Page:United States Statutes at Large Volume 96 Part 1.djvu/627

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 585

original issue discount for any calendar year shall be withheld from each cash payment made with respect to such obligation during such calendar year in the proportion which the a m o u n t of such payment bears to the aggregate of such payments. "(4) O R I G I N A L ISSUE DISCOUNT DEFINED.—For purposes of t h i s

subsection, the term 'original issue discount' has the m e a n i n g given such term by section 1232(b)(1). "SEC. 3456. ADMINISTRATIVE PROVISIONS.

26 USC 3456.

"(a) R E T U R N AND P A Y M E N T BY G O V E R N M E N T A L U N I T S. — I f

the

payor of any payment subject to withholding under section 3451 is the United States or a State, or a n agency or i n s t r u m e n t a l i t y thereof, the r e t u r n of the tax withheld under this subchapter shall be made by the officer or employee having control of the payment of the a m o u n t subject to withholding or by any officer or employee appropriately designated to m a k e such withholding. "(b) A N N U A L W I T H H O L D I N G BY F I N A N C I A L INSTITUTIONS.—

"(1) IN GENERAL.—Under regulations prescribed by the Secretary, a financial institution described in subparagraph (B) or (C) of section 3454(a)(1) may elect to defer withholding of the tax Ante, p. 580. imposed by section 3451 during any calendar year on interest paid on savings accounts, interest-bearing checking accounts, and similar accounts until a date which is not later than the last day of such year. "(2) CONDITION FOR ELECTION.—The

regulations

prescribed

under paragraph (1) shall provide that a n election under such paragraph is conditional on a g r e e m e n t by the person making the election— "(A) that the balance in any account subject to such election shall a t no time be less than a n a m o u n t equal to the tax under section 3451 which would have been withheld as of such t i m e if such election were not in effect, and "(B) that if a n account subject to such election is closed before the date on which the tax under section 3451 would (but for this subparagraph) be withheld as a result of such an election, the tax shall be withheld before the time of closing such account. "(c) T A X P A I D

BY R E C I P I E N T. — I f

a

payor,

in

violation

of

the

provisions of this subchapter, fails to withhold the tax imposed under section 3451, and thereafter the tax against which such tax may be credited is paid, the tax so required to be withheld shall not be collected from the payor; b u t this subsection shall in no case relieve the payor from liability for any penalties or additions to the tax otherwise applicable in respect of such failure to withhold. "(d) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subchapter." SEC. 302. CREDIT AGAINST TAX. (a) IN GENERAL.—Section 31 (relating to tax withheld on wages) is 26 USC 31. amended to read a s follows: "SEC.

31. TAX WITHHELD ON WAGES, INTEREST. DIVIDENDS. AND PATRONAGE DIVIDENDS.

"(a) W A G E WITHHOLDING.—The a m o u n t withheld under section 3402 as tax on the wages of any individual shall be allowed to the

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