Withholding Tax on Dividend Equivalent Payments: IRS and Treasury Issue Temporary and Proposed Regulations on “Dividend Equivalents” on “Specified Notional Principal Contracts”Judith R. Fiorini,David P. Hariton,Jeffrey D. Hochberg,Andrew D. Moin,Michael Orchowski,S. Eric Wang, January 26, 2012
Section 871(m) of the Code requires taxpayers to treat certain “dividend equivalent” payments on “specified notional principal contracts” (“specified NPCs”), among other types of transactions, as U.S.- source dividends, thereby subjecting them to the withholding...