SECTION 5. USE OF SECTION 1445

PRINCIPLES FOR REPORTING AND PAYING OVER SECTION 1446(f) WITHHOLDING FOR DISPOSITIONS OF NON-PUBLICLY TRADED PARTNERSHIP INTERESTS

The Treasury Department and the IRS have determined that, until regulations, other guidance, or forms and instructions have been issued under section 1446(f), transferees required to withhold under section 1446(f)(1) must use the rules in section 1445 and the regulations thereunder for purposes of reporting and paying over the tax, except as otherwise provided in this notice. See, e.g., § 1.1445–1(c). The forms specified in those rules include Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests, and Form 8288–A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests . The transferee must include the statement “Section 1446(f)(1) withholding” at the top of both the relevant Form 8288 and the relevant Form 8288–A. Except as provided in section 8 of this notice, the transferee must also enter the amount subject to withholding under section 1446(f)(1) on line 5b of Part I of the Form 8288 and on line 3 of Form 8288–A and enter the amount withheld on line 6 of Part I of Form 8288 and on line 2 of Form 8288–A. At this time, the IRS will not issue withholding certificates under section 1446(f)(3), such as those provided on Form 8288–B, Appli- cation for Withholding Certificate for Dis- positions by Foreign Persons of U.S. Real Property Interests .

The rules for reporting and paying over amounts withheld and the rules regarding the contents of Form 8288 and Form 8288–A contained in § 1.1445–1(c) and (d) (such as the requirement to report and pay over withholding within 20 days of a transfer) apply to the submission of sec

Bulletin No. 2018–16 497 April 16, 2018

tion 1446(f)(1) withholding. A transferee that is required to pay over a withholding tax under section 1446(f) is made liable for that tax under section 1461 (including any applicable penalties and interest). A person that is required, but fails, to pay over the withholding tax required by section 1446(f) may also be subject to civil and criminal penalties. Officers or other responsible persons of either an entity that is required to pay over the withholding tax or any other withholding agent may be subject to a civil penalty under section 6672. The Treasury Department and the IRS intend to issue regulations providing that with respect to any forms that were required to be filed, or amounts that were due, under section 1446(f) on or before May 31, 2018, no penalties or interest will be asserted if these forms are filed with, and such amounts are paid over to, the IRS on or before May 31, 2018.