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TITLE 22-FOREIGN RELATIONS AND INTERCOURSE

Foreign Wars, War Materials and Neutrality, War Materials

Sec.

412. Same; procurement for and transfer of defense articles to other countries;

repairs; etc.; limitation on amount; termination of powers; etc. 415. Same; appropriations; disposition of repayments. FOREIGN WARS, WAR MATERIALS, AND NEUTRALITY WAR MATERIALS

$ 412. Same; procurement for and transfer of defense articles to other countries; repairs, etc.; limitation on amount; termination of powers; naval convoys; combat area navigation.-(a) Notwithstanding the provisions of any other law, the President may, from time to time, when he deems it in the interest of national defense, authorize the Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government

(1) To manufacture in arsenals, factories, and shipyards under their jurisdiction, or otherwise procure, to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress, or both, any defense article for the government of any country whose defense the President deems vital to the defense of the United States.

(2) To sell, transfer title to, exchange, lease, lend, or otherwise dispose of, to any such government any defense article, but no defense article not manufactured or procured under paragraph (1) shall in any way be disposed of under this paragraph, except after consultation with the Chief of Staff of the Army or the Chief of Naval Operations of the Navy, or both. The value of defense articles disposed of in any way under authority of this paragraph, and procured from funds heretofore appropriated, shall not exceed $1,300,000,000. The value of such defense articles shall be determined by the head of the department or agency concerned or such other department, agency or officer as shall be designated in the manner provided in the rules and regulations issued hereunder. Defense articles procured from funds hereafter appropriated to any department or agency of the Government, other than from funds authorized to be appropriated under sections 411-419 of this title, shall not be disposed of in any way under authority of this paragraph except to the extent hereafter authorized by the Congress in the Acts appropriating such funds or otherwise.

(3) To test, inspect, prove, repair, outfit, recondition, or otherwise to place in good working order, to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress, or both, any defense article for any such government, or to procure any or all such services by private contract.

(4) To communicate to any such government any defense information, pertaining to any defense article furnished to such government under paragraph (2) of this subsection.

(5) To release for export any defense article disposed of in any way under this subsection to any such government.

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(b) The terms and conditions upon which any such foreign government receives any aid authorized under subsection (a) shall be those which the President deems satisfactory, and the benefit to the United States may be payment or repayment in kind or property, or any other direct or indirect benefit which the President deems satisfactory: Provided, however, That nothing in this paragraph shall be construed to authorize the President to assume or incur any obligations on the part of the United States with respect to post-war economic policy, post-war military policy or any post-war policy involving international relations except in accordance with established constitutional procedure.

(c) After June 30, 1946, or after the passage of a concurrent resolution by the two Houses before June 30, 1946, which declares that the powers conferred by or pursuant to subsection (a) are no longer necessary to promote the defense of the United States, neither the President nor the head of any department or agency shall exercise any of the powers conferred by or pursuant to subsection (a); except that until July 1, 1949, any of such powers may be exercised to the extent necessary to carry out a contract or agreement with such a foreign government made before July 1, 1946, or before the passage of such concurrent resolution, whichever is the earlier; Provided, however, That nothing in this subsection shall be construed to authorize the President to enter into or carry out any contract or agreement with a foreign government for postwar relief, postwar rehabilitation or post war reconstruction, except that a contract or agreement entered into in accordance with sections 111-719 of this title in which the United States undertakes to furnish to a foreign government defense articles, services, or information for use in the prosecution of the present war and which provides for the disposition, on terms and conditions of sale prescribed by the President, of any such defense articles, services, or information after the President determines they are no longer necessary for use by such government in promoting the defense of the United States shall not be deemed to be for post war relief, post war rehabilitation or post war reconstruction.

(d) Nothing in sections 411-419 of this title shall be construed to authorize or to permit the authorization of convoying vessels by naval vessels of the United States.

(e) Nothing in sections 411-419 of this title shall be construed to authorize or to permit the authorization of the entry of any American vessel into a combat area in violation of section 443 of this title. (Mar. 11, 1941, ch. 11, $ 3, 55 Stat. 31, as amended Mar. 11, 1943, ch. 15, 57 Stat. 20; May 17, 1944, ch. 198, $$ 1, 2, 58 Stat. 222, 223; Apr. 16, 1945, ch. 61, SS 1, 2,59 Stat. 52.)

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AMENDMENTS 1945–Subsec. (c) amended by act Apr. 16, 1945, cited to text, which substituted "June 30, 1946,” for “June 30, 1945," wherever appearing, “July 1, 1949," for “July 1, 1948," "July 1, 1946” for “July 1, 1945," and added proviso.

8 415. Same; appropriations; disposition of repayments.

AMENDMENTS

1945–Subsec. (b) amended by act Apr. 16, 1945, cited to text, which substituted “June 30, 1949” for “June 30, 1948.”

TITLE 26—INTERNAL REVENUE CODE

Income Tax, Collection of Income Tax at Source of Wages

Sec. 1621. Definitions. 1622. Income tax collected at source. 1625. Receipts. 1626. Penalties.

Adulterated and Process or Renovated Butter 2325. Inspection of process or renovated butter. 2326. Penalties. 2327. Other laws applicable.

Import Taxes 3443. Credits and refunds—exemptions.

Telegraph, Telephone, Radio, and Cable Facilities 3466. Exemption from tax.

Transportation of Property 3475. Exemption of Government transportation.

Sugar

3508. Termination of taxes.

INCOME TAX—COLLECTION OF INCOME TAX AT SOURCE

ON WAGES

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$ 1621. Definitions.- As used in this subchapter.

(a) Wages. The term "wages” means all remuneration (other than fees paid to a public official) for services performed by an employee for his emplover, including the cash value of all remuneration paid in any medium other than cash; except that such term shall not include remuneration paid

(1) for services performed as a member of the military or naval forces of the United States, other than pensions and retired pay includible in gross income under chapter 1, or

(2) for agricultural labor (as defined in section 1426(h)),

(3) for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority, or

(4) for casual labor not in the course of the employer's trade or business, or

(5) for services by a citizen or resident of the United States for a foreign government or an international organization or for the government of the Commonwealth of the Philippines, or

(6) for services performed by a nonresident alien individual, other than a resident of a contiguous country who enters and leaves the United States at frequent intervals, or

(7) for such services, performed by a non-resident alien individual who is a resident of a contiguous country and who enters and leaves the United States at frequent intervals, as may be designated by regulations prescribed by the Commissioner with the approval of the Secretary, or

(8) for services for an employer performed by a citizen or resident of the United States while outside the United States (as defined in section 3797 (a) (9)) if the major part of the services for such employer during the calendar year is to be performed outside the United States, or

(9) for services performed as a minister of the gospel. For the purpose of paragraph (8) services performed on or in connection with an American vessel (as defined in section 1426 (g)) under a contract of service which is entered into within the United States or during the performance of which the vessel touches at a port in the United States, or on or in connection with any vessel as an employee of the United States employed through the War Shipping Administration, shall not constitute services performed outside the United States.

(b) Pay-roll period. The term “pay-roll period” means a period for which a payment of wages is ordinarily made to the employee by his employer, and the term “miscellaneous pay-roll period” means a pay-roll period other than a daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll period.

(c) Employee.-The term “employee" includes an officer, employee, or elected official of the United States, a State, Territory, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation.

(d) Employer.—The term "employer” means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that

(1) if the person for whom the individual performs or performed the services does not have control of the payment of the wages for such services, the term "employer” (except for the purposes of subsection (a)) means the person having control of the payment of such wages; and

(2) in the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term "employer" (except for the purposes of subsection (a)) means such person.

(e) Number of withholding exemptions claimed.—The term "number of withholding exemptions claimed” means the number of withholding exemptions claimed in a withholding exemption certificate in effect under section 1622 (h), except that if no such certificate is in effect, the number of withholding exemptions claimed shall be considered to be zero. (Added June 9, 1943, 7 p. m., E. W. T., ch. 120, 82 (a), 57 Stat. 126; amended May 29, 1944,7 p.m., E. W.T., ch. 210, part

p II, § 22 (a), 58 Stat. 247; Dec. 29, 1945, ch. 652, title I, § 4 (e), 59 Stat. 671.)

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AMENDMENTS

1945—Subsec. (a) (5) amended by act Dec. 29, 1945, cited to text, which inserted “or an international organization” following “foreign government”.

1944–Subsecs. (e)-(k) struck out by act May 29, 1944, cited to text, and a new subsec. (e) inserted in lieu thereof.

EFFECTIVE DATE

Amendment of section by act May 29, 1944, § 22 (a), cited to text, was made applicable only with respect to wages paid on or after Jan. 1, 1945, by section 21 thereof.

Section, prior to May 29, 1944, amendment, as effective July 1, 1943, see note preceding this section.

$ 1622. Income tax collected at source-(a) Requirement of withholding.–Every employer making payment of wages shall deduct and withhold upon such wages a tax equal to the sum of the following:

(1) 17 per centum of whichever of the following is the lesser:

(A) the amount by which the wages exceed the number of withholding exemptions claimed, multiplied by the amount of one such exemption as shown in the table in subsection (b) (1); or

(B) the amount shown in the last column in the table in subsection (b) (1);

(2) 19 per centum of the amount by which the wages exceed the sum of:

(A) the number of withholding exemptions claimed, multiplied by the amount of one such exemption as shown in the table in subsection (b) (1); plus

(B) 'the amount shown in the last column in the table in subsection (b) (1). (b) (1) The table referred to in subsection (a) is as follows:

Percentage Method Withholding Table

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(c) Wage bracket withholding.–(1) At the election of the employer with respect to any employee, the employer shall deduct and withhold upon the wages paid to such employee a tax determined in accordance with the following tables, which shall be in lieu of the tax required to be deducted and withheld under subsection (a):

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