Par. 9. Section 1.1441-7 is amended by: 1. Redesignating paragraph (a)(4) as (a)(5) and adding a second and third sentence to newly redesignated (a)(5). 2. Adding a new paragraph (a)(4). 3. Amending paragraph (g) by removing the language “paragraphs (a)(4)” and adding in its place “paragraphs (a)(5).” The addition reads as follows:
(a) * * *
(4) Withholding agent with respect to deemed distributions under section 305(c). Any person that issues or holds directly or indirectly (for example, through an account maintained for another intermediary) on behalf of a beneficial owner, or a flow through entity that owns directly or indirectly (through another flow-through entity), a security upon which a deemed distribution (as defined in § 1.305-1(d)(7)) is made has custody of or control over the deemed distribution. See § 1.1441-2(d)(4) for a withholding agent's obligation to withhold on the deemed distribution and § 1.1441-3(c)(5)(i) for when a withholding agent may rely on the information reported by the issuer under § 1.6045B-1 to determine the amount to withhold.
(5) * * * Paragraph (a)(4) 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 (a)(4) of this section for all deemed distributions (as defined in § 1.305-1(d)(7)) 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 .