(3) TO REQUIRE ADDITIONAL SECURITY. Nothing in section 1145 shall be construed as relieving the petitioner from making or filing such undertakings as the court may require as a condition of or in connection with the review.

(4) TO IMPOSE DAMAGES.-The Circuit Court of Appeals, the United States Court of Appeals for the District of Columbia, and the Supreme Court shall have power to impose damages in any case where the decision of the Tax Court is affirmed and it appears that the petition was filed merely for delay.

SEC. 1142. PETITION FOR REVIEW.

The decisions 1 of the Tax Court * * * may be reviewed by a Circuit Court of Appeals, or the United States Court of Appeals for the District of Columbia, as provided in section 1141, if a petition for such review is filed by either the Commissioner or the taxpayer within three months after the decision is rendered * * *

SEC. 1143. CHANGE OF COMMISSIONER.

When the incumbent of the office of Commissioner changes, no substitution of the name of his successor shall be required in proceedings pending before any appellate court reviewing the action of the Tax Court.

* * *

SEC. 1145. BOND TO STAY ASSESSMENT AND COLLECTION.

Notwithstanding any provision of law imposing restrictions on the assessment and collection of deficiencies, the review under section 1142 shall not operate as a stay of assessment or collection of any portion of the amount of the deficiency determined by the Tax Court unless a petition for review in respect of such portion is duly filed by the taxpayer, and then only if the taxpayer (1) on or before the time his petition for review is filed has filed with the Tax Court a bond in a sum fixed by the Tax Court not exceeding double the amount of the portion of the deficiency in respect of which the petition for review is filed, and with surety approved by the Tax Court, conditioned upon the payment of the deficiency as finally determined, together with any interest, additional amounts, or additions to the tax provided for by law, or (2) has filed a jeopardy bond under the income * laws. If as a result of a waiver of the restrictions on the assessment and collection of a deficiency any part of the amount determined by the Tax Court is paid after the filing of the review bond, such bond shall, at the request of the taxpayer, be proportionately reduced.

* *

SEC. 1146. REFUND, CREDIT, OR ABATEMENT OF AMOUNTS DISALLOWED.

In cases where assessment or collection has not been stayed by the filing of a bond, then if the amount of the deficiency determined by the Tax Court is disallowed in whole or in part by the court, the amount so disallowed shall be credited or refunded to the taxpayer, without the making of claim therefor, or, if collection has not been made, shall be abated.

1 The statute reads "decision".

Subtitle B-Miscellaneous Taxes

CHAPTER 9-EMPLOYMENT TAXES

SUBCHAPTER D-COLLECTION OF INCOME TAX AT SOURCE ON WAGES

SEC. 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 employer, 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

[See also the last paragraph of the note under section 3804.]

(2) for agricultural labor (as defined in section 1426 (h)), or (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 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 nonresident 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) PAYROLL PERIOD.-The term "payroll period" means a period for which a payment of wages is ordinarily made to the employee by his employer, and the term "miscellaneous payroll period" means a payroll 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.

SEC. 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) 2.7 per centum of the amount by which the wages exceed the amount of one withholding exemption, the amount of such exemption for various payroll periods being shown in the table in subsection (b) (1) of this section;

(2) 18 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);

(3) 19.8 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

(2) If wages are paid with respect to a period which is not a payroll period, the withholding exemption allowable with respect to each payment of such wages shall be the exemption allowed for a miscellaneous payroll period containing a number of days (including Sundays and holidays) equal to the number of days in the period with respect to which such wages are paid.

(3) In any case in which wages are paid by an employer without regard to any payroll period or other period, the withholding exemption allowable with respect to each payment of such wages shall be the exemption allowed for a miscellaneous payroll period containing a number of days equal to the number of days (including Sundays and holidays) which have elapsed since the date of the last payment of such wages by such employer during the calendar year, or the date of commencement of employment with such employer during such year, or January 1 of such year, whichever is the later.

(4) In any case in which the period, or the time described in paragraph (3), in respect of any wages is less than one week, the Commissioner, under regulations prescribed by him with the approval of the Secretary, may authorize an employer, in computing the tax required to be deducted and withheld, to use the excess of the aggregate of the wages paid to the employee during the calendar week over the withholding exemption allowed by this subsection for a weekly payroll period.

(5) In determining the amount to be deducted and withheld under this subsection, the wages may, at the election of the employer, be computed to the nearest dollar.

(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):

If the payroll period with respect to an employee is weekly

15.50 13.40 11.30 9.20 16.00 13.80 11.70 9.60 18.50 16.40 14.30 12.20 10.10 19.00 16.90 14.70

7.30

.4.50 2.60
4.90 3.00
5.40 3.40

1.60 1.60 1.70 1.70 1.70 1.70 1.70 1.70 1.80 1.80 1: 80 1.80 1.80 1.80 1.90 1.90 1.90

2.00 2.00 2.00

7.70

5.80

3.80

2.00

2.00 2.00

8.10

6. 20

4.30

2.30

2. 10

2.10

$90

12.60 10.50 8.50

6.60

$92.

19.40 17.30

15. 20

13.10 11.00 8.90 15.60 13.50 11.40 9.30 7.40 5.50 16.10 14.00 11.90 9.80 7.80 5.90 4.00 2.30 20.80 18.70 16.50 14.40 12.30 10.20 8.30 6.30 4.40 2.50 2.30 21.20 19.10 17.00 14.90 12.80 10.60 8.70 6.70 4.80 2.90 2.40 22.00 19.90 17.80 15.70 13.50 11.40 9.40 7.50 18.90 16.80 14.70 12.60 10.40 8.50 20.00 17.90 15.80 13.70 11.60 9.50