PUBLIC LAW 98-67 —AUG. 5, 1983 97 STAT. 373 "(A) the aggregate amount of such payment and all previous payments described in such sections by the payor to the payee during such calendar year equals or exceeds $600, "(B) the payor was required under section 6041(a) or 6041A(a) to file a return for the preceding calendar year with respect to payments to the payee, or "(C) during the preceding calendar year, the payor made reportable payments to the payee with respect to which amounts were required to be deducted and withheld under subsection (a). "(7) EXCEPTION FOR CERTAIN WINDOW PAYMENTS OF INTEREST, ETC.— For purposes of subparagraphs (C) and (D) of subsection (a)(1), the term 'reportable interest or dividend payment' shall not include any payment— "(A) in redemption of a coupon on a bearer instrument or in redemption of a United States savings bond, or "(B) to the extent provided in regulations, of interest on instruments similar to those described in subparagraph (A). The preceding sentence shall not apply for purposes of deter- mining whether there is payee underreporting described in subsection (c). "(c) NOTIFIED PAYEE UNDERREPORTING WITH RESPECT TO INTEREST AND DIVIDENDS.— "(1) NOTIFIED PAYEE UNDERREPORTING. —I f — "(A) the Secretary determines with respect to any payee that there has been payee underreporting, "(B) at least 4 notices have been mailed by the Secretary to the payee (over a period of at least 120 days) with respect to the underreporting, and "(C) in the case of any payee who has filed a return for the taxable year, any deficiency of tax attributable to such failure has been assessed, the Secretary may notify payors of reportable interest or divi- dend payments with respect to such payee of the requirement to deduct and withhold under subsection (a)(1)(C) (but not the rea- sons therefor). "(2) PAYEE UNDERREPORTING DEFINED. —For purposes of this section, there has been payee underreporting ijf for any taxable year the Secretary determines that— "(A) the payee failed to include in his return of tax under chapter 1 for such year any portion of a reportable interest or dividend payment required to be shown on such return, or "(B) the payee may be required to file a return for such year and to include a reportable interest or dividend pay- ment in such return, but failed to file such return. "(3) DETERMINATION BY SECRETARY TO STOP (OR NOT TO START) WITHHOLDING. — "(A) IN GENERAL. — If the Secretary determines that— "(i) there was no payee underreporting, "(ii) any payee underreporting has been corrected (and any tax, penalty, or interest with respect to the payee underreporting has been paid), (iii) withholding under subsection (a)(l)(C) has caused (or would cause) undue hardship to the payee 96 Stat. 601. 26 USC 6041A.
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