Amounts not subject to reporting under Chapter 3
- Payments made by individuals if the individuals are not making the payment as part of their trade or business and no withholding is required to be made.
- Bank deposit interest that is not effectively connected with the conduct of a U.S. trade or business.
- Original issue discount on certain short- term obligations.
- Nonbusiness gambling income of a nonresident alien playing blackjack, baccarat, craps, roulette, or big-6 wheel in the United States.
- Amounts paid as part of the purchase price of an obligation sold between interest payment dates.
- Original issue discount paid on the sale of an obligation other than a redemption.
- Insurance premiums paid on a contract issued by a foreign insurer.
Amounts not subject to reporting under Chapter 4
- Interest or original issue discount from a short-term obligation.
- Payments of U.S. source FDAP income made prior to January 1, 2017, with respect to an offshore obligation.
- Payments made prior to January 1, 2017, by a secured party with respect to collateral that secures certain transactions under certain collateral arrangements.
- Withholdable payments made prior to July 1, 2016, with respect to a preexisting obligation for which a withholding agent does not have documentation indicating that the payee is a nonparticipating FFI.
- Payments made under a grandfathered obligation (e.g., obligations outstanding on July 1, 2014).
For details on the types of income that are NOT subject to withholding and reporting, refer to the ¡°Income Subject to Withholding¡± section of Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.