EFFECT OF PAYMENT OF TAX BY RECIPIENT ON CERTAIN PENALTIES.

SEC. 7743. EFFECT OF PAYMENT OF TAX BY RECIPIENT ON CERTAIN PENALTIES. (a) General Rule.—Section 1463 (relating to tax paid by recipient of income) is amended to read as follows: “SEC. 1463. TAX PAID BY RECIPIENT OF INCOME. “If— “(1) any person, in violation of the provisions of this chapter, fails to deduct and withhold any tax under this chapter, and “(2) thereafter the tax against which such tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from such person; but this subsection shall in no case relieve such person from liability for interest or any penalties or additions to the tax otherwise applicable in respect of such failure to deduct and withhold.” (b) Effective Date.—The amendment made by subsection (a) shall apply to failures after December 31, 1989.