[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)-2]

[Page 226-227]
 
                       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)-2  Effective period of withholding exemption certificate.

    (a) In general. Except as provided in paragraphs (b) and (c) of this 
section, a withholding exemption certificate that takes effect under 
section 3402(f) of the Internal Revenue Code of 1954, or that 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 withholding exemption certificates furnished by the 
employee to the employer after December 31, 1981. See Sec. 
31.3402(f)(4)-1 for the rules applicable to withholding exemption 
certificates furnished by the employee to the employer before January 1, 
1982.
    (b) Withholding allowances under section 3402(m). See paragraphs (b) 
and (c) of Sec. 31.3402(f)(2)-1 (relating to withholding exemption 
certificates) for information as to when an employee claiming 
withholding allowances under section 3402(m) and the regulations 
thereunder must file a new withholding exemption certificate with his 
employer.
    (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 effective until either a new withholding exemption 
certificate furnished by the employee takes effect or the existing

[[Page 227]]

certificate that contains such statements expires. In no case shall a 
withholding exemption certificate that 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 February 15 of 
the calendar year following the estimation year, or
    (2) In the case of an employee to whom paragraph (c)(1) of this 
section does not apply, after the 15th day of the 2nd calendar month 
following the last day of the estimation year.
    (d) Estimation year. The estimation year is the taxable year 
including the day on which the employee files the withholding exemption 
certificate with his employer, except that if the employee files the 
withholding exemption certificate with his employer and specifies on the 
certificate that the certificate is not to take effect until a specified 
future date, the estimation year shall be the taxable year including 
that specified future date.

(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. 7915, 48 FR 44073, Sept. 27, 1983]