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Lesson 11: Undocumented accounts/Presumption Rules

In this lesson, ComplyPro discusses the Undocumented accounts/Presumption Rules. When documentation is unavailable, presumption rules are applied to determine the payee’s status, such as U.S. or foreign, beneficial owner or intermediary, and entity type. By complying with these rules, withholding agents can avoid liability for tax, interest, and penalties. However, if documentation is required for reduced withholding rates or reporting, reliance on presumed status is not permitted. Failing to withhold or report correctly may result in potential liability.