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Chapter 12Chapter 1 MULTIPLE CHOICE Subchapter Multiple CHOICE Surname: ___In the box write the letter of the choice that is the definition of the term or best answers the question. There is only
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Chapter 3 of the Internal Revenue Code deals primarily with the withholding of tax on certain payments made to foreign persons, which includes income from U.S. sources.
Foreign persons receiving certain types of income from U.S. sources and U.S. withholding agents who make payments to foreign persons are required to file Chapter 3.
To fill out Chapter 3, one must complete Form W-8 or Form W-9, depending on the circumstances, indicating the type of entity, beneficial owner status, and providing necessary tax identification numbers.
The purpose of Chapter 3 is to ensure the collection of taxes on certain payments to foreign individuals and entities to prevent tax avoidance and ensure compliance with U.S. tax laws.
The information that must be reported includes the name and address of the payee, the type of income, the amount paid, any applicable tax treaty benefits claimed, and related documentation.
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