[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR31.3402(f)(3)-1]

[Page 225]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 31_EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE--Table of Contents
 
              Subpart E_Collection of Income Tax at Source
 
Sec. 31.3402(f)(3)-1  When withholding exemption certificate takes effect.

    (a) A withholding exemption certificate furnished the employer in 
any case in which no previous withholding exemption certificate is in 
effect with such employer, shall take effect as of the beginning of the 
first payroll period ending, or the first payment of wages made without 
regard to a payroll period, on or after the date on which such 
certificate is so furnished.
    (b) A withholding exemption certificate furnished the employer in 
any case in which a previous withholding exemption certificate is in 
effect with such employer shall, except as hereinafter provided, take 
effect with respect to the first payment of wages made on or after the 
first status determination date which occurs at least 30 days after the 
date on which such certificate is so furnished. However, at the election 
of the employer, except as hereinafter provided, such certificate may be 
made effective with respect to any payment of wages made on or after the 
date on which such certificate is so furnished and before such status 
determination date.
    (c) A withholding exemption certificate furnished the employer 
pursuant to section 3402(f)(2)(C) (see paragraph (c) of Sec. 
31.3402(f)(2)-1 or paragraph (b)(2)(ii) of Sec. 31.3402(1)-1) which 
effects a change for the next calendar year, shall not take effect, and 
may not be made effective, with respect to the calendar year in which 
the certificate is furnished. A withholding exemption certificate 
furnished the employer by an employee who determines his income tax 
liability on a basis other than a calendar- year basis, as required by 
paragraph (b)(4) of Sec. 31.3402(f)(2)-1, which effects a change for 
the employee's next taxable year, shall not take effect, and may not be 
made effective, with respect to the taxable year of the employee in 
which the certificate is furnished.
    (d) For purposes of this section, the term ``status determination 
date'' means January 1, May 1, July 1, and October 1 of each year.

(Secs. 3402(i) and (m) and 7805 of the Internal Revenue Code of 1954 (26 
U.S.C. 3402 (i) and (m), 95 Stat. 172, 184; 26 U.S.C. 7805, 68A Stat. 
917))

[T.D. 6516, 25 FR 13106, Dec. 20, 1960, as amended by T.D. 7048, 35 FR 
10291, June 24, 1970; T.D. 7065, 35 FR 16539, Oct. 23, 1970; T.D. 7115, 
36 FR 9234, May 21, 1971; T.D. 7915, 48 FR 44073, Sept. 27, 1983]