Page:United States Statutes at Large Volume 97.djvu/407

 PUBLIC LAW 98-67 —AUG. 5, 1983 97 STAT. 375 The Secretary may notify any such broker that such payee is subject to withholding under subsection (a)(l)(C). "(d) INTEREST AND DIVIDEND BACKUP WITHHOLDING APPLIES TO NEW ACCOUNTS AND INSTRUMENTS UNLESS PAYEE CERTIFIES THAT HE Is NOT SUBJECT TO SUCH WITHHOLDING.— "(1) IN GENERAL.— There is a payee certification failure unless the payee has certified to the payor, under penalty of perjury, that such payee is not subject to withholding under subsection (a)(l)(C). "(2) SPECIAL RULES FOR READILY TRADABLE INSTRUMENTS. — "(A) IN GENERAL. —Subsection (a)(l)(D) shall apply to any reportable interest or dividend payment to any payee on any readily tradable instrument if (and only if) no certifica- tion was provided to the payor by the payee under para- graph (1) and— "(i) the payor was notified by a broker under subpar- agraph (B), "(ii) such instrument was acquired directly by the payee from the payor, or (iii) such instrument is held by the payor as nomi- nee for the payee. " (B) BROKER NOTIFIES PAYOR. —I f — "(i) a payee acquires any readily tradable instrument through a broker, and "(iiXD the payee does not provide a certification to such broker under subparagraph (C), or (II) such broker is notified by the Secretary before such acquisition that such payee is subject to withholding under subsection (a)(l)(C), such broker shall, within 15 days after the date of the acquisition, notify the payor that such payee is subject to withholding under subsection (a)(l)(D) (or subsection (a)(l)(C) in the case of a notification described in clause (iiXID). " (C) TIME FOR PAYEE TO PROVIDE CERTIFICATION TO BROKER. — In the case of any readily tradable instrument acquired by a payee through a broker, the certification described in paragraph (1) may be provided by the payee to such broker— "(i) at any time after the payee's account with the broker was established and before the acquisition of such instrument, or "(ii) in connection with the acquisition of such instrument. "(3) EXCEPTION FOR EXISTING ACCOUNTS, ETC.—This subsection and subsection (a)(l)(D) shall not apply to any reportable inter- est or dividend payment which is paid or credited— "(A) in the case of interest or any other amount of a kind reportable under section 6049, with respect to any account 96 Stat. 591. (whatever called) established before January 1, 1984, or 26 USC 6049. with respect to any instrument acquired before January 1, 1984, "(B) in the case of dividends or any other amount report- able under section 6042, on any stock or other instrument acquired before January 1, 1984, or "(C) in the case of patronage dividends or other amounts of a kind reportable under section 6044, with respect to any

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