Withholdable payment


Definition of withholdable payment [§1.1473-1(a)]

3-1(a)(1) In general [§1.1473-1(a)(1)]

Except as otherwise provided in this paragraph (a) and §1.1471-2(b) (regarding grandfathered obligations), the term withholdable payment means-

(1)(i) Any payment of U.S. source FDAP income (as defined in paragraph (a)(2) of this section); and [§1.1473-1(a)(1)(i)]

(1)(ii) For any sales or other dispositions occurring after December 31, 2018, (amended from 2016 to 2018 as a result of IRS Notice 2015-66 page 11) any gross proceeds from the sale or other disposition (as defined in paragraph (a)(3)(i) of this section) of any property of a type that can produce interest or dividends that are U.S. source FDAP income. [§1.1473-1(a)(1)(ii)]

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