Page:United States Statutes at Large Volume 96 Part 1.djvu/630

 96 STAT. 588

PUBLIC LAW 97-248—SEPT. 3, 1982 of such payments, the name and address of the person to whom paid, and the amount of tax withheld." (b) AMOUNTS SUBJECT TO REPORTING.—Paragraph (1) of section

26 USC 6044.

6044(b) (relating to amounts subject to reporting) is amended by striking out "under subsection (a)", and by inserting "under paragraph (1)(A) or (2) of subsection (a)". (c) STATEMENTS.—Section 6044(e) (relating to statements to be furnished to persons with respect to whom information is furnished) is amended— (1) by striking out "and" at the end of paragraph (1), (2) by striking out the period a t the end of paragraph (2), and inserting ", and" in lieu thereof, (3) by inserting after paragraph (2) the following paragraph: "(3) the amount of tax withheld under section 3451., and (4) by striking out "No statement" in the last sentence thereof and inserting in lieu thereof "Except in the case of a return required by reason of subparagraph (B) of subsection (a)(1), no statement'. (d) DuPUCATE FILED WITH SECRETARY.—Section 6044 is amended by adding a t the end thereof the following new subsection: "(f) DUPUCATE OF SUBSECTION (e) STATEMENT MAY B E REQUIRED TO B E FILED WITH SECRETARY.—A duplicate of any statement made

pursuant to subsection (e) which is required to set forth an amount withheld under section 3451 shall, when required by regulations prescribed by the Secretary, be filed with the Secretary." SEC. 305. DENIAL OF DEDUCTION FOR CERTAIN TAXES. (a) No DEDUCTION FOR TAX WITHHELD AT SOURCE ON INTEREST, DIVIDENDS, AND PATRONAGE DIVIDENDS.—Paragraph (1) of section

26 USC 275.

275(a) (relating to denial of deduction for certain taxes) is amended— (1) by striking out "and" at the end of subparagraph (B), (2) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof "; and", and (3) by inserting after subparagraph (C) the following subparagraph: "(D) the tax withheld at source on interest, dividends, and patronage dividends under section 3451." (b) No DEDUCTION OF TAXES WITHHELD ON INTEREST AND DIVIDENDS IN DETERMINING TAXABLE INCOME.—Subsection (b) of section

26 USC 3502.

26 USC 6682. 26 USC 7205.

3502 (relating to the nondeductibility of taxes in computing taxable income) is amended— (1) by striking out "under chapter 24" and inserting in lieu thereof "under subchapter A of chapter 24", and (2) by adding at the end thereof the following new subsection: "(c) The tax withheld under subchapter B of chapter 24 shall not be allowed as a deduction in computing taxable income under subtitle A either to the person withholding the tax or to the recipient of the amounts subject to withholding." SEC. 306. PENALTIES. (a) CIVIL PENALTY.—Paragraph (1) of section 6682(a) (relating to false information with respect to withholding) is amended by inserting "or section 3452(fKl)(A)" after "section 3402". (b) CRIMINAL PENALTY.—Section 7205 (relating to fraudulent withholding exemption certificate or failure to supply information) is amended—

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