Treasury Regulations, Subchapter A, Sec. 1.1463-1
From TaxAlmanac
Sec. 1.1463-1 Tax paid by recipient of income
(a) Tax paid. If the tax required to be withheld under chapter 3 of the Internal Revenue Code is paid by the beneficial owner of the income or by the withholding agent, it shall not be re-collected from the other, regardless of the original liability therefor. However, this section does not relieve the person that did not withhold tax from liability for interest or any penalties or additions to tax otherwise applicable. See §1.1441–7(b) for additional applicable rules.
(b) Effective date. This section applies to failures to withhold occurring after December 31, 2000.
[T.D. 8734, 62 FR 53471, Oct. 14, 1997, as amended by T.D. 8804, 63 FR 72188, Dec. 31, 1998; T.D. 8856, 64 FR 73412, Dec. 30, 1999]
