# Prop. Treas. Reg. § 1.1441-3: Determination of amounts to be withheld.

Proposed regulation, not in force. REG-133673-15, 81 FR 21795, published 2016-04-13 <https://www.federalregister.gov/documents/2016/04/13/2016-08248/deemed-distributions-under-section-305c-of-stock-and-rights-to-acquire-stock>. Interprets 26 U.S.C. § 1441.

Par. 8. Section 1.1441-3 is amended by: 1. Adding paragraph (c)(5). 2. Amending paragraph (i) by removing the language “paragraphs (g) and (h)” and adding in its place “paragraphs (c)(5), (g), and (h)”. The addition reads as follows:

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(c) * * *

(5) Reliance rule for applicable adjustments —(i) In general. For purposes of determining the amount of a deemed distribution (as defined in § 1.305-1(d)(7)) on a specified security (as defined in § 1.6045-1(a)(14)) or a deemed payment (as defined in § 1.861-3(a)(6)) that is determined with respect to a deemed distribution on a specified security, a withholding agent other than the issuer of the specified security (as defined in § 1.6045-1(a)(14)) may rely on the information provided by the issuer under § 1.6045B-1 (or a copy of the issuer statement in the circumstances described in § 1.1441-2(d)(4)(iii)) unless it knows that such information is incorrect or unreliable. See § 1.1441-2(d)(4) for a withholding agent's obligation to withhold on a deemed distribution or a deemed payment.

(ii) Effective/applicability date. Paragraph (c)(5)(i) of this section applies to payments made on or after the date of publication of the Treasury decision adopting these rules as final regulations in the Federal Register . A withholding agent may, however, rely on the rules in paragraph (c)(5)(i) of this section for all deemed distributions (as defined in § 1.305-1(d)(7)) or deemed payments (as defined in § 1.861-3(a)(6)) occurring on or after January 1, 2016, until the date of publication of a Treasury decision adopting these rules as final regulations in the Federal Register .

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