12 2 STA T . 1 64 1 PUBLIC LA W 11 0– 24 5—J U NE 1 7, 200 8‘ ‘ (A)thepayor o fsuc h i te m is — ‘‘(i) a Un ite dS tates person , or ‘‘(ii) a person w ho is not a United States person b utwhoe l ects to be treated as a United States person for purposes of para g raph ( 1 ) and meets such re q uire - ments as the Secretary may pro v ide to ensure that the payor will meet the requirements of paragraph (1), and ‘‘( B ) the covered e x patriate— ‘‘(i) notifies the payor of his status as a covered expatriate, and ‘‘(ii) ma k es an irrevocable waiver of any right to claim any reduction under any treaty with the United States in withholding on such item . ‘‘( 4 ) DEF E R RE DCOMP E NSATI ON ITEM.— F or purposes of this subsection, the term ‘deferred compensation item ’ means— ‘‘(A) any interest in a plan or arrangement described in section 2 1 9 (g)( 5 ), ‘‘(B) any interest in a foreign pension plan or similar retirement arrangement or program, ‘‘( C ) any item of deferred compensation, and ‘‘(D) any property, or right to property, which the indi- vidual is entitled to receive in connection with the perform- ance of services to the extent not previously taken into account under section 83 or in accordance with section 83. ‘‘(5) EX CEPTION.— P aragraphs (1) and (2) shall not apply to any deferred compensation item to the extent attributable to services performed outside the United States while the cov- ered expatriate was not a citi z en or resident of the United States. ‘‘( 6 ) SPECIA L R U LES.— ‘‘(A) APPLICATION OF W IT H HOLDIN G RULES.— R ules similar to the rules of subchapter B of chapter 3 shall apply for purposes of this subsection. ‘‘(B) APPLICATION OF TAX.—Any item sub j ect to the withholding tax imposed under paragraph (1) shall be sub- ject to tax under section 8 7 1. ‘‘(C) COORDINATION WITH OTHER WITHHOLDING RE Q UIREMENTS.—Any item subject to withholding under paragraph (1) shall not be subject to withholding under section 1441 or chapter 24. ‘‘(e) T REATMENT OF SPECIFIED TAX DEFERRED ACCOUNTS.— ‘‘(1) ACCOUNT TREATED AS DISTRI B UTED.— I n the case of any interest in a specified tax deferred account held by a covered expatriate on the day before the expatriation date— ‘‘(A) the covered expatriate shall be treated as receiving a distribution of his entire interest in such account on the day before the expatriation date, ‘‘(B) no early distribution tax shall apply by reason of such treatment, and ‘‘(C) appropriate adjustments shall be made to subse- quent distributions from the account to reflect such treat- ment. ‘‘(2) SPECIFIED TAX DEFERRED ACCOUNT.—For purposes of paragraph (1), the term ‘specified tax deferred account’ means an individual retirement plan (as defined in section 77 0 1(a)(37))
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