(7) Section 854(a) of such code is amended by striking out "section 34(a) (relating to credit for dividends received by individuals),”. (8) Section 854(b) of such code is amended by striking out "the credit under section 34(a)," in paragraph (1) and by striking out "the credit under section 34," in paragraph (2). (9) Section 1375(b) of such code is amended by striking out "section 34, section 37, or section 116" and inserting in lieu thereof "section 37 or 116". (10) Section 6014(a) of such code is amended by striking out “34 or". (c) Effective Date.-The amendments made by subsection (b) shall apply only with respect to taxable years beginning after December 31, 1960. On motion by Mr. JOHNSON of Texas, and by unanimous consent, Ordered, That debate on the amendment be limited to 15 minutes on each side TITLE III-ADDITIONAL PROVISIONS Sec. 301. Depletion rate for certain clays and treatment processes considered as mining for computing percentage depletion in the case of minerals and ores. (a) Depletion Rate for Certain Clays. Subsection (b) of section 613 (relating to percentage depletion rates) is amended as follows: (1) Paragraph (3) is amended to read as follows: "(3) 15 percent "(A) metal mines (if paragraph (2) (B) does not apply), rock, asphalt, and vermiculite; and "(B) if paragraph (5) (B) does not apply, ball clay, bentonite, china clay, sagger clay, and clay used or sold for use for purposes dependent on its refractory properties." (2) Paragraph (5) is amended to read as follows: "(5) 5 percent— "(A) gravel, mollusk shells (including clam shells and oyster shells), peat, pumice, sand, scoria, shale, and stone, except stone described in paragraph (6); "(B) clay used, or sold for use, in the manufacture of building or paving brick, drainage and roofing tile, sewer pipe, flower pots, and kindred products; and "(C) if from brine wells—bromine, calcium chloride, and magnesium chloride." (3) Paragraph (6) is amended by striking "refractory and fire clay,”. (b) Treatment Processes Considered as Mining-Subsection (c) of section 613 (relating to the definition of gross income from property) is amended as follows: (1) Paragraph (2) is amended to read as follows: "(2) Mining.-The term 'mining' means the extraction of the ores or minerals from the ground, the treatment processes considered as mining described in paragraphs (3) and (4), and so much of the transportation of ores or minerals (whether or not by common carrier) from the point of extraction from the ground to the plants or mills in which such treatment processes are applied thereto as is not in excess of 50 miles unless the Secretary or his delegate finds that the physical and other requirements are such that the ore or mineral must be transported to a greater distance to such plant or mills." (2) Paragraph (3) is redesignated paragraph (5). (3) Paragraph (4) is deleted and the following paragraphs are inserted in lieu thereof: "(3) Treatment processes considered as mining.-The following treatment processes where applied by the mine owner or operator with respect to the minerals or ores extracted from the ground by him shall be considered as 'mining': "(A) In the case of coal-cleaning, breaking, sizing, dust allaying, treat ing to prevent freezing, and loading for shipment; "(B) In the case of sulfur recovered by the Frasch process-pumping to vats, cooling, breaking, and loading for shipment; "(C) In the case of all other minerals or ores-(i) where applied to crude minerals or ores-crushing, grinding, sorting, screening, washing, and drying to remove free moisture; (ii) beneficiation by concentration, and the processes necessary thereto; (iii) beneficiation by cyanidation, leaching, crystallization, or precipitation, and the processes necessary thereto; (iv) any additional process, if necessary, to bring the mineral or ore to form and condition suitable for shipment; and (v) loading for shipment. For pur poses of this subparagraph, the term 'beneficiation by concentration' means the application of processes solely for the purpose of eliminating waste, or separating the mineral or ore from other minerals or ores, by gravity, floelectrostatic tation, amalgamation, means, magnetic means, or substantially equivalent processes. The processes referred to in (iv) are those processes which are necessary to bring the mineral or ore to the physical form and condition in which it is capable of being transported as distinguished from those processes applied to make the mineral or ore salable. The term 'loading for shipment' shall not include the cost of packaging unless otherwise provided for under (iv), nor shall it include the cost of containers, bags, or any similar items; "(D) The pulverization of talc, the burning of magnesite, the furnacing of quicksilver ores, and the sintering and nodulizing of phosphate rock. "(4) Treatment processes not considered as mining.-The following treatment processes shall not be considered as 'mining': "(A) In the case of all minerals or ores-electrolytic deposition, roasting, calcining, thermal or electric smelting, refining, polishing, fine pulverization, blending with other materials, treatment effecting a chemical change, thermal action, and molding or shaping, unless such processes are otherwise provided for in paragraph (3); and "(B) Notwithstanding any other provisions of this subsection, any treatment process which follows a process that is not considered as ‘mining' will not be considered as mining for the purpose of this subsection." Sec. 302. Effective date. The amendment made by section 301 shall be applicable only with respect to taxable years beginning after December 31, 1960. After debate, It was determined in/Yeas_____ 87 the affirmative_____ Nays------ 0 On motion by Mr. JOHNSON of Texas, and by unanimous consent, Ordered, That debate be limited on the following amendments: On two amendments to be proposed by Mr. CLARK, one amendment by Mr. DOUGLAS and an amendment by Mr. GORE to the amendment to be proposed by Mr. DOUGLAS, 30 minutes on each, equally divided and controlled by the proponents and the majority leader: Provided, That there be a quorum call 10 minutes before a vote on any amendment. Ordered further, That on an amendment to be proposed by Mr. MONRONEY, debate be limited to 20 minutes, to be equally divided and controlled by the proponents and the majority leader. Texas, On motion by Mr. JOHNSON of The yeas and nays, being desired by one-fifth of the Senators present, were ordered on the question of agreeing to the first amendment to be proposed by Mr. CLARK. After debate, The question being taken on agreeing to the amendment proposed by Mr. PROXMIRE, Viz, at the end of the bill add the following: Section 1. Amendment of 1954 Code. Whenever an amendment is expressed in terms of an amendment to a section or other provision, the reference shall be considered as to be made to a section or other provision of the Internal Revenue Code of 1954. Sec. 2. Withholding of Income Tax on Interest and Dividends. (a) In General.-Subtitle A (relating to income taxes) is amended by adding at the end thereof the following new chapter: "CHAPTER 7-COLLECTION OF INCOME TAX AT SOURCE ON INTEREST AND DIVIDENDS "Subchapter A. Interest. Subchapter A-Interest "Sec. 1601. Income tax collected at source on interest. "Sec. 1602. Exemptions. "Sec. 1601. Income Tax Collected at Source on Interest. "(a) Requirement of Withholding.— Every person (other than an individual) making payment after December 31, 1960, of interest shall deduct and withhold on such interest a tax equal to 20 percent of the amount thereof. If the withholding agent is unable to determine the person to whom the interest is payable, such tax shall be deducted and withheld at the time payment thereof would be made if such person were known. "(b) Interest Defined.-For purposes of this chapter, the term 'interest' means "(1) interest within the meaning of section 61 (a) (4), and "(2) in the case of an obligation described in section 454 (a) or (b) (relating to noninterest bearing obligations issued at a discount), the amount by which the amount paid on surrender or redemption of such obligation exceeds the price for which such obligation was issued. "(c) Credit for Tax Withheld. "For credit, against income tax of the recipient of the income, of amounts required to be deducted and withheld under this section, see section 39. "Sec. 1602. Exemptions. "(a) In General.-The provisions of section 1601 shall not apply to "(1) Any interest which, irrespective of the person to whom payable, is wholly exempt from taxation under chapter 1. "(2) Interest paid to— "(A) the United States, "(B) a State, a possession of the United States, a political subdivision of a State or of a possession of the United States, or the District of Columbia. "(C) a wholly owned instrumentality or agency of any one or more of the foregoing. "(3) Interest paid to or by— "(A) a foreign government, "(B) a political subdivision of a foreign government, "(C) an international organization, "(D) a wholly owned instrumentality or agency of any one or more foreign governments, political subdivisions thereof, or international organizations, "(E) a foreign corporation not engaged in trade or business within the United States, "(F) a nonresident alien individual, or "(G) a partnership not engaged in trade or business within the United States and composed in whole or part of nonresident alien individuals. "(4) Interest paid by a corporation to another corporation if both corporations are members of the same affiliated group which filed a consolidated return under chapter 6 for the preceding taxable year of the payor corporation. "(b) Identification of Recipient.Paragraphs (2) and (3) of subsection (a) shall apply with respect to any payment of interest only if, at the time of payment, the recipient of such interest has been identified to the withholding agent as a government, organization, or person described in such paragraphs. "Subchapter B-Dividends "Sec. 1611. Income tax collected at "Sec. 1611. Income Tax Collected at Source on Dividends. “(a) Requirements of Withholding.— Every person making payment after December 31, 1960, of a dividend shall deduct and withhold on such dividend a tax equal to 20 percent of the amount thereof. If the withholding agent is unable to determine the person to whom the dividend is payable, such tax shall be deducted and withheld at the time payment thereof would be made if such person were known. "(b) Dividend Defined.-For purposes of this chapter, the term 'dividend' means "(1) any distribution by a corporation which is a dividend (as defined in section 316); "(2) a payment made by a stockholder to any person as a substitute for a dividend (as defined in section 316) on which a tax is required to be deducted and withheld under this chapter; and "(3) a payment (whether or not designated as a dividend) by a mutual savings bank, savings and loan association, building and loan association, cooperative bank, homestead association, credit union, or similar organization, in respect of withdrawable or repurchasable shares, investment certificates, or deposits. "(c) Withholding Where Amount or Dividend Is Unknown.—If the withholding agent is unable to determine the portion of a distribution which is a dividend, the tax required to be deducted and withheld under this chapter shall be computed on the entire amount of the distribution. "(d) Credit for Tax Withheld.— "For credit, against the income tax of the recipient of the income, of amounts required to be deducted and withheld under this section, see section 39. "SEC. 1612. Exemptions. (a) In General.-The provisions of section 1611 shall not apply to "(1) a dividend paid in the stock or rights to acquire the stock of the distributing corporation whether or not the recipient of such stock or rights had an option to be paid in money, or other property, in lieu of such stock or rights; "(2) distributions (other than capital gain dividends described in section 852 (b) (3) (C) to shareholders which are treated under chapter 1 as amounts received on the sale or exchange of property, or distributions with respect to which gain or loss is not recognized under chapter 1 to the shareholders; "(3) any amount which is includable in gross income as a taxable dividend under the provisions of section 302 or 303 (relating to redemptions of stock), section 354(b) (relating to receipt of property on transfer to corporation controlled by the transferor), section 356 (relating to receipt of additional consideration in connection with certain reorganizations), or section 1081 (e) (2) (relating to certain distributions pursuant to order of the Securities and Exchange Commission); "(4) amounts treated under section 1373 as amounts distributed as dividends; "(5) dividends paid to "(A) the United States, "(B) a State, a possession of the United States, a political subdivision of a State or of a possession of the United States, or the District of Columbia, or "(C) a wholly owned instrumentality or agency of any one or more of the foregoing; "(6) Dividends paid to "(A) a foreign government, "(B) a political subdivision of any foreign government, "(C) an international organization, "(D) a wholly owned instrumentality or agency of any one or more foreign governments or political subdivisions thereof, or international organizations. "(E) a foreign corporation not engaged in trade or business within the United States, "(F) a nonresident alien individual, or "(G) a partnership not engaged in trade or business within the United States and composed in whole or part of nonresident alien individuals; "(7) dividends paid by a foreign corporation not engaged in trade or business within the United States; "(8) dividends paid by a Federal Reserve bank, Federal land bank, Federal home loan bank, central bank for cooperatives, or bank for cooperatives; “(9) dividends paid by a corporation to another corporation if both corporations are members of the same affiliated group which filed a consolidated return under chapter 6 for the preceding taxable year of the payor corporation. "(b) Identification of Recipient.— Paragraphs (5) and (6) of subsection (a) shall apply with respect to any payment of dividends only if, at the time of payment, the recipient of such dividends has been identified to the withholding agent as a government, organization, or person described in such paragraphs. "Subchapter C-General provisions "Sec. 1621. Returns and Payment. "(b) Governmental Payor.-If the person referred to in subsection (a) is the United States, a State or political subdivision thereof, a possession of the United States or political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing, the return and payment required by subsection (a) shall be made by any officer or employer of the United States, or of such State or political subdivision, of such possession or political subdivision, of the District of Columbia, or of such agency or instrumentality, as the case may be, having control of the payment of the interest or dividend, or appropriately designated for that purpose. "(c) Adjustment of Tax.-If more or less than the correct amount of tax due for any period under subsection (a) is paid with respect to such period, proper adjustments with respect to the tax shall be made, without interests, in such manner and at such times as may be prescribed by regulations made under this chapter. "(d) Indemnification of Withholding Agent.-A withholding agent shall not be liable, except as provided in subsection (a), to any person for the amount of any tax required to be deducted and withheld under this chapter. "Sec. 1622. Refund or Credit of Tax to Tax Exempt Organizations. "In the case of a person which is exempt from the tax imposed by chapter 1, if the amount required to be deducted and withheld as tax under this chapter with respect to interest and dividends received by it during any calendar quarter exceeds the credit claimed by and allowed to such person under section 3505 (relating to credit against employment taxes) for such quarter, the excess shall be immediately refunded or credit to such person as an overpayment of the tax imposed by this chapter, but only if claim therefor is filed (or, if no claim is filed, if credit or refund is made) after the close of such calendar quarter and on or before March 15 of the fourth calendar year beginning after the close of such calendar quarter. No interest shall be allowed or paid with respect to any such refund or credit for any period before the date on which claim for such refund or credit is filed or before March 16 of the calendar year succeeding the close of the calendar quarter in respect of which such refund or credit is claimed, whichever date is the later. "Sec. 1623. Refund of Tax to Individuals Not Required To File Income Tax Returns. "In the case of an individual who certifies (in such form and manner as the Secretary or his delegate prescribes by regulations) with respect to interest and dividends received by him during any calendar quarter that he reasonably believes (at the time of such certification) that "(1) he will not, for the taxable year of which such calendar quarter is a part, have a gross income of $600 or more, or "(2) in the case of an individual who has or will attain the age of 65 before the close of such taxable year, he will not, for such taxable year, have a gross income of $1,200 or more. the amount required to be deducted and withheld as tax under this chapter with respect to interest and dividends received by him during such calendar quarter shall be immediately refunded to him as an overpayment of the tax imposed by this chapter, but only if claim therefor is filed (or, if no claim is filed, if refund is made) after the close of such calendar quarter and on or before April 15 of the fourth calendar year beginning after the close of such calendar quarter. No interest shall be allowed or paid with respect to any such refund for any period before the date on which claim for such refund is filed or before April 16 of the calendar year succeeding the close of the calendar quarter in respect of which such refund is claimed, whichever date is the later. "Sec. 1624. Credit for Regulated Investment Companies and Personal Holding Companies. "In the case of any withholding agent which is a regulated investment company (as defined in section 851) or a personal holding company (as defined in section 542), the amount required to be deducted and withheld as tax under this chapter with respect to interest and dividends received by it during a taxable year shall be allowed, under regulations prescribed by the Secretary or his delegate, as a credit against (but not in excess of) the tax for which such withholding agent is liable under section 1621(a) in respect of dividends paid by it during such year. For purposes of this section, a dividend shall be considered as having been paid within a taxable year— "(1) in the case of a regulated investment company, if treated as paid during such taxable year under section 855 (a), or "(2) in the case of a personal holding company, to the extent elected under section 563(b), in determining the dividends paid deduction for purposes of the personal holding company tax, in the return for such year. "Sec. 1625. Failure to File Returns. "In case of a failure to make and file any return required under this chapter within the time prescribed by law or prescribed by the Secretary or his delegate in pursuance of law, unless it is shown that such failure is due to reasonable cause and not to willful neglect, the addition to the tax or taxes required to be shown on such return shall not be less than $5. "Sec. 1626. Nondeductibility of Tax in Computing Taxable In come. "Any tax deducted and withheld under this chapter shall not be allowed as a deduction in computing taxable income for the purpose of any tax on income imposed by Act of Congress. "Sec. 1627. Definitions. "For purposes of this chapter— "(1) Person.-The term ‘person' includes a government, a political subdivision of a government, and an instrumentality or agency of one or more governments or political subdivisions thereof. "(2) Nonresident Alien.-The term 'nonresident alien individual' includes an alien resident of Puerto Rico." (b) Table of Chapter.-The table of chapters for subtitle A is amended by adding at the end thereof: "Chapter 7. Collection of income tax at source on interest and dividends." Sec. 2. Credits Against Income Tax for Tax Withheld. (a) Allowance of Credit.-Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1954 (relating to credits against tax) is amended by adding at the end thereof the following new section: "Sec. 39. Credit for Tax Withheld on Interest and Dividends. "(a) General Rule.-Under regulations prescribed by the Secretary or his delegate, the amount required to be deducted and withheld under section 1601 as tax on interest and under section 1611 as tax on dividends shall be allowed to the recipient of the income as a credit against the tax imposed by this subtitle for the taxable year in which the interest or dividend is received or accrued. "(b) Partnerships, Trusts, and Estates. If the recipient of the interest or dividend is a partnership or a common trust fund, then the credit provided by subsection (a) shall not be allowed to such recipient, but the members of the partnership, or the participants in the common trust fund, as the case may be, shall be allowed their proportionate share of such share. If the recipient is an estate or trust, and if any legatee, heir, or beneficiary subject to the tax imposed by this chapter is required to include a portion of such interest or dividend in computing his taxable income, such legatee, heir, or beneficiary shall be allowed such portion of the credit as is properly allocated to him on the basis of the income allocable to him under subchapter J (sec. 641 and following, relating to estates, trusts, beneficiaries, and decedents) for the taxable year of the estate or trusts, and such portion of the credit shall not be allowed to the estate or trust. "(c) Regulated Investment Companies and Personal Holding Companies.-In the case of a regulated investment company or a personal holding company, the credit provided by subsection (a) shall be reduced by the amount of credit allowed such company under section 1624. “(d) Tax-Exempt Organizations, etc.— "(1) In general.—The credit provided by subsection (a) shall not be allowed "(A) to any recipient which is exempt from the tax imposed by chapter 1; or "(B) to an individual, with repect to interest and dividends received during any calendar quarter for which he has made a certification under section 1623. "(2) Cross references.— "(A) For refund or credit under chapter 7 in case of a recipient which is exempt from income tax, see section 1622. "(B) For refund under chapter 7 in case of an individual who is not required to file an income tax return see section 1623." (b) Table of Sections.-The table of sections for such part IV is amended by adding at the end thereof the following: "Sec. 39. Credit for tax withheld on interest and dividends." Sec. 3. Credit for Tax-Exempt Organizations. (a) Allowance of Credit.-Chapter 25 (relating to general provisions relating to employment taxes) is amended by adding at the end thereof the following new section: "Sec. 3505. Special Credit in Case of Organization Exempt From Income Tax. "(a) General Rule.-In the case of any person (including any government or political subdivision, agency, or instrumentality thereof) which is exempt from the tax imposed by chapter 1, the amount required to be deducted and withheld as tax under chapter 7 with respect to interest and dividends received by it during any calendar quarter shall be allowed, under regulations prescribed by the Secretary or his delegate, as a credit against (but not in excess of the amount shown on the return of such person as its liability (after the adjustments, if any, provided for in sections 6205(a) and 6413 (a)) for such quarter in respect of the taxes imposed by chapter 21 (Federal Insurance Contributions Act) and by chapter 24 (collection of income tax at source on wages). Such credit shall be allowed only if claim therefor is made, in accordance with such regulations, at the time of the filing of the return with respect to the taxes under chapter 21 and chapter 24 for such quarter. "(b) Cross-Reference— "For refund under chapter 7, see section 1622." (b) Table of Sections.-The table of sections for chapter 25 is amended by adding at the end thereof the following: Sec. 4. Technical Amendments. (a) Withholding of Tax on Nonresident Alien Individuals.—Section 1441(c) (relating to exceptions to the withholding of tax on nonresident alien individuals), is amended by adding at the end thereof the following new paragraph: "(7) Interest and dividends on which tax is withheld under chapter 7.-Where any person is required to deduct and withhold a tax under subsection (a) on an amount on which a tax required to be deducted and withheld under chapter 7, such person shall deduct and withhold under subsection (a) only the excess of— "(A) the amount which would be required to be deducted and withhold under subsection (a) but for the application of chapter 7, over "(B) the amount required to be deducted and withheld under chapter 7." (b) Withholding of Tax on Foreign Corporations.-Section 1442 (relating to withholding of tax on foreign corporations) is amended by striking out the period at the end thereof and inserting in lieu thereof a comma and the following: "and except that where any person is required under this section to deduct and withhold a tax on an amount on which a tax is required to be deducted and withheld under chapter 7, such person shall deduct and withhold only the excess of― "(1) the amount which would be required to be deducted and withheld under this section but for the application of chapter 7, over "(2) the amount required to be deducted and withheld under chapter 7." (c) Tax Computed by Secretary or His Delegate.-Section 6014 (relating to income tax not computed by the taxpayer) is amended (1) by striking out in subsection (a) "and whose gross income other than wages, as defined in section 3401(a), does not exceed $100,” and by inserting in lieu thereof "and whose gross income (other than wages, as defined in section 3401(a), and other than interest and dividends on which tax is required to be deducted and withheld under chapter 7) does not exceed $100,"; and (2) by inserting after "other than wages on which the tax has been withheld at the source" in subsection (b) the following: "and other than interest and dividends on which tax is required to be deducted and withheld under chapter 7". (d) Declaration of Estimated Income Tax by Individuals.-Section 6015(a) (relating to declaration of estimated income tax by individuals) is amended (1) by striking out so much of paragraph (1) thereof as precedes subparagraph (A) and inserting in lieu thereof the following: "(1) the gross income for the taxable year can reasonably be expected to consist of wages (as defined in section 3401(a)), and interest (as defined in section 101(b)) and dividends (as defined in section 1611(b)) on which tax is required to be deducted and withheld under chapter 7, and of not more than $100 from sources other than such wages, interest, and dividends, and can reasonably be expected to exceed "; and (2) by striking out so much of paragraph (2) thereof as precedes subparagraph (A) and inserting in lieu thereof the following: "(2) the gross income can reasonably be expected to include more than $100 from sources other than wages (as defined in section 3401(a)) and other than interest (as defined in section 1601 (b)) and dividends (as defined in section 1611(b)) on which a tax is required to be deducted and withheld under chapter 7, and can reasonably be expected to exceed the sum of—". (e) Information by Corporations.— Section 6042(1) (relating to returns regarding corporate dividends, etc.) is amended by adding at the end thereof the following: ", except that if the amount of dividends paid to any shareholder during a calendar year is less than $300 and tax is required to be deducted and withheld under chapter 7 on the entire amount of such dividends, no such return shall be required with respect to such shareholder for such calendar year". (f) Publication of Statistics on Tax Withheld. (1) Requirement of publications.Subchapter B of chapter 61 (relating to miscellaneous provisions relating to information and returns) is amended by renumbering section 6109 as 6110, and by inserting after section 6108 the following new section: "Sec. 6109. Publication of Statistics on Tax Withheld on Interest and Dividends. "The Secretary or his delegate shall prepare and publish annually statistics reasonably available with respect to the operation of chapter 7 (relating to collection of income tax at source on interest and dividends), including the amount of tax withheld on interest under section 1601 and the total amount of interest paid on which tax was withheld, the amount of tax withheld on dividends under section 1611 and the total amount of dividends paid on which tax was withheld, and any other facts deemed pertinent and valuable." (2) Table of contents.-The table of contents for such subchapter is amended by striking out "Sec. 6109. Cross references." and inserting in lieu thereof "Sec. 6109. Publication of statistics on tax withheld on interest and dividends. "Sec. 6110. Cross references." "(b) Excessive Withholding.-If the amounts allowable as credits under section 31 (relating to credit for tax withheld at source under chapter 24) and section 39 (relating to credit for tax withheld on interest and dividends under chapter 7) exceed the taxes imposed by chapter 1 against which such credits are allowable, the amount of such excess shall be considered an overpayment." (g) Excessive Withholding.-Section 6401(b) (relating to excessive withholding) is amended to read as follows: (h) Special Period of limitations for Small Refunds on Tax Withheld at Source.-Section 6511(d) (relating to special rules for limitations on allowance of credits and refunds) is amended by adding at the end thereof the following new paragraph: "(4) Special roles relating to tax on interest and dividends withheld at source. In the case of an individual filing a claim for credit or refund of an overpayment for a taxable year for which he was not required under section 6012(a) to make a return, to the extent that the overpayment is attributable to the credit allowed under section 39 for tax required to be deducted and withheld under chapter 7 (relating to tax withheld at source on inteest and dividends), in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be 7 years from the date prescribed by law for filing a return for the taxable year with respect to which the claim is made. In the case of such a claim, the amount of credit or refund may exceed the portion of the tax paid within the period provided in subsection (b) (2), to the extent of the amount of the Overpayment attributable to such credit allowed under section 39, or to the extent of $2, whichever is the lesser." (i) Presumptions as to Date of Payment.-Section 6513(b) (relating to time tax considered to be paid) is amended by adding at the end thereof the following new sentence: "For purposes of section 6511 or 6512, any tax required to be deducted and withheld at source during any taxable year of the recipient under chapter 7, shall, in respect of the recipient of the income, be deemed to have been paid by him on the last day prescribed for filing the return under section 6012 for such taxable year (determined without regard to any extension of time for filing such return).” (j) Definition of Withholding Agent.— Section 7701 (a) (16) (defining the term "withholding agent") is amended by striking out "or 1461" and inserting in lieu thereof "1461, 1601, or 1611". (k) Effective date.-The amendments made by subsections (a) and (b) shall apply to taxable years beginning after December 31, 1960. It was determined in Yeas‒‒‒‒‒‒‒ 24 the negative____ 62 Nays‒‒‒‒‒‒‒ The yeas and nays having been heretofore ordered. Senators who voted in the affirmative |