[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)(4)-1]

[Page 225-226]
 
                       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)(4)-1  Period during which withholding exemption 
certificate remains in effect.

    (a) In general. Except as provided in paragraphs (b) and (c) of this 
section, a withholding exemption certificate which takes effect under 
section 3402(f) of the Internal Revenue Code of 1954, or which on 
December 31, 1954, was in effect under section 1622(h) of the Internal 
Revenue Code of 1939, shall continue in effect with respect to the 
employee until another withholding exemption certificate takes effect 
under section 3402(f). Paragraphs (b) and (c) of this section are 
applicable only for

[[Page 226]]

withholding exemption certificates furnished by the employee to the 
employer before January 1, 1982. See Sec. 31.3402(f)(4)-2 for the rules 
applicable to withholding exemption certificates furnished by the 
employee to the employer after December 31, 1981.
    (b) Withholding allowances under section 3402(m) for itemized 
deductions. In no case shall the portion of a withholding exemption 
certificate relating to withholding allowances under section 3402(m) for 
itemized deductions be effective with respect to any payment of wages 
made to an employee--
    (1) In the case of an employee whose liability for tax under 
subtitle A of the Code is determined on a calendar-year basis, after 
April 30 of the calendar year immediately following the calendar year 
which was his estimation year for purposes of determining the 
withholding allowance or allowances claimed on such exemption 
certificate, or
    (2) In the case of an employee to whom paragraph (c)(1) of this 
section does not apply, after the last day of the fourth month 
immediately following his taxable year which was his estimation year for 
purposes of determining the withholding allowance or allowances claimed 
on such exemption certificate.
    (c) Statements under section 3402(n) eliminating requirement of 
withholding. The statements described in Sec. 31.3402(n)-1 made by an 
employee with respect to his preceding taxable year and current taxable 
year shall be deemed to have been made also with respect to his current 
taxable year and his taxable year immediately thereafter, respectively, 
until either a new withholding exemption certificate furnished by the 
employee takes effect or the existing certificate which contains such 
statements expires. In no case shall a withholding exemption certificate 
which contains such statements be effective with respect to any payment 
of wages made to an employee--
    (1) In the case of an employee whose liability for tax under 
subtitle A is determined on a calendar-year basis, after April 30 of the 
calendar year immediately following the calendar year which was his 
original current taxable year for purposes of such statements, or
    (2) In the case of an employee to whom paragraph (c)(1) of this 
section does not apply, after the last day of the fourth month 
immediately following his original current taxable year for purposes of 
such statements.

(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. 7048, 35 FR 10291, June 24, 1970, as amended by T.D. 7065, 35 FR 
16539, Oct. 23, 1970; T.D. 7915, 48 FR 44073, Sept. 27, 1983]