[Code of Federal Regulations]
[Title 26, Volume 18, Parts 500 to 599]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR514.8]

[Page 70-71]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 514--FRANCE--Table of Contents
 
                       Subpart--Withholding of Tax
 
Sec. 514.8  Release of excess tax withheld at source.

    (a) Amounts to be released--(1) Dividends derived from domestic 
corporation. If United States tax has been withheld at the statutory 
rate on or after January 1, 1957, from dividends described in 
Sec. 514.2(a) and derived from a domestic corporation by a nonresident 
alien (including a nonresident alien individual, fiduciary, and 
partnership) or by a foreign corporation, whose address at the time of 
payment was in France, the withholding agent shall release and pay over 
to the person from whom the tax was withheld an amount which is equal to 
the difference between the tax so withheld and the tax required to be 
withheld pursuant to Sec. 514.2(c).
    (2) Coupon bond interest--(i) Substitute form. In the case of every 
taxpayer who furnishes to the withholding agent Form 1001-F clearly 
marked ``Substitute'' and executed in accordance with Sec. 514.4(b)(1), 
where United States tax has been withheld at the statutory rate on or 
after January 1, 1957, from coupon bond interest, the withholding agent 
shall release and pay over to the person from whom the tax was withheld 
an amount which is equal to the difference between the tax so withheld 
and the tax required to be withheld pursuant to Sec. 514.4(b)(1) if the 
taxpayer also attaches to such form a letter in duplicate, signed by the 
owner, trustee, or agent and containing the following:
    (a) The name and address of the obligor;
    (b) The name and address of the owner from which the excess tax was 
withheld;
    (c) A statement that, at the time when the interest was derived from 
which the excess tax was withheld, the owner was neither a citizen nor a 
resident of the United States but was a resident of France, or, in the 
case of a corporation, the owner was a French corporation; and
    (d) A statement that the owner at no time during the taxable year in 
which the interest was derived was engaged in trade or business within 
the United States through a permanent establishment situated therein.

One such substitute form shall be filed, in duplicate, with respect to 
each issue of bonds and will serve with respect to that issue to replace 
all Forms 1001 previously filed by the taxpayer in the calendar year in 
which the excess tax was withheld and with respect to which such excess 
is released. If the person presenting the coupon, or on whose behalf it 
is presented, is not the owner of the bond, Form 1001, and not Form 
1001-F, shall be executed.
    (ii) Disposition of form. The original and duplicate of substitute 
Form 1001-F (and letter) shall be forwarded by the withholding agent to 
the Director, International Operations Division, Internal Revenue 
Service, Washington, D.C., with the annual return on Form 1042. 
Substitute Form 1001-F need not be listed on Form 1042.
    (3) Noncoupon interest, royalties, private pensions, and life 
annuities. (i) If a taxpayer furnishes to the withholding agent a Form 
1001A-F, properly executed as prescribed by Sec. 514.4(b)(4), and United 
States tax has been withheld at the statutory rate on or after January 
1, 1957, from noncoupon interest payments in respect of which the form 
is filed, the withholding agent should release and pay over to the 
person from whom the tax was withheld an amount which is equal to the 
difference between the tax so withheld and the tax required to be 
withheld pursuant to Sec. 514.4(b)(4).
    (ii) If a taxpayer furnishes to the withholding agent a Form 1001A-
F, properly executed as prescribed by Sec. 514.4(b)(4), and United 
States tax has been withheld at the statutory rate on or after January 
1, 1957, from royalties, private pensions, and life annuities in respect 
of which the form is filed, the withholding agent shall release and pay 
over to the person from whom the tax was withheld an amount which is 
equal to the total tax so withheld.
    (b) Amounts not to be released. The provisions of this section do 
not apply to excess tax withheld at source which has been paid by the 
withholding agent to the internal revenue officer entitled to receive 
payment of the tax withheld under chapter 3 of the Internal Revenue Code 
of 1954.
    (c) Statutory rate. As used in this section, the term ``statutory 
rate'' means the rate prescribed by chapter 3 of the Internal Revenue 
Code of 1954 and the

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regulations thereunder, as though the convention had not come into 
effect.