PUBLIC LAW 96-223—APR. 2, 1980
94 STAT. 245
"(i) on the basis of the certification furnished to the purchaser under section 6050C, unless the purchaser ^^^> P- 251. has reason to believe that any information contained in such certification is not correct, or "(ii) if clause (i) does not apply, under regulations prescribed by the Secretary. "(B) N E T INCOME LIMITATION NOT TO BE APPLIED.—For
purposes of determining the amount to be withheld under paragraph (1), subsection (b) of section 4988 shall not apply. "(3) ADJUSTMENTS FOR WITHHOLDING ERRORS.—
"(A) IN GENERAL.—To the extent provided in regulations prescribed by the Secretary, withholding errors made by a purchaser with respect to the crude oil of a producer removed during any calendar year shall be corrected by that purchaser by making proper adjustments in the amounts withheld from subsequent payments to such producer for crude oil removed during the same calendar year. "(B) WITHHOLDING ERROR.—For purposes of subparagraph
(A), there is a withholding error if the amount withheld by the purchaser under paragraph (1) with respect to any payment for any crude oil exceeds (or is less than) the tax imposed by section 4986 with respect to such oil (determined without regard to section 4988(b)). "(C) LIMITATION ON AMOUNT OF ADJUSTMENTS.—No adjust-
ment shall be required under subparagraph (A) with respect to any payment for any crude oil to the extent that such adjustment would result in amounts withheld from such payment in excess of the windfall profit from such crude oil. "(D) VOLUNTARY WITHHOLDING.—The Secretary may by
regulations provide for withholding under this subsection of additional amounts from payments by any purchaser to any producer if the purchaser and producer agree to such withholding. For purposes of this title, any amount withheld pursuant to such an agreement shall be treated as an amount required to be withheld under paragraph (1). "(4) PRODUCER TREATED AS HAVING PAID WITHHELD AMOUNT.—
"(A) IN GENERAL.—The producer of any domestic crude oil shall be treated as having paid any amount withheld with respect to such oil under this subsection. "(B) TIME PAYMENT DEEMED MADE.—The producer shall be treated as having made any payment described in subparagraph (A) on the last day of the first February after the calendar year in which the oil is removed from the premises. "(5) PRODUCER REQUIRED TO FILE RETURN ONLY TO EXTENT PROVIDED IN REGULATIONS.—Except to the extent provided in
regulations, the producer of crude oil with respect to which withholding is required under paragraph (1) shall not be required to file a return of the tax imposed by section 4986 with respect to such oil. "(6) PURCHASER'S QUARTERLY RETURNS TO CONTAIN SUMMARY.—
The purchaser's return of tax under this chapter for any calendar quarter of any calendar year shall contain such information (with respect to such quarter and the prior quarters of such calendar year) as may be necessary to facilitate the coordination of the withholding of tax by such purchaser with respect to each producer with the determination of the tax imposed by section 4986 with respect to such producer.
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