(1) For purposes of computing interest and for purposes of section 6651 (relating to addition to tax for failure to file tax return), the due date for the return and payment of the tax for any calendar quarter resulting from the filing of such an amendment shall be the last day of the calendar month following the calendar quarter in which the amendment is filed; and

(ii) The statutory period for the assessment of such tax shall not expire before the expiration of 3 years from such due date.

(2) Termination of waiver period by Secretary or his delegate. If the Secretary or his delegate finds that any organization which filed a certificate pursuant to this subsection or the corresponding subsection of prior law has failed to comply substantially with the requirements applicable with respect to the taxes imposed by this chapter or the corresponding provisions of prior law or is no longer able to comply with the requirements applicable with respect to the taxes imposed by this chapter, the Secretary or his delegate shall give such organization not less than 60 days' advance notice in writing that the period covered by such certificate will terminate at the end of the calendar quarter specified in such notice. Such notice of termination may be revoked by the Secretary or his delegate by giving, prior to the close of the calendar quarter specified in the notice of termination, written notice of such revocation to the organization. No notice of termination or of revocation thereof shall be given under this paragraph to an organization without the prior concurrence of the Secretary of Health, Education, and Welfare.

(3) No renewal of waiver. In the event the period covered by a certificate filed pursuant to this subsection or the corresponding subsection of prior law is terminated by the organization, no certificate may again be filed by such organization pursuant to this subsection.

[Sec. 3121(k) as amended by secs. 205(b), 207, and 402, Social Security Amendments, 1954; sec. 201 (k) and (1), Social Security Amendments 1956; sec. 405(a), Social Security Amendments 1958; sec. 105(a), Social Security Amendments 1960; sec. 316 (a) and (b), Social Security Amendments 1965]

SEC. 403. [Social Security Amendments of 1954]. (a) In any case in which

(1) An individual has been employed, at any time subsequent to 1950 and prior to the enactment of the Social Security Amendments of 1956, by an organization which is described in section 501(c)(3) of the Internal Revenue Code of 1954 and which is exempt from income tax under section 501(a) of such Code but which did not have in effect, during the entire period in which the individual was so employed, a valid waiver certificate under section 1426(1)(1) of the Internal Revenue Code of 1939 or section 3121 (k) (1) of the Internal Revenue Code of 1954;

(2) The service performed by such individual as an employee of such organization during the period subsequent to 1950 and prior to 1957 would have constituted employment (as defined in section 210 of the Social Security Act and section 1426(b) of the Internal Revenue Code of 1939 or section 3121 (b) of the Internal Revenue Code of 1954, as the case may be, at the time such service was performed) if such organization had filed prior to the performance of such service such a certificate accompanied by a list of the signatures of employees who concurred in the filing of such certificate and such individual's signature had appeared on such list;

(3) The taxes imposed by sections 1400 and 1410 of the Internal Revenue Code of 1939 or sections 3101 and 3111 of the Internal Revenue Code of 1954, as the case may be, have been paid with respect to any part of the remuneration paid to such individual by such organization for such service performed during the period in which such organization did not have a valid waiver certificate in effect;

(4) Part of such taxes have been paid prior to the enactment of the Social Security Amendments of 1956;

(5) So much of such taxes as have been paid prior to the enactment of the Social Security Amendments of 1956 have been paid by such organization in good faith and without knowledge that a waiver certificate was necessary or upon the assumption that a valid waiver certificate had been filed by it under section 1426(1)(1) of the Internal Revenue Code of 1939 or section 3121(k) (1) of the Internal Revenue Code of 1954, as the case may be; and

(6) No refund of such taxes has been obtained,

the amount of such remuneration with respect to which such taxes have been paid shall, upon the request of such individual (filed on or before the date of the enactment of the Social Security Amendments of 1960 [September 13, 1960] and in such form and manner, and with such official, as may be prescribed by regulations under chapter 21 of the Internal Revenue Code of 1954), be deemed to constitute remuneration for employment as defined in section 210 of the Social Security Act and section 1426(b) of the Internal Revenue Code of 1939 or section 3121(b) of the Internal Revenue Code of 1954, as the case may be.

(b) In any case in which

(1) An individual has been employed, at any time subsequent to 1950 and prior to the enactment of the Social Security Amendments of 1956, by an organization which has filed a valid waiver certificate under section 1426(1)(1) of the Internal Revenue Code of 1939 or section 3121(k) (1) of the Internal Revenue Code of 1954;

(2) The service performed by such individual during the time he was so employed

would have constituted employment (as defined in section 210 of the Social Security Act and section 1426(b) of the Internal Revenue Code of 1939 or section 3121(b) of the Internal Revenue Code of 1954, as the case may be, at the time such service was performed) if such individual's signature had appeared on the list of signatures of employees who concurred in the filing of such certificate;

(3) The taxes imposed by sections 1400 and 1410 of the Internal Revenue Code of 1939 or sections 3101 and 3111 of the Internal Revenue Code of 1954, as the case may be, have been paid prior to the enactment of the Social Security Amendments of 1956 with respect to any part of the remuneration paid to such individual by such organization for such service; and

(4) No refund of such taxes has been obtained,

the amount of such remuneration with respect to which such taxes have been paid shall, upon the request of such individual (fled on or before January 1, 1959, and in such form and manner, and with such official, as may be prescribed by regulations made under chapter 21 of the Internal Revenue Code of 1954), be deemed to constitute remuneration for employment as defined in section 210 of the Social Security Act and section 1426(b) of the Internal Revenue Code of 1939 or section 3121(b) of the Internal Revenue Code of 1954, as the case may be, and such individual shall be deemed to have concurred in the filing of the waiver certificate filed by such organization under section 1426(1) (1) of the Internal Revenue Code of 1939 or section 3121(k) (1) of the Internal Revenue Code of 1954.

[Sec. 403, Social Security Amendments 1954 as amended by sec. 401, Social Security Amendments 1956; Act of Aug. 27, 1958 (Pub. Law 85-785, 72 Stat. 938); sec. 105(b)(6), Social Security Amendments 1960]

[T.D. 6744, 29 F.R. 8315, July 2, 1964, as amended by T.D. 6983, 33 F.R. 18017, Dec. 4, 1968]

§ 31.3121(k)-1

Waiver of exemption

from taxes. (a) Who may file a waiver certificate-(1) In general. If services performed in the employ of an organization are excepted from employment under section 3121(b) (8) (B), the organization may file a waiver certificate on Form SS-15, together with a list on Form SS15a, certifying that it desires to have the Federal old-age, survivors, and disability insurance system established by title II of the Social Security Act extended to services performed by its employees. (For provisions relating to the exception

under section 3121(b) (8) (B), see §§ 31.3121(b) (8) and 31.3121(b) (8)-2.) A certificate in effect under section 1426 (1) of the Internal Revenue Code of 1939 on December 31, 1954, remains in effect under, and is subject to the provisions of, section 3121(k). If the period covered by a certificate filed under section 3121 (k), or under section 1426(1) of the Internal Revenue Code of 1939, is terminated by an organization, a certificate may not thereafter be filed by the organization under section 3121(k). For regulations relating to certificates filed under section 1426 (1) of the Internal Revenue Code of 1939, see 26 CFR (1939) 408.216 (Regulations 128).

(2) Organizations having two separate groups of employees. If an organization is eligible to file a certificate under section 3121(k), and the organization employs both individuals who are in positions covered by a pension, annuity, retirement, or similar fund or system established by a State or by a political subdivision thereof and individuals who are not in such positions, the organization shall divide its employees into two separate groups for purposes of any certificate filed after August 28, 1958. One group shall consist of all employees who are in positions covered by such a fund or system and (i) are members of such fund or system, or (ii) are not members of such fund or system but are eligible to become members thereof. The other group shall consist of all remaining employees. An organization which has so divided its employees into two groups may file a certificate after August 28, 1958, with respect to the employees in either group, or may file a separate certificate after such date with respect to employes in each group.

(3) Certificates filed before September 14, 1960. A certificate filed before September 14, 1960, is void unless at least two-thirds of the employees, determined on the basis of the facts which existed as of the date the certificate was filed, concurred in the filing of the certificate, and the organization certified to such concurrence in the certificate. All individuals who were employees of the organization within the meaning of section 3121(d) (see § 31.3121(d)-1) shall be included in determining whether two-thirds of the employees of the organization concurred in the filing of the certificate; except that there shall not be included (i) those em

ployees who at the time of the filing of the certificate were performing for the organization services only of the character specified in paragraphs (8) (A), (10) (B), and (13) of section 3121(b) (see §§ 31.3121(b) (8)-1, 31.3121(b) (10)−2, and 31.3121 (b) (13) −1, respectively), (ii) those alien employees who at the time of the filing of the certificate were performing services for such organization under an arrangement which provided for the performance only of services outside the United States not on or in connection with an American vessel or American aircraft, and (iii) in connection with certificates filed after August 28, 1958, those employees who at the time of the filing of the certificate were in a group to which such certificate was not applicable because of the provisions of section 3121(k) (1) (E). (See subparagraph (2) of this paragraph.) As used in this subparagraph, the term "alien employee" does not include an employee who was a citizen of the Commonwealth of Puerto Rico or a citizen of the Virgin Islands, and the term "United States" includes Puerto Rico and the Virgin Islands.

(b) Execution and amendment of certificate—(1) Use of prescribed forms. An organization filing a certificate pursuant to section 3121 (k) shall use Form SS-15, in accordance with the regulations and instructions applicable thereto. The certificate may be filed only if it is accompanied by a list on Form SS-15a, containing the signature, address, and social security account number, if any, of each employee, if any, who concurs in the filing of the certificate. (For provisions relating to account numbers, see § 31.6011(b)-2.) If no employee concurs in a certificate filed after September 13, 1960, that fact should be stated on the Form SS-15a. (For provisions relating to the concurrence of employees in certificates filed before September 14, 1960, see paragraph (a) (3) of this section.)

(2) Amendment of list on Form SS15a-(i) Certificate filed after August 28, 1958. The list on Form SS-15a accompanying a certificate filed after August 28, 1958, under section 3121(k), may be amended at any time before the expiration of the twenty-fourth month following the calendar quarter in which the certificate is filed, by filing a supplemental list or lists on Form SS-15a Supplement, containing the signature, address, and social security account

number, if any, of each additional employee who concurs in the filing of the certificate.

(ii) Certificate filed before August 29, 1958. The list on Form SS-15a which accompanied a certificate filed before August 29, 1958, under section 3121(k) or under section 1426(1) of the Internal Revenue Code of 1939, may be amended by filing a supplemental list or lists on Form SS-15a Supplement at any time after August 31, 1954, and before the expiration of the twenty-fourth month following the first calendar quarter for which the certificate was in effect, or before January 1, 1959, whichever is the later.

(3) Where to fi'e certificate or amendment. The certificate on Form SS-15 and accompanying list on Form SS-15& of an organization which is required to make a return on Form 941 pursuant to § 31.6011(a)-1 or § 31.6011(a)-4 shall be filed with the district director with whom such return is filed. The Form SS-15 and Form SS-15a of any other organization shall be filed in accordance with the provisions of § 31.6091-1 which are otherwise applicable to returns. Each Form SS-15a Supplement shall be filed with the district director with whom the related Forms SS-15 and SS-15a were filed.

(c) Effect of waiver—(1) In general. The exception from employment under section 3121(b) (8) (B) does not apply to services with respect to which a certificate, filed pursuant to section 3121(k), or section 1426 (1) of the Internal Revenue Code of 1939, is in effect. (See §§ 31.3121 (b) (8) and 31.3121(b) (8)-2.) If an organization has divided its employees into two groups, as set forth in paragraph (a) (2) of this section, a certificate filed with respect to either group shall have no effect with respect to services performed by an employee as a member of the other group; and the provisions of this subparagraph shall apply as if each group were separately employed by a different organization. A certificate is not terminated if the organization loses its exemption under section 501(a) as an organization of the character described in section 501(c) (3), but continues effective with respect to any subsequent periods during which the organization is so exempt. The certificate of an organization may be in effect without being applicable to services performed by every employee of the organization. Subpara

graph (2) of this paragraph relates to the beginning of the period for which a certificate is in effect. Subparagraph (3) of this paragraph relates to the services with respect to which a certificate is in effect. Even though a certificate is in effect with respect to the services of an employee, such services may be excepted from employment under some provision of section 3121 (b) other than paragraph (8) (B) thereof. For example, service performed in any calendar quarter in the employ of an organization described in section 501(c)(3) and exempt from income tax under section 501(a) is excepted from employment under section 3121(b) (10) (A) if the remuneration for such service is less than $50, regardless of whether the organization files a certificate.

(2) Beginning of effective period of waiver (i) Certificate filed after July 30, 1965. A certificate filed after July 30, 1965, by an organization pursuant to section 3121(k) shall be in effect for the period beginning with one of the following dates, which shall be designated by the organization on the certificate:

(a) The first day of the calendar quarter in which the certificate is filed,

(b) The first day of the calendar quarter immediately following the quarter in which the certificate is filed, or

(c) The first day of any calendar quarter preceding the calendar quarter in which the certificate is filed, except that such date may not be earlier than the first day of the 20th calendar quarter preceding the quarter in which such certificate is filed. Thus, a certificate filed in December 1965 may be made effective, pursuant to this subdivision (c), for the period beginning with the first day of the calendar quarter beginning October 1, 1960, or the first day of any other calendar quarter beginning after October 1, 1960, and before October 1, 1965.

(ii) Certificate filed after August 28, 1958, and before July 31, 1965. A certificate filed after August 28, 1958, and before July 31, 1965, by an organization pursuant to section 3121(k) shall be in effect for the period beginning with one of the following dates, which shall be designated by the organization on the certificate:

(a) The first day of the calendar quarter in which the certificate is filed,

(b) The first day of the calendar quarter immediately following the quarter in which the certificate is filed, or

(c) The first day of any calendar quarter preceding the calendar quarter in which the certificate is filed, except that, in the case of a certificate filed before 1960, such date may not be earlier than January 1, 1956, and in the case of a certificate filed after 1959 (but before July 31, 1965), such date may not be earlier than the first day of the fourth calendar quarter preceding the quarter in which the certificate is filed. Thus, a certificate filed in December 1959 may be made effective for the calendar quarter beginning January 1, 1956; but a certificate filed in January 1960 may not be made effective for a calendar quarter beginning before January 1, 1959.

(iii) Certificate filed after 1956 and before August 29, 1958. A certificate filed by an organization after 1956 and before August 29, 1958, pursuant to section 3121(k), became effective for the period beginning with one of the following dates, as designated by the organization on the certificate:

(a) The first day of the calendar quarter in which the certificate was filed, or

(b) The first day of the calendar quarter immediately following the quarter in which the certificate was filed.

(iv) Certificate filed before 1957. A certificate filed before 1957 pursuant to section 3121(k) became effective for the period beginning with the first day following the close of the calendar quarter in which the certificate was filed. In no case, however, shall a certificate filed under the provisions of section 3121(k) be in effect with respect to services performed before January 1, 1955. (For regulations relating to waiver certificates filed under section 1426 (1) of the Internal Revenue Code of 1939, see 26 CFR (1939) 408.216 (Regulations 128).)

(3) Services to which certificate applies-(i) In general. If an organization's certificate is in effect (see subparagraph (2) of this paragraph), the certificate becomes effective with respect to services performed in its employ by each individual (a) who enters the employ of the organization after the calendar quarter in which the certificate is filed, as set forth in subdivision (ii) of this subparagraph, or (b) whose signature appears on the list on Form SS-15a, as set forth in subdivision (iii) of this subparagraph, or (c) whose signature appears on a Form SS-15a Supplement, as set forth in subdivision (iv) or (v) of this subparagraph.

99-156 O-69-6

The first date on which such a certificate becomes effective with respect to an employee's services shall be the earliest date applicable under this subparagraph. An organization's certificate is not effective with respect to the services of an employee who is in its employ in the calendar quarter in which the certificate is filed and who does not sign Form SS-15a or Form SS-15a Supplement, so long as his employment relationship with the organization, at the close of the calendar quarter in which the certificate is filed and thereafter, continues without interruption.

(ii) Employee hired after quarter in which certificate is filed. If an individual enters the employ of an organization on or after the first day following the close of the calendar quarter in which the organization files a certificate pursuant to section 3121(k), the certificate shall be in effect with respect to services performed by the individual in the employ of the organization on and after the day he enters the employ of the organization. A former employee of the organization who is rehired on or after the first day following the close of the calendar quarter in which such a certificate is filed shall be considered to have entered the employ of the organization after such calendar quarter, regardless of whether such individual concurred in the filing of the certificate.

(iii) Employee who signs Form SS-15a. A certificate on Form SS-15 filed by an organization pursuant to section 3121(k) shall be in effect with respect to services performed by an individual in the employ of the organization on and after the first day for which the certificate is in effect, if such individual's signature appears on the list on Form SS-15a which accompanies such certificate.

(iv) Employee who signs Form SS-15a Supplement to concur in certificate filed after August 28, 1958. If the list on Form SS-15a accompanying a certificate filed after August 28, 1958, by an organization pursuant to section 3121(k) is amended in accordance with paragraph (b) (2) (i) of this section by the filing of a supplemental list on Form SS-15a Supplement, the certificate shall be in effect with respect to the services of each individual whose signature appears on the supplemental list, performed in the employ of the organization—

(a) On and after the first day for which the certificate is in effect, if the supplemental list is filed on or before the last day of the month following the calendar quarter in which the certificate is filed, or

(b) On and after the first day of the calendar quarter in which the supplemental list is filed, if such list is filed after the close of the first month following the calendar quarter in which the certificate is filed.

(v) Employee who signed Form SS-15a Supplement to concur in certificate filed before August 29, 1958. If the list on Form SS-15a which accompanied a certificate filed before August 29, 1958, by an organization pursuant to section 3121 (k), or pursuant to section 1426 (1) of the Internal Revenue Code of 1939, was amended in accordance with paragraph (b) (2) (ii) of this section by the filing of a supplemental list on Form SS-15a Supplement, the certificate shall be in effect with respect to the services of each individual whose signature appears on the supplemental list, performed in the employ of the organization

(a) On and after the first day for which the certificate is in effect, if the supplemental list was filed on or before the last day of the month following the first calendar quarter for which the certificate was in effect, or

(b) On and after the first day following the close of the calendar quarter in which the supplemental list was filed, but not before January 1, 1955, if such list was filed after the close of the first month following the first calendar quarter for which the certificate is in effect.

(4) Administrative provisions applicable when certificate has retroactive effect. For purposes of computing interest and for purposes of section 6651 (relating to addition to tax for failure to file tax return), in any case in which a certificate filed pursuant to section 3121(k) (1) is effective pursuant to section 3121 (k) (1) (B) (iii) (as originally enacted and as amended by section 316(a) of the Social Security Amendments of 1965) for one or more calendar quarters prior to the quarter in which the certificate is filed, the due date for the return and payment of the tax for such prior calendar quarters resulting from the filing of such certificate shall be the last day of the calendar month following the cal