The IRS issued Notice 2017-42 to inform taxpayers that it will delay the effective/applicability date of certain rules in the final Section 871(m) regulations, and extend parts of the phase-in period (see Notice 2016-76 and Rev. Proc. 2017-15) by one year. Section 871(m) regulations of the Internal Revenue Code provide for withholding on "dividend equivalent payments" on derivatives that reference U.S. equity securities.
The anti-abuse rule (see §1.871-15(o)) will continue to apply during the phase-in years.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
