Withholding Requirements for Income Allocated to Foreign Partners (Part II) — footnotes

¹⁶ TD 9200 (5/13/05).

¹⁷ This is not an all-or-nothing rule. The LTP looks through to the UTP’s partners to the extent that the LTP has sufficient information to associate income with specific types of foreign partners (e.g., individuals); see id., Preamble Section F.1.

¹⁸ See Regs. Sec. 1.1446-5(f), Example (1).

¹⁹ As was noted earlier, the lookthrough procedures may not be used for a publicly traded UTP.

²⁰ Regs. Sec. 1.1446-3 provides details on how to treat the payment for partners that are trusts distributing none, some or all of the income from the partnership.

²¹ This includes amounts paid with the filing of Form 8804, Annual Return for Partnership Withholding Tax (Section 1446).

²² For a domestic calendar-year partnership, the due date for Form 8804 is March 15 of the following tax year. If the partnership in the example was a domestic partnership, the period for computation of the underpayment addition would end on March 15, and the failure-to-pay penalty would apply from March 16 until the deemed payment date by the foreign partner, June 15.

²³ Regs. Sec. 1.1446-3(d)(1)(iv) contains additional requirements for reporting to beneficiaries of estates and trusts.

²⁴ Under Temp Regs. Sec. 1.1446-6T(c)(1)(iii), the amount of a partner’s certified NOL that may be deducted is limited to 90% of the partner’s allocable share of ECTI.