Common use of Entity Payee or Account Held by an Entity Clause in Contracts

Entity Payee or Account Held by an Entity. With respect to a withholdable payment made to an entity payee, a participating FFI must apply the presumption rules of §1.1471-3(f). The presumption rules of §1.1471-3(f) also apply to an account held by an entity. However, in the case of an account held by a passive NFFE that provides the documentation described in §1.1471-3(d)(12) to establish its status as a passive NFFE but fails to provide the information regarding its owners required under §1.1471- 3(d)(12)(iii), the participating FFI must treat the account as held by a recalcitrant account holder in accordance with §1.1471-5(g)(2)(iv).