26 U.S.C. § 1474 — Special rules

Page 2544 TITLE 26—INTERNAL REVENUE CODE § 1474 (Added Pub. L. 111–147, title V, § 501(a), Mar. 18, 2010, 124 Stat. 103.) § 1474. Special rules (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 de- termination of whether any tax deducted and withheld under this chapter results in an over- payment by the beneficial owner of the pay- ment 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 institu- tion is beneficial owner of payment (A) In general In the case of any tax properly deducted and withheld under section 1471 from a speci- fied financial institution payment— (i) if the foreign financial institution re- ferred 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 attrib- utable 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 bene- ficial owner of such payment is a foreign fi- nancial institution. (3) Requirement to identify substantial United States owners No credit or refund shall be allowed or paid with respect to any tax properly deducted and withheld under this chapter unless the bene- ficial owner of the payment provides the Sec- retary such information as the Secretary may require to determine whether such beneficial owner is a United States owned foreign entity (as defined in section 1471(d)(3)) and the iden- tity of any substantial United States owners of such entity. (c) Confidentiality of information (1) In general For purposes of this chapter, rules similar to the rules of section 3406(f) shall apply. (2) Disclosure of list of participating foreign fi- nancial institutions permitted The identity of a foreign financial institu- tion which meets the requirements of section 1471(b) shall not be treated as return informa- tion for purposes of section 6103. (d) Coordination with other withholding provi- sions The Secretary shall provide for the coordina- tion of this chapter with other withholding pro- visions under this title, including providing for the proper crediting of amounts deducted and withheld under this chapter against amounts re- quired to be deducted and withheld under such other provisions. (e) Treatment of withholding under agreements Any tax deducted and withheld pursuant to an agreement described in section 1471(b) shall be treated for purposes of this title as a tax de- ducted and withheld by a withholding agent under section 1471(a). (f) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appro- priate to carry out the purposes of, and prevent the avoidance of, this chapter. (Added Pub. L. 111–147, title V, § 501(a), Mar. 18, 2010, 124 Stat. 104.) Editorial Notes PRIOR PROVISIONS For prior sections 1481 and 1482, see Prior Provisions note preceding section 1471 of this title. [CHAPTER 5—REPEALED] [§§ 1491, 1492. Repealed. Pub. L. 105–34, title XI, § 1131(a), Aug. 5, 1997, 111 Stat. 978] Section 1491, acts Aug. 16, 1954, ch. 736, 68A Stat. 365; Oct. 4, 1976, Pub. L. 94–455, title X, § 1015(a), 90 Stat. 1617; Nov. 6, 1978, Pub. L. 95–600, title VII, § 701(u)(14)(A), 92 Stat. 2919; Aug. 20, 1996, Pub. L. 104–188, title I, § 1907(b)(1), 110 Stat. 1916, imposed tax on transfers to avoid income tax. Section 1492, acts Aug. 16, 1954, ch. 736, 68A Stat. 365; Jan. 12, 1971, Pub. L. 91–681, § 1(b), 84 Stat. 2066; Oct. 4, 1976, Pub. L. 94–455, title X, § 1015(b), title XIX, § 1906(b)(13)(A), 90 Stat. 1618, 1834; Nov. 6, 1978, Pub. L. 95–600, title VII, § 701(u)(14)(B), 92 Stat. 2919; July 18, 1984, Pub. L. 98–369, div. A, title I, § 131(f)(1), 98 Stat. 665, related to nontaxable transfers. [§ 1493. Repealed. Pub. L. 89–809, title I, § 103(l)(2), Nov. 13, 1966, 80 Stat. 1554] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 365, de- fined foreign trust. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable with respect to taxable years be- ginning after Dec. 31, 1966, see section 103(n)(1) of Pub. L. 89–809, set out as an Effective Date of 1966 Amend- ment note under section 871 of this title. [§ 1494. Repealed. Pub. L. 105–34, title XI, § 1131(a), Aug. 5, 1997, 111 Stat. 978] Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 365; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1906 (b)(13)(A), 90 Stat. 1834; July 18, 1984, Pub. L. 98–369, div. A, title I, § 131(f)(2), 98 Stat. 665; Aug. 20, 1996, Pub. L. 104–188, title I, § 1902(a), 110 Stat. 1909, provided for payment and col- lection of the tax imposed under section 1491 of this title.