Sec. 9357.  Payor's notification of right to elect out of
withholding -- periodic payments.  The payor must
notify the payee of his or her right to elect out of
withholding. 27  For period payments, the payer must, at
least once each calendar year (and at approximately the
same time), notify the payee of his right to make a non-
withholding election or to revoke a nonwithholding elec-
tion previously made. 28  The notice must be given not
earlier than six months before the first payment, and not
later than the time of making the payment.  If notice is
given before the date of the first payment, it must be
given again when the first payment is made. 29

  IRS has provided sample notice forms for periodic
payments. 30

  A payor may provide the required notices on withhold-
ing from periodic payments to a payee either on a writ-
ten paper document or through an electronic medium rea-
sonably accessible to the payee, if certain requirements
are met. 31


Footnotes:

27.  Code Sec. 3405(e)(10)(B);
     Reg sec. 35.3405-1T, D-3

28.  Code Sec. 3405(e)(10)(B)(i);
     Reg sec. 35.3405-1T, Q&A D-31

29.  Code Sec. 3405(e)(10)(B)(i)(I); 
     Code Sec. 3405(e)(10)(B)(i)(II);
     Reg. sec. 35.3405-1T, Q&A D-4

30.  Reg. sec. 35.3405-1T, Q&A D-21;
     Reg. sec. 35.3405-1T, Q&A D-27

31.  Reg. 35.3405-1 Q&A, D-35