New Escrow Procedures Relating to Withholding

SIFMA provides comments to the U.S. Department of Treasury and the Internal Revenue Service (IRS) on withholding procedures under Section 1441 of the Internal Revenue Code (Code) for certain distributions where Section 302 of the Code applies.  The proposed regulations would provide securities dealers with new escrow procedures that could be used to satisfy their withholding, reporting and deposit responsibilities with respect to distributions in redemption of stock of a corporation that is actively traded on an established financial market.  SIFMA requests to testify at the public hearing on these proposed regulations.