The IRS delayed implementing certain rules that are intended to prevent non-U.S. persons from using derivative instruments to avoid U.S. withholding tax on U.S. equities.

In Notice 2020-2, the IRS reported that both the effective date for Section 871(m) and the phase-in period in Notice 2016-76 will be delayed for two additional years.

The anti-abuse rule will continue to apply during the phase-in years.