Exempt recipient.
(43) Exempt recipient. The term exempt recipient means a person described in 1.6049-4(c)(1)(ii) (for interest, dividends, and royalties), a person described in 1.6045-2(b)(2)(i) (for broker proceeds), and a person described in 1.6041-3(q) (for rents, amounts paid on notional principal contracts, and other fixed or determinable income).