[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
