Anthony Billings published in tax journal
According to their website, Tax Notes “provides comprehensive and impartial coverage of tax news, while its commentary contributes important voices to the discussion and understanding of tax policy.”
The co-authored paper, “An Update on Withholding Taxes on Dividend-Equivalent Payments,” discusses recent updates to withholding tax provisions affecting foreign persons receiving dividend payments from U.S. companies.
The article was co-authored by Kyungjin Kim from the State University of New York, Korea (SUNY Korea).
The paper reviews recent updates to withholding tax provisions affecting foreign persons receiving dividend payments from U.S. companies. The paper covers updated rules for the delta test regarding equity-based derivatives that are used by foreign persons to avoid U.S. withholding taxes on dividend payments received. The paper also discusses Notice 2020-2 which extends the transition relief concerning certain requirements under Sec. 871(m) for another two years. Notice 2020-2 delays the phase-in application of the IRS Sec. 871(m) regulations for delta-one and non-delta-one transactions until January 1, 2023. In addition to reviewing the updated provisions, the article provides illustrations as an aid to tax practitioners in helping their clients in complying with the provisions. The article reviews the pre-2019 delta test along with the Sec. 871(m) transactions when multiple brokers or dealers are involved. Specifically, the new regulations offer guidance on identifying which party in a potential IRC Sec. 871(m) transaction is responsible for determining whether there is an IRC Sec. 871(m) transaction when multiple brokers or dealers are involved in the transaction, and on clarifying the meaning of the term “broker” for these purposes.