January 2 2020

Final regulations issued on withholding and reporting tax on certain US source income paid to foreign persons

Source: IBFD Tax Research Platform News

The US Treasury Department and the US Internal Revenue Service (IRS) released final regulations (TD 9890) to provide guidance on certain due diligence and reporting rules applicable to persons making certain US source payments to foreign persons, and guidance on certain aspects of reporting by foreign financial institutions on US accounts.

The final regulations were published in the Federal Register on 2 January 2020.

The final regulations incorporate the modifications in the proposed regulations (REG-132881-17) that were published on 18 December 2018.

The final regulations are designated Treasury Regulations sections 1.1441.-0, 1.1441-1, 1.1441-2, 1.1441-6, 1.1441-7, 1.1471-0, 1.1471-3, 1.1471-4, 1.1474-1, and 1.6049-6.

The final regulations are effective on 2 January 2020.

The final regulations contain various applicability dates.