Regulations - Nonresident aliens and foreign corporations holding certain financial products providing for payments contingent upon or determined by reference to U.S. source dividend payments 

December 4: The Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9648) and, by cross-reference, proposed regulations (REG-120282-10) as guidance for nonresident aliens and foreign corporations that hold certain financial products that provide for payments contingent upon or determined by reference to the payment of dividends from sources within the United States.

These regulations implement provisions under section 871, which was enacted by the Hiring Incentives to Restore Employment Act (HIRE Act) of 2010. Today’s release finalizes regulations that were proposed in January 2012, and removes corresponding temporary regulations. Read today’s final regulations [PDF 90 KB]

Treasury and the IRS also withdrew the 2012 proposed regulations and published today’s proposed regulations addressing numerous comments received. Read the proposed regulations [PDF 178 KB]

Read a December 2013 report [PDF 186 KB] about these regulations prepared by KPMG LLP.

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