IRS delays effective date, revises transition rules regarding final regs. for withholding on foreign persons.

IRS Notice 98-16 states that the applicability of IRS final regulations, which will provide guidance regarding withholding tax on payments made to foreign persons, has been altered. The regulations will become applicable to payments made beginning in 2000. Transition rules, such as those regarding withholding statements and certificates, have been changed. The IRS plans to issue in 1998 model qualified intermediary withholding agreements applicable to rules in IRS Revenue Procedure 98-27.