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26 U.S.C. § 1471 — Withholdable payments to foreign financial institutions
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** In the case of any withholdable payment to a foreign financial institution which does not meet the requirements of subsection (b), the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment.
**(b) Reporting requirements, etc.**
(1) **In general** — The requirements of this subsection are met with respect to any foreign financial institution if an agreement is in effect between such institution and the Secretary under which such institution agrees—
(A) to obtain such information regarding each holder of each account maintained by such institution as is necessary to determine which (if any) of such accounts are United States accounts,
(B) to comply with such verification and due diligence procedures as the Secretary may require with respect to the identification of United States accounts,
(C) in the case of any United States account maintained by such institution, to report on an annual basis the information described in subsection (c) with respect to such account,
(D) to deduct and withhold a tax equal to 30 percent of—
(i) any passthru payment which is made by such institution to a recalcitrant account holder or another foreign financial institution which does not meet the requirements of this subsection, and
(ii) in the case of any passthru payment which is made by such institution to a foreign financial institution which has in effect an election under paragraph (3) with respect to such payment, so much of such payment as is allocable to accounts held by recalcitrant account holders or foreign financial institutions which do not meet the requirements of this subsection,
(E) to comply with requests by the Secretary for additional inf
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Source location: Title 26, Chapter 4, § 1471; chapter-004-taxes-to-enforce-reporting-on-certain-foreign-accounts.md
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**(a) In general** In the case of any withholdable payment to a foreign financial institution which does not meet the requirements of subsection (b), the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment.
**(b) Reporting requirements, etc.**
(1) **In general** — The requirements of this subsection are met with respect to any foreign financial institution if an agreement is in effect between such institution and the Secretary under which such institution agrees—
(A) to obtain such information regarding each holder of each account maintained by such institution as is necessary to determine which (if any) of such accounts are United States accounts,
(B) to comply with such verification and due diligence procedures as the Secretary may require with respect to the identification of United States accounts,
(C) in the case of any United States account maintained by such institution, to report on an annual basis the information described in subsection (c) with respect to such account,
(D) to deduct and withhold a tax equal to 30 percent of—
(i) any passthru payment which is made by such institution to a recalcitrant account holder or another foreign financial institution which does not meet the requirements of this subsection, and
(ii) in the case of any passthru payment which is made by such institution to a foreign financial institution which has in effect an election under paragraph (3) with respect to such payment, so much of such payment as is allocable to accounts held by recalcitrant account holders or foreign financial institutions which do not meet the requirements of this subsection,
(E) to comply with requests by the Secretary for additional information with respect to any United States account maintained by such institution, and
(F) in any case in which any foreign law would (but for a waiver described in clause (i)) prevent the reporting of any information referred to in this subsection or subsection (c) with respect to any United States account maintained by such institution—
(i) to attempt to obtain a valid and effective waiver of such law from each holder of such account, and
(ii) if a waiver described in clause (i) is not obtained from each such holder within a reasonable period of time, to close such account.
Any agreement entered into under this subsection may be terminated by the Secretary upon a determination by the Secretary that the foreign financial institution is out of compliance with such agreement.
(2) **Financial institutions deemed to meet requirements in certain cases** — A foreign financial institution may be treated by the Secretary as meeting the requirements of this subsection if—
(A) such institution—
(i) complies with such procedures as the Secretary may prescribe to ensure that such institution does not maintain United States accounts, and
(ii) meets such other requirements as the Secretary may prescribe with respect to accounts of other foreign financial institutions maintained by such institution, or
(B) such institution is a member of a class of institutions with respect to which the Secretary has determined that the application of this section is not necessary to carry out the purposes of this section.
(3) **Election to be withheld upon rather than withhold on payments to recalcitrant account holders and nonparticipating foreign financial institutions** — In the case of a foreign financial institution which meets the requirements of this subsection and such other requirements as the Secretary may provide and which elects the application of this paragraph—
(A) the requirements of paragraph (1)(D) shall not apply,
(B) the withholding tax imposed under subsection (a) shall apply with respect to any withholdable payment to such institution to the extent such payment is allocable to accounts held by recalcitrant account holders or foreign financial institutions which do not meet the requirements of this subsection, and
(C) the agreement described in paragraph (1) shall—
(i) require such institution to notify the withholding agent with respect to each such payment of the institution’s election under this paragraph and such other information as may be necessary for the withholding agent to determine the appropriate amount to deduct and withhold from such payment, and
(ii) include a waiver of any right under any treaty of the United States with respect to any amount deducted and withheld pursuant to an election under this paragraph.
To the extent provided by the Secretary, the election under this paragraph may be made with respect to certain classes or types of accounts of the foreign financial institution.
**(c) Information required to be reported on United States accounts**
(1) **In general** — The agreement described in subsection (b) shall require the foreign financial institution to report the following with respect to each United States account maintained by such institution:
(A) The name, address, and TIN of each account holder which is a specified United States person and, in the case of any account holder which is a United States owned foreign entity, the name, address, and TIN of each substantial United States owner of such entity.
(B) The account number.
(C) The account balance or value (determined at such time and in such manner as the Secretary may provide).
(D) Except to the extent provided by the Secretary, the gross receipts and gross withdrawals or payments from the account (determined for such period and in such manner as the Secretary may provide).
(2) **Election to be subject to same reporting as United States financial institutions** — In the case of a foreign financial institution which elects the application of this paragraph—
(A) subparagraphs (C) and (D) of paragraph (1) shall not apply, and
(B) the agreement described in subsection (b) shall require such foreign financial institution to report such information with respect to each United States account maintained by such institution as such institution would be required to report under sections 6041, 6042, 6045, and 6049 if—
(i) such institution were a United States person, and
(ii) each holder of such account which is a specified United States person or United States owned foreign entity were a natural person and citizen of the United States.
An election under this paragraph shall be made at such time, in such manner, and subject to such conditions as the Secretary may provide.
(3) **Separate requirements for qualified intermediaries** — In the case of a foreign financial institution which is treated as a qualified intermediary by the Secretary for purposes of section 1441 and the regulations issued thereunder, the requirements of this section shall be in addition to any reporting or other requirements imposed by the Secretary for purposes of such treatment.
**(d) Definitions** For purposes of this section—
(1) **United States account**
(A) *In general* — The term “United States account” means any financial account which is held by one or more specified United States persons or United States owned foreign entities.
(B) *Exception for certain accounts held by individuals* — Unless the foreign financial institution elects to not have this subparagraph apply, such term shall not include any depository account maintained by such financial institution if—
(i) each holder of such account is a natural person, and
(ii) with respect to each holder of such account, the aggregate value of all depository accounts held (in whole or in part) by such holder and maintained by the same financial institution which maintains such account does not exceed $50,000.
To the extent provided by the Secretary, financial institutions which are members of the same expanded affiliated group shall be treated for purposes of clause (ii) as a single financial institution.
(C) *Elimination of duplicative reporting requirements* — Such term shall not include any financial account in a foreign financial institution if—
(i) such account is held by another financial institution which meets the requirements of subsection (b), or
(ii) the holder of such account is otherwise subject to information reporting requirements which the Secretary determines would make the reporting required by this section with respect to United States accounts duplicative.
(2) **Financial account** — Except as otherwise provided by the Secretary, the term “financial account” means, with respect to any financial institution—
(A) any depository account maintained by such financial institution,
(B) any custodial account maintained by such financial institution, and
(C) any equity or debt interest in such financial institution (other than interests which are regularly traded on an established securities market).
Any equity or debt interest which constitutes a financial account under subparagraph (C) with respect to any financial institution shall be treated for purposes of this section as maintained by such financial institution.
(3) **United States owned foreign entity** — The term “United States owned foreign entity” means any foreign entity which has one or more substantial United States owners.
(4) **Foreign financial institution** — The term “foreign financial institution” means any financial institution which is a foreign entity. Except as otherwise provided by the Secretary, such term shall not include a financial institution which is organized under the laws of any possession of the United States.
(5) **Financial institution** — Except as otherwise provided by the Secretary, the term “financial institution” means any entity that—
(A) accepts deposits in the ordinary course of a banking or similar business,
(B) as a substantial portion of its business, holds financial assets for the account of others, or
(C) is engaged (or holding itself out as being engaged) primarily in the business of investing, reinvesting, or trading in securities (as defined in section 475(c)(2) without regard to the last sentence thereof), partnership interests, commodities (as defined in section 475(e)(2)), or any interest (including a futures or forward contract or option) in such securities, partnership interests, or commodities.
(6) **Recalcitrant account holder** — The term “recalcitrant account holder” means any account holder which—
(A) fails to comply with reasonable requests for the information referred to in subsection (b)(1)(A) or (c)(1)(A), or
(B) fails to provide a waiver described in subsection (b)(1)(F) upon request.
(7) **Passthru payment** — The term “passthru payment” means any withholdable payment or other payment to the extent attributable to a withholdable payment.
**(e) Affiliated groups**
(1) **In general** — The requirements of subsections (b) and (c)(1) shall apply—
(A) with respect to United States accounts maintained by the foreign financial institution, and
(B) except as otherwise provided by the Secretary, with respect to United States accounts maintained by each other foreign financial institution (other than any foreign financial institution which meets the requirements of subsection (b)) which is a member of the same expanded affiliated group as such foreign financial institution.
(2) **Expanded affiliated group** — For purposes of this section, the term “expanded affiliated group” means an affiliated group as defined in section 1504(a), determined—
(A) by substituting “more than 50 percent” for “at least 80 percent” each place it appears, and
(B) without regard to paragraphs (2) and (3) of section 1504(b).
A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence).
**(f) Exception for certain payments** Subsection (a) shall not apply to any payment to the extent that the beneficial owner of such payment is—
(1) any foreign government, any political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing,
(2) any international organization or any wholly owned agency or instrumentality thereof,
(3) any foreign central bank of issue, or
(4) any other class of persons identified by the Secretary for purposes of this subsection as posing a low risk of tax evasion.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Rate** Interest shall be allowed and paid upon any overpayment in respect of any internal revenue tax at the overpayment rate established under section 6621.
**(b) Period** Such interest shall be allowed and paid as follows:
(1) **Credits** — In the case of a credit, from the date of the overpayment to the due date of the amount against which the credit is taken.
(2) **Refunds** — In the case of a refund, from the date of the overpayment to a date (to be determined by the Secretary) preceding the date of the refund check by not more than 30 days, whether or not such refund check is accepted by the taxpayer after tender of such check to the taxpayer. The acceptance of such check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon.
(3) **Late returns** — Notwithstanding paragraph (1) or (2) in the case of a return of tax which is filed after the last date prescribed for filing such return (determined with regard to extensions), no interest shall be allowed or paid for any day before the date on which the return is filed.
**(c) Repealed. Pub. L. 85–866, title I, § 83(c), Sept. 2, 1958, 72 Stat. 1664]**
**(d) Advance payment of tax, payment of estimated tax, and credit for income tax withholding** The provisions of section 6513 (except the provisions of subsection (c) thereof, applicable in determining the date of payment of tax for purposes of determining the period of limitation on credit or refund, shall be applicable in determining the date of payment for purposes of subsection (a).
**(e) Disallowance of interest on certain overpayments**
(1) **Refunds within 45 days after return is filed** — If any overpayment of tax imposed by this title is refunded within 45 days after the last day prescribed
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6611
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Liability for withheld tax** Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter.
**(b) Credits and refunds**
(1) **In general** — Except as provided in paragraph (2), the determination of whether any tax deducted and withheld under this chapter results in an overpayment by the beneficial owner of the payment to which such tax is attributable shall be made as if such tax had been deducted and withheld under subchapter A of chapter 3.
(2) **Special rule where foreign financial institution is beneficial owner of payment**
(A) *In general* — In the case of any tax properly deducted and withheld under section 1471 from a specified financial institution payment—
(i) if the foreign financial institution referred to in subparagraph (B) with respect to such payment is entitled to a reduced rate of tax with respect to such payment by reason of any treaty obligation of the United States—
(I) the amount of any credit or refund with respect to such tax shall not exceed the amount of credit or refund attributable to such reduction in rate, and
(II) no interest shall be allowed or paid with respect to such credit or refund, and
(ii) if such foreign financial institution is not so entitled, no credit or refund shall be allowed or paid with respect to such tax.
(B) *Specified financial institution payment* — The term “specified financial institution payment” means any payment if the beneficial owner of such payment is a foreign financial institution.
(3) **Requirement to identify substantial United States owners** — No credit or refund sh
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1474
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Federal law — U.S. Code and appendices · legal_authorities
In the case of an overpayment of tax imposed by chapter 24, or by chapter 3 or 4, refund or credit shall be made to the employer or to the withholding agent, as the case may be, only to the extent that the amount of such overpayment was not deducted and withheld by the employer or withholding agent.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6414
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** Except as otherwise provided in this section, the amount of any tax imposed by this title shall be assessed within 3 years after the return was filed (whether or not such return was filed on or after the date prescribed) or, if the tax is payable by stamp, at any time after such tax became due and before the expiration of 3 years after the date on which any part of such tax was paid, and no proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period. For purposes of this chapter, the term “return” means the return required to be filed by the taxpayer (and does not include a return of any person from whom the taxpayer has received an item of income, gain, loss, deduction, or credit).
**(b) Time return deemed filed**
(1) **Early return** — For purposes of this section, a return of tax imposed by this title, except tax imposed by chapter 3, 4, 21, or 24, filed before the last day prescribed by law or by regulations promulgated pursuant to law for the filing thereof, shall be considered as filed on such last day.
(2) **Return of certain employment and withholding taxes** — For purposes of this section, if a return of tax imposed by chapter 3, 4, 21, or 24 for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, such return shall be considered filed on April 15 of such calendar year.
(3) **Return executed by Secretary** — Notwithstanding the provisions of paragraph (2) of section 6020(b), the execution of a return by the Secretary pursuant to the authority conferred by such section shall not start the running of the period of limitations on assessment and collection.
(4) **Return of excise taxes** — For purposes of this section, the fil
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6501
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Early return or advance payment of tax** For purposes of section 6511, any return filed before the last day prescribed for the filing thereof shall be considered as filed on such last day. For purposes of section 6511(b)(2) and (c) and section 6512, payment of any portion of the tax made before the last day prescribed for the payment of the tax shall be considered made on such last day. For purposes of this subsection, the last day prescribed for filing the return or paying the tax shall be determined without regard to any extension of time granted the taxpayer and without regard to any election to pay the tax in installments.
**(b) Prepaid income tax** For purposes of section 6511 or 6512—
(1) Any tax actually deducted and withheld at the source during any calendar year under chapter 24 shall, in respect of the recipient of the income, be deemed to have been paid by him on the 15th day of the fourth month following the close of his taxable year with respect to which such tax is allowable as a credit under section 31.
(2) Any amount paid as estimated income tax for any taxable year shall be deemed to have been paid on the last day prescribed for filing the return under section 6012 for such taxable year (determined without regard to any extension of time for filing such return).
(3) Any tax withheld at the source under chapter 3 or 4 shall, in respect of the recipient of the income, be deemed to have been paid by such recipient on the last day prescribed for filing the return under section 6012 for the taxable year (determined without regard to any extension of time for filing) with respect to which such tax is allowable as a credit under section 1462 or 1474(b). For this purpose, any exemption granted under section 6012 from the requirement of filing a return
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6513
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Reasonable cause waiver** No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.
**(b) Payment of penalty** Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax.
**(c) Special rule for failure to meet magnetic media requirements** No penalty shall be imposed under section 6721 solely by reason of any failure to comply with the requirements of the regulations prescribed under section 6011(e)(2), except to the extent that such a failure occurs with respect to more than the applicable number (determined under section 6011(e)(5) with respect to the calendar year to which such returns relate) of information returns or with respect to a return described in section 6011(e)(4).
**(d) Definitions** For purposes of this part—
(1) **Information return** — The term “information return” means—
(A) any statement of the amount of payments to another person required by—
(i) section 6041(a) or (b) (relating to certain information at source),
(ii) section 6042(a)(1) (relating to payments of dividends),
(iii) section 6044(a)(1) (relating to payments of patronage dividends),
(iv) section 6049(a) (relating to payments of interest),
(v) section 6050A(a) (relating to reporting requirements of certain fishing boat operators),
(vi) section 6050N(a) (relating to payments of royalties),
(vii) section 6051(d) (relating to information returns with respect to income tax withheld),
(viii) section 6050R (relating to returns relating to certain purchases of fish), or
(ix) section 110(d) (relating to qualified lessee construction allowances for short-term leases),
(B) any return
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6724
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Federal law — U.S. Code and appendices · legal_authorities
Page 2539
TITLE 26—INTERNAL REVENUE CODE
§ 1471
Jan. 1, 1984, pursuant to section 475(b) of Pub. L. 98–369,
set out as an Effective Date of 1984 Amendment note
under section 33 of this title.
§ 1461. Liability for withheld tax
Every person required to deduct and withhold
any tax under this chapter is hereby made liable
for such tax and is hereby indemnified against
the claims and demands of any person for the
amount of any payments made in accordance
with the provisions of this chapter.
(Aug. 16, 1954, ch. 736, 68A Stat. 360; Pub. L.
89–809, title I, § 103(i), Nov. 13, 1966, 80 Stat. 1554.)
Editorial Notes
AMENDMENTS
1966—Pub. L. 89–809 struck out requirement that per-
sons required to deduct and withhold any tax under
this chapter make return thereof on or before March 15
of each year and pay the tax to the officer designated
in section 6151, and substituted ‘‘Liability for withheld
tax’’ for ‘‘Return and payment of withheld tax’’ in sec-
tion catchline.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89–809 applicable with respect
to payments occurring after Dec. 31, 1966, see section
103(n)(3) of Pub. L. 89–809, set out as a note under sec-
tion 871 of this title.
§ 1462. Withheld tax as credit to recipient of in-
come
Income on which any tax is required to be
withheld at the source under this chapter shall
be included in the return of the recipient of such
income, but any amount of tax so withheld shall
be credited against the amount of income tax as
computed in such return.
(Aug. 16, 1954, ch. 736, 68A Stat. 360.)
§ 1463. Tax paid by recipient of income
If—
(1) any person, in violation of the provisions
of this chapter, fails to deduct and withhold
any tax under this chapter, and
(2) t
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1471
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