| Page Range | 49508-49510 | |
| FR Document | 2017-22830 |
[Federal Register Volume 82, Number 206 (Thursday, October 26, 2017)] [Rules and Regulations] [Pages 49508-49510] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-22830] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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 0 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] 0 Par. 2. Section 1.871-15 is amended by: 0 1. Removing paragraph (r)(2). 0 2. Redesignating paragraphs (r)(3), (4), and (5), as (r)(2), (3), and (4), respectively. Sec. 1.871-15 [Amended] 0 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: ------------------------------------------------------------------------ Section Remove Add ------------------------------------------------------------------------ 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 ------------------------------------------------------------------------ Sec. 1.871-15T [Amended] 0 Par. 4. Section 1.871-15T is amended by redesignating paragraph (r)(5) as (r)(4). Sec. 1.871-15T [Amended] 0 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: ------------------------------------------------------------------------ Section Remove Add ------------------------------------------------------------------------ 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. ------------------------------------------------------------------------ Sec. 1.1441-1 [Amended] 0 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: ------------------------------------------------------------------------ Section Remove Add ------------------------------------------------------------------------ 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) ------------------------------------------------------------------------ 0 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] 0 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: ------------------------------------------------------------------------ Section Remove Add ------------------------------------------------------------------------ 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 ------------------------------------------------------------------------ Sec. 1.1441-7 [Amended] 0 Par. 9. Section 1.1441-7 is amended by removing the second sentence of paragraph (a)(4). Sec. 1.1441-7 [Amended] 0 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: ------------------------------------------------------------------------ Section Remove Add ------------------------------------------------------------------------ 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 ------------------------------------------------------------------------ [[Page 49510]] 0 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
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final regulations and temporary regulations; Correcting amendments. | |
| Dates | Effective Date: These corrections are effective October 26, 2017. | |
| Contact | D. Peter Merkel or Karen Walny at 202- 317-6938 (not a toll-free number). | |
| FR Citation | 82 FR 49508 | |
| RIN Number | 1545-BM33 | |
| CFR Associated | Income Taxes and Reporting and Recordkeeping Requirements |