I.R.C. § 1445(a) General Rule —
Except as otherwise provided in this section, in the case of any disposition of a
United States real property interest
(as defined in section 897(c))
by a foreign person, the transferee shall be required to deduct and withhold a tax
equal to 15 percent of the amount realized on the disposition.
I.R.C. § 1445(b) Exemptions
I.R.C. § 1445(b)(1) In General —
No person shall be required to deduct and withhold any amount under subsection (a)
with respect to a disposition if paragraph (2), (3), (4), (5), or (6) applies to
the transaction.
I.R.C. § 1445(b)(2) Transferor Furnishes Nonforeign Affidavit —
Except as provided in paragraph (7), this paragraph applies to the disposition if
the transferor furnishes to the transferee an affidavit by the transferor stating,
under penalty of perjury, the transferor's United States taxpayer identification
number and that the transferor is not a foreign person.
I.R.C. § 1445(b)(3) Nonpublicly Traded Domestic Corporation Furnishes Affidavit That Interests In Corporation
Not United States Real Property Interests —
Except as provided in paragraph (7), this paragraph applies in the case of a disposition
of any interest in any domestic corporation if the domestic corporation furnishes
to the transferee an affidavit by the domestic corporation stating, under penalty
of perjury, that—
I.R.C. § 1445(b)(3)(A) —
the domestic corporation is not and has not been a United States real property holding
corporation (as defined in section 897(c)(2))
during the applicable period specified in section 897(c)(1)(A)(ii), or
I.R.C. § 1445(b)(3)(B) —
as of the date of the disposition, interests in such corporation are not United
States real property interests by reason of section 897(c)(1)(B).
I.R.C. § 1445(b)(4) Transferee Receives Qualifying Statement
I.R.C. § 1445(b)(4)(A) In General —
This paragraph applies to the disposition if the transferee receives a qualifying
statement at such time, in such manner, and subject to such terms and conditions
as the Secretary may by regulations prescribe.
I.R.C. § 1445(b)(4)(B) Qualifying Statement —
For purposes of subparagraph (A), the term “qualifying statement” means a statement
by the Secretary that—
I.R.C. § 1445(b)(4)(B)(i) —
the transferor either—
I.R.C. § 1445(b)(4)(B)(i)(I) —
has reached agreement with the Secretary
(or such agreement has been reached by the transferee) for the payment of any tax
imposed by section 871(b)(1)
or 882(a)(1) on any gain recognized by the transferor on the disposition of the United States
real property interest, or
I.R.C. § 1445(b)(4)(B)(i)(II) —
is exempt from any tax imposed by section 871(b)(1) or 882(a)(1) on any gain recognized by the transferor on the disposition of the United States
real property interest, and
I.R.C. § 1445(b)(4)(B)(ii) —
the transferor or transferee has satisfied any transferor's unsatisfied withholding
liability or has provided adequate security to cover such liability.
I.R.C. § 1445(b)(5) Residence Where Amount Realized Does Not Exceed $300,000 —
This paragraph applies to the disposition if—
I.R.C. § 1445(b)(5)(A) —
the property is acquired by the transferee for use by him as a residence, and
I.R.C. § 1445(b)(5)(B) —
the amount realized for the property does not exceed $300,000.
I.R.C. § 1445(b)(6) Stock Regularly Traded On Established Securities Market —
This paragraph applies if the disposition is of a share of a class of stock that
is regularly traded on an established securities market.
I.R.C. § 1445(b)(7) Special Rules For Paragraphs (2), (3), And (9) —
Paragraph (2), (3), or (9) (as the case may be) shall not apply to any disposition—
I.R.C. § 1445(b)(7)(A) —
if—
I.R.C. § 1445(b)(7)(A)(i) —
the transferee or qualified substitute has actual knowledge that the affidavit referred
to in such paragraph, or the statement referred to in paragraph (9)(A)(ii), is false,
or
I.R.C. § 1445(b)(7)(A)(ii) —
the transferee or qualified substitute receives a notice (as described in subsection
(d)) from a transferor's agent, transferee's agent, or qualified substitute that such
affidavit or statement is false, or
I.R.C. § 1445(b)(7)(B) —
if the Secretary by regulations requires the transferee or qualified substitute to
furnish a copy of such affidavit or statement to the Secretary and the transferee
or qualified substitute fails to furnish a copy of such affidavit or statement to
the Secretary at such time and in such manner as required by such regulations.
I.R.C. § 1445(b)(8) Applicable Wash Sales Transactions —
No person shall be required to deduct and withhold any amount under subsection (a)
with respect to a disposition which is treated as a disposition of a United States
real property interest solely by reason of section 897(h)(5).
I.R.C. § 1445(b)(9) Alternative Procedure For Furnishing Nonforeign Affidavit —
For purposes of paragraphs (2) and (7)—
I.R.C. § 1445(b)(9)(A) In General —
Paragraph (2) shall be treated as applying to a transaction if, in connection with
a disposition of a United States real property interest—
I.R.C. § 1445(b)(9)(A)(i) —
the affidavit specified in paragraph
(2) is furnished to a qualified substitute, and
I.R.C. § 1445(b)(9)(A)(ii) —
the qualified substitute furnishes a statement to the transferee stating, under penalty
of perjury, that the qualified substitute has such affidavit in his possession.
I.R.C. § 1445(b)(9)(B) Regulations —
The Secretary shall prescribe such regulations as may be necessary or appropriate
to carry out this paragraph.
I.R.C. § 1445(c) Limitations On Amount Required To Be Withheld
I.R.C. § 1445(c)(1) Cannot Exceed Transferor's Maximum Tax Liability
I.R.C. § 1445(c)(1)(A) In General —
The amount required to be withheld under this section with respect to any disposition
shall not exceed the amount (if any)
determined under subparagraph (B) as the transferor's maximum tax liability.
I.R.C. § 1445(c)(1)(B) Request —
At the request of the transferor or transferee, the Secretary shall determine, with
respect to any disposition, the transferor's maximum tax liability.
I.R.C. § 1445(c)(1)(C) Refund Of Excess Amounts Withheld —
Subject to such terms and conditions as the Secretary may by regulations prescribe,
a transferor may seek and obtain a refund of any amounts withheld under this section
in excess of the transferor's maximum tax liability.
I.R.C. § 1445(c)(2) Authority Of Secretary To Prescribe Reduced Amount —
At the request of the transferor or transferee, the Secretary may prescribe a reduced
amount to be withheld under this section if the Secretary determines that to substitute
such reduced amount will not jeopardize the collection of the tax imposed by section
871(b)(1) or 882(a)(1).
I.R.C. § 1445(c)(3) Procedural Rules
I.R.C. § 1445(c)(3)(A) Regulations —
Requests for—
I.R.C. § 1445(c)(3)(A)(i) —
qualifying statements under subsection
(b)(4),
I.R.C. § 1445(c)(3)(A)(ii) —
determinations of transferor's maximum tax liability under paragraph (1), and
I.R.C. § 1445(c)(3)(A)(iii) —
reductions under paragraph (2) in the amount required to be withheld,
shall be made at the time and manner, and shall include such information, as the
Secretary shall prescribe by regulations.
I.R.C. § 1445(c)(3)(B) Requests To Be Handled Within 90 Days —
The Secretary shall take action with respect to any request described in subparagraph
(A) within 90 days after the Secretary receives the request.
I.R.C. § 1445(c)(4) Reduced Rate Of Withholding For Residence Where Amount Realized Does Not Exceed $1,000,000 —
In the case of a disposition—
I.R.C. § 1445(c)(4)(A) —
of property which is acquired by the transferee for use by the transferee as a residence,
I.R.C. § 1445(c)(4)(B) —
with respect to which the amount realized for such property does not exceed $1,000,000,
and
I.R.C. § 1445(c)(4)(C) —
to which subsection (b)(5) does not apply,
subsection (a) shall be applied by substituting “10 percent” for “15 percent”.
I.R.C. § 1445(d) Liability Of Transferor's Agents, Transferee's Agents, Or Qualified Substitutes
I.R.C. § 1445(d)(1) Notice Of False Affidavit; Foreign Corporations —
If—
I.R.C. § 1445(d)(1)(A) —
the transferor furnishes the transferee or qualified substitute an affidavit described
in paragraph (2) of subsection (b) or a domestic corporation furnishes the transferee
an affidavit described in paragraph (3) of subsection (b), and
I.R.C. § 1445(d)(1)(B) —
in the case of—
I.R.C. § 1445(d)(1)(B)(i) —
any transferor's agent—
I.R.C. § 1445(d)(1)(B)(i)(I) —
such agent has actual knowledge that such affidavit is false, or
I.R.C. § 1445(d)(1)(B)(i)(II) —
in the case of an affidavit described in subsection (b)(2) furnished by a corporation,
such corporation is a foreign corporation, or
I.R.C. § 1445(d)(1)(B)(ii) —
any transferee's agent or qualified substitute, such agent or substitute has actual
knowledge that such affidavit is false, such agent or qualified substitute shall so
notify the transferee at such time and in such manner as the Secretary shall require
by regulations.
I.R.C. § 1445(d)(2) Failure To Furnish Notice
I.R.C. § 1445(d)(2)(A) In General —
If any transferor's agent, transferee's agent, or qualified substitute is required
by paragraph (1) to furnish notice, but fails to furnish such notice at such time
or times and in such manner as may be required by regulations, such agent or substitute
shall have the same duty to deduct and withhold that the transferee would have had
if such agent or substitute had complied with paragraph (1).
I.R.C. § 1445(d)(2)(B) Liability Limited To Amount Of Compensation —
An agent's or substitute's liability under subparagraph
(A) shall be limited to the amount of compensation the agent or substitute derives
from the transaction.
I.R.C. § 1445(d)(3) Transferor's Agent —
For purposes of this subsection, the term “transferor's agent” means any person
who represents the transferor—
I.R.C. § 1445(d)(3)(A) —
in any negotiation with the transferee or any transferee's agent related to the
transaction, or
I.R.C. § 1445(d)(3)(B) —
in settling the transaction.
I.R.C. § 1445(d)(4) Transferee's Agent —
For purposes of this subsection, the term “transferee's agent” means any person
who represents the transferee—
I.R.C. § 1445(d)(4)(A) —
in any negotiation with the transferor or any transferor's agent related to the
transaction, or
I.R.C. § 1445(d)(4)(B) —
in settling the transaction.
I.R.C. § 1445(d)(5) Settlement Officer Not Treated As Transferor's Agent —
For purposes of this subsection, a person shall not be treated as a transferor's
agent or transferee's agent with respect to any transaction merely because such person
performs 1 or more of the following acts:
I.R.C. § 1445(d)(5)(A) —
The receipt and the disbursement of any portion of the consideration for the transaction.
I.R.C. § 1445(d)(5)(B) —
The recording of any document in connection with the transaction.
I.R.C. § 1445(e) Special Rules Relating To Distributions, Etc., By Corporations, Partnerships, Trusts,
Or Estates
I.R.C. § 1445(e)(1) Certain Domestic Partnerships, Trusts, And Estates —
In the case of any disposition of a United States real property interest as defined
in section 897(c) (other than a disposition described in paragraph (4) or (5)) by a domestic partnership,
domestic trust, or domestic estate, such partnership, the trustee of such trust,
or the executor of such estate (as the case may be) shall be required to deduct and
withhold under subsection
(a) a tax equal to the highest rate of tax in effect for the taxable year under section
11(b) (or, to the extent provided in regulations, 20 percent) multiplied by the gain
realized to the extent such gain--
I.R.C. § 1445(e)(1)(A) —
is allocable to a foreign person who is a partner or beneficiary of such partnership,
trust, or estate, or
I.R.C. § 1445(e)(1)(B) —
is allocable to a portion of the trust treated as owned by a foreign person under
subpart E of part I of subchapter J.
I.R.C. § 1445(e)(2) Certain Distributions By Foreign Corporations —
In the case of any distribution by a foreign corporation on which gain is recognized
under subsection
(d) or (e) of section 897, the foreign corporation shall deduct and withhold under subsection
(a) a tax equal to the highest rate of tax in effect for the taxable year under section
11(b) multiplied by the amount of gain recognized on such distribution under such
subsection.
I.R.C. § 1445(e)(3) Distributions By Certain Domestic Corporations To Foreign Shareholders —
If a domestic corporation which is or has been a United States real property holding
corporation (as defined in section 897(c)(2)) during the applicable period specified in section 897(c)(1)(A)(ii) distributes
property to a foreign person in a transaction to which section 302 or part II of subchapter C applies, such corporation shall deduct and withhold
under subsection
(a) a tax equal to 15 percent of the amount realized by the foreign shareholder.
The preceding sentence shall not apply if, as of the date of the distribution, interests
in such corporation are not United
States real property interests by reason of section 897(c)(1)(B). Rules
similar to the rules of the preceding provisions of this paragraph shall apply in
the case of any distribution to which section 301 applies and which is not made out of the earnings and profits of such a domestic
corporation.
I.R.C. § 1445(e)(4) Taxable Distributions By Domestic Or Foreign Partnerships, Trusts, Or Estates —
A domestic or foreign partnership, the trustee of a domestic or foreign trust, or
the executor of a domestic or foreign estate shall be required to deduct and withhold
under subsection
(a) a tax equal to 15 percent of the fair market value (as of the time of the taxable
distribution) of any United States real property interest distributed to a partner
of the partnership or a beneficiary of the trust or estate, as the case may be,
who is a foreign person in a transaction which would constitute a taxable distribution
under the regulations promulgated by the Secretary pursuant to section 897.
I.R.C. § 1445(e)(5) Rules Relating To Dispositions Of Interest In Partnerships, Trusts, Or Estates —
To the extent provided in regulations, the transferee of a partnership interest
or of a beneficial interest in a trust or estate shall be required to deduct and
withhold under subsection
(a) a tax equal to 15 percent of the amount realized on the disposition.
I.R.C. § 1445(e)(6) Distributions By Regulated Investment Companies And Real Estate
Investment Trusts —
If any portion of a distribution from a qualified investment entity (as defined
in section 897(h)(4)) to a nonresident alien individual or a foreign corporation is treated under section
897(h)(1) as gain realized by such individual or corporation from the sale or exchange of
a United States real property interest, the qualified investment entity shall deduct
and withhold under subsection (a) a tax equal to the highest rate of tax in effect
for the taxable year under section 11(b) (or, to the extent provided in regulations,
20 percent) multiplied by the amount so treated.
I.R.C. § 1445(e)(7) Regulations —
The Secretary shall prescribe such regulations as may be necessary to carry out
the purposes of this subsection, including regulations providing for exceptions from
provisions of this subsection and regulations for the application of this subsection
in the case of payments through 1 or more entities.
I.R.C. § 1445(f) Definitions —
For purposes of this section—
I.R.C. § 1445(f)(1) Transferor —
The term “transferor” means the person disposing of the United States real property
interest.
I.R.C. § 1445(f)(2) Transferee —
The term “transferee” means the person acquiring the United States real property
interest.
I.R.C. § 1445(f)(3) Foreign Person —
The term “foreign person” means any person other than—
I.R.C. § 1445(f)(3)(A) —
a United States person, and
I.R.C. § 1445(f)(3)(B) —
except as otherwise provided by the Secretary, an entity with respect to which section
897 does not apply by reason of subsection (l) thereof.
I.R.C. § 1445(f)(4) Transferor's Maximum Tax Liability —
The term “transferor's maximum tax liability” means, with respect to the disposition
of any interest, the sum of—
I.R.C. § 1445(f)(4)(A) —
the maximum amount which the Secretary determines could be imposed as tax under
section 871(b)(1) or 882(a)(1) by reason of the disposition, plus
I.R.C. § 1445(f)(4)(B) —
the amount the Secretary determines to be the transferor's unsatisfied withholding
liability with respect to such interest.
I.R.C. § 1445(f)(5) Transferor's Unsatisfied Withholding Liability —
The term “transferor's unsatisfied withholding liability"
means the withholding obligation imposed by this section on the transferor's
acquisition of the United States real property interest or on the
acquisition of a predecessor interest, to the extent such obligation has not been
satisfied.
I.R.C. § 1445(f)(6) Qualified Substitute —
The term “qualified substitute” means, with respect to a disposition of a United States
real property interest—
I.R.C. § 1445(f)(6)(A) —
the person (including any attorney or title company) responsible for closing the transaction,
other than the transferor's agent, and
I.R.C. § 1445(f)(6)(B) —
the transferee's agent.
(Added by Pub. L. 98-369, div. A, title I, 129(a)(1), July 18, 1984, 98 Stat. 655, and amended Pub. L. 99-514, title III, 311(b)(4), title XVIII, 1810(f)(2)-(4)(A), (5), (6), (8), Oct. 22, 1986,
100 Stat.
2219, 2827, 2828; Pub. L. 100-647, title I, 1003(b)(3), Nov. 10, 1988, 102 Stat. 3384; Pub. L. 103-66, title XIII, Sec. 13221(c)(3), Aug. 10, 1993, 107 Stat. 312; Pub. L. 105-34, title III, Sec. 311(c)(1), Aug. 5, 1997, 111 Stat 788; Pub. L. 108-27, title III, Sec. 301(a)(2), May 28, 2003, 117 Stat. 752; Pub. L. 109-222, title V, Sec. 505(b), 506(b), May 17, 2006, 120 Stat. 345; Pub. L. 110-289, div. C, title I, Sec. 3024, July 30, 2008, 122 Stat. 2654: Pub. L. 112-240, title I, Sec. 102(c), Jan. 2, 2013, 126 Stat. 2313; Pub. L. 114-113, Div. Q, title III, Sec. 323(b), 324; Pub. L. 115-97, title I, Sec. 13001(b)(3), Dec. 22, 2017, 131 Stat. 2054.)
BACKGROUND NOTES
AMENDMENTS
2017 -
Subsec. (e)(1). Pub. L. 115-97, Sec. 13001(b)(3)(A), amended par. (1) by substituting “the highest rate of tax in
effect for the taxable year under section 11(b)”
for “35 percent”; and “multiplied by the gain”
for “of the gain”.
Subsec. (e)(2). Pub. L. 115-97, Sec. 13001(b)(3)(B), amended par. (2) by substituting “the highest rate of tax in
effect for the taxable year under section 11(b)
multiplied by the amount” for “35 percent of the amount”.
Subsec. (e)(6). Pub. L. 115-97, Sec. 13001(b)(3)(C), amended par. (6) by substituting “the highest rate of tax in
effect for the taxable year under section 11(b)”
for “35 percent”; and “multiplied by the amount”
for “of the amount”.
2015 - Subsec. (a). Pub. L. 114-113, Div. Q, Sec. 324(a), amended subsec. (a) by substituting “15 percent” for “10 percent”.
Subsec. (c)(4). Pub. L. 114-113, Div. Q, Sec. 324(b), added par. (4).
Subsec. (e)(3). Pub. L. 114-113, Div. Q, Sec. 324(a), amended par. (3) by substituting “15 percent” for “10 percent”.
Subsec. (e)(4). Pub. L. 114-113, Div. Q, Sec. 324(a), amended par. (4) by substituting “15 percent” for “10 percent”.
Subsec. (e)(5). Pub. L. 114-113, Div. Q, Sec. 324(a), amended par. (5) by substituting “15 percent” for “10 percent”.
Subsec. (f)(3). Pub. L. 114-113, Div. Q, Sec. 323(b), amended par. (3) by substituting “any person other than—” and
subpar. (A) and (B) for “any person other than a United States person.”.
2013 - Subsec. (e)(1). Pub. L. 112-240, Sec. 102(c)(1)(C), amended par. (1) by substituting “20 percent” for “15 percent”.
Subsec. (e)(6). Pub. L. 112-240, Sec. 102(c)(3), amended par. (6) by substituting “20 percent” for “15 percent (20 percent in the
case of taxable years beginning after December 31, 2010)”.
2008 - Subsec. (b)(7). Pub. L. 110-289, Sec. 3024(c)(1), amended par. (7). Before amendment, it read as follows:
“(7) Special Rules For Paragraphs (2) And
(3).— Paragraph (2) or (3) (as the case may be) shall not apply to any disposition--
“(A) if--
“(i) the transferee has actual knowledge that the affidavit referred to in such
paragraph is false, or
“(ii) the transferee receives a notice (as described in subsection (d)) from a transferor's
agent or a transferee's agent that such affidavit is false, or
“(B) if the Secretary by regulations requires the transferee to furnish a copy of
such affidavit to the Secretary and the transferee fails to furnish a copy of such
affidavit to the Secretary at such time and in such manner as required by such regulations.”
Subsec. (b)(9). Pub. L. 110-289, Sec. 3024(a), amended subsec. (b) by adding par. (9).
Subsec. (d). Pub. L. 110-289, Sec. 3024(c)(2)(C), amended the heading of subsec.
(d) by substituting “, Transferee's Agents, Or Qualified Substitutes”
for “Or Transferee's Agents”.
Subsec. (d)(1). Pub. L. 110-289, Sec. 3024(c)(2)(A), amended par. (1). Before amendment it read as follows:
“(1) Notice Of False Affidavit; Foreign Corporations.—
If--
“(A) the transferor furnishes the transferee an affidavit described in paragraph
(2) of subsection (b) or a domestic corporation furnishes the transferee an affidavit
described in paragraph
(3) of subsection (b), and
“(B) in the case of--
“(i) any transferor's agent--
“(I) such agent has actual knowledge that such affidavit is false, or
“(II) in the case of an affidavit described in subsection (b)(2) furnished by a
corporation, such corporation is a foreign corporation, or
“(ii) any transferee's agent, such agent has actual knowledge that such affidavit
is false, such agent shall so notify the transferee at such time and in such manner
as the Secretary shall require by regulations.”
Subsec. (d)(2). Pub. L. 110-289, Sec. 3024(c)(2)(B), amended par. (2). Before amendment, it read as follows:
“(2) Failure To Furnish Notice.—
“(A) In General.— If any transferor's agent or transferee's agent is required by
paragraph (1) to furnish notice, but fails to furnish such notice at such time or
times and in such manner as may be required by regulations, such agent shall
have the same duty to deduct and withhold that the transferee would have had if such
agent had complied with paragraph (1).
“(B) Liability Limited To Amount Of Compensation.—An
agent's liability under subparagraph (A) shall be limited to the amount of compensation
the agent derives from the transaction.”
Subsec. (f)(6). Pub. L. 110-289, Sec. 3024(b), amended subsec. (f) by adding par. (6).
2006--Subsec. (b)(8). Pub. L. 109-222, Sec. 506(b), added par. (8).
Subsec. (e)(6)-(7). Pub. L. 109-222, Sec. 505(b), redesignated par. (6) as par. (7)
and added a new par. (6).
2003--Subsec. (e)(1). Pub. L. 108-27, Sec. 301(a)(2), substituted “15 percent” for “20 percent”.
1997--Subsec. (e)(1). Pub. L. 105-34, Sec. 311(c)(1) substituted
“20 percent” for “28 percent”.
1996--Subsec. (e)(3). Pub. L. 104-188, 1704(c)(1), added the sentence at the end.
1993—Subsec. (e)(1)-(2). Pub. L. 103-66, Sec. 13221(c)(3), amended pars. (1) and (2) by substituting “35 percent”
for “34 percent”.
1988--Subsec. (e)(1). Pub. L. 100-647 inserted “(or, to the extent provided in regulations, 28 percent)” after “to 34 percent”.
1986--Subsec. (b)(3). Pub. L. 99-514, 1810(f)(2), amended par.
(3) generally, substituting “interests in corporation not United States real property
interests” for “it is not a United States real property holding corporation” in heading,
striking out the comma before “if the domestic corporation” in introductory provisions,
inserting subpar.
(A) designation and adding subpar. (B).
Subsec. (d)(1)(A). Pub. L. 99-514, 1810(f)(3)(B), substituted “paragraph (2)” for
“paragraph (2)(A)”.
Subsec. (d)(1)(B)(i). Pub. L. 99-514, 1810(f)(3)(A), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows:
“any transferor's agent, the transferor is a foreign corporation or such agent has
actual knowledge that such affidavit is false, or”.
Subsec. (e)(1). Pub. L. 99-514, 311(b)(4), substituted “34 percent” for “28 percent”.
Pub. L. 99-514, 1810(f)(4), amended par. (1) generally. Prior to amendment, par. (1)
read as follows: “A domestic partnership, the trustee of a domestic trust, or the
executor of a domestic estate shall be required to deduct and withhold under subsection
(a) a tax equal to 10 percent of any amount of which such partnership, trustee, or
executor has custody which is--
“(A) attributable to the disposition of a United States real property interest (as
defined in section 897(c), other than a disposition described in paragraph (4) or
(5)), and
“(B) either--
“(i) includible in the distributive share of a partner of the partnership who is a
foreign person,
“(ii) includible in the income of a beneficiary of the trust or estate who is a foreign
person, or
“(iii) includible in the income of a foreign person under the provisions of section
671.”
Subsec. (e)(2). Pub. L. 99-514, 311(b)(4), substituted “34 percent” for “28 percent”.
Subsec. (e)(3). Pub. L. 99-514, 1810(f)(5), inserted “The preceding sentence shall not apply if, as of the date
of the distribution, interests in such corporation are not United States real property
interests by reason of section 897(c)(1)(B).”
Subsec. (e)(4). Pub. L. 99-514, 1810(f)(6), substituted “section 897” for “section 897(g)”.
Subsec. (e)(6). Pub. L. 99-514, 1810(f)(8), inserted “and regulations for the application of this subsection in
the case of payments through 1 or more entities”.
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendments by Pub. L. 115-97, Sec. 13001(b)(3), effective for distributions made after December 31, 2017.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendment by Pub. L. 114-113, Div. Q, Sec. 323(b), effective for dispositions and distributions after the date
of the enactment of this Act.
Amendments by Pub. L. 114-113, Div. Q, Sec. 324, effective for dispositions after the date which is 60 days after
the date of the enactment of this Act.
EFFECTIVE DATE OF 2013 AMENDMENT
Amendment by Sec. 102(c) of Pub. L. 112-240 effective for amounts paid on or after January 1, 2013.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Sec. 3024 of Pub. L. 110-289 effective for dispositions of United States real property interests after the date
of the enactment of this Act [Enacted: July 30, 2008].
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendment by Pub. L. 109-222, Sec. 505(b), effective for taxable years of
qualified investment entities beginning after December 31, 2005, except that no amount
shall be required to be withheld under section 1441, 1442, or 1445 of the Internal Revenue Code of 1986 with respect to any distribution before the date of the enactment of this
Act [Enacted: May 17, 2006] if such amount was not otherwise required to be withheld
under any such section as in effect before such amendments.
Amendment by Pub. L. 109-222, Sec. 506(b), effective for taxable years beginning after December 31, 2005, except that such
amendments shall not apply to any distribution, or substitute dividend payment, occurring
before the date that is 30 days after the date of the enactment of this Act [Enacted:
May 17, 2006].
EFFECTIVE DATE OF 2003 AMENDMENT
Amendment by section 301(a)(2) of Pub. L. 108-27 applicable to amounts paid after the date of the enactment of this Act [Enacted:
May 28, 2003].
Section 303 (Sunset of Title) of Pub. L. 108-27, as amended by Pub. L. Pub. L. 111-312, Sec. 102, and struck by Pub. L. 112-240, Sec. 102(a) (effective for taxable years beginning after Dec. 31, 2012), provided that:
“All provisions of, and amendments made by, this title shall not apply to taxable
years beginning after December 31, 2012, and the Internal Revenue Code of 1986 shall
be applied and administered to such years as if such provisions and amendments had
never been enacted.”
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 311(c)(1) of Pub. L. 105-34 applicable only to amounts paid after the date of the enactment of such Act [enacted:
Aug. 5, 1997].
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1704(c)(2) of Pub. L. 104-188 provided that: “The amendment made by paragraph
(1) shall apply to distributions after the date of the enactment of this Act [August
20, 1996].
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by section 13221(c)(3)
of Pub. L. 103-66 effective on August 10, 1993.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 1003(b)(3) of Pub. L. 100-647 provided in part that the amendment made by section 1003(b)(3) of Pub. L. 100-647 is effective for taxable years beginning after Dec. 31, 1987.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 311(b)(4) of Pub. L. 99-514 applicable to payments made after Dec. 31, 1986, see section 311(c) of Pub. L. 99-514, as amended, set out as a note under section 1201 of this title.
Amendment by section 1810(f)(2), (3), (5), (6),
(8) of Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the
Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under section 48 of this title.
Section 1810(f)(4)(B) of Pub. L. 99-514 provided that: “The amendment made by subparagraph
(A) [amending this section] shall apply to dispositions after the day 30 days after
the date of the enactment of this Act [Oct. 22, 1986].”
EFFECTIVE DATE
Section 129(c)(1) of Pub. L. 98-369 provided that: “The amendment made by subsection
(a) [enacting this section] shall apply to any disposition on or after January 1,
1985.”
AMOUNTS WITHHELD ON OR BEFORE DECEMBER 17, 2010
Section 749(b)(2) of Pub. L. 111-312 provided that:
“(2) AMOUNTS WITHHELD ON OR BEFORE DATE OF ENACTMENT.—In the case of a regulated investment
company—
“(A) which makes a distribution after December 31, 2009, and before the date of the
enactment of this Act [Enacted:
Dec. 17, 2010]; and
“(B) which would (but for the second sentence of paragraph (1)) have been required
to withhold with respect to such distribution under section 1445 of such Code, such
investment company shall not be liable to any person to whom such distribution was
made for any amount so withheld and paid over to the Secretary of the Treasury.”
