[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: 26CFR514.29]

[Page 86-87]
 
                       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. 514.29  Refund of excess tax paid to Director of International Operations.

    (a) In general. Where U.S. tax withheld at the source on items of 
income covered by the convention is in excess of the tax imposed under 
subtitle A (relating to the income tax) of the Internal Revenue Code, as 
modified by the convention, and such withheld amounts have been paid to 
the Director of International Operations, a claim by the owner of such 
income for refund of any resulting overpayment may be made under section 
6402 of such Code, and the regulations thereunder.
    (b) Form of claim--(1) Where return previously filed. If the owner 
of the income has previously filed an income tax return with the 
Internal Revenue Service for the taxable year in which an overpayment 
has resulted because of the application of the convention, he should 
make a claim for refund of the overpayment by filing Form 843 or an 
amended return.
    (2) Where no return previously filed. If the owner of the income has 
not previously filed an income tax return with the Internal Revenue 
Service for the taxable year in which an overpayment has resulted 
because of the application of the convention, he should make a claim for 
refund of the overpayment by filing Form 1040NR or Form 1120-F, 
whichever is applicable, showing the overpayment. Such return will serve 
as a claim for refund, and it is not necessary for the taxpayer to file 
Form 843.
    (c) Information required. If the owner's total gross income 
(including every item of capital gain subject to tax) from sources 
within the United States for the taxable year in which such overpayment 
resulted has not been disclosed in an income tax return filed with the 
Internal Revenue Service prior to the time the claim for refund is made, 
such owner shall disclose such total gross income with his claim. In the 
event that securities are held in the name of a person other than the 
actual or beneficial owner, the name and

[[Page 87]]

address of such person shall be furnished with the claim. In addition to 
such other information as may be required to establish the overpayment, 
there shall also be included in such claim for refund:
    (1) A statement that, at the time when the items of income were 
received 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, a French corporation or person resident in France for French tax 
purposes.
    (2) If the owner's claim is based on exemption from, or reduction in 
rate of, tax for dividends, interest, or royalties, a statement that the 
owner does not have a permanent establishment in the United States, or, 
if the owner does have such a permanent establishment, that the holding 
from which such income was derived was not effectively connected with 
such permanent establishment.

    Effective Date Note:  By T.D. 8734, 62 FR 53498, Oct. 14, 1997, 
Sec. 514.29 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.