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us/statute/26/3406/c/2 — Payee underreporting defined · Axiom

Payee underreporting defined

Official source

For purposes of this section, there has been payee underreporting if 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 payment in such return, but failed to file such return.

in view

Whole section

▸rulespec code

Shown source

statutes/26/3406/c.yaml

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Rules

minimum_underreporting_notice_count

Parameter

source: 26 USC 3406(c)(1)(B)

- name: minimum_underreporting_notice_count
  kind: parameter
  dtype: Count
  source: 26 USC 3406(c)(1)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: at least 4 notices
  versions:
    - effective_from: '1990-01-01'
      formula: '4'

minimum_underreporting_notice_period_days

Parameter

source: 26 USC 3406(c)(1)(B)

- name: minimum_underreporting_notice_period_days
  kind: parameter
  dtype: Count
  source: 26 USC 3406(c)(1)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: over a period of at least 120 days
  versions:
    - effective_from: '1990-01-01'
      formula: '120'

payee_underreporting

Derived

source: 26 USC 3406(c)(2)

- name: payee_underreporting
  kind: derived
  entity: Person
  dtype: Judgment
  period: Year
  source: 26 USC 3406(c)(2)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              the payee failed to include in his return of tax under chapter 1 ... any portion of a
              reportable interest or dividend payment
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              the payee may be required to file a return ... and to include a reportable interest or
              dividend payment ... but failed to file such return
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        payee_failed_to_include_reportable_interest_or_dividend_payment_on_chapter_1_return
        or (
            payee_may_be_required_to_file_return_including_reportable_interest_or_dividend_payment
            and payee_failed_to_file_return
        )

secretary_may_notify_payors_of_underreporting_withholding

Derived

source: 26 USC 3406(c)(1)

- name: secretary_may_notify_payors_of_underreporting_withholding
  kind: derived
  entity: Person
  dtype: Judgment
  period: Year
  source: 26 USC 3406(c)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              the Secretary determines with respect to any payee that there has been payee
              underreporting
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: at least 4 notices have been mailed ... over a period of at least 120 days
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              in the case of any payee who has filed a return ... any deficiency ... has been
              assessed
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/c#payee_underreporting
            output: payee_underreporting
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/c#minimum_underreporting_notice_count
            output: minimum_underreporting_notice_count
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/c#minimum_underreporting_notice_period_days
            output: minimum_underreporting_notice_period_days
            hash: sha256:local
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        secretary_determines_payee_underreporting
        and payee_underreporting
        and underreporting_notices_mailed_count >= minimum_underreporting_notice_count
        and underreporting_notice_period_days >= minimum_underreporting_notice_period_days
        and (
            not payee_filed_return_for_taxable_year
            or deficiency_of_tax_attributable_to_underreporting_failure_has_been_assessed
        )

secretary_shall_take_action_to_stop_or_not_start_withholding

Derived

source: 26 USC 3406(c)(3)(A)-(B)

- name: secretary_shall_take_action_to_stop_or_not_start_withholding
  kind: derived
  entity: Person
  dtype: Judgment
  period: Year
  source: 26 USC 3406(c)(3)(A)-(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: there was no payee underreporting
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              any payee underreporting has been corrected ... and any tax, penalty, or interest ...
              has been paid
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              withholding ... has caused (or would cause) undue hardship ... and it is unlikely that
              any payee underreporting ... will occur again
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: there is a bona fide dispute as to whether there has been any payee underreporting
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        secretary_determines_no_payee_underreporting
        or (
            secretary_determines_payee_underreporting_corrected
            and tax_penalty_or_interest_with_respect_to_underreporting_has_been_paid
        )
        or (
            secretary_determines_withholding_causes_or_would_cause_undue_hardship
            and secretary_determines_underreporting_unlikely_to_occur_again
        )
        or secretary_determines_bona_fide_dispute_as_to_underreporting

payee_must_identify_payors_and_brokers_to_secretary

Derived

source: 26 USC 3406(c)(5)

- name: payee_must_identify_payors_and_brokers_to_secretary
  kind: derived
  entity: Person
  dtype: Judgment
  period: Year
  source: 26 USC 3406(c)(5)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              The Secretary may require any payee of reportable interest or dividend payments who is
              subject to withholding under subsection (a)(1)(C) to notify the Secretary
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        payee_receives_reportable_interest_or_dividend_payments
        and payee_is_subject_to_withholding_under_subsection_a_1_C
        and secretary_requires_payee_to_notify_secretary_of_payors_and_brokers