# Prop. Treas. Reg. § 1.1473-1: Section 1473 definitions. Proposed regulation, not in force. REG-132881-17, 83 FR 64757, published 2018-12-18 . Interprets 26 U.S.C. § 1473. Par. 11. Section 1.1473-1 is amended by: 1. Revising paragraph (a)(1). 2. Removing the fourth sentence of paragraph (a)(2)(vii)(A). 3. Removing and reserving paragraph (a)(3). 4. Revising paragraph (a)(4)(iii). 5. Removing paragraph (a)(4)(iv) and redesignating paragraphs (a)(4)(v) through (viii) as new paragraphs (a)(4)(iv) through (vii). 6. Removing paragraph (a)(5)(vii). The revisions read as follows: (a) * * * (1) In general. Except as otherwise provided in this paragraph (a) and § 1.1471-2(b) (regarding grandfathered obligations), the term withholdable payment means any payment of U.S. source FDAP income (as defined in paragraph (a)(2) of this section). * * * * * (3) [Reserved] (4) * * * (iii) Excluded nonfinancial payments. Payments for the following: services (including wages and other forms of employee compensation (such as stock options)), the use of property, office and equipment leases, software licenses, transportation, freight, gambling winnings, awards, prizes, scholarships, interest on outstanding accounts payable arising from the acquisition of goods or services, and premiums for insurance contracts that do not have cash value (as defined in § 1.1471-5(b)(3)(vii)(B)). Notwithstanding the preceding sentence, excluded nonfinancial payments do not include the following: Payments in connection with a lending transaction (including loans of securities), a forward, futures, option, or notional principal contract, or a similar financial instrument; premiums for cash value insurance contracts or annuity contracts; amounts paid under cash value insurance or annuity contracts; dividends; interest (including substitute interest described in § 1.861-2(a)(7)) other than interest described in the preceding sentence; investment advisory fees; custodial fees; and bank or brokerage fees. * * * * *