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PUBLIC LAW 91-172-DEC. 30, 1969 "(d)

Ante,

p. 619.

[83 STAT.

UNRECo^^ERED L O S S E S. —

"(1) IN GENERAL,—For purposes of this section, the amount of any unrecovered loss sustained as a result of any compensable injury is— " (A) the sum of the amount of the net operating losses (as determined under section 172) for each taxable year in whole or in part within the injury period, to the extent that such net operating losses are attributable to such compensable injury, reduced by " (B) the sum of— " (i) the amount of the net operating losses described in subparagraph (A) which were allowed for any prior taxable year as a deduction under section 172 as a net operating loss carryback or carryover to such taxable year, and "(ii) the amounts allowed as a deduction under subsection (a) for any prior taxable year for prior recoveries of compensatory amounts for such compensable injury. " (2) I N J U R Y PERIOD.—For purposes of paragraph

(1), the

injury period is— " (A) with respect to any infringement of a patent, the period in which such infringement occurred, " (B) with respect to a breach of contract or breach of fiduciary duty or relationship, the period during which amounts would have been received or accrued but for the breach of contract or breach of fiduciary duty or relationship, and " (C) with respect to injuries sustained by reason of any conduct forbidden in the antitrust laws, the period in which such injuries were sustained. "(3)

N E T OPERATING LOSSES ATTRIBUTABLE TO COMPENSABLE

INJURIES.—For purposes of paragraph (1) — " (A) a net operating loss for any taxable year shall be treated as attributable to a compensable injury to the extent of the compensable injury sustained during such taxable year, and " (B) if only a portion of a net operating loss for any taxable year is attributable to a compensable injury, such portion shall (in applying section 172 for purposes of this section) be considered to be a separate net operating loss for such year to be applied after the other portion of such net operating loss. "(e) EFFECT ON N E T OPERATING Loss CARRYOVERS.—If for the taxable year in which a compensatory amount is received or accrued any portion of a net operating loss carryover to such year is attributable to the compensable injury for which such amount is received or accrued, such portion of such net operating loss carryover shall be reduced by an amount equal to— "(1) the deduction allowed under subsection (a) with respect to such compensatory amount, reduced by "(2) any portion of the unrecovered losses sustained as a result of the compensable injury with respect to which the period for carryover under section 172 has expired." (b) CLERICAL AMENDMENT.—The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end therebf the following new item: "Sec. 186. Recoveries of damages for antitrust violations, etc."

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1968.

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Page:United States Statutes at Large Volume 83.djvu/741

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

SEC. 905. CORPORATIONS USING APPRECIATED PROPERTY TO REDEEM THEIR OWN STOCK. (a) GEXERALKuLE.--Section:Ul (reliiting to tsixsibility of corporation on distribution) is amended by adding at the end thereof the following new subsection: "(d)

713

jrusc'an*'

AVPRECIATED PlJOl'EUTY U s E D To R E D E E M S TO C K. " (1) INGEXERAL.—If—

" (A) a corporation distributes property (other tlian an obligation of such corporation) to a shareholder in a redemption (to which subpart A applies) of part or all of his stock in such corporation, and " (B) the fair market A'alue of such property exceeds its adjusted basis (in the hands of the distributing corporation), then again shall be recognized to the distributing corporation in an amount equal to such excess as if the property distributed had been sold at the time of the distribution. Subsections (b) and (c) shall not apply to any distribution to which this subsection applies. "(2) ExcEi'-rioxs AXD LI^MITATIOXS.—Paragraph (1) shall not apply to— " (A) a distribution in complete redemption of all of the stock of a shareholder who, at all times within the 1-2-month period eiuling on the date of such distribution, owns at least 10 percent in value of the outstanding stock of the distributing corporation, but only if the redemption (jualifies under section o02(b)(P>) (determined without the application of 26 USC 302. section 302(c)(2)(A) ( i i)); " (B) a distribution of stock or an obligation of a corporation— "(i) which is engaged in at least one trade or business, "(ii) which has not received property constituting a substantial part of its assets from the distributing corporation, in a transaction to which section 351 applied or as a contribution to capital, within the r)-year period ending on the date of the distribution, and "(iii) at least 50 percent in value of the outstanding stock of which is owned by the distributing corporation at any time within the 9-year perid ending one year before the date of the distribution; " (C) a distribution before Deceml)er 1, 1974, of stock of a corporation substantially all of the assets of which the distributing crporation (or a corporation which is a member of the same afliliated group (as defined in section 1504(a)) as ^^^J'Vr^J^!,^" the distributing corporation) held on November 30, lOGO, if 26 USC 1504. such assets constitute a trade oi' business which has been actively conducted throughout the one-yeai- period ending on the date of the distribution; "(1)) a distribution of stock or securities pursuant to the terms of a final judgment rendered by a court with respect to the distributing corporation in a court proceeding under the Sherman Act (20 Stat. 209; 15 TLS.(\ 1-7) or the Clayton Act (38 Stat. 730: 15 U.S.C. 12-27), or both, to which the United States is a party, but only if the distiibution of such stock or securities in redemption of the distributing corporation's stock is in furtherance of the purposes of the judgment; " (E) a distribution to the extent that section 303(a) (relating to distributions in redemption of stock to pay death taxes) applies to such distribution;

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PUBLIC LAW 91-17^DEC. 30, 1969

[83 STAT.

" (F) a distribution to a private foundation in redemption of stock which is described in section 5 3 7 (b)(2)(A) and (B);and " (G) a distribution by a corporation to which part I of subchapter M (relating to regelated investment companies) applies, if such distribution is in redemption of its stock upon the demand of the shareholder."

Post. p. 715. 68A Stat. 268. 851-855. (b)

CONFORMING AMENDMENTS.—

(1) Section 311(a) is amended by striking out "subsections (b) and (c) " and inserting in lieu thereof "subsections (b), (c), and (d) ". (2) Sections301(b)(1)(B) (ii),301(d)(2)(B), and 3 1 2 (c)(3) are each amended by striking out "subsection (h) or (c) " and inserting in lieu thereof "subsection (b), (c), or (d) ". (c) EFFECTIVE DATE.—

68A Stat. 182.

26 USC 303.

(1) Except as provided in paragraphs (2) and (3), the amendments made by subsections (a) and (b) shall apply with respect to distributions after November 30, 1969. (2) The amendments made by subsections (a) and (b) shall not apply to a distribution before April 1, 1970, pursuant to the terms of— (A) a written contract which was binding on the distributing corporation on November 30, 1969, and at all times thereafter before the distribution, (B) an offer made by the distributing corporation before December 1, 1969, (C) an offer made in accordance with a request for a ruling filed by the distributing corporation with the Internal Revenue Service before December 1, 1969, or (D) an offer made in accordance with a registration statement filed with the Securities and Exchange Commission before December 1, 1969. For purposes of subparagraphs (B), (C), and (D), an offer shall be treated as an offer only if it was in writing and not revocable by its express terms. (3) The amendments made by subsections (a) and (b) shall not apply to a distribution by a corporation of specific property in redemption of stock outstanding on November 30, 1969, if— (A) every holder of such stock on such date had the right to demand redemption of his stock in such specific property, and (B) the corporation had such specific property on hand on such date in a quantity sufficient to redeem all of such stock. For purposes of the preceding sentence, stock shall be considered to have been outstanding on November 30, 1969, if it could have been acquired on such date through the exercise of an existing right of conversion contained in other stock held on such date. SEC. 906. REASONABLE ACCUMULATIONS BY CORPORATIONS. (j^) GENERAL RULE.—Section 537 (relating to reasonable needs of the business) is amended to read as follows: "SEC. 537. REASONABLE NEEDS OF THE BUSINESS, " (a) GENERAL RULE. — For purposes of this part, the term 'reasonable needs of the business' includes— "(1) the reasonably anticipated needs of the business, «^2) the section 303 redemption needs of the business, and "(3) the excess business holdings redemption needs of the business.

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Page:United States Statutes at Large Volume 83.djvu/743

 83

STAT. ]

PUBLIC LAW 91.172-DEC. 30, 1969

715

" (b) SPECIAL RULES. — For purposes of subsection (a) — "(1) SECTION 303 REDEMPTION NEEDS.—The term 'section 303 26 USC^303^' redemption needs' means, with respect to the taxable year of the corporation in which a shareholder of the corporation died or any taxable year thereafter, the amount needed (or reasonably anticipated to be needed) to make a redemption of stock included in the gross estate of the decedent (but not in excess of the maximum amount of stock to which section 303(a) may apply). "(2) EXCESS BUSINESS HOLDINGS REDEMPTION NEEDS.—The term 'excess business holdings redemption needs' means, with respect to taxable years of the corporation ending after May 26, 1969, the amount needed (or reasonably anticipated to be needed) to redeem from a private foundation stock which— " (A) such foundation held on May 26, 1969 (or which was received by such foundation pursuant to a will or irrevocable trust to which section 4943(c)(5) applies), and ^"f^, p. 507. " (B) constituted excess business holdings on May 26, 1969, or would have constituted excess business holdings as of such date if there were taken into account (i) stock received pursuant to a will or trust described in subparagraph (A), and (ii) the reduction in the total outstanding stock of the corporation which would have resulted solely from the redemption of stock held by the private foundation. "(3) OBLIGATIONS INCURRED TO MAKE REDEMPTIONS.—In applying paragraphs (1) and (2), the discharge of any obligation incurred to make a redemption described in such paragraphs shall be treated as the making of such redemption. "(4) No INFERENCE AS TO PRIOR TAXABLE TEARS.—The application of this part to any taxable year before the first taxable year specified in paragraph (1) or (2) shall be made without regard to the fact that distributions in redemption coming within the terms of such paragraphs were subsequently made."' (b) EFFI'.CTIVE DATE.—The amendment made by subsection (a) shall apply to the tax imposed under section 531 of the Internal Revenue Code of 1954 with respect to taxable years ending after May 26, 1969. SEC. 907. INSURANCE COMPANIES. (a)

S P E C I A L C O N T I N G E N C Y RESERVES I^NDER (TROUP CONTRACTS.— (1) INTEREST PAID.—Section 805(e)(4) (relating to interest

73 Stat. iis.

paid on certain reserves) is amended to read as follows: "(4)

INTEREST ON CERTAIN SPECIAL CONTINGENCY RESERVES.—

Interest for the taxable year on special contingency reserves under contracts of group term life insurance or group health and accident insurance which are established and maintained for the provision of insurance on retired lives, for premium stabilization, or for a combination thereof." (2) RULES FOR CERTAIN CONTINGENCY RESERVES.—Section 810(c) (relating to items taken into account as reserves) is amended by inserting after paragraph (5) the following new paragraph: "(6) Special contingency reserves under contracts of group term life insurance or group health and accident insurance which are established and maintained for the provision of insurance on retired lives, for premium stabilization, or for a combination thereof."

^3 Stat. 125.

(b) CERTAIN DISTRIBUTIONS.—

(1) EXCEPTION FROM DEFINITION OF DISTRIBUTION. SectioU 815(f) (relating to definition of distribution) is amended— 78 Stat. 859; (A) by striking out "or" at the end of paragraph (3); ^' ^*"*- ^^''• (B) by striknig out the period at the end of paragraph (4) and inserting in lieu thereof "; or";

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Page:United States Statutes at Large Volume 83.djvu/744

 716

26 USC 355.

Ante, p. 715.

PUBLIC LAW 91-172-DEC. 30, 1969

[83

STAT.

(C) by inserting after paragraph (4) the following new paragraph: "(5) any distribution after December 31, 1968, of the stock Qf a controlled corporation to which section 355 applies, if such distribution is made to a corporation which immediately after the distribution is the owner of all the stock of all classes of both the distributing corporation and such controlled corporation and if, immediately before the distribution, the dis-' tributing corporation had been the owner of all of the stock of all classes of such controlled corporation at all times since December 31, 1957."; (D) by striking out "Neither paragraph (3) nor paragraph (4) shall apply" in the next to the last sentence and inserting in lieu thereof "Paragraphs (3), (4), and (5) shall not apply"; and (E) by striking out "paragraphs (3) and (4) " in the last sentence and inserting in lieu thereof "paragraphs (3), (4), and (5)". ^2) SPECIAL RULE.—Section 815 (relating to distributions to shareholders) is amended by adding at the end thereof the following new subsection: " (g) CERTAIN DISTRIBUTIONS RELATED TO FORMER SUBSIDIARIES.—

If subsection (f)(5) applied to the distribution by a life insurance company of the stock of a corporation which was a controlled corporation— "(1) any distribution by such corporation to its shareholders (after the date of the distribution of its stock by the life insurance company), and "(^2) any disposition of the stock of such corporation by the distributee corporation, shall, for purposes of this section, be treated as a distribution to its shareholders by such life insurance company, until the amounts so treated equal the amount of the distribution of such stock which by reason of subsection (f)(5) was not included as a distribution for purposes of this section." (c) CARRYOVER or LOSSES.—

7o^stlt^*48 ^^^'' 26 USC 841-843.

{^^ ^^ GENERAL.—Part IV of subchapter L of chapter 1 (relating to provisions of general application to insurance companies) is amended by adding at the end thereof the following new section: "SEC. 844. SPECIAL LOSS CARRYOVER RULES. " (a) GENERAL RULE. — I f an insurance company—

73 Stat. 127. 76 Stat. 995. Ante, p. 619. 68A Stat. 264.

"(1) is subject to the tax imposed by part I, II, or III of this subchapter for the taxable year, and "(2) was subject to the tax imposed by a different part of this subchapter for a prior taxable year beginning after December 31, 1962, ^J^QJ^ ^uy operations loss carryover under section 812, unused loss carryovcT under section 825, or net operating loss carryover under section 172, as the case maj be, arising in such prior taxable year shall be included in its operations loss deduction under section 812(a), unused loss deduction under section 825(a), or net operating loss deduction under section 832(c) (10), as the case may be. " (b) LIMITATION.—The amount included under section 812(a), 825(a), or 832(c) (10), as the case may be, by reason of the application of subsection (a) shall not exceed the amount that would have constituted the loss carryover under such section if for all relevant taxable years such company had been subject to the tax imposed by the part referred to in subsection (a)(1) rather than the part referred

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Page:United States Statutes at Large Volume 83.djvu/745

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

to in subsection (a)(2). For purposes of applying the preceding sentence— " (1) in the case of a mutual insurance company which becomes a stock insurance company, an amount equal to 25 percent of the deduction under section 832(c) (11) (relating to dividends to policyholders) shall not be allowed, and "(2) section 812(b)(1)(A) (iii) (relating to additional years to which losses may be carried by new life insurance companies) shall not apply. "(c) EEGULATIONS.—The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this section."

717

jeus^csa^' 73 Stat. 127.

(2) CLERICAL AND CONFORMING AMENDMENTS.—

(A) The table of sections for part IV of subchapter L of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 844. Special loss carryover rules."

(B) Sections 809(e)(5) and 823(b)(1) are each amended by striking out "The" and inserting in lieu thereof "Except as provided by section 844, the". (C) Section 825(g)(2) is amended by striking out "to or from" and inserting in lieu thereof "except as provided by section 844, to or from". (D) Section 825(g)(3) is amended by striking out "to any" and inserting in lieu thereof "except as provided by section 844, to any". (d) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1957. The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 1968. The amendments made by subsection (c) shall apply with respect to losses incurred in taxable years beginning after December 31, 1962, but shall not affect any tax liability for any taxable year beginning before January 1, 1967. SEC. 908. CERTAIN UNIT INVESTMENT TRUSTS. (a) NOT To_BE TREATED AS SEPARATE TAXPAYER.—Section 851 (re- esA Stat. 268. lating to definition of regulated investment company) is amended by adding at the end thereof the following new subsection: "(f) CERTAIN U N I T INVESTMENT TRUSTS.—For purposes of this title— "(1) A unit investment trust (as defined in the Investment Companv Act of 1940)— _ 54 sta^. nig.^^ " (A) which is registered under such Act and issues periodic payment plan certificates (as defined in such Act) in one or more series, " (B) substantially all of the assets of which, as to all such series, consist of (i) securities issued by a single management company (as defined in such Act) and securities acquired pursuant to subparagraph (C), or (ii) securities issued by a single other corporation, and " (C) which has no power to invest in any other securities except securities issued by a single other management company, when permitted by such Act or the rules and regulations of the Securities and Exchange Commission, shall not be treated as a person. "(2) I n the case of a unit investment trust described in paragraph (1)— " (A) each holder of an interest in such trust shall, to the extent of such interest, be treated as owning a proportionate share of the assets of such trust;

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Page:United States Statutes at Large Volume 83.djvu/746

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PUBLIC LAW_91-172-:DEC. 30, 1969

[83 STAT.

" (B) the basis of the assets of such trust which are treated under subparagraph (A) as being owned by a holder of an interest in such trust shall be the same as the basis of his interest in such trust; and " (C) in determining the period for which the holder of an interest in such trust has held the assets of the trust which are treated under subparagraph (A) as being owned by him, there shall be included the period for which such holder has held his interest in such trust. This subsection shall not apply in the case of a unit investment trust which is a segregated asset account under the insurance laws or regulations of a State." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years of unit investment trusts ending after December ol, 15)8, and to taxable years of holders of interests ni such trusts ending with or within such taxable years of such trusts. The enactment of this section shall not be construed to result in the realization of gain or loss by any unit investment trust or by any holder of an interest in a unit investment trust. SEC. 909. FOREIGN CORPORATIONS NOT AVAILED OF TO REDUCE TAXES. (a)

26 USC 954°^'

EXCLUSION FROM FOREICXX BASE COMPANY INCOME.—Section

954(b)(4) (relating to exception for foreign corporations not availed of to reduce taxes) is amended to read as follows: "(4)

68A Stat. 302; 26 USC 10311038.

EXCEPTION FOR FOI{EIGN CORPOIJATIONS NOT AVAILED OF TO

REDUCE TAXES.—For purposes of subsection (a), foreign base company income does not include any item of income receiA'ed by a controlled foreign corporation if it is established to the satisfaction of the Secretary or his delegate that neither— " (A) the creation or organization of such controlled foreign corporation under the laws of the foreign country in which it is incorporated (or, in the case of a controlled foreign corporation which is an acquired corporation, the acquisition of such corporation created or organized under the laws of the foreign country in which it is incorporated), nor " (B) the effecting of the transaction giving rise to such income through the controlled foreign corporation, has as one of its significant purposes a substantial reduction of income, war profits, or excess profits or similar taxes." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years ending after October 9,19(59. SEC. 910. SALES OF CERTAIN LOW-INCOME HOUSING PROJECTS. (a) NoNRECO(}NITION OF (xAIN IN CASE OF APPROVED DISPOSITIONS.— Part III of Subchapter O of chapter 1 (relating to common nontax'ible exchanges) is amended by adding at the end thereof the following new section: "SEC. 1039. CERTAIN SALES OF LOW-INCOME HOUSING PROJECTS. " (a) NoNRECO(JNrnoN OF GAIN.—If^— "(1) a qualified housing project is sold or disposed of by the taxpayer in an approved disposition, and "(2) within the reinvestment period the taxpayer constructs, reconstructs, or accjuires another qualified housing project, then, at the election of the taxpayer, gain from such approved disposition shall be recognized only to the extent that the net amount realized on such approved disposition exceeds the cost of such other qualified housing project. An election under this subsection shall be made at such time and in such manner as the Secretary or his delegate prescribes by regulations.

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Page:United States Statutes at Large Volume 83.djvu/747

 83 STAT.]

PUBLIC LAW 9 1 - 1 7 2 - D E C. 30, 1969

719

" (b) DEFINITIONS.—For purposes of this section— " ( ]) QUALIFIED HOUSING PROJECT.—The term 'qualified housing project' means a project to provide rental or cooperative housing for lower income families— " (A) with respect to which a mortgage is insured under section 221(d)(3) or 236 of the National Housing Act, and ^s Stat. iso; " (B) with respect to which the owner is, under such sec- 12 USC 1715^, tions or regulations issued thereunder— i7isz-i. " (i) limited as to the rate of return on his investment in the project, and "(ii) limited as to rentals or occupancy charges for units in the project. "(2) APPROVED DISPOSITION.—The term 'approved disposition' means a sale or other disposition of a qualified housing project to the tenants or occupants of units in such project, or to a cooperative or other nonprofit organization formed solely for the benefit of such tenants or occupants, which sale or disposition is approved by the Secretary of Housing and Urban Development under section 221(d)(3) or 236 of the National Housing Act or regulations issued under such sections. "(3) REINVESTMENT PERIOD.—The reinvestment period, with respect to an approved disposition of a qualified housing project, is the period beginning one year before the date of such approved disposition and ending— " (A) one year after the close of the first taxable year in which any part of the gain from such approved disposition is realized, or " (B) subject to such terms and conditions as may be specified by the Secretary or his delegate, at the close of such later date as the Secretary or his delegate may designate on application by the taxpayer. Such application shall be made at such time and in such manner as the Secretary or his delegate prescribes by regulations. •'(4) N E T AMOUNT REALIZED.—The net amount realized on an

approved disposition of a qualified housing project is the amount realized reduced by— " (A) the expenses paid or incurred which are directly connected with such approved disposition, and " (B) the amount of taxes (other than income taxes) paid or incurred which are attributable to such approved disposition. "(c) SPECIAL RULES.—For purposes of applying subsection (a)(2) with respect to an approved disposition— "(1) no property acquired by the taxpayer before the date of the approved disposition shall be taken into account unless such property is held by the taxpayer on such date, and "(2) no property acquired by the taxpayer shall be taken into account unless, except as provided in subsection (d), the unadjusted basis of such property is its cost within the meaning of section 1012. " (d) BASIS OF OTHER QUALIFIED HOUSING PROJECT.—If the tax-

payer makes an election under subsection (a) with respect to an approved disposition, the basis of the qualified housing project described in subsection (a)(2) shall be its cost reduced by an amount equal to the amount of gain not recognized by reason of the application of subsection (a).

68A Stat. 296. ^^ " ^ ^ ^°^^

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Page:United States Statutes at Large Volume 83.djvu/748

 720

PUBLIC LAW 91-172-DEC. 30, 1969 "(e)

26^80^62^2°

[83 STAT.

ASSESSMENT OF DEFICIENCIES.— "(1) DEFICIENCY ATTRIBUTABLE TO GAIN.—If the taxpayer has

made an election under subsection (a) with respect to an approved disposition— " (A) the statutory period for the assessment of any deficiency, for any taxable year in which any part of the gain on such approved disposition is realized, attributable to the gain on such approved disposition shall not expire prior to the expiration of 3 years from the date the Secretary or his delegate is notified by the taxpayer (in such manner as the Secretary or his delegate may by regulations prescribe) of the construction, reconstruction, or acquisition of another qualified housing project or of the failure to construct, reconstruct, or acquire another qualified housing project, and " (B) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of sec^^^^ 6212(c) or the provision of any other law or rule of law which would otherwise prevent such assessment. "(2) T I M E FOR ASSESSMENT OF OTHER DEFICIENCIES ATTRIBUTABLE TO ELECTION.—If a taxpayer has made an election under

Ante, p. 525.

Ante,

p. 652.

Ante,

p. 718.

subsection (a) with respect to an approved disposition and another qualified housing project is constructed, reconstructed, or acquired before the beginning of the last taxable year in which any part of the gain upon such approved disposition is realized, any deficiency, to the extent resulting from such election, for any taxable year ending before such last taxable year may be assessed (notwithstanding the provisions of section 6212(c) or 6501 or the provisions of any other law or rule of law which would otherwise prevent such assessment) at any time before the expiration of the period within which a deficiency for such last taxable year may be assessed." (b) AMENDMENTS TO SECTION 1250.— (1) Section 1250(d) (relating to exceptions and limitations) is amended by adding at the end thereof the following newparagraph: "(8) DISPOSITION OF QUALIFIED LOW-INCOME HOUSING.—If section 1250 property is disposed of and gain (determined without regard to this section) is not recognized in whole or in part under section 1039, then— " (A) RECOGNITION LIMIT.—The amount of gain recognized by the transferor under subsection (a) shall not exceed the greater of— " (i) the amount of gain recognized on the disposition (determined without regard to this section), or " (ii) the amount determined under subparagraph (B). "(B)

ADJUSTMENT WHERE INSUFFICIENT SECTION 1250 PROP-

ERTY IS ACQUIRED.—With respect to any transaction, the

amount determined under this subparagraph shall be the excess of— " (i) the amount of gain which would (but for this paragraph) be taken into account under subsection (a), over "(ii) the cost of the section 1250 property acquired in the transaction. " (C) BASIS OF PROPERTY ACQUIRED.—The basis of property acquired by the taxpayer, determined under section 1039(d), shall be allocated—

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Page:United States Statutes at Large Volume 83.djvu/749

 83 STAT. ]

PUBLIC L M _ 9 W 7 ^ - D E a 30, 1969

" (i) first to the section 1250 property described in subparagraph (E)(i), in the amount determined under such subparagraph, reduced by the amount of gain not recognized attributable to the section 1250 property dispose:^ of, "(ii) then to any property (other than section 1250 property) to which section 1039 applies, in the amount of its coit, reduced by the amount of gain not recognized except to the extent taken into account under clause (i), and "(iii) then to the section 1250 property described in subparagraph (E) (ii). in the amount determined thereunder, reduced by the amount of gain not recognized except to the extent taken into account under clauses (i) and (ii).

721

Ante, p. 7\8.

" (D) ADDITIONAL DEPBECIATION WITH RESPECT TO PROPERTY DISPOSED OF.—The additional depreciation with respect

to any property acquired shall include the additional depreciation with respect to the corresponding section 1250 property disposed 01, reduced by the amount of gain recognized attributable to such property. " (E) PROPERTY CONSISTING OF MORE THAN ONE ELEMENT.—

There shall be treated as a separate element of section 1250 property— "(i) that portion of the section 1250 property acquired the cost of which does not exceed the net amount realized (as defined in section 1039(b)) attributable to the section 1250 property disposed of, reduced by the amount of gain recognized (if any) attributable to such property, and "(ii) that portion of the section 1250 property acquired the cost of which exceeds the net amount realized (as defined in section 1039(b)) attributable to the section 1250 property disposed of. " (F) ALLOCATION RULES.—For purposes of this paragraph— "(i) the amount of gain recognized attributable to the section 1250 property disposed of shall be the net amount realized with respect to such property, reduced by the greater of the adjusted basis of the section 1250 property disposed of or the cost of the section 1250 property acquired, but shall not exceed the gain recognized in the transaction, and "(ii) if any section 1250 property is treated as consisting of more than one element by reason of the application of subparagraph (E) to a prior transaction, then the amount of gain recognized, the net amount realized, and the additional depreciation, with respect to each such element shall be allocated in accordance with regulations prescribed by the Secretary or his delegate." (2) Section 1250(e) (relating to holding period) is amended by adding at the end thereof the following new paragraph: "(4) QUALIFIED LOW-INCOME HOUSING.—The holding period of any section 1250 property acquired which is described in subsection (d)(8)(E)(i) shall include the holding period of the corresponding element of section 1250 property disposed of."

Ante, p. e52.

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Ante, p. 652.

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

(3) Section 1250 (relating to gain from dispositions of certain depreciable realty) is amended by redesignating subsections (g) and (h) as subsections (h) and (i) and by inserting after subsection (f) the following new subsection: " (g) SPECIAL RULES FOR QUALIFIED LOW-INCOME HOUSING.— "(1) AMOUNT TREATED AS ORDINARY INCOME.—If, in the

Ante, p. 7 2 1.

68A Stat. 325.

case of a disposition of section 1250 property, the property is treated as consisting of more than one element by reason of the application of subsection (d)(8)(E), and gain is recognized in whole or in part, then the amount taken into account under subsection (a) as gain from the sale or exchange of property which is neither r^ capital asset nor property described in section 1231 shall be the sum of the amounts determined under paragraph (2). "(2)

Ante, p. 718.

ORDINARY INCOME ATTRIBUTABLE TO AN ELEMENT.—For

purposes of paragraph (1), the amount taken into account for any element shall be the amount determined by multiplying— " (A) the amount which bears the same ratio to the lower of the additional depreciation or the gain recognized for the section 1250 property disposed of as the additional depreciation for such element bears to the sum of the additional depreciation for all elements disposed of, by " (B) the applicable percentage for such element. For purposes of this paragraph, determinations with respect to any element shall be made as if it were a separate property." (c) CLERICAL AMENDMENT.—The table of sections for part III of subchapter O of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 1039. Certain sales of low-income housing projects." (d) EFFECTIVE DATE.—The amendments made by this section shall apply to approved dispositions of qualified housing projects (within the meaning of section 1039 of the Internal Revenue Code of 1954, as added by subsection (a)) after October 9, 1969. SEC. 911. PER-UNIT RETAIN ALLOCATIONS. (a) PAYMENTS

9° f^^r i^ao' 26 USC 1382.

80 Stat. 1582.

Ts^st^t^'eg'g''^'

OF

MONEY

AND OTHER

PROPERTY.—Section

1382(b)(3) (relating to patronage dividends and per-unit retain allocations) is amended to read as follows: "(3) as per-unit retain allocations (as defined in section 1388(f)), to the extent paid in money, qualified per-unit retain certificates (as defined in section 1388(h)), or other property (except nonqualified per-unit retain certificates, as defined in section 1388 (i)) with respect to marketing occurring during such taxable year; or". (b) CONFORMING AMENDMENT.—Section 1388(f)

(relating to per-

unit retain allocations) is amended by striking out "other than by payment in money or other property (except per-unit retain certificates)". (c) EFFECTIVE DATE.—The amendments made by this section shall apply to per-unit retain allocations made after October 9, 1969. SEC. 912. FOSTER CHILDREN. ^^} ^ ^ GENERAL.—Section 162(b)(2) (relating to rules relating to definition of dependent) is amended by inserting immediately before "shall be treated" the following: ", or a foster child of an individual (if such child satisfies the requirements of subsection (a)(9) with respect to such individual),". (b) EFFECTIVE DATE.—The amendment made by subsection (a) of this section shall apply to taxable years beginning after December 31, 1969.

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PUBLIC_LAW 9lil71-DEC.SO^.1169

723

SEC. 913. COOPERATIVE HOUSING CORPORATIONS. (a) STOCK HELD BY GOVERNMENTAL UNITS.—Section 216(b) (re-

lating to definitions) is amended by adding at the end thereof the following new paragraph: "(4) STOCK OWNED BY GOVERNMENTAL UNITS.—FoT purposes of this subsection, in determining whether a corporation is a cooperative housing corporation, stock owned and apartments leased by the United States or any of its possessions, a State or any political subdivision thereof, or any agency or instrumentality of the foregoing empowered to acquire shares in a cooperative housing corporation for the purpose of providing housing facilities, shall not be taken into account." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1969. SEC 914. PERSONAL HOLDING COMPANY DIVIDENDS. (a) DIVIDENDS PAID AFTER CLOSE OF YEAR.—Section 563(b) (relating to personal holding company tax) is amended by striking out "10 percent" in paragraph (2) and inserting in lieu thereof "20 percent". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1969. SEC. 915. REPLACEMENT OF PROPERTY INVOLUNTARILY CONVERTED WITHIN A 2-YEAR PERIOD. (a) IN GENERAL.—Section 1033(a)(3)(B) (relating to the period within which property must be replaced) is amended by striking out "one year" in clause (i) and inserting in lieu thereof "2 years". (b) EFFECTIVE DATE.—The amendment made by this section shall apply only if the disposition of the converted property (within the meaning of section 1033(a)(2) of the Internal Revenue Code of 1954) occurs after the date of the enactment of this Act. SEC. 916. CHANGE IN REPORTING INCOME ON INSTALLMENT BASIS. (a) IN GENERAL.—Section 453(c) (relating to change from accrual to installment basis of reporting) is amended by adding at the end thereof the following new paragraphs: "(4) REVOCATION OF ELECTION.—An election under paragraph (1) to report taxable income on the installment basis may be revoked by filing a notice of revocation, in such manner as the Secretary or his delegate prescribes by regulations, at any time before the expiration of 3 years following the date of the filing of the tax return for the year of change. If such notice of revocation is timely filed— " (A) the provisions of paragraph (1) and subsection (a) shall not apply to the year of change or for any subsequent year; " (B) the statutory period for the assessment of any deficiency for any taxable year ending before the filing of such notice, which is attributable to the revocation of the election to use the installment basis, shall not expire before the expiration of 2 years from the date of the filing of such notice, and such deficiency may be assessed before the expiration of such 2-year period notwithstanding the provisions of any law or rule of law which would otherwise prevent such assessment; and " (C) if refund or credit of any overpayment, resulting from the revocation of the election to use the installment basis,

26 USC r*2iV"

esA Stat. 199.

^SA Stat. 303.

^SA Stat. 154.

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Page:United States Statutes at Large Volume 83.djvu/752

 724

26ljsc'7m^' 7122.

26 USC 453.

26 USC r333°^

26 USC 351. 26 USC 1223.

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

for any taxable year ending before the date of the filing of the notice of revocation is prevented on the date of such filing, or within one year from such date, by the operation of any law or rule of law (other than section 7121 or 7122), refund or credit of such overpayment may nevertheless be made or allowed if claim therefor is filed within one j^ear from such date. No interest shall be allowed on the refund or credit of such overpayment for any period prior to the date of the filing of the notice of revocation. "(5) ELECTION AFTER REVOCATION.—If the taxpayer revokes under paragraph (4) an election under paragraph (1) to report taxable income on the installment basis, no election under paragraph (1) may be made, except with the consent of the Secretary or his delegate, for any subsequent taxable year before the fifth taxable year following the year of change with respect to which such revocation is made." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to an election made for any year of change (as defined in section 453(c)(1) of the Internal Revenue Code of 1954) ending on or after the date of the enactment of this Act, and shall also apply to any such year of change which ended before such date if the 3-year statutory period for assessment of any deficiency for such year has not expired on the date of the enactment of this Act. SEC. 917. RECOGNITION OF GAIN IN CERTAIN LIQUIDATIONS. ^^^' purposes of applying section 333(e) and (f) of the Internal Revenue Code of 1954 to a distribution in liquidation of a corporation during 1970, stock (including stock received in respect of such stock by reason of a stock dividend or stock split) or securities received by a qualified electing shareholder in exchange for his stock in the liquidating corporation shall be considered as having been acquired by the liquidating corporation before January 1, 1954, if— (1) such stock or securities were acquired by the liquidating corporation after December 31, 1953, from such qualified electing shareholder (or from a person from whom such qualified electing shareholder acquired such stock in the liquidating corporation by gift, bequest, or inheritance) solely in exchange for its stock in a transaction to which section 351 of such Code (or the corresponding provisions of prior law) applied, and (2) the holding period of such stock or securities in the hands of the liquidating corporation, determined under section 1223(2) of such Code, includes any period before January 1, 1954. Subtitle B—Miscellaneous Excise Tax Provisions SEC. 931. CONCRETE MIXERS.

79 Stat. 157.

(a) EXEMPTION FROM T A X ON MoTOR VEHICLES.

SectioU 4 0 6 3 (a)

(relating to exemption of specified articles from the tax on motor vehicles) is amended by adding at the end thereof the following new paragraph: 26 USC 4061. u^5^ CONCRETE MIXERS.—The tax imposed under section 4061 shall not apply in the case of— " (A) any article designed (i) to be placed or mounted on an automobile truck chassis or truck trailer or semitrailer chassis and (ii) to be used to process or prepare concrete, and

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Page:United States Statutes at Large Volume 83.djvu/753

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

" (B) parts or accessories designed primarily for use on or in connection with an article described in subparagraph (A). " (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to articles sold after December 31, 1969. SEC. 932. CONSTRUCTIVE SALE PRICE. (a) DETERMINATION OF FAIR MARKET PRICE.—Section 4216(b) (relating to constructive sale price) is amended by adding at the end thereof the following new paragraphs: "(3)

72 Stat. 1279. 26 USC 421 e.

FAIR MARKET PRICE I N CASE OF CERTAIN ARTICLES.—Except

as provided in paragraph (4), for purposes of paragraph (1)(C), if— " (A) the manufacturer, producer, or importer of an article regularly sells such article to a distributor which is a member of the same affiliated group of corporations (as defined in section 1504(a)) as the manufacturer, producer, or importer, and " (B) such distributor regularly sells such article to one or more independent retailers, but does not regularly sell to wholesale distributors, the fair market price of such article shall be 90 percent of the lowest price for which such distributor regularly sells such article in arm's-length transactions to such independent retailers. The price determined under this paragraph shall not be adjusted for any exclusion (except for the tax imposed on such article) or readjustments under subsections (a) and (f) and under section 6416(b)(1). If both this paragraph and paragraph (4) apply with respect to an article, the fair market price for such article shall be the lower of the fair market price determined under this paragraph or paragraph (4). " (4)

725

FAIR MARKET PRICE I N CASE OF CERTAIN OTHER ARTICLES.—

For purposes of paragraph (1)(C), if— " (A) the manufacturer, producer, or importer of an article regularly sells (except for tax-free sales) only to a distributor which is a member of the same affiliated group of corporations (as defined in section 1504(a)) as the manufacturer, producer, or importer, " (B) the distributor regularly sells (except for tax-free sales) such article only to retailers, and " (C) the normal method of sales for such articles within the industry by manufacturers, producers, or importers is to sell such articles in arm's-length transactions to distributors, the fair market price for such article shall be the price at which such article is sold to retailers by the distributor, reduced by a percentage of such price equal to the percentage which (i) the difference between the price for which comparable articles are sold to wholesale distributors, in the ordinary course of trade, by manufacturers or producers thereof, and the price at which such wholesale distributors in arm's-length transactions sell such comparable articles to retailers, is of (ii) the price at which such wholesale distributors in arm's-length transactions sell such comparable articles to retailers. The price determined under this paragraph shall not be adjusted for any exclusion (except for the tax imposed on such article) or readjustment under subsections (a) and (f) and under section 6416(b)(1). " (b) EFFECTIVE DATE.—The amendment made by subs'ection (a) shall apply with respect to articles sold after December 31, 1969.

31-100 O - 70 - 48

SSA Stat. 359.

asAstat.joi;

72 Stat. 130(5.

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PUBLIC LAW 91.172-DEC. 30, 1969

[83 STAT.

Subtitle C—Miscellaneous Administrative Provisions SEC. 941. FILING REQUIREMENTS. 26 USCTeou^ (^) I ^ GENERAL.—Section 6012(a) (relating to persons required to make returns of income) is amended by striking out paragraph (1) and inserting in lieu thereof the following: " (1)(A) Every individual having for the taxable year a gross income of $600 or more, except that a return shall not be required of an individual (other than an individual referred to in section 142(b))— "(i) who is not married (determined by applying section Ante. p. 677. 143(a)) and for the taxable year has a gross income of less than $1,700, or "(ii) who is entitled to make a joint return under section 6013 and whose gross income, when combined with the gross income of his spouse, is, for the taxable year, less than $2,300 but only if such individual and his spouse, at the close of the taxable year, had the same household as their home. Clause (ii) shall not apply if for the taxable year such spouse makes a separate return or any other taxpayer is entitled to an Ante, pp. 675, exemption for such spouse under section 151(e). 676. " (B) The $1,700 amount specified in subparagraph (A)(i) shall be increased to $2,300 in the case of an individual entitled to an additional personal exemption under section 151(c)(1), and the $2,300 amount specified in subparagraph (A) (ii) shall be increased by $600 for each additional personal exemption to which the individual or his spouse is entitled under section 151(c);". (b) TECHNICAL AMENDMENT.—Subsections (b) and (c)(2) of sec68A Stat. 42. tion 151 (relating to allowance of deductions for personal exemptions) are amended by striking out "if a separate return is made by the taxpayer" and inserting in lieu thereof "if a joint return is not made by the taxpayer and his spouse". (c) EFFECTIVE DATE.—The amendments made by subsections (a) and (b) shall apply to taxable years beginning after December 31, 1969. (d) TAXABLE YEARS AFTER 1972.—Effective with respect to taxable Supra. years beginning after December 31, 1972, section 6012(a)(1) is amended— (1) by striking out "$600" each place it appears therein and inserting in lieu thereof "$750"; (2) by striking out "$1,700" each place it appears and inserting in lieu thereof "$1,750"; and (3) by striking out "$2,300" each place it appears and inserting in lieu thereof "$2,500". SEC. 942. COMPUTATION OF TAX BY INTERNAL REVENUE SERVICE. 68A Stat. 736. (a) IN GENERAL.—The first sentence of section 6014(b) (relating to regulations; tax not computed by taxpayer) is amended to read as follows: "The Secretary or his delegate shall prescribe regulations for carrying out this section, and such regulations may provide for the application of the rules of this section— "(1) to cases where the gross income includes items other than those enumerated by subsection (a), "(2) to cases where the gross income from sources other than wages on which the tax has been withheld at the source is more than $100,

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PUBLIC LAW 91-172-DEC. 30, 1969

727

"(3) to cases where the gross income is $10,000 or more, "(4) to cases where the taxpayer is entitled to the credit provided by section 37 (relating to retirement income credit), or 26 USC 37. "(5) to cases where the taxpayer does not elect the standard deduction." (b) ErrECTivE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1969. SEC. 943. FAILURE TO MAKE TIMELY PAYMENT OR DEPOSIT OF TAX. (a) FAILURE To P A Y TAX.—Section 6651 (relating to failure to esAstat. 821. file tax return) is amended to read as follows: "SEC. 6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX. " (a) ADDITION TO TJIE T A X. — I n case of failure— "(1) to file any return required under authority of subchapter A of chapter 61 (other than part III thereof), subchapter A of 26 USC eooi, chapter 51 (relating to distilled spirits, Avines, and beer), or of ^°°^' ^^°^' ^^°^subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes), or of subchapter A of chapter 53 (relating to machine guns and certain other firearms), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceedhig 25 percent in the aggregate; "(2) fo pay the amounf shown as tax on any return specified in paragraph (1) on or before the date prescribed for payment of such tax (determined with regard to any extension of tin:e for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return 0.5 percent of the amount of such tax if the failure is for not more tlian 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate; or "(3) to pay any amount in respect of any tax required to be shown on a return specified in paragraph (1) which is not so shown (including an assessment made pursuant to section 6213(b)) within 10 days of the date of the notice and demand 26 USC 6213. therefor, unless it is shown that such failure is due to reasonable cause and not due to Avillful neglect, there shall be added to the amount of tax stated in such notice and demand 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. "(b)

PENALTY IMPOSED ON X E T A:MOUNT D U E. — For purposes of—

"(1) subsection (a)(1), the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on the return, "(2) subsection (a)(2), the amount of tax shown on the return shall, for purposes of computing the addition for any month, be

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Page:United States Statutes at Large Volume 83.djvu/756

 728

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed on the return, and "(3) subsection (a)(3), the amount of tax stated in the notice and demand shall, for the purpose of computing the addition for any month, be reduced by the amount of any part of the tax which is paid before the beginning of such month. "(c)

LIMITATIONS AND SPECIAL RULE. — "(1) ADDITIONS UNDER MORE THAN ONE PARAGRAPH.—

" (A) With respect to any return, the amount of the addition under paragraph (1) of subsection (a) shall be reduced by the amount of the addition under paragraph (2) of subsection (a) for any month to which an addition to tax applies under both paragraphs (1) and (2). " (B) With respect to any return, the maximum amount of the addition permitted under paragraph (3) of subsection (a) shall be reduced by the amount of the addition under paragraph (1) of subsection (a) which is attributable to the tax for which the notice and demand is made and which is not paid within 10 days of notice and demand. "(2)

26 USC 6015. 82 Stat. 260. 68Astat. 826.

BE SHOWN.—If the amount required to be shown as tax on a return is less than the amount shown as tax on such return, subsections (a)(2) and (b)(2) shall be applied by substituting such lower amount. " (d) EXCEPTION FOR DECLARATIONS OF ESTIMATED TAX.—This section snail not apply to any failure to file a declaration of estimated (.g^x required by section 6015 or to pay any estimated tax required to be paid by section 6153 or 6154." (b) FAILURE To MAKE DEPOSIT OF TAX.—Section 6656(a) (relating to penalty for failure to make deposit of taxes) is amended by striking out the first sentence and inserting in lieu thereof the following: " I n case of failure by any person required by this title or by regulation of the Secretary or his delegate under this title to deposit on the date prescribed therefor any amount of tax imposed by this title in such government depositary as is authorized under section 6302(c) to receive such deposit, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be imposed upon such person a penalty of 5 percent of the amount of the underpayment." (c)

72 Stat. 1044.

79 Stat. 386. 72 Stat. 1410.

AMOUNT OF TAX SHOWN MORE THAN AMOUNT REQUIRED TO

CONFORMING AMENDMENTS.—

(1) Section 3121(k)(1)(F)(i) Trelatingto definitions of waiver of exemption by religious, charitable, and certain other organizations) is amended by inserting "or pay tax" after "tax return". (2) Section 3121(k)(1)(G)(i) (relating to definitions of waiver of exemption by religious, charitable, and certain other organizations) is amended by inserting "or pay tax " after "tax return". (3) Section 3121(k)(1)(H)(i) (relating to definitions of waivers of exemption by religious, charitable, and certain other organizations) is amended by inserting "or pay tax" after "tax return". ^4^ Section 5684(d)(2) (relating to cross references for penalties relating to the payment and collection of liquor taxes) is amended by inserting "or pay tax" after "tax return".

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 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

729

(5) The table of sections for subchapter A of chapter 68 is amended by striking out: "Sec. 6651. Failure to file tax return."

and inserting in lieu thereof: "Sec. 6651. Failure to file tax return or pay tax."

(6) Section 6653(d) (relating to penalty for failure to pay tax if fraud assessed) is amended by adding "or pay tax " after "such return", (d) EFFECTIVE DATES.—The amendments made by subsections (a) and (c) shall apply with respect to returns the date prescribed by law (without regard to any extension of time) for filing of which is after December 81, 1969, and with respect to notices and demands for payment of tax made after December 31, 1969. The amendment made by subsection (b) shall apply with respect to deposits the time for making of which is after December 31, 1969. SEC. 944. DECLARATIONS OF ESTIMATED TAX BY FARMERS. (a) RETURN AS DECLARATION OR XVMENDMENT.—Section 6015(f) (relating to return considered as declaration or amendment) is amended by striking out "February 15" and inserting in lieu thereof "March 1". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to taxable years beginning after December 31, 1968. SEC. 945. PORTION OF SALARY, WAGES, OR OTHER INCOME EXEMPT FROM LEVY. (a) IN GENERAL.—Section 6334(a) (relating to enumeration of property exempt from levy) is amended by adding at the end thereof the following new paragraph:

68A Stat. 822. 26 USC 6653.

esA Stat. 738.

68A Stat. 784;

" (8) SALARY, WAGES, OR OTHER INCOME.—If the taxpayer is

required by judgment of a court of competent jurisdiction, entered prior to the date of levy, to contribute to the support of his minor children, so much of his salary, wages, or other income as is necessary to comply with such judgment." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to levies made 30 days or more after the date of the enactment of this Act. SEC. 946. INTERESTS AND PENALTIES IN CASE OF CERTAIN TAXABLE YEARS. (a) lNTEin:sT ox T'NDERPAY^IENT.—Notwithstanding section 6601 of the Internal Revenue Code of 1954, in the case of any taxable year ^6 USC eeoi. ending before the date of the enactment of this Act, no interest on any underpayment of tax, to the extent such underpayment is attributable to the amendments made by this Act, shall be assessed or collected for any period before the 90th day after such date. (b) DECLARATIONS OF ESTIMATED TAX.—In the case of a taxable year beginning before the date of the enactment of this Act, if any taxpayer is required to make a declaration or amended declaration of estimated tax, or to pay any amount or additional amount of estimated tax, by reason of the amendments made by this Act, such amount or additional amount shall be paid ratably on or before each of the remaining installment dates for the taxable year beginning with the first installment date on or after the 30th day after such date of enactment. With respect to any declaration or payment of estimated tax before such first installment date, sections 6015, 6154, 6654, and 82 Stat. leo.

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Page:United States Statutes at Large Volume 83.djvu/758

 730 26 USC 6655.

68A Stat. 879.

use prec.

78^st^at^*434?^^'

PUBLIC LAW 91-172-DEC. 30, 1969

6655 of the Internal Revenue Code of 1954 shall be applied without regard to the amendments made by this Act. For purposes of this subsection, the term "installment date" means any date on which, under section 6153 or 6154 of such Code (whichever is applicable), an installment payment of estimated tax is required to be made by the taxpayer. Subtitle D—United States Tax Court SEC. 951. STATUS OF TAX COURT. Section 7441 (relating to the status of the Tax Court) is amended to read as follows: "SEC. 7441. STATUS. "There is hereby established, under article I of the Constitution of ^^3 United States, a court of record to be known as the United States Tax Court. The members of the Tax Court shall be the chief judge and the judges of the Tax Court." SEC. 952. APPOINTMENT; TERM OF OFFICE. (a) Subsection (b) of section 7443 (relating to appointment of Tax Court judges) is amended by adding at the end thereof the following new sentence: "No individual shall be a judge of the Tax Court unless he is appointed to that office before attaining the age of 65." (b) Subsection (e) of such section (relating to terms of office of Tax Court judges) is amended to read as follows: "(e) TERM OF OrncE.—The term of office of any judge of the Tax Court shall expire 15 years after he takes office." SEC. 953. SALARY. Section 7443(c) (relating to salaries of Tax Court judges) is amended to read as follows: "(c)

62 Stat. 897; ''I'll'J'^^. 80 Stat. 476. 68A Stat, 880.

so^ltt^T' ^^^'

SALARY.—

"(1) Each judge shall receive salary at the same rate and in the same installments as judges of the district courts of the United States. " (2) For rate of salary and frequency of installment see section 135, title 28, United States Code, and section 5505, title 5, United States Code." SEC. 954. RETIREMENT. (a) Subsection (b) of section 7447 (relating to time of retirement) is amended to read as follows: "(b)

80 Stat. 5 7 1.

[83 STAT.

RETIREMENT,—

"(1) Any judge shall retire upon attaining the age of 70. "(2) Any judge who has attamed the age of 65 may retire any time after serving as judge for 15 years or more. "(3) Any judge who is not reappointed following the expiration of the term of his office may retire upon the completion of such term, if (A) he has served as a judge of the Tax Court for 15 years or more and (B) not earlier than 9 months preceding the date of the expiration of the term of his office and not later than 6 months preceding such date, he advised the President in writing that he was willing to accept reappointment to the Tax Court. " (4) Any judge who becomes permanently disabled from performing his duties shall retire. Section 8335(a) of title 5 of the United States Code (relating to automatic separation from the service) shall not apply in respect of judges." (") Subsection (d) of such section (relating to retired pay) is amended to read as follows:

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PUBLIC LAW 91-172-DEC. 30, 1969

" (d) RETIRED PAY.—Any individual who— "(1) retires under paragraph (1), (2), or (3) of subsection (b) and elects under subsection (e) to receive retired pay under this subsection shall receive retired pay during any period at a rate which bears the same ratio to the rate of the salary payable to a judge during such period as the number of years he has served as judge bears to 10; except that the rate of such retired pay shall not be more than the rate of such salary for such period; or "(2) retires under paragraph (4) of subsection (b) and elects under subsection (e) to receive retired pay under this subsection shall receive retired pay during any period at a rate— " (A) equal to the rate of the salary payable to a judge during such period if before he retired he had served as a judge not less than 10 years; or " (B) one-half of the rate of the salary payable to a judge during such period if before he retired he had served as a judge less than 10 years. Such retired pay shall begin to accrue on the day following the day on which his salary as judge ceases to accrue, and shall continue to accrue during the remainder of his life. Retired pay under this subsection shall be paid in the same manner as the sahiry of a judge. In computing the rate of the retired pay under paragraph (1) of this subsection for any individual who is entitled thereto, that portion of the aggregate number of years he has served as a judge which is a fractional part of 1 year shall be eliminated if it is less than 6 m(mths, or shall be counted as a full year if it is 6 months or more." (c) Subsection (g) of such section is amended by striking out paragraphs (2), (3), and (4) and inserting in lieu thereof the following: "(2) EFFECT OF ELECTING RETIRED PAY.—In the case of any individual who has filed an election to receive retired pay under subsection (d) — " (A) no annuity or other payment shall be payable to any person under the civil service retirement laws with respect to any service performed by such individual (whether performed before or after such election is filed and whether performed as judge or otherwise); " (B) no deduction for purposes of the Civil Service Retirement and Disability Fund shall be made from retired pay payable to him under subsection (d) or from any other salary, pay, or compensation payable to him, for any period beginning after the day on which such election is filed; and " (C) such individual shall be paid the lump-sum credit computed under section 8331(8) of title 5 of the United States Code upon making application therefor with the Civil Service Commission." (d) Section 7447 (relating to retirement) is amended by adding at the end thereof the following new subsection: "(h)

RETIREMENT FOR DISABILITY.—

"(1) Any judge who becomes permanently disabled from performing his duties shall certify to the President his disability in writing. If the chief judge retires for disability, his retirement shall not take effect until concurred in by the President. If any other judge retires for disability, he shall furnish to the President a certificate of disability signed by the chief judge. "(2) Whenever any judge who becomes permanently disabled from performing his duties does not retire and the President finds

731

68A Stat. 882. 26 USC 7447.

8° ^*^*- sei

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 732

26ljs*cV447°' Repeal,

75 Stat. 796.

80 Stat. 567.

80 Stat. 409.

Post, p. 734.

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

that such judge is unable to discharge efficiently all the duties of his office by reason of permanent mental or physical disability and that the appointment of an additional judge is necessary for the efficient dispatch of business, the President shall declare such judge to be retired." (^) Section 7447 (relating to retirement) is further amended as follows: (1) Paragraph (4) of subsection (a) is repealed. (2) Paragraph (1) of subsection (g) is amended by striking out "Civil Service Retirement Act" and inserting in lieu thereof "civil service retirement laws" and by striking out "such Act applies" and inserting in lieu thereof "such civil service retirement laws apply". SEC. 955. SURVIVORS. (^^^ Section 7448(b) (relating to election of survivor annuities) is amended to read as follows: "(b) ELECTION.—Any judge may by written election filed while he is a judge (except that in the case of an individual who is not reappointed following expiration of his term of office, it may be made at any time before the day after the day on which his successor takes office) bring himself within the purview of this section. I n the case of any judge other than the chief judge the election shall be filed with the chief judge; in the case of the chief judge the election shall be filed as prescribed by the Tax Court." (b) Section 7448 (relating to survivor annuities) is further amended as follows: (1) Subsections (d), (h), and (r) are each amended by striking out "Civil Service Retirement Act" the last place it appears in each such subsection and inserting in lieu thereof in each such place "civil service retirement laws. (2) Subsections (d) and (n) are each amended by striking out "section 3 of the Civil Service Retirement Act (5 U.S.C. 2253)" and inserting in lieu thereof in each such place "section 8332 of title 5 of the United States Code". (3) Subsection (m) is amended by striking out "section 1(c) of the Civil Service Retirement Act (5 U.S.C. 2251(c))" and inserting in lieu thereof "section 2107 of title 5 of the United States Code"

(4) Subsection (r) is amended by striking out "a waiver filed under section 7447(g)(3) " and inserting in lieu thereof "an election filed under section 7447(e)". SEC. 956. POWERS. Section 7456 (relating to powers of the Tax Court) is amended by adding at the end thereof the following new subsection: " (d) INCIDENTAL POWERS.—The Tax Court and each division thereof shall have power to punish by fine or imprisonment, at its discretion, such contempt of its authority, and none other, as— " (1) misbehavior of any person in its presence or so near thereto as to obstruct the administration of justice; "(2) misbehavior of any of its officers in their official transactions; or "(3) disobedience or resistance to its lawful writ, process, order, rule, decree, or command. I t shall have such assistance in the carrying out of its lawful writ, process, order, rule, decree, or command as is available to a court of the United States."

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text:
Page:United States Statutes at Large Volume 83.djvu/761

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

733

SEC. 957. TAX DISPUTES INVOLVING $1,000 OR LESS. 68A Stat. 8 8 4. (a) Part II of subchapter C of chapter 76 (relating to Tax Court 26 USC 7451procedure) is amended by renumbering section 7463 as 7464, and by 7463. inserting after section 7462 the following new section: "SEC. 7463. DISPUTES INVOLVING $1,000 OR LESS. " (a) IN GENERAL.—In the case of any petition filed with the T a x Court for a redetermination of a deficiency where neither the amount of the deficiency placed in dispute, nor the amount of any claimed overpayment, exceeds— "(1) $1,000 for any one taxable year, in the case of the taxes imposed by subtitle A and chapter 12, or "(2) $1,000, in the case of the tax imposed by chapter 11, at the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings in the case shall be conducted under this section. Notwithstanding the provisions of section 7453, such proceedings shall be conducted in accordance with such rules of evidence, practice, and procedure as the Tax Court may prescribe. A decision, together with a brief summary of the reasons therefor, in any such case shall satisfy the requirements of sections 7459(b) and 7460. " (b) FINALITY OF DECISIONS.—A decision entered in any case in which the proceedings are conducted under this section shall not be reviewed in any other court and shall not be treated as a precedent for any other case. "(c) LIMITATION OF JURISDICTION.—In any case in which the proceedings are conducted under this section, notwithstanding the provisions 01 sections 6214(a) and 6512(b), no decision shall be entered redetermining the amount of a deficiency, or determining an overpayment, except with respect to amounts placed in dispute within the limits described in subsection (a) and with respect to amounts conceded by the parties. " (d) DISCONTINUANCE OF PROCEEDINGS.—At any time before a decision entered in a case in which the proceedings are conducted under this section becomes final, the taxpayer or the Secretary or his delegate may request that further proceedings under this section in such case be discontinued. The Tax Court, or the division thereof hearing such case, may, if it finds that (1) there are reasonable grounds for believing that the amount of the deficiency placed in dispute, or the amount of an overpayment, exceeds the applicable jurisdictional amount described in subsection (a), and (2) the amount of such excess is large enough to justify granting such request, discontinue further proceedings in such case under this section. Upon any such discontinuance, proceedings in such case shall be conducted in the same manner as cases to which the provisions of sections 6214(a) and 6512(b) apply. "(e) AMOUNT OF DEFICIENCY I N DISPUTE.—For purposes of this section, the amount of any deficiency placed in dispute includes additions to the tax, additional amounts, and penalties imposed by chapter 68, to the extent that the procedures described in subchapter B of chapter 63 apply." (b) The table of sections for part II of subchapter C of chapter 76 is amended by striking out the last item and inserting in lieu thereof the following: "Sec. 7463. Disputes involving $1,000 or less. "Sec. 7464. Provisions of special application to transferees:"

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text:
Page:United States Statutes at Large Volume 83.djvu/762

 734 68A Stat. 885, 26 USC 7456.

68A Stat. 8 9 1.

68A Stat. 773.

75 Stat. 796.

PUBLIC LAW 91-172-DEC. 30, 1969

SEC. 958. COMMISSIONERS. Section 7456(c) (relating to Tax Court commissioners) is amended to read as follows: "(c) COMMISSIONERS.—The chief judge may from time to time appoint commissioners who shall proceed under such rules and regulations as may be promulgated by the Tax Court. Each commissioner shall receive the same compensation and travel and subsistence allowances provided by law for commissioners of the United States Court of Claims." SEC. 959. NOTICE OF APPEAL. (a) Section 7483 (relating to petition for review) is amended to I'ead as follows: "SEC. 7483. NOTICE OF APPEAL. "Keview of a decision of the Tax Court shall be obtained by filing a notice of appeal with the clerk of the Tax Court within 90 days after the decision of the Tax Court is entered. If a timely notice of appeal is filed by one party, any other party may take an appeal by filing a notice of appeal within 120 days after the decision of the Tax Court is entered." (b) The table of sections for subchapter D of chapter 76 is amended by striking out the item relating to section 7483 and inserting in lieu thereof the following: "Sec. 7483. Notice of appeal." SEC. 960. CONFORMING AMENDMENTS. (a) Section 6214(a) (relating to jurisdiction to determine increased deficiencies, etc.) is amended by striking out "The Tax Court" and inserting in lieu thereof "Except as provided by section 7463, the Tax Court". (b) Section 6512(b)(1) (relating to jurisdiction to determine overpayments) is amended by striking out "If the Tax Court" and inserting in lieu thereof "Except as provided by paragraph (2) and by section 7463, if the Tax Court". (c) Sections 7447(a)(1) and 7448(a)(1) (relating to retirement and survivor annuities) are each amended by striking out "Tax Court of the United States" and inserting in lieu thereof "United States Tax Court". (d) Section 7447(a)(5) (relating to periods of service) is amended by striking out "or as a member of the Board." and inserting in lieu thereof ", as judge of the Tax Court of the United States, or as a member of the Board of Tax Appeals." (e) Section 7448(n) (relating to includible service) is amended by inserting after "Tax Appeals" the following: ", as a judge of the Tax Court of the United States,". (f) Section 7453 (relating to rules of practice, procedure, and evidence) is amended by striking out "The" and inserting in lieu thereof "Except in the case of proceedings conducted under section 7463, the". (g) Section 7471(c) (relating to travel and subsistence allowances of commissioners) is amended to read as follows: "(c)

68A Stat. 889.

[83 STAT.

COMMISSIONERS.^—

"For compensation and travel and subsistence allowances of commissioners of the Tax Court, see section 7456(c)." (h)(1) Section 7481 (relating to date when Tax Court decision becomes final) is amended— (A) by striking out so much of such section as precedes paragraph (2) thereof and inserting in lieu thereof the following:

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Page:Tom Swift and His Airship.djvu/187

 CHAPTER XX

TOM GETS A CLUE

of the cabin of the now stationary airship hurried the three travelers; out into the pelting rain, which was lashed into their faces by the strong wind. Tom was the first to emerge.

"We're on something solid!" he cried, stamping his feet. "A rock, I guess."

"Gracious, I hope we're not on a rock in the midst of a river!" exclaimed Mr. Damon. "Bless my soul, though! The water does seem to be running around my ankles."

"There's enough rain to make water run almost up to our necks," called Mr. Sharp, above the noise of the storm. "Tom, can you make out where we are?"

"Not exactly. Is the ship all right?"

"I can't see very well, but there appears to be a hole in the gas container. A big one, too, or we wouldn't have fallen so quickly."

The plight of the travelers of the air was 177

title: Page:Tom Swift and His Airship.djvu/187


text:
Page:United States Statutes at Large Volume 83.djvu/763

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

" (a) REVIEWABLE DECISIONS.—Except as provided in subsection (b), the decision of the Tax Court shall become final— "(1) TIMELY NOTICE OF APPEAL NOT FILED.—Upon the expiration of the time allowed for filing a notice of appeal, if no such notice has been duly filed within such time; or"; (B) by striking out "PETITION FOR REVIEW" in the heading of paragraph (2) and inserting in lieu thereof "APPEAL"; (C) by striking out "petition for review" each place it appears in the text of paragraph (2) and inserting in lieu thereof "appeal"; and (D) by adding at the end thereof the following new subsection: " (b) NONREVIEWABLE DECISIONS.—The decision of the Tax Court in a proceeding conducted under section 7463 shall become final upon the expiration of 90 days after the decision is entered." (2) Section 7482(c) (relating to courts of review) is amended— (A) by striking out "section 2074 of title 28" in paragraph (2) and inserting in lieu thereof "section 2072 of title 28"; (B) by striking out the second sentence of paragraph (2); and (C) by striking out "petition" in paragraph (4) and inserting in lieu thereof "notice of appeal". (3) Section 7485 (relating to bond to stay assessment and collection) is amended— (A) by striking out "PETITION FOR REVIEW" in the heading of subsection (a) and inserting in lieu thereof "NOTICE OF

735

Ante, p. 733.

APPEAL";

(B) by striking out "petition for review" each place it appears in the text of subsection (a) and inserting in lieu thereof "notice of appeal"; and (C) by striking out "review bond" in paragraph (2) of subsection (a) and inserting in lieu thereof "appeal bond". (i)(l) Section 7487 (relating to cross references) is amended to read as follows: "SEC. 7487. CROSS REFERENCES. "(1) Nonreviewability.—For nonreviewability of Tax Court decisions in small claims cases, see section 7463(b). "(2) Transcripts.—For authority of the Tax Court to fix fees for transcript of records, see section 7474." (2) The last item in the table of sections for subchapter D of chapter 76 (relating to court review of Tax Court decisions) is amended to read as follows: "Sec. 7487. Cross references." (i) Section 7701(a) (27) (relating to definition of Tax Court) is amended by striking out "Tax Court of the United States" and inserting in lieu thereof "United States Tax Court". SEC. 961. CONTINUATION OF STATUS. The United States Tax Court established under the amendment made by section 951 is a continuation of the Tax Court of the United States as it existed prior to the date of enactment of this Act, the judges of the Tax Court of the United States immediately prior to the date of enactment of this Act shall become the judges of the United States Tax Court upon the enactment of this Act, and no loss of rights or powers, interruption of jurisdiction, or prejudice to mat-

^"^^' ^' ^^°"

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text:
Page:United States Statutes at Large Volume 83.djvu/764

 736

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

T's pending in the Tax Court of the United States before the date enactment of this Act shall result from the enactment of this Act. SEC. 962. EFFECTIVE DATES. (a) The amendments made by sections 951, 953, 954 (c) and (e), Ante, pp. 730- 955, 956, 958, and 960 (c), (d), (e), (g), and (j) shall take effect on 735 the date of enactment of this Act. (b) The amendment made by section 952(a) shall apply to judges appointed after the date of enactment of this Act. (c) The amendment made by section 952(b) shall take effect on the date of enactment of this Act, except that— (1) the term of office being served by a judge of the Tax Court on that date shall expire on the date it would have expired under the law in effect on the date preceding the date of enactment of this Act; and (2) a judge of the Tax Court on the date of enactment of this x\ct may be reappointed in the same manner as a judge of the Tax Court hereafter appointed. (d) The amendments made by subsections (a), (b), and (d) of section 954 shall apply to— (1) all judges of the Tax Court retiring on or after the date of enactment of this Act, and (2) all individuals performing judicial duties pursuant to secAnte, p. 730. tion 7447(c) or receiving retired pay pursuant to section 7447(d) on the day preceding the date of enactment of this Act. Any individual who has served as a judge of the Tax Court for 18 years or more by the end of one year after the date of the enactment of this Act may retire in accordance with the provisions of section 7447 of the Internal Revenue Code of 1954 as in effect on the day preceding the date of the enactment of this Act. Any individual who is a judge of the Tax Court on the date of the enactment of this Act may retire under the provisions of section 7447 of such Code upon the completion of the term of his office, if he is not reappointed as a judge of the Tax Court and gives notice to the President within the time preAnte, p. 730, scribcd by section 7447(b) of such Code (or if h's term expires within 6 months after the date of enactment of this Act, gives notice to the President before the expiration of 3 months after the date of enactment of this Act), and shall receive retired pay at a rate which bears the same ratio to the rate of the salary payable to a judge as the number of years he has served as a jvidge of the Tax Court bears to 15; except that the rate of such retired pay shall not exceed the rate of the salary of a judge of the Tax Court. For purposes of the preceding sentence the years of service as a judge of the Tax Court shall be determined in the manner set forth in section 7447(d) of such Code. Ante,pp. 733(g) ^ h e amendments made by sections 957 and 960 (a), (b), (f), and (i) shall take effect one year after the date of enactment of this Act. (f) The amendments made by sections 959 and 960(h) shall take effect 30 days after the date of the enactment of this Act. I n the case of any decision of the Tax Court entered before the 30th day after the date of the enactment of this Act, the United States Courts of Appeals shall have jurisdiction to hear an appeal from such decision, if such appeal was filed within the time prescribed by Rule 13(a) of the Fed28 USC app. Qj.c^Y Rules of Appellate Procedure or by section 7483 of the Internal Ante, p. 734. Revenue Code of 1954, as in effect at the time the decision of the Tax Court was entered.

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text:
Page:United States Statutes at Large Volume 83.djvu/765

 737

PUBLIC LAW 91-172-DEC. 30, 1969

83 STAT.]

TITLE X—INCREASE IN SOCIAL SECURITY BENEFITS Ampnd This title may be cited as the "Social Secu rity ^ U i e n U lm P nitttb o fl Uei O 1969'? SEC. 1002. INCREASE IN OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE BENEFITS. (d) Section 215(a) of the Social Security Act is amended by strikinoOLiiiving, out the table and inserting in lieu thereof the follo^\•ing: "TABLE F R DETERMINING PRIMARY INSURANCE AMOUNT AND MAXIMUM FAMILY BENEFITS O "1 (Primary insurance benefi t under 1939 Act, as modified)

If an i ndividual's primary insurance benefit (as determined under subsec. (d)) is

At least-

But not more than—

$16.20 $16.21 16.85 17.61 18.41 19.25 20.01 20.65 21.29 21.89 22.29 22.69 23.09 23.45 23.77 24.21 24.61 25.01 25.49 25.93 26.41 26.95 27.47 28.01 28.69 29.26 29.69 30.37 30.93 31.37 32.01 32.61 33.21 33.89 34.51 35.01 35.81 36.41 37.09 37.61 38.21 39.13 39.69 40.34 41.13 41.77 42.45 43.21 43.77 44.45 44.89

16.84 17.60 18.40 19.24 20.00 20.64 21.28 21.88 22.28 22.68 23.08 23.44 23.76 24.20 24.60 25.00 25.48 25.92 26.40 26.94 27.46 28.00 28.68 29.25 29.68 30.36 30.92 31.36 32.00 32.60 33.20 33.88 34.50 35.00 35.80 36.40 37.08 37.60 38.20 39.12 39.68 40.33 41.12 41.76 42.44 43.20 43.76 44.44 44.88 45.60

III

Or his primsry insurance amount (as determined under subsec. (c)) is—

IV

V

(Average monthly wage)

II (Primary insurance amount under 1967 A«t)

(Primary insurance amount)

(Maximum family benefits)

Or his average monthly wage (as determined under The amount subsec. (b)) is— referred to in the preceding paragraphs But of this At not subsection least— more shall be— than-

$55.40. or less 56.50 57.70 58.80 59.90 61.10 62.20 63.30 64.50 65.60 66.70 67.80 69.00 70.20 71.50 72.60 73.80 75.10 76.30 77.50 78.70 79.90 81.10 82.30 83.60 84.70 85.90 87.20 88.40 89.50 90.80 92.00 93.20 94.40 95.60 96.80 98.00 99.30 100. 50 101. 60 102.90 104.10 105.20 106.50 107.70 108.90 110.10 111.40 112.60 113.70 115.00 116.20 117.30

And the maximum amount of benefits payable (as provided in sec. 203(a)) on the basis of his wages and selfemployment income shall be—

$76 $77 79 81 82 84 86 88 90 91 93 95 97 98 100 102 103 105 107 108 110 114 119 123 128 133 137 142 147 151 156 161 165 170 175 179 184 189 194 198 203 208 212 217 222 226 231 236 240 245 250 254 259

$64. 00

$96.00

78 80 81 83 85 87 89 90 92 94 96 97 99 101 102 104 106 107 109 113 118 122 127 132 136 141 146 150 155 160 164 169 174 178 183 188 193 197 202 207 211 216 221 225 230 235 239 244 249 253 258 263

65.00 66.40 67.70 68.90 70.30 71.60 72.80 74.20 75.50 76.80 78.00 79.40 80.80 82.30 83.50 84.90 86.40 87.80 89.20 90.60 91.90 93.30 94.70 96.20 97.50 98.80 100.30 101.70 103.00 104.50 105.80 107.20 108.60 110.00 111.40 112.70 114.20 115.68 116.90 118.40 119.80 121.00 122.50 123.90 125. 30 126.70 128.20 129.50 130.80 132.30 133.70 134.90

97.50 99.60 101.60 103.40 105.50 107.40 109.20 111.30 113.30 115.20 117.00 119.10 121.20 123. 50 125.30 127.40 129.60 131.70 133.80 135.90 137.90 140. 00 142.10 144. 30 146. 30 148. 20 150.50 152.60 154. 50 156.80 158.70 160. 80 162.90 165. 00 167.10 169.10 171.30 173.40 175.40 177.60 179.70 181.50 183.80 185.90 188.00 190.10 192.30 195.20 199.20 202.40 206.40 210.40

Social Security Amendments of 1969.

si Stat. 824. ^2 USC 415.

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text:
Page:United States Statutes at Large Volume 83.djvu/766

 738

PUBLIC LAW 91-172~DEC. 30, 1969

[83 STAT.

"TABLE FOR DETERMINING PRIMARY INSURANCE AMOUNT AND MAXIMUM FAMILY BENEFITS—Continued

"1 (Primary insurance benefit under 1939 Act, as modified)

If an individual's primary insurance benefit (as determined under subsec. (d)) is—

At least—

But not more than—

II (Primary insurance amount under 1967 Act)

Or his primary insurance amount (as determined under subsec. (c)) is—

$118.60 119.80 121.00 122.20 123.40 124.70 125.80 127.10 128.30 129.40 130.70 131.90 133.00 134,30 135.50 136.80 137.90 139.10 140.40 141.50 142.80 144.00 145.10 146.40 147.60 148.90 150.00 151.20 152.50 153.60 154.90 156.00 157.10 158.20 159.40 160.50 16L60 162.80 163.90 165.00 166.20 167.30 168.40 169.50 170.70 17L80 172.90 174.10 175.20 176.30 177.50 178.60 179.70 180.80 182.00 183.10 184.20 185.40 186.50 187.60 188.80 189.90 191.00 192.00 193.00 194.00 195.00 196.00 197.00 198.00 199.00 200.00

III

IV

V

(Average monthly wage)

(Primary insurance amount)

(Maximum family benefits)

Or his average monthly wage (as determined under subsec. (b)) isThe amount referred to in the preceding paragraphs But of this At not subsection least— more shall be— than—

$264 268 273 278 282 287 292 296 301 306 310 315 320 324 329 334 338 343 348 352 357 362 366 371 376 380 385 390 394 399 404 408 413 418 422 427 432 437 441 446 451 455 460 465 469 474 479 483 488 493 497 502 507 511 516 521 525 530 535 539 544 549 554 557 561 564 568 571 575 578 582 585

$267 272 277 281 286 291 295 300 305 309 314 319 323 328 333 337 342 347 351 356 361 365 370 375 379 384 389 393 398 403 407 412 417 421 426 431 436 440 445 450 454 459 464 468 473 478 482 487 492 496 501 506 510 515 520 524 529 534 538 543 548 553 556 560 563 567 570 574 577 581 584 588

$136.40 137.80 139.20 140.60 142.00 143.50 144.70 146.20 147.60 148.90 150.40 151.70 153.00 154.50 155.90 157.40 158.60 160.00 161.50 162.80 164.30 165.60 166.90 168.40 169.80 171.30 172.50 173.90 175.40 176.70 178.20 179.40 180.70 182.00 183.40 184.60 185.90 187.30 188.50 189.80 191.20 192.40 193.70 195.00 196.40 197.60 198.90 200.30 201.50 202.80 204.20 205.40 206.70 208.00 209.30 210.60 211.90 213.30 214.50 215.80 217.20 218.40 219.70 220.80 222.00 223.10 224.30 225.40 226.60 227.70 228.90 230.00

And the maximum amount of benefits payable (as provided in sec. 203(a)) on the basis of his wages and selfemployment income shall be— $213.60 217.60 221.60 224.80 228.80 232.80 236.00 240.00 244.00 247.20 251.20 255.20 258.40 262.40 266.40 269.60 273.60 277.60 280.80 284.80 288.80 292.00 296.00 300.00 303.20 307.20 311.20 314.40 318.40 322.40 325.60 329.60 333.60 336.80 340.80 344.80 348.80 350.40 352.40 354.40 356.00 358.00 360.00 361.60 363.60 365.60 367.20 369.20 371.20 372.80 374.80 376.80 378.40 380.40 382.40 384.00 386.00 388.00 389.60 391.60 393.60 395.60 396.80 398.40 399.60 401.20 402.40 404.00 405.20 406.80 408.00 409.60

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text:
Page:United States Statutes at Large Volume 83.djvu/767

 PUBLIC LAW 91-172-DEC. 30, 1969

83 STAT. ]

739

"TABLE FOR DETERMINING PRIMARY INSURANCE AMOUNT AND MAXIMUM FAMILY BENEFITS-Continued "1 (primary insurance benefit under 1939 Act, as modified)

If an individual's primary insurance benefit (as determined under subsec. (d))is-

At least—

But not more than—

II (Primary insurance amount under 1967 Act)

Or his primsry insurance amount (as determined under subsec. (c)) is—

$201.00 202.00 203.00 204.00 205. 00 206.00 207.00 208.00 209.00 210. 00 211.00 212. 00 213. 00 214.00 215. 00 216. 00 217.00 218.00

III

IV

V

(Average monIhly wage)

(Primary insurance amount)

(Maximum family benefits)

The amount referred to in the preceding paragraphs of this subsection shall be—

And the maximum amount of benefits payable (as provided in sec. 203(a)) on the basis of his wages and selfemployment income shall be—

Or his average monthly wage (as determined under subsec. (b)) is

At least—

$589 592 596 599 603 606 610 613 617 621 624 628 631 635 638 642 645 649

But not more than—

$591 595 598 602 605 609 612 616 620 623 627 630 634 637 641 644 648 650

$231.20 232.30 233.50 234.60 235.80 236.90 238.10 239. 20 240. 40 241. 50 242.70 243.80 245. 00 246.10 247.30 248.40 249.60 250.70

$410.80 412.40 413.60 415. 20 416.40 418.00 419. 20 420.80 422.40 423.60 425.20 426.40 428. 00 429. 20 430.80 432. 00 433.60 434.40".

(b)(1) Section 203(a) of such Act is amended by striking out paragraph (2) and inserting in lieu thereof the following: "(2) when two or more persons were entitled (without the application of section 2 0 2 (j)(l) and section 223(b)) to monthly benefits under section 202 or 223 for January 1970 on the basis of the wages and self-employment income of such insured individual and at least one such person was so entitled for December 1969 on the basis of such wages and self-employment income, such total of benefits for January 1970 or any subsequent month shall not be reduced to less than the larger of— " (A) the amount determined under this subsection without regard to this paragraph, or " (B) an amount equal to the sum of the amounts derived by multiplying the benefit amount determined under this title (including this subsection, but without the application of section 222(b), section 202(q), and subsections (b), (c), and (d) of this section), as in effect prior to the enactment of the Social Security Amendments of 1969 (and prior to January 1, 1970), for each such person for such month, by 115 percent and raising each such increased amount, if it is not a multiple of $0.10, to the next higher multiple of $0.10; but in any such case (i) paragraph (1) of this subsection shall not be applied to such total of benefits after the application of subparagraph (B), and (ii) if section 202(k)(2)(A) was applicable in the case of any such benefits for January 1970, and ceases to apply after such month, the provisions of subparagraph (B) shall be applied, for and after the month in which section 202(k)(2) (A) ceases to apply, as though paragraph (1) had not been applicable to such total of benefits for January 1970, or".

81 Stat. 826. 42 USC 403,

42 USC 402, 423.

42 USC 422,

402.

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text:
Page:United States Statutes at Large Volume 83.djvu/768

 •740

81^state's33^^^' 42 USC 401'*29. f2 USC"4"2^"

42 USC 4lY' 81 Stat. 827,

PUBLIC LAW 9 1 - 1 7 2 - D E C. 30, 1969

[83 STAT.

(2) Notwithstanding any other provision of law, when two or more persons are entitled to monthly insurance benefits under title II of the Social Security Act for any month after 1969 on the basis of the wages and self-employment income of an insured individual (and at least one of such persons was so entitled for a month before January 1971 on the basis of an application filed before 1971), the total of the benefits to which such persons are entitled under such title for such iT^onth (after the application of sections 203(a) and 202(q) of such Act) shall be not less than the total of the monthly, insurance benefits to which such persons would be entitled under such title for such month (after the application of such sections 203(a) and 202 (q)) without regard to the amendment made by subsection (a) of this section. (^) Section 215(b)(4) of such xVct is amended by striking out "January 1968" each time it appears and inserting in lieu thereof "December 1969". (d) Section 215(c) of such Act is amended to read as follows: "Primary Insurance Amount Under 1967 Act

Ante, p. 737.

42 USC 423.

$2 USC 427*

42 USC 428.

"(c)(1) For the purposes of column II of the table appearing in subsection (a) of this section, an individual's primary insurance amount shall be computed on the basis of the law in effect prior to the enactment of the Social Security Amendments of 1969. "(2) The provisions of this subsection shall be applicable only in the case of an individual who became entitled to benefits under section 202(a) or section 223 before January 1970, or who died before such month." (e) The amendments made by this section shall apply with respect to monthly benefits under title II of the Social Security Act for months after December 1969 and with respect to lump-sum death payments under such title in the case of deaths occurring after December 1969. (f) If an individual was entitled to a disability insurance benefit under section 223 of the Social Security Act for December 1969 and became entitled to old-age insurance benefits under section 202(a) of such Act for January 1970, or he died in such month, then, for purposes of section 215(a)(4) of the Social Security Act (if applicable), the amount in column IV of the table appearing in such section 215(a) for such individual shall be the amount in such column on the line on which in column II appears his primary insurance amount (as determined under section 215(c) of such Act) instead of the amount in column IV equal to the primary insurance amount on which his disability insurance benefit is based. SEC. 1003. INCREASE IN BENEFITS FOR CERTAIN INDIVIDUALS AGE 72 AND OVER. (a)(1) Section 227(a) of the Social Security Act is amended by striking out "$40" and inserting in lieu thereof "$46", and by striking out "$20" and inserting in lieu thereof "$23". (2) Section 227(b) of such Act is amended by striking out "$40" and inserting in lieu thereof "$46". (b)(1) Section 228(b)(1) of such Act is amended by striking out "$40" and inserting in lieu thereof "$46". (2) Section 228(b)(2) of such Act is amended by striking out "$40" and inserting in lieu thereof "$46", and by striking out "$20" and inserting in lieu thereof "$23". (3) Section 228(c)(2) of such Act is amended by striking out "$20" and inserting in lieu thereof "$23".

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text:
Page:United States Statutes at Large Volume 83.djvu/769

 83

STAT.]

PUBLIC LAW 9M72-DEC. 30, 1969

741

(4) Section 228(c)(3)(A) of such Act is amended by striking out si f^^r !^!' "$40" and inserting in lieu thereof "$46". (5) Section 228(c)(3)(B) of such Act is amended by striking out "$20" and inserting in lieu thereof "$23". (c) The amendments made by subsections (a) and (b) shall apply Effective date. with respect to monthly benefits under title II of the Social Security 42 USC 401-429. Act for months after December 1969. SEC. 1004. MAXIMUM AMOUNT OF A WIFE'S OR HUSBAND'S INSURANCE BENEFIT. Stat. 828. (a) Section 202(b)(2) of the Social Security Act is amended to 81 USC 402. 42 read as follows: "(2) Except as provided in subsection (q), such wife's insurance benefit for each month shall be equal to one-half of the primar^^ insurance amount of her husband (or, in the case of a divorced wife, her former husband) for such month." (b) Section 202(c)(3) of such Act is amended to read as follows: 81 Stat. 828. "(3) Except as provided in subsection (q), such husband's insurance benefit for each month shall be equal to one-half of the primary insurance amount of his wife for such month." (c) Sections 202(e)(4) and 202(f)(5) of such Act are each amended 81 Stat. 828, by striking out "whichever of the following is the smaller: (A) onehalf of the primary insurance amount of the deceased individual on whose wages and self-employment income such benefit is based, or (B) $105" and inserting in lieu thereof "one-half of the primary insurance amount of the deceased individual on whose wages and self-employment income such benefit is based". (d) The amendments made by subsections (a), (b), and (c) shall Effective date. apply with respect to monthly benefits under title II of the Social Security Act for months after December 1969. SEC. 1005. ALLOCATION TO DISABILITY INSURANCE TRUST FUND. 81 Stat. 837. (a) Section 201(b)(1) of the Social Security Act is amended— 42 USC 4 0 1. (1) by striking out "and" at the end of clause (B); and (2) by striking out "1967, and so reported," and inserting in lieu thereof the following: "1967, and before January 1, 1970, and so reported, and (D) 1.10 per centum of the wages (as so defined) paid after December 31, 1969, and so reported,". (b) Section 201(b)(2) of such Act is amended— (1) by striking out "and" at the end of clause (B); and (2) by striking out "1967," and inserting in lieu thereof the following: "1967, and before January 1, 1970, and (D) 0.825 of 1 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1969,". SEC. 1006. DISREGARDING OF RETROACTIVE PAYMENT OF OASDI BENEFIT INCREASE. Notwithstanding the provisions of sections 2(a) (10), 4 0 2 (a)(7), 1002(a)(8), 1402(a)(8), and 1602(a) (13) and (14) of the Social Security Act, each State, in determining need for aid or assistance 42 USC 302,, under a State plan approved under title I, X, X IV, or X VI, or part Jgg^ ^^°^' ^^"' A of title IV, of such Act, shall disregard (and the plan shall be deemed to require the State to disregard), in addition to any other amounts which the State is required or permitted to disregard in determining such need, any amount paid to an individual under title II of such Act (or under the Railroad Retirement Act of 1937 by reason of the first proviso in section 3(e) thereof), in any month after es Stat. ess; December 1969, to the extent that (1) such payment is attributable ^%5 USC^228r to the increase in monthly benefits under the old-age, survivors, and

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