
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 101(c)(6)-(9)]
[CITE: 26USC3402]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                      Subtitle C--Employment Taxes
 
         CHAPTER 24--COLLECTION OF INCOME TAX AT SOURCE ON WAGES
 
Sec. 3402. Income tax collected at source


(a) Requirement of withholding

                           (1) In general

        Except as otherwise provided in this section, every employer 
    making payment of wages shall deduct and withhold upon such wages a 
    tax determined in accordance with tables or computational procedures 
    prescribed by the Secretary. Any tables or procedures prescribed 
    under this paragraph shall--
            (A) apply with respect to the amount of wages paid during 
        such periods as the Secretary may prescribe, and
            (B) be in such form, and provide for such amounts to be 
        deducted and withheld, as the Secretary determines to be most 
        appropriate to carry out the purposes of this chapter and to 
        reflect the provisions of chapter 1 applicable to such periods.

                         (2) Amount of wages

        For purposes of applying tables or procedures prescribed under 
    paragraph (1), the term ``the amount of wages'' means the amount by 
    which the wages exceed the number of withholding exemptions claimed 
    multiplied by the amount of one such exemption. The amount of each 
    withholding exemption shall be equal to the amount of one personal 
    exemption provided in section 151(b), prorated to the payroll 
    period. The maximum number of withholding exemptions permitted shall 
    be calculated in accordance with regulations prescribed by the 
    Secretary under this section, taking into account any reduction in 
    withholding to which an employee is entitled under this section.

(b) Percentage method of withholding

    (1) If wages are paid with respect to a period which is not a 
payroll period, the withholding exemption allowable with respect to each 
payment of such wages shall be the exemption allowed for a miscellaneous 
payroll period containing a number of days (including Sundays and 
holidays) equal to the number of days in the period with respect to 
which such wages are paid.
    (2) In any case in which wages are paid by an employer without 
regard to any payroll period or other period, the withholding exemption 
allowable with respect to each payment of such wages shall be the 
exemption allowed for a miscellaneous payroll period containing a number 
of days equal to the number of days (including Sundays and holidays) 
which have elapsed since the date of the last payment of such wages by 
such employer during the calendar year, or the date of commencement of 
employment with such employer during such year, or January 1 of such 
year, whichever is the later.
    (3) In any case in which the period, or the time described in 
paragraph (2), in respect of any wages is less than one week, the 
Secretary, under regulations prescribed by him, may authorize an 
employer to compute the tax to be deducted and withheld as if the 
aggregate of the wages paid to the employee during the calendar week 
were paid for a weekly payroll period.
    (4) In determining the amount to be deducted and withheld under this 
subsection, the wages may, at the election of the employer, be computed 
to the nearest dollar.

(c) Wage bracket withholding

    (1) At the election of the employer with respect to any employee, 
the employer shall deduct and withhold upon the wages paid to such 
employee a tax (in lieu of the tax required to be deducted and withheld 
under subsection (a)) determined in accordance with tables prescribed by 
the Secretary in accordance with paragraph (6).
    (2) If wages are paid with respect to a period which is not a 
payroll period, the amount to be deducted and withheld shall be that 
applicable in the case of a miscellaneous payroll period containing a 
number of days (including Sundays and holidays) equal to the number of 
days in the period with respect to which such wages are paid.
    (3) In any case in which wages are paid by an employer without 
regard to any payroll period or other period, the amount to be deducted 
and withheld shall be that applicable in the case of a miscellaneous 
payroll period containing a number of days equal to the number of days 
(including Sundays and holidays) which have elapsed since the date of 
the last payment of such wages by such employer during the calendar 
year, or the date of commencement of employment with such employer 
during such year, or January 1 of such year, whichever is the later.
    (4) In any case in which the period, or the time described in 
paragraph (3), in respect of any wages is less than one week, the 
Secretary, under regulations prescribed by him, may authorize an 
employer to determine the amount to be deducted and withheld under the 
tables applicable in the case of a weekly payroll period, in which case 
the aggregate of the wages paid to the employee during the calendar week 
shall be considered the weekly wages.
    (5) If the wages exceed the highest wage bracket, in determining the 
amount to be deducted and withheld under this subsection, the wages may, 
at the election of the employer, be computed to the nearest dollar.
    (6) In the case of wages paid after December 31, 1969, the amount 
deducted and withheld under paragraph (1) shall be determined in 
accordance with tables prescribed by the Secretary. In the tables so 
prescribed, the amounts set forth as amounts of wages and amounts of 
income tax to be deducted and withheld shall be computed on the basis of 
the table for an annual payroll period prescribed pursuant to subsection 
(a).

(d) Tax paid by recipient

    If the employer, in violation of the provisions of this chapter, 
fails to deduct and withhold the tax under this chapter, and 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 the 
employer; but this subsection shall in no case relieve the employer from 
liability for any penalties or additions to the tax otherwise applicable 
in respect of such failure to deduct and withhold.

(e) Included and excluded wages

    If the remuneration paid by an employer to an employee for services 
performed during one-half or more of any payroll period of not more than 
31 consecutive days constitutes wages, all the remuneration paid by such 
employer to such employee for such period shall be deemed to be wages; 
but if the remuneration paid by an employer to an employee for services 
performed during more than one-half of any such payroll period does not 
constitute wages, then none of the remuneration paid by such employer to 
such employee for such period shall be deemed to be wages.

(f) Withholding exemptions

                           (1) In general

        An employee receiving wages shall on any day be entitled to the 
    following withholding exemptions:
            (A) an exemption for himself unless he is an individual 
        described in section 151(d)(2);
            (B) if the employee is married, any exemption to which his 
        spouse is entitled, or would be entitled if such spouse were an 
        employee receiving wages, under subparagraph (A) or (D), but 
        only if such spouse does not have in effect a withholding 
        exemption certificate claiming such exemption;
            (C) an exemption for each individual with respect to whom, 
        on the basis of facts existing at the beginning of such day, 
        there may reasonably be expected to be allowable an exemption 
        under section 151(c) for the taxable year under subtitle A in 
        respect of which amounts deducted and withheld under this 
        chapter in the calendar year in which such day falls are allowed 
        as a credit;
            (D) any allowance to which he is entitled under subsection 
        (m), but only if his spouse does not have in effect a 
        withholding exemption certificate claiming such allowance; and
            (E) a standard deduction allowance which shall be an amount 
        equal to one exemption (or more than one exemption if so 
        prescribed by the Secretary) unless (i) he is married (as 
        determined under section 7703) and his spouse is an employee 
        receiving wages subject to withholding or (ii) he has 
        withholding exemption certificates in effect with respect to 
        more than one employer.

    For purposes of this title, any standard deduction allowance under 
    subparagraph (E) shall be treated as if it were denominated a 
    withholding exemption.

                     (2) Exemption certificates

        (A) On commencement of employment

            On or before the date of the commencement of employment with 
        an employer, the employee shall furnish the employer with a 
        signed withholding exemption certificate relating to the number 
        of withholding exemptions which he claims, which shall in no 
        event exceed the number to which he is entitled.

        (B) Change of status

            If, on any day during the calendar year, the number of 
        withholding exemptions to which the employee is entitled is less 
        than the number of withholding exemptions claimed by the 
        employee on the withholding exemption certificate then in effect 
        with respect to him, the employee shall within 10 days 
        thereafter furnish the employer with a new withholding exemption 
        certificate relating to the number of withholding exemptions 
        which the employee then claims, which shall in no event exceed 
        the number to which he is entitled on such day. If, on any day 
        during the calendar year, the number of withholding exemptions 
        to which the employee is entitled is greater than the number of 
        withholding exemptions claimed, the employee may furnish the 
        employer with a new withholding exemption certificate relating 
        to the number of withholding exemptions which the employee then 
        claims, which shall in no event exceed the number to which he is 
        entitled on such day.

        (C) Change of status which affects next calendar year

            If on any day during the calendar year the number of 
        withholding exemptions to which the employee will be, or may 
        reasonably be expected to be, entitled at the beginning of his 
        next taxable year under subtitle A is different from the number 
        to which the employee is entitled on such day, the employee 
        shall, in such cases and at such times as the Secretary may by 
        regulations prescribe, furnish the employer with a withholding 
        exemption certificate relating to the number of withholding 
        exemptions which he claims with respect to such next taxable 
        year, which shall in no event exceed the number to which he will 
        be, or may reasonably be expected to be, so entitled.

                  (3) When certificate takes effect

        (A) First certificate furnished

            A withholding exemption certificate furnished the employer 
        in cases in which no previous such certificate is in effect 
        shall take effect as of the beginning of the first payroll 
        period ending, or the first payment of wages made without regard 
        to a payroll period, on or after the date on which such 
        certificate is so furnished.

        (B) Furnished to take place of existing certificate

            (i) In general

                Except as provided in clauses (ii) and (iii), a 
            withholding exemption certificate furnished to the employer 
            in cases in which a previous such certificate is in effect 
            shall take effect as of the beginning of the 1st payroll 
            period ending (or the 1st payment of wages made without 
            regard to a payroll period) on or after the 30th day after 
            the day on which such certificate is so furnished.
            (ii) Employer may elect earlier effective date

                At the election of the employer, a certificate described 
            in clause (i) may be made effective beginning with any 
            payment of wages made on or after the day on which the 
            certificate is so furnished and before the 30th day referred 
            to in clause (i).
            (iii) Change of status which affects next year

                Any certificate furnished pursuant to paragraph (2)(C) 
            shall not take effect, and may not be made effective, with 
            respect to any payment of wages made in the calendar year in 
            which the certificate is furnished.

        (4) Period during which certificate remains in effect

        A withholding exemption certificate which takes effect under 
    this subsection, or which on December 31, 1954, was in effect under 
    the corresponding subsection of prior law, shall continue in effect 
    with respect to the employer until another such certificate takes 
    effect under this subsection.

                (5) Form and contents of certificate

        Withholding exemption certificates shall be in such form and 
    contain such information as the Secretary may by regulations 
    prescribe.

             (6) Exemption of certain nonresident aliens

        Notwithstanding the provisions of paragraph (1), a nonresident 
    alien individual (other than an individual described in section 
    3401(a)(6)(A) or (B)) shall be entitled to only one withholding 
    exemption.

    (7) Exemption where certificate with another employer is in 
                                   effect

        If a withholding exemption certificate is in effect with respect 
    to one employer, an employee shall not be entitled under a 
    certificate in effect with any other employer to any withholding 
    exemption which he has claimed under such first certificate.

(g) Overlapping pay periods, and payment by agent or fiduciary

    If a payment of wages is made to an employee by an employer--
        (1) with respect to a payroll period or other period, any part 
    of which is included in a payroll period or other period with 
    respect to which wages are also paid to such employee by such 
    employer, or
        (2) without regard to any payroll period or other period, but on 
    or prior to the expiration of a payroll period or other period with 
    respect to which wages are also paid to such employee by such 
    employer, or
        (3) with respect to a period beginning in one and ending in 
    another calendar year, or
        (4) through an agent, fiduciary, or other person who also has 
    the control, receipt, custody, or disposal of, or pays, the wages 
    payable by another employer to such employee,

the manner of withholding and the amount to be deducted and withheld 
under this chapter shall be determined in accordance with regulations 
prescribed by the Secretary under which the withholding exemption 
allowed to the employee in any calendar year shall approximate the 
withholding exemption allowable with respect to an annual payroll 
period.

(h) Alternative methods of computing amount to be withheld

    The Secretary may, under regulations prescribed by him, authorize--

              (1) Withholding on basis of average wages

        An employer--
            (A) to estimate the wages which will be paid to any employee 
        in any quarter of the calendar year,
            (B) to determine the amount to be deducted and withheld upon 
        each payment of wages to such employee during such quarter as if 
        the appropriate average of the wages so estimated constituted 
        the actual wages paid, and
            (C) to deduct and withhold upon any payment of wages to such 
        employee during such quarter (and, in the case of tips referred 
        to in subsection (k), within 30 days thereafter) such amount as 
        may be necessary to adjust the amount actually deducted and 
        withheld upon the wages of such employee during such quarter to 
        the amount required to be deducted and withheld during such 
        quarter without regard to this subsection.

            (2) Withholding on basis of annualized wages

        An employer to determine the amount of tax to be deducted and 
    withheld upon a payment of wages to an employee for a payroll period 
    by--
            (A) multiplying the amount of an employee's wages for a 
        payroll period by the number of such payroll periods in the 
        calendar year,
            (B) determining the amount of tax which would be required to 
        be deducted and withheld upon the amount determined under 
        subparagraph (A) if such amount constituted the actual wages for 
        the calendar year and the payroll period of the employee were an 
        annual payroll period, and
            (C) dividing the amount of tax determined under subparagraph 
        (B) by the number of payroll periods (described in subparagraph 
        (A)) in the calendar year.

            (3) Withholding on basis of cumulative wages

        An employer, in the case of any employee who requests to have 
    the amount of tax to be withheld from his wages computed on the 
    basis of his cumulative wages, to--
            (A) add the amount of the wages to be paid to the employee 
        for the payroll period to the total amount of wages paid by the 
        employer to the employee during the calendar year,
            (B) divide the aggregate amount of wages computed under 
        subparagraph (A) by the number of payroll periods to which such 
        aggregate amount of wages relates,
            (C) compute the total amount of tax that would have been 
        required to be deducted and withheld under subsection (a) if the 
        average amount of wages (as computed under subparagraph (B)) had 
        been paid to the employee for the number of payroll periods to 
        which the aggregate amount of wages (computed under subparagraph 
        (A)) relates,
            (D) determine the excess, if any, of the amount of tax 
        computed under subparagraph (C) over the total amount of tax 
        deducted and withheld by the employer from wages paid to the 
        employee during the calendar year, and
            (E) deduct and withhold upon the payment of wages (referred 
        to in subparagraph (A)) to the employee an amount equal to the 
        excess (if any) computed under subparagraph (D).

                          (4) Other methods

        An employer to determine the amount of tax to be deducted and 
    withheld upon the wages paid to an employee by any other method 
    which will require the employer to deduct and withhold upon such 
    wages substantially the same amount as would be required to be 
    deducted and withheld by applying subsection (a) or (c), either with 
    respect to a payroll period or with respect to the entire taxable 
    year.

(i) Changes in withholding

                           (1) In general

        The Secretary may by regulations provide for increases in the 
    amount of withholding otherwise required under this section in cases 
    where the employee requests such changes.

                        (2) Treatment as tax

        Any increased withholding under paragraph (1) shall for all 
    purposes be considered tax required to be deducted and withheld 
    under this chapter.

(j) Noncash remuneration to retail commission salesman

    In the case of remuneration paid in any medium other than cash for 
services performed by an individual as a retail salesman for a person, 
where the service performed by such individual for such person is 
ordinarily performed for remuneration solely by way of cash commission 
an employer shall not be required to deduct or withhold any tax under 
this subchapter with respect to such remuneration, provided that such 
employer files with the Secretary such information with respect to such 
remuneration as the Secretary may by regulation prescribe.

(k) Tips

    In the case of tips which constitute wages, subsection (a) shall be 
applicable only to such tips as are included in a written statement 
furnished to the employer pursuant to section 6053(a), and only to the 
extent that the tax can be deducted and withheld by the employer, at or 
after the time such statement is so furnished and before the close of 
the calendar year in which such statement is furnished, from such wages 
of the employee (excluding tips, but including funds turned over by the 
employee to the employer for the purpose of such deduction and 
withholding) as are under the control of the employer; and an employer 
who is furnished by an employee a written statement of tips (received in 
a calendar month) pursuant to section 6053(a) to which paragraph (16)(B) 
of section 3401(a) is applicable may deduct and withhold the tax with 
respect to such tips from any wages of the employee (excluding tips) 
under his control, even though at the time such statement is furnished 
the total amount of the tips included in statements furnished to the 
employer as having been received by the employee in such calendar month 
in the course of his employment by such employer is less than $20. Such 
tax shall not at any time be deducted and withheld in an amount which 
exceeds the aggregate of such wages and funds (including funds turned 
over under section 3102(c)(2) or section 3202(c)(2)) minus any tax 
required by section 3102(a) or section 3202(a) to be collected from such 
wages and funds.

(l) Determination and disclosure of marital status

               (1) Determination of status by employer

        For purposes of applying the tables in subsections (a) and (c) 
    to a payment of wages, the employer shall treat the employee as a 
    single person unless there is in effect with respect to such payment 
    of wages a withholding exemption certificate furnished to the 
    employer by the employee after the date of the enactment of this 
    subsection indicating that the employee is married.

                (2) Disclosure of status by employee

        An employee shall be entitled to furnish the employer with a 
    withholding exemption certificate indicating he is married only if, 
    on the day of such furnishing, he is married (determined with the 
    application of the rules in paragraph (3)). An employee whose 
    marital status changes from married to single shall, at such time as 
    the Secretary may by regulations prescribe, furnish the employer 
    with a new withholding exemption certificate.

                 (3) Determination of marital status

        For purposes of paragraph (2), an employee shall on any day be 
    considered--
            (A) as not married, if (i) he is legally separated from his 
        spouse under a decree of divorce or separate maintenance, or 
        (ii) either he or his spouse is, or on any preceding day within 
        the calendar year was, a nonresident alien; or
            (B) as married, if (i) his spouse (other than a spouse 
        referred to in subparagraph (A)) died within the portion of his 
        taxable year which precedes such day, or (ii) his spouse died 
        during one of the two taxable years immediately preceding the 
        current taxable year and, on the basis of facts existing at the 
        beginning of such day, the employee reasonably expects, at the 
        close of his taxable year, to be a surviving spouse (as defined 
        in section 2(a)).

(m) Withholding allowances

    Under regulations prescribed by the Secretary, an employee shall be 
entitled to additional withholding allowances or additional reductions 
in withholding under this subsection. In determining the number of 
additional withholding allowances or the amount of additional reductions 
in withholding under this subsection, the employee may take into account 
(to the extent and in the manner provided by such regulations)--
        (1) estimated itemized deductions allowable under chapter 1 
    (other than the deductions referred to in section 151 and other than 
    the deductions required to be taken into account in determining 
    adjusted gross income under section 62(a) (other than paragraph (10) 
    thereof)),
        (2) estimated tax credits allowable under chapter 1, and
        (3) such additional deductions (including the additional 
    standard deduction under section 63(c)(3) for the aged and blind) 
    and other items as may be specified by the Secretary in regulations.

(n) Employees incurring no income tax liability

    Notwithstanding any other provision of this section, an employer 
shall not be required to deduct and withhold any tax under this chapter 
upon a payment of wages to an employee if there is in effect with 
respect to such payment a withholding exemption certificate (in such 
form and containing such other information as the Secretary may 
prescribe) furnished to the employer by the employee certifying that the 
employee--
        (1) incurred no liability for income tax imposed under subtitle 
    A for his preceding taxable year, and
        (2) anticipates that he will incur no liability for income tax 
    imposed under subtitle A for his current taxable year.

The Secretary shall by regulations provide for the coordination of the 
provisions of this subsection with the provisions of subsection (f).

(o) Extension of withholding to certain payments other than wages

                          (1) General rule

        For purposes of this chapter (and so much of subtitle F as 
    relates to this chapter)--
            (A) any supplemental unemployment compensation benefit paid 
        to an individual,
            (B) any payment of an annuity to an individual, if at the 
        time the payment is made a request that such annuity be subject 
        to withholding under this chapter is in effect, and
            (C) any payment to an individual of sick pay which does not 
        constitute wages (determined without regard to this subsection), 
        if at the time the payment is made a request that such sick pay 
        be subject to withholding under this chapter is in effect,

    shall be treated as if it were a payment of wages by an employer to 
    an employee for a payroll period.

                           (2) Definitions

        (A) Supplemental unemployment compensation benefits

            For purposes of paragraph (1), the term ``supplemental 
        unemployment compensation benefits'' means amounts which are 
        paid to an employee, pursuant to a plan to which the employer is 
        a party, because of an employee's involuntary separation from 
        employment (whether or not such separation is temporary), 
        resulting directly from a reduction in force, the discontinuance 
        of a plant or operation, or other similar conditions, but only 
        to the extent such benefits are includible in the employee's 
        gross income.

        (B) Annuity

            For purposes of this subsection, the term ``annuity'' means 
        any amount paid to an individual as a pension or annuity.

        (C) Sick pay

            For purposes of this subsection, the term ``sick pay'' means 
        any amount which--
                (i) is paid to an employee pursuant to a plan to which 
            the employer is a party, and
                (ii) constitutes remuneration or a payment in lieu of 
            remuneration for any period during which the employee is 
            temporarily absent from work on account of sickness or 
            personal injuries.

        (3) Amount withheld from annuity payments or sick pay

        If a payee makes a request that an annuity or any sick pay be 
    subject to withholding under this chapter, the amount to be deducted 
    and withheld under this chapter from any payment to which such 
    request applies shall be an amount (not less than a minimum amount 
    determined under regulations prescribed by the Secretary) specified 
    by the payee in such request. The amount deducted and withheld with 
    respect to a payment which is greater or less than a full payment 
    shall bear the same relation to the specified amount as such payment 
    bears to a full payment.

                     (4) Request for withholding

        A request that an annuity or any sick pay be subject to 
    withholding under this chapter--
            (A) shall be made by the payee in writing to the person 
        making the payments and shall contain the social security number 
        of the payee,
            (B) shall specify the amount to be deducted and withheld 
        from each full payment, and
            (C) shall take effect--
                (i) in the case of sick pay, with respect to payments 
            made more than 7 days after the date on which such request 
            is furnished to the payor, or
                (ii) in the case of an annuity, at such time (after the 
            date on which such request is furnished to the payor) as the 
            Secretary shall by regulations prescribe.

    Such a request may be changed or terminated by furnishing to the 
    person making the payments a written statement of change or 
    termination which shall take effect in the same manner as provided 
    in subparagraph (C). At the election of the payor, any such request 
    (or statement of change or revocation) may take effect earlier than 
    as provided in subparagraph (C).

       (5) Special rule for sick pay paid pursuant to certain 
                      collective-bargaining agreements

        In the case of any sick pay paid pursuant to a collective-
    bargaining agreement between employee representatives and one or 
    more employers which contains a provision specifying that this 
    paragraph is to apply to sick pay paid pursuant to such agreement 
    and contains a provision for determining the amount to be deducted 
    and withheld from each payment of such sick pay--
            (A) the requirement of paragraph (1)(C) that a request for 
        withholding be in effect shall not apply, and
            (B) except as provided in subsection (n), the amounts to be 
        deducted and withheld under this chapter shall be determined in 
        accordance with such agreement.

    The preceding sentence shall not apply with respect to sick pay paid 
    pursuant to any agreement to any individual unless the social 
    security number of such individual is furnished to the payor and the 
    payor is furnished with such information as is necessary to 
    determine whether the payment is pursuant to the agreement and to 
    determine the amount to be deducted and withheld.

          (6) Coordination with withholding on designated 
                      distributions under section 3405

        This subsection shall not apply to any amount which is a 
    designated distribution (within the meaning of section 3405(e)(1)).

(p) Voluntary withholding agreements

                    (1) Certain Federal payments

        (A) In general

            If, at the time a specified Federal payment is made to any 
        person, a request by such person is in effect that such payment 
        be subject to withholding under this chapter, then for purposes 
        of this chapter and so much of subtitle F as relates to this 
        chapter, such payment shall be treated as if it were a payment 
        of wages by an employer to an employee.

        (B) Amount withheld

            The amount to be deducted and withheld under this chapter 
        from any payment to which any request under subparagraph (A) 
        applies shall be an amount equal to the percentage of such 
        payment specified in such request. Such a request shall apply to 
        any payment only if the percentage specified is 7, 15, 28, or 31 
        percent or such other percentage as is permitted under 
        regulations prescribed by the Secretary.

        (C) Specified Federal payments

            For purposes of this paragraph, the term ``specified Federal 
        payment'' means--
                (i) any payment of a social security benefit (as defined 
            in section 86(d)),
                (ii) any payment referred to in the second sentence of 
            section 451(d) which is treated as insurance proceeds,
                (iii) any amount which is includible in gross income 
            under section 77(a), and
                (iv) any other payment made pursuant to Federal law 
            which is specified by the Secretary for purposes of this 
            paragraph.

        (D) Requests for withholding

            Rules similar to the rules that apply to annuities under 
        subsection (o)(4) shall apply to requests under this paragraph 
        and paragraph (2).

         (2) Voluntary withholding on unemployment benefits

        If, at the time a payment of unemployment compensation (as 
    defined in section 85(b)) is made to any person, a request by such 
    person is in effect that such payment be subject to withholding 
    under this chapter, then for purposes of this chapter and so much of 
    subtitle F as relates to this chapter, such payment shall be treated 
    as if it were a payment of wages by an employer to an employee. The 
    amount to be deducted and withheld under this chapter from any 
    payment to which any request under this paragraph applies shall be 
    an amount equal to 15 percent of such payment.

            (3) Authority for other voluntary withholding

        The Secretary is authorized by regulations to provide for 
    withholding--
            (A) from remuneration for services performed by an employee 
        for the employee's employer which (without regard to this 
        paragraph) does not constitute wages, and
            (B) from any other type of payment with respect to which the 
        Secretary finds that withholding would be appropriate under the 
        provisions of this chapter,

    if the employer and employee, or the person making and the person 
    receiving such other type of payment, agree to such withholding. 
    Such agreement shall be in such form and manner as the Secretary may 
    by regulations prescribe. For purposes of this chapter (and so much 
    of subtitle F as relates to this chapter), remuneration or other 
    payments with respect to which such agreement is made shall be 
    treated as if they were wages paid by an employer to an employee to 
    the extent that such remuneration is paid or other payments are made 
    during the period for which the agreement is in effect.

(q) Extension of withholding to certain gambling winnings

                          (1) General rule

        Every person, including the Government of the United States, a 
    State, or a political subdivision thereof, or any instrumentalities 
    of the foregoing, making any payment of winnings which are subject 
    to withholding shall deduct and withhold from such payment a tax in 
    an amount equal to 28 percent of such payment.

             (2) Exemption where tax otherwise withheld

        In the case of any payment of winnings which are subject to 
    withholding made to a nonresident alien individual or a foreign 
    corporation, the tax imposed under paragraph (1) shall not apply to 
    any such payment subject to tax under section 1441(a) (relating to 
    withholding on nonresident aliens) or tax under section 1442(a) 
    (relating to withholding on foreign corporations).

            (3) Winnings which are subject to withholding

        For purposes of this subsection, the term ``winnings which are 
    subject to withholding'' means proceeds from a wager determined in 
    accordance with the following:

        (A) In general

            Except as provided in subparagraphs (B) and (C), proceeds of 
        more than $5,000 from a wagering transaction, if the amount of 
        such proceeds is at least 300 times as large as the amount 
        wagered.

        (B) State-conducted lotteries

            Proceeds of more than $5,000 from a wager placed in a 
        lottery conducted by an agency of a State acting under authority 
        of State law, but only if such wager is placed with the State 
        agency conducting such lottery, or with its authorized employees 
        or agents.

        (C) Sweepstakes, wagering pools, certain parimutuel pools, jai 
                alai, and lotteries

            Proceeds of more than $5,000 from--
                (i) a wager placed in a sweepstakes, wagering pool, or 
            lottery (other than a wager described in subparagraph (B)), 
            or
                (ii) a wagering transaction in a parimutuel pool with 
            respect to horse races, dog races, or jai alai if the amount 
            of such proceeds is at least 300 times as large as the 
            amount wagered.

           (4) Rules for determining proceeds from a wager

        For purposes of this subsection--
            (A) proceeds from a wager shall be determined by reducing 
        the amount received by the amount of the wager, and
            (B) proceeds which are not money shall be taken into account 
        at their fair market value.

          (5) Exception for bingo, keno, and slot machines

        The tax imposed under paragraph (1) shall not apply to winnings 
    from a slot machine, keno, and bingo.

                     (6) Statement by recipient

        Every person who is to receive a payment of winnings which are 
    subject to withholding shall furnish the person making such payment 
    a statement, made under the penalties of perjury, containing the 
    name, address, and taxpayer identification number of the person 
    receiving the payment and of each person entitled to any portion of 
    such payment.

                (7) Coordination with other sections

        For purposes of sections 3403 and 3404 and for purposes of so 
    much of subtitle F (except section 7205) as relates to this chapter, 
    payments to any person of winnings which are subject to withholding 
    shall be treated as if they were wages paid by an employer to an 
    employee.

(r) Extension of withholding to certain taxable payments of Indian 
        casino profits

                           (1) In general

        Every person, including an Indian tribe, making a payment to a 
    member of an Indian tribe from the net revenues of any class II or 
    class III gaming activity conducted or licensed by such tribe shall 
    deduct and withhold from such payment a tax in an amount equal to 
    such payment's proportionate share of the annualized tax.

                            (2) Exception

        The tax imposed by paragraph (1) shall not apply to any payment 
    to the extent that the payment, when annualized, does not exceed an 
    amount equal to the sum of--
            (A) the basic standard deduction (as defined in section 
        63(c)) for an individual to whom section 63(c)(2)(C) applies, 
        and
            (B) the exemption amount (as defined in section 151(d)).

                         (3) Annualized tax

        For purposes of paragraph (1), the term ``annualized tax'' 
    means, with respect to any payment, the amount of tax which would be 
    imposed by section 1(c) (determined without regard to any rate of 
    tax in excess of 31 percent) on an amount of taxable income equal to 
    the excess of--
            (A) the annualized amount of such payment, over
            (B) the amount determined under paragraph (2).

               (4) Classes of gaming activities, etc.

        For purposes of this subsection, terms used in paragraph (1) 
    which are defined in section 4 of the Indian Gaming Regulatory Act 
    (25 U.S.C. 2701 et seq.), as in effect on the date of the enactment 
    of this subsection, shall have the respective meanings given such 
    terms by such section.

                          (5) Annualization

        Payments shall be placed on an annualized basis under 
    regulations prescribed by the Secretary.

                (6) Alternate withholding procedures

        At the election of an Indian tribe, the tax imposed by this 
    subsection on any payment made by such tribe shall be determined in 
    accordance with such tables or computational procedures as may be 
    specified in regulations prescribed by the Secretary (in lieu of in 
    accordance with paragraphs (2) and (3)).

                (7) Coordination with other sections

        For purposes of this chapter and so much of subtitle F as 
    relates to this chapter, payments to any person which are subject to 
    withholding under this subsection shall be treated as if they were 
    wages paid by an employer to an employee.

(s) Exemption from withholding for any vehicle fringe benefit

                (1) Employer election not to withhold

        The employer may elect not to deduct and withhold any tax under 
    this chapter with respect to any vehicle fringe benefit provided to 
    any employee if such employee is notified by the employer of such 
    election (at such time and in such manner as the Secretary shall by 
    regulations prescribe). The preceding sentence shall not apply to 
    any vehicle fringe benefit unless the amount of such benefit is 
    included by the employer on a statement timely furnished under 
    section 6051.

                    (2) Employer must furnish W-2

        Any vehicle fringe benefit shall be treated as wages from which 
    amounts are required to be deducted and withheld under this chapter 
    for purposes of section 6051.

                     (3) Vehicle fringe benefit

        For purposes of this subsection, the term ``vehicle fringe 
    benefit'' means any fringe benefit--
            (A) which constitutes wages (as defined in section 3401), 
        and
            (B) which consists of providing a highway motor vehicle for 
        the use of the employee.

(Aug. 16, 1954, ch. 736, 68A Stat. 457; Aug. 9, 1955, ch. 666, Sec. 2, 
69 Stat. 605; Pub. L. 87-256, Sec. 110(g)(2), Sept. 21, 1961, 75 Stat. 
537; Pub. L. 88-272, title III, Sec. 302(a), (b), Feb. 26, 1964, 78 
Stat. 140; Pub. L. 89-97, title III, Sec. 313(d)(3)-(5), July 30, 1965, 
79 Stat. 384; Pub. L. 89-212, Sec. 2(c), Sept. 29, 1965, 79 Stat. 859; 
Pub. L. 89-368, title I, Sec. 101(a)-(e)(3), Mar. 15, 1966, 80 Stat. 38-
61; Pub. L. 90-364, title I, Sec. 102(c), June 28, 1968, 82 Stat. 256; 
Pub. L. 91-36, Sec. 2(a), June 30, 1969, 83 Stat. 42; Pub. L. 91-53, 
Sec. 6(a), Aug. 7, 1969, 83 Stat. 96; Pub. L. 91-172, title VIII, 
Sec. 805(a)-(e), (f)(1), (g), Dec. 30, 1969, 83 Stat. 686, 704-708; Pub. 
L. 92-178, title II, Sec. 208(a), (b)(1), (c)-(h)(1), Dec. 10, 1971, 85 
Stat. 512-517; Pub. L. 94-12, title II, Secs. 202(b), 205, Mar. 29, 
1975, 89 Stat. 29, 32; Pub. L. 94-164, Secs. 2(b)(2), 5(a)(1), Dec. 23, 
1975, 89 Stat. 971, 975; Pub. L. 94-331, Sec. 3(a)(1), June 30, 1976, 90 
Stat. 782; Pub. L. 94-396, Sec. 2(a)(1), Sept. 3, 1976, 90 Stat. 1201; 
Pub. L. 94-414, Sec. 3(a)(1), Sept. 17, 1976, 90 Stat. 1273; Pub. L. 94-
455, title IV, Sec. 401(d), title V, Secs. 502(b), 504(c)(3), title XII, 
Sec. 1207(d), title XIX, Secs. 1903(a)(17), 1906(b)(13)(A), Oct. 4, 
1976, 90 Stat. 1557, 1559, 1566, 1705, 1810, 1834; Pub. L. 95-30, title 
I, Sec. 105, title IV, Sec. 405(a), May 23, 1977, 91 Stat. 140, 156; 
Pub. L. 95-600, title I, Secs. 101(e), 102(c), title VI, Sec. 601(b)(2), 
Nov. 6, 1978, 92 Stat. 2770, 2771, 2896; Pub. L. 96-601, Sec. 4(a)-(d), 
Dec. 24, 1980, 94 Stat. 3496, 3497; Pub. L. 97-34, title I, Sec. 101(e), 
Aug. 13, 1981, 95 Stat. 184; Pub. L. 97-248, title III, Secs. 317(a), 
334(d), Sept. 3, 1982, 96 Stat. 607, 627; Pub. L. 98-67, title I, 
Sec. 104(d)(3), Aug. 5, 1983, 97 Stat. 380; Pub. L. 99-44, Sec. 3, May 
24, 1985, 99 Stat. 77; Pub. L. 99-514, title I, Sec. 104(b)(15), title 
XIII, Secs. 1301(j)(8), 1303(b)(4), title XV, Sec. 1581(b), Oct. 22, 
1986, 100 Stat. 2106, 2658, 2766; Pub. L. 100-203, title X, 
Sec. 10302(a), Dec. 22, 1987, 101 Stat. 1330-429; Pub. L. 100-647, title 
I, Sec. 1003(a)(2), Nov. 10, 1988, 102 Stat. 3382; Pub. L. 101-508, 
title XI, Sec. 11801(a)(41), Nov. 5, 1990, 104 Stat. 1388-521; Pub. L. 
102-318, title V, Sec. 522(b)(2)(D), July 3, 1992, 106 Stat. 314; Pub. 
L. 102-486, title XIX, Secs. 1934(a), 1942(a), Oct. 24, 1992, 106 Stat. 
3031, 3036; Pub. L. 103-465, title VII, Secs. 701(a), 702(a), Dec. 8, 
1994, 108 Stat. 4995, 4996.)

                       References in Text

    The date of the enactment of this subsection, referred to in subsec. 
(l)(1), is the date of enactment of Pub. L. 89-368, which was approved 
Mar. 15, 1966.
    Section 4 of the Indian Gaming Regulatory Act, referred to in 
subsec. (r)(4), is classified to section 2703 of Title 25, Indians.
    The date of the enactment of this subsection, referred to in subsec. 
(r)(4), is the date of enactment of Pub. L. 103-465, which was approved 
Dec. 8, 1994.


                               Amendments

    1994--Subsec. (p). Pub. L. 103-465, Sec. 702(a), reenacted heading 
without change and amended text of subsec. (p) generally. Prior to 
amendment, text read as follows: ``The Secretary is authorized by 
regulations to provide for withholding--
        ``(1) from remuneration for services performed by an employee 
    for his employer which (without regard to this subsection) does not 
    constitute wages, and
        ``(2) from any other type of payment with respect to which the 
    Secretary finds that withholding would be appropriate under the 
    provisions of this chapter,
if the employer and the employee, or in the case of any other type of 
payment the person making and the person receiving the payment, agree to 
such withholding. Such agreement shall be made in such form and manner 
as the Secretary may by regulations provide. For purposes of this 
chapter (and so much of subtitle F as relates to this chapter) 
remuneration or other payments with respect to which such agreement is 
made shall be treated as if they were wages paid by an employer to an 
employee to the extent that such remuneration is paid or other payments 
are made during the period for which the agreement is in effect.''
    Subsec. (r). Pub. L. 103-465, Sec. 701(a), added subsec. (r).
    1992--Subsec. (o)(6). Pub. L. 102-318 substituted ``3405(e)(1)'' for 
``3405(d)(1)''.
    Subsec. (q)(1). Pub. L. 102-486, Sec. 1934(a), substituted ``28 
percent'' for ``20 percent''.
    Subsec. (q)(3)(A), (C). Pub. L. 102-486, Sec. 1942(a), substituted 
``$5,000'' for ``$1,000''.
    1990--Subsec. (a)(3). Pub. L. 101-508 struck out par. (3) which read 
as follows: ``Notwithstanding the provisions of this subsection, the 
Secretary shall modify the tables and procedures under paragraph (1) to 
reflect--
        ``(A) the amendments made by section 101(b) of the Economic 
    Recovery Tax Act of 1981, and such modification shall take effect on 
    October 1, 1981, as if such amendments made a 5-percent reduction 
    effective on such date, and
        ``(B) the amendments made by section 101(a) of such Act, and 
    such modifications shall take effect--
            ``(i) on July 1, 1982, as if the reductions in the rate of 
        tax under section 1 (as amended by such section) were 
        attributable to a 10-percent reduction effective on such date, 
        and
            ``(ii) on July 1, 1983, as if such reductions were 
        attributable to a 10-percent reduction effective on such date.''
    1988--Subsec. (m)(1). Pub. L. 100-647 substituted ``section 62(a) 
(other than paragraph (10) thereof))'' for ``section 62) (other than 
paragraph (13) thereof)''.
    1987--Subsec. (f)(3)(B). Pub. L. 100-203 amended subpar. (B) 
generally. Prior to amendment, subpar. (B) read as follows: ``A 
withholding exemption certificate furnished the employer in cases in 
which a previous such certificate is in effect shall take effect with 
respect to the first payment of wages made on or after the first status 
determination date which occurs at least 30 days from the date on which 
such certificate is so furnished, except that at the election of the 
employer such certificate may be made effective with respect to any 
payment of wages made on or after the date on which such certificate is 
so furnished; but a certificate furnished pursuant to paragraph (2)(C) 
shall not take effect, and may not be made effective, with respect to 
any payment of wages made in the calendar year in which the certificate 
is furnished. For purposes of this subparagraph the term `status 
determination date' means January 1, May 1, July 1, and October 1 of 
each year.''
    1986--Subsec. (f)(1). Pub. L. 99-514, Sec. 104(b)(15)(F), 
substituted ``standard deduction'' for ``zero bracket'' and 
``subparagraph (E)'' for ``subparagraph (G)'' in last sentence.
    Subsec. (f)(1)(A). Pub. L. 99-514, Sec. 104(b)(15)(B), inserted 
``unless he is an individual described in section 151(d)(2)'' after 
``himself''.
    Subsec. (f)(1)(B). Pub. L. 99-514, Sec. 104(b)(15)(A), redesignated 
subpar. (D) as (B) and struck out former subpar. (B) which read as 
follows: ``one additional exemption for himself if, on the basis of 
facts existing at the beginning of such day, there may reasonably be 
expected to be allowable an exemption under section 151(c)(1) (relating 
to old age) for the taxable year under subtitle A in respect of which 
amounts deducted and withheld under this chapter in the calendar year in 
which such day falls are allowed as a credit;''.
    Pub. L. 99-514, Sec. 104(b)(15)(C), which directed that 
``subparagraph (A) or (D)'' be substituted for ``subparagraph (A), (B), 
(C), or (F)'' was executed by making the substitution for ``subparagraph 
(A), (B), or (C)'', as the probable intent of Congress.
    Subsec. (f)(1)(C). Pub. L. 99-514, Sec. 104(b)(15)(A), (D), 
redesignated subpar. (E) as (C), substituted ``section 151(c)'' for 
``section 151(e)'', and struck out former subpar. (C) which read as 
follows: ``one additional exemption for himself if, on the basis of 
facts existing at the beginning of such day, there may reasonably be 
expected to be allowable an exemption under section 151(d)(1) (relating 
to the blind) for the taxable year under subtitle A in respect of which 
amounts deducted and withheld under this chapter in the calendar year in 
which such day falls are allowed as a credit;''.
    Subsec. (f)(1)(D). Pub. L. 99-514, Sec. 104(b)(15)(A), redesignated 
subpar. (F) as (D). Former subpar. (D) redesignated (B).
    Subsec. (f)(1)(E). Pub. L. 99-514, Sec. 104(b)(15)(A), (E), 
redesignated subpar. (G) as (E) and substituted ``standard deduction'' 
for ``zero bracket''. Former subpar. (E) redesignated (C).
    Pub. L. 99-514, Sec. 1301(j)(8), substituted ``section 7703'' for 
``section 143''.
    Subsec. (f)(1)(F), (G). Pub. L. 99-514, Sec. 104(b)(15)(A), 
redesignated subpars. (F) and (G) as (D) and (E), respectively.
    Subsec. (i)(1). Pub. L. 99-514, Sec. 1581(b), struck out ``or 
decreases'' after ``increases''.
    Subsec. (m)(3). Pub. L. 99-514, Sec. 104(b)(15)(G), inserted 
``(including the additional standard deduction under section 63(c)(3) 
for the aged and blind)''.
    Subsec. (r). Pub. L. 99-514, Sec. 1303(b)(4), struck out subsec. (r) 
which provided for extension of withholding to GSOC distributions.
    1985--Subsec. (s). Pub. L. 99-44 added subsec. (s).
    1983--Subsec. (s). Pub. L. 98-67 struck out subsec. (s) which 
related to extension of withholding to certain payments where 
identifying number was not furnished or was inaccurate. See section 3406 
of this title.
    1982--Subsec. (o)(6). Pub. L. 97-248, Sec. 334(d), added par. (6).
    Subsec. (s). Pub. L. 97-248, Sec. 317(a), added subsec. (s).
    1981--Subsec. (a). Pub. L. 97-34, Sec. 101(e)(1), revised subsec. 
(a) generally to provide for a 5-percent reduction in income tax 
withholding rates on Oct. 1, 1981, a further 10-percent reduction on 
July 1, 1982, and a final 10-percent reduction on July 1, 1983.
    Subsec. (b)(1). Pub. L. 97-34, Sec. 101(e)(2)(A), redesignated par. 
(2) as (1). Former par. (1), which set out a table for determining 
amount of one withholding exemption for each of the various payroll 
periods, was struck out.
    Subsec. (b)(2). Pub. L. 97-34, Sec. 101(e)(2)(A), redesignated par. 
(3) as (2). Former par. (2) redesignated (1).
    Subsec. (b)(3). Pub. L. 97-34, Sec. 101(e)(2)(A), (B), redesignated 
par. (4) as (3) and substituted provisions relating to an employer's 
computation of the tax to be deducted and withheld as if the aggregate 
of the wages paid to the employee during the calendar week were paid for 
a weekly payroll period, for provisions relating to an employer's 
computation of the tax to be deducted and withheld using the excess of 
the aggregate of the wages paid to the employee during the calendar week 
over the withholding exemption allowed by this subsection for a weekly 
payroll period. Former par. (3) redesignated (2).
    Subsec. (b)(4), (5). Pub. L. 97-34, Sec. 101(e)(2)(A), redesignated 
par. (5) as (4). Former par. (4) redesignated (3).
    Subsec. (f)(1)(G). Pub. L. 97-34, Sec. 101(e)(3), inserted ``(or 
more than one exemption if so prescribed by the Secretary)'' after ``an 
amount equal to one exemption''.
    Subsec. (i). Pub. L. 97-34, Sec. 101(e)(4), substituted provisions 
authorizing the Secretary by regulations to provide for increases or 
decreases in the amount of withholding otherwise required under this 
section in cases where the employee requests the changes, for provisions 
under which the Secretary was authorized to provide withholding in 
addition to that otherwise required under this section in cases in which 
the employer and the employee agreed to such additional withholding.
    Subsec. (m). Pub. L. 97-34, Sec. 101(e)(5), revised provisions 
respecting additional withholding allowances for anticipated excess 
itemized deductions and tax credits claimed in accordance with Treasury 
regulations and Treasury statutory authority to provide additional 
withholding allowances for any additional items specified in Treasury 
regulations.
    1980--Subsec. (o)(1)(C). Pub. L. 96-601, Sec. 4(a), added subpar. 
(C).
    Subsec. (o)(2)(B). Pub. L. 96-601, Sec. 4(d), struck out ``, but 
only to the extent that the amount is includible in the gross income of 
such individual'' after ``pension or annuity''.
    Subsec. (o)(2)(C). Pub. L. 96-601, Sec. 4(c), added subpar. (C).
    Subsec. (o)(3). Pub. L. 96-601, Sec. 4(b), substituted provision 
authorizing amount to be withheld from annuity payments or sick pay for 
provision relating to request for withholding. See subsec. (o)(4) of 
this section.
    Subsec. (o)(4), (5). Pub. L. 96-601, Sec. 4(b), added pars. (4) and 
(5).
    1978--Subsec. (a). Pub. L. 95-600, Sec. 101(e)(1), substituted 
``With respect to wages paid after December 31, 1978, the tables so 
prescribed shall be the same as the tables prescribed under this 
subsection which were in effect on January 1, 1975, except that such 
tables shall be modified to the extent necessary to reflect the 
amendments made by sections 101 and 102 of the Tax Reduction and 
Simplification Act of 1977 and the amendments made by section 101 of the 
Revenue Act of 1978.'' for ``With respect to wages paid after May 31, 
1977, and before January 1, 1979, the tables so prescribed shall be the 
same as the tables prescribed under this subsection which were in effect 
on January 1, 1976; except that such tables shall be modified to the 
extent necessary so that, had they been in effect for all of 1977, they 
would reflect the full year effect of the amendments made by sections 
101 and 102 of the Tax Reduction and Simplification Act of 1977. With 
respect to wages paid after December 31, 1978, the tables so prescribed 
shall be the same as the tables prescribed under this subsection which 
were in effect on January 1, 1975, except that such tables shall be 
modified to the extent necessary to reflect the amendments made by 
sections 101 and 102 of the Tax Reduction and Simplification Act of 
1977.''.
    Subsec. (b)(1). Pub. L. 95-600, Sec. 102(c)(1), increased the 
amounts set out in the table for one withholding exemption for each of 
the payroll period categories from $14.40, $28.80, $31.30, $62.50, 
$187.50, $375.00, $750.00 and $2.10 to $19.23, $38.46, $41.66, $83.33, 
$250.00, $500.00, $1,000.00 and $2.74, respectively.
    Subsec. (m)(1). Pub. L. 95-600, Secs. 101(e)(2), 102(c)(2), 
substituted ``$1,000'' for ``$750'', ``$3,400'' for ``$3,200'' and 
``$2,300'' for ``$2,200''.
    Subsec. (r). Pub. L. 95-600, Sec. 601(b)(2), added subsec. (r).
    1977--Subsec. (a). Pub. L. 95-30, Sec. 105(a), substituted ``With 
respect to wages paid after May 31, 1977, and before January 1, 1979, 
the tables so prescribed shall be the same as the tables prescribed 
under this subsection which were in effect on January 1, 1976; except 
that such tables shall be modified to the extent necessary so that, had 
they been in effect for all of 1977, they would reflect the full year 
effect of the amendments made by sections 101 and 102 of the Tax 
Reduction and Simplification Act of 1977. With respect to wages paid 
after December 31, 1978, the tables so prescribed shall be the same as 
the tables prescribed under this subsection which were in effect on 
January 1, 1975, except that such tables shall be modified to the extent 
necessary to reflect the amendments made by sections 101 and 102 of the 
Tax Reduction and Simplification Act of 1977'' for ``With respect to 
wages paid prior to January 1, 1978, the tables so prescribed shall be 
the same as the tables prescribed under this section which were in 
effect on January 1, 1976. With respect to wages paid after December 31, 
1977, the Secretary shall prescribe new tables which shall be the same 
as the tables prescribed under this subsection which were in effect on 
January 1, 1975, except that such tables shall be modified to the extent 
necessary to reflect the amendments made to subsections (b) and (c) of 
section 141 by the Tax Reform Act of 1976''.
    Subsec. (f)(1). Pub. L. 95-30, Sec. 105(b)(1), substituted ``zero 
bracket'' for ``standard deduction'' in subpar. (G) and in provisions 
following subpar. (G).
    Subsec. (m)(1)(B). Pub. L. 95-30, Sec. 105(b)(2), substituted ``an 
amount equal to $3,200 ($2,200'' for ``an amount equal to the lesser of 
(i) 16 percent of his estimated wages, or (ii) $2,800 ($2,400''.
    Subsec. (m)(2)(A). Pub. L. 95-30, Sec. 105(b)(3)(A), (B), 
substituted ``section 151'' for ``sections 141 and 151'' and ``(or the 
zero bracket amount (within the meaning of section 63(d)))'' for ``(or 
the amount of the standard deduction)''.
    Subsec. (m)(2)(C). Pub. L. 95-30, Sec. 105(b)(3)(C), substituted 
``(or the zero bracket amount)'' for ``(or the standard deduction)''.
    Subsec. (q)(3)(C). Pub. L. 95-30, Sec. 405(a), inserted reference to 
certain parimutuel pools and jai alai in heading and, in text, 
designated existing provisions as cl. (i) and added cl. (ii).
    1976--Subsec. (a). Pub. L. 94-455, Secs. 401(d)(1), 1906 (b)(13)(A), 
struck out ``or his delegate'' after ``Secretary'', inserted ``With 
respect to wages paid prior to January 1, 1978'' after ``by the 
Secretary'', as amended, and substituted ``prescribed under this section 
which were'' for ``contained in this subsection as'' after ``same as the 
tables'', ``1976'' for ``1975'' after ``January 1'', and ``With respect 
to wages paid after December 31, 1977, the Secretary shall prescribe new 
tables which shall be the same as the tables prescribed under this 
subsection which were in effect on January 1, 1975, except that such 
tables shall be modified to the extent necessary to reflect the 
amendments made to subsections (b) and (c) of section 141 by the Tax 
Reform Act of 1976'' for ``except that the amounts set forth as amounts 
of income tax to be withheld with respect to wages paid after April 30, 
1975, and before January 1, 1976, shall reflect the full calendar year 
effect for 1975 of the amendments made by sections 201, 202, 203, and 
204 of the Tax Reduction Act of 1975'' after ``effect on January 1, 
1976'', as amended.
    Pub. L. 94-414 substituted ``October 1, 1976'' for ``September 15, 
1976''.
    Pub. L. 94-396 substituted ``September 15, 1976'' for ``September 1, 
1976''.
    Pub. L. 94-331 substituted ``September 1, 1976'' for ``July 1, 
1976''.
    Subsec. (c)(4). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.
    Subsec. (c)(6). Pub. L. 94-455, Secs. 401(d)(2), 1906(b)(13)(A), 
substituted ``the table for an annual payroll period prescribed pursuant 
to subsection (a)'' for ``table 7 contained in subsection (a)'' after 
``basis of the'', as subsec. (c)(6) was in effect on the day before the 
date of enactment of the Tax Reduction Act of 1975, Pub. L. 94-12, which 
was approved on Mar. 29, 1975, and struck out ``or his delegate'' after 
``Secretary''.
    Subsecs. (f), (h), (i), (j). Pub. L. 94-455, Sec. 1906(b)(13)(A), 
struck out ``or his delegate'' after ``Secretary''.
    Subsec. (l). Pub. L. 94-455, Sec. 1903(a)(17), substituted ``section 
2(a)'' for ``section 2(b)'' after ``as defined in''.
    Subsec. (m)(1)(B). Pub. L. 94-455, Sec. 401(d)(3), reenacted subpar. 
(B) without change.
    Subsec. (m)(2)(A). Pub. L. 94-455, Sec. 502(b), inserted ``(other 
than paragraph (13) thereof)'' after ``under section 62''.
    Subsec. (m)(2)(D), (3)(B). Pub. L. 94-455, Sec. 1906(b)(13)(A), 
struck out ``or his delegate'' after ``Secretary''.
    Subsec. (m)(4). Pub. L. 94-455, Sec. 504(c)(3), added subpar. (C). 
Sec. 1906(b)(13)(A) struck out ``or his delegate'' after ``Secretary''.
    Subsecs. (n), (p). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary'' wherever appearing.
    Subsec. (q). Pub. L. 94-455, Sec. 1207(d), added subsec. (q).
    1975--Subsec. (a). Pub. L. 94-164, Sec. 5(a)(1), inserted provision 
that the tables prescribed with respect to wages paid after Dec. 31, 
1975, and before July 1, 1976, shall be the same as the tables 
prescribed under this subsection which were in effect on Dec. 10, 1975.
    Pub. L. 94-12, Sec. 205(a), substituted provisions directing the 
Secretary to prescribe new withholding tables setting changed 
withholding rates for wages paid during the period May 1, 1975, to Dec. 
31, 1975, so as to reflect the full calendar year effect for 1975 of the 
amendments to the minimum standard deduction, the percentage standard 
deduction, the earned income credit, and the additional tax credit by 
sections 201, 202, 203, and 204 of the Tax Reduction Act of 1975, Pub. 
L. 94-12, for provisions setting out 8 tables to be followed by 
employers in withholding taxes on wages paid.
    Subsec. (c)(6). Pub. L. 94-12, Sec. 205(b), substituted ``the table 
for an annual payroll period prescribed pursuant to subsection (a)'' for 
``table 7 contained in subsection (a)''. See 1976 Amendment note set out 
above.
    Subsec. (m)(1)(B). Pub. L. 94-164, Sec. 2(b)(2), substituted 
``$2,800'' and ``$2,400'' for ``$2,600'' and ``$2,300'' respectively in 
cl. (ii).
    Pub. L. 94-12, Sec. 202(b), substituted ``the lesser of (i) 16 
percent of his estimated wages, or (ii) $2,600 ($2,300 in the case of an 
individual who is not married (within the meaning of section 143) and 
who is not a surviving spouse (as defined in section 2(a)))'' for ``the 
lesser of (i) $2,000 or (ii) 15 percent of his estimated wages''.
    1971--Subsec. (a). Pub. L. 92-178, Sec. 208(a), substituted new sets 
of tables 1 to 8 applicable (under Sec. 208(i)(1)) with respect to wages 
paid after Jan. 15, 1972, for the tables applicable in the case of wages 
paid as provided in former: par. (1) after Dec. 31, 1969, and before 
July 1, 1970; par. (2) after June 30, 1970, and before Jan. 1, 1971; 
par. (3) after Dec. 31, 1970, and before Jan. 1, 1972; par. (4) after 
Dec. 31, 1971, and before Jan. 1, 1973; and par. (5) after Dec. 31, 
1972. Pub. L. 92-178, Sec. 208(h)(1), made provisions of par. (3) 
applicable (under section 208(i)(2)) with respect to wages paid after 
Dec. 31, 1971, and before Jan. 16, 1972.
    Subsec. (b)(1). Pub. L. 92-178, Sec. 208(b)(1), revised withholding 
rates upwards, substituting 14.40; 28.80; 31.30; 62.50; 187.50; 375.00; 
750.00; and 2.10 for 12.50; 25.00 27.10; 54.20; 162.50; 325.00; 650.00; 
and 1.80, respectively, to be effective with respect to wages paid after 
Jan. 15, 1972. Pub. L. 92-178, Sec. 208(h)(2), in amending Pub. L. 91-
172, Sec. 805(b)(1), extended application of such former withholding 
rates to wages paid after June 30, 1970, and before Jan. 16, 1972, 
previously applicable to wages paid before Jan. 1, 1972.
    Subsec. (c)(6). Pub. L. 92-178, Sec. 208(g), substituted ``table 7 
contained in subsection (a)'' for ``table 7 contained in paragraph (1), 
(2), (3), (4), or (5) (whichever is applicable) of subsection (a)''.
    Subsec. (f)(1)(G). Pub. L. 92-178, Sec. 208(c), added subpar. (G).
    Subsec. (f)(7). Pub. L. 92-178, Sec. 208(d), added par. (7).
    Subsec. (m)(1)(B). Pub. L. 92-178, Sec. 208(e), substituted ``an 
amount equal to the lesser of (i) $2,000 or (ii) 15 percent of his 
estimated wages'' for ``an amount equal to 15 percent of his estimated 
wages''.
    Subsec. (m)(2)(A). Pub. L. 92-178, Sec. 208(f)(1), inserted ``or (if 
such a return has not been filed for such preceding taxable year at the 
time the withholding exemption certificate is furnished the employer) 
the second taxable year preceding the estimation year'' after ``for the 
taxable year preceding the estimation year''.
    Subsec. (m)(2)(D). Pub. L. 92-178, Sec. 208(f)(2), substituted as 
definition of ``estimation year'' the calendar year in which the wages 
are paid for prior provision defining term as meaning ``(i) with respect 
to payments of wages after April 30 and on or before December 31 of any 
calendar year, such calendar year, and (ii) with respect to payments of 
wages on or after January 1 and before May 1 of any calendar year, the 
preceding calendar year (except that with respect to an exemption 
certificate furnished by an employee after he has filed his return for 
the preceding calendar year, such term means the current calendar 
year).''
    Subsec. (m)(3)(B) to (E). Pub. L. 92-178, Sec. 208(f)(3), struck out 
subpars. (B) and (C) providing that only one certificate be in effect 
and for termination of effectiveness of certificate and redesignated 
subpars. (D) and (E) as (B) and (C), respectively.
    1969--Subsec. (a)(1). Pub. L. 91-172, Sec. 805(a), (b)(2), 
substituted new sets of tables 1 to 8 for application to wages paid 
after Dec. 31, 1969, and before July 1, 1970, and after June 30, 1970, 
and before January 1, 1972, for the tables applicable to wages paid 
before July 13, 1968, and after Dec. 31, 1969.
    Pub. L. 91-53, Sec. 6(a)(1), substituted ``December 31, 1969'' for 
``July 31, 1969''.
    Pub. L. 91-36, Sec. 2(a)(1), substituted ``July 31, 1969'' for 
``June 30, 1969''.
    Subsec. (a)(2). Pub. L. 91-172, Sec. 805(a), substituted a set of 
tables 1 to 8 for application to wages paid after June 30, 1970, and 
before Jan. 1, 1971, for the tables applicable to wages paid after June 
30, 1970, and before Jan. 1, 1970.
    Pub. L. 91-53, Sec. 6(a)(2), substituted ``January 1, 1970'' for 
``August 1, 1969''.
    Pub. L. 91-36, Sec. 2(a)(2), substituted ``August 1, 1969'' for 
``July 1, 1969''.
    Subsec. (a)(3) to (5). Pub. L. 91-172, Sec. 805(a), added sets of 
tables applicable, respectively, to wages paid after Dec. 31, 1970, and 
before Jan. 1, 1972, after Dec. 31, 1971, and before Jan. 1, 1973, and 
after Dec. 31, 1972.
    Subsec. (b)(1). Pub. L. 91-172, Sec. 805(b)(1)-(4), revised 
withholding rates effective with respect to wages paid after Dec. 31, 
1969, and before July 1, 1970, for the period after June 30, 1970, and 
before Jan. 1, 1972, during 1972, and after 1972.
    Subsec. (c)(1). Pub. L. 91-172, Sec. 805(c)(1), substituted 
provisions authorizing employer to deduct and withhold tax determinable 
according to tables prescribed by the Secretary or his delegate for 
provisions under which the employer was authorized to deduct and 
withhold tax only according to tables set out.
    Subsec. (c)(6). Pub. L. 91-172, Sec. 805(c)(2), substituted 
provisions for determination of amount deductible according to tables 
prescribed by the Secretary or his delegate and for computation of wages 
and amounts of income tax after Dec. 31, 1969, for provisions for 
determination of such wages and amounts of income tax after July 13, 
1968, and before Jan. 1, 1970.
    Pub. L. 91-53, Sec. 6(a)(3), substituted ``January 1, 1970'' for 
``August 1, 1969''.
    Pub. L. 91-36, Sec. 2(a)(3), substituted ``August 1, 1969'' for 
``July 1, 1969''.
    Subsec. (h). Pub. L. 91-172, Sec. 805(d), redesignated existing 
pars. (1) to (3) as subpars. (A) to (C) of par. (1), and added pars. (2) 
to (4).
    Subsec. (m)(1). Pub. L. 91-172, Sec. 805(e)(2), substituted $750 for 
$700 in the material preceding subpar. (A) and in subpar. (B) 
substituted 15 per cent for 10 per cent of the first $7,500 and 17 per 
cent of remainder of the estimated wages.
    Subsec. (m)(2)(A). Pub. L. 91-172, Sec. 805(e)(2), inserted amount 
of standard deduction as an alternative limit in cl. (i), and 
substituted the determinable additional deductions for provisions 
referring to an employee who did not show such deductions on his return.
    Subsec. (m)(2)(B). Pub. L. 91-172, Sec. 805(e)(2), struck out limit 
on aggregate amount.
    Subsec. (m)(2)(C), (D). Pub. L. 91-172, Sec. 805(e)(1), (2), added 
subpar. (C). Former subpar. (C) redesignated (D)
    Subsec. (n). Pub. L. 91-172, Sec. 805(f)(1), added subsec. (n).
    Subsecs. (o), (p). Pub. L. 91-172, Sec. 805(g), added subsecs. (o) 
and (p).
    1968--Subsec. (a). Pub. L. 90-364, Sec. 102(c)(1), designated 
existing Tables 1 to 8 as constituting par. (1), inserted provisions 
preceding existing Table 1-8 so as to limit their application to the 
case of wages paid on or before the 15th day after the date of the 
enactment of the Revenue and Expenditure Control Act of 1968 or after 
June 30, 1969, and added par. (2).
    Subsec. (c)(6). Pub. L. 90-364, Sec. 102(c)(2), added par. (6).
    1966--Subsec. (a). Pub. L. 89-368, Sec. 101(a), struck out reference 
to subsections (j) and (k) and substituted provisions establishing 
separate tables for single persons and for married persons in each of 
eight payroll period categories each containing six graduated 
withholding rates ranging from 14 to 30 percent for provisions placing 
the rate at a fixed 14 percent.
    Subsec. (b)(1). Pub. L. 89-368, Sec. 101(b), increased amounts set 
out for one withholding exemption for each of the payroll period 
categories from ``$13.00'', $26.00'', ``$28.00'', ``$56.00'', 
``$167.00'', ``$333.00'', ``$667.00'', and ``$1.80'' to ``$13.50'', 
``$26.90'', ``$29.20'', ``$58.30'', ``$175.00'', ``$350.00'', 
``$700.00'', and ``$1.90'' respectively.
    Subsec. (c)(1). Pub. L. 89-368, Sec. 101(c), replaced existing 
tables with separate tables for employees who are married and for 
employees who are not married covering weekly, biweekly, semimonthly, 
monthly, and daily or miscellaneous pay periods and reflecting increased 
and graduated withholding rates.
    Subsec. (f)(1)(F), (3)(B). Pub. L. 89-368, Sec. 101(e)(1), (3), 
added par. (1)(F) and, in par. (3)(B), changed definition of ``status 
determination date'' from January 1 and July 1 of each year to January 
1, May 1, July 1, and October 1 of each year.
    Subsec. (l). Pub. L. 89-368, Sec. 101(d), added subsec. (l).
    Subsec. (m). Pub. L. 89-368, Sec. 101(e)(2), added subsec. (m).
    1965--Subsec. (a). Pub. L. 89-97, Sec. 313(d)(3), substituted 
``subsections (j) and (k)'' for ``subsection (j)''.
    Subsec. (h)(3). Pub. L. 89-97, Sec. 313(d)(4), inserted ``(and, in 
the case of tips referred to in subsection (k), within 30 days 
thereafter)'' after ``quarter'' first place it appears.
    Subsec. (k). Pub. L. 89-212 inserted ``or section 3202 (c)(2)'' and 
``or section 3202(a)''.
    Pub. L. 89-97, Sec. 313(d)(5), added subsec. (k).
    1964--Subsec. (a). Pub. L. 88-272, Sec. 302(a), reduced tax from 18% 
to 14%.
    Subsec. (c)(1). Pub. L. 88-272, Sec. 302(b), substituted new tables 
reflecting lowered withholding rates.
    1961--Subsec. (f)(6). Pub. L. 87-256 added par. (6).
    1955--Subsec. (a). Act Aug. 9, 1955, Sec. 2(a), inserted ``(except 
as provided in subsection (j))'' after ``upon such wages''.
    Subsec. (j). Act Aug. 9, 1955, Sec. 2(b), added subsec. (j).


                    Effective Date of 1994 Amendment

    Section 701(b) of Pub. L. 103-465 provided that: ``The amendment 
made by this section [amending this section] shall apply to payments 
made after December 31, 1994.''
    Amendment by section 702(a) of Pub. L. 103-465 applicable to 
payments made after Dec. 31, 1996, see section 702(d) of Pub. L. 103-
465, set out as a note under section 3304 of this title.


                    Effective Date of 1992 Amendments

    Section 1934(b) of Pub. L. 102-486 provided that: ``The amendment 
made by this section [amending this section] applies to payments 
received after December 31, 1992.''
    Section 1942(b) of Pub. L. 102-486 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply to payments 
of winnings after December 31, 1992.''
    Amendment by Pub. L. 102-318 applicable, except as otherwise 
provided, to distributions after Dec. 31, 1992, see section 522(d) of 
Pub. L. 102-318, set out as a note under section 401 of this title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    Effective Date of 1987 Amendment

    Section 10302(b) of Pub. L. 100-203 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to 
certificates furnished after the day 30 days after the date of the 
enactment of this Act [Dec. 22, 1987].''


                    Effective Date of 1986 Amendment

    Amendment by section 104(b)(15) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub. 
L. 99-514, set out as a note under section 1 of this title.
    Amendment by section 1301(j)(8) of Pub. L. 99-514 applicable to 
bonds issued after Aug. 15, 1986, except as otherwise provided, see 
sections 1311 to 1318 of Pub. L. 99-514, set out as an Effective Date; 
Transitional Rules note under section 141 of this title.
    Amendment by section 1303(b)(4) of Pub. L. 99-514 effective Oct. 22, 
1986, see section 1311(f) of Pub. L. 99-514, as amended, set out as an 
Effective Date; Transitional Rules note under section 141 of this title.


                    Effective Date of 1985 Amendment

    Section 6(d) of Pub. L. 99-44 provided that: ``The amendment made by 
section 3 [amending this section] shall take effect on January 1, 
1985.''


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 98-67 applicable with respect to payments made 
after Dec. 31, 1983, see section 110(a) of Pub. L. 98-67, set out as a 
note under section 31 of this title.


                    Effective Date of 1982 Amendment

    Section 317(b) of Pub. L. 97-248 provided: ``The amendments made by 
subsection (a) [amending this section] shall apply to payments made 
after December 31, 1983.''
    Amendment by section 334(d) of Pub. L. 97-248 applicable to payments 
or other distributions made after Dec. 31, 1982, see section 334(e) of 
Pub. L. 97-248, set out as an Effective Date note under section 3405 of 
this title.


                    Effective Date of 1981 Amendment

    Section 101(f)(2) of Pub. L. 97-34 provided that: ``The amendments 
made by subsection (e) [amending this section] shall apply to 
remuneration paid after September 30, 1981; except that the amendment 
made by subsection (e)(5) [amending this section] shall apply to 
remuneration paid after December 31, 1981.''


                    Effective Date of 1980 Amendment

    Section 4(f) of Pub. L. 96-601 provided that: ``The amendments made 
by this section [amending this section and section 6051 of this title] 
shall apply to payments made on or after the first day of the first 
calendar month beginning more than 120 days after the date of the 
enactment of this Act [Dec. 24, 1980].''


                    Effective Date of 1978 Amendment

    Section 101(f)(2) of Pub. L. 95-600 provided that: ``The amendments 
made by subsection (e) [amending this section] shall apply to 
remuneration paid after December 31, 1978.''
    Section 102(d)(2) of Pub. L. 95-600 provided that: ``The amendments 
made by subsection (c) [amending this section] shall apply with respect 
to remuneration paid after December 31, 1978.''
    Amendment by section 601(b)(2) of Pub. L. 95-600 applicable with 
respect to corporations chartered after Dec. 31, 1978, and before Jan. 
1, 1984, see section 601(d) of Pub. L. 95-600, set out as a note under 
section 172 of this title.


                    Effective Date of 1977 Amendment

    Section 106(b) of Pub. L. 95-30 provided that: ``The amendments made 
by section 105 [amending this section] shall apply to wages paid after 
April 30, 1977.''
    Section 405(b) of Pub. L. 95-30 provided that: ``The amendments made 
by this section [amending this section] apply to payments made after 
April 30, 1977.''


                    Effective Date of 1976 Amendment

    Amendment by section 401(d) of Pub. L. 94-455 applicable to wages 
paid after Sept. 14, 1976, see section 401(e) of Pub. L. 94-455, set out 
as a note under section 32 of this title.
    Section 1207(f)(3) of Pub. L. 94-455 provided that: ``The amendments 
made by subsection (d) [amending this section] shall apply to payments 
of winnings made after the 90th day after the date of the enactment of 
this Act [Oct. 4, 1976].''


           Effective and Termination Dates of 1975 Amendments

    Amendment by section 2(b)(2) of Pub. L. 94-164 applicable to taxable 
years ending after Dec. 31, 1975 and before Jan. 1, 1977, see section 
2(g) of Pub. L. 94-164, set out as an Effective Date of 1975 Amendment 
note under section 32 of this title.
    Section 209(c) of Pub. L. 94-12, as amended by Pub. L. 94-164, 
Sec. 5(a)(2); Pub. L. 94-331, Sec. 3(a)(2); Pub. L. 94-396, Sec. 2(b); 
Pub. L. 94-414, Sec. 3(a)(2), provided that: ``The amendments made by 
sections 202(b) and 205 [amending this section] shall apply to wages 
paid after April 30, 1975, and before October 1, 1976.''


                    Effective Date of 1971 Amendment

    Section 208(i) of Pub. L. 92-178 provided that:
        ``(1) The amendments made by this section [amending this 
    section] (other than subsection (h)) shall apply with respect to 
    wages paid after January 15, 1972.
        ``(2) The amendments made by subsection (h) [amending this 
    section] shall apply with respect to wages paid after December 31, 
    1971, and before January 16, 1972.''


                    Effective Date of 1969 Amendments

    Section 805(h) of Pub. L. 91-172, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) The amendments made by subsections (a), (b), (c), (d), and (e) 
[amending this section] shall apply with respect to remuneration paid 
after December 31, 1969.
    ``(2) The amendment made by subsection (f) [amending this section 
and section 6051 of this title] applies to wages paid after April 30, 
1970.
    ``(3) Subsection (o) of section 3402 of the Internal Revenue Code of 
1986 [formerly I.R.C. 1954], added by subsection (g) of this subsection, 
shall apply to payments made after December 31, 1970. Subsection (p) of 
such section 3402, added by subsection (g) of this section, shall apply 
to payments made after June 30, 1970.''
    Section 6(b) of Pub. L. 91-53 provided that: ``The amendments made 
by this section [amending this section] shall apply with respect to 
wages paid after July 31, 1969, and before January 1, 1970.''
    Section 2(b) of Pub. L. 91-36 provided that: ``The amendments made 
by subsection (a) [amending this section] shall apply with respect to 
wages paid after June 30, 1969.''


                    Effective Date of 1966 Amendment

    Section 101(e)(6) of Pub. L. 89-368 provided that: ``The amendments 
made by paragraphs (1) and (2) of this subsection [amending this 
section] shall apply only with respect to remuneration paid after 
December 31, 1966, but only with respect to withholding exemptions based 
on estimation years beginning after such date.''
    Section 101(g) of Pub. L. 89-368 provided that: ``The amendments 
made by this section (other than subsection (e) [amending this section]) 
shall apply only with respect to remuneration paid after April 30, 
1966.''


                    Effective Date of 1965 Amendments

    Amendment by Pub. L. 89-212 effective only with respect to tips 
received after 1965, see section 6 of Pub. L. 89-212, set out as a note 
under section 3201 of this title.
    Amendment by Pub. L. 89-97 applicable only with respect to tips 
received by employees after 1965, see section 313(f) of Pub. L. 89-97, 
set out as an Effective Date note under section 6053 of this title.


                    Effective Date of 1964 Amendment

    Section 302(d) of Pub. L. 88-272 provided that: ``The amendments 
made by subsections (a) and (b) of this section [amending this section] 
shall apply with respect to remuneration paid after the seventh day 
following the date of the enactment of this Act [Feb. 26, 1964]. The 
amendment made by subsection (c) of this section [amending section 1441 
of this title] shall apply with respect to payments made after the 
seventh day following the date of the enactment of this Act.''


                    Effective Date of 1961 Amendment

    Amendment by Pub. L. 87-256 applicable with respect to wages paid 
after Dec. 31, 1961, see section 110(h)(4) of Pub. L. 87-256, set out as 
a note under section 3401 of this title.


                    Effective Date of 1955 Amendment

    Section 3 of act Aug. 9, 1955, provided that: ``The amendment made 
by section 2 [amending this section] shall be applicable only with 
respect to remuneration paid after the date of enactment of this Act 
[Aug. 9, 1955].''


                            Savings Provision

    For provisions that nothing in amendment by Pub. L. 101-508 be 
construed to affect treatment of certain transactions occurring, 
property acquired, or items of income, loss, deduction, or credit taken 
into account prior to Nov. 5, 1990, for purposes of determining 
liability for tax for periods ending after Nov. 5, 1990, see section 
11821(b) of Pub. L. 101-508, set out as a note under section 29 of this 
title.


           Plan Amendments Not Required Until January 1, 1994

    For provisions directing that if any amendments made by subtitle B 
[Secs. 521-523] of title V of Pub. L. 102-318 require an amendment to 
any plan, such plan amendment shall not be required to be made before 
the first plan year beginning on or after Jan. 1, 1994, see section 523 
of Pub. L. 102-318, set out as a note under section 401 of this title.


          Withholding Allowances To Reflect New Rate Schedules

    Section 1581(a) of Pub. L. 99-514 provided that: ``The Secretary of 
the Treasury or his delegate shall modify the withholding schedules and 
withholding exemption certificates under section 3402 of the Internal 
Revenue Code of 1954 [now 1986] to better approximate actual tax 
liability under the amendments made by this Act [see Tables for 
classification].''


   Employer's Responsibility Upon Failure of Employee To File Revised 
          Withholding Allowance Certificate Before Oct. 1, 1987

    Section 1581(c) of Pub. L. 99-514, as amended by Pub. L. 100-647, 
title I, Sec. 1015(p), Nov. 10, 1988, 102 Stat. 3572, provided that: 
``If an employee has not filed a revised withholding allowance 
certificate before October 1, 1987, the employer shall withhold income 
taxes from the employee's wages--
        ``(1) as if the employee claimed 1 withholding allowance, if the 
    employee checked the `single' box on the employee's previous 
    withholding allowance certificate, or
        ``(2) as if the employee claimed 2 withholding allowances, if 
    the employee checked the `married' box on the employee's previous 
    withholding allowance certificate.
The preceding sentence shall not apply if its application would result 
in an increase in the number of withholding allowances for the 
employee.''


Failure To Deduct and Withhold Under a Duty Created or Increased by Tax 
                           Reform Act of 1976

    Section 304 of Pub. L. 95-30, as amended by Pub. L. 99-514, Sec. 2, 
Oct. 22, 1986, 100 Stat. 2095, provided that: ``No person shall be 
liable in respect of any failure to deduct and withhold under section 
3402 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] 
(relating to income tax collected at source) on remuneration paid before 
January 1, 1977, to the extent that the duty to deduct and withhold was 
created or increased by any provision of the Tax Reform Act of 1976 
[Pub. L. 94-455].''


                  Wages Paid During 1972 and After 1972

    Section 805(b)(3), (4) of Pub. L. 91-172, title VIII, Dec. 30, 1969, 
83 Stat. 704, which provided for section 3402(b)(1) withholding rates of 
13.50; 26.90; 29.20; 58.30; 175.00; 350.00; 700.00; and 1.90, effective 
with respect to wages during 1972, and withholding rates of 14.40; 
28.80; 31.30; 62.50; 187.50; 375.00; 750.00; and 2.10, effective with 
respect to wages paid after 1972, was repealed by section 208(b)(2) of 
Pub. L. 92-178.


                 Transitional Determination Status Date

    Section 101(f) of Pub. L. 89-368, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ``Notwithstanding 
section 3402(f)(3)(B) of the Internal Revenue Code of 1986 [formerly 
I.R.C. 1954], a withholding exemption certificate furnished the employer 
after the date of the enactment of this Act [Mar. 15, 1966] and before 
May 1, 1966, shall take effect with respect to the first payment of 
wages made on or after May 1, 1966, or the 10th day after the date on 
which such certificate is furnished to the employer, whichever is later, 
and at the election of the employer such certificate may be made 
effective with respect to any payment of wages made on or after the date 
on which such certificate is furnished.''


                            Meaning of Terms

    Section 1 of act Aug. 9, 1955, provided that: ``The terms used in 
this Act [amending subsecs. (a) and (j) of this section] shall have the 
same meaning as when used in the Internal Revenue Code.''

                  Section Referred to in Other Sections

    This section is referred to in sections 31, 275, 3401, 3405, 3406, 
3505, 3507, 3509, 3510, 4999, 6040, 6051, 6205, 6413, 6682, 7205 of this 
title; title 25 section 2719; title 42 sections 407, 659.
