[Federal Register Volume 77, Number 46 (Thursday, March 8, 2012)]
[Rules and Regulations]
[Pages 13968-13969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5315]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9572]
RIN 1545-BK53


Dividend Equivalents From Sources Within the United States; 
Correction

AGENCY: Internal Revenue Service (IRS).

ACTION: Temporary regulations; correcting amendment.

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[[Page 13969]]

SUMMARY: This document contains corrections to temporary regulations 
(TD 9572), relating to dividend equivalents from sources within the 
United States.

DATES: Effective Date: March 8, 2012 and is applicable January 23, 
2012.

FOR FURTHER INFORMATION CONTACT:  D. Peter Merkel (202) 622-3870.

SUPPLEMENTARY INFORMATION: 

Background

    The temporary regulations that are the subject of these corrections 
are under section 1441 of the Internal Revenue Code.

Need for Correction

    As published, temporary regulations (TD 9572), published in the 
Federal Register on January 23, 2012 (77 FR 3108) contains errors which 
may prove to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *


Sec.  1.1441-4  [Amended].

0
Par. 2. Section 1.1441-4 is amended by revising paragraphs (a)(3)(i) 
and (a)(3)(iii) to read as follows:


Sec.  1.1441-4  Exemptions from withholding for certain effectively 
connected income and other amounts.

    (a) * * *
    (3) * * *
    (i) [Reserved]. For further guidance, see Sec.  1.1441-4T(a)(3)(i).
* * * * *
    (iii) [Reserved]. For further guidance, see Sec.  1.1441-
4T(a)(3)(iii).
* * * * *


Sec.  1.1441-4T  [Amended]

0
Par. 3. Section 1.1441-4T is amended by revising the first sentence of 
paragraph (a)(3)(i) to read as follows:


Sec.  1.1441-4T  Exemptions from withholding for certain effectively 
connected income and other amounts (temporary).

    (a) * * *
* * * * *
    (3) Income on notional principal contracts--(i) General rule. 
Except as otherwise provided in paragraph (a)(3)(iii) of this section, 
a withholding agent that pays amounts attributable to a notional 
principal contract described in Sec.  1.863-7T(a) or Sec.  1.988-2(e) 
shall have no obligation to withhold on the amounts paid under the 
terms of the notional principal contract regardless of whether a 
withholding certificate is provided. * * *
* * * * *


Sec.  1.1441-7  [Amended]

0
Par. 4. Section 1441-7 is amended by revising the introductory text of 
paragraph (a)(3) and Example 6 to read as follows:


Sec.  1.1441-7  General provision relating to withholding agents.

    (a) * * *
    (3) Examples. The following examples illustrate the rules of 
paragraph (a) of this section:
* * * * *
    Example 6. [Reserved]. For further guidance, see Sec.  1.1441-
7T(a)(3)

    Example 6.
* * * * *

Guy R. Traynor,
Federal Register Liaison, Publication and Regulations, Legal Processing 
Division, Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2012-5315 Filed 3-7-12; 8:45 am]
BILLING CODE 4830-01-P