Treas. Reg. 1.1461-2(a): a withholding agent may repay tax it over-withheld (26 CFR 1.1461-2(a)(1), (a)(2)(i))
A buyer that withheld more than the tax due on a licence fee (the full default rate where the holder's treaty rate was lower, for example) may repay the excess to the holder itself and recover it from its own later deposits, within the timing rules of this section, so the holder need not claim it from the IRS.
Dated 18 Oct 2026Source checked 18 Oct 2026Basis: primary text
In the source's own words
“a withholding agent that has overwithheld under chapter 3 of the Internal Revenue Code, and made a deposit of the tax as provided in § 1.6302-2(a), may adjust the overwithheld amount either pursuant to the reimbursement procedure described in paragraph (a)(2) of this section or pursuant to the set-off procedure described in paragraph (a)(3) of this section. ... Under the reimbursement procedure, the withholding agent repays the beneficial owner or payee for the amount of tax overwithheld.”
Where it was read
Figures it counts in
It is shown on its own, not counted into a figure.
Cited in this guide