
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1463]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
    CHAPTER 3--WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN 
                              CORPORATIONS
 
           Subchapter B--Application of Withholding Provisions
 
Sec. 1463. Tax paid by recipient of income

    If--
        (1) any person, in violation of the provisions of this chapter, 
    fails to deduct and withhold any tax under this chapter, and
        (2) thereafter the tax against which such tax may be credited is 
    paid,

the tax so required to be deducted and withheld shall not be collected 
from such person; but this section shall in no case relieve such person 
from liability for interest or any penalties or additions to the tax 
otherwise applicable in respect of such failure to deduct and withhold.

(Aug. 16, 1954, ch. 736, 68A Stat. 360; Pub. L. 101-239, title VII, 
Sec. 7743(a), Dec. 19, 1989, 103 Stat. 2406; Pub. L. 104-188, title I, 
Sec. 1704(t)(9), Aug. 20, 1996, 110 Stat. 1887.)


                               Amendments

    1996--Pub. L. 104-188 substituted ``this section'' for ``this 
subsection''.
    1989--Pub. L. 101-239 amended section generally. Prior to amendment, 
section read as follows: ``If any tax required under this chapter to be 
deducted and withheld is paid by the recipient of the income, it shall 
not be re-collected from the withholding agent; nor in cases in which 
the tax is so paid shall any penalty be imposed on or collected from the 
recipient of the income or the withholding agent for failure to return 
or pay the same, unless such failure was fraudulent and for the purpose 
of evading payment.''


                    Effective Date of 1989 Amendment

    Section 7743(b) of Pub. L. 101-239 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to failures 
after December 31, 1989.''
