42 U.S.C. § 408 — Penalties

Page 1943 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 408 States to study and evaluate the appointment and pay- ment of attorney and non-attorney claimant represent- atives appearing before the Commissioner of Social Se- curity in connection with benefit claims under titles II and XVI of the Social Security Act (42 U.S.C. 401 et seq., 1381 et seq.) and to report to the appropriate com- mittees of Congress not later than 3 years after the date of the submission by the Commissioner of Social Security to Congress pursuant to section 303(d) of Pub. L. 108–203 (set out above) of written notice of comple- tion of full implementation of the requirements for op- eration of the demonstration project under section 303 of Pub. L. 108–203. GAO STUDY AND REPORT Pub. L. 106–170, title IV, § 406(c), Dec. 17, 1999, 113 Stat. 1912, directed the Comptroller General of the United States to conduct a study, and to submit a report on the study’s results to the appropriate committees of Congress not later than 1 year after Dec. 17, 1999, that examined the costs incurred by the Social Security Ad- ministration in administering 42 U.S.C. 406(a)(4), (b)(1) and itemized the components of such costs; identified efficiencies that the Administration could implement to reduce such costs; examined the feasibility and ad- visability of linking the payment of, or the amount of, the assessment under 42 U.S.C. 406(d) to the timeliness of the payment of the fee to the attorney as certified by the Commissioner of Social Security pursuant to 42 U.S.C. 406(a)(4), (b)(1); determined whether 42 U.S.C. 406(a)(4), (b)(1) should be applied to claimants under title XVI of the Social Security Act (42 U.S.C 1381 et seq.); determined the feasibility and advisability of stating fees under 42 U.S.C. 406(d) in terms of a fixed dollar amount as opposed to a percentage; determined whether the dollar limit specified in 42 U.S.C. 406(a)(2)(A)(ii)(II) should be raised; and determined whether the assessment on attorneys required under 42 U.S.C. 406(d) impaired access to legal representation for claimants. § 407. Assignment of benefits (a) In general The right of any person to any future payment under this subchapter shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this subchapter shall be subject to execu- tion, levy, attachment, garnishment, or other legal process, or to the operation of any bank- ruptcy or insolvency law. (b) Amendment of section No other provision of law, enacted before, on, or after April 20, 1983, may be construed to limit, supersede, or otherwise modify the provisions of this section except to the extent that it does so by express reference to this section. (c) Withholding of taxes Nothing in this section shall be construed to prohibit withholding taxes from any benefit under this subchapter, if such withholding is done pursuant to a request made in accordance with section 3402(p)(1) of the Internal Revenue Code of 1986 by the person entitled to such ben- efit or such person’s representative payee. (Aug. 14, 1935, ch. 531, title II, § 207, 49 Stat. 624; Aug. 10, 1939, ch. 666, title II, § 201, 53 Stat. 1362, 1372; Pub. L. 98–21, title III, § 335(a), Apr. 20, 1983, 97 Stat. 130; Pub. L. 105–277, div. J, title IV, § 4005(a), Oct. 21, 1998, 112 Stat. 2681–911.) Editorial Notes REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in sub- sec. (c), is classified generally to Title 26, Internal Rev- enue Code. CODIFICATION In subsec. (b), ‘‘April 20, 1983’’ substituted for ‘‘the date of the enactment of this section’’, which was translated as meaning the date of enactment of this subsection, as the probable intent of Congress. AMENDMENTS 1998—Subsec. (c). Pub. L. 105–277 added subsec. (c). 1983—Pub. L. 98–21 designated existing provisions as subsec. (a) and added subsec. (b). 1939—Act Aug. 10, 1939, amended section generally, in- corporating provisions of former section 408 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1983 AMENDMENT Pub. L. 98–21, title III, § 335(c), Apr. 20, 1983, 97 Stat. 130, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply only with respect to benefits payable or rights existing under the Social Security Act [42 U.S.C. 301 et seq.] on or after the date of the enactment of this Act [Apr. 20, 1983].’’ EFFECTIVE DATE OF 1939 AMENDMENT Act Aug. 10, 1939, ch. 666, title II, § 201, 53 Stat. 1362, provided that the amendment made by that section is effective Jan. 1, 1940. § 408. Penalties (a) In general Whoever— (1) for the purpose of causing an increase in any payment authorized to be made under this subchapter, or for the purpose of causing any payment to be made where no payment is au- thorized under this subchapter, shall make or cause to be made any false statement or rep- resentation (including any false statement or representation in connection with any matter arising under subchapter E of chapter 1, or subchapter A or E of chapter 9 of the Internal Revenue Code of 1939, or chapter 2 or 21 or sub- title F of the Internal Revenue Code of 1954) as to— (A) whether wages were paid or received for employment (as said terms are defined in this subchapter and the Internal Revenue Code), or the amount of wages or the period during which paid or the person to whom paid; or (B) whether net earnings from self-employ- ment (as such term is defined in this sub- chapter and in the Internal Revenue Code) were derived, or as to the amount of such net earnings or the period during which or the person by whom derived; or (C) whether a person entitled to benefits under this subchapter had earnings in or for a particular period (as determined under sec- tion 403(f) of this title for purposes of deduc- tions from benefits), or as to the amount thereof; or (2) makes or causes to be made any false statement or representation of a material fact Page 1944 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 408 in any application for any payment or for a disability determination under this sub- chapter; or (3) at any time makes or causes to be made any false statement or representation of a ma- terial fact for use in determining rights to payment under this subchapter; or (4) having knowledge of the occurrence of any event affecting (1) his initial or continued right to any payment under this subchapter, or (2) the initial or continued right to any pay- ment of any other individual in whose behalf he has applied for or is receiving such pay- ment, conceals or fails to disclose such event with an intent fraudulently to secure payment either in a greater amount than is due or when no payment is authorized; or (5) having made application to receive pay- ment under this subchapter for the use and benefit of another and having received such a payment, knowingly and willfully converts such a payment, or any part thereof, to a use other than for the use and benefit of such other person; or (6) willfully, knowingly, and with intent to deceive the Commissioner of Social Security as to his true identity (or the true identity of any other person) furnishes or causes to be furnished false information to the Commis- sioner of Social Security with respect to any information required by the Commissioner of Social Security in connection with the estab- lishment and maintenance of the records pro- vided for in section 405(c)(2) of this title; or (7) for the purpose of causing an increase in any payment authorized under this subchapter (or any other program financed in whole or in part from Federal funds), or for the purpose of causing a payment under this subchapter (or any such other program) to be made when no payment is authorized thereunder, or for the purpose of obtaining (for himself or any other person) any payment or any other benefit to which he (or such other person) is not entitled, or for the purpose of obtaining anything of value from any person, or for any other pur- pose— (A) willfully, knowingly, and with intent to deceive, uses a social security account number, assigned by the Commissioner of Social Security (in the exercise of the Com- missioner’s authority under section 405(c)(2) of this title to establish and maintain records) on the basis of false information furnished to the Commissioner of Social Se- curity by him or by any other person; or (B) with intent to deceive, falsely rep- resents a number to be the social security account number assigned by the Commis- sioner of Social Security to him or to an- other person, when in fact such number is not the social security account number as- signed by the Commissioner of Social Secu- rity to him or to such other person; or (C) knowingly alters a social security card issued by the Commissioner of Social Secu- rity, buys or sells a card that is, or purports to be, a card so issued, counterfeits a social security card, or possesses a social security card or counterfeit social security card with intent to sell or alter it; (8) discloses, uses, or compels the disclosure of the social security number of any person in violation of the laws of the United States; or (9) conspires to commit any offense de- scribed in any of paragraphs (1) through (4), shall be guilty of a felony and upon conviction thereof shall be fined under title 18 or impris- oned for not more than five years, or both, ex- cept that in the case of a person who receives a fee or other income for services performed in connection with any determination with respect to benefits under this subchapter (including a claimant representative, translator, or current or former employee of the Social Security Ad- ministration), or who is a physician or other health care provider who submits, or causes the submission of, medical or other evidence in con- nection with any such determination, such per- son shall be guilty of a felony and upon convic- tion thereof shall be fined under title 18, or im- prisoned for not more than ten years, or both. (b) Restitution (1) Any Federal court, when sentencing a de- fendant convicted of an offense under subsection (a), may order, in addition to or in lieu of any other penalty authorized by law, that the de- fendant make restitution to the victims of such offense specified in paragraph (4). (2) Sections 3612, 3663, and 3664 of title 18 shall apply with respect to the issuance and enforce- ment of orders of restitution to victims of such offense under this subsection. (3) If the court does not order restitution, or orders only partial restitution, under this sub- section, the court shall state on the record the reasons therefor. (4) For purposes of paragraphs (1) and (2), the victims of an offense under subsection (a) are the following: (A) Any individual who suffers a financial loss as a result of the defendant’s violation of subsection (a). (B) The Commissioner of Social Security, to the extent that the defendant’s violation of subsection (a) results in— (i) the Commissioner of Social Security making a benefit payment that should not have been made; or (ii) an individual suffering a financial loss due to the defendant’s violation of sub- section (a) in his or her capacity as the indi- vidual’s representative payee appointed pur- suant to section 405(j) of this title. (5)(A) Except as provided in subparagraph (B), funds paid to the Commissioner of Social Secu- rity as restitution pursuant to a court order shall be deposited in the Federal Old-Age and Survivors Insurance Trust Fund, or the Federal Disability Insurance Trust Fund, as appropriate. (B) In the case of funds paid to the Commis- sioner of Social Security pursuant to paragraph (4)(B)(ii), the Commissioner of Social Security shall certify for payment to the individual de- scribed in such paragraph an amount equal to the lesser of the amount of the funds so paid or the individual’s outstanding financial loss, ex- cept that such amount may be reduced by the amount of any overpayments of benefits owed under this subchapter, subchapter VIII, or sub- chapter XVI by the individual. Page 1945 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 408 1 See References in Text note below. (c) Violations by certified payees Any person or other entity who is convicted of a violation of any of the provisions of this sec- tion, if such violation is committed by such per- son or entity in his role as, or in applying to be- come, a certified payee under section 405(j) of this title on behalf of another individual (other than such person’s spouse), upon his second or any subsequent such conviction shall, in lieu of the penalty set forth in the preceding provisions of this section, be guilty of a felony and shall be fined under title 18 or imprisoned for not more than five years, or both. (d) Effect upon certification as payee; definitions Any individual or entity convicted of a felony under this section or under section 1383a(b) 1 of this title may not be certified as a payee under section 405(j) of this title. For the purpose of subsection (a)(7), the terms ‘‘social security number’’ and ‘‘social security account number’’ mean such numbers as are assigned by the Com- missioner of Social Security under section 405(c)(2) of this title whether or not, in actual use, such numbers are called social security numbers. (e) Application of subsection (a)(6) and (7) to cer- tain aliens (1) Except as provided in paragraph (2), an alien— (A) whose status is adjusted to that of lawful temporary resident under section 1160 or 1255a of title 8 or under section 902 of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989, (B) whose status is adjusted to that of per- manent resident— (i) under section 202 of the Immigration Reform and Control Act of 1986, or (ii) pursuant to section 1259 of title 8, or (C) who is granted special immigrant status under section 1101(a)(27)(I) of title 8, shall not be subject to prosecution for any al- leged conduct described in paragraph (6) or (7) of subsection (a) if such conduct is alleged to have occurred prior to 60 days after November 5, 1990. (2) Paragraph (1) shall not apply with respect to conduct (described in subsection (a)(7)(C)) consisting of— (A) selling a card that is, or purports to be, a social security card issued by the Commis- sioner of Social Security, (B) possessing a social security card with in- tent to sell it, or (C) counterfeiting a social security card with intent to sell it. (3) Paragraph (1) shall not apply with respect to any criminal conduct involving both the con- duct described in subsection (a)(7) to which paragraph (1) applies and any other criminal conduct if such other conduct would be criminal conduct if the conduct described in subsection (a)(7) were not committed. (Aug. 14, 1935, ch. 531, title II, § 208, 49 Stat. 625; Aug. 10, 1939, ch. 666, title II, § 201, 53 Stat. 1362, 1372; Aug. 28, 1950, ch. 809, title I, § 109(c), 64 Stat. 523; Sept. 1, 1954, ch. 1206, title I, § 111(b), 68 Stat. 1085; Pub. L. 85–840, title III, § 310, Aug. 28, 1958, 72 Stat. 1034; Pub. L. 86–778, title II, § 211(m), Sept. 13, 1960, 74 Stat. 958; Pub. L. 92–603, title I, § 130(a), Oct. 30, 1972, 86 Stat. 1359; Pub. L. 94–455, title XII, § 1211(a), (d), Oct. 4, 1976, 90 Stat. 1711, 1712; Pub. L. 97–123, § 4(a), (b), Dec. 29, 1981, 95 Stat. 1663, 1664; Pub. L. 98–369, div. B, title VI, § 2663(a)(5), July 18, 1984, 98 Stat. 1162; Pub. L. 98–460, § 16(c)(2), Oct. 9, 1984, 98 Stat. 1811; Pub. L. 100–690, title VII, § 7088, Nov. 18, 1988, 102 Stat. 4409; Pub. L. 101–508, title V, §§ 5121, 5130(a)(1), Nov. 5, 1990, 104 Stat. 1388–283, 1388–289; Pub. L. 103–296, title I, § 107(a)(4), title III, § 321(a)(12), Aug. 15, 1994, 108 Stat. 1478, 1536; Pub. L. 106–553, § 1(a)(2) [title VI, § 635(c)(2)(1), (2)], Dec. 21, 2000, 114 Stat. 2762, 2762A–117; Pub. L. 106–554, § 1(a)(4) [div. A, § 213(a)(6)], Dec. 21, 2000, 114 Stat. 2763, 2763A–180; Pub. L. 108–203, title II, § 209(a), Mar. 2, 2004, 118 Stat. 513; Pub. L. 114–74, title VIII, § 813(a)(1), (b)(1), Nov. 2, 2015, 129 Stat. 602, 603.) Editorial Notes REFERENCES IN TEXT Subchapter E of chapter 1 and subchapters A and E of chapter 9 of the Internal Revenue Code of 1939, referred to in subsec. (a)(1), were comprised of sections 480–482, 1400–1432, and 1630–1636, respectively, and were repealed (subject to certain exceptions) by section 7851(a)(1)(A), (3) of the Internal Revenue Code of 1954, Title 26. The Internal Revenue Code of 1954 was redesignated the In- ternal Revenue Code of 1986 by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of Title 26, Internal Revenue Code. See also section 7852(b) of Title 26 for provision that references in any other law to a provision of the 1939 Code, unless ex- pressly incompatible with the intent thereof, shall be deemed a reference to the corresponding provision of the 1986 Code. For provision deeming a reference in other laws to a provision of the 1939 Code as a reference to the cor- responding provisions of the 1986 Code, see section 7852(b) of the 1986 Code. For table of comparisons of the 1939 Code to the 1986 Code, see table preceding section 1 of Title 26, Internal Revenue Code. The Internal Rev- enue Code of 1986 is classified generally to Title 26. Chapters 2 and 21 and subtitle F of the Internal Rev- enue Code of 1954, referred to in subsec. (a)(1), were re- designated chapters 2 and 21 and subtitle F of the Inter- nal Revenue Code of 1986, and are classified to sections 1401 et seq., 3101 et seq., and 6001 et seq., respectively, of Title 26. Section 1383a(b) of this title, referred to in subsec. (d), was redesignated section 1383a(c) of this title and amended by Pub. L. 108–203, title II, § 209(c), Mar. 2, 2004, 118 Stat. 515. Section 902 of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989, referred to in subsec. (e)(1)(A), is section 902 of Pub. L. 100–204, which is set out as a note under section 1255a of Title 8, Aliens and Nationality. Section 202 of the Immigration Reform and Control Act of 1986, referred to in subsec. (e)(1)(B)(i), is section 202 of Pub. L. 99–603, which is set out as a note under section 1255a of Title 8. AMENDMENTS 2015—Subsec. (a). Pub. L. 114–74, § 813(b)(1), inserted before period at end of concluding provisions ‘‘, except that in the case of a person who receives a fee or other income for services performed in connection with any determination with respect to benefits under this sub- chapter (including a claimant representative, trans- lator, or current or former employee of the Social Se- Page 1946 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 408 curity Administration), or who is a physician or other health care provider who submits, or causes the sub- mission of, medical or other evidence in connection with any such determination, such person shall be guilty of a felony and upon conviction thereof shall be fined under title 18, or imprisoned for not more than ten years, or both’’. Subsec. (a)(9). Pub. L. 114–74, § 813(a)(1), added par. (9). 2004—Subsec. (b). Pub. L. 108–203, § 209(a)(2), added subsec. (b). Former subsec. (b) redesignated (c). Subsec. (c). Pub. L. 108–203, § 209(a)(1), (3), redesig- nated subsec. (b) as (c) and struck out at end: ‘‘In the case of any violation described in the preceding sen- tence, including a first such violation, if the court de- termines that such violation includes a willful misuse of funds by such person or entity, the court may also require that full or partial restitution of such funds be made to the individual for whom such person or entity was the certified payee.’’ Former subsec. (c) redesig- nated (d). Subsecs. (d), (e). Pub. L. 108–203, § 209(a)(1), redesig- nated subsecs. (c) and (d) as (d) and (e), respectively. 2000—Subsec. (a)(8) to (10). Pub. L. 106–553, which in- serted ‘‘or’’ at end of par. (8) and added pars. (9) and (10), was repealed by Pub. L. 106–554, effective as if in- cluded in Pub. L. 106–553 on Dec. 21, 2000. Pars. (9) and (10) read as follows: ‘‘(9) except as provided in section 1320b–23(d) of this title, knowingly and willfully displays or sells to the general public (as defined in section 1320b–23(g) of this title) any individual’s social security number, or any identifiable derivative of such number, without the af- firmatively expressed consent (as defined in section 1320b–23(c) of this title), electronically or in writing, of such individual; or ‘‘(10) obtains any individual’s social security number, or any identifiable derivative of such number, for pur- poses of locating or identifying an individual with the intent to physically injure, harm, or use the identity of the individual for illegal purposes;’’. 1994—Subsec. (a)(6), (7). Pub. L. 103–296, § 107(a)(4), substituted ‘‘Commissioner of Social Security’’ for ‘‘Secretary’’ wherever appearing and ‘‘the Commis- sioner’s authority’’ for ‘‘his authority’’ in par. (7)(A). Subsec. (c). Pub. L. 103–296, § 321(a)(12), substituted ‘‘subsection (a)(7)’’ for ‘‘subsection (g)’’. Pub. L. 103–296, § 107(a)(4), substituted ‘‘Commissioner of Social Security’’ for ‘‘Secretary’’. Subsec. (d)(2)(A). Pub. L. 103–296, § 107(a)(4), sub- stituted ‘‘Commissioner of Social Security’’ for ‘‘Sec- retary’’. 1990—Pub. L. 101–508, § 5121, inserted ‘‘(a)’’ before ‘‘Whoever—’’, redesignated former subsecs. (a) to (h) as pars. (1) to (8), respectively, of subsec. (a), in pars. (1) and (7) redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, inserted ‘‘(b)’’ before ‘‘Any per- son or other entity who is convicted’’, inserted ‘‘(c)’’ before ‘‘Any individual or entity convicted of a felony’’, and added subsec. (d). Pub. L. 101–508, § 5130(a)(1), in the last undesignated paragraph substituted ‘‘section 405(c)(2) of this title’’ for ‘‘section 605(c)(2) of this title’’. 1988—Pub. L. 100–690 substituted ‘‘under title 18’’ for ‘‘not more than $5,000’’ in first undesignated par., sub- stituted ‘‘under title 18’’ for ‘‘not more than $25,000’’ in second undesignated par., and inserted provisions at end defining for purposes of subsec. (g) ‘‘social security number’’ and ‘‘social security account number’’. 1984—Pub. L. 98–460 inserted provisions imposing a penalty of $25,000 or imprisonment for not more than five years, or both, on any person or other entity con- victed for a second or subsequent violation of this sec- tion, if such violation is committed by such person or entity in his role as, or in applying to become, a cer- tified payee under section 405(j) of this title, and also granting the court discretion, in any case, including a first offense, involving a willful misuse of funds, to re- quire full or partial restitution, and prohibiting the certification of any individual or entity convicted of a felony under this section or under section 1383a(b) of this title. Subsecs. (f) to (h). Pub. L. 98–369 realigned margins of subsecs. (f) to (h). 1981—Pub. L. 97–123 substituted provisions making violation of section a felony for provisions making it a misdemeanor, increased the punishment from one to five years and penalty from $1,000 to $5,000, and in sub- sec. (g), in opening paragraph, substituted ‘‘or for the purpose of obtaining anything of value from any per- son, or for any other purpose’’ for ‘‘or for any other purpose’’, and added par. (3). 1976—Subsec. (g). Pub. L. 94–455, § 1211(a), inserted ‘‘, or for any other purpose’’ after ‘‘entitled’’ in provi- sions preceding cl. (1). Subsec. (h). Pub. L. 94–455, § 1211(d)(1), added subsec. (h). 1972—Subsecs. (f), (g). Pub. L. 92–603 added subsecs. (f) and (g). 1960—Subsec. (a)(3). Pub. L. 86–778 substituted ‘‘sec- tion 403(f) of this title’’ for ‘‘section 403(e) of this title’’. 1958—Pub. L. 85–840 amended section generally, by, among other changes, inserting references to the Inter- nal Revenue Code of 1954, and making penalty provi- sions applicable to cases (1) where false statements or representations as to whether wages were paid or re- ceived for employment, or whether net earnings from self-employment were derived, or whether a person en- titled to benefits under this subchapter had earnings in or for a particular period, or as to the amount thereof, are made for the purpose of obtaining or increasing benefits; (2) where false statements or representations are made in any application for disability determina- tion; (3) where a person intentionally conceals or fails to disclose knowledge of any event affecting his or an- other’s initial or continued right to payment, and (4) where a person converts a payment that he received for the use and benefit of another. 1954—Act Sept. 1, 1954, made it clear that the penalty provisions of the section extend to cases of false state- ments or representations as to the amount of net earn- ings from self-employment derived or the period during which derived. 1950—Act Aug. 28, 1950, substituted ‘‘subchapter E of chapter 1, or subchapter A or E of chapter 9 of the In- ternal Revenue Code of 1939’’ for ‘‘the Federal Insur- ance Contributions Act’’. 1939—Act Aug. 10, 1939, amended section generally, in- corporating provisions of section 409 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–203, title II, § 209(d), Mar. 2, 2004, 118 Stat. 516, provided that: ‘‘The amendments made by sub- sections (a), (b), and (c) [amending this section and sec- tions 1011 and 1383a of this title] shall apply with re- spect to violations occurring on or after the date of en- actment of this Act [Mar. 2, 2004].’’ EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 106–554, § 1(a)(4) [div. A, § 213(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–180, provided that: ‘‘The amend- ments made by this section [amending this section, section 10601 of this title, and section 2709 of Title 22, Foreign Relations and Intercourse, repealing section 1320b–23 of this title, amending provisions set out as notes under sections 4001 and 4013 of Title 18, Crimes and Criminal Procedure, and section 524 of Title 28, Ju- diciary and Judicial Procedure, and repealing provi- sions set out as notes under this section and sections 1305 and 1320b–23 of this title] shall take effect as if in- cluded in H.R. 4942 of the 106th Congress [Pub. L. 106–553] on the date of its enactment [Dec. 21, 2000].’’ Pub. L. 106–553, § 1(a)(2) [title VI, § 635(c)(2)(3)], Dec. 21, 2000, 114 Stat. 2762, 2762A–117, which provided that the amendments made by § 1(a)(2) [title VI, § 635(c)] of Pub. L. 106–553, enacting section 1320b–23 of this title and amending this section, would apply with respect to vio- lations occurring on and after the date that is 2 years after Dec. 21, 2000, was repealed by Pub. L. 106–554, Page 1947 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 409 § 1(a)(4) [div. A, § 213(a)(6)], Dec. 21, 2000, 114 Stat. 2763, 2763A–180, see above. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by section 107(a)(4) of Pub. L. 103–296 ef- fective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Amendment by section 5130(a)(1) of Pub. L. 101–508 ef- fective as if included in the enactment of Pub. L. 100–690, § 7088, see section 5130(b) of Pub. L. 101–508, set out as a note under section 1402 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1984 AMENDMENTS Amendment by Pub. L. 98–460 effective Oct. 9, 1984, and applicable with respect to violations occurring on or after such date, see section 16(d) of Pub. L. 98–460, set out as a note under section 405 of this title. Amendment by Pub. L. 98–369 effective July 18, 1984, but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–123, § 4(c), Dec. 29, 1981, 95 Stat. 1664, pro- vided that: ‘‘The amendments made by subsections (a) and (b) [amending this section] shall be effective with respect to violations committed after the date of the enactment of this Act [Dec. 29, 1981].’’ EFFECTIVE DATE OF 1972 AMENDMENT Pub. L. 92–603, title I, § 130(b), Oct. 30, 1972, 86 Stat. 1360, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply with re- spect to information furnished to the Secretary after the date of the enactment of this Act [Oct. 30, 1972].’’ EFFECTIVE DATE OF 1960 AMENDMENT Amendment by Pub. L. 86–778 effective in the manner provided in section 211(p), (q) of Pub. L. 86–778, section 211(s) of Pub. L. 86–778, set out as a note under section 403 of this title. EFFECTIVE DATE OF 1939 AMENDMENT Act Aug. 10, 1939, ch. 666, title II, § 201, 53 Stat. 1362, provided that the amendment made by that section is effective Jan. 1, 1940. § 409. ‘‘Wages’’ defined (a) In general For the purposes of this subchapter, the term ‘‘wages’’ means remuneration paid prior to 1951 which was wages for the purposes of this sub- chapter under the law applicable to the payment of such remuneration, and remuneration paid after 1950 for employment, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that, in the case of remuneration paid after 1950, such term shall not include— (1)(A) That part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to $3,600 with respect to employment has been paid to an individual during any calendar year prior to 1955, is paid to such individual during such calendar year; (B) That part of remuneration which, after remuneration (other than remuneration re- ferred to in the succeeding subsections of this section) equal to $4,200 with respect to em- ployment has been paid to an individual dur- ing any calendar year after 1954 and prior to 1959, is paid to such individual during such cal- endar year; (C) That part of remuneration which, after remuneration (other than remuneration re- ferred to in the succeeding subsections of this section) equal to $4,800 with respect to em- ployment has been paid to an individual dur- ing any calendar year after 1958 and prior to 1966, is paid to such individual during such cal- endar year; (D) That part of remuneration which, after remuneration (other than remuneration re- ferred to in the succeeding subsections of this section) equal to $6,600 with respect to em- ployment has been paid to an individual dur- ing any calendar year after 1965 and prior to 1968, is paid to such individual during such cal- endar year; (E) That part of remuneration which, after remuneration (other than remuneration re- ferred to in the succeeding subsections of this section) equal to $7,800 with respect to em- ployment has been paid to an individual dur- ing any calendar year after 1967 and prior to 1972, is paid to such individual during such cal- endar year; (F) That part of remuneration which, after remuneration (other than remuneration re- ferred to in the succeeding subsections of this section) equal to $9,000 with respect to em- ployment has been paid to an individual dur- ing any calendar year after 1971 and prior to 1973, is paid to such individual during any such calendar year; (G) That part of remuneration which, after remuneration (other than remuneration re- ferred to in the succeeding subsections of this section) equal to $10,800 with respect to em- ployment has been paid to an individual dur- ing any calendar year after 1972 and prior to 1974, is paid to such individual during such cal- endar year; (H) That part of remuneration which, after remuneration (other than remuneration re- ferred to in the succeeding subsections of this section) equal to $13,200 with respect to em- ployment has been paid to an individual dur- ing any calendar year after 1973 and prior to 1975, is paid to such individual during such cal- endar year; (I) That part of remuneration which, after remuneration (other than remuneration re- ferred to in the succeeding subsections of this section) equal to the contribution and benefit base (determined under section 430 of this title) with respect to employment has been paid to an individual during any calendar year after 1974 with respect to which such contribu- tion and benefit base is effective, is paid to such individual during such calendar year; (2) The amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) made to, or on behalf of, an employee or any of his dependents under a plan or system established by an employer which makes provision for his employees gen- erally (or for his employees generally and