§1463 — Tax paid by recipient of income
8 cases·1 followed·1 distinguished·1 overruled·5 cited—12% support
Statute Text — 26 U.S.C. §1463
If—
any person, in violation of the provisions of this chapter, fails to deduct and withhold any tax under this chapter, and
thereafter the tax against which such tax may be credited is paid,
the tax so required to be deducted and withheld shall not be collected from such person; but this section shall in no case relieve such person from liability for interest or any penalties or additions to the tax otherwise applicable in respect of such failure to deduct and withhold.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.1463-1 Tax paid by recipient of income
- Treas. Reg. §Treas. Reg. §1.1463-1(a) Tax paid.
- Treas. Reg. §Treas. Reg. §1.1463-1(b) Effective date.
8 Citing Cases
Petitioners In arguing that section 1464, rather than section 1463, “is relevant . . . for 2007 and 2008,” petitioners implicitly concede that YA Offshore’s stipulated nonpartnership expenses for those years are not sufficient to eliminate its income tax liability. They make no argument that any of YA Global’s foreign partners certified their nonpartnership deductions in accordance with Treasury Regulation § 1.1446-6, conceding that that regulation “is inapplicable here.” And they concede that “
Pursuant to section 1463(b) , I the decision to be entered is not reviewable by any other court , This opinion replaces our previously filed opinion, T .C .
uld be credited, however, the withholding agent is relieved of liability for withholding tax but not “for interest or any penalties or additions to the tax otherwise applicable in respect of [the withholding agent’s] failure to deduct and withhold.” § 1463. Treasury Regulation § 1.1446-3(e)(1) applies the principle of section 1463 to the specific case of partnership withholding under section 1446: [A] partnership that is required to pay 1446 tax but fails to do so, or pays less than the amount r
purposes of determining interest for periods after December 31, 1994. 3 The version of the statute quoted in the text is the current version, reflecting changes not relevant herein made by the Taxpayer Relief Act of 1997 (TRA 1997), Pub. L. 105-34, sec. 1463(a), 111 Stat. 1057; TRA 1997, sec. 1604(b)(1), 111 Stat. 1097; Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3302(a), 112 Stat. 741. - 7 - The GATT amendment also included a corollary 2-percentage point
purposes of determining interest for periods after December 31, 1994. 3 The version of the statute quoted in the text is the current version, reflecting changes not relevant herein made by the Taxpayer Relief Act of 1997 (TRA 1997), Pub. L. 105-34, sec. 1463(a), 111 Stat. 1057; TRA 1997, sec. 1604(b)(1), 111 Stat. 1097; Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3302(a), 112 Stat. 741. - 7 - The GATT amendment also included a corollary 2-percentage point
1463(a), 111 Stat. 1057, added sec. 6621(c)(2)(B)(iii), applicable for purposes of determining interest for periods after Dec. 31, 1997. The legislative history indicates that Congress was concerned that minor mathematical errors by the taxpayer might result in the application of hot interest to a subsequently identified income tax deficiency.