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trade or business within the United States or, if so engaged,
that the royalties were not effectively connected with such trade
or business, are also present in the application of section 1441.
See also secs. 1.1442-2 and 1.1441-4, Income Tax Regs. Compare
sec. 1442(b)9 with sec. 1441(c)10. Thus, there is no
inconsistency in applying section 1442 rather than section 1441
herein since similar evidence is involved in providing a basis
for determining whether or not a taxpayer is exempt from
withholding under either section. Inconsistency and the absence
of a need for different evidence are critical elements in
9 Sec. 1442(b) provides:
(b) Exemption.--Subject to such terms and
conditions as may be provided by regulations prescribed
by the Secretary, subsection (a) shall not apply in the
case of a foreign corporation engaged in trade or
business within the United States if the Secretary
determines that the requirements of subsection (a)
impose an undue administrative burden and that the
collection of the tax imposed by section 881 on such
corporation will not be jeopardized by the exemption.
10 Sec. 1441(c) provides:
(c) Exceptions.--
(1) Income connected with United States
business.--No deduction or withholding under
subsection (a) shall be required in the case of
any item of income (other than compensation for
personal services) which is effectively connected
with the conduct of a trade or business within the
United States and which is included in the gross
income of the recipient under section 871(b)(2)
for the taxable year.
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