Ezel / IRS Rulings / 1112011
Chief Counsel Advice 1112011 Released March 25, 2011 Advice

CCA 1112011: Partnerships must withhold on FDAP paid to nonresident aliens

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This page covers one taxpayer's ruling from 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that a partnership must withhold under sections 1441 and 1442 when it pays fixed or determinable annual or periodic income to a nonresident alien. The advice states that this applies whether or not the payee is a partner, as long as the partnership is making the payment.

Ruling snapshot

  • Question: Must a partnership withhold when it pays FDAP income to a nonresident alien who may or may not be a partner?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 1441, 1442, and 1446

Full text (IRS public release)

ID: CCA-119202-10 Number: 201112011
Release Date: 3/25/2011
Office: ----------
UILC: 1446.00-00

From: -------------------
Sent: Tuesday, November 09, 2010 2:02 PM
To: ---------------------
Cc: --------------------
Subject: Withholding write up ---------

Hi --------

Please see the attached for our redline markup of the withholding/TEFRA document you sent out earlier.

Note that a partnership will be required to withhold under 1441-42 regardless of whether the payee is a
partner, so long as the partnership is paying FDAP to a non-resident alien. ----------------------------------------

Feel free to call me if you have any questions/concerns. Thanks.

Attachment: Redacted

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