I.R.C. § 1474(a) Liability For Withheld Tax —
Every person required to deduct and withhold any tax under this chapter is hereby
made liable for such tax and is hereby indemnified against the claims and demands
of any person for the amount of any payments made in accordance with the provisions
of this chapter.
I.R.C. § 1474(b) Credits And Refunds
I.R.C. § 1474(b)(1) In General —
Except as provided in paragraph (2), the determination of whether any tax deducted and withheld under this chapter results
in an overpayment by the beneficial owner of the payment to which such tax is attributable
shall be made as if such tax had been deducted and withheld under subchapter A of
chapter 3.
I.R.C. § 1474(b)(2) Special Rule Where Foreign Financial Institution Is Beneficial Owner Of Payment
I.R.C. § 1474(b)(2)(A) In General —
In the case of any tax properly deducted and withheld under section 1471 from a specified financial institution payment—
I.R.C. § 1474(b)(2)(A)(i) —
if the foreign financial institution referred to in subparagraph (B) with respect to such payment is entitled to a reduced rate of tax with respect to
such payment by reason of any treaty obligation of the United States—
I.R.C. § 1474(b)(2)(A)(i)(I) —
the amount of any credit or refund with respect to such tax shall not exceed the amount
of credit or refund attributable to such reduction in rate, and
I.R.C. § 1474(b)(2)(A)(i)(II) —
no interest shall be allowed or paid with respect to such credit or refund, and
I.R.C. § 1474(b)(2)(A)(ii) —
if such foreign financial institution is not so entitled, no credit or refund shall
be allowed or paid with respect to such tax.
I.R.C. § 1474(b)(2)(B) Specified Financial Institution Payment —
The term “specified financial institution payment”
means any payment if the beneficial owner of such payment is a foreign financial institution.
I.R.C. § 1474(b)(3) Requirement To Identify Substantial United States Owners —
No credit or refund shall be allowed or paid with respect to any tax properly deducted
and withheld under this chapter unless the beneficial owner of the payment provides
the Secretary such information as the Secretary may require to determine whether such
beneficial owner is a United States owned foreign entity (as defined in section 1471(d)(3)) and the identity of any substantial United States owners of such entity.
I.R.C. § 1474(c) Confidentiality Of Information
I.R.C. § 1474(c)(1) In General —
For purposes of this chapter, rules similar to the rules of section 3406(f) shall apply.
I.R.C. § 1474(c)(2) Disclosure Of List Of Participating Foreign Financial Institutions Permitted —
The identity of a foreign financial institution which meets the requirements of section
1471(b) shall not be treated as return information for purposes of section 6103.
I.R.C. § 1474(d) Coordination With Other Withholding Provisions —
The Secretary shall provide for the coordination of this chapter with other withholding
provisions under this title, including providing for the proper crediting of amounts
deducted and withheld under this chapter against amounts required to be deducted and
withheld under such other provisions.
I.R.C. § 1474(e) Treatment Of Withholding Under Agreements —
Any tax deducted and withheld pursuant to an agreement described in section 1471(b) shall be treated for purposes of this title as a tax deducted and withheld by a withholding
agent under section 1471(a).
I.R.C. § 1474(f) Regulations —
The Secretary shall prescribe such regulations or other guidance as may be necessary
or appropriate to carry out the purposes of, and prevent the avoidance of, this chapter.
(Mar. 18, 2010, Pub. L. 111-147, Sec. 501(a), 124 Stat. 71.)
BACKGROUND NOTES
EFFECTIVE DATE
Effective for payments made after December 31, 2012.
Sec. 501(d)(2) of Pub. L. 111-147 provided the following special rule:
“(2) GRANDFATHERED TREATMENT OF OUTSTANDING OBLIGATIONS.—The amendments made by this
section shall not require any amount to be deducted or withheld from any payment under
any obligation outstanding on the date which is 2 years after the date of the enactment
of this Act or from the gross proceeds from any disposition of such an obligation.”
