Page:United States Statutes at Large Volume 97.djvu/403

 PUBLIC LAW 98-67—AUG. 5, 1983 97 STAT. 371 "(ii) is described in section 4947(a)(1). "(5) AMOUNTS DESCRIBED IN THIS PARAGRAPH.— An amount is described in this paragraph if such amount— "(A) is subject to withholding under subchapter A of chapter 3 (relating to withholding of tax on nonresident 26 USC 1441. aliens and foreign corporations) by the person paying such amount, or "(B) would be subject to withholding under subchapter A of chapter 3 by the person paying such amount but for the fact that— "(i) such amount is income from sources outside the United States, "(ii) the payor thereof is exempt from the application of section 1441(a) by reason of section 1441(c) or a tax treaty, or "(iii) such amount is original issue discount (within the meaning of section 1232(b)(1)).". (3) Paragraph (1) of section 6049(c) (relating to statements to 96 Stat. 591. be furnished to persons with respect to whom information is 26 USC 6049. furnished) is amended— (A) by inserting "and" at the end of subparagraph (A), (B) by striking out ", and" at the end of subparagraph (B) and inserting in lieu thereof a period, and (C) by striking out subparagraph (C). SEC. 103. SENSE OF THE CONGRESS WITH RESPECT TO INCREASED APPROPRIATIONS. It is the sense of the Congress— (1) that additional amounts should be appropriated for pur- poses of collecting tax due with respect to reportable payments (as defined in section 3406(b) of the Internal Revenue Code of 1954), and Infra. (2) that— (A) such additional amounts should not be less than— (i) $15,000,000 for fiscal year 1984, and (ii) $300,000,000 for the period consisting of fiscal years 1984 through 1988, and (B) it would be preferable that such additional amounts for such period be at least $600,000,000. SEC. 104. BACKUP WITHHOLDING. (a) IN GENERAL.— Chapter 24 (relating to collection of income tax at source) is amended by inserting after section 3405 the following new section: "SEC. 3406. BACKUP WITHHOLDING. 26 USC 3406. "(a) REQUIREMENT TO DEDUCT AND WITHHOLD.— "(1) IN GENERAL. — In the case of any reportable payment, if— "(A) the payee fails to furnish his TIN to the payor in the manner required, "(B) the Secretary notifies the payor that the TIN fur- nished by the payee is incorrect, "(C) there has been a notified payee underreporting de- scribed in subsection (c), or "(D) there has been a payee certification failure described in subsection (d),

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