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Exception for readily tradable instruments acquired through existing brokerage accounts

Subparagraph (B) of paragraph (2) shall not apply with respect to a readily tradable instrument which was acquired through an account with a broker if—

(A) such account was established before January 1, 1984 , and

(B) during 1983, such broker bought or sold instruments for the payee (or acted as a nominee for the payee) through such account.

The preceding sentence shall not apply with respect to any readily tradable instrument acquired through such account after the broker was notified by the Secretary that the payee is subject to withholding under subsection (a)(1)(C).

in view

Whole section

▸rulespec code

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statutes/26/3406/d.yaml

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Rules

broker_notification_outer_limit_days

Parameter

source: 26 USC 3406(d)(2)(B)

- name: broker_notification_outer_limit_days
  kind: parameter
  dtype: Count
  source: 26 USC 3406(d)(2)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: but not later than 15 days after such acquisition
  versions:
    - effective_from: '1990-01-01'
      formula: '15'

payee_certification_failure_described_in_subsection_d

Derived

source: 26 USC 3406(d)(1)

- name: payee_certification_failure_described_in_subsection_d
  kind: derived
  entity: Person
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              There is a payee certification failure unless the payee has certified to the payor,
              under penalty of perjury
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: that such payee is not subject to withholding under subsection (a)(1)(C)
  versions:
    - effective_from: '1990-01-01'
      formula: >-
        not
        payee_certified_to_payor_under_penalty_of_perjury_not_subject_to_withholding_under_subsection_a_1_C

certification_to_broker_is_timely_for_readily_tradable_instrument

Derived

source: 26 USC 3406(d)(2)(C)

- name: certification_to_broker_is_timely_for_readily_tradable_instrument
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(2)(C)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: readily tradable instrument acquired by a payee through a broker
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: after the payee’s account with the broker was established and before the acquisition
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: in connection with the acquisition of such instrument
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        readily_tradable_instrument_acquired_by_payee_through_broker
        and (
            payee_provided_certification_to_broker_after_account_established_and_before_acquisition
            or payee_provided_certification_to_broker_in_connection_with_acquisition
        )

existing_brokerage_account_exception_to_broker_notification

Derived

source: 26 USC 3406(d)(4)

- name: existing_brokerage_account_exception_to_broker_notification
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(4)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: Subparagraph (B) of paragraph (2) shall not apply
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: such account was established before January 1, 1984
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              during 1983, such broker bought or sold instruments for the payee (or acted as a
              nominee for the payee) through such account
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              shall not apply with respect to any readily tradable instrument acquired through such
              account after the broker was notified
  versions:
    - effective_from: '1990-01-01'
      formula: >-
        readily_tradable_instrument_acquired_through_broker_account

        and broker_account_established_before_transition_date

        and
        broker_bought_or_sold_instruments_or_acted_as_nominee_for_payee_through_such_account_during_transition_year

        and not
        instrument_acquired_through_such_account_after_broker_was_notified_by_secretary_payee_subject_to_withholding_under_subsection_a_1_C

broker_must_notify_payor_of_withholding_subject_status

Derived

source: 26 USC 3406(d)(2)(B), 3406(d)(4)

- name: broker_must_notify_payor_of_withholding_subject_status
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(2)(B), 3406(d)(4)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: a payee acquires any readily tradable instrument through a broker
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: the payee fails to furnish his TIN to the broker
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              the Secretary notifies such broker before such acquisition that the TIN furnished by
              the payee is incorrect
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              the Secretary notifies such broker before such acquisition that such payee is subject
              to withholding
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: the payee does not provide a certification to such broker under subparagraph (C)
        - path: versions[0].formula
          kind: import
          import:
            target: >-
              us:statutes/26/3406/d#certification_to_broker_is_timely_for_readily_tradable_instrument
            output: certification_to_broker_is_timely_for_readily_tradable_instrument
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/d#existing_brokerage_account_exception_to_broker_notification
            output: existing_brokerage_account_exception_to_broker_notification
            hash: sha256:local
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        readily_tradable_instrument_acquired_by_payee_through_broker
        and (
            payee_fails_to_furnish_tin_to_broker_in_required_manner
            or secretary_notified_broker_before_acquisition_that_tin_furnished_by_payee_is_incorrect
            or secretary_notified_broker_before_acquisition_that_payee_is_subject_to_withholding_under_subsection_a_1_C
            or not certification_to_broker_is_timely_for_readily_tradable_instrument
        )
        and not existing_brokerage_account_exception_to_broker_notification

broker_notification_within_statutory_outer_limit

Derived

source: 26 USC 3406(d)(2)(B)

- name: broker_notification_within_statutory_outer_limit
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(2)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: such broker shall, within such period as the Secretary may prescribe by regulations
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: but not later than 15 days after such acquisition
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/d#broker_notification_outer_limit_days
            output: broker_notification_outer_limit_days
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/d#broker_must_notify_payor_of_withholding_subject_status
            output: broker_must_notify_payor_of_withholding_subject_status
            hash: sha256:local
  versions:
    - effective_from: '1990-01-01'
      formula: >-
        broker_must_notify_payor_of_withholding_subject_status

        and days_after_acquisition_when_broker_notifies_payor <=
        broker_notification_outer_limit_days

readily_tradable_instrument_pre_existing_account_condition_for_subsection_a_certification_failure

Derived

source: 26 USC 3406(d)(2)(A)

- name: >-
    readily_tradable_instrument_pre_existing_account_condition_for_subsection_a_certification_failure
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              any reportable interest or dividend payment to any payee on any readily tradable
              instrument
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              if (and only if) the payor was notified by a broker under subparagraph (B) or no
              certification was provided
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: such instrument was acquired directly by the payee from the payor
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: such instrument is held by the payor as nominee for the payee
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        reportable_interest_or_dividend_payment
        and payment_on_readily_tradable_instrument
        and (
            payor_was_notified_by_broker_under_subparagraph_B
            or no_certification_was_provided_to_payor_by_payee_under_paragraph_1
        )
        and (
            instrument_acquired_directly_by_payee_from_payor
            or instrument_held_by_payor_as_nominee_for_payee
        )

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us/statute/26/3406/d/4 — Exception for readily tradable instruments acquired through existing brokerage accounts · Axiom

Exception for readily tradable instruments acquired through existing brokerage accounts

Official source

Subparagraph (B) of paragraph (2) shall not apply with respect to a readily tradable instrument which was acquired through an account with a broker if—

(A) such account was established before January 1, 1984 , and

(B) during 1983, such broker bought or sold instruments for the payee (or acted as a nominee for the payee) through such account.

in view

Whole section

▸rulespec code

Shown source

statutes/26/3406/d.yaml

Displaying the canonical repository encoding.

This encoding covers the parent provision us/statute/26/3406/d; no dedicated encoding exists for this exact provision yet.

View on GitHub

Rules

broker_notification_outer_limit_days

Parameter

source: 26 USC 3406(d)(2)(B)

- name: broker_notification_outer_limit_days
  kind: parameter
  dtype: Count
  source: 26 USC 3406(d)(2)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: but not later than 15 days after such acquisition
  versions:
    - effective_from: '1990-01-01'
      formula: '15'

payee_certification_failure_described_in_subsection_d

Derived

source: 26 USC 3406(d)(1)

- name: payee_certification_failure_described_in_subsection_d
  kind: derived
  entity: Person
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              There is a payee certification failure unless the payee has certified to the payor,
              under penalty of perjury
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: that such payee is not subject to withholding under subsection (a)(1)(C)
  versions:
    - effective_from: '1990-01-01'
      formula: >-
        not
        payee_certified_to_payor_under_penalty_of_perjury_not_subject_to_withholding_under_subsection_a_1_C

certification_to_broker_is_timely_for_readily_tradable_instrument

Derived

source: 26 USC 3406(d)(2)(C)

- name: certification_to_broker_is_timely_for_readily_tradable_instrument
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(2)(C)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: readily tradable instrument acquired by a payee through a broker
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: after the payee’s account with the broker was established and before the acquisition
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: in connection with the acquisition of such instrument
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        readily_tradable_instrument_acquired_by_payee_through_broker
        and (
            payee_provided_certification_to_broker_after_account_established_and_before_acquisition
            or payee_provided_certification_to_broker_in_connection_with_acquisition
        )

existing_brokerage_account_exception_to_broker_notification

Derived

source: 26 USC 3406(d)(4)

- name: existing_brokerage_account_exception_to_broker_notification
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(4)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: Subparagraph (B) of paragraph (2) shall not apply
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: such account was established before January 1, 1984
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              during 1983, such broker bought or sold instruments for the payee (or acted as a
              nominee for the payee) through such account
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              shall not apply with respect to any readily tradable instrument acquired through such
              account after the broker was notified
  versions:
    - effective_from: '1990-01-01'
      formula: >-
        readily_tradable_instrument_acquired_through_broker_account

        and broker_account_established_before_transition_date

        and
        broker_bought_or_sold_instruments_or_acted_as_nominee_for_payee_through_such_account_during_transition_year

        and not
        instrument_acquired_through_such_account_after_broker_was_notified_by_secretary_payee_subject_to_withholding_under_subsection_a_1_C

broker_must_notify_payor_of_withholding_subject_status

Derived

source: 26 USC 3406(d)(2)(B), 3406(d)(4)

- name: broker_must_notify_payor_of_withholding_subject_status
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(2)(B), 3406(d)(4)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: a payee acquires any readily tradable instrument through a broker
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: the payee fails to furnish his TIN to the broker
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              the Secretary notifies such broker before such acquisition that the TIN furnished by
              the payee is incorrect
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              the Secretary notifies such broker before such acquisition that such payee is subject
              to withholding
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: the payee does not provide a certification to such broker under subparagraph (C)
        - path: versions[0].formula
          kind: import
          import:
            target: >-
              us:statutes/26/3406/d#certification_to_broker_is_timely_for_readily_tradable_instrument
            output: certification_to_broker_is_timely_for_readily_tradable_instrument
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/d#existing_brokerage_account_exception_to_broker_notification
            output: existing_brokerage_account_exception_to_broker_notification
            hash: sha256:local
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        readily_tradable_instrument_acquired_by_payee_through_broker
        and (
            payee_fails_to_furnish_tin_to_broker_in_required_manner
            or secretary_notified_broker_before_acquisition_that_tin_furnished_by_payee_is_incorrect
            or secretary_notified_broker_before_acquisition_that_payee_is_subject_to_withholding_under_subsection_a_1_C
            or not certification_to_broker_is_timely_for_readily_tradable_instrument
        )
        and not existing_brokerage_account_exception_to_broker_notification

broker_notification_within_statutory_outer_limit

Derived

source: 26 USC 3406(d)(2)(B)

- name: broker_notification_within_statutory_outer_limit
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(2)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: such broker shall, within such period as the Secretary may prescribe by regulations
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: but not later than 15 days after such acquisition
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/d#broker_notification_outer_limit_days
            output: broker_notification_outer_limit_days
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/3406/d#broker_must_notify_payor_of_withholding_subject_status
            output: broker_must_notify_payor_of_withholding_subject_status
            hash: sha256:local
  versions:
    - effective_from: '1990-01-01'
      formula: >-
        broker_must_notify_payor_of_withholding_subject_status

        and days_after_acquisition_when_broker_notifies_payor <=
        broker_notification_outer_limit_days

readily_tradable_instrument_pre_existing_account_condition_for_subsection_a_certification_failure

Derived

source: 26 USC 3406(d)(2)(A)

- name: >-
    readily_tradable_instrument_pre_existing_account_condition_for_subsection_a_certification_failure
  kind: derived
  entity: Payment
  dtype: Judgment
  period: Year
  source: 26 USC 3406(d)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              any reportable interest or dividend payment to any payee on any readily tradable
              instrument
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: >-
              if (and only if) the payor was notified by a broker under subparagraph (B) or no
              certification was provided
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: such instrument was acquired directly by the payee from the payor
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/3406
            excerpt: such instrument is held by the payor as nominee for the payee
  versions:
    - effective_from: '1990-01-01'
      formula: |-
        reportable_interest_or_dividend_payment
        and payment_on_readily_tradable_instrument
        and (
            payor_was_notified_by_broker_under_subparagraph_B
            or no_certification_was_provided_to_payor_by_payee_under_paragraph_1
        )
        and (
            instrument_acquired_directly_by_payee_from_payor
            or instrument_held_by_payor_as_nominee_for_payee
        )