96 STAT. 576
PUBLIC LAW 97-248—SEPT. 3, 1982
TITLE III—TAXPAYER COMPLIANCE Subtitle A—Withholding on Interest and Dividends SEC. 301. WITHHOLDING ON INTEREST AND DIVIDENDS.
Chapter 24 (relating to collection of income tax at source on wages) is amended by adding at the end thereof the following new subchapter: "Subchapter B—Withholding From Interest and Dividends "Sec. 3451. Income tax collected at source on interest, dividends, and patronage dividends. "Sec. 3452. Exemptions from withholding. "Sec. 3453. Payor defined. "Sec. 3454. Definitions of interest, dividend, and patronage dividend. "Sec. 3455. Other definitions and special rules. "Sec. 3456. Administrative provisions. 26 USC 3451.
«SEC. 3451. INCOME TAX COLLECTED AT SOURCE ON INTEREST, DIVIDENDS. AND PATRONAGE DIVIDENDS. "(a) REQUIREMENT OP WITHHOLDING.—Except as otherwise pro-
vided in this subchapter, the payor of any interest, dividend, or patronage dividend shall withhold a tax equal to 10 percent of the amount of the payment. "(b) SPECIAL RULES.— "(1) TIME OF WITHHOLDING.—Except as otherwise provided in
this subchapter, for purposes of this subchapter— "(A) any payment of interest, dividend, or patronage dividend shall be treated as made, and "(B) the tax imposed by this section shall be withheld, at the time such interest, dividend, or patronage dividend is paid or credited. "(2) PAYEE UNKNOWN.—If a payor is unable to determine the
person to whom any interest, dividend, or patronage dividend is payable or creditable, the tax under this section shall be withheld at the time withholding would be required under paragraph (1) if the payee were known and were an individual. "(3) AMOUNT OF DIVIDEND, ETC., UNKNOWN.—
"(A) IN GENERAL.—If the payor is unable to determine the portion of a distribution which is a dividend, the tax under this section shall be computed on the gross amount of the distribution. To the extent provided in regulations, a similar rule shall apply in the case of interest and patronage dividends. "(B) DISTRIBUTIONS WHICH ARE NOT DIVIDENDS.—To the
extent provided in regulations, this section shall not apply to the extent that the portion of a distribution which is not a dividend may reasonably be estimated. "(4) WITHHOLDING FROM ALTERNATIVE SOURCE.—The Secretary
shall prescribe regulations setting forth the circumstances under which the tax imposed by this section may be paid from
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