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 lt)8

76 Stat. 1003. 26 USC 9 U.

68 A Stat. 42. 26 USC 151.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

year if, at any time during such year or the base period, such individual was a nonresident alien. "(c) INDIVIDUALS RECEIVING StrppoRT FROM OTHERS.— "(1) IN GENERAL.—For purposes of this part, an individual shall not be an eligible individual for the computation year if, for any base period year, such individual (and his spouse) furnished less than one-halt of his support. "(2) EXCEPTIONS.—Paragraph (1) shall not apply to any computation year if— " (A) such year ends after the individual attained age 25 and, during at least 4 of his taxable years beginning after he attained a^e 21 and ending with his computation year, he was not a full-time student, " (B) more than one-half of the individual's adjusted taxable income for the computation year is attributable to work performed hj him in substantial part during 2 or more of the base period years, or " (C) the individual makes a joint return for the computation year and not more than 25 percent of the aggregate adjusted gross income of such individual and his spouse for the computation year is attributable to such individual. I n applying subparagraph (C), amounts which constitute earned income (within the meaning of section 911(b)) and are community income under community property laws applicable to such income shall be taken into account as if such amounts did not constitute community income. " (d) STUDENT DEFINED.—i'or purposes of this section, the term 'student' means, with respect to a taxable year, an individual who during each of 5 calendar months during such taxable year— "(1) was a full-time student at an educational institution (as defined in section 151(e)(4)); or "(2) was pursuing a full-time course of institutional on-farm training under the supervision of an accredited agent of an educational institution (as defined in section 151(e)(4)) or of a State or political subdivision of a State. "SEC. 1304. SPECIAL RULES. " (a) TAXPAYER MUST CHOOSE BENEFITS.—This part shall apply to the taxable year only if the taxpayer chooses to have the benefits of this part for such taxable year. Such choice may be made or changed at any time before the expiration of the period prescribed for making a claim for credit or refund of the tax imposed by this chapter for the taxable year. " (b) CERTAIN PROVISIONS INAPPLICABLE.—If the taxpayer chooses

the benefits of this part for the taxable year, the following provisions shall not apply to him for such year: Poif^^.^129 " ( ^) section 3 (relating to optional tax if adjusted gross income is less than $5,000), 26 USC 7*2^' " ( ^) section 72(n)(2) (relating to limitation of tax in case of certain distributions with respect to contributions by selfemployed individuals), "(3) section 911 (relating to earned income from sources without the United States), and 26 USC 931.934. "(4) subpart D of part III of subchapter N (sec. 931 and following, relating to income from sources within possessions of the United States). " (c) FAILURE OF CERTAIN MARRIED INDI\TDUALS TO MAKE JOINT RETURN, E T C. — " (1) APPLICATION OF SUBSECTION.—Paragraphs (2), (8), and

(4) of this subsection shall apply in the case of any individual

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PUBLIC LAW 88-272-FEB. 26, 1%4

109

who was married for any base period year or the coniputation year; except that— " (A) such paragraphs shall not apply in respect of a base period year if— " (i) such individual and his spouse make a joint return, or such individual makes a return as a surviving spouse (as defined in section 2(b)), for the computation year, and "(ii) such individual was not married to any other spouse for such base period year, and " (B) paragraph (4) shall not apply in respect of the computation year if the individual and his spouse make a joint return for such year. " (2) MINIMUM BASE PERIOD INCOME.—For purposes of this part, the base period income of an individual for any base period year shall not be less than 50 percent of the base period income which would result from combining his income and deductions for such year— " (A) with the income and deductions for such year of the individual who is his spouse for the computation year, or " (B) if greater, with the income and deductions for such year of the individual who was his spouse for such base period year. "(3)

26 us*c*'2."

MINIMUM BASE PERIOD CAPITAL GAIN NET INCOME.—For

purposes of this part, the capital gain net income of any individual for any base period year shall not be less than 50 percent of the capital ^ain net income which would result from combining his capital gain net income for such year (determined without regard to this paragraph) with the capital gain net income for such year (similarly determined) of the individual with whom he is required by paragraph (2) to combine his income and deductions for such year. "(4)

COMMUNITY INCOME ATTRIBUTABLE TO SERVICES.—In

the

case of amounts which constitute earned income (within the meaning of section 911(b)) and are community income under community property laws applicable to such income— " (A) the amount taken into account for any base period year for purposes of determining base period income shall not be less than the amount which would be taken into account if such amounts did not constitute community income, and " (B) the amount taken into account for purposes of determining adjusted taxable income for the computation year shall not exceed the amount which would be taken into account if such amounts did not constitute community income. "(5) MARITAL STATUS.—For purposes of this subsection, section 143 shall apply in determining whether an individual is married for any taxable year. " (d) DOLLAR LIMITATIONS IN CASE OF JOINT RETURNS.—In the case of a joint return, the $3,000 figure contained in section 1301 shall be applied to the aggregate averagable income, and the $3,000 figure contained in section 1302(b)(2)(C) shall be applied to the aggregate net incomes. "(e)

26 USC 9 n^*

^^ "^^ ^'*^* ^"^^' P* *°^-

SPECIAL RULES W H E R E THERE A R E CAPITAL G A I N S. — "(1) TREATMENT OF CAPITAL GAINS I N COMPUTATION YEAR.—In

the case of any taxpayer who has capital gain net income for the computation year, the tax imposed by section 1 for the computation year which is attributable to the amount of su(h net income shall be computed—

^g use'

19.

26 USC 1.

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68A Stat. 5; il'vici 26 USC 1201.

PUBLIC LAW 88-272-FEB. 26, 1964

" (A) by adding so much of the aiiioiiiit thereof as does not exceed average base period capital gain net income above 1331^ percent of average base period income, and " (B) by adding the remainder (if any) of such net income above the 20 percent of the averagable income as taken into account for purposes of computing the tax imposed by section ^ (and abovc the amounts (if any) referred to in subsection (f)(1)). "(2) COMPUTATION or ALTERNATIVE TAX.—In the case of any taxpayer who has capital gain net mcome for the computation year, section 1201(b) shall be treated as imposing a tax equal to the t-ax imposed by section 1, reduced by the amount (if any) by which— " (A) the tax imposed by section 1 and attributable to the capital gain net income for the computation year (determined under paragraph (1)), exceeds " (B) an amount equal to 25 percent of the excess of the net long-term capital gain over the net short-term capital loss. "(f)

Ante, p. 106.

26 USC 72 ^'

Ante, p. 106.

26U°sc72 ^2\%r\Al

26 USC 144.

[78 STAT.

TREATMENT OF CERTAIN OTHER ITEMS.— "(1) G I F T OR WAGERING INCOME.—The tax imposed

by section 1 for the computation year which is attributable to the amounts subtracted from taxable income under paragraphs (2) and (3) of section 1302(b) shall equal the increase in tax under section 1 which results from adding such amounts above the 20 percent of the averagable income as taken into account for purposes of cx)mputing the tax imposed thereon by section 1. "^^) SECTION 72(m)(5).—Section 72(m)(5) (relating to penalties applicable to certain amounts received by owner-employees) shall be applied as if this part had not been enacted. "(3) OTHER ITEMS.—Except as otherwise provided in this part, the order and manner in which items of income shall be taken into account in computing the tax imposed by this chapter on the iucome of any eligible individual to whom section 1301 applies for any coniputation year shall be determined under regulations prescribed by the Secretary or his delegate. " (g) SHORT IAXARLE YEARS.—In the case of any computation year or base period year which is a short taxable year, this part shall be applied in the manner provided in regulations prescribed by the Secretary or his delegate. "SEC. 1305. REGULATIONS. "The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this part." (^) REPEAL OF SECTION 72(e)(3).—Section 72(e)(3) (relating to limit on tax attributable to receipt of lump sum) is hereby repealed. (^) AMENDMENT OF SECTION 144.—Section 144 (relating to election of standard deduction) is amended by adding after subsection (c) (as added by 112(c)(2) of this Act) the following new subsection: " (d) INDIVIDUALS ELECTING INCOME A\T5RAGING.—In the case of a taxpayer who chooses to have the benefits of part I of siil)chapter Q, (relating to income averaging) for the taxable year— "(1) subsection (a) shall not apply for such taxable year, and "(2) the standard deduction shall be allowed if the taxpayer so elects in his retuni for such taxable year. The Secu'etary or his delegate shall by regulations prescribe the manner of signifying such election in the return. I f the taxpayer on making his return fails to signify, in the manner so prescribed, his election to take the standard deduction, such failure shall be considered his election not to take the standard deduction."

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111

PUBLIC LAW 88-272-FEB. 26, 1964

(d) STATUTE OF LIMITATTOXS.—Section 0511(d)(2)(B)

(relating

lo special period of limitation with respect to net operating loss carrybacks) is amended to read as follows:

68A Stat. 808. 26 USC 6511.

" (B) A P P L I C A B L E RULES.—

"(i) If the allowance of a credit or refund of an overpayment of tax attributable to a net operating loss carryback is otherwise prevented by the operation of any law or rule of law other than section 7122, relating to compromises, such credit or refund may be allowed or made, if claim therefor is filed within the period provided in subparagraph (A) of this paragraph. If the allowance of an application, credit, or refund of a decrease in tax determined under section 6411(b) is otherwise prevented by the operation of any law or rule of law other than section 7122, such application, credit, or refund may be allowed or made if application for a tentative carryback adjustment is made within the period provided in section 6411(a). I n the case of any such claim for credit or refund or any such application for a tentative carryback adjustment, the determination by any court, including the Tax Court, in any proceeding in which the decision of the court has become final, shall be conclusive except with respect to the net operating loss deduction, and the effect of sncli deduction, to the extent that such deduction is affected bj- a carrj'back which was not in issue in such proceeding. "(ii) A claim for credit or refund for a computation year (as defined hi section 1302(e)(1)) shall be determined to relate to an overpayment attributable to a net operating loss carryback when such carryback relates to any base period year (as defined in section 1302(e) (3))." (e) TECHNICAL AMENDMENTS.—The following provisions are amended by striking out "except that section 72(e)(3) shall not apply": (1) The first sentence of section 402(a)(1) (relating to general rule for taxability of beneficiary of exempt trust). (2) The second sentence of section 402(b) (relating to taxability of beneficiary of non-exempt trust). (3) The second sentence of section 402(d) (relating to certain employees' annuities). (4) Section 403(a)(1) (relating to the general rule for taxability of a beneficiary under a qualified annuity plan). (5) The second sentence of section 403(b)(1) (relating to general rule for taxability of beneficiary, etc.) • (6) The second sentence of section 403(c) (relating to taxability of beneficiary under a nonqualified annuity). (f)

26 USC 7122.

26 USC 6411.

Ante, p. 107.

Ante, p. 110. 26 USC 402.

26 USC 403.

CLERICAL AMENDMENTS.—

(1) Subsection (f) of section 4 (relating to cross references to rules for optional tax) is amended by adding at the end thereof the following new paragraph:

26 USC 4. Post, p. 140.

"(3) For rule that optional tax is not to apply if individual chooses the benefits of income averaging, see section 1304(b)."

(2) Subsection (b) of section 5 (relating to cross references to special limitations on tax) is amended to read as follows:

26 USC 5.

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PUBLIC LAW 88-272-FEB. 26, 1%4

[78 STAT.

" (b) Si»KciAL LIMITATIONS ON T A X. — "(1) For limitation on surtax attributable to sales of oil or gas properties, see section 632. "(2) For limitation on tax in case of income of members of Armed Forces on death, see section 692. "(3) For limitation on tax where an individual chooses the benefits of income averaging, see section 1301. "(4) For computation of tax where taxpayer restores substantial amount held under claim of right, see section 1341. "(5) For limitation on surtax attributable to claims against the United States involving acquisitions of property, see section 1347."

(3) The table of parts for subchapter Q of chapter 1 is amended by striking out "Part I. Income attributable to several taxable years." and inserting in lieu thereof "Part I. Income averaging." (g) EFFECTIVE DATE.— (1) GENERAL RULE.—Except as provided in p a r a ^ a p h (2), the

68A Stat. 334. 26 USC 1301.

Ante, p. 105. 26 USC /Sf?** Ante, p. 45.* 26 USC 170. 73 Statr*699^^°'

26 USC 1371.

amendments made by this section shall apply with respect to taxable years beginning after December 31, 1963. (2) INCOME FROM AN EMPLOYMENT.—If, in a taxable year beginning after December 31, 1963, an individual or partnership receives or accrues compensation from an employment (as defined by section 1301(b) of the Internal Revenue Code of 1954 as in effect immediately before the enactment of this Act) and the employment began before February 6, 1963, the tax attributable to such compensation may, at the election of the taxpayer, be computed under the provisions of sections 1301 and 1307 of such Code as in effect immediately before the enactment of this Act. If a taxpayer so elects (at such time and in such manner as the Secretary of the Treasury or his delegate by regulations prescribes), he may not choose for such taxable year the benefits provided by part I of subchapter Q of chapter 1 of such Code (relating to income averaging) as amended by this Act and (^^ ^® elects to have subsection (e) of such section 1307 apply) section 170(b)(5) of such Code as amended by this Act shall not, apply to charitable contributions paid in such taxable year. SEC. 233. SMALL BUSINESS CORPORATIONS. ^^^ OWNERSHIP OF CERTAIN

S TO C K DISREGARDED.

SectioU 1371

(relating to definition of small business corporation) is amended by adding at the end thereof the following new subsection: " (d) OWNERSHIP OF CFJKTAIN STOCK.—For purposes of subsection (a), a corporation shall not be considered a memlber of an affiliated group at any time during any taxable year by reason of the ownership of stock in another corporation if such other corporation— " (1) has not begun business at any time on or after the date of its incorporation and before the close of such taxable year, and "(2) does not have taxable income for the period included within such taxable year." (b) CERTAIN DISTRIBUTIONS o r MONEY AFTFJI CLOSE OP TAXABLE

26 USC 1375.

YEAR.—Section 1375 (relating to special rules applicable to distributions of electing small business corporations) is amended by adding at the end thereof the following new subsection: "(e) CFJITAIN DISTRIBUTIONS AFTER CF^OSE OF TAXABLE YEAR.—

" (1) IN GENERAL.—For purposes of this chapter, if— " (A) a corporation makes a distribution of money to its shareholders on or before the 15th day of the third month

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PUBLIC LAW 88-272-FEB. 26, 1964

following the close of a taxable year with re«pect to which it was an electing small business corporation, and " (B) such distribution is made pursuant to a resolution of the board of directors of the corporation, adopted before the close of such taxable year, to distribute to its shareholders all or a part of the proceeds of one or more sales of capital assets, or of property described in section 1231(b), made during such taxable year, such distnbution shall, at the election of the corporation, be treated as a distribution of money made on the last day of such taxable year. "(2) SHAREHOLDERS.—An election under paragraph (1) with respect to any distribution may be made by a corporation only if each person who is a shareholder on the day the distribution is received— " (A) owns the same proportion of the stock of the corporation on such day as he owned on the last day of the taxable year of the corporation preceding the distribution, and " (B) consents to such election at such time and in such manner as the Secretary or his delegate shall prescribe by regulations. "(3) MANNER AND TIME or ELECITON.—An election under paragraph (1) shall be made in such manner as the Secretary or his delegate shall prescribe by regulations. Such election shall be made not later than the time prescribed by law for filing the return for the taxable year during which the sale was made (including extensions thereof) except that, with respect to any taxable year ending on or before the date of the enactment of the Revenue Act of 1964, such election shall l^e made within 120 days after such date." (c) EFFECTIVE DATES.—The amendment made by subsection (a) shall apply with respect to taxable years of corporations beginning after December 31, 1962. The amendment made by subsection (b) shall apply with respect to taxable years of corporations beginning after December 31,195Y. SEC. 234. REPEAL OF ADDITIONAL 2-PERCENT TAX FOR CORPORATIONS FILING CONSOLIDATED RETURNS. (a) REPEAL OF TAX.—Subsection (a) of section 1503 (relating to computation and payment of tax in case of consolidated returns) is S mended to read as follows: I " (a) GENERAL RULE.—In any case in which a consolidated return is made or is required to be made, the tax shall be determined, computed, assessed, collected, and adjusted in accordance with the regulations under section 1602 prescribed before the last day prescribed by law for the filing of such return." (b)

113

68 A Stat. 325. 26 USC 1231.

26 USC 1503.

^^ "^^ ^5°2.

TECHNICAL AND CONFORMING AMENDMENTS.—

(1) Section 1603 is amended by striking out subsections (b) and (c) and by relettering subsection (d) as subsection (b). (2) Paragraph (3) of section 1503(b) (as relettered by paragraph (1)) IS amended to read as follows: "(3)

SPECIAL RULES.—

" (A) For purposes of p a r a ^ a p h (2), a corporation is a regulated public utility only if it is a regulated public utility within the meaning of subparagraph (A) (other than clauses (ii) and (iii) thereof) or (D) of section 7701(a) (33). For purposes of the preceding sentence, the limitation contamed m the last two sentences of section 7701(a) (33) shall be applied as if subparagraphs (A) through (F), inclusive, of section 7701(a) (33) were limited to subparagraphs (A)(i) and (D) thereof.

26°u's^-7^7J,t'.

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68A Stat. 7 2. 26 USC 7701.

54 Stat. 929. 47 Stat. 1425. 46 USC 848.

24 Stat. 379. 49 USC I et seq.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

" (B) For purposes of paragraph (2), the foreign countries referred to in this subparagraph include only any country from which any public utility referred to in the first sentence of paragraph (2) derives the principal part of its income. " (C) For purposes of this subsection, the tenn 'consolidated taxable income' means the consolidated taxable incom*^ computed without regard to the deduction provided by section 242 for partially tax-exempt interest.*' (3) Section 7701(a) (relating to definitions) is amended by adding at the end thereof the following new paragraph: "(33) REGULATED PUBLIC LTILITY.—The term 'regulated public utility' means— " (A) A corporation engaged in the furnishing or sale of— "(i) electric energy, gas, water, or sewerage disposal services, or "(ii) transportation (not included in subparagraph (C)) on an intrastate, suburban, municipal, or mterurban electric railroad, on an intrastate, municipal, or suburban trackless trolley system, or on a municipal or suburban bus system, or "(iii) transportation (not included in clause ( i i)) by motor vehicle— if the rates for such furnishing or sale, as the case ma^' be, have been established or approved by a State or political subdivision thereof, by an agency or instrumentality of the United States, by a public service or public utility commission or other similar body of the District of Columbia or of any State or political subdivision thereof, or by a foreign country or an agency or instrumentality or political subdivision thereof. " (B) A corporation engaged as a common carrier in the furnishing or sale of transportation of gas by pipe line, if subject to the jurisdiction of the Federal Power Commission. " (C) A corporation engaged as a common carrier (i) in the furnishing or sale of transportation by railroad, if subject to the jurisdiction of the Interstate Commerce Commission, or (ii) in the furnishing or sale of transportation of oil or other petroleum products (including shale oil) by pipe line, if subject to the jurisdiction of the Interstate Commerce Commission or if the rates for such furnishing or sale are subject to the jurisdiction of a public service or public utility commission or other similar body of the District of Columbia or of any State. " (D) A corporation engaged in the furnishing or sale of telephone or telegraph service, if the rates for such furnishing or sale meet the requirements of subparagraph (A). " (E) A corporation engaged in the furnishing or sale of transportation as a common carrier by air, subject to the jurisdiction of the Civil Aeronautics Board. " (F) A corporation engaged in the furnishing or sale of transportation by common carrier by water, subject to the jurisdiction of the Interstate Commerce Commission under p^i't III of the Interstate Commerce Act, or subject to the jurisdiction of the Federal ISIaritime Board under the Intercoastal Shipping Act, 1933. " (Gr) A railroad corporation subject to part I of the Interstate Commerce Act, if (i) substantialh^ all of its railroad •

\ /

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PUBLIC LAW 88-272-FEB. 26, 1964

115

properties have been leased to another such railroad corporation or corporations by an agreement or agreements entered into before January 1, 1954, (ii) each lease is for a term of more than 20 years, and (iii) at least 80 percent or more of its ^ross income (computed without regard to dividends and capital gains and losses) for the taxable year is derived from such leases and from sources described in subparagraphs (A) through (F), inclusive. For purposes of the preceding sentence, an agreement for lease of railroad properties entered into before January 1, 1954, shall be considered to be a lease including such term as the total number of years of such agreement may, unless sooner terminated, be renewed or continued under the terms of the agreement, and any such renewal or continuance under such agreement shall be considered part of the lease entered into before January 1, 1954. " (H) A common parent corporation which is a common carrier by railroad subject to part I of the Interstate Commerce Act if at least 80 percent of its gross income (computed ^^ ^^^ ^'^^^• without regard to capital gains or losses) is derived directly seq. or indirectly from sources described in subparagraphs (A) through (F), inclusive. For purposes of the preceding sentence, dividends and interest, and income- from leases described in subparagraph (G), received from a regulated public utility shall be considered as derived from sources described in subparagraphs (A) through (F), inclusive, if the regulated public utility is a meml>er of an affiliated group (as defined in section 1504) which includes the common 26^8(^*1504!* parent corporation. The term 'regulated public utility' does not (except as provided in subparagraphs (G) and (H)) include a corporation described in subparagraphs (A) through (F), inclusive, unless 80 percent or more of its gross income (computed without regard to dividends and capital gains and losses) for the taxable year is derived from sources described in subparagraphs (A) through (F), inclusive. If the taxpayer establishes to the satisfaction of the Secretary or his delegate that (i) its revenue from regulated rates described in subparagraph (A) or (D) and its revenue derived from unregulated rates are derived from the operation of a single interconnected and coordinated system or from the operation of more than one such system, and (ii) the unregulated rates have been and are substantially as favorable to users and consumers as are the regulated rates, then such revenue from such unregulated rates shall be considered, for purposes of the preceding sentence, as income derived from sources described in subparagraph (A) or (D). " (4) Section 12(8) (relating to cross reference to additional tax for corporations filing consolidated returns) is hereby repealed. (5) Paragraphs (1) and (2) of section 172(j) (relating to carryover of net operating loss for certain regulated transportation corporations) are amended to read as follows: "(1) DEFINITION.^—For purposes of subsection (b)(1)(C), the term 'regulated transportation corporation' means a corporation— " (A) 80 percent or more of the gross income of which (computed without regard to dividends and capital gains and losses) for the taxable year is derived from the furnishing or sale of transportation described in subparagraph (A), (C) (i), (E), or (F) of section 7701(a) (33) and taken into account for purposes of the limitation contained in the last two sentences of section 7701(a) (33),

26*^usc 12. 76 Stat. 649. 26 USC 172.

^f^^P'/^i^i;

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Ante, p. 114, 26 USC 7701

76 Stat. 1031. 26 USC 904.

26^scr*i34?'

26 USC 1552.

Ante,^P.u3.

26 USC 1503.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

" (B) which is described in subparagraph (G) or ( II) of section 7701(a) (33),or " (C) which is a member of a regulated transportation system. " (2) REGULATED TRANSPORTATION" SYSTEM.—For purposes of this subsection, a corporation shall be treated as a member of a regulated transportation system for a taxable year if— " (A) it IS a member of an-affiliated group of corporations making a consolidated retutn for such taxaole year, and " (B) 80 percent or more of the aggregate gross income of the members of such affiliated group (computed without regard to dividends and capital gains and losses) for such taxable year is derived from sources described in paragraph (1)(A). For purposes of subparagraph (B), income derived by a corporation described in subparagraph (G) or (H) of section 7701(a) (33) from leases described m subparagraph (G) thereof shall be considered as derived from sources described in paragraph (1) (A)." (6) Section 904(g)(2) (relating to cross references for purposes of the limitation on the for e i ^ tax credit) is amended bjstriking out "section 1503(d)"* and inserting in lieu thereof "section 1503(b)-'. ('^). 'Section 1341(b)(2) (relating to special rules for the computation of tax where taxpayer restores substantial amount held under claim of right) is amended by striking out " ( a s defined in section 1503(c) without regard to paragraph (2) thereof)" and inserting in lieu thereof " ( a s defined in section 7701(a) (33) without regard to the limitation contained in the last two sentences thereof)". (8) Section 1552(a)(3) (relating to the allocation of tax liability among members of an affiliated group of corporations filing consolidated returns) is amended by striking out "(determined without regard to the 2 percent increase provided by section 1503(a))". (c) EFFECTIVE DATE.—The amendments made by subsections (a) and (b) shall apply with respect to taxable years beginning after December 31, 1963.

SEC. 2 5 REDUCTION OF SURTAX EXEMPTION IN CASE OF CERTAIN 3. CONTROLLED CORPORATIONS, ETC. (a) IN GENERAL.—Subchapter B of chapter 6 (related rules for <ronsolidated returns) is amended by adding at the end thereof the following new part: "PART II—CERTAIN CONTROLLED CORPORATIONS "Sec. l."»(il. Surtax exemptions in case of certain controlled corporations. "Sec. 1563. Definitions and si»ecial rules. "SEC. 1561. SURTAX EXEMPTIONS IN CASE OF CERTAIN CONTROLLED CORPORATIONS. " (a) GENERAL RULE.—If a corporation is a component member
 * §©<•. 1562. Privilege of groups to elect multiple surtax exemptions.

of a controlled group of corporations on a December 31, then for purposes of this subtitle the surtax exemption of such corporation for the taxable year which includes such December 31 shall be an amount equal to— "(1) $25,000 divided by the number of corporations which a.re component members of such group on such December 31, or "(2) if all such component members consent (at such time and

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in such manner as the Secretary or his delegate shall by regulations prescribe) to an apportionment plan, such iDortion of $25,000 as is apportioned to such member in accordance with such plan. The sum of the amounts apportioned under paragraph (2) among the component members of any controlled group shall not exceed $25,000. " (b) CERTAIN SHORT TAXABLE YEARS.—If a corporation— "(1) has a short taxable year which does not include a December 31, and "(2) is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle the surtax exemption of such corporation for such taxable year shall be an amount equal to $25,000 divided by the number of corporations which are component members of such group on the last day of such taxable year. For jjurposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31.

117

Post,

p. 120.

"SEC. 1562. PRIVILEGE OF GROUPS TO ELECT MULTIPLE SURTAX EXEMPTIONS. " (a) ELECTION OF MULTIPLE SURTAX EXEMITIOXS.—

"(1) IN GENERAL.—A controlled group of corporations shall (subject to the provisions of this section) have the privilege of electing to have each of its component members make its returns without regard to section 1561. Such election shall be made with '*"*°' P* *'^' respect to a specified December 31 and shall be valid only if— " (A) each corporation which is a component member of such group on such December 31, and " (B) each other corporation which is a component member of such group on any succeeding December 31 before the day on which the election is filed, consents to such election. " (2) YEARS FOR WHICH EFFECTIVE.—An election by a controlled group of corporations under paragraph (1) shall be effective with respect to the taxable year of each component member of such group which includes the specified December 31, and each taxable year of each corporation which is a component member of such group (or a successor group) on a succeeding December 31 included within such taxable year, unless the election is terminated under subsection (c). "(3) EFFECT OF ELECTION.—If an election by a controlled group of corporations under paragraph (1) is effective with respect to any taxable year of a corporation— " (A) section 1561 shall not apply to such corporation for such taxable year, but " (B) the additional tax imposed by subsection (b) shall apply to such corporation for such taxable year. " (1) GENERAL RULE.—If an election
 * (b) ADDITIONAL TAX IMPOSED.—

under subsection (a)(1) by a controlled group of corporations is effective with respect to the taxable year of a corporation, there is hereby imposed for such taxable year on the taxable income of such corporation a tax equal to 6 percent of so much of such corporation's taxable income for such taxable year as does not exceed $25,000. This paragraph shall not apply to the taxable year of a corporation if— " (A) such corporation is the only component member of such controlled group on the December 31 included in such corporation's taxable year which has taxable income for a taxable year including such December 31, or

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[78 STAT.

" (B) such corporation's surtax exemption is disallowed for such taxable year under any provision of this subtitle. ^6 u'sc'n^*

"(^)

"^^^

TREATED AS IMPOSED BY SECTION 1 1, ETC.

If for the

taxable year of a corporation a tax is imposed by section 11 on the taxable income of such corporation, the additional tax imposed by this subsection shall be treated for purposes of this title as a tax imposed by section 11. If for the taxable year of a corporation a tax is imposed on the taxable income of such corporation which is computed under any other section by reference to section 11, the additional tax imposed by this subsection shall be treated for purposes of this title as imposed by such other section. "(3) TAXABLE INCOME DEFINED.—For purposes of this subsection, the term 'taxable income' means— " (A) in the case of a corporation subject to tax under sec^^68A Stat. 169. ^jon 511, its Unrelated business taxable income (within the 26use5ii,5i2. meaning of section 512); " (B) in the case of a life insurance company, its life insurance company taxable income (within the meaning of section 73 Stat. 115. 802(b)); 26 USC 80 2. " (C) in the case of a regulated investment company, its investment company taxable income (within the meaning of 26 USC 852. section 852(b)(2)); and " (D) in the case of a real estate investment trust, its real estate investment trust taxable income (within the meaning 26 USC 85T* of section 857(b)(2)). "(4) SPECIAL RULES.—If for the taxable year an additional tax is imposed on the taxable income of a corporation by this sub^6 USC'244* section, then sections 244 (relating to dividends received on cer26 USC 24?! tain preferred stock), 247 (relating to dividends paid on certain 73 Stat. 116. preferred stock of public utilities), 804(a)(3) (relating to deduc26 USC 804. ^.^^^ ^^^ partially tax-exempt interest in the case of a life insur26 USC 922. .^y^^Q company), and 922 (relating to special deduction for Western Hemisphere trade corporations) shall be applied without regard to the additional tax imposed by this subsection. "(c) TERMINATION OF ELECTION.—An election by a controlled group of corporations under subsection (a) shall terminate with respect to such group— "(1) CONSENT OF THE MEMBERS.—If such group files a termination of such election with respect to a specified December 31, and— " (A) each corporation which is a component member of such group on such December 31, and " (B) each other corporation which is a component member of such group on any succeeding December 31 before the day on which the termination is filed, consents to such termination. "(2) REFUSAL BY NEW MEMBER TO CONSENT.—If on December 31 of any year such group inchules a component member which— " (A) on the immediately preceding January 1 was not a member of such group, and " (B) within the time and in the manner provided by regiilations prescril^ed by the Secretary or his delegate, files a statement that it does not consent to the election. "(3)

j^°*''PP- 120,

CONSOLIDATED RETLTRNS.—If—

" (A) a corporation is a component member (determined without regard to section 1563(b)(3)) of such group on a December 31 included within a taxable 3'ear ending on or after January 1, 1964, and

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119

" (B) such corporation is a member of an affiliated group of corporations which makes a consolidated return under this 26 chapter (sec. 1501 and following) for such taxable year. seq. u s e 1501 et "(4) CONTROLLED GROUP NO LONGER I N EXISTENCE.—If such group is considered as no longer in existence with respect to any December 31. Such termination shall be effective with respect to the December 31 referred to in paragraph (1)(A), (2), (3), or (4), as the case may be. " (d) ELECTION AFTER TERMINATION.—If an election by a controlled group of corporations is terminated under subsection (c), such group (and any successor group) shall not be eligible to make an election under subsection (a) with respect to any December 31 before the sixth December 31 after the December 31 with respect to which such termination was effective. " (e) MANNER AND T I M E OF GIVING CONSENT AND MAKING ELECTION,

ETC.—An election under subsection (a)(1) or a termination under subsection (c)(1) (and the consent of each member of a controlled group of corporations which is required with respect to such election or termination) shall be made in such manner as the Secretary or his delegate shall by regulations prescribe, and shall be made at any time before the expiration of 3 years after— "(1) in the case of such an election, the date when the income tax return for the taxable year of the component member of the controlled group which has the taxable year ending first on or after the specified December 31 is required to be filed (without regard to any extensions of time), and " (2) in the case of such a termination, the specified December 31 with respect to which such termination was made. Any consent to such an election or termination, and a failure by a component member to file a statement that it does not consent to an election under this section, shall be deemed to be a consent to the application of subsection (g)(1) (relating to tolling of statute of limitations on assessment of deficiencies). " (f) SPECIAL RULES.—For purposes of this section— " (1) CONTINUING AND SUCCESSOR CONTROLLTJ) GROUPS.—The

determination of whether a controlled group of corpomtions— " (A) is considered as no longer in existence with respect to any December 31, or " (B) is a successor to another controlled group of corporations (and the effect of such determination with respect to any election or termination), shall be made under regulations prescribed by the Secretary or his delegate. For purposes of siibparagraph (B), such regulations shall be based on the continuation (or termination) of predominant equitable ownership. "(2) CERTAIN SHORT TAXABLE YEARS.—If one or more corporations have short taxable years which do not include a December 31 and are component members of a controlled group of corporations with respect to such taxable years (determined bjapplying section 1563(b) as if the last day of each such taxable ijf"*'' ^^' '^°' year were substituted for December 31), then an election by such group under this section shall apply with respect to such corporations with respect to such taxable years if— " (A) such election is in effect with respect to both the December 31 immediately preceding such taxable years and the December 31 immediatelj'- succeeding such taxable years, or " (B) such election is in effect with respect to the December 31 immediately preceding or succeeding such taxable 31-667 0-65—11

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73 Stat. 115. 26 USC 802.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

years and each such corporation files a consent to the application of such election to its short taxable year a t such time and in such manner as the Secretary or his delegate shall prescribe by regulations. " (g) TOLLING OP STATUTE OF LIMITATIONS.—In any case in which a controlled group of corporations makes an election or termination under this section, the statutory period— "(1) for assessment of any deficiency against a corporation which is a component member of such group for any taxable year, to the extent such deficiency is attributalble to the application of this part, shall not expire before the expiration of one year after the date such election or termination is made; and "(2) for allowing or making credit or refund of any overpayment of tax by a corporation which is a component member of such group for any taxable year, to the extent such credit or refund is attributaole to the application of this part, shall not expire before the expiration of one year after the date such election or termination is made. -SEC. 1563. DEFINITIONS AND SPECIAL RULES. " (a) CONTROLLED GROUP OP CORPORATIONS.—For purposes of this part, the term 'controlled group of corporations* means any group of— "(1) PARENT-suBsmiARY CONTROLLED GROUP.—One or uiore chains of corporations connected through stock ownership with a common parent corporation if— " (A) stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of stock of each of the corporations, except the common parent corporation, is owned (within the meaning of subsection (d)(1)) by one or more of the other corporations; and " (B) the common parent corporation owns (within the meaning of subsection (d)(1)) stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of stock of at least one of the other corporations, excluding, in computing such voting power or value, stock owned directly by such other corporations. "(2) BROTHER-SISTER CONTROLLED GROUP.—Two or more corporations if stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of stock of each of the corporations is owned (within the meaning of subsection (d)(2)) by one person who is an individual, estate, or trust. "(3) COMBINED GROUP.—Three or more corporations each of which is a member of a group of corporations described in paragraph (1) or (2), and one of which— " (A) is a common parent corporation included in a group of corporations described in paragraph (1), and also " (B) is included in a group of corporations described in paragraph (2). "(4) CERTAIN INSURANCE COMPANIES.—Two or more insurance companies subject to taxation under section 802 which are members of a controlled group of corporations described in paragraph (1), (2), or (3). Such insurance companies shall be treated as a controlled group of corporations separate from any other corporations which are members of the controlled group of corporations described in paragraph (1), (2), or (3).

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PUBLIC LAW 88-272-FEB. 26, 1964

' ' (b) COMPONENT JVIEMBER.— "(1) GENERAL RULE.—For

121

purposes of this part, a corporation is a component member of a controlled group of corporations on a December 31 of any taxable year (and with respect to the taxable year which includes such December 31) if such corporation— " (A) is a member of such controlled group of corporations on the December 31 included in such year and is not treated as an excluded member under paragraph (2), or " (B) is not a member of such controlled group of corporations on the December 31 included in such year but is treated as an additional member under paragraph (3). "(2) EXCLUDED MEMBERS.—A corporation which is a member of a controlled group of corporations on December 31 of any taxable year shall be treated as an excluded member of such group for the taxable year including such December 31 if such corporation— " (A) is a member of such group for less than one-half the number of days in such taxable year which precede such December 31, " (B) is exempt from taxation under section 501(a) (except ^^^^ ^*^*' ^^^' a corporation which is subject to tax on its unrelated business 26 USC so i, s11. taxable income under section 511) for such taxable year, " (C) is a foreign corporation subject to tax under section 881 for such taxable year, ^e use ss i. " (D) is an insurance company subject to taxation under section 802 or section 821 (other than an insurance company yeStat.^^gsg!^' which is a member of a controlled group described in sub- 26 USC 802,821. section (a)(4)), or " (E) is a franchised cori^oration, as defined in subsection (f)(4). " (3) ADDITIONAL MEMBERS.—A corporation which—

" (A) was a member of a controlled group of corporations at any time during a calendar year, " (B) is not a member of such group on December 31 of such calendar year, and " (C) is not described, with respect to such group, in subparagraph (B), (C), (r)), o r (E) of paragraph (2), shall be treated as an additional member of such group on December 31 for its taxable year including such December 31 if it was a member of such group for one-half (or more) of the number of days in such taxable year which precede such December 31. " (4) OVERLAPPING GROUPS.—If a corporation is a component

member of more than one controlled group of corporations with respect to any taxable year, such corporation shall be treated as a component member of only one controlled group. The determination as to the group of which such corporation is a component member shall be made under regulations prescribed by the Secretary or his delegate which are consistent with the purposes of this part. " (c) CERTAIN STOCK EXCLUDED.— "(1) GENERAL RULE.—For purposes

of this part, the term

'stock' does not include— " (A) nonvoting stock which is limited and preferred as to dividends, " (B) treasury stock, and " (C) stock which is treated as 'excluded stock' under paragraph (2).

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PUBLIC LAW 88-272-FEB. 26, 1964 " (2)

i63^^6^stat ^809 26 USC 401,50 i.

[78

STOCK TREATED AS 'EXCLUDED STOCK'.— " (A) PARENT-SUBSIDIARY CONTROLIJOD (JKOUJ».—For

STAT.

purposes of subsection (a)(1), if a corporation (referred to in this paragraph as 'parent corporation') owns (within the meaning of subsections (d)(1) and (e)(4)), 50 percent or more of the total combined voting i)Ower of all classes of stock entitled to vote or 50 percent or more of the total vahie of shares of all classes of stock in another corporation (referred to in this paragraph as 'subsidiary corporation'), the following stock of the subsidiary corporation shall be treated as excluded stock— " (i) stock in the subsidiary corporation liehl by a trust which is part of a plan of deferred compensation for the benefit of the employees of the parent corporation or the subsidiary corporation, "(ii) stock in the subsidiary corporation owned by an individual (within the meaning of subsection (d)(2)) who is a principal stockholder or officer of the parent corporation. For purposes of this clause, the term 'principal stockholder' of a corporation means an individual who owns (within the meaning of subsection (d)(2)) 5 percent or more of the total combined voting power of all classes of stock entitled to vote or 5 percent or more of the total value of shares of all classes of stock in such corporation, or "(iii) stock in the subsidiary corporation owned (within the meaning of subsection (d)(2)) by an employee of the subsidiary corporation if such stock is subject to conditions which run in favor of such parent (or subsidiary) corporation and which substantialh' restrict or limit the employee's right (or if the employee constructively owns such stock, the direct owners right) tx) dispose of such stock. •'(B) BROTHER-SISTER coNiTiOLLKi) (}Rour.—For purposes of subsection (a)(2), if a person who is an individual, estate, or trust (referred to in this paragraph as 'common owner') owns (within the meaning of subsection (d)(2)), 50 percent or more of the total combined voting power of all classes of stxx?k entitled to vote or 50 percent or moiv of the total value of shares of all classes of sto<'k in a corporation, the following stock of such corporation shall be treated as excluded stock— " (i) stock in such corporation held by an employees' ti'ust described in section 401(a) which is exempt from tax under section 501(a), if such trust is for the benefit of the employees of such corporation, or "(ii) stock in such corporation owned (within the meaning of subsection (d)(2)) by an employee of the corporation if such stock is subject to conditions which run in favor of such common owner (or siu^h corporation) and which substaiitiallj'^ restrict or limit the employee's right (or if the employee constructively owns such stock, the direct owner's right) to dispose of such stock. If a condition which limits or restricts the employee's right (or the direct owner's right) to dispose of such stock also applies to the stock held by the common owner pursuant to a bona fide reciprocal stock purchase arrangement^ such condition shall not be treated as one which restricts or limits the employee's right to dispose of such stock.

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" (1) PARENT-SUBSIDIARY CONTROLLED OROI r.—For purposes of
 * '(d) RuLi':s FOR DETKKMINIXG STOCK OWNERSHIP.—

determining whether a corporation is a member of a parent-subsidiary controlled group of corporations (within the meaning of subsection (a)(1)), stock owned by a corporation means— " (A) stock owned directly by such corporation, and " (B) stock owned with the application of subsection (e)(1). " (2) BROTHER-SISTER CONITIOIXED GROUP.—For purposes of de-

termining whether a corporation is a member of a brother-sister (Controlled group of corporations (within the meaning of subsection (a)(2)), stock owned by a person who is an individual, estate, or trust means— " (A) stock owned directly by such person, and " (B) stock owned with the application of subsection (e).
 * '*(e) CONSTRUCTIVE OWNERSHIP.—

"(1) OPTIONS.—If any person has an option to acquire stock, such stock shall be considered as owned by such person. For purposes of this paragraph, an option to acquire such an option, and each one of a series of such options, shall be considered as an option to acquire such stock. " (2) ATTRIBUTION FROM PARTNERSHIPS.—Stock owned, directly

or indirectly, by or for a partnership shall be considered as owned by any partner having an interest of 5 percent or more in either the capital or profits of the partnership in proportion to his interest in capital or profits, whichever such proportion is the greater. " (3) ATTRIBUTION FROM ESTATES OR I-RUSTS.—

" (A) Stock owned, directly or indirectly, by or for an estate or trust shall be considered as owned by any beneficiary who has an actuarial interest of 5 percent or more in such stock, to the extent of such actuarial interest. For purposes of this subparagraph, the actuarial interest of each Deneficiary shall be determined by assuming the maxinmm exerc;ise of discretion by the fiduciary in favor of such l)eneficiary and the maximum use of such stwk to satisfy his rights as a beneficiary. " (B) Stock owned, directly or indirectly, by or for any portion of a trust of which a person is considered the owner under subpart E of part I of subchapter J (relating to grant- ^^^ ^tat. 226. ors and others treated as substantial owners) shall l>e con- ^^"^*^ 671-678. sidered as owned by such person. " (C) This paragraph shall not apply to stock owned by any employees' trust described in section 401(a) which is,^^f^^f^^^\^i1', j>

,

-I

J•

K/-\-. /

\

l o 3; 7 5 Stat. 8 0 9.

exenipt from tax under section 501(a). 26 USC 401, so 1. ••(4) ArrKiBUTioN FROM CORPORATIONS.—Stock owned, directly or indirectly, by or for a corporation shall be considered as owned b}' any person who owns (within the meaning of subsection (d)) 5 percent or more in value of its stock in that proportion which the value of the st<K'-k which such person so owns bears to the value of all the stock in such corporation. "(.5) SPOUSE.—An individual shall be considered as owning stock in a corjjoration owned, directly or indirectly, by or for his spouse (other than a spouse who is legally separated from the individual under a decree of divorce Avhether interlocutory or final, or a decree of separate maintenance), except in the case of a corporation with respect to which each of the following condi_ tions is satisfied for its taxable year—

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PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

" (A) The individual does not, at any time during such taxable year, own directly any stock in such corporation; " (B) The individual is not a director or employee and does not participate in the management of such corporation at any time during such taxable year; " (C) Not more the«i 50 percent of such corporation's gross income for such taxable year was derived from royalties, rents, dividends, interest, and annuities; and " (D) Such stock in such corporation is not, at any time during such taxable year, subject to conditions which substantially restrict or limit the spouse's ri^ht to dispose of such stock and which run in favor of the individual or his children who have not attained the age of 21 years. " (6)

CHILDREN, GRANDCHILDREN, PARENTS, AND GRANDPARENTS.—

" (A) MINOR CHILDREN.—An individual shall be considered as owning stock owned, directly or indirectly, by or for his children who have not attained the age of 21 years, and, if the individual has not attained the age of 21 years, the stock owned, directly or indirectly, by or for his parents. "(B)

ADULT CHILDREN AND GRANDCHILDREN.—An individ-

ual who owns (within the meaning of subsection (d)(2), but without regard to this subparagraph) more than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the total value of shares of all classes of stock in a corporation shall be considered as owning the stock in such corporation owned, directly or indirectly, by or for his parents, grandparents, grandchildren, and children who have attained the age of 21 years. " (C) ADOPTED CHILD.—For purposes of this section, a legally adopted child of an individual shall be treated as a child of such individual by blood. "(f)

OTHER DEFINITIONS AND RULES.— "(1) EMPLOYEE DEFINED.—For purposes

of this section the ferm 'employee' has the same meaning such term is given in sec68A Stat. 452. 26 USC 3306.

tlOn 3 3 0 6 (1). ^'(2) OPERATING RULES. -

" (A) IN GENERAL.—Exccpt as provided in subparagraph (B), stock constructively owned by a person by reasoniof the application of paragraph (1), (2), (3), (4), (5), or (6) of subsection (e) shall, for purposes of applying such paragraphs, be treated as actually owned by such person. " (B) MEMBERS OF FAMILY.—Stock constructively owned by an individual by reason of the application of paragraph (5) or (6) of subsection (e) shall not be treated as owned by him for purposes of again applying such paragraphs in order t-o make another the constructive owner of such stock. " (3) SPECIAL RULES.—For purposes of this section— " (A) If stock may be considered as owned by a person under subsection (e)(1) and under any other paragraph of subsection (e), it shall be considered as owned by him under subsection (e)(1). " (B) I f stock is owned (within the meaning of subsection (d)) by two or more persons, such stock shall be considered as owned by the person whose ownership of such stock results in the corporation being a component member of a controlled group. I T by reason of the preceding sentence, a corporation would (but for this sentence) become a component member of two controlled groups, it shall be treated as a component member of one controlled group. The determination as to

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the group of which such corporation is a component member shall be made under regulations prescribed by the Secretary' or his delegate which are consistent with the purposes of this part. " (C) I f stock is owned by a person within the meaning of subsection (d) and such ownership results in the corporation being a component member of a controlled group, such stock shall not be treated as excluded stock under subsection (c)(2), if by reason of treating such stock as excluded stock the result is that such corporation is not a component member of a controlled group of corporations. "(4)

F R A N C H I S E D CORPORATION.

If—

" (A) a parent corporation (as defined in subsection (c) (2)(A)), or a conunon owner (as defined in subsection (c) (2)(B)), o f a corporation which is a member of a controlled group of corporations is under a duty (arising out of a written agreement) to sell stock of such corporation (referred to in this paragraph as 'franchised corporation') which is franchised to sell the products of another member, or the common owner, of such control! ed group; " (B) such stock is to be sokl to an employee (or employees) of such franchised corporation pursuant to a bona tide plan designed to eliminate the stock ownership of the parent corporation or of the conmion owner in the franchised corporation; " (C) such plan— " (i) provides a reasonable selling price for such stock, and "(ii) requires that a portion of the employee's share of the profits of such corporation (whether received as compensation or as a dividend) be applied to the purchase of such stock (or the purchase of notes, bonds, debentures or other similar evidence of indebtedness of such franchised corporation held by such parent corporation or common owner); " (D) such employee (or employees) owns directly more than 20 percent of the total value of shares of all classes of stock in such franchised corporation; " (E) more than 50 percent of the inventory of such franchised corporation is acquired from members of the controlled group, the connnon owner, or both; and " (F) all of the conditions contained in subparagraphs fA), (B), (C), (D), and (E) have been met for one-half ^or more) of the number of days preceding the December 31 included within the taxable year (or if the taxable year does not include December 31, the last day of such year) of the franchised corporation, then such franchised corporation shall be treated as an excluded member of such group, under subsection (b)(2), for such taxable year." (b) DiSALLOWAXCK OF SvRTAX EXEMI'TIOX AND ACCUMULATED EARXTXCJS CREDIT.—Section 1551 (relating to disallowance of surtax

exemption and accunnilated earnings credit) is amended to read as follows: "SEC. 1551. DISALLOWANCE OF SURTAX EXEMPTION AND ACCUMULATED EARNINGS CREDIT. " (a) IN GENERAL.—If—

"(1) any corporation transfers, on or after January 1, 1951, and on or before June 12, 193, all or ]>art of its property (other than money) to a transferee corporation,

26^sc^*i5Vi^'

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^6 USC*u^' 26^sc^*535^°*

Anfe, pp. 120,

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

"(2) any corporation transfers, directly or indirectly, after June 12, 1963, all or part of its property (other than money) to a transferee corporation, or "(3) five or fewer individuals who are in control of a corporation transfer, directly or indirectly, after June 12, 1963, property (other than money) to a transferee corporation, and the transferee corporation was created for the purpose of acc^uirin^ such property or was not actively engaged in business at the tmie of such acquisition, and if after such transfer the transferor or transferors are in control of such transferee corporation during any part of the taxable year of such transferee corporation, then for such taxable year of such traii;3feree corporation the Secretary or his delegate may (except as may be otherwise determined under subsection (d)) disiillow the surtax exemption (as defined in section 1 1 (d)), or the $100,000 accumulated earnings credit provided in paragraph (2) or ^'^^ °^ section 535(c), unless such transferee corporation shall establish by the clear preponderance of the evidence that the securing of such exemption or credit was not a major purpose of such transfer. "(b) CONTROL.—For purposes of subsection (a), the term 'control' means— " (1) With respect to a transferee corporation described in subsection (a)(1) or (2), the ownership by the transferor corporation, its shareholders, or both, of stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of the stock; or "(2) With respect to each corporation described in subsection (a)(3), the ownership by the five or fewer individuals described in such subsection of stock possessing— " (A) at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of the stock of each corporation, and " (B) more than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each such individual only to the extent such stock ownersliip is identical with respect to each such corjioration. jp^yj. purposes of this subsection, section 1563(e) shall apply in determining the ownership of stock. " (c) AUTHORITY OF THE SECRETARY TENDER T H I S SECTKJN.—The

26 USC 269.

provisions of section 269(b), and the authority of the Secretary under such section, shall, to the extent not inconsistent with the provisions of this section, be applicable to this section." (c) TECHNICAL AMENDJIENTS.— (1) AMENDMENT OF SECTION

26 USC 80^^"

802.—The second sentence of section 802(a)(1) (relating to tax on life insurance companies) is amended to read as follows: "Such tax shall consisi of a normal tax and surtax computed as provided in section 11 as though the life insurance company taxable income were Ihe taxable income referred to in section 11." (2) AMENDMENT OF SECTION 2«».—Section 260(a) (relating to acquisitions made to evade or avoid income tax) is amended by striking out "then such deduction, credit, or other allowance shall not be allowed" at the end of the first sentence and inserting in lieu thereof "then the Secretary or his delegate may «lisallow sijch deduction, credit, or oilier allowance".

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(3) SPECIAL RULE FOR 52-r)3-\VEEK YEAR.—Section 441(f)(2) (A) (relating to effective date with respect to special rules for o2-53-week year) is amended by striking out " I n any case in which the effective date or the applicability of any provision of this title is expressed in terms of taxable years beginning or ending with reference to a specified date"' and inserting in lieu thereof " I n any case in which the effective date or the applicability of any provision of this title is expressed in terms of taxable years beginning, including, or ending with reference to a specified date". (4) Subchapter B of chapter 6 is amended by iiLserting after the heading and before the table of sections the following:

127 68A Stat. 149. 26 USC 441.

"Part I. In general. "Part II. Certain font rolled corporationi,s.

"PART I—IN GENERAL" (d) EFFECTIVE DATE.—The amendments made by subsections (a) and (c) shall apply with respect to taxable years ending after December 31, 1963. The amendment made by subsection (b) shall apply with respect to transfers made after June 12, 1963. SEC. 236. VALIDITY OF TAX LIENS AGAINST PURCHASERS OF MOTOR VEHICLES. (a)

PURCHASERS WrrHouT A C I T A L

XOTICE OR KNOWLEIKJE OF

LiEX.—Section 6323 (relating to validity of liens for Federal taxes) 26 USC 6323. is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: "(d)

ExcErrrox ix (1\SE or MOTOR VEHICLES.—

" (1) ExcEFTiox.—Even though notice of a lien provided in section 6321 has been filed in the manner prescribed in subsection ^^ "^^ ^^^^' (a) of this section, the lien shall not be valid with respect to a motor vehicle, as defined in paragraph (2) of this subsection, as against any purcliaser of such motor vehicle for an adequate and full consideration in money or money's worth if— " (A) at the time of the purchase the purchaser is without notice or knowledge of the existence of such lien, and " (B) before the purchaser obtains such notice or knowledge, he has acquired possession of such motoi- vehicle and has not thereafter reUnquished possession of such motor vehicle to the seller or his agent. "(2) DEFIXITTOX OF MOTOR ixiiicLE.—As used in this subsection, the term "motor vehicle' means a self-propelled Aehicle which is registered for highway use under the laws of any State or foreign country." (b) XTEXS FOR ESTATE AXD GIFT TAXES.—Sex:*tion 6324 (relating ^^ "^^ ^^24. to special lien for estate and gift taxes) is ameiuled by adding at the end thereof the following new subsection: " (d) ExcEPTiox tx C.\SE or MOTOR YEincLES.—The lien imposed by subsection (a) or (b) shall not be valid with respect to a motor vehicle, as defined in section 6323(d)(2), as against any purchaser of

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Page:United States Statutes at Large Volume 78.djvu/170

 128

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

such motor vehicle for an adequate and full consideration in money or money's worth if— " (1) at the time of the purchase the purchaser is without notice or knowledge of the existence of such lien, and "(2) before the purchaser obtains such notice or knowledge, he has acquired possession of such motor vehicle and has not thereafter relinquished possession of such motor vehicle to the seller or his agent." (c) 68A Stat. 779. 26 USC 6323. 26 USC 6324.

76 Stat. 1003. 26 USC 911.

76 Stat. 51. 26 USC 165.

(1) Section 6323(a) is amended by striking out "subsection (c) " and inserting in lieu thereof "subsections (c) and (d) ". (2) Section 6324 is amended by inserting after "subsection (c) (relating to transfers of securities)" in subsections (a) and (b) the following: "and subsection (d) (relating to purchases of motor vehicles)". (d) EFFECTIVE DATES.—The amendments made by this section shall apply only with respect to purchases made after the date of the enactment of this Act. SEC. 237. EXCLUSION OF EARNED INCOME OF CERTAIN UNITED STATES CITIZENS WHO ARE RESIDENTS OF FOREIGN COUNTRIES. (a) REDUCTION OF LIMITATION.—Subparagraph ^B) of section 911(c)(1) (relating to limitations on amount of exclusion) is amended by striking out "$35,000" and inserting in lieu thereof "$25,000". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1964. SEC. 238. LOSSES ARISING FROM CONFISCATION OF PROPERTY BY CUBA. Se(5tion 165 (relating to losses) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsecticm (h) the following new subsection: "(i)

Ante, p. 43.

26 USC 6511.

CLERICAL AMENDMENTS.—

CERTAIN PROPERTY CONFISCATED BY CUUA.—For purposes of

this chapter, any loss of tangible property, if such loss arises from expropriation, intervention, seizure, or similar taking by the government of Cuba, any political subdivision thereof, or any agency or instrumentality of the foregoing, shall be treated as a loss from a casualty within the meaning of subsection (c)(3)." SEC. 239. CREDIT OR REFUND OF SELF-EMPLOYMENT TAX. Section 6511 (relating to limitations on credit or refund) is amended by adding at the end of subsection (d) the following new paragraph: "(5)

26 USC 14011403. 64 Stat. 514. 42 USC 418.

26 USC 7122,

SPECIAL PERIOD or

LIMITATION W^ITJI RESPECT TO SELF-

EMPLOYMENT TAX IN CERTAIN CASES.—If the claiui for credit or refund relates to an overpayment of the tax imposed by chapter 2 (relating to the tax on self-employment inconie) attributable to an agreement, or modification of an agreement, made pursuant to section 218 of the Social Security Act (relating to coverage of State and local employees), and if the allowance of a credit or refund of such overpayment is otherwise prevented by the operation of any law or rule of law other than section 7122 (relating to compromises), such ci-edit or refund may be allowed or made if claim therefor is filed on or before the later of the following dates: (A) the last day of the second year after the calendar year in which such agreement (or modification) is agreed to by the State and the Secretary of Health, Education, and Welfare, or (B) Decenil>er 31, 1965."

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Page:United States Statutes at Large Volume 78.djvu/171

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

SEC. 240. EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX ON VALUE OF REVERSIONARY OR REMAINDER INTEREST IN PROPERTY. (a) EXTENSION UNDER 1954 CODE.—Section 6163(b) (relating to extension of time for paying estate tax on value of reversionary or remainder interest in property to prevent undue hardship) is amended by striking out "not in excess of 2" and inserting in lieu thereof "or periods not in excess of 3". (b) EXTENSION UNDER 1939 CODE.—Section 925 of the Internal Revenue Code of 1939 (relating to periods of extension of time for paying estate tax attributable to future interests) is amended by striking out "not in excess of 2" and inserting in lieu thereof "or periods not in excess of 3". (c)

129

26us^c6f63.'

53 Stat. 140; 72 Stat. 1658.

EFFECTIVE D A T E. —

(1) The amendment made by subsection (a) shall apply in the case of any reversionary or remainder interest only if the time for payment of the tax under chapter 11 of the Internal Revenue Code of 1954 attributable to such interest, including any exten- ^^^ ^^^ 2°°^ ^' sions thereof, has not expired on the date of the enactment of seq. this Act. (2) The amendment made by subsection (b) shall apply in the case of any reversionary or remainder interest only if the time for payment of the tax under chapter 3 of the Internal Revenue Code of 1939 attributable to such interest, including 53 Stat, 119. any extensions thereof, has not expired on the date of the enactment of this Act.

Title III—Optional Tax On Individuals; Collection Of Income Tax At Source On Wages SEC. 301. OPTIONAL TAX IF ADJUSTED GROSS INCOME IS LESS THAN $5,000. (a) OFPIONAL TAX.—Section 3 (^relating to optional tax if adjusted gross income is less than $5,000) is amended to read as follows: "SEC. 3. OPTIONAL TAX IF ADJUSTED GROSS INCOME IS LESS THAN $5,000. " (a) TAXABLE YEARS BEGINNING I N 1964.—In lieu of the tax imposed by section 1, there is hereby imposed for each taxable year beginning on or after January 1, 1964, and before January 1, 1965, oji the taxable income of everj' individual whose adjusted gross income

68A Stat. 8.

26 USC 3.

^g usc'i^^*

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 PUBLIC LAW 88-272-FEB. 26, 1964

130

[78 STAT.

for such year is less than $5,000 and who has elected for such year to pay the tax imposed by this section, a tax as follows:

"Table I—Single Person—NOT Head of Household "Taxable Years Beginning in 1964 If a d j u s t e d gross income i s —

And the number o f exemptions is— 1

At least

2

3

But less than

4or more

If a d j u s t e d cross income is—

And the numl>er o f exemptions is—

1 At least

2

The tax is— $0 900 925 950 976 1,000 1.025 1,050 1,075 1,100 1,125 1,150 1,175 1,200 1,225 1,250 1,276 1,300 1,325 1,350 1,375 1,400 1,425 1,450 1,475 1,600 1,625 1,550 1,575 1,600 1,626 1,650 1,675 1,700 1,726 1,750 1,776 1,800 1,825 1,850 1.875 1,900 1,925 1,950 1,975 2,000 2,025 2,050 2,076 2,100 2,125 2,150 2,175 2,200 2,225 2,250 2.275 2,300 2,326 2,350 2,375 2.400 2,425

$900 925 960 975 1,000 1,025 1,050 1,076 1,100 1,126 1,150 1,176 1,200 1,225 1,250 1,275 1.300 1,325 1,350 1,375 1,400 1,425 1,460 1.476 1,500 1,525 1,550 1,575 1.600 1,626 1,660 1,675 1.700 1,726 1,750 1.775 1,800 1,825 1,850 1,875 1,900 1.925 1,950 1,976 2,000 2,025 2,050 2,075 2.100 2,126 2,150 2.175 2,200 2,226 2.250 2,276 2.300 2,325 2,350 2,375 2.400 2,425 2,450

$0 2 6 10 14 18 22 26 30 34 38 42 46 60 54 58 62 66 70 74 78 82 86 90 94 99 103 107 111 116 119 123 127 132 136 140 144 148 152 156 160 165 169 173 178 182 187 191 195 200 204 208 213 217 222 226 230 235 239 243 248 262 267

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 10 14 18 22 26 30 34 38 42 46 60 64 58 62 66 70 74 78 82 86 90 94 99 103 107 111 115 119 123 127 132 136

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 10 14 18 22

3

4

5

6

But less than

Tor more

The tax is— $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$2,450 2,475 2,500 2,526 2,550 2,575 2,600 2,625 2,650 2,675 2,700 2,725 2,750 2,775 2,800 2,825 2,850 2,876 2,900 2.926 2,950 2,976 3,000 3,050 3,100 3,150 3,200 3,250 3,300 3,350 3,400 3,450 3.500 3,560 3,600 3,650 3,700 3,750 3.800 3,850 3,900 3,950 4,000 4,050 4,100 4,150 4,200 4.250 4,300 4,350 4,400 4,450 4,500 4,550 4,600 4,650 4,700 4,750 4,800 4,850 4.900 4.950

$2,475 $261 $140 2,500 266 144 2,525 270 148 2,660 275 152 2,575 279 156 2,600 284 160 2,625 288 166 2,650 293 169 2,675 297 173 2,700 302 178 2,725 306 182 2,760 311 187 2,775 315 191 2,800 320 195 2,825 324 200 2,850 329 204 2,875 333 208 2,900 338 213 2,925 343 217 2,950 348 222 2,975 353 226 3,000 358 230 3.0.'iO 365 237 3,100 374 246 3,150 383 255 3,200 392 264 3,250 401 273 3,300 410 282 3,350 419 291 3,400 428 300 3,450 437 309 3,600 446 318 3,660 455 327 3,600 464 336 3,650 473 345 3,700 482 365 3,750 491 365 3,800 500 375 3,850 509 385 3,900 518 395 3,950 627 405 4,000 536 416 4,050 545 425 4,100 554 434 4,150 563 443 4.200 572 452 4.250 581 461 4,300 590 470 4,350 599 479 4,400 608 488 4,450 617 497 4,600 626 506 4.550 635 515 4,600 644 624 4.650 653 633 4,700 662 542 4,760 671 551 4.800 680 560 4,850 689 569 4,900 698 578 4,950 707 587 6,000 716 596

$26 30 34 38 42 46 50 64 58 62 66 70 74 78 82 86 90 94 99 103 107 111 117 125 134 142 150 l^ 167 176 184 193 202 211 219 228 237 246 255 264 273 282 291 300 309 318 327 336 345 355 365 375 385 396 406 416 425 436 446 455 465 475

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44 62 60 68 76 84 92 101 109 117 125 134 142 150 158 167 176 184 193 202 211 219 228 237 246 255 264 273 282 291 300 309 318 327 336

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44 52 60 68 76 84 92 101 109 117 125 134 142 150 168 167 176 184 193 202 211

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44 52 60 68 76 84 92

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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Page:United States Statutes at Large Volume 78.djvu/173

 PUBLIC LAW 88.272-FEB. 26, 1%4

78 STAT.]

131

"Table II—Head of Household "Taxable Years Beginning in 1964 If adjusted cross income is—

And the number of exemptions is— 1

At least

2

3

But less than

4or more

If adjusted gross income is—

And the number o f exemptions is—

1 At least

2

aw

975 1,000 1,025 1,050 1,075 1,100 1,125 1,160 1,176 1,200 1.225 1,250 1.275 1,300 1.325 1,350 1,375 1,400 1,426 1,460 1,475 1,600 1,625 1,5.'W 1,675 1,600 1,625 1,6m 1,676 1,700 1,726 1.760 1,776 1,800 1,826 1.860 1,876 1,900 1,925 1,960 1.976 2,000 2.026 2,060 2,076 2.100 2.126 2,160 2.176 2,200 2.226 2,260 2,276 2,300 2.326 2.350 2.376 2.400 2,426

$900 925 950 975 1,000 1,025 1,060 1,075 1,100 1,125 1,150 1,175 1,200 1,226 1,250 1,275 1.300 1,325 1,3.50 1,376 1,400 1,425 1,450 1,475 1.600 1,625 1.6.'>0 1,675 1,600 1,626 l,6.'i0 1,675 1.700 1,725 1,760 1,776 1,800 1.826 1.860 1,876 1,900 1,926 1,960 1.976 2,000 2.026 2,050 2,075 2,100 2,126 2.160 2.176 2,200 2,226 2,260 2.275 2,300 2.326 2,360 2,375 2,400 2,426 2,460

$0 2 6 10 14 18 22 26 30 34 38 42 46 60 64 68 62 66 70 74 78 82 86 90 94 98 102 106 110 114 118 122 126 130 134 138 142 146 160 164 158 162 167 171 176 180 184 188 193 197 202 206 210 216 219 223 228 232 237 241 246 250 254

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 10 14 18 22 26 30 34 38 42 46 60 64 68 62 66 70 74 78 82 86 90 94 98 102 106 110 114 118 122 126 130 134

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 10 14 18 22

4

6

6

7or more

But less than

The tax is— $0 900 925

3

The tax is—

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$2,460 2,476 2,600 2,525 2,660 2,575 2,600 2,626 2,650 2,675 2,700 2,726 2,750 2,776 2,800 2,825 2,850 2,875 2,900 2,926 2.950 2,976 3,000

3, aw 3,100 3,160 3,200 3,250 3.300 3.360 3,400 3,460 3.600 3,660 3.600 3,660 3,700 3.760 3.800 3.860 3,900 3,960 4,000 4,060 4.100 4.160 4.200 4,250 4,300 4,360 4,400 4,460 4,600 4,660 4,600 4.660 4,700 4,760 4.800 4,860 4,900 4,960

$2,476 $258 2,600 263 2,625 267 2,660 272 2,575 276 2,600 280 2,625 286 2, mi 289 2.675 293 2,700 298 2,725 302 2,750 307 2,776 311 2,800 316 2,825 320 2, aw 324 2,875 328 2,900 333 2,925 337 2,950 342 2.975 347 3.000 352 3.050 358 3,100 367 3,150 375 3,200 384 3,250 392 3,300 401 3,350 410 3,400 418 3,450 427 3.600 435 3,650 444 3.600 462 3,660 461 3.700 469 3,760 478 3,800 487 3,860 495 3,900 504 3.950 612 4,000 621 4.050 529 4,100 538 4,160 646 4.200 555 4,250 563 4,300 572 4,360 581 4.400 689 4.450 598 4,500 606 4,660 615 4.600 623 4,650 632 4,700 640 4,760 649 4,800 658 4,850 666 4,900 675 4,960 683 5,000 692

$138

142 146 160 154 168 162 167 171 175 180 184 188 193 197 202 206 210 216 219 223 228 234 243 2.52

261 269 278 287 296 304 313 322 331 340 349 359 368 378 387 397 406 416 424 432 441 449 458 467 475 484 492 501 509 518 626 635 644 662

$26 30 34 38 42 46 60 64 68 62 66 70 74 78 82 86 90 94 98 102 106 110 116 124 132 140 148 1.56

164 173 182 191 199 208 217 226 234 243 252 261 269 278 287 296 304 313 322 331 340 349 369 368 378 387 397 406 416 426 436

661 i 444

669 678

464 463

$0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 0 12 0 20 0 28 0 36 0 44 0 62 0 60 0 68 0 76 0 84 0 92 0 100 0 108 0 116 4 124 12 132 20 140 28 148 36 166 44 164 62 173 60 182 68 191 76 199 84 208 92 217 100 226 108 234 116 243 124 262 132 261 140 269 148 278 166 287 164 296 173 304 182 313 191 322 199 331 208

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44 62 60 68 76 84 92

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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Page:United States Statutes at Large Volume 78.djvu/174

 132

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

'Table III—Married Persons Filing JOINT Returns 'Taxable Years Beginning in 1964 IfadjastedKross income is—

At least

But less than

And the number o f exemptions is— 3

2

4or more

If a d j u s t e d cross income is—

And the number o f exemptions is—

2 At l e a s t

3

The tax is— $0 1.600 1,626 1,650 1,675 1,700 1,725 1,760 1,775 1,800 1,825 1,860 1,876 1,900 1,026 1,960 1,976 2,000 2,025 2,060 2,076 2,100 2,126 2,150 2,175 2,200 2,225 2,250 2,275 2,300 2,325 2,350 2,375 2,400 2,426 2,460 2,475 2,600 2,525 2,560 2,575 2,600 2,625 2.650 2,676 2,700 2,725 2,760 2.775

$1,600 1,626 1,660 1,676 1,700 1,726 1,760 1,776 1,800 1,825 1,860 1,875 1,900 1,925 1,950 1,975 2,000 2,025 2,050 2,076 2,100 2,125 2,160 2,175 2,200 2,225 2,260 2,275 2,300 2,325 2,350 2,375 2,400 2,425 2.450 2,476 2,500 2,625 2,550 2,575 2,600 2,625 2,660 2,675 2,700 2,725 2,750 2,775 2,800

90 2 6 10 14 18 22 26 30 34 38 42 46 50 64 68 62 66 70 74 78 82 86 90 94 98 102 106 110 114 118 122 126 130 134 138 142 146 150 154 158 162 166 170 174 179 183 187 191

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 10 14 18 22 26 30 34 38 42 46 60 64 58 62 66 70 74 78

4

5

6

But less than

Tor more

The tax is— $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$2,800 2,825 2,850 2,875 2,900 2,926 2,950 2,976 3,000 3,050 3,100 3,160 3,200 3,260 3,300 3,350 3,400 3,450 3,600 3,560 3,600 3,650 3,700 3,750 3,800 3,850 3,900 3.950 4.000 4.050 4.100 4.150 4.200 4.250 4.300 4.350 4.400 4.450 4,600 4,550 4,600 4.660 4.700 4,750 4.800 4,850 4,900 4,950

$2,825 2,860 2,876 2,900 2,925 2,950 2,975 3,000 3,050 3,100 3,150 3,200 3,250 3,300 3,350 3,400 3,450 3.600 3,660 3.600 3,660 3.700 3,750 3,800 3,850 3,900 3,950 4,000 4.050 4,100 4,150 4,200 4,250 4,300 4,350 4,400 4,450 4,500 4,550 4,600 4,650 4,700 4,750 4,800 4,850 4,900 4,950 5,000

$196 199 203 207 212 216 220 224 230 238 247 265 263 271 280 288 296 304 313 321 329 338 347 356 364 373 382 391 399 407 415 423 430 438 446 454 462 470 478 486 493 501 509 518 526 534 542 550

$82 86 90 94 98 102 106 110 116 124 132 140 148 166 164 172 181 189 197 205 214 222 230 238 247 256 263 271 280 288 296 304 313 321 329 338 347 366 364 373 382 391 399 408 417 426 434 443

$0 0 0 0 0 0 0 0 4 12 20 28 36 44 52 60 68 76 84 92 100 108 116 124 132 140 148 166 164 172 181 189 197 206 214 222 230 238 247 265 263 271 280 288 296 304 313 321

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44 62 60 68 76 84 92 100 108 116 124 132 140 148 166 164 172 181 189 197 206

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44 52 60 68 76 84 92

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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Page:United States Statutes at Large Volume 78.djvu/175

 133

PUBLIC LAW 88-272-FEB. 26, 1964

78 STAT. ]

"Table IV—Married Persons Filing SEPARATE Returns "10 PERCENT STANDARD DEDUCTION "Taxable Years Beginning in 1964 If a d j u s t e d gross income is— At least

But less than

And the number o f exemptions is— 1

2

3

4 or more

If a d j u s t e d gross Income is— At least

But less than

And the number o f exemptions is—

1

2

3

The tax is— $0 676 700 725 760 776 800 826 860 876 900 926 960 976 1,000 1,026 1,060 1,076 1,100 1,126 1.150 1,176 1,200 1,225 1,250 1,276 1,300 1,325 1.360 1,375 1,400 1,425 1,460 1,475 1,500 1,626 1,560 1,676 1,600 1.625 1,650 1,675 1,700 1,726 1,760 1,776 1,800 1,826 1,850 1,875 1.900 1,926 1,960 1,976 2,000 2,025 2,050 2,075 2.100 2,126 2,160 2,175 2,200 2,226 2,260 2,276 2.300

$675 700 725 750 775 800 825 860 876 900 926 960 975 1,000 1.026 1,060 1,076 1,100 1,125 1,160 1,176 1,200 1,225 1,250 1,276 1,300 1,325 1,360 1,375 1,400 1,425 1,450 1,475 1,500 1,525 1,560 1,575 1,600 1,625 1,650 1,675 1,700 1,725 1,750 1,775 1,800 1,825 1,850 1,875 1,900 1,925 1,950 1,975 2,000 2,026 2,050 2,075 2,100 2,126 2,150 2,175 2,200 2,225 2,260 2,275 2,300 2,326

$0 3 7 10 14 17 21 25 28 32 36 39 43 46 50 63 67 61 64 68 71 75 79 82 86 90 93 97 101 106 108 112 116 119 123 127 131 134 138 142 146 149 163 167 160 164 168 172 176 180 184 188 192 196 199 203 207 211 216 219 223 227 231 236 239 243 247

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 4 8 11 15 19 22 26 29 33 37 40 44 47 51 66 58 62 66 69 73 76 80 84 87 91 95 98 102 106 109 113 117 121 124 128 132 135 139 143

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 9 13 16 20 23 27 31 34 38 41 46

4

5

6

7

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 11 18 26 32 40 47 54 61 68 76 83 90 98 106 113 120 127 136 142

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 8 16 23 30 37 44

8or more

The tax Is— $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$2,325 2,350 2,375 2,400 2.425 2,450 2,475 2,500 2,526 2,650 2,676 2,600 2,625 2,650 2,675 2,700 2,725 2,750 2,775 2,800 2.825 2,850 2,875 2.900 2.925 2.960 2.975 3,000 3,060 3,100 3,160 3,200 3,250 3,300 3,350 3,400 3,450 3,600 3,660 3,600 3,650 3,700 3,750 3,800 3,850 3,900 3,950 4,000 4,050 4,100 4,150 4,200 4,250 4,300 4,350 4,400 4,460 4,600 4,550 4,600 4,660 4,700 4,750 4,800 4,850 4,900 4,950

$2,360 $261 $147 2,376 266 150 2,400 259 154 2,426 263 158 2,460 267 161 2,475 271 165 2,600 276 169 2,526 279 173 2,660 283 177 2,576 287 181 2,600 291 186 2,625 296 189 2,650 299 193 2,675 303 197 2,700 307 201 2,725 311 206 2,750 316 209 2,775 320 213 2,800 324 217 2,825 328 220 2,860 332 224 2,875 336 228 2,900 340 232 2.925 344 236 2.960 349 240 2,976 353 244 3.000 358 248 3,050 366 254 3,100 374 262 3,150 383 270 3,200 392 278 3,250 401 286 3,300 410 295 3,350 419 303 3,400 428 311 3,450 437 319 3,600 446 327 3,550 456 335 3,600 464 344 3,660 473 353 3,700 482 362 3,750 491 371 3,800 500 380 3,850 509 389 3,900 518 398 3,950 627 407 4,000 536 416 4,050 646 426 4,100 554 434 4,150 663 443 4,200 672 452 4,250 681 461 4,300 690 470 4,350 599 479 4,400 608 488 4,460 617 497 4,500 626 606 4,550 635 516 4,600 644 624 4,660 653 633 4,700 662 642 4,750 671 551 4,800 680 560 4,850 689 569 4,900 698 578 4,960 707 587 6,000 716 696

$49 52 66 69 63 67 70 74 77 81 85 88 92 96 100 103 107 111 114 118 122 126 129 133 137 140 144 160 167 165 173 180 188 196 204 212 220 228 236 243 251 259 268 276 284 292 300 308 316 324 332 341 350 359 368 377 386 396 404 413 422 431 440 449 458 467 476

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 7 10 14 17 21 26 28 32 35 39 43 46 52 69 66 73 80 88 95 103 110 118 126 132 140 147 166 162 170 178 186 194 201 209 217 226 233 241 249 257 266 273 281 289 297 305 313 322 330 338 347 366

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 13 20 28 36 42 49 66 64 71 78 86 93 100 108 115 122 130 137 145 152 160 167 175 183 191 199 207 215 222 230 238 246

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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Page:United States Statutes at Large Volume 78.djvu/176

 134

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

"MINIMUM STANDARD DEDUCTION "Taxable Years Beginning in 1964 If a d j u s t e d
 * Table V—Married Persons Filing SEPARATE Returns
 * T<MM income is—

At least

But

And the number o f exemptions is— 1

2

3

less than

4 or more

If a d j u s t e d gross income is—

At

But

least

And the number o f exemptions is

1

2

3

$800 825 850 876 900 926 950 975 1,000 1,025 1,050 1,076 1,100 1,125 1,150 1,175 1,200 1,225 1,250 1,276 1,300 1,325 1,360 1,375 1,400 1,425 1,450 1,475 1,500 1,525 1,650 1,676 1,600 1,625 1,650 1,676 1,700 1,725 1,760 1,775 1.800 1,825 1,850 1,875 1,900 1,925 1,950 1,975 2.000 2,026 2,060 2,076 2.100 2,125 2,160 2,176 2,200 2.226 2,250 2,276 2,300 2.325 2,360 2.375 2,400

$0 2 6 10 14 18 22 26 30 34 38 42 46 50 64 58 62 66 70 74 78 82 86 90 94 99 103 107 111 116 119 123 127 132 136 140 144 148 152 156 160 165 169 173 178 182 187 191 195 200 204 208 213 217 222 226 230 235 239 243 248 252 267 261 266

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 10 14 18 22 26 30 34 38 42 46 50 54 68 62 66 70 74 78 82 86 90 94 99 103 107 111 115 119 123 127 132 136 140 144

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 10 14 18 22 26 30

5

6

7

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44

less than

The tax i s $0 800 825 850 875 900 925 960 975 1.000 1,026 1,050 1,075 1,100 1,125 1,150 1,175 1,200 1,225 1,250 1,275 1,300 1,325 1,350 1,375 1,400 1,425 1,450 1,475 1,500 1,626 1,550 1,676 1,600 1,625 1,650 1.675 1,700 1,725 1,760 1,776 1,800 1,826 1,850 1,875 1,900 1,925 1.960 1,976 2,000 2,025 2.050 2,075 2,100 2,125 2,150 2.175 2.200 2,226 2,250 2.276 2,300 2.325 Z350 2.376

4

8or more

The tax i s $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$2,400 2,426 2,450 2,475 2,500 2,525 2,550 2,575 2,600 2,625 2,650 2,675 2,700 2,725 2,760 2,775 2,800 2,825 2,850 2,875 2,900 2,925 2,950 2,975 3,000 3,050 3,100 3,160 3,200 3,250 3,300 3,350 3,400 3,450 3.500 3,550 3,600 3,650 3,700 3,750 3.800 3,850 3.900 3,950 4,000 4,050 4.100 4.150 4.200 4,250 4.300 4,350 4,400 4,450 4,600 4,550 4,600 4,650 4.700 4.7.W 4,800 4.850 4.900 4.950

$2,425 $270 $148 2,450 275 152 2,476 279 156 2,500 284 160 2,525 288 165 2,550 293 169 2,575 297 173 2,600 302 178 2,625 306 182 2,650 311 187 2,675 315 191 2,700 320 195 2,726 324 200 2,750 329 204 2,776 333 208 2,800 338 213 2,825 343 217 2,850 348 222 2,875 353 226 2,900 358 230 2,925 363 235 2,950 368 239 2,975 373 243 3,000 378 248 3,050 386 256 3,100 395 264 3,150 405 273 3,200 415 282 3,250 425 291 3,300 435 300 3,350 445 309 3,400 455 318 3.450 465 327 3,500 475 336 3,550 485 345 3,600 495 355 3,650 505 365 3,700 515 375 3,750 525 385 3,800 535 395 3,850 545 405 3.900 655 415 3,950 565 425 4,000 575 435 4,050 585 445 4,100 695 455 4,150 605 465 4,200 615 475 4,250 625 485 4,300 635 495 4.350 645 505 4,400 655 515 4,450 665 525 4,500 675 535 4,550 685 646 4,600 695 555 4,650 705 565 4,700 715 575 4,750 725 585 4.800 735 595 4,850 746 605 4.900 768 615 4,960 769 625 6.000 781 635

$34 38 42 46 50 54 58 62 66 70 74 78 82 86 90 94 99 103 107 111 115 119 123 127 134 142 150 158 167 176 184 193 202 211 219 228 237 246 255 264 273 282 291 300 309 318 327 336 345 355 365 375 385 395 405 415 425 435 445 455 465 475 485 496

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 10 14 20 28 36 44 62 60 68 76 84 92 101 109 117 125 134 142 150 158 167 176 184 193 202 211 219 228 237 246 255 264 273 282 291 300 309 318 327 336 345 355

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44 52 60 68 76 84 92 101 109 117 126 134 142 160 158 167 176 184 193 202 211 219 228 237 246

a (f

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 12 20 28 36 44 62 60 68 76 84 92 101 109 117 125 134 142

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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Page:United States Statutes at Large Volume 78.djvu/177

 PUBLIC LAW 88-272-FEB. 26, 1964

78 STAT. ]

135

" (b) TAXABLE YEARS HK«IXNIXG AFTER DECEMHEK 'M. lOW.—In lieu of the tax imposed by section 1, there is hereby imposed for each taxable year beginning after December 31, 1964, on the taxable income of every indivicUial Avliose adjusted gross income for such year is less than $5,000 and who has elected for such year to [ray the tax imposed by this sectier of exemptions is—

1 At least

2

$900 925 950 976 1,000 1,025 1,050 1,075 1,100 1,126 1,150 1,175 1,200 1,225 1,250 1,275 1,300 1,325 1,350 1,375 1,400 1,426 1,450 1,476 1,500 1,525 1,560 1,675 1,600 1,625 1,660 1,675 1.700 1,725 1,750 1,776 1,800 1,826 1,860 1,876 1,900 1,925 1,950 1,976 2.000 2,026 2,060 2.076 2,100 2,125 2.150 2.175 2,200 2,225 2,260 2.276 2,300 2,.325 2,350 2.376 2,400 2.425 2,450

$0 2 5 9 12 16 19 23 26 30 33 37 40 44 47 51 64 58 61 65 68 72 76 79 83 87 91 94 98 102 106 109 113 117 121 124 128 132 136 139 143 147 161 155 159 163 167 171 176 179 183 187 191 195 199 203 207 211 215 219 223 227 231

31-667 0-65—12

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 9 12 16 19 23 26 30 33 37 40 44 47 61 64 68 61 66 68 72 76 79 83 87 91 94 98 102 106 109 113 117 121

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 6 9 12 16 19

4

6

6

But less than

Tor more

The tax is—

The tax is— $0 900 925 950 975 1,000 1,025 1,050 1,075 1,100 1,126 1,150 1,175 1,200 1,226 1,250 1,275 1,300 1,325 1,350 1,376 1,400 1,426 1,450 1,475 1,500 1,626 1,550 1,575 1,600 1,625 1,650 1,676 1,700 1,725 1,760 1,776 1.800 1,826 1,860 1,876 1,900 1,925 1,960 1.976 2,000 2,025 2,060 2,076 2,100 2,126 2.150 2,176 2,200 2,225 2,250 2,276 2.300 2.325 2.350 2,378 2.400 2,425

3

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$2,460 2,475 2,500 2,525 2,650 2,576 2,600 2,625 2,650 2,676 2,700 2,725 2.760 2,775 2,800 2,825 2,850 2,875 2,900 2,926 2,960 2,975 3,000 3,050 3.100 3,150 3,200 3,250 3,300 3,350 3,400 3,450 3,500 3,5.'iO 3.600 3,660 3,700 3,750 3,800 3,850 3.900 3,950 4,000 4.050 4,100 4,150 4,200 4,250 4,300 4,350 4,400 4,460 4,600 4,650 4,600 4,6.50 4,700 4.750 4,800 4,850 4,900 4,950

$2,475 $236 $124 2,500 240 128 2,625 244 132 2,550 248 136 2.576 253 139 2,600 257 143 2,625 261 147 2,650 265 151 2.675 270 155 2,700 274 169 2,725 278 163 2,750 282 167 2,775 287 171 2,800 291 175 2,825 295 179 2,850 299 183 2,875 304 187 2,900 308 191 2,925 312 195 2,950 317 199 2,975 322 203 3,000 327 207 3,050 333 213 3,100 342 221 3,150 350 229 3,200 369 238 3,250 367 246 3,300 376 255 3,360 385 263 3,400 393 272 3,450 402 280 3,600 410 289 3,5.'iO 419 297 3,600 427 306 3, em 436 316 3,700 444 324 3,760 453 334 3,800 462 343 3,850 470 353 3,900 479 362 3,950 487 372 4,000 496 381 4,050 504 390 4,100 513 399 4,150 521 407 4,200 530 416 4,250 538 424 4,300 547 433 4,350 556 442 4,400 564 460 4,450 573 459 4,500 581 467 4,650 590 476 4,600 598 484 4.650 607 493 4,700 615 501 4,750 624 510 4,800 633 519 4.850 641 527 4,900 660 536 4.950 668 544 6,000 667 553

$23 26 30 33 37 40 44 47 51 64 58 61 65 68 72 76 79 83 87 91 94 98 104 111 119 126 134 141 149 167 165 173 181 189 197 205 213 221 229 238 246 255 263 272 280 289 297 306 316 324 334 343 353 362 372 381 391 400 410 419 429 438

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 11 18 26 32 39 46 63 60 67 74 81 89 96 104 111 119 126 134 141 149 157 165 173 181 189 197 205 213 221 229 238 246 255 263 272 280 289 297 306

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 11 18 25 32 39 46 63 60 67 74 81 89 96 104 111 119 126 134 141 149 167 165 173 181 189

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 11 18 25 32 39 46 63 60 67 74 81

$0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Ante, p. 19.

26 USC 1.

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Page:The Eurypterida of New York Volume 1.pdf/162

 and     from the Frankfort shales complete the list of North American representatives of the genus.

In Europe a considerable number of species were described by Salter and Woodward but the principal advance in the knowledge of the genus and its structural details has been made by F. Schmidt [ 1883] and Holm [ 1898]. Both of these authors described the  from Oesel, which had already served as the subject of Nieszkowski's investigations and was at that time identified with   DeKay. Schmidt corrected and supplemented in many ways Hall's and Nieszkowski's descriptions of the endognathites, demonstrated the presence of five separate sternites (Hall knew but one, the operculum, and Nieszkowski assumed six) and showed that they are open on the ventral side. He further pointed out differences in the appendages of the first and second sternites in individuals otherwise alike and attributed these to sexual differences. In the dolomite marls of Oesel these merostomes are not preserved as in the waterlimes of New York where the integument is fully carbonized. By most skilful manipulation Holm succeeded in removing from the matrix the integumetal film of  and was thus enabled to study these parts by transmitted light, and to describe the structure of the integument with a completeness that could be equaled only from the living organisms themselves. We shall not here enter upon a detailed review of the results of his investigations, but shall point out the more important of the determinations, since there is no reason to doubt that entirely similar structures existed in the closely related species  and. Indeed, our material verifies several of his detailed discoveries referred to below.

The absence of facets in the compound eyes was conclusively shown by transmitted light. On the underside of the cephalothorax the presence