! that should be subject to chapter 4 withholding

CAUTION should not be included in a U.S. payee pool that is

described in Regulations section 1.6049-4(c)(4)(ii). Instead, an allocation of a payment of an amount subject to chapter 3 withholding to a withholding rate pool of U.S. payees must identify the payees as described in Regulations section 1.1471-3(c)(3)(iii)(B)(2).

For chapter 3 and chapter 61 purposes. For chapter 3 and chapter 61 purposes, in the case of a reportable amount that is also a withholdable payment, the withholding statement should allocate only the portion of the payment that was not allocated to a chapter 4 withholding rate pool or a pool described in Regulations section 1.1441-1(e)(3)(iv)(C) or to a payee identified on the withholding statement to whom withholding was applied under chapter 4. The withholding statement must generally include the following information.

• Include the name, address, U.S. TIN (if any), chapter 4 status (for a foreign person receiving a withholdable payment), and the type of documentation (documentary evidence, Form W-9, or type of Form W-8) for every person for whom documentation has been received and state whether that person is a U.S. exempt recipient, a U.S. non-exempt recipient, or a foreign person. The statement must indicate whether a foreign person is a beneficial owner or an intermediary, flow-through entity, U.S. branch, or territory financial institution and the type of recipient, based on the recipient codes shown on Form 1042-S.

• Allocate each payment by income type to every payee for whom documentation has been provided. The type of income is based on the income codes reported on Form 1042-S (or, if applicable, the income categories for Form 1099). If a payee receives income through another NQI, flow-through entity, or U.S. branch acting as an intermediary, the withholding certificate must also state the name, address, U.S. TIN (if known), and, for a withholdable payment, the chapter 4 status (if required) and GIIN (if applicable) of the other NQI or U.S. branch from which the payee directly receives the payment or the flow-through entity in which the payee has a direct ownership interest. If another NQI, flow-through entity, or U.S. branch fails to allocate a payment, you must provide, for that payment, the name of the NQI, flow-through entity, or U.S. branch that failed to allocate the payment.

• If a payee is identified as a foreign person, specify the rate of withholding under chapter 3 to which the payee is subject, the payee’s country of residence and, if a reduced rate of withholding is claimed, the basis for that reduced rate (for example, treaty benefit, portfolio interest, or exemption under section 501(c)(3), 892, or 895). The statement must also include the U.S. or foreign TIN (if required) and, if the beneficial owner is not an individual and is claiming treaty benefits, state whether the limitation on benefits and section 894 statements have been provided by the beneficial owner. You must inform the withholding agent as to which payments those statements relate.

• Include any other information the withholding agent requests in order to fulfill its withholding and reporting obligations under chapters 3 and 4 of the Code and/or Form 1099 reporting and backup withholding responsibility. Withholding statement for amount realized or PTP distribution. In the case of a PTP distribution, an NQI may provide a withholding statement and appropriate documentation for each of its account holders receiving the distribution to allocate to its account holders the amounts subject to withholding on the distribution under chapters 3 and 4 (or under section 1446(a)). See Withholding statement, earlier, for additional requirements of a withholding statement provided by an intermediary for a PTP distribution.

In the case of an amount realized (including on a PTP distribution), however, an NQI may provide a withholding statement and appropriate documentation on the transferors of the PTP interest only when:

• The broker paying the amount realized to the NQI agrees to report (or ensures another broker will report) under section 1461 (and, if required, under section 6045) with respect to the amount realized allocated each of the account holders that are the transferors of the PTP interest (and provide NQI a copy of each Form 1042-S issued due to this reporting);

• The NQI provides to the broker the statement described in Regulations section 1.6031(c)-1T(a)(1) with respect to each NQI account holder that is a partner required to be issued a statement under section 6031(b) for the calendar year of the

payment and the information for the broker to allocate the amount realized to each transferor; and

• The NQI receives from the broker paying the amount realized a written representation that the broker is acting as an agent of the PTP with respect to the statement described in Regulations section 1.6031(c)-1T(a) or otherwise designates the broker as its agent for providing the statement to the PTP (or the PTP's agent).

The allowance for an NQI to provide a withholding