[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: 26CFR514.116]

[Page 99]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 514--FRANCE--Table of Contents
 
                       Subpart--General Income Tax
 
Sec. 514.116  Reciprocal administrative assistance.

    (a) General. (1) By Article 20 of the convention, the United States 
and France adopt the principle of exchange of information for use in the 
determination and assessment of the taxes with which the convention is 
concerned. Pursuant to such principle, every United States withholding 
agent shall make and file with the collector, in duplicate, an 
information return on Form 1042C for the calendar year 1945 and each 
subsequent calendar year in addition to withholding return Form 1042, 
with respect to dividends, interest, royalties, rents, salaries, wages, 
pensions, and annuities, or other fixed or determinable annual or 
periodical income paid to persons whose addresses are in France whether 
or not tax has been withheld with respect to such income. There shall be 
reported on Form 1042C not only such items of income listed on Form 
1042, but also such items of interest listed on monthly returns, Form 
1012, and there shall be shown on such return items of income paid to 
such addressees even though such items are exempt from tax under the 
convention, as, for example, certain royalties.
    (2) The information and correspondence relating to exchange of 
information may be transmitted direct by the Secretary to the Minister.
    (b) Information to be furnished in due course. In accordance with 
the provisions of Article 21 of the convention, the Secretary shall 
forward to the Minister as soon as practicable after the close of the 
calendar year 1945 and of each calendar year thereafter during which the 
convention is in effect, the names and addresses of all persons whose 
addresses are within France and who derive from sources within the 
United States, dividends, interest, rents, royalties, salaries, wages, 
pensions, and annuities, or other fixed or determinable annual or 
periodical profits and income showing the amounts of such profits and 
income in the case of each addressee. For these purposes, the 
transmission to the Minister of information return, Form 1042C, as 
provided in paragraph (a) of this section for the calendar year 1945 and 
subsequent calendar years shall constitute a compliance with the 
provisions of Article 21 of the convention and of this subpart.
    (c) Information in specific cases. Under the provisions of Article 
22 of the convention, the Secretary shall furnish (if request therefor 
is made by the Minister through diplomatic channels) to the Minister 
such information, relative to the tax liability to France of any person 
(other than a citizen of the United States or a United States domestic 
corporation or other United States domestic entity), as is available to, 
or may be obtained by, the Secretary under the revenue laws of the 
United States.