[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

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