“Consistent with Executive Order 13777 (82 FR 12285), the Treasury Department and the IRS continue to evaluate the section 871(m) regulations and consider possible agency actions that may reduce unnecessary burdens imposed by the regulations. Pending consideration of the section 871(m) regulations pursuant to Executive Order 13777, this Notice extends parts of the phase-in period described in both Notice 2017- 42 and Notice 2018-5 through 2020,” Notice 2018-17 said.
The IRS said that the anti-abuse rule provided in §1.871-15(o) will continue to apply during the phase-in years.
Section 871(m) was introduced to prevent non-US persons from using derivative instruments to avoid US withholding tax on US equities.
See Notice 2018-72.
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