Volume 86 · 657
Public Law 92–418
To amend the Internal Revenue Code of 1954 with regard to the exempt status of veterans’ organizations, and for other purposes.
Approved August 29, 1972
Statutory text
AN ACT
To amend the Internal Revenue Code of 1954 with regard to the exempt status of veterans’ organizations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That
section 501(c) of the Internal Revenue Code of 1954 (relating to list of exempt organizations) is amended by adding at the end thereof the following new paragraph:
“(19) A post or organization of war veterans, or an auxiliary unit or society of, or a trust or foundation for, any such post or organization—
“(A) organized in the United States or any of its possessions,
“(B) at least 75 percent of the members of which are war veterans and substantially all of the other members of which are individuals who are veterans (but not war veterans), or are cadets, or are spouses, widows, or widowers of war veterans or such individuals, and
“(C) no part of the net earnings of which inures to the benefit of any private shareholder or individual.”.
Section 512(a) of such Code (relating to definition of unrelated business taxable income) is amended by adding at the end thereof the following new paragraph:
“(4) Special rule applicable to organizations described in section 30KC) (19).—
In the case of an organization described
Supra.
in section 501(c) (19), the term ‘unrelated business taxable income’ does not include any amount attributable to payments for life, sick, accident, or health insurance with respect to members of such organizations or their dependents which is set aside for the purpose of providing for the payment of insurance benefit s or
for a purpose specified in section 170(c) (4). If an amount set aside under the preceding sentence is used during the taxable year for a purpose other than a purpose described in the preceding sentence, such amount shall be included, under paragraph (1), in unrelated business taxable income for the taxable year.”
The amendments made by this section shall apply to taxable years beginning after December 31, 1969.
Sec. 2.
Section 165(h) of the Internal Revenue Code of 1954 (relating to disaster losses) is amended by—
striking out the first sentence and inserting in lieu thereof the following: “Notwithstanding the provisions of subsection (a), any loss attributable to a disaster occurring in an area subsequently determined, by the President of the United States to warrant assistance by the Federal Government under the Disaster Relief Act of 1970 may, at the election of the taxpayer, be
deducted for the taxable year immediately preceding the taxable year in which the disaster occurred.”; and
inserting before the period in the second sentence a comma and the following: “based on facts existing at the date the tax-payer claims the loss”.
Section 6405 of such Code (relating to reports of refunds and
credits to the Joint Committee on Internal Revenue Taxation) is amended by adding at the end thereof the following new subsection:
“(d) Refunds Attributable to Certain Disaster Losses.—
If any refund or credit of income taxes is attributable to the taxpayer’s election under section 165(h) to deduct a disaster loss for the taxable year
Ante, p. 656.
immediately preceding the taxable year in which the disaster occurred, the Secretary or his delegate is authorized in his discretion to make the refund or credit, to the extent attributable to such election, without regard to the provisions of subsection (a) of this section. If such
Report to congressional committee.
refund or credit is made without regard to subsection (a), there shall thereafter be submitted to such Joint Committee a report containing the matter specified in subsection (a) as soon as the Secretary or his delegate shall determine the correct amount of the tax for the taxable year for which the refund or credit is made.”
The amendment made by subsection (a) shall apply to disasters
Effective date.
occurring after December 31, 1971, in taxable years ending after such date. The amendment made by subsection (b) shall apply with respect to refunds or credits made after July 1, 1972.
Approved August 29, 1972.