved. For Reserved. For
further guidance, further guidance,
see Sec. 1.871- see Sec. 1.871-
15(r)(1) through 15(q) through
(4). (r)(3)
Sec. 1.871-15T(r)(4) newly after on January.... after January
redesignated.
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Sec. 1.1441-1 Amended
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Par. 6. For each section listed in the table, remove the language in the ``Remove'' column and add in its place the language in the ``Add'' column as set forth below:
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Section Remove Add
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Sec. 1.1441- U.S. income tax..... U.S. federal income
1(e)(5)(v)(B)(4)(iv). tax
Sec. 1.1441-1(e)(6)(i)(B). and other and other provisions
withholding
provisions.
Sec. 1.1441-1(e)(6)(i)(C). underlying underlying
securities securities as
(including. defined in Sec.
1.871- 15(a)(15)
(including
Sec. 1.1441-1(e)(6)(i)(C). received in the received in its
equity. equity
Sec. 1.1441- U.S. tax return..... U.S. federal tax
1(e)(6)(i)(D)(3). return
Sec. 1.1441-1(e)(6)(i)(F). QDD................. qualified
derivatives dealer
Sec. 1.1441-1(e)(6)(ii)(B) organized, or organized or
introductory text. operates. operates
Sec. 1.1441- pursuant to......... with respect to
1(e)(6)(ii)(B)(2).
Sec. 1.1441-1(f)(5)....... Paragraphs Paragraphs
(e)(5)(ii)(D). (e)(5)(ii)(C)
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Par. 7. Section 1.1441-2 is amended by removing the last two sentences of paragraph (f)(1) and adding a sentence at the end of the paragraph to read as follows:
Sec. 1.1441-2 Amounts subject to withholding.
* * * * *
(f) * * *
(1) * * * Paragraph (e)(7) of this section applies on or after January 19, 2017.
* * * * *
Sec. 1.1441-2 Amended
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Par. 8. For each section listed in the table, remove the language in the ``Remove'' column and add in its place the language in the ``Add'' column as set forth below:
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Section Remove Add
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Sec. 1.1441-2(e)(7)(ii)(A) Sec. 1.871- Sec. 1.871-
15(i)(3),. 15(i)(3)(i),
Sec. 1.1441-2(e)(7)(iv)... type (securities.... type (for example,
securities
Sec. 1.1441-2(e)(7)(v).... the types of section the type of section
871(m) transaction. 871(m) transaction
Sec. 1.1441-2(e)(7)(v).... certifying that has certifying that it
notified. has notified
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Sec. 1.1441-7 Amended
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Par. 9. Section 1.1441-7 is amended by removing the second sentence of paragraph (a)(4).
Sec. 1.1441-7 Amended
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Par. 10. For each section listed in the table, remove the language in the ``Remove'' column and add in its place the language in the ``Add'' column as set forth below:
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Section Remove Add
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Sec. 1.1441-7(a)(3), not required not required to
Example 9. withhold. withhold
Sec. 1.1441-7(a)(4)....... Example 8 and....... Example 7, Example
8, and
Sec. 1.1441-7(a)(4)....... apply to payments apply beginning
made on or after January 19
January 19
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Page 49510
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Par. 11. Section 1.1461-1 is amended by revising paragraph (c)(2)(iii) to read as follows:
Sec. 1.1461-1 Payment and returns of tax withheld.
* * * * *
(c) * * *
(2) * * *
(iii) Applicability date. Paragraph (c)(2) of this section applies beginning January 19, 2017.
* * * * *
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).
FR Doc. 2017-22830 Filed 10-25-17; 8:45 am
BILLING CODE 4830-01-P
