Page:United States Statutes at Large Volume 96 Part 1.djvu/665

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 623

ment of the internal revenue laws relating to the request described in subparagraph (A)(ii). "(3) TAXABLE YEARS, ETC., TREATED SEPARATELY.—For purposes

of this subsection, each taxable period (or, if there is no taxable period, each taxable event) and each tax imposed by a separate chapter of this title shall be treated separately." (b) EFFECTIVE DATE.—The amendments made by subsection (a) ^6 USC 7602 shall take effect on the day after the date of the enactment of this note. Act.

Subtitle E—Withholding on Pensions and Other Retirement Income SEC. 334. WITHHOLDING ON PENSIONS. ANNUITIES, AND CERTAIN OTHER DEFERRED INCOME.

(a) IN GENERAL.—Chapter 24 (relating to collection of income tax at source on wages) is amended by adding at the end thereof the following new section: "SEC. 3405. SPECIAL RULES FOR PENSIONS, ANNUITIES. AND CERTAIN OTHER DEFERRED INCOME. "(a) PENSIONS, ANNUITIES, ETC.— "(1) WITHHOLDING AS IF PAYMENT WERE WAGES.—The

payor of any periodic payment (as defined in subsection (d)(2)) shall withhold from such payment the amount which would be required to be withheld from such payment if such payment were a payment of wages by an employer to an employee for the appropriate payroll period. "(2) ELECTION OF NO WITHHOLDING.—An individual may elect to have paragraph (1) not apply with respect to periodic payments made to such individual. Such an election shall remain in effect until revoked by such individual. "(3) WHEN ELECTION TAKES EFFECT.—Any election under this subsection (and any revocation of such an election) shall take effect as provided by subsection (f)(3) of section 3402 for withholding exemption certificates. "(4) AMOUNT WITHHELD WHERE NO WITHHOLDING EXEMPTION CERTIFICATE IN EFFECT.—In the case of any payment with

respect to which a withholding exemption certificate is not in effect, the amount withheld under paragraph (1) shall be determined by treating the payee as a married individual claiming 3 withholding exemptions. "(b) NONPERIODIC DISTRIBUTION.—

"(1) WITHHOLDING.—The payor of any nonperiodic distribution (as defined in subsection (d)(3)) shall withhold from such distribution the amount determined under paragraph (2). "(2) AMOUNT OF WITHHOLDING.— "(A) DISTRIBUTIONS WHICH ARE NOT QUALIFIED TOTAL DIS-

TRIBUTIONS.—In the case of any nonperiodic distribution which is not a qualified total distribution, the amount withheld under paragraph (1) shall be the amount determined by multiplying such distribution by 10 percent. "(B) QUALIFIED TOTAL DISTRIBUTIONS.—In the case of any nonperiodic distribution which is a qualified total distribution, the amount withheld under paragraph (1) shall be

26 USC 3405.

�