26 CFR 31.3406(b)(2)-1 - Reportable interest payment.

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There are 12 Updates appearing in the Federal Register for 26 CFR Part 31. View below or at eCFR (GPOAccess)
§ 31.3406(b)(2)-1 Reportable interest payment.
(a) Interest subject to backup withholding
(1) In general. A payment of a kind, and to a payee, that is required to be reported under section 6049 (relating to returns regarding interest and original issue discount) is a reportable payment for purposes of section 3406, subject to the special rules of § 31.3406(b)(2)-2 (relating to original issue discount) and § 31.3406(b)(2)-3 (relating to window transactions). See § 31.6051-4 for the requirement to furnish a statement to the payee if tax is withheld under section 3406.
(2) Special rule for tax-exempt interest. When an issuer is required to make an information return under § 1.6049-4(d)(8) of this chapter because a payee provided a signed written statement on the envelope or shell incorrectly claiming that the interest was exempt from taxation under section 103(a) (as described in § 1.6049-5(b)(1)(ii) of this chapter), the issuer is not required to impose withholding under section 3406.
(b) Amount subject to backup withholding
(1) In general. The amount of interest subject to withholding under section 3406 is the amount subject to reporting under section 6049.
(2) Special rule to adjust for premature withdrawal penalty. Solely for purposes of computing the amount subject to withholding under section 3406, the payor may elect not to withhold from the portion of any interest payment that is not received by the payee because a penalty is in fact imposed for premature withdrawal of funds deposited in a time savings account, certificate of deposit, or similar class of deposit.
[T.D. 8637, 60 FR 66115, Dec. 21, 1995]

Title 26 published on 2013-04-01.

The following are only the Rules published in the Federal Register after the published date of Title 26.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-10-27; vol. 79 # 207 - Monday, October 27, 2014
    1. 79 FR 63811 - Removal of the Qualified Payment Card Agent Program
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      DEPARTMENT OF THE TREASURY, Internal Revenue Service
      Final regulations.
      These regulations are effective October 27, 2014.
      26 CFR Parts 31 and 301

Title 26 published on 2013-04-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 26 CFR Part 31 after this date.

  • 2015-03-04; vol. 80 # 42 - Wednesday, March 4, 2015
    1. 80 FR 11600 - Information Returns; Winnings From Bingo, Keno, and Slot Machines
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      DEPARTMENT OF TREASURY, Internal Revenue Service
      Notice of proposed rulemaking and notice of public hearing.
      Written or electronic comments must be received by June 2, 2015. Outlines of topics to be discussed at the public hearing scheduled for June 17, 2015 at 10 a.m. must be received by June 2, 2015.
      26 CFR Parts 1 and 31