[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: 26CFR514.26]
[Page 84-85]
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. 514.26 Income covered by convention.
(a) Exemption from or reduction in rate of tax--(1) Request for
ruling. If a nonresident alien individual who is a resident of France or
French corporation or person resident in France for French tax purposes
claims or contemplates claiming that an item of income (including income
referred to in Secs. 514.21 through 514.25) is exempt from, or subject
to a reduced rate of, U.S. tax under the convention, such owner of the
income may request a ruling to that effect from the Commissioner of
Internal Revenue, Washington, D.C. 20224, by filing a statement setting
forth all the facts pertinent to a determination of the question.
(2) Notification of applicant. As soon as practicable after such
information is filed, the Commissioner will determine whether the income
concerned qualifies under the convention for exemption from or reduced
rate of, U.S. tax and will notify the applicant of his ruling. If income
qualifies for such benefit, this notification may also authorize the
release, pursuant to Sec. 514.28(a)(2), of excess tax withheld from the
income concerned.
(b) Exemption from, or reduction in rate of, withholding--(1)
Notification of withholding agent. If the Commissioner rules that income
received by such applicant qualifies for exemption from, or reduction in
rate of, U.S. tax under the convention, and the applicant sends a copy
of such ruling to the withholding agent, the income designated in such
ruling shall be exempt, or subject to a reduced rate of, withholding of
U.S. tax
[[Page 85]]
unless the Commissioner or the applicant notifies the withholding agent
that such income ceases to qualify for such benefit. A duplicate copy of
such notification shall be attached to the Form 1042S filed by the
withholding agent with respect to the income concerned.
(2) Change in circumstances. If during the period covered by the
ruling letter, any fact upon which the ruling letter is based materially
changes, the applicant shall immediately notify the withholding agent
and the Commissioner of such change.
Effective Date Note: By T.D. 8734, 62 FR 53498, Oct. 14, 1997,
Sec. 514.26 was removed, effective Jan. 1, 1999. By T.D. 8804, 63 FR
72183, Dec. 31, 1998, the effective date was delayed until Jan. 1, 2000.
By T.D. 8856, 64 FR 73408, Dec. 30, 1999, the effective date was delayed
until Jan. 1, 2001.