Transition period for withholding tax rules
Published: 05 September 2017
The Internal Revenue Service has released Notice 2017-42 which extends the transition period within which the section 871(m) rules for withholdings from dividend equivalent payments are to come into effect.
The Notice leaves a number of current rules in operation until the end of 2018 and extends some transition provisions for a year. It also leaves open the possibility that other changes may be considered that might reduce unnecessary administrative burdens imposed by the section 871(m) rules.
For further information, please contact Paul Hale.