The Internal Revenue Service ("IRS") delayed implementing certain rules that are intended to prevent non-U.S. persons from using derivative instruments to avoid U.S. withholding tax on U.S. equities.
In Notice 2018-72, the IRS reported that the effective date for Section 871(m) and the phase-in period in Notice 2016-76 will be delayed. The IRS previously delayed the effectiveness of these rules by one year in 2017.
The anti-abuse rule will continue to apply during the phase-in years.
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