[Federal Register Volume 64, Number 250 (Thursday, December 30, 1999)]
[Rules and Regulations]
[Pages 73408-73413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33515]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 31, 35a, 301, 502, 503, 509, 513, 514, 516, 517, 
520, 521, and 602

[TD 8856]
RIN 1545-AX44


General Revision of Regulations Relating to Withholding of Tax on 
Certain U.S. Source Income Paid to Foreign Persons and Related 
Collection, Refunds, and Credits; Revision of Information Reporting and 
Backup Withholding Regulations; and Removal of Regulations Under Parts 
1 and 35a and of Certain Regulations Under Income Tax Treaties

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final rule; delay of effective date.

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SUMMARY: This document contains changes delaying the effective date to 
final regulations (TD 8734), which were published in the Federal 
Register of 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 delay 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, 2000.

DATES: Effective Dates: The amendments in this final rule are effective 
January 1, 2001. As of December 31, 1999, the effective date of the 
final regulations published at 62 FR 53387, October 14, 1997, and 
delayed by TD 8804 (63 FR 72183, December 31, 1998), is delayed from 
January 1, 2000, until January 1, 2001; however, the effective date of 
the addition of Secs. 31.9999-0 and 35a.9999-0 and the removal of 
Sec. 35a.9999-0T remains October 14, 1997.

FOR FURTHER INFORMATION CONTACT: Laurie Hatten-Boyd, (202) 622-3840 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    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

    On April 29, 1999, in Notice 99-25 (1999-20 I.R.B. 1), the IRS and 
Treasury announced their decision to extend the effective date of the 
final regulations. When originally published in the Federal Register on 
October 14, 1997 (62 FR 53387), the final regulations were applicable 
to payments made after December 31, 1998 and, generally, granted 
withholding agents until after December 31, 1999, to obtain the new 
withholding certificates (Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY) and 
statements required under those regulations. On April 13, 1998, in 
Notice 98-16 (1998-15 I.R.B. 12), the IRS and Treasury announced the 
decision to extend the effective date of the final regulations to 
January 1, 2000 and to provide correlative extensions to the transition 
rules for obtaining new withholding certificates and statements. Those 
extensions were published on December 31, 1998 at 63 FR 72183 as TD 
8804. This amendment serves to make the final regulations applicable to 
payments made after December 31, 2000 and to require mandatory use of 
the new withholding certificates and statements for payments made after 
that date.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 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

    Income taxes, Reporting and recordkeeping requirements.

[[Page 73409]]

26 CFR Part 31

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

26 CFR Part 301

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

Adoption of Amendments to the Regulations

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

PART 1--INCOME TAXES

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

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

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


Sec. 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, 2000.
    (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, 2001 (see 26 CFR parts 1 and 35a, revised 
April 1, 1999) 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 regualtions in effect prior to January 1, 2001 (see 
26 CFR parts 1 and 35a, revised April 1, 1999) but in no event will 
such a form remain valid after 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 expired 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, 2001 (see 26 CFR parts 1 and 35a, revised April 1, 1999) 
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, 2001 
(see 26 CFR parts 1 and 35a, revised April 1, 1999). Further, a new 
withholding certificate remains valid for the period specified in 
Sec. 1.1441-1(e)(4)(ii), regardless of when the certificate is 
obtained.
    Par. 3. In Sec. 1.1441-1, as revised at 62 FR 53424 (TD 8734) and 
amended at 63 FR 72183 (TD 8804), paragraph (f) is revised to read as 
follows:


Sec. 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, 2000.
    (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 Sec. 1.1441-5 in effect 
prior to January 1, 2001 (see Sec. 1.1441-5 as contained in 26 CFR part 
1, revised April 1, 1999)) that was valid on January 1, 1998 under the 
regulations in effect prior to January 1, 2001 (see 26 CFR parts 1 and 
35a, revised April 1, 1999) 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, 2001 (see 26 CFR parts 1 and 35a, revised 
April 1, 1999) but in no event will such withholding certificate remain 
valid after December 31, 2001. 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, 2001 (see 26 CFR parts 1 and 35a, revised April 1, 1999) 
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, 2001 (see 26 CFR parts 1 and 35a, revised 
April 1, 1999). 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, 
2000.
    Par. 4. In Sec. 1.1441-4, as amended at 62 FR 53424 (TD 8734) and 
at 63 FR 72183 (TD 8804), paragraph (g) is revised to read as follows:


Sec. 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, 2000.
    (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, 2001 (see 26 CFR part 1, revised April 1, 1999) 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, 2001 (see 26 CFR part 1, 
revised April 1, 1999) but in no event will such form remain valid 
after 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, 2001 (see 26 CFR part 1, 
revised April 1, 1999) 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

[[Page 73410]]

documentation requirement under the regulations in effect prior to 
January 1, 2001 (see 26 CFR part 1, revised April 1, 1999). Further, a 
new withholding certificate remains valid for the period specified in 
Sec. 1.1441-1(e)(4)(ii), regardless of when the certificate is 
obtained.
    Par. 5. In Sec. 1.1441-5, as revised at 62 FR 53424 (TD 8734) and 
amended at 63 FR 72183 (TD 8804), paragraph (g) is revised to read as 
follows:


Sec. 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, 2000.
    (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, 2001 (see 26 CFR parts 1 and 35a, revised April 1, 
1999) 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, 2001 (see 
26 CFR parts 1 and 35a, revised April 1, 1999) but in no event will 
such a withholding certificate remain valid after 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, 2001 (see 26 CFR parts 1 and 35a, revised April 1, 
1999) 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, 2001 (see 26 CFR parts 1 
and 35a, revised April 1, 1999). Further, a new withholding certificate 
remains valid for the period specified in Sec. 1.1441-1(e)(4)(ii), 
regardless of when the certificate is obtained.
    Par. 6. In Sec. 1.1441-6, as revised at 62 FR 53424 (TD 8734) and 
amended at 63 FR 72183 (TD 8804), paragraph (g) is revised to read as 
follows:


Sec. 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, 2000.
    (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, 2001 (see 26 CFR parts 1 and 
35a, revised April 1, 1999) 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, 2001 (see 26 CFR parts 1 and 35a, revised April 1, 1999) but 
in no event will such a form remain valid after 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 
Sec. 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, 2001 (see 26 CFR parts 1 and 35a, revised April 1, 
1999) 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, 2001 (see 26 CFR parts 1 
and 35a, revised April 1, 1999). Further, a new withholding certificate 
remains valid for the period specified in Sec. 1.1441-1(e)(4)(ii), 
regardless of when the certificate is obtained.
    Par. 7. In Sec. 1.1441-8 as redesignated and amended at 62 FR 53464 
and amended at 63 FR 72138 (TD 8804), paragraph (f) is revised to read 
as follows:


Sec. 1.1441-8  Exemption from withholding for payments to foreign 
governments, international organizations, foreign central banks of 
issue, and the Bank for International Settlements.

* * * * *
    (f) Effective date--(1) In general. This section applies to 
payments made after December 31, 2000.
    (2) Transition rules. For purposes of this section, the validity of 
a Form 8709 that was valid on January 1, 1998, under the regulations in 
effect prior to January 1, 2001 (see 26 CFR part 1, revised April 1, 
1999) and expired, or will expire, at any time during 1998, is extended 
until December 31, 1998. The validity of a Form 8709 that is valid on 
or after January 1, 1999, remains valid until its validity expires 
under the regulations in effect prior to January 1, 2001 (see 26 CFR 
part 1, revised April 1, 1999) but in no event shall such a form remain 
valid after December 31, 2000. The rule in this paragraph (f)(2), 
however, does not apply to extend the validity period of a Form 8709 
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), a withholding agent may 
choose to not take advantage of the transition rule in this paragraph 
(f)(2) with respect to one or more withholding certificates valid under 
the regulations in effect prior to January 1, 2001 (see 26 CFR part 1, 
revised April 1, 1999) 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, 2001 
(see 26 CFR part 1, revised April 1, 1999). Further, a new withholding 
certificate remains valid for the period specified in Sec. 1.1441-
1(e)(4)(ii), regardless of when the certificate is obtained.
    Par. 8. In Sec. 1.1441-9, paragraph (d) is revised to read as 
follows:


Sec. 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, 2000.
    (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, 2001 (see 26 
CFR parts 1 and 35a, revised April 1, 1999) 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, 2001 (see 26 CFR 
parts 1 and 35a, revised April 1,

[[Page 73411]]

1999) but in no event shall such form or statement remain valid after 
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, 2001 (see 26 CFR parts 1 
and 35a, revised April 1, 1999) 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, 2001 
(see 26 CFR parts 1 and 35a, revised April 1, 1999). Further, a new 
withholding certificate remains valid for the period specified in 
Sec. 1.1441-1(e)(4)(ii), regardless of when the certificate is 
obtained.
    Par. 9. In Sec. 1.1443-1, as revised at 62 FR 53424 (TD 8734) and 
amended at 63 FR 72183 (TD 8804), paragraph (c) is revised to read as 
follows:


Sec. 1.1443-1  Foreign tax-exempt organizations.

* * * * *
    (c) Effective date--(1) In general. This section applies to 
payments made after December 31, 2000.
    (2) Transition rules. For purposes of this section, the validity of 
an affidavit or opinion of counsel described in Sec. 1.1443-1(b)(4)(i) 
in effect prior to January 1, 2001 (see Sec. 1.1443-1(b)(4)(i) as 
contained in 26 CFR part 1, revised April 1, 1999) 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, 2001 (see 26 CFR part 1, revised April 1, 
1999) 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, 2001 ( see 26 CFR part 1, 
revised April 1, 1999). Further, a new withholding certificate remains 
valid for the period specified in Sec. 1.1441-1(e)(4)(ii), regardless 
of when the certificate is obtained.
    Par. 10. In Sec. 1.6042-3, as amended at 62 FR 53424 (TD 8734) and 
amended at 63 FR 72183 (TD 8804), paragraph (b)(5) is revised to read 
as follows:


Sec. 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, 2000.
    (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, 2001 (see 
26 CFR parts 1 and 35a, revised April 1, 1999) 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, 2001 (see 26 CFR parts 1 and 
35a, revised April 1, 1999) but in no event shall such withholding 
certificate remain valid after 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, 2001 (see 26 CFR parts 1 and 35a, revised April 1, 
1999) 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, 2001 (see 26 CFR parts 1 
and 35a, revised April 1, 1999). Further, a new withholding certificate 
remains valid for the period specified in Sec. 1.1441-1(e)(4)(ii), 
regardless of when the certificate is obtained.
* * * * *
    Par. 11. In Sec. 1.6045-1, as amended at 62 FR 53424 (TD 8734) and 
amended at 63 FR 72183 (TD 8804), paragraph (g)(5) is revised to read 
as follows:


Sec. 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, 2000.
    (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, 2001 (see 
26 CFR parts 1 and 35a, revised April 1, 1999) 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, 2001 (see 26 CFR parts 1 and 
35a, revised April 1, 1999) but in no event shall such a withholding 
certificate remain valid after 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, 
2001 (see 26 CFR parts 1 and 35a, revised April 1, 1999) 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, 2001 (see 26 CFR parts 1 and 35a, revised 
April 1, 1999). Further, a new withholding certificate remains valid 
for the period specified in Sec. 1.1441-1(e)(4)(ii), regardless of when 
the certificate is obtained.
* * * * *
    Par. 12. In Sec. 1.6049-5, as amended at 62 FR 53424 (TD 8734) and 
amended at 63 FR 72183 (TD 8804), paragraph (g) is revised to read as 
follows:


Sec. 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

[[Page 73412]]

section apply to payments made after December 31, 2000.
    (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, 2001 (see 
26 CFR parts 1 and 35a, revised April 1, 1999) 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, 2001 (see 26 CFR parts 1 and 
35a, revised April 1, 1999) but in no event shall such a withholding 
certificate remain valid after 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, 2001 (see 26 
CFR parts 1 and 35a, revised April 1, 1999) 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, 2001 (see 26 CFR parts 1 and 35a, revised April 1, 1999). 
Further, a new withholding certificate remains valid for the period 
specified in Sec. 1.1441-1(e)(4)(ii), regardless of when the 
certificate is obtained.

PARTS 1, 31, AND 301--[AMENDED]

    Par. 13. In the list below, for each section indicated in the left 
column (which was added, revised, or amended at 62 FR 53387 (TD 8734) 
and further amended at 63 FR 72138 (TD 8804), remove the language in 
the middle column and add the language in the right column:

----------------------------------------------------------------------------------------------------------------
             Section                               Remove                                   Add
----------------------------------------------------------------------------------------------------------------
1.871-14(c)(3)(ii), Example,       October 12, 2000......................  October 12, 2001.
 first and sixth sentences.
1.871-14(c)(3)(ii), Example,       December 31, 2000.....................  December 31, 2001.
 sixth sentence.
1.871-14(c)(3)(ii), Example,       June 15, 2004.........................  June 15, 2005.
 sixth sentence.
1.871-14(c)(3)(ii), Example,       June 15, 2004.........................  June 15, 2005.
 seventh sentence.
 
1.1441-1(b)(4)(xix)..............  January 1, 2000.......................  January 1, 2001.
1.1441-1(b)(4)(xix)..............  April 1, 1998.........................  April 1, 1999.
1.1441-1(b)(7)(v), Example 1,      June 15, 2000.........................  June 15, 2001.
 first, fourth, and eighth
 sentences.
1.1441-1(b)(7)(v), Example 1,      September 30, 2002....................  September 30, 2003.
 third and ninth sentences.
1.1441-1(b)(7)(v), Example 1,      March 15, 2001........................  March 15, 2002.
 ninth sentence.
1.1441-1(b)(7)(v), Example 2,      June 15, 2000.........................  June 15, 2001.
 first, fourth, and seventh
 sentences.
1.1441-1(b)(7)(v), Example 2,      September 30, 2002....................  September 30, 2003.
 third and seventh sentences.
1.1441-1(b)(7)(v), Example 2,      March 15, 2001........................  March 15, 2002.
 seventh and ninth sentences.
1.1441-1(c)(6)(ii)(B)............  January 1, 2000.......................  January 1, 2001.
1.1441-1(c)(6)(ii)(B)............  April 1, 1998.........................  April 1, 1999.
1.1441-1(e)(4)(ii)(A)............  September 30, 2000....................  September 30, 2001.
1.1441-1(e)(4)(ii)(A)............  December 31, 2003.....................  December 31, 2004.
1.1441-2(b)(3)(iv)...............  December 31, 1999.....................  December 31, 2000.
1.1441-2(f)......................  December 31, 1999.....................  December 31, 2000.
1.1441-3(h)......................  December 31, 1999.....................  December 31, 2000.
1.1441-7(g)......................  December 31, 1999.....................  December 31, 2000.
1.1461-1(i)......................  December 31, 1999.....................  December 31, 2000.
1.1461-2(a)(4), Example 1(i),      December 2000.........................  December 2001.
 second sentence.
1.1461-2(a)(4), Example 1(i),      February 10, 2001.....................  February 10, 2002.
 third sentence.
1.1461-2(a)(4), Example 1(ii),     2000..................................  2001.
 first, second, and last
 sentences.
1.1461-2(a)(4), Example 1(ii),     March 15, 2001........................  March 15, 2002.
 first sentence.
1.1461-2(a)(4), Example 1(ii),     2001..................................  2002.
 third sentence.
1.1461-2(a)(4), Example 2, second  2001..................................  2002.
 and last sentences.
1.1461-2(a)(4), Example 2, second  June 2001.............................  June 2002.
 sentence.
1.1461-2(a)(4), Example 2, third   July 15, 2001.........................  July 15, 2002.
 sentence.
1.1461-2(a)(4), Example 2, third   2000..................................  2001.
 sentence.
1.1461-2(a)(4), Example 2, last    March 15, 2002........................  March 15, 2003.
 sentence.
1.1461-2(a)(4), Example 3, last    February 15, 2001.....................  February 15, 2002.
 sentence.
1.1461-2(a)(4), Example 3, last    March 15, 2001........................  March 15, 2002.
 sentence.
1.1461-2(d)......................  December 31, 1999.....................  December 31, 2000.
1.1462-1(c)......................  December 31, 1999.....................  December 31, 2000.
1.1463-1(b)......................  December 31, 1999.....................  December 31, 2000.
1.6041-4(d)......................  December 31, 1999.....................  December 31, 2000.
1.6041A-1(d)(3)(v)...............  December 31, 1999.....................  December 31, 2000.
1.6045-1(d)(6)(ii)(B)............  December 31, 1999.....................  December 31, 2000.
1.6049-4(d)(3)(ii)(B)............  December 31, 1999.....................  December 31, 2000.
1.6049-5(c)(4)(v)................  January 1, 2000.......................  January 1, 2001.
1.6050N-1(e), last sentence......  December 31, 1999.....................  December 31, 2000.
31.3401(a)(6)-1(e), paragraph      January 1, 2000.......................  January 1, 2001.
 heading.
31.3401(a)(6)-1(e), first          January 1, 2000.......................  January 1, 2001.
 sentence.
31.3401(a)(6)-1(f), paragraph      December 31, 1999.....................  December 31, 2000.
 heading.
31.3401(a)(6)-1(f), first          December 31, 1999.....................  December 31, 2000.
 sentence.
31.3406(g)-1(e), first sentence..  December 31, 1999.....................  December 31, 2000.
31.3406(h)-2(d), penultimate       December 31, 1999.....................  December 31, 2000.
 sentence.
31.9999-0........................  January 1, 2000.......................  January 1, 2001.

[[Page 73413]]

 
301.6114-1(b)(4)(ii)(C),           December 31, 1999.....................  December 31, 2000.
 introductory text.
301.6114-1(b)(4)(ii)(D)..........  December 31, 1999.....................  December 31, 2000.
301.6724-1(g)(2) Q-11............  January 1, 2000.......................  January 1, 2001.
301.6724-1(g)(2) Q-11............  April 1, 1998.........................  April 1, 1999.
301.6724-1(g)(2) A-11............  January 1, 2000.......................  January 1, 2001.
301.6724-1(g)(2) A-11............  April 1, 1998.........................  April 1, 1999.
301.6724-1(g)(3), first sentence.  December 31, 1999.....................  December 31, 2000.
301.6724-1(g)(3), last sentence..  January 1, 2000.......................  January 1, 2001.
301.6724-1(g)(3), last sentence..  April 1, 1998.........................  April 1, 1999.
----------------------------------------------------------------------------------------------------------------

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
    Approved: December 21, 1999.
Jonathan Talisman,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 99-33515 Filed 12-29-99; 8:45 am]
BILLING CODE 4830-01-P