September 16, 1994
TO: INTERNATIONAL COMMITTEE NO. 15-94
OPERATIONS COMMITTEE NO. 25-94
TAX COMMITTEE NO. 31-94
TRANSFER AGENT ADVISORY COMMITTEE NO. 36-94
RE: OCTOBER 4 MEETING ON NONRESIDENT ALIEN INVESTOR TAX
COMPLIANCE ISSUES
__________________________________________________________
As you may know, for several years the Internal Revenue
Service ("IRS") has been studying tax compliance issues relating
to nonresident alien ("NRA") investors with a view toward
revising the tax withholding regulations under Code section 1441.
IRS officials have indicated that proposed regulations revising
the section 1441 NRA withholding rules will likely be issued
later this year.
A meeting to discuss NRA withholding issues will be held on
Tuesday, October 4, 1994 at 10:00 a.m. in the Institute's David
Silver Conference Room, 1401 H Street, N.W., 12th Floor. Lunch
will be served following the meeting.
Meeting attendees should be prepared to discuss the impact
to the industry of, and possible recommendations on, issues such
as:
(1) the IRS' announced intention to eliminate the "address
rule", under which payors rely upon a payee's address
to determine the proper withholding rate, such as a
reduced treaty rate, to apply to dividend payments;
(2) the documentation that could be required from NRA
investors if the address rule is eliminated;
(3) the expiration date for properly executed IRS Forms W-8
and 1001, which are used by foreign investors to
certify their "foreign" status and eligibility for
treaty benefits;
(4) procedures for payors, who incorrectly underwithhold
tax, to recover from the NRA shareholder the additional
tax due; and
(5) procedures for reversing overwithholding regardless of
(a) whether the overwithholding is "erroneous" or has
been caused by the payee and (b) when the "error" is
discovered or otherwise corrected.
If you plan to attend the meeting on October 4, please fax
the attached meeting attendance form to Theresa Brice at (202)
326-5841, or call her at (202) 326-5833, no later than September
30, 1994.
We will keep you informed of developments.
Keith D. Lawson
Associate Counsel - Tax
Attachment
Please fax this portion, if you plan to attend the meeting, to Theresa Brice
Investment Company Institute, 202-326-5841
MEETING ON NONRESIDENT ALIEN INVESTOR TAX COMPLIANCE ISSUES
10:00 a.m. - Tuesday, October 4, 1994
Investment Company Institute
I (We) plan to attend the meeting.
ATTENDEE(S)
COMPANY NAME