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Internal Revenue Code, § 3401. Definitions

I.R.C. § 3401(a) Wages
For purposes of this chapter, the term “wages” means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that such term shall not include remuneration paid—
I.R.C. § 3401(a)(1)
for active service performed in a month for which such employee is entitled to the benefits of section 112 (relating to certain combat zone compensation of members of the Armed Forces of the United States) to the extent remuneration for such service is excludable from gross income under such section,
I.R.C. § 3401(a)(2)
for agricultural labor (as defined in section 3121(g)) unless the remuneration paid for such labor is wages (as defined in section 3121(a)),
I.R.C. § 3401(a)(3)
for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority,
I.R.C. § 3401(a)(4)
for service not in the course of the employer's trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is $50 or more and such service is performed by an individual who is regularly employed by such employer to perform such service. For purposes of this paragraph, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if—
I.R.C. § 3401(a)(4)(A)
on each of some 24 days during such quarter such individual performs for such employer for some portion of the day service not in the course of the employer's trade or business, or
I.R.C. § 3401(a)(4)(B)
such individual was regularly employed (as determined under subparagraph (A)) by such employer in the performance of such service during the preceding calendar quarter,
I.R.C. § 3401(a)(5)
for services by a citizen or resident of the United States for a foreign government or an international organization,
I.R.C. § 3401(a)(6)
for such services, performed by a nonresident alien individual, as may be designated by regulations prescribed by the Secretary,
I.R.C. § 3401(a)(7)
[Repealed. Pub. L. 89-809, title I, 103(k), Nov. 13, 1966, 80 Stat. 1554]
I.R.C. § 3401(a)(8)
I.R.C. § 3401(a)(8)(A)
for services for an employer (other than the United States or any agency thereof)—
I.R.C. § 3401(a)(8)(A)(i)
performed by a citizen of the United States if, at the time of the payment of such remuneration, it is reasonable to believe that such remuneration will be excluded from gross income under section 911, or
I.R.C. § 3401(a)(8)(A)(ii)
performed in a foreign country or in a possession of the United States by such a citizen if, at the time of the payment of such remuneration, the employer is required by the law of any foreign country or possession of the United States to withhold income tax upon such remuneration,
I.R.C. § 3401(a)(8)(B)
for services for an employer (other than the United States or any agency thereof) performed by a citizen of the United States within a possession of the United States (other than Puerto Rico), if it is reasonable to believe that at least 80 percent of the remuneration to be paid to the employee by such employer during the calendar year will be for such services,
I.R.C. § 3401(a)(8)(C)
for services for an employer (other than the United States or any agency thereof) performed by a citizen of the United States within Puerto Rico, if it is reasonable to believe that during the entire calendar year the employee will be a bona fide resident of Puerto Rico, or
I.R.C. § 3401(a)(8)(D)
for services for the United States (or any agency thereof) performed by a citizen of the United States within a possession of the United States to the extent the United States (or such agency) withholds taxes on such remuneration pursuant to an agreement with such possession,
I.R.C. § 3401(a)(9)
for services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order,
I.R.C. § 3401(a)(10)
I.R.C. § 3401(a)(10)(A)
for services performed by an individual under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution, or
I.R.C. § 3401(a)(10)(B)
for services performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate consumers, under an arrangement under which the newspapers or magazines are to be sold by him at a fixed price, his compensation being based on the retention of the excess of such price over the amount at which the newspapers or magazines are charged to him, whether or not he is guaranteed a minimum amount of compensation for such services, or is entitled to be credited with the unsold newspapers or magazines turned back,
I.R.C. § 3401(a)(11)
for services not in the course of the employer's trade or business, to the extent paid in any medium other than cash,
I.R.C. § 3401(a)(12)
to, or on behalf of, an employee or his beneficiary—
I.R.C. § 3401(a)(12)(A)
from or to a trust described in section 401(a) which is exempt from tax under section 501(a) at the time of such payment unless such payment is made to an employee of the trust as remuneration for services rendered as such employee and not as a beneficiary of the trust,
I.R.C. § 3401(a)(12)(B)
under or to an annuity plan which, at the time of such payment, is a plan described in section 403(a),
I.R.C. § 3401(a)(12)(C)
for a payment described in section 402(h)(1) and (2) if, at the time of such payment, it is reasonable to believe that the employee will be entitled to an exclusion under such section for payment,
I.R.C. § 3401(a)(12)(D)
under an arrangement to which section 408(p) applies, or
I.R.C. § 3401(a)(12)(E)
under or to an eligible deferred compensation plan which, at the time of such payment, is a plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A),
I.R.C. § 3401(a)(13)
pursuant to any provision of law other than section 5(c) or 6(1) of the Peace Corps Act, for service performed as a volunteer or volunteer leader within the meaning of such Act,
I.R.C. § 3401(a)(14)
in the form of group-term life insurance on the life of an employee,
I.R.C. § 3401(a)(15)
to or on behalf of an employee if (and to the extent that) at the time of the payment of such remuneration it is reasonable to believe that a corresponding deduction is allowable under section 217 (determined without regard to section 274(n)),
I.R.C. § 3401(a)(16)
I.R.C. § 3401(a)(16)(A)
as tips in any medium other than cash,
I.R.C. § 3401(a)(16)(B)
as cash tips to an employee in any calendar month in the course of his employment by an employer unless the amount of such cash tips is $20 or more,
I.R.C. § 3401(a)(17)
for service described in section 3121(b)(20),
I.R.C. § 3401(a)(18)
for any payment made, or benefit furnished, to or for the benefit of an employee if at the time of such payment or such furnishing it is reasonable to believe that the employee will be able to exclude such payment or benefit from income under section 127, 129, 134(b)(4), or 134(b)(5),
I.R.C. § 3401(a)(19)
for any benefit provided to or on behalf of an employee if at the time such benefit is provided it is reasonable to believe that the employee will be able to exclude such benefit from income under section 74(c), 108(f)(4), 117, or 132,
I.R.C. § 3401(a)(20)
for any medical care reimbursement made to or for the benefit of an employee under a self-insured medical reimbursement plan (within the meaning of section 105(h)(6)),
I.R.C. § 3401(a)(21)
for any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(b),
I.R.C. § 3401(a)(22)
any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(d), or
I.R.C. § 3401(a)(23)
for any benefit or payment which is excludable from the gross income of the employee under section 139B(b).
The term “wages” includes any amount includible in gross income of an employee under section 409A and payment of such amount shall be treated as having been made in the taxable year in which the amount is so includible.
I.R.C. § 3401(b) Payroll Period
For purposes of this chapter, the term “payroll period" means a period for which a payment of wages is ordinarily made to the employee by his employer, and the term “miscellaneous payroll period” means a payroll period other than a daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll period.
I.R.C. § 3401(c) Employee
For purposes of this chapter, the term “employee” includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term “employee” also includes an officer of a corporation.
I.R.C. § 3401(d) Employer
For purposes of this chapter, the term “employer” means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that—
I.R.C. § 3401(d)(1)
if the person for whom the individual performs or performed the services does not have control of the payment of the wages for such services, the term “employer” (except for purposes of subsection (a)) means the person having control of the payment of such wages, and
I.R.C. § 3401(d)(2)
in the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term “employer” (except for purposes of subsection (a)) means such person.
I.R.C. § 3401(e)
[Repealed. Pub. L. 115-97, Sec. 11041(c)(2)(A), Dec. 22, 2017, 131 Stat. 2054.] For purposes of this chapter, the term “number of withholding exemptions claimed” means the number of withholding exemptions claimed in a withholding exemption certificate in effect under section 3402(f), or in effect under the corresponding section of prior law, except that if no such certificate is in effect, the number of withholding exemptions claimed shall be considered to be zero.
I.R.C. § 3401(f) Tips
For purposes of subsection (a), the term “wages” includes tips received by an employee in the course of his employment. Such wages shall be deemed to be paid at the time a written statement including such tips is furnished to the employer pursuant to section 6053(a) or (if no statement including such tips is so furnished) at the time received.
I.R.C. § 3401(g) Crew Leader Rules To Apply
Rules similar to the rules of section 3121(o) shall apply for purposes of this chapter.
I.R.C. § 3401(h) Differential Wage Payments To Active Duty Members Of The Uniformed Services
I.R.C. § 3401(h)(1) In General
For purposes of subsection (a), any differential wage payment shall be treated as a payment of wages by the employer to the employee.
I.R.C. § 3401(h)(2) Differential Wage Payment
For purposes of paragraph (1), the term “differential wage payment” means any payment which—
I.R.C. § 3401(h)(2)(A)
is made by an employer to an individual with respect to any period during which the individual is performing service in the uniformed services (as defined in chapter 43 of title 38, United States Code) while on active duty for a period of more than 30 days, and
I.R.C. § 3401(h)(2)(B)
represents all or a portion of the wages the individual would have received from the employer if the individual were performing service for the employer.
I.R.C. § 3401(i) Qualified Stock For Which An Election Is In Effect Under Section 83(i)
For purposes of subsection (a), qualified stock (as defined in section 83(i)) with respect to which an election is made under section 83(i) shall be treated as wages—
I.R.C. § 3401(i)(1)
received on the earliest date described in section 83(i)(1)(B), and
I.R.C. § 3401(i)(2)
in an amount equal to the amount included in income under section 83 for the taxable year which includes such date.
(Aug. 16, 1954, ch. 736, 68A Stat. 455; Aug. 9, 1955, ch. 681, 69 Stat. 616; Sept. 21, 1961, Pub. L. 87-256, Sec. 110(g)(1), 75 Stat. 537; Sept. 22, 1961, Pub. L. 87-293, title II, Sec. 201(c), 75 Stat. 625; Oct. 10, 1962, Pub. L. 87-792, Sec. 7(l), 76 Stat. 830; Feb. 26, 1964, Pub. L. 88-272, title II, Sec. 204(b), 213(c), 78 Stat. 36, 52; July 30, 1965, Pub. L. 89-97, title III, Sec. 313(d)(1), (2), 79 Stat. 383, 384; Nov. 13, 1966, Pub. L. 89-809, title I, Sec. 103(k), 80 Stat. 1554; Apr. 26, 1972, Pub. L. 92-279, Sec. 2, 86 Stat. 125; Sept. 2, 1974, Pub. L. 93-406, title II, Sec. 2002(g)(7), 88 Stat. 970; Oct. 4, 1976, Pub. L. 94-455, title XII, Sec. 1207(e)(1)(C), title XV, Sec. 1501(b)(7), title XIX, Sec. 1903(c), 1906(b)(13)(A), 90 Stat. 1707, 1736, 1810, 1834; Nov. 6, 1978, Pub. L. 95-600, title I, Sec. 164(b)(1), 92 Stat. 2813; Nov. 8, 1978, Pub. L. 95-615, Sec. 207(a), 92 Stat. 3108; Apr. 1, 1980, Pub. L. 96-222, title I, Sec. 103(a)(13)(A), 94 Stat. 213; Aug. 13, 1981, Pub. L. 97-34, title I, Sec. 112(b)(5), 124(e)(2)(A), title III, Sec. 311(h)(6), 95 Stat. 195, 200, 282; Jan. 12, 1983, Pub. L. 97-448, title I, Sec. 103(c)(12)(B), 96 Stat. 2377; July 18, 1984, Pub. L. 98-369, div. A, title IV, Sec. 491(d)(38), title V, Sec. 531(d)(4), 98 Stat. 851, 885; Oct. 22, 1986, Pub. L. 99-514, title I, Sec. 122(e)(4), title XII, Sec. 1272(c), 100 Stat. 2112, 2594; Nov. 10, 1988, Pub. L. 100-647, title I, Sec. 1001(g)(4)(B)(iii), 1011(f)(9), 1011B(a)(22)(D), (33), 102 Stat. 3352, 3463, 3486, 3488; Nov. 8, 1989, Pub. L. 101-140, title II, Sec. 203(a)(2), 103 Stat. 830; Dec. 19, 1989, Pub. L. 101-239, title VII, Sec. 7631(a), (b), 103 Stat. 2378; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11703(f)(1), 104 Stat. 1388-517; Mar. 20, 1996, Pub. L. 104-117, Sec. 1, 110 Stat. 827; Aug. 20, 1996, Pub. L. 104-188, 1421, 1704, 110 Stat. 1755; Aug. 21, 1996, Pub. L. 104-191, 301, 110 Stat. 1936; Pub. L. 105-206, title VI, Sec. 6023(14), (15), July 22, 1998, 112 Stat 685; Pub. L. 107-16, title VI, Sec. 641(a)(1)(D), June 7, 2001, 115 Stat. 38; Nov. 11, 2003, Pub. L. 108-121, title I, Sec. 106(b), 117 Stat. 1335; Dec. 8, 2003, Pub. L. 108-173, title XII, Sec. 1201, 117 Stat. 2066; Oct. 22, 2004, Pub. L. 108-357, title III, VIII, Sec. 320(b)(4), 885(b)(2), 118 Stat. 1418; Oct. 28, 2004, Pub. L. 108-375, Sec. 585(b)(2)(D), 118 Stat. 1811; Dec. 21, 2005, Pub. L. 109-135, title IV, Sec. 412(tt), 119 Stat. 2577; Pub. L. 110-245, Sec. 105(a), 115(c), June 17, 2008, 122 Stat. 1624; Pub. L. 115-97, title I, Sec. 11041(c)(2)(A), 13603(b)(1), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(217)(A)-(D), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Amendments to Chapter
1983--Pub. L. 98-67, title I, 102(a), 104(d)(4), Aug. 5, 1983, 97 Stat. 369, 380, added item 3406 and repealed amendments made by Pub. L. 97-248. See 1982 Amendment note below.
1982--Pub. L. 97-248, title III, 307(b)(4), 308(a), Sept. 3, 1982, 96 Stat. 590, 591, provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, the caption of chapter 24 is amended by striking out “ON WAGES”, items for subchapters A and B are added in analysis, and heading “Subchapter A--Withholding From Wages” is added. Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (301-308) of title III of Pub. L. 97-248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.
AMENDMENTS
2018--Subsec. (a). Pub. L. 115-141, Div. U, Sec. 401(a)(217)(A), pars. (1), (2), (3), (4)(B), (5), (6), (8)(A)(ii), (8)(B), (8)(D), (9), (10)(B), (11), (12)(A), (12)(B), (12)(C), (13), (14), and (15) of sec. (a) are each amended by substituting a comma for “; or”
Subsec. (a). Pub. L. 115-141, Div. U, Sec. 401(a)(217)(B), pars. (4)(A), (8)(A)(i), (8)(C), 20 (10)(A), (12)(D), and (22) of sec. (a) are each amended by substituting “, or” for “; or”.
Subsec. (a)(12)(E). Pub. L. 115-141, Div. U, Sec. 401(a)(217)(C), amended par. (12)(E) by substituting a comma for “, or”.
Subsec. (a). Pub. L. 115-141, Div. U, Sec. 401(a)(217)(D), pars. (16)(A), (16)(B), (17), (18), (19), (20), and (21) of section 3401(a) are each amended by substituting a comma for the semicolon.
2017--Subsec. (e). Pub. L. 115-97, Sec. 11041(c)(2)(A), struck subsec. (e). Before being struck, it read as follows:
“(e) Number of Withholding Exemptions Claimed.— For purposes of this chapter, the term “number of withholding exemptions claimed” means the number of withholding exemptions claimed in a withholding exemption certificate in effect under section 3402(f), or in effect under the corresponding section of prior law, except that if no such certificate is in effect, the number of withholding exemptions claimed shall be considered to be zero.”
Subsec. (i). Pub. L. 115-97, Sec. 13603(b)(1), added subsec. (i).
2008--Subsec. (a)(21)-(23). Pub. L. 110-245, Sec. 115(c), amended subsec. (a) by striking “or” at the end of par. (21); by substituting “; or” for the period at the end of par. (22); and by adding par. (23).
Subsec. (h). Pub. L. 110-245, Sec. 105(a), added subsec. (h).
2005--Subsec. (g)-(h). Pub. L. 109-135, Sec. 412(tt), redesignated subsec. (h) as subsec. (g).
2004--Subsec. (a)(18). Pub. L. 108-375, Sec. 585(b)(2)(D), amended par. (18) by substituting “134(b)(4), or 134(b)(5)” for “or 134(b)(4)”.
Subsec. (a). Pub. L. 108-357, Sec. 885(b)(2), amended subsec. (a) by adding the flush sentence at the end.
Subsec. (a)(19). Pub. L. 108-357, Sec. 320(b)(4), amended par. (19) by inserting “108(f)(4),” after “74(c)”.
2003--Subsec. (a)(20)-(22). Pub. L. 108-173, Sec. 1201(d), amended par. (20) by striking “or” at the end; amended par. (21) by substituting “; or” for the period at the end, and added par. (22).
Subsec. (a)(18). Pub. L. 108-121, Sec. 106(b)(4), amended par. (18) by substituting “, 129, or 134(b)(4)” for “or 129”.
2001--Subsec. (a)(12)(E). Pub. L. 107-16, Sec. 641(a)(1)(D)(i), added subpar. (E).
1998--Subsec. (a)(19). Pub. L. 105-206, Sec. 6023(14), amended par. (19) by inserting “for” before “any benefit provided to”.
Subsec. (a)(21). Pub. L. 105-206, Sec. 6023(15), amended par. (21) by inserting “for” before “any payment made”.
1996--Subsec. (a)(1). Pub. L. 104-188, Sec. 1704(t)(4), substituted “combat zone compensation” for “combat pay”.
Subsec. (a)(12)(D). Pub. L. 104-188, Sec. 1421(b)(8), added subpar. (D).
1996 - Subsec. (a)(19), (20), (21). Pub. L. 104-191, Sec. 301(c)(2)(C), struck “or” at the end of par. (19), struck the period and inserted “; or” at the end of par. (20), and added par. (21).
Subsec. (a)(1). Pub. L. 104-117, Sec. 1(c), inserted ‘to the extent remuneration for such service is excludable from gross income under such section’ before the semicolon.
1990--Subsec. (a)(20). Pub. L. 101-508 added par. (20).
1989--Subsec. (a)(2). Pub. L. 101-239, Sec. 7631(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘for agricultural labor (as defined in section 3121(g)); or’.
Subsec. (g). Pub. L. 101-140 amended this section to read as if amendments by Pub. L. 100-647, Sec. 1011B(a)(22)(D), had not been enacted, see 1988 Amendment note below.
Subsec. (h). Pub. L. 101-239, Sec. 7631(b), added subsec. (h).
1988--Subsec. (a)(12)(C). Pub. L. 100-647, Sec. 1011(f)(9), substituted ‘section 402(h)(1) and (2)’ for ‘section 219’ and ‘an exclusion’ for ‘a deduction’.
Subsec. (a)(15). Pub. L. 100-647, Sec. 1001(g)(4)(B)(iii), inserted ‘(determined without regard to section 274(n))’ after ‘section 217’.
Subsec. (a)(19), (20). Pub. L. 100-647, Sec. 1011B(a)(33), redesignated par. (20) as (19) and struck out former par. (19) which excluded medical care reimbursement made to or for benefit of employee under self-insured medical reimbursement plan.
Subsec. (g). Pub. L. 100-647, Sec. 1011B(a)(22)(D), added subsec. (g) relating to benefits provided under certain employee benefit plans.
1986--Subsec. (a)(8)(D). Pub. L. 99-514, Sec. 1272(c), added subpar. (D).
Subsec. (a)(20). Pub. L. 99-514, Sec. 122(e)(4), inserted reference to section 74(c).
1984--Subsec. (a). Pub. L. 98-369, Sec. 531(d)(4)(A), inserted ‘(including benefits)’ in introductory provisions.
Subsec. (a)(12). Pub. L. 98-369, Sec. 491(d)(38), struck out subpar. (C) which provided: ‘under or to a bond purchase plan which, at the time of such payment, is a qualified bond purchase plan described in section 405(a);’ and redesignated subpar. (D) as (C).
Subsec. (a)(20). Pub. L. 98-369, Sec. 531(d)(4)(B), added par. (20).
1983--Subsec. (a)(12)(D). Pub. L. 97-448 substituted ‘section 219’ for ‘section 219(a)’.
1981--Subsec. (a)(12)(D). Pub. L. 97-34, Sec. 311(h)(6), substituted ‘section 219(a)’ for ‘section 219(a) or 220(a)’.
Subsec. (a)(18). Pub. L. 97-34, Sec. 124(e)(2)(A), substituted ‘section 127 or 129’ for ‘section 127’.
Pub. L. 97-34, Sec. 112(b)(5), redesignated par. (19) as (18). Former par. (18), relating to remuneration paid to or on behalf of an employee if (and to the extent that) at the time of the payment of such remuneration it was reasonable to believe that a corresponding deduction was allowable under section 913 (relating to deduction for certain expenses of living abroad), was struck out.
Subsec. (a)(19), (20). Pub. L. 97-34, Sec. 112(b)(5), redesignated par. (20) as (19). Former par. (19) redesignated (18).
1980 - Subsec. (a)(18) to (20). Pub. L. 96-222 redesignated par. (18), added by Pub. L. 95-600, as (19), in par. (19) as so redesignated, substituted ‘section 127; or’ for ‘section 124.’, and added par. (20).
1978 - Subsec. (a)(18). Pub. L. 95-615 added par. (18) relating to payments or benefits excludable from income under section 124.
Pub. L. 95-600 added par. (18) relating to remuneration for which a corresponding deduction is allowable under section 913.
1976 - Subsec. (a)(6). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (a)(12)(D). Pub. L. 94-455, Sec. 1501(b)(7), inserted ‘or 220(a)’ after ‘section 219(a)’.
Subsec. (a)(17). Pub. L. 94-455, Sec. 1207(e)(1)(C), added par. (17).
Subsec. (c). Pub. L. 94-455, Sec. 1903(c), struck out ‘Territory’ after ‘a State’.
1974 - Subsec. (a)(12)(D). Pub. L. 93-406 added subpar. (D).
1972 - Subsec. (a)(1). Pub. L. 92-279 struck out ‘as a member of the Armed Forces of the United States’ after ‘active service’, substituted ‘employee’ for ‘member’, and parenthetical text ‘(relating to certain combat pay of members of the Armed Forces of the United States)’.
1966 - Subsec. (a)(6), (7). Pub. L. 89-809, Sec. 103(k), struck out par. (6) dealing with services performed by nonresident alien individuals other than residents of contiguous countries who enter and leave the United States at frequent intervals, residents of Puerto Rico if such services are performed as an employee of the United States or any agency thereof, or individuals temporarily present in the United States as nonimmigrants under certain conditions, redesignated par. (7) as (6), and in par (6) as so redesignated, struck out ‘who is a resident of a contiguous country and who enters and leaves the United States at frequent intervals’ after ‘nonresident alien individual’.
1965 - Subsec. (a)(16). Pub. L. 89-97, Sec. 313(d)(2), added par. (16).
Subsec. (f). Pub. L. 89-97, Sec. 313(d)(1), added subsec. (f).
1964 - Subsec. (a)(14). Pub. L. 88-272, Sec. 204(b), added par. (14).
Subsec. (a)(15). Pub. L. 88-272, Sec. 213(c), added par. (15).
1962 - Subsec. (a)(12)(B), (C). Pub. L. 87-792 substituted ‘is a plan described in section 403(a)’ for ‘meets the requirements of section 401(a)(3), (4), (5), and (6)’, in subpar. (B), and added subpar. (C).
1961 - Subsec. (a)(6)(C). Pub. L. 87-256 added subpar. (C).
Subsec. (a)(13). Pub. L. 87-293 added par. (13).
1955 - Subsec. (a). Act Aug. 9, 1955, excluded from definition of wages, remuneration paid for services performed in a possession of the United States by a United States citizen if the employer is required by the law of the possession to withhold income tax on the remuneration.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(217)(A)-(D) effective March 23, 2018.
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendment by Sec. 11041(c)(2)(A) of Pub. L. 115-97 effective for taxable years beginning after December 31, 2017.
Amendment by Sec. 13603(b)(1) of Pub. L. 115-97 effective for stock attributable to options exercised, or restricted stock units settled, after December 31, 2017. Section 13603(g) of Pub. L. 115-97 provided the following transition rule:
“(g) TRANSITION RULE.—Until such time as the Secretary (or the Secretary's delegate) issues regulations or other guidance for purposes of implementing the requirements of paragraph (2)(C)(i)(II) of section 83(i) of the Internal Revenue Codeof 1986 (as added by this section), or the requirements of paragraph (6) of such section, a corporation shall be treated as being in compliance with such requirements (respectively) if such corporation complies with a reasonable good faith interpretation of such requirements.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendment by Sec. 105(a) of Pub. L. 110-245 effective for remuneration paid after December 31, 2008.
Amendment by Sec. 115(c) of Pub. L. 110-245 as if included in section 5 of the Mortgage Forgiveness Debt Relief Act of 2007 [Pub. L. 110-142, effective for taxable years beginning after Dec. 31, 2007].
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendment by Sec. 412(tt) of Pub. L. 109-135 effective on the date of the enactment of this Act [Enacted: Dec. 21, 2005].
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendment by Sec. 585(b)(2)(D) of Pub. L. 108-375 effective for travel benefits provided after the date of the enactment of this Act [Enacted: Oct. 28, 2004].
Amendment by Sec. 320(b)(4) of Pub. L. 108-357 effective for amounts received by an individual in taxable years beginning after December 31, 2003.
Amendment by Sec. 885(b)(2) of Pub. L. 108-357 effective for amounts deferred after December 31, 2004. Sec. 885(d)-(f) provided the following rules:
“(d)(2) SPECIAL RULES-
“(A) EARNINGS- The amendments made by this section shall apply to earnings on deferred compensation only to the extent that such amendments apply to such compensation.
“(B) MATERIAL MODIFICATIONS- For purposes of this subsection, amounts deferred in taxable years beginning before January 1, 2005, shall be treated as amounts deferred in a taxable year beginning on or after such date if the plan under which the deferral is made is materially modified after October 3, 2004, unless such modification is pursuant to the guidance issued under subsection (f).
“(3) EXCEPTION FOR NONELECTIVE DEFERRED COMPENSATION- The amendments made by this section shall not apply to any nonelective deferred compensation to which section 457 of the Internal Revenue Code of 1986 does not apply by reason of section 457(e)(12) of such Code, but only if such compensation is provided under a nonqualified deferred compensation plan--
“(A) which was in existence on May 1, 2004,
“(B) which was providing nonelective deferred compensation described in such section 457(e)(12) on such date, and
“(C) which is established or maintained by an organization incorporated on July 2, 1974.
“ If, after May 1, 2004, a plan described in the preceding sentence adopts a plan amendment which provides a material change in the classes of individuals eligible to participate in the plan, this paragraph shall not apply to any nonelective deferred compensation provided under the plan on or after the date of the adoption of the amendment.
“(e) GUIDANCE RELATING TO CHANGE OF OWNERSHIP OR CONTROL- Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall issue guidance on what constitutes a change in ownership or effective control for purposes of section 409A of the Internal Revenue Code of 1986, as added by this section.
“(f) GUIDANCE RELATING TO TERMINATION OF CERTAIN EXISTING ARRANGEMENTS- Not later than 60 days after the date of the enactment of this Act, the Secretary of the Treasury shall issue guidance providing a limited period during which a nonqualified deferred compensation plan adopted before December 31, 2004, may, without violating the requirements of paragraphs (2), (3), and (4) of section 409A(a) of the Internal Revenue Code of 1986 (as added by this section), be amended--
“(1) to provide that a participant may terminate participation in the plan, or cancel an outstanding deferral election with regard to amounts deferred after December 31, 2004, but only if amounts subject to the termination or cancellation are includible in income of the participant as earned (or, if later, when no longer subject to substantial risk of forfeiture), and
“(2) to conform to the requirements of such section 409A with regard to amounts deferred after December 31, 2004.”
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendments by Sec. 1201(d) of Pub. L. 108-173 effective for taxable years beginning after December 31, 2003.
Amendment by Sec. 106(b) of Pub. L. 108-121 effective for taxable years beginning after December 31, 2002.
Section 106(d) of Pub. L. 108-121 provided that:
“(d) No INFERENCE-No inference may be drawn from the amendments made by this section with respect to the tax treatment of any amounts under the program described in section 134(b)(4) of the Internal Revenue Code of 1986 (as added by this section) for any taxable year beginning before January 1, 2003.”
EFFECTIVE DATE OF 2001 AMENDMENTS
Amendment by Sec. 641(a)(1)(D)(i) of Pub. L. 107-16 effective for distributions after December 31, 2001.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358, provided that:
“(a) IN GENERAL.--All provisions of, and amendments made by, this Act shall not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2010, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2010.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE SINAI PENINSULA OF EGYPT
Section 11026 of Pub. L. 115-97 provided that:
“(a) IN GENERAL.—For purposes of the following provisions of the Internal Revenue Code of 1986, with respect to the applicable period, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):
* * *
“(5) Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces).
* * *
“(b) QUALIFIED HAZARDOUS DUTY AREA.—For purposes of this section, the term ‘‘qualified hazardous duty area’’ means the Sinai Peninsula of Egypt, if as of the date of the enactment of this section any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location. Such term includes such location only during the period such entitlement is in effect.
“(c) APPLICABLE PERIOD.—
“(1) IN GENERAL.—Except as provided in paragraph (2), the applicable period is—
“(A) the portion of the first taxable year ending after June 9, 2015, which begins on such date, and
“(B) any subsequent taxable year beginning before January 1, 2026.
“(2) WITHHOLDING.—In the case of subsection (a)(5), the applicable period is—
“(A) the portion of the first taxable year ending after the date of the enactment of this Act [Enacted: Dec. 22, 2017] which begins on such date, and
“(B) any subsequent taxable year beginning before January 1, 2026.
“(d) EFFECTIVE DATE.—
“(1) IN GENERAL.—Except as provided in paragraph (2), the provisions of this section shall take effect on June 9, 2015.
“(2) WITHHOLDING.—Subsection (a)(5) shall apply to remuneration paid after the date of the enactment of this Act.”
PENSIONS AND INDIVIDUAL RETIREMENT ARRANGEMENT PROVISIONS OF ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001 MADE PERMANENT
Section 811 of Pub. L. 109-280 provided that:
“Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to the provisions of, and amendments made by, subtitles A through F of title VI of such Act (relating to pension and individual retirement arrangement provisions).”
QUALIFIED HAZARDOUS DUTY AREA TREATED AS COMBAT ZONE
Section 1 of Pub. L. 106-21, provided that:
“(a) General rule--For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):”
* * *
“(5) Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces).”
* * *
“(b) Qualified Hazardous Duty Area.--For purposes of this section, the term “qualified hazardous duty area” means any area of the Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, the Adriatic Sea, and the northern Ionian Sea (above the 39th parallel) during the period (which includes the date of the enactment of this Act) that any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay: duty subject to hostile fire or imminent danger) for services performed in such area.
“(c) Special Rule for Section 7508.--Solely for purposes of applying section 7508 of the Internal Revenue Code of 1986, in the case of an individual who is performing services as part of Operation Allied Force outside the United States while deployed away from such individual's permanent duty station, the term “qualified hazardous duty area” includes, during the period for which the entitlement referred to in subsection (b) is in effect, any area in which such services are performed.
“(d) Effective Dates.--
“(1) In general.--Except as provided in paragraph (2), this section shall take effect on March 24, 1999.
“(2) Withholding.--Subsection (a)(5) shall apply to renumeration paid after the date of the enactment of this Act [Enactment Date: April 19, 1999].”
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendments by Sec. 6023 of Pub. L. 105-206 effective on the date of the enactment of this Act [enacted: July 22, 1998].
EFFECTIVE DATE OF 1996 AMENDMENTS
Section 1421(e) of Pub. L. 104-188 provided that: “The amendments made by this section shall apply to taxable years beginning after December 31, 1996.
Section 301(j) of Pub. L. 104-191 provided that: ‘The amendments made by this section shall apply to taxable years beginning after Dec. 31, 1996.
Section 1(e) of Pub. L. 104-117 provided that: ‘The amendment made by subsection (c) shall apply to remuneration paid after the date of the enactment [3/20/96] of this Act.’
QUALIFIED HAZARDOUS DUTY AREA TREATED AS COMBAT ZONE
Section 1(a), (b) of Pub. L. 104-117 provided that:
“General Rule--For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):”
“(5) Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces).”
“(b) Qualified Hazardous Duty Area--For purposes of this section, the term “qualified hazardous duty area” means Bosnia and Herzegovina, Croatia, or Macedonia, if as of the date of the enactment of this section any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger) for services performed in such country. Such term includes any such country only during the period such entitlement is in effect. Solely for purposes of applying section 7508 of the Internal Revenue Code of 1986, in the case of an individual who is performing services as part of Operation Joint Endeavor outside the United States while deployed away from such individual's permanent duty station, the term “qualified hazardous duty area” includes, during the period for which such entitlement is in effect, any area in which such services are performed.
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11703(f)(2) of Pub. L. 101-508 provided that: ‘The amendment made by paragraph (1) (amending this section) shall apply as if included in the amendments made by section 1151 of the Tax Reform Act of 1986 (Pub. L. 99-514, see Effective Date of 1986 Amendment note set out under section 79 of this title) but shall not apply to any amount paid before the date of the enactment of this Act (Nov. 5, 1990) which the employer treated as wages for purposes of chapter 24 of the Internal Revenue Code of 1986 when paid.'
EFFECTIVE DATE OF 1989 AMENDMENTS
Section 7631(c) of Pub. L. 101-239 provided that: ‘The amendments made by this section (amending this section) shall apply to remuneration paid after December 31, 1989.’
Amendment by Pub. L. 101-140 effective as if included in section 1151 of Pub. L. 99-514, see section 203(c) of Pub. L. 101-140, set out as a note under section 79 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by sections 1001(g)(4)(B)(iii), 1011(f)(9), and 1011B(a)(33) of Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
Amendment by section 1011B(a)(22)(D) of Pub. L. 100-647 not applicable to any individual who separated from service with the employer before Jan. 1, 1989, see section 1011B(a)(22)(F) of Pub. L. 100-647, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 122(e)(4) of Pub. L. 99-514 applicable to prizes and awards granted after Dec. 31, 1986, see section 151(c) of Pub. L. 99-514, set out as a note under section 1 of this title.
Amendment by section 1272(c) of Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 1277 of Pub. L. 99-514, set out as a note under section 931 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 491(d)(38) of Pub. L. 98-369 applicable to obligations issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 98-369, set out as a note under section 62 of this title.
Amendment by section 531(d)(4) of Pub. L. 98-369 effective Jan. 1, 1985, see section 531(h) of Pub. L. 98-369, set out as an Effective Date note under section 132 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 109 of Pub. L. 97-448, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 112(b)(5) of Pub. L. 97-34 applicable with respect to taxable years beginning after Dec. 31, 1981, see section 115 of Pub. L. 97-34, set out as a note under section 911 of this title.
Amendment by section 124(e)(2)(A) of Pub. L. 97-34 applicable to remuneration paid after Dec. 31, 1981, see section 124(f)(2) of Pub. L. 97-34, set out as a note under section 21 of this title.
Amendment by section 311(h)(6) of Pub. L. 97-34 applicable to taxable years beginning after Dec. 31, 1981, see section 311(i)(1) of Pub. L. 97-34, set out as a note under section 219 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Pub. L. 95-600, to which such amendment relates, see section 201 of Pub. L. 96-222, set out as a note under section 32 of this title.
EFFECTIVE DATE OF 1978 AMENDMENTS
Amendment by Pub. L. 95-615 applicable to remuneration paid after Nov. 8, 1978, but with taxpayers allowed to elect not to have the amendment apply with respect to any taxable year beginning after Dec. 31, 1977, and before Jan. 1, 1979, see section 209(b), (c) of Pub. L. 95-615, set out as a note under section 911 of this title.
Amendment by Pub. L. 95-600 applicable with respect to taxable years beginning after Dec. 31, 1978, see section 164(d) of Pub. L. 95-600, set out as a note under section 127 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1501(b)(7) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1501(d) of Pub. L. 94-455, set out as a note under section 62 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 effective on Jan. 1, 1975, see section 2002(i)(2) of Pub. L. 93-406, set out as an Effective Date note under section 4973 of this title.
EFFECTIVE DATE OF 1972 AMENDMENT
Section 3(b) of Pub. L. 92-279 provided that: ‘The amendments made by section 2 (amending this section) shall apply to wages paid on or after the first day of the first calendar month which begins more than 30 days after the date of the enactment of this Act (Apr. 26, 1972).’
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-809 applicable with respect to remuneration paid after Dec. 31, 1966, see section 103(n)(4) of Pub. L. 89-809, set out as a note under section 871 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 313(d)(1), (2) of Pub. L. 89-97 applicable only with respect to tips received by employees after 1965, see section 313(f) of Pub. L. 89-97, set out as a note under section 6053 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by section 204(b) of Pub. L. 88-272 applicable to remuneration paid after Dec. 31, 1963, in the form of group-term life insurance provided after such date, see section 204(d) of Pub. L. 88-272, set out as an Effective Date note under section 79 of this title.
Amendment by section 213(c) of Pub. L. 88-272 applicable to remuneration paid after the seventh day following Feb. 26, 1964, see section 213(d) of Pub. L. 88-272, set out as a note under section 62 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a note under section 22 of this title.
EFFECTIVE DATE OF 1961 AMENDMENTS
Amendment by Pub. L. 87-293 applicable with respect to remuneration paid after Sept. 22, 1961, see section 201(d) of Pub. L. 87-293, set out as a note under section 912 of this title.
Section 110(h)(4) of Pub. L. 87-256 provided that: ‘The amendments made by subsection (g) of this section (amending sections 3401 and 3402 of this title) shall apply with respect to wages paid after December 31, 1961.’
SHORT TITLE OF 1966 AMENDMENT
Pub. L. 89-368, Sec. 1, Mar. 15, 1966, 80 Stat. 38, provided that: ‘This Act (enacting sections 276 and 6682 of this title and section 428 of Title 42, The Public Health and Welfare, amending sections 1402, 1403, 3402, 4061, 4251, 4253, 6015, 6154, 6211, 6412, 6654, 7205, and 7701 of this title and section 1202 of Title 19, Customs Duties, and enacting provisions set out as notes under sections 276, 3402, 4061, 4251, 6154, and 6654 of this title and section 428 of Title 42) may be cited as the ‘Tax Adjustment Act of 1966’.'
REPEALS; AMENDMENTS AND APPLICATION OF AMENDMENTS UNAFFECTED
Section 201(c) of Pub. L. 87-293, cited as a credit to this section, was repealed by Pub. L. 89-572, Sec. 5(a), Sept. 13, 1966, 80 Stat. 765. Such repeal not deemed to affect amendments to this section contained in such provisions, and continuation in full force and effect until modified by appropriate authority of all determinations, authorization, regulations, orders, contracts, agreements, and other actions issued, undertaken, or entered into under authority of the repealed provisions, see section 5(b) of Pub. L. 89-572, set out as a note under former section 2515 of Title 22, Foreign Relations and Intercourse.
CONTROVERSIES INVOLVING WHETHER INDIVIDUALS ARE EMPLOYEES FOR PURPOSES OF EMPLOYMENT TAXES
Section 530 of Pub. L. 95-600, as amended by Pub. L. 96-167, Sec. 9(d), Dec. 29, 1979, 93 Stat. 1278; Pub. L. 96-541, Sec. 1, Dec. 17, 1980, 94 Stat. 3204; Pub. L. 97-248, title II, Sec. 269(c)(1), (2), 96 Stat. 552; Pub. L. 99-514, Sec. 2, title XVII, Sec. 1706(a), Oct. 22, 1986, 100 Stat. 2095, 2781, provided that:
‘(a) Termination of Certain Employment Tax Liability. -
‘(1) In general. - If -
‘(A) for purposes of employment taxes, the taxpayer did not treat an individual as an employee for any period, and
‘(B) in the case of periods after December 31, 1978, all Federal tax returns (including information returns) required to be filed by the taxpayer with respect to such individual for such period are filed on a basis consistent with the taxpayer's treatment of such individual as not being an employee, then, for purposes of applying such taxes for such period with respect to the taxpayer, the individual shall be deemed not to be an employee unless the taxpayer had no reasonable basis for not treating such individual as an employee.
‘(2) Statutory standards providing one method of satisfying the requirements of paragraph (1). - For purposes of paragraph (1), a taxpayer shall in any case be treated as having a reasonable basis for not treating an individual as an employee for a period if the taxpayer's treatment of such individual for such period was in reasonable reliance on any of the following:
‘(A) judicial precedent, published rulings, technical advice with respect to the taxpayer, or a letter ruling to the taxpayer;
‘(B) a past Internal Revenue Service audit of the taxpayer in which there was no assessment attributable to the treatment (for employment tax purposes) of the individuals holding positions substantially similar to the position held by this individual; or
‘(C) long-standing recognized practice of a significant segment of the industry in which such individual was engaged.
‘(3) Consistency required in the case of prior tax treatment. - Paragraph (1) shall not apply with respect to the treatment of any individual for employment tax purposes for any period ending after December 31, 1978, if the taxpayer (or a predecessor) has treated any individual holding a substantially similar position as an employee for purposes of the employment taxes for any period beginning after December 31, 1977.
‘(4) Refund or credit of overpayment. - If refund or credit of any overpayment of an employment tax resulting from the application of paragraph (1) is not barred on the date of the enactment of this Act (Nov. 6, 1978) by any law or rule of law, the period for filing a claim for refund or credit of such overpayment (to the extent attributable to the application of paragraph (1)) shall not expire before the date 1 year after the date of the enactment of this Act (Nov. 6, 1978).
‘(b) Prohibition Against Regulations and Rulings on Employment Status. - No regulation or Revenue Ruling shall be published on or after the date of the enactment of this Act (Nov. 6, 1978) and before the effective date of any law hereafter enacted clarifying the employment status of individuals for purposes of the employment taxes by the Department of the Treasury (including the Internal Revenue Service) with respect to the employment status of any individual for purposes of the employment taxes.
‘(c) Definitions. - For purposes of this section -
‘(1) Employment tax. - The term ‘employment tax’ means any tax imposed by subtitle C of the Internal Revenue Code of 1986 (formerly I.R.C. 1954, section 3101 et seq. of this title).
‘(2) Employment status. - The term ‘employment status’ means the status of an individual, under the usual common law rules applicable in determining the employer-employee relationship, as an employee or as an independent contractor (or other individual who is not an employee).
‘(d) Exception. - This section shall not apply in the case of an individual who, pursuant to an arrangement between the taxpayer and another person, provides services for such other person as an engineer, designer, drafter, computer programmer, systems analyst, or other similarly skilled worker engaged in a similar line of work.’
(Section 1706(b) of Pub. L. 99-514 provided that: ‘The amendment made by this section (amending note above) shall apply to remuneration paid and services rendered after December 31, 1986.’)