# Revisions to Regulations Relating to Repeal of Tax on Interest of Nonresident Alien Individuals and Foreign Corporations Received From Certain Portfolio Debt Investments
> **IRS** · Final regulations. · Published 2007-04-12 · Effective 2007-04-12 · 72 FR 18386
## Document
- **Document number:** E7-6766
- **Category:** tax-irs
- **Sub-agency:** IRS
- **Federal Register citation:** 72 FR 18386
- **CFR reference:** 26 CFR 1
- **Publication date:** 2007-04-12
- **Effective date:** 2007-04-12
- **Treasury docket:** TD 9323
## Abstract

This document contains final regulations under sections 871 and 881 of the Internal Revenue Code (Code) relating to the exclusion from gross income of portfolio interest paid to a nonresident alien individual or foreign corporation. These regulations clarify how the portfolio interest rules apply with respect to interest paid to a partnership (or simple or grantor trust) that has foreign partners (or beneficiaries or owners). These regulations also retroactively remove the rule in Treasury Regulation Sec. 1.1441-1(b)(7)(iii) that would impose interest under section 6601 when no underlying tax liability is due.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2007/04/12/E7-6766/revisions-to-regulations-relating-to-repeal-of-tax-on-interest-of-nonresident-alien-individuals-and)
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