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.




©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this