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2. Harold, a nonresident alien, owns 5% of USAco, Inc., a U.S. corporation. USAco pays Harold a $1,000 dividend during the current year. Harold also
2. Harold, a nonresident alien, owns 5% of USAco, Inc., a U.S. corporation. USAco pays Harold a $1,000 dividend during the current year. Harold also purchases an unassignable bond issued by USAco and receives a $1,000 interest payment. Are there any U.S. withholding requirements with respect to these interest and dividend payments? Please explain.
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