IRS Issues Final Rules for Withholding on Payments Abroad

The IRS made final a plethora of rules for withholding and reporting on payments U.S. taxpayers make to foreign individuals and financial institutions.

The final rules (TD 9890), released Dec. 27, come over a year after the agency proposed eliminating withholding requirements on payments U.S. taxpayers make—such as wages, dividends, and other reimbursements—to foreign banks. The final rules encompass part of those proposals, and the rest will be made final later, the new rules said.

• The rules make final, with some changes, two sets of January 2017 proposed rules (REG-103477-14, REG-134247-16) governing withholding on payments ...