80 STAT.]
PUBLIC LAW 89-368-MAR. 15, 1966 " (D) LIMITATION.—In the case of employees whose estimated wages are at levels at which the amounts deducted and withheld under this chapter generally are insufficient (taking into account a reasonable allowance for deductions and exemptions) to offset the liability for tax under chapter 1 with respect to the wages from which such amounts are deducted and withheld, the Secretary or his delegate may by regulation reduce the withholding allowances to which such employees would, but for this subparagraph, be entitled under this subsection. " (E) TREATMENT or ALLOWANCES.—For purposes of this title, lany withholding allowance under this subsection shall be treated as if it were denominated a withholding exemption.
"(4)
61
26 USC 1-1388.
AUTHORITY TO PRESCRIBE TABLES.—The Secretary or his
delegate may prescribe tables pursuant to which employees shall determine the number of withholding allowances to which they are entitled under this subsection (in lieu of making such determination under paragraphs (1) and (3)). Such tables shall be consistent with the provisions of paragraphs (1) and (3), except that such tables— " (A) shall provide for entitlement to withholding allowances based on reasonable wage and itemized deduction brackets, and " (B) may increase or decrease the number of withholding allowances to which employees in the various wage and itemized deduction brackets would, but for this subparagraph, be entitled to^ the end that, to the extent practicable, amounts deducted and withheld under this chapter (i) generally do not exceed the liability for tax under chapter 1 with respect to the wages from which such amounts are deducted and withheld, and (ii) generally are sufficient to offset such liability for tax." (3) STATUS DETERMINATION DATE.—The last sentence of section 3402(f)(3)(B) is amended to read as follows: "For purposes of this subparagraph, the term 'status detennination date' means January 1, May 1, July 1, and October 1 of each year." (4) CIVIL PENALTY.—
(A) Subchapter B of chapter 68 (relating to assessable ^^^^^^^ ^^^'" penalties) is amended by adding at the end thereof the following new section: "SEC. 6682. FALSE INFORMATION WITH RESPECT TO WITHHOLDING ALLOWANCES BASED ON ITEMIZED DEDUCTIONS. " (a) CIVIL PENALTY.—In addition to any criminal penalty provided by law, if any individual in claiming a withholding allowance under section 3402(f)(1)(F) states (1) as the amount of the wages Ante, p. 59. (within the meaning of chapter 24) shown on his return for any taxable year an amount less than such wages actually shown, or (2) as the amount of the itemized deductions referred to in section 3402(m) shown on the return for any taxable year an amount greater than such deductions actually shown, he shall pay a penalty of $50 for such statement, unless (1) such statement did not result in a decrease in the amounts deducted and withheld under chapter 24, or (2) the taxes imposed with respect to the individual under subtitle A tor the sue- ^^ ^^*^ 1-1563. ceeding taxable year do not exceed the sum of (A) the credits against such taxes allowed by part IV of subchapter A of chapter 1, and 26 USC 31-48. (B) the payments of estimated tax which are considered payments on account of such taxes. "(b)
DEFICIENCY PROCEDURES NOT TO APPLY.—Subchapter B of
chapter 63 (relating to deficiency procedures for income, estate, and 65-300 0-67—7
26 USC 62116216.
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