Dividend equivalents
(h) Dividend equivalents(1) Withholding on gross amount. The gross amount of a dividend equivalent described in section 871(m) and the regulations thereunder is subject to withholding in an amount equal to the gross amount of the dividend equivalent used in computing any net amount that is transferred to or from the taxpayer. Withholding is required on the amount of the dividend equivalent calculated under 1.87115(j).