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before the last day of such year by deducting such
amount from remuneration of the employee, if any,
under his control. Such deductions may be made
even though the remuneration, for any reason, does
not constitute wages. Any undercollection in a
calendar year not corrected by a deduction made
pursuant to the foregoing provisions of this sub-
paragraph is a matter for settlement between the
employee and the employer within such calendar
year. For provisions relating to the employer’s
liability for the tax, whether or not he collects
it from the employee, see Sec. 31.3403-1 [T.D.
6516, 25 FR 13032, Dec. 20, 1960; 25 FR 14021,
Dec. 31, 1960, as amended by T.D. 7783, 46 FR
37890, July 23, 1981]
Treasury Regulation § 31.3402(d)-1 Failure to withhold.
If the employer in violation of the provisions of
section 3402 fails to deduct and withhold the tax,
and thereafter the income tax against which the
tax under section 3402 may be credited is paid,
the tax under section 3402 shall not be collected
from the employer. Such payment does not, how-
ever, operate to relieve the employer from liabil-
ity for penalties or additions to the tax applica-
ble in respect of such failure to deduct and with-
hold. The employer will not be relieved of his
liability for payment of the tax required to be
withheld unless he can show that the tax against
which the tax under section 3403 may be credited
has been paid. See § 31.3402-1, relating to lia-
bility for tax. [Reproduced literally.]
On December 7, 2001, respondent filed a notice of Federal
tax lien with respect to, inter alia, Ms. Latos’ taxable year
1998.
On December 12, 2001, respondent issued to Ms. Latos a
notice of Federal tax lien filing and your right to a hearing
(notice of tax lien) with respect to, inter alia, Ms. Latos’
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