IRC section 1461: the payer is liable for the tax it was required to withhold (26 U.S.C. 1461)
If the US buyer pays a holder in full when it should have withheld, the buyer owes the tax itself. That is why buyers ask every foreign holder for a tax form before the first payment.
Dated 18 Oct 2026Source checked 18 Oct 2026Basis: primary text
In the source's own words
“Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter.”
Where it was read
Figures it counts in
It is shown on its own, not counted into a figure.
Cited in these 2 guides