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131 STAT. 2140 PUBLIC LAW 115–97—DEC. 22, 2017 interest in a partnership would be treated under section 864(c)(8) as effectively connected with the conduct of a trade or business within the United States, the transferee shall be required to deduct and withhold a tax equal to 10 percent of the amount realized on the disposition. ‘‘(2) EXCEPTION IF NONFOREIGN AFFIDAVIT FURNISHED.— ‘‘(A) IN GENERAL.—No person shall be required to deduct and withhold any amount under paragraph (1) with respect to any disposition if the transferor furnishes to the transferee an affidavit by the transferor stating, under penalty of perjury, the transferor’s United States taxpayer identification number and that the transferor is not a for- eign person. ‘‘(B) FALSE AFFIDAVIT.—Subparagraph (A) shall not apply to any disposition if— ‘‘(i) the transferee has actual knowledge that the affidavit is false, or the transferee receives a notice (as described in section 1445(d)) from a transferor’s agent or transferee’s agent that such affidavit or state- ment is false, or ‘‘(ii) the Secretary by regulations requires the transferee to furnish a copy of such affidavit or state- ment to the Secretary and the transferee fails to fur- nish a copy of such affidavit or statement to the Sec- retary at such time and in such manner as required by such regulations. ‘‘(C) RULES FOR AGENTS.—The rules of section 1445(d) shall apply to a transferor’s agent or transferee’s agent with respect to any affidavit described in subparagraph (A) in the same manner as such rules apply with respect to the disposition of a United States real property interest under such section. ‘‘(3) AUTHORITY OF SECRETARY TO PRESCRIBE REDUCED AMOUNT.—At the request of the transferor or transferee, the Secretary may prescribe a reduced amount to be withheld under this section if the Secretary determines that to substitute such reduced amount will not jeopardize the collection of the tax imposed under this title with respect to gain treated under section 864(c)(8) as effectively connected with the conduct of a trade or business with in the United States. ‘‘(4) PARTNERSHIP TO WITHHOLD AMOUNTS NOT WITHHELD BY THE TRANSFEREE.—If a transferee fails to withhold any amount required to be withheld under paragraph (1), the part- nership shall be required to deduct and withhold from distribu- tions to the transferee a tax in an amount equal to the amount the transferee failed to withhold (plus interest under this title on such amount). ‘‘(5) DEFINITIONS.—Any term used in this subsection which is also used under section 1445 shall have the same meaning as when used in such section. ‘‘(6) REGULATIONS.—The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this subsection, including regulations pro- viding for exceptions from the provisions of this subsection.’’. (c) EFFECTIVE DATES.— VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00088 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS