96 S T A T. 608
P U B L I C L A W 9 7 - 2 4 8 — S E P T. 3, 1982 "(A) F A I L U R E TO FURNISH N U M B E R. — I n the case of any
failure described in subparagraph (A) of paragraph (1), paragraph (1) shall apply to any backup withholding payment made during the period during which the tax p a y e r identification n u m b e r has not been furnished. "(B) NOTIFICATION OF INCORRECT N U M B E R. — I n any
case
where the r e is a notification described in subparagraph (B) of paragraph (1), paragraph (1) shall apply to any backup withholding payment made— "(i) after the close of the 15th day after the d a y on which the payor was so notified, and "(ii) before the payee furnishes a n other tax p a y e r identification n u m b e r. "(C) 15-DAY GRACE PERIODS.— "(i) A F T E R CORRECTION.—Unless the payor other w i s e
elects, paragraph (1) shall also apply to any backup withholding payment made after the close of the period described in subparagraph (A) or (B) (as the case may be) and before the 16th day after the close of such period. "(ii) A F T E R
NOTIFICATION.—If
the
payor
so
elects,
paragraph (1) shall also apply to any b a c k u p withholding payment made during the 15-day period described in clause (i) of subparagraph (B). "(3) B A C K U P WITHHOLDING PAYMENTS.—
Ante, p. 600. Ante, p. 592.
"(A) IN GENERAL.—For purposes of this subsection, the term 'backup withholding payment ' means any payment of a kind, and to a payee, required to be shown on a r e t u r n required under— "(i) section 6041(a) or (b) (relating to certain information at source), "(ii) section 6041A(a) (relating to r e t u r n s regarding payments to nonemployees), "(iii) section 6042(a) (relating to payments of dividends), "(iv) section 6044 (relating to r e t u r n s regarding patronage dividends) b u t only to the extent of payments of money. "(v) section 6045 (relating to r e t u r n s of brokers), "(vi) section 6049(a) (relating to payments of interest), or "(vii) section 6050A (relating to reporting requirements of certain fishing boat operators), b u t only to the extent of payments of the proceeds of the catch. "(B) SPECIAL RULE.—For purposes of this subsection, the determination of w h e the r any payment is of a kind required to be shown on a r e t u r n described in subparagraph (A) shall be made without regard to any minimum a m o u n t which must be paid before a r e t u r n is required. "(4) P A Y M E N T S MUST AGGREGATE $ 6 0 0 BEFORE WITHHOLDING REQUIRED FROM PAYMENTS DESCRIBED IN SECTION 6041(a) OR
Ante, p. 601.
6041 A.—In the case of any payment which is of a kind required to be shown on a r e t u r n required under section 6041(a) or 6041A(a) and which is made during any calendar year, no a m o u n t shall be deducted and withheld with respect to such payment unless—
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