SEC. 1402-Continued (g) (added 1960)-Continued (h) (added) tained, the amount credited or refunded (including any interest under section 6611) is repaid on or before such date, then, for purposes of this chapter and chapter 21, any amount of such remuneration which is paid to such individual before the calendar quarter in which such request is filed (or before the succeeding quarter if such certificate first becomes effective with respect to services performed by such individual in such succeeding quarter), and with respect to which no tax (other than an amount erroneously paid as tax) has been paid under chapter 21, shall be deemed to constitute net earnings from self-employment and not remuneration for employment. For purposes of section 3121(b) (8) (B) (ii) and (iii), if the certificate filed by such organization purusant to section 3121 (k) is not effective with respect to services performed by such individual on or before the first day of the calendar quarter in which the request is filed, such individual shall be deemed to have become an employee of such organization (or to have become a member of a group described in section 3121 (k) (1) (E)) on the first day of the succeeding quarter." Effective Date: September 13, 1960-the date of enactment. July 30, 1965, H.R. 6675, P.L. 89-97, § 319 (c), 79 Stat. 391-392: Amended Sec. 1402 by adding at the end thereof, after subsection (g) (as added by P.L. 86-778, § 105(c)(1)), the following new subsection (h): "(h) MEMBERS OF CERTAIN RELIGIOUS FAITHS.— "(1) EXEMPTION.-Any individual may file an application (in such form and manner, and with such official, as may be prescribed by regulations under this chapter) for an exemption from the tax imposed by this chapter if he is a member of a recognized religious sect or division thereof and is an adherent of established tenets or teachings of such sect or division by reason of which he is conscientiously opposed to acceptance of the benefits of any private or public insurance which makes payments in the event of death, disability, old-age, or retirement or makes payments toward the cost of, or provides services for, medical care (including the benefits of any insurance system established by the Social Security Act). Such exemption may be granted only if the application contains or is accompanied by "(A) such evidence of such individual's membership in, and adherence to the tenets or teaching of, the sect or division thereof as the Secretary or his delegate may require for purposes of determining such individual's compliance with the preceding sentence, and "(B) his waiver of all benefits and other payments under titles II and XVIII of the Social Security Act on the basis of his wages and self-employment income as well as all such benefits and other payments to him on the basis of the wages and self-employment income of any other person, and only if the Secretary of Health, Education, and Welfare finds that "(C) such sect or division thereof has the established tenets or teachings referred to in the preceding sentence, "(D) it is the practice, and has been for a period of time which he deems to be substantial, for members of such sect or division thereof to make provision for their dependent SEC. 1402-Continued (h) (added 1965)—Continued members which in his judgment is reasonable in view of their general level of living, and "(E) such sect or division thereof has been in existence at all times since December 31, 1950. An exemption may not be granted to any individual if any benefit or other payment referred to in subparagraph (B) became payable (or, but for section 203 or 222(b) of the Social Security Act, would have become payable) at or before the time of the filing of such waiver. "(2) TIME FOR FILING APPLICATION. For purposes of this subsection, an application must be filed "(A) In the case of an individual who has self-employment income (determined without regard to this subsection and subsection (c)(6)) for any taxable year ending before December 31, 1965, on or before April 15, 1966, and "(B) In any other case, on or before the time prescribed for filing the return (including any extension thereof) for the first taxable year ending on or after December 31, 1965, for which he has self-employment income (as so determined). "(3) PERIOD FOR WHICH EXEMPTION EFFECTIVE.-An exemption granted to any individual pursuant to this subsection shall apply with respect to all taxable years beginning after December 31, 1950, except that such exemption shall not apply for any taxable year (A) beginning (i) before the taxable year in which such individual first met the requirements of the first sentence of paragraph (1), or (ii) before the time as of which the Secretary of Health, Education, and Welfare finds that the sect or division thereof of which such individual is a member met the requirements of subparagraphs (C) and (D), or ‘(B) ending (i) after the time such individual ceases to meet the requirements of the first sentence of paragraph (1), or (ii) after the time as of which the Secretary of Health, Education, and Welfare finds that the sect or division thereof of which he is a member ceases to meet the requirements of subparagraph (C) or (D). "(4) APPLICATION BY FIDUCIARIES OR SURVIVORS.-In any case where an individual who has self-employment income dies before the expiration of the time prescribed by paragraph (2) for filing an application for exemption pursuant to this subsection, such an application may be filed with respect to such indivdiual within such time by a fiduciary acting for such individual's estate or by such individual's survivor (within the meaning of section 205(c)(1)(C) of the Social Security Act)." Applicability: With respect to taxable years beginning after December 31, 1950. (Id., § 319(e), 79 Stat. 392. See n. 333, p. 522 above.) ANCILLARY PROVISIONS: Aug. 30, 1957, H.R. 8892, P.L. 85-239, § 4, 71 Stat. 522: "SEC. 4. (a) Section 3, and the amendments made by the first section of this Act [amendments to Sec.1402 (e) (2) and (e) (3) above, pages 524 and 525, respectively] shall apply with respect to monthly insurance benefits under title II of the Social Security SEC. 1402-Continued ANCILLARY PROVISIONS (P.L. 85-239, § 4)-Continued Act for months beginning after, and lump sum death payments under such title in the case of deaths occurring after, the date of the enactment of this Act [Aug. 30, 1957]. "(b) Notwithstanding subsection (a), in the case of any individual who "(1) (A) has remuneration which is deemed, by reason of section 3, to constitute remuneration for employment for purposes of title II of the Social Security Act, or "(B) has income which constitutes net earnings from selfemployment under such title by reason of the filing of a certificate pursuant to section 1402 (e) (3) (A) or (B) of the Internal Revenue Code of 1954, and "(2) was entitled to monthly insurance benefits under title II of the Social Security Act for the month in which this Act is enacted, section 3 and the amendments made by the first section of this Act shall apply with respect to monthly insurance benefits under such title based on his wages and selfemployment income only if he, or any other person entitled to monthly insurance benefits under such title on the basis of such wages and self-employment income, files, on or after the date of enactment of this Act, an application for recomputation by reason of this Act. Such recomputation shall be made in the manner provided in title II of the Social Security Act as in effect at the time of the last previous computation or recomputation of such individual's primary insurance amount and as though the application therefor was filed in the month in which the application for such last previous computation or recomputation was filed. No recomputation under this subsection shall be regarded as a recomputation under section 215 (f) of the Social Security Act. Any such recomputation shall be effective for and after the twelfth month before the month in which the application therefor is filed, but in no case for any month which begins on or prior to the date of the enactment of this Act. Any such recomputation shall be effective only if it results in a higher primary insurance amount. "(c) The preceding provisions of this section shall not render erroneous any monthly insurance benefits under title II of the Social Security Act for the month in which this Act is enacted or any prior month." The "Section 3" referred to was as follows: "SEC. 3. Remuneration which is deemed under section 1402(e) (4) of the Internal Revenue Code of 1954 to constitute remuneration for employment shall also be deemed, notwithstanding sections 210(a) (8) (A) and 211 (c) of the Social Security Act, to constitute remuneration for employment (and not net earnings from self-employment) for the purposes of title II of such Act." SEC. 1403. MISCELLANEOUS PROVISIONS (68A Stat. 355): (b) (2)______ Sept. 13, 1960, H.R. 12580, P.L. 86-778, § 103(m), 74 Stat. 938: Amended paragraph (2) of Sec. 1403(b) 338 (cross references) by inserting after "Virgin Islands" ", Guam, American Samoa,". Effective Date: September 13, 1960-the date of enactment. 338 Section 1403 originally read as follows (68A Stat. 355): "SEC. 1403. MISCELLANEOUS PROVISIONS. "(a) TITLE OF CHAPTER.-This chapter may be cited as the "Self-Employment Contributions Act of 1954". "(b) CROSS REFERENCES. "(1) For provisions relating to returns, see section 6017. "(2) For provisions relating to collection of taxes in Virgin Islands and Puerto Rico, see section 7651.” CHAPTER 3-WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS AND TAX-FREE COVENANT BONDS (68A Stat. 357, ff.): NOTE: The table of subchapters for Chapter 3, and the heading and table of sections of Subchapter A of such Chapter 3, read as follows (68A Stat. 357): "SUBCHAPTER A. Nonresident aliens and foreign corporations. "SUBCHAPTER B. Tax-free covenant bonds. "SUBCHAPTER C. Application of withholding provisions." "Subchapter A-Nonresident Aliens and Foreign Corporations The above tables and heading have not been amended. SEC. 1441. WITHHOLDING OF TAX ON NONRESIDENT ALIENS (68A Stat. 357-358): (a). Do.. (rate changed) (b). Sept. 21, 1961, H.R. 8666, P.L. 87-256, § 110(d) (1), 75 Stat. 536: Amended Sec. 1441 (a) 339 by inserting before the period at the end the following: ', except that in the case of any item of income specified in the second sentence of subsection (b), the tax shall be equal to 18 percent of such item". Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 302(c), 78 Stat. 146: Amended Sec. 1441(a) (as amended by P.L. 87-256, § 110(d)(1)) by striking out "18 percent" and inserting in lieu thereof "14 percent". Applicability: Payments made after March 4, 1964-the seventh day (1964 was a leap year) following the date (February 26, 1964) of enactment. (Id., § 302(d), 78 Stat. 146.) Sept. 2, 1958, H.R. 8381, P.L. 85-866, § 40(b), 72 Stat. 1638: Amended Sec. 1441 (b) 340 by inserting after "section 402(a) (2),”– "section 403(a)(2),”. 339 Subsection (a) of section 1441 originally read as follows (68A Stat. 357): "(a) GENERAL RULE.-Except as otherwise provided in subsection (c), all persons, in whatever capacity acting (including lesees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of the United States) having the control, receipt, custody, disposal, or payment of any of the items of income specified in subsection (b) (to the extent that any of such items constitutes gross income from sources within the United States), of any nonresident alien individual, or of any partnership not engaged in trade or business within the United States and composed in whole or in part of nonresident aliens, shall (except in the cases provided for in section 1451 and except as otherwise provided in regulations prescribed by the Secretary or his delegate under section 874) deduct and withhold from such items a tax equal to 30 percent thereof." 240 Subsection (b) of Section 1441 originally read as follows (68A Stat. 357): "(b) INCOME ITEMS.-The items of income referred to in subsection (a) are interest (except interest on deposits with persons carrying on the banking business paid to persons not engaged in business in the United States), dividends, rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable annual or periodical gains, profits, and income, and amounts described in section 402(a)(2), section 631(b) and (c), and section 1235, which are considered to be gains from the sale or exchange of capital assest." 60-448-67-35 SEC. 1441-Continued (b) (amended 1958)-Continued Do.... Do..... (rate changed) ((c)4). (in full) Effective Date: September 3, 1958-the day following the date of enactment. Sept. 21, 1961, H.R. 8666, P.L. 87-256, § 110(d) (2), 75 Stat. 536: "The items of income referred to in subsection (a) from which tax shall be deducted and withheld at the rate of 18 percent are "(1) that portion of any scholarship or fellowship grant which is received by a nonresident alien individual who is temporarily present in the United States as a nonimmigrant under subparagraph (F) or (J) of section 101 (a) (15) of the Immigration and Nationality Act, as amended, and which is not excluded from gross income under section 117(a)(1) solely by reason of section 117(b)(2) (B); and "(2) amounts described in subparagraphs (A), (B), (C), and (D) of section 117(a) (2) which are received by any such nonresident alien individual and which are incident to a scholarship or fellowship grant to which section 117(a) (1) applies, but only to the extent such amounts are includible in gross income." Applicability: Payments made after December 31, 1961. (Id., § 110(h) (2), 75 Stat. 537.) Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 302(c), 78 Stat. 146: Amended Sec. 1441(b) (as amended by P.L. 87-256, § 110(d) (2)) by striking out "18 percent" and inserting in lieu thereof "14 percent". Applicability: Payments made after March 4, 1964-the seventh day (February had 29 days) following the date (February 26, 1964) of enactment. (Id., § 302(d), 78 Stat. 146.) Sept. 21, 1961, H.R. 8666, P.L. 87-256, § 110(d) (3), 75 Stat. 536: "(4) COMPENSATION OF CERTAIN ALIENS.-Under regulations prescribed by the Secretary or his delegate, there may be exempted from deduction and withholding under subsection (a) the compensation for personal services of "(A) nonresident alien individuals who enter and leave the United States at frequent intervals, and "(B) a nonresident alien individual for the period he is temporarily present in the United States as a nonimmigrant under subparagraph (F) or (J) of section 101 (a) (15) of the Immigration and Nationality Act, as amended.” 341 Paragraph (4) of section 1441(c) originally read as follows (68A Stat. 358): "(4) COMPENSATION OF CERTAIN ALIENS.-Under regulations prescribed by the Secretary or his delegate, there may be exempted from deduction and withholding under subsection (a) the compensation for personal services of nonresident alien individuals who enter and leave the United States at frequent intervals." |