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A WP or WT acting in that capacity must assume primary chapters 3 and 4 withholding responsibility for payments subject to withholding and must assume certain reporting requirements with respect to its U.S. partners (beneficiaries), and owners. A WP or WT may act in that capacity for reportable amounts that are distributed to (or included in the distributive share of), its indirect partners, beneficiaries, or owners that are not U.S. nonexempt recipients (except for a U.S. nonexempt recipient that is included in a chapter 4 withholding rate pool of U.S. payees). A WP or WT must act in that capacity for reportable amounts that are distributed to (or included in the distributive share of), its direct partners, beneficiaries, or owners.
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