---
kind: "section"
citation: "26 U.S.C. § 1473"
title: "26"
title_heading: "Internal Revenue Code"
number: "1473"
heading: "Definitions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1473"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 4 — Taxes to Enforce Reporting on Certain Foreign Accounts"
---

# §1473. Definitions


For purposes of this chapter—

- (1) **Withholdable payment—** Except as otherwise provided by the Secretary—
  - (A) **In general—** The term “withholdable payment” means—
    - (i) any payment of [interest](/usc/26/856.md?p=f-1) (including any [original issue discount](/usc/26/1278.md?p=a-5)), [dividends](/usc/26/316.md?p=a), rents, salaries, [wages](/usc/26/1397.md?p=a-1), premiums, annuities, [compensations](/usc/26/414.md?p=n-5-C-iii), remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, if such payment is from sources within the [United States](/usc/26/993.md?p=g), and
    - (ii) any gross proceeds from the sale or other [disposition](/usc/26/424.md?p=c-1) of any [property](/usc/26/317.md?p=a) of a type which can produce [interest](/usc/26/856.md?p=f-1) or [dividends](/usc/26/316.md?p=a) from sources within the [United States](/usc/26/993.md?p=g).
  - (B) **Exception for income connected with United States business—** Such term shall not include any item of income which is taken into account under section [871(b)(1)](/usc/26/871.md?p=b-1) or [882(a)(1)](/usc/26/882.md?p=a-1) for the taxable year.
  - (C) **Special rule for sourcing interest paid by foreign branches of domestic financial institutions—** [Subparagraph (B)](/usc/26/861.md?p=a-1-B) of section 861(a)(1) shall not apply.
- (2) **Substantial United States owner—**
  - (A) **In general—** The term “substantial United States owner” means—
    - (i) with respect to any corporation, any [specified United States person](#3) which owns, directly or [indirectly](/usc/26/101.md?p=a-3-B), more than 10 percent of the [stock](/usc/26/1504.md?p=a-4) of such corporation (by vote or [value](/usc/26/851.md?p=c-4)),
    - (ii) with respect to any [partnership](/usc/26/761.md?p=a), any [specified United States person](#3) which owns, directly or [indirectly](/usc/26/101.md?p=a-3-B), more than 10 percent of the profits [interests](/usc/26/856.md?p=f-1) or capital [interests](/usc/26/856.md?p=f-1) in such [partnership](/usc/26/761.md?p=a), and
    - (iii) in the case of a trust—
      - (I) any [specified United States person](#3) treated as an owner of any portion of such trust under subpart E of part I of subchapter J of [chapter 1](/usc/26/chstA/ch1.md), and
      - (II) to the extent provided by the Secretary in regulations or other guidance, any [specified United States person](#3) which holds, directly or [indirectly](/usc/26/101.md?p=a-3-B), more than 10 percent of the beneficial [interests](/usc/26/856.md?p=f-1) of such trust.
  - (B) **Special rule for investment vehicles—** In the case of any financial institution described in [section 1471(d)(5)(C)](/usc/26/1471.md?p=d-5-C), clauses [(i)](#2-A-i), [(ii)](#2-A-ii), and [(iii)](#2-A-iii) of subparagraph (A) shall be applied by substituting “0 percent” for “10 percent”.
- (3) **Specified United States person—** Except as otherwise provided by the Secretary, the term “specified United States person” means any [United States](/usc/26/993.md?p=g) person other than—
  - (A) any corporation the [stock](/usc/26/1504.md?p=a-4) of which is regularly traded on an established [securities](/usc/26/368.md?p=a-2-F-vii) market,
  - (B) any corporation which is a member of the same expanded [affiliated group](/usc/26/864.md?p=e-5-A) (as defined in [section 1471(e)(2)](/usc/26/1471.md?p=e-2) without regard to the last sentence thereof) as a corporation the [stock](/usc/26/1504.md?p=a-4) of which is regularly traded on an established [securities](/usc/26/368.md?p=a-2-F-vii) market,
  - (C) any [organization](/usc/26/414.md?p=m-6-A) exempt from taxation under [section 501(a)](/usc/26/501.md?p=a) or an individual retirement plan,
  - (D) the [United States](/usc/26/993.md?p=g) or any wholly owned agency or instrumentality thereof,
  - (E) any State, the District of Columbia, any possession of the [United States](/usc/26/993.md?p=g), any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing,
  - (F) any bank (as defined in [section 581](/usc/26/581.md)),
  - (G) any [real estate investment trust](/usc/26/856.md?p=a) (as defined in [section 856](/usc/26/856.md)),
  - (H) any [regulated investment company](/usc/26/851.md?p=a) (as defined in [section 851](/usc/26/851.md)),
  - (I) any common trust [fund](/usc/26/851.md?p=g-2) (as defined in [section 584(a)](/usc/26/584.md?p=a)), and
  - (J) any trust which—
    - (i) is exempt from tax under [section 664(c)](/usc/26/664.md?p=c), or
    - (ii) is described in [section 4947(a)(1)](/usc/26/4947.md?p=a-1).
- (4) **Withholding agent—** The term “withholding agent” means all persons, in whatever capacity acting, having the [control](/usc/26/368.md?p=a-2-H-i), receipt, custody, disposal, or payment of any [withholdable payment](#1-A).
- (5) **Foreign entity—** The term “foreign entity” means any entity which is not a [United States](/usc/26/993.md?p=g) person.

## Source credit

(Added Pub. L. 111–147, title V, § 501(a), Mar. 18, 2010, 124 Stat. 103.)