Public Law 97–362

10-Year Carryback and 5-Year Carryforward for Losses Other Than Mortgage Disposition Losses.—

Paragraph (1) of section 172(b) (relating to net operating loss carrybacks and carryovers)

26 USC 172.

is amended by redesignating subparagraphs (H) and (I) as subparagraphs (I) and (J), respectively, and by inserting after subparagraph (G) the following new subparagraph:

“(H)“(H)

In the case of a net operating loss of the Federal National Mortgage Association for any taxable year beginning after December 31, 1981—

“(i)“(i)

such loss, to the extent it exceeds the FNMA mortgage disposition loss (within the meaning of subsection (i)), shall be—

“(I)“(I)

a net operating loss carryback to each of the 10 taxable years preceding the taxable year of the loss, and

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“(II)“(II)

a net operating loss carryover to each of the 5 taxable years following the taxable year of the loss, and

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“(ii)“(ii)

the FNMA mortgage disposition loss shall be—

“(I)“(I)

a net operating loss carryback to each of the 3 taxable years preceding the taxable year of the loss, and

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“(II)“(II)

a net operating loss carryover to each of the 15 taxable years following the taxable year of the loss.”

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Rules Relating to FNMA Mortgage Disposition Loss.—

Section 172 is amended by redesignating subsections (i) and (j) as

26 USC 172.

subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection:

“(i)“(i)

Rules Relating to FNMA Mortgage Disposition Loss.—

“(1)“(1)

FNMA mortgage disposition loss defined.—

“(A)“(A)

In general.—

For purposes of subsection (b)(1)(H)

Ante, p. 1727.

and this subsection, the term ‘FNMA mortgage disposition loss’ means for any taxable year the excess (if any) of—

“(i)“(i)

the losses for such year from the sale or exchange of mortgages, securities, and other evidences of indebtedness, over

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“(ii)“(ii)

the gains for such year from the sale or exchange of such assets.

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“(B)“(B)

FNMA mortgage disposition loss cannot exceed the net operating loss for the year.—

The amount of the FNMA mortgage disposition loss for any taxable year shall not be greater than the net operating loss for such year.

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“(C)“(C)

Foreclosure transactions not included.—

In applying subparagraph (A), any gain or loss which is attributable to a mortgage foreclosure shall not be taken into account.

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“(2)“(2)

Coordination with subsection (b)(2).—

In applying paragraph (2) of subsection (b), a FNMA mortgage disposition loss shall be treated in a manner similar to the manner in which a foreign expropriation loss is treated.”

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Conforming Amendments.—

Effective Date.—

The amendments made by this section shall

26 USC 172 note.

apply to net operating losses for taxable years beginning after December 31, 1981.

a corporation was ordered by the Federal Communications Commission in January 1975 to divest itself of its newspaper operations or its broadcasting operations,

after the conclusion of the appellate process, the order was again issued in October 1979,

the corporation sold its broadcasting operations before 1982, and

on October 15, 1981, the corporation acquired 100 percent of the stock of a publishing company,

In General.—

Paragraph (7) of section 48(l) is amended by

26 USC 48.

striking out “but does not” and all that follows and inserting in lieu thereof “; except that such term does not include equipment for hydrogenation, refining, or other process subsequent to retorting other than hydrogenation or other process which is applied in the vicinity of the property from which the shale was extracted and which is applied to bring the shale oil to a grade and quality suitable for transportation to and processing in a refinery.”

Effective Date.—

The amendment made by this section shall

26 USC 48 note.

apply to periods beginning after December 31, 1980, and before January 1, 1983, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1954.

Computation of Annuities.—

Subsection (m) of section 7448

26 USC 7448.

(relating to computation of annuities) is amended—

Cost-of-Living Adjustments.—

Section 7448 (relating to annuities to surviving spouses and dependent children of judges) is amended by redesignating subsection (s) as subsection (t), and by inserting after subsection (r) the following new subsection:

“(s)“(s)

Increases Attributable to Increased Pay.—

Whenever the salary of a judge under section 7443(c) is increased, each annuity payable from the survivors annuity fund which is based, in whole or in part, upon a deceased judge having rendered some portion of his or her final 18 months of service as a judge of the Tax Court, shall also be increased. The amount of the increase in such an annuity shall be determined by multiplying the amount of the annuity, on the date on which the increase in salary becomes effective, by 3 percent for each full 5 percent by which such salary has been increased.”

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Catchup for Survivors Annuities in Pay Status on Date of Enactment.—

If an annuity payable under section 7448(h) of the Internal Revenue Code of 1954 (relating to entitlement to annuity) to the surviving spouse of a judge of the United States Tax Court is being paid on the date of the enactment of this Act, then the amount of that annuity shall be adjusted, as of the first day of the first month beginning more than 30 days after such date, to reflect the amount of the annuity which would have been payable if the amendment made by subsection (a) applied with respect to increases in the salary of a judge under section 7443(c) of such Code taking

26 USC 7443.

effect after December 31, 1963.

Effective Date.—

Disputes Involving Certain Excise Taxes.—

Oral Findings of Fact or Opinions.—

Subsection (b) of section 7459 (relating to inclusion of findings of fact or opinions in report) is

26 USC 7459.

amended by adding at the end thereof the following new sentence: “Subject to such conditions as the Tax Court may by rule provide, the requirements of this subsection and of section 7460 are met if findings of fact or opinion are stated orally and recorded in the transcript of the proceedings.”

Hearings and Opinions by Commissioners in Cases Involving Deficiencies of $5,000 or Less.—

Designation of Judges Who Are Receiving Retired Pay.—

Subsection (b) of section 7447 (relating to retirement) is amended by

26 USC 7447.

adding at the end thereof the following sentence: “Any judge who retires shall be designated ‘senior judge’.”

In General.—

Subsection (a) of section 6051 (relating to

26 USC 6051.

receipts for employees) is amended by striking out “on the day on which the last payment of remuneration is made” and inserting in lieu thereof “within 30 days after the date of receipt of a written request from the employee if such 30-day period ends before January 31”.

Effective Date.—

The amendments made by this section shall

26 USC 6051 note.

apply with respect to employees whose employment is terminated after the date of the enactment of this Act.

Tax on Wagers.—

Subsection (a) of section 4401 (relating to

26 USC 4401.

wagers) is amended to read as follows:

“(a)“(a)

Wagers.—

“(1)“(1)

State authorized wagers.—

There shall be imposed on any wager authorized under the law of the State in which accepted an excise tax equal to 0.25 percent of the amount of such wager.

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“(2)“(2)

Unauthorized wagers.—

There shall be imposed on any wager not described in paragraph (1) an excise tax equal to 2 percent of the amount of such wager.”

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Occupational Tax.—

Section 4411 (relating to imposition of

26 USC 4411.

tax) is amended to read as follows:

“SEC. 4411. IMPOSITION OF TAX.

“(a)“(a)

In General.—

There shall be imposed a special tax of $500 per year to be paid by each person who is liable for the tax imposed under section 4401 or who is engaged in receiving wagers for or on behalf of any person so liable.

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“(b)“(b)

Authorized Persons.—

Subsection (a) shall be applied by substituting ‘50’ for ‘500’ in the case of—

“(1)“(1)

any person whose liability for tax under section 4401 is determined only under paragraph (1) of section 4401(a), and

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“(2)“(2)

any person who is engaged in receiving wagers only for or on behalf of persons described in paragraph (1).”

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Effective Dates.—

Eligibility Requirements.—

Paragraph (1) of section 8521(a) of title 5, United States Code, is amended to read as follows:

“(1)“(1)

‘Federal service’ means active service (not including active duty in a reserve status unless for a continuous period of 180 days or more) in the armed forces or the Commissioned Corps of the National Oceanic and Atmospheric Administration if with respect to that service—

“(A)“(A)

the individual was discharged or released under honorable conditions (and, if an officer, did not resign for the good of the service); and

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“(B)“(B)

(i)(i)

the individual was discharged or released after completing his first full term of active service which the individual initially agreed to serve, or

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“(ii)“(ii)

the individual was discharged or released before completing such term of active service—

“(I)“(I)

for the convenience of the Government under an early release program,

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“(II)“(II)

because of medical disqualification, pregnancy, parenthood, or any service incurred injury or disability,

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“(III)“(III)

because of hardship, or

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“(IV)“(IV)

because of personality disorders or inaptitude but only if the service was continuous for 365 days or more;”.

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Period for Which Benefits Payable.—

Section 8521 of such title 5 is amended by adding at the end thereof the following new subsection:

“(c)“(c)

(1)(1)

An individual shall not be entitled to compensation under this subchapter for any week before the fifth week beginning after the week in which the individual was discharged or released.

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“(2)“(2)

The aggregate amount of compensation payable on the basis of Federal service (as defined in subsection (a)) to any individual with respect to any benefit year shall not exceed 13 times the individual’s weekly benefit amount for total unemployment.”

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Effective Date.—

General Rule.—

Effective Date.—