The Internal Revenue Service has released Notice 2017-42 which extends the transition period within which the section 871(m) rules for withholdings from dividend equivalent payments are to come into effect.

The Notice leaves a number of current rules in operation until the end of 2018 and extends some transition provisions for a year. It also leaves open the possibility that other changes may be considered that might reduce unnecessary administrative  burdens imposed by the section 871(m) rules. 

For further information, please contact Paul Hale.