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The Commissioner has ruled that the section 1.861-
2(b)(1)(i)(a), Income Tax Regs., definition of "persons" prevails
over the section 581 definition (the first requirement, supra),
which applies the term "bank" only to corporations. Rev. Rul.
83-176, 1983-2 C.B. at 112. The Commissioner, however, has ruled
that the "other language in section 581 relating to banking
activities can be used as an indication of the requirements
necessary to be considered engaged in the banking business."
Id. In other words, the ruling requires the interest payor to
meet only the second and third requirements of the section 581
definition of "bank" in order to be considered "carrying on the
banking business" for purposes of section 861(c).
(2) Taxation of Interest
Section 871(a)(1)(A) imposes on a nonresident alien
individual and section 881(a)(1) imposes on a foreign corporation
a tax of 30 percent of the amount of interest that is treated as
income from sources within the United States, if the interest is
not effectively connected income to the recipient. Interest that
is treated as income from sources without the United States is
not subject to tax pursuant to either section 871(a) or section
881(a).
Section 1441(a) provides that any person "having the
control, receipt, custody, disposal, or payment of any of the
items of income specified in * * * [section 1441](b) (to the
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