Section 4. Modified — Internal Revenue Bulletin 1998-15

The final withholding regulations provide transition rules for obtaining new withholding certificates and statements containing the necessary information and representations required by those regulations. The IRS released and requested public comments on draft new withholding certificates in Announcement 98–15, published in 1998–10 I.R.B. 36. The new withholding certificates would replace current Forms W–8, 1001, 4224, 8709, and 1078, and statements described in §1.1441–5 of the regulations in effect before January 1, 1999 (the “existing certificates or statements”).

Generally, under the transition rules contained in the final withholding regulations, a withholding agent holding a valid existing certificate or statement on December 31, 1998, may treat that certificate or statement as valid until the earlier of its expiration or December 31, 1999. In addition, the transition rules provide that any existing withholding certificate or statement that is valid on January 1, 1998, and that expires during 1998, remains valid until December 31, 1998. (These rules cannot operate together, however, to extend beyond December 31, 1998, the validity of a certificate that, without the transition rule, would expire in 1998.)

The IRS intends to modify the withholding certificate and statement transition rules of the final withholding regulations to provide that a withholding agent holding a valid existing certificate or statement on December 31, 1999, may treat that certificate or statement as valid until the earlier of its expiration or December 31, 2000. No existing certificates or statements will be effective after December 31, 2000. As under the final regulations, existing certificates and statements that expire in 1999 will not be effective after expiration. The existing transition rule providing that any existing withholding certificate or statement that is valid on January 1, 1998, and that expires during 1998 remains valid until Decem

Effective Date of Regulations Under Section 1441 and Qualified Intermediary Procedures

Notice 98–16