83 STAT. ]
PUBLIC LAW 91-172-DEC. 30, 1969
707
(1) by redesignating ]){iragrapli (2)(C) as paragraph (2)(D), and (2) by amending that portion of sneli section as precedes paragraph (2)(D) (as redesignated) to read as follows: " (m) AYlTHHOLDIXG ALLOWANCES B A S E D ON ITEMIZED D E D I C T'lONS.— (1) GENERAL RULE.—An eni]iloyee shall be entitled to with-
holding allowances nnder this subsection with respect to a payment of wages in a number equal to the number deteiinined by dividing by $750 the excess of— " (A) his estimated itemized deductions, over " (B) an amount equal to 15 percent of his estimated wages. For purposes of this subsection, a fractional number shall not be taken into account unless it amounts to one-half or ujore, in which case it shall be increased to 1. "(2) DEEiNrnoNS.—P\)r purposes of this subsection— " (A) ESTIMATED ITE^ITZED DEDICTIOXS.—The term 'estimated itemized deductions' means the aggregate amount which he reasonably expects Avill be allowable as deductions under cha]iter 1 (other than the deductions referred to in sections 141 and 151 and other than the deductions required to be taken into account in determining adjusted gross income under section 62) for the estimation year. Tn no case shall such aggregate amount be greater than the sum of (i) the amount of such deductions (or the amount of the standard deduction) reflected in his return of tax under subtitle A for the taxable year preceding the estimation year, and (ii) the amount of his determinable additional deductions for the estimation year. " (B) EsrnrATED WAGES.—The term 'estimated wages' means the aggregate amount which he reasonably expects will constitute wages for the estimation year. " (C) PETEr.AriNAHLE ADDTnoNAL DEurcTioNS.—The term 'determinable additional deductions' means those estimated itemized deductions which (i) are in excess of the deductions referred to in subparagraph (A) (or the standard deduction) reflected on his return of tax under subtitle A for the taxable year preceding the estimation year, and (ii) are demonstrably attributable to an identifiable event during the estimation year or the preceding taxable year which can reasonably be exl)ected to cause an increase in the amount of such deductions on the return of tax under subtitle A for the estimation year." (f) EMPLOYEES INCURRING No INCO:ME TAX LiAiiiLiTY.— (1) I N GEXEP.AL.—Section o402 (relating to income tax collected at source) is amended by adding at the end thereof the following new subsection: " (n) EMPLOYEES IX ( rinnNG Xo Ixro:srE TAX LTAHILITY.—Notwithstanding any other provision of this section, an employer shall not be required to deduct and withhold any tax under this chapter upon a payment of wages to an employee if there is in effect with respect to such Dayment a withholding exemption certificate (in such form and containinir such other information as the Secretary or his delegate may prescribe) furnished to the employer by the employee certifying that the employee— "(1) incurred no liability for income tax imposed under subtitle A for his preceding taxable year, and "(2) anticipates that he will incur no liability for income tax imposed under subtitle A for his current taxable year.
eie^^eis.^' "^^' 26 USC i4i, isi. ^6 USC 62.
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26 USC 3402.
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