26 U.S.C. § 1451 — Untitled legal text

Page 2538 TITLE 26—INTERNAL REVENUE CODE [§ 1451 (5) Definitions Any term used in this subsection which is also used under section 1445 shall have the same meaning as when used in such section. (6) Regulations The Secretary shall prescribe such regula- tions or other guidance as may be necessary to carry out the purposes of this subsection, in- cluding regulations providing for exceptions from the provisions of this subsection. (g) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section, including— (1) regulations providing for the application of this section in the case of publicly traded partnerships, and (2) regulations providing— (A) that, for purposes of section 6655, the withholding tax imposed under this section shall be treated as a tax imposed by section 11 and any partnership required to pay such tax shall be treated as a corporation, and (B) appropriate adjustments in applying section 6655 with respect to such withholding tax. (Added Pub. L. 99–514, title XII, § 1246(a), Oct. 22, 1986, 100 Stat. 2582; amended Pub. L. 100–647, title I, § 1012(s)(1)(A), Nov. 10, 1988, 102 Stat. 3526; Pub. L. 101–239, title VII, § 7811(i)(6), Dec. 19, 1989, 103 Stat. 2410; Pub. L. 115–97, title I, §§ 13001(b)(3)(D), 13501(b), Dec. 22, 2017, 131 Stat. 2098, 2139; Pub. L. 115–141, div. U, title IV, § 401(a)(199), Mar. 23, 2018, 132 Stat. 1193.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–141 substituted ‘‘Withholding of tax’’ for ‘‘Withholding tax’’ in section catchline. 2017—Subsec. (b)(2)(B). Pub. L. 115–97, § 13001(b)(3)(D), substituted ‘‘section 11(b)’’ for ‘‘section 11(b)(1)’’. Subsecs. (f), (g). Pub. L. 115–97, § 13501(b), added sub- sec. (f) and redesignated former subsec. (f) as (g). 1989—Subsec. (b)(2)(B). Pub. L. 101–239, § 7811(i)(6)(A), substituted ‘‘section 11(b)(1)’’ for ‘‘section 11(b)’’. Subsec. (d)(2). Pub. L. 101–239, § 7811(i)(6)(B), amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘A foreign partner’s share of any withholding tax paid by the partnership under this section shall be treated as distributed to such partner by such partner- ship on the last day of the partnership’s taxable year (for which such tax was paid).’’ Subsec. (f). Pub. L. 101–239, § 7811(i)(6)(C), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: ‘‘The Secretary shall prescribe such regulations as may be necessary to carry out the pur- poses of this section, including regulations providing for the application of this section in the case of pub- licly traded partnerships.’’ 1988—Pub. L. 100–647 amended section generally, sub- stituting provisions relating to withholding tax on for- eign partners’ share of effectively connected income for provisions which related to withholding tax on amounts paid by partnerships to foreign partners. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Amendment by section 13001(b)(3)(D) of Pub. L. 115–97 applicable to distributions made after Dec. 31, 2017, see section 13001(c)(2) of Pub. L. 115–97, set out as a note under section 11 of this title. Pub. L. 115–97, title I, § 13501(c)(2), Dec. 22, 2017, 131 Stat. 2141, provided that: ‘‘The amendment made by subsection (b) [amending this section] shall apply to sales, exchanges, and dispositions after December 31, 2017.’’ EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 of Pub. L. 101–239, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–647, title I, § 1012(s)(1)(D), Nov. 10, 1988, 102 Stat. 3527, provided that: ‘‘The amendments made by this paragraph [amending sections 1446 and 6401 of this title] shall apply to taxable years beginning after De- cember 31, 1987. No amount shall be required to be de- ducted and withheld under section 1446 of the 1986 Code (as in effect before the amendment made by subpara- graph (A)).’’ EFFECTIVE DATE Pub. L. 99–514, title XII, § 1246(d), Oct. 22, 1986, 100 Stat. 2583, provided that: ‘‘The amendment made by this section [enacting this section and amending sec- tion 6401 of this title] shall apply to distributions after December 31, 1987 (or, if earlier, the effective date (which shall not be earlier than January 1, 1987) of the initial regulations issued under section 1446 of the In- ternal Revenue Code of 1986 as added by this section).’’ Subchapter B—Application of Withholding Provisions Sec. 1461. Liability for withheld tax. 1462. Withheld tax as credit to recipient of income. 1463. Tax paid by recipient of income. 1464. Refunds and credits with respect to withheld tax. [1465. Repealed.] Editorial Notes PRIOR PROVISIONS A prior subchapter B, consisting of section 1451, acts Aug. 16, 1954, ch. 736, 68A Stat. 359; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834, related to tax-free covenant bonds, prior to repeal by Pub. L. 98–369, div. A, title IV, § 474(r)(29)(A), July 18, 1984, 98 Stat. 844, which repeal was not applicable with respect to obligations issued before Jan. 1, 1984, pursuant to section 475(b) of Pub. L. 98–369, set out as an Effective Date of 1984 Amendment note under section 33 of this title. AMENDMENTS 1986—Pub. L. 99–514, title XVIII, § 1899A(73), Oct. 22, 1986, 100 Stat. 2963, substituted ‘‘Liability for withheld tax’’ for ‘‘Return and payment of withheld tax’’ in item 1461. 1984—Pub. L. 98–369, div. A, title IV, § 474(r)(29)(A), July 18, 1984, 98 Stat. 844, redesignated subchapter C as B, and struck out former subchapter B which related to tax-free covenant bonds. 1976—Pub. L. 94–455, title XIX, § 1901(b)(41), Oct. 4, 1976, 90 Stat. 1803, struck out item 1465 ‘‘Definition of withholding agent’’. [§ 1451. Repealed. Pub. L. 98–369, div. A, title IV, § 474(r)(29)(A), July 18, 1984, 98 Stat. 844] Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 359; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834, related to tax-free covenant bonds. The repeal was not applicable with respect to obligations issued before Page 2539 TITLE 26—INTERNAL REVENUE CODE § 1471 Jan. 1, 1984, pursuant to section 475(b) of Pub. L. 98–369, set out as an Effective Date of 1984 Amendment note under section 33 of this title. § 1461. Liability for withheld tax Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter. (Aug. 16, 1954, ch. 736, 68A Stat. 360; Pub. L. 89–809, title I, § 103(i), Nov. 13, 1966, 80 Stat. 1554.) Editorial Notes AMENDMENTS 1966—Pub. L. 89–809 struck out requirement that per- sons required to deduct and withhold any tax under this chapter make return thereof on or before March 15 of each year and pay the tax to the officer designated in section 6151, and substituted ‘‘Liability for withheld tax’’ for ‘‘Return and payment of withheld tax’’ in sec- tion catchline. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–809 applicable with respect to payments occurring after Dec. 31, 1966, see section 103(n)(3) of Pub. L. 89–809, set out as a note under sec- tion 871 of this title. § 1462. Withheld tax as credit to recipient of in- come Income on which any tax is required to be withheld at the source under this chapter shall be included in the return of the recipient of such income, but any amount of tax so withheld shall be credited against the amount of income tax as computed in such return. (Aug. 16, 1954, ch. 736, 68A Stat. 360.) § 1463. Tax paid by recipient of income If— (1) any person, in violation of the provisions of this chapter, fails to deduct and withhold any tax under this chapter, and (2) thereafter the tax against which such tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from such person; but this section shall in no case relieve such person from liability for interest or any penalties or addi- tions to the tax otherwise applicable in respect of such failure to deduct and withhold. (Aug. 16, 1954, ch. 736, 68A Stat. 360; Pub. L. 101–239, title VII, § 7743(a), Dec. 19, 1989, 103 Stat. 2406; Pub. L. 104–188, title I, § 1704(t)(9), Aug. 20, 1996, 110 Stat. 1887.) Editorial Notes AMENDMENTS 1996—Pub. L. 104–188 substituted ‘‘this section’’ for ‘‘this subsection’’. 1989—Pub. L. 101–239 amended section generally. Prior to amendment, section read as follows: ‘‘If any tax re- quired under this chapter to be deducted and withheld is paid by the recipient of the income, it shall not be re-collected from the withholding agent; nor in cases in which the tax is so paid shall any penalty be imposed on or collected from the recipient of the income or the withholding agent for failure to return or pay the same, unless such failure was fraudulent and for the purpose of evading payment.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–239, title VII, § 7743(b), Dec. 19, 1989, 103 Stat. 2406, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply to failures after December 31, 1989.’’ § 1464. Refunds and credits with respect to with- held tax Where there has been an overpayment of tax under this chapter, any refund or credit made under chapter 65 shall be made to the with- holding agent unless the amount of such tax was actually withheld by the withholding agent. (Aug. 16, 1954, ch. 736, 68A Stat. 360.) [§ 1465. Repealed. Pub. L. 94–455, title XIX, § 1901(a)(156), Oct. 4, 1976, 90 Stat. 1789] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 360, de- fined withholding agent. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable with respect to taxable years be- ginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. CHAPTER 4—TAXES TO ENFORCE REPORT- ING ON CERTAIN FOREIGN ACCOUNTS Sec. 1471. Withholdable payments to foreign financial institutions. 1472. Withholdable payments to other foreign enti- ties. 1473. Definitions. 1474. Special rules. Editorial Notes PRIOR PROVISIONS A prior chapter 4, consisting of sections 1481 and 1482, which related to rules applicable to recovery of exces- sive profits on government contracts, was repealed by Pub. L. 101–508, title XI, § 11801(a)(37), Nov. 5, 1990, 104 Stat. 1388–521. Section 1481, acts Aug. 16, 1954, ch. 736, 68A Stat. 362; June 21, 1965, Pub. L. 89–44, title VIII, § 809(d)(5)(B), 79 Stat. 168; Oct. 4, 1976, Pub. L. 94–455, title XIX, §§ 1901(a)(157), 1906(b)(13)(A), 1951(b)(14)(A), 90 Stat. 1789, 1834, 1840, related to mitigation of effect of renegoti- ation of government contracts. Section 1482, added Pub. L. 85–866, title I, § 62(a), Sept. 2, 1958, 72 Stat. 1648, related to readjustment for repay- ments made pursuant to price redeterminations. § 1471. Withholdable payments to foreign finan- cial institutions (a) In general In the case of any withholdable payment to a foreign financial institution which does not meet the requirements of subsection (b), the withholding agent with respect to such payment shall deduct and withhold from such payment a