§ 7448. Annuities to surviving spouses and dependent children of judges and special trial judges

Footnotes

1. 1 So in original.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1961

   Pub. L. 87–370 § 1 · 75 Stat. 796

   Enacted · 26 U.S.C. § 7448

   Added Pub. L. 87–370, § 1, Oct. 4, 1961, 75 Stat. 796

   Source evidence

   Code source credit
   Added Pub. L. 87–370, § 1, Oct. 4, 1961, 75 Stat. 796

   Enacted provision · exact public law section
   (1) by striking out subparagraph (A) of paragraph (1) and inserting in lieu thereof the following: “(A) an annuity contract is purchased— “(i) for an employee by an employer described in section 501(c)(3) which is exempt from tax under section 501(a), or “(ii) for an employee (other than an employee described in clause (i)), who performs services for an educational institution (as defined in section 151(e)(4)), 26 USC 151. by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing,”;

2. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 960(c) · 83 Stat. 487

   Substituted · 26 U.S.C. § 7448(a)(1)

   Pub. L. 91–172, § 960(c), substituted “United States Tax Court” for “Tax Court of the United States”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 91–172, § 960(c), substituted “United States Tax Court” for “Tax Court of the United States”.

   Enacted provision · exact public law section
   (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”.

3. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 955(a) · 83 Stat. 487

   Substituted · 26 U.S.C. § 7448(b)

   Pub. L. 91–172, § 955(a), substituted provisions authorizing a judge to file notice of election to take benefits relating to survivor annuities while a judge, and if not reappointed, authorizing such election at any time before the day after the day on which his successor takes office, for provisions authorizing a judge to file within 6 months after he takes office or is reappointed, or within 6 months after he becomes eligible for retirement under former section 7447(b) of this title, or within 6 months after Oct. 4, 1961

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 91–172, § 955(a), substituted provisions authorizing a judge to file notice of election to take benefits relating to survivor annuities while a judge, and if not reappointed, authorizing such election at any time before the day after the day on which his successor takes office, for provisions authorizing a judge to file within 6 months after he takes office or is reappointed, or within 6 months after he becomes eligible for retirement under former section 7447(b) of this title, or within 6 months after Oct. 4, 1961.

   Enacted provision · exact public law section
   (a) 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. In 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.”

4. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 955(d)(1) · 83 Stat. 487

   1. Substituted · 26 U.S.C. § 7448(d)

      Pub. L. 91–172, § 955(d)(1), (2), substituted “civil service retirement laws” for “Civil Service Retirement Act”

   2. Substituted · 26 U.S.C. § 7448(d)

      Pub. L. 91–172, § 955(d)(1), (2), substituted “section 8332 of title 5 of the United States Code” for “section 3 of the Civil Service Retirement Act (5 U.S.C. 2253)”

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 91–172, § 955(d)(1), (2), substituted “civil service retirement laws” for “Civil Service Retirement Act” and “section 8332 of title 5 of the United States Code” for “section 3 of the Civil Service Retirement Act (5 U.S.C. 2253)”.

   Enacted provision · exact public law section
   SEC. 955. SURVIVORS. (a) 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. In 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 80 Stat. 567. 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 80 Stat. 409. 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)”.

5. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 955(b)(1) · 83 Stat. 487

   Substituted · 26 U.S.C. § 7448(h)

   Pub. L. 91–172, § 955(b)(1), substituted “civil service retirement laws” for “Civil Service Retirement Act”

   Source evidence

   Code amendment note
   Subsec. (h). Pub. L. 91–172, § 955(b)(1), substituted “civil service retirement laws” for “Civil Service Retirement Act”.

   Enacted provision · exact public law section
   (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”.

6. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 955(b)(3) · 83 Stat. 487

   Substituted · 26 U.S.C. § 7448(m)

   Pub. L. 91–172, § 955(b)(3), substituted “section 2107 of title 5 of the United States Code” for “section 1(c) of the Civil Service Retirement Act (5 U.S.C. 2251(c))”

   Source evidence

   Code amendment note
   Subsec. (m). Pub. L. 91–172, § 955(b)(3), substituted “section 2107 of title 5 of the United States Code” for “section 1(c) of the Civil Service Retirement Act (5 U.S.C. 2251(c))”.

   Enacted provision · exact public law section
   (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 80 Stat. 409. Code”.

7. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 title IX · 83 Stat. 487

   1. Substituted · 26 U.S.C. § 7448(n)

      Pub. L. 91–172, §§ 955(b)(2), 960(e), substituted “section 8332 of title 5 of the United States Code” for “section 3 of the Civil Service Retirement Act (5 U.S.C. 2253)”

   2. Inserted · 26 U.S.C. § 7448(n)

      Pub. L. 91–172, §§ 955(b)(2), 960(e), inserted reference to service as a judge of the Tax Court of the United States

   Source evidence

   Code amendment note
   Subsec. (n). Pub. L. 91–172, §§ 955(b)(2), 960(e), substituted “section 8332 of title 5 of the United States Code” for “section 3 of the Civil Service Retirement Act (5 U.S.C. 2253)” and inserted reference to service as a judge of the Tax Court of the United States.

   Enacted provision · exact public law
   TITLE IX— MISCELLANEOUS PROVISIONS Subtitle A— Miscellaneous Income Tax Provisions SEC. 901. EXCLUSION OF ADDITIONAL LIVING EXPENSES. (a) Exclusion of Additional Living Expenses.— Part III of subchapter B of chapter 1 (relating to items specifically excluded 68A Stat. 39; 80 Stat. 32. 26 USC 101–123. from gross income) is amended by renumbering section 123 as 124, and by inserting after section 122 the following new section: “SEC. 123. AMOUNTS RECEIVED UNDER INSURANCE CONTRACTS FOR CERTAIN LIVING EXPENSES. “(a) General Rule.— In the case of an individual whose principal residence is damaged or destroyed by fire, storm, or other casualty, or who is denied access to his principal residence by governmental authorities because of the occurrence or threat of occurrence of such a casualty, gross income does not include amounts received by such individual under au insurance contract which are paid to compensate or reimburse such individual for living expenses incurred for himself and members of his household resulting from the loss of use or occupancy of such residence. “(b) Limitation.— Subsection (a) shall apply to amounts received by the taxpayer for living expenses incurred during any period only to the extent the amounts received do not exceed the amount by which— “(1) the actual living expenses incurred during such period for himself and members of his household resulting from the loss of use or occupancy of their residence, exceed “(2) the normal living expenses which would have been incurred for himself and members of his household during such period.” (b) Conforming Amendment.— The table of sections for such art III is amended by striking out the last item and inserting in lieu thereof the following: “Sec. 123. Amounts received under insurance contracts for certain living expenses. “Sec. 124. Cross references to other Acts.” (c) Effective Date.— The amendments made by this section shall apply with respect to amounts received on or after January 1, 1969. SEC. 902. DEDUCTIBILITY OF TREBLE DAMAGE PAYMENTS, FINES AND PENALTIES, ETC. (a) Fines and Penalties; Treble Damage Payments.— Section 68A Stat. 45; 76 Stat. 973. 26 USC 162. 162 (relating to deduction of trade or business expenses) is amended by redesignating subsection (f) as subsection (h), and by inserting after subsection (e) the following new subsections: “(f) Fines and Penalties.— No deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law. “(g) Treble Damage Payments Under the Antitrust Laws.— If in a criminal proceeding a taxpayer is convicted of a violation of the antitrust laws, or his plea of guilty or nolo contendere to an indictment or information charging such a violation is entered or accepted in such a proceeding, no deduction shall be allowed under subsection (a) for two-thirds of any amount paid or incurred— “(1) on any judgment for damages entered against the taxpayer under section 4 of the Act entitled ‘An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes’, approved October 15, 1914 (commonly known 38 Stat. 731. 15 USC 15. as the Clayton Act), on account of such violation or any related violation of the antitrust laws which occurred prior to the date of the final judgment of such conviction, or “(2) in settlement of any action brought under such section 4 on account of such violation or related violation. The preceding sentence shall not apply with respect to any conviction or plea before January 1, 1970, or to any conviction or plea on or after such date in a new trial following an appeal of a conviction before such date.” (b) Bribes and Illegal Kickbacks.— Section 162(c) (relating to improper payments to certain government officials or employees) is amended to read as follows: “(c) Bribes and Illegal Kickbacks.— “(1) Illegal payments to government officials or employees.— No deduction shall be allowed under subsection (a) for any payment made, directly or indirectly, to an official or employee of any government, or of any agency or instrumentality of any government, if the payment constitutes an illegal bribe or kickback or, if the payment is to an official or employee of a foreign government, the payment would be unlawful under the laws of the United States if such laws were applicable to such payment and to such official or employee. The burden of proof in respect of the issue, for the purposes of this paragraph, as to whether a payment constitutes an illegal bribe or kickback (or would be unlawful under the laws of the United States) shall be upon the Secretary or his delegate to the same extent as he bears the burden of proof Ante, p. 532. under section 7454 (concerning the burden of proof when the issue relates to fraud). “(2) Other bribes or kickbacks.— If in a criminal proceeding a taxpayer is convicted of making a payment (other than a payment described in paragraph (1)) which is an illegal bribe or kickback, or his plea of guilty or nolo contendere to an indictment or information charging the making of such a payment is entered or accepted in such a proceeding, no deduction shall be allowed under subsection (a) on account of such payment or any related payment made prior to the date of the final judgment in such proceeding. “(3) Statute of limitations.— If a taxpayer claimed a deduction for a payment described in paragraph (2) which is disallowed because of a final judgment entered after the close of the taxable year for which the deduction was claimed, and if the proceeding was based on an indictment returned or an information filed prior to the expiration of the period for the assessment of any deficiency for such taxable year, the period for the assessment of any deficiency attributable to the deduction of such payment shall not expire prior to the expiration of one year from the date of such final judgment, and such deficiency may be assessed prior to the expiration of such one-year period notwithstanding the provision of any other law or rule of law which would otherwise prevent such assessment.” (c) Effective Dates.— Section 162(f) of the Internal Revenue Code of 1954 (as added by subsection (a)) shall apply to all taxable years to which such Code applies. Section 162(g) of such Code (as added by subsection (a)) shall apply with respect to amounts paid or incurred after December 31, 1969. Section 162(c)(1) of such Code (as amended by subsection (b)) shall apply to all taxable years to which such Code applies. Sections 162(c)(2) and (3) of such Code (as amended by subsection (b)) shall apply with respect to payments made after the date of the enactment of this Act. SEC. 903. ACCRUED VACATION PAY. Section 97 of the Technical Amendments Act of 1958 is amended by 72 Stat. 1672; 80 Stat. 1025. 26 USC 162 note. striking out “January 1, 1969” and inserting in lieu thereof “January 1, 1971”. SEC. 904. DEDUCTION OF RECOVERIES OF ANTITRUST DAMAGES, ETC. (a) Deduction Allowed.— Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by adding after section 185 (as added by section 705 of this Ante, p. 672. Act) the following new section: “SEC. 186. RECOVERIES OF DAMAGES FOR ANTITRUST VIOLATIONS, ETC. “(a) Allowance of Deduction.— If a compensatory amount which is included in gross income is received or accrued during the taxable year for a compensable injury, there shall be allowed as a deduction for the taxable year an amount equal to the lesser of— “(1) the amount of such compensatory amount, or “(2) the amount of the unrecovered losses sustained as a result of such compensable injury. “(b) Compensable Injury.— For purposes of this section, the term ‘compensable injury’ means— “(1) injuries sustained as a result of an infringement of a patent issued by the United States, “(2) injuries sustained as a result of a breach of contract or a breach of fiduciary duty or relationship, or “(3) injuries sustained in business, or to property, by reason of any conduct forbidden in the antitrust laws for which a civil action may be brought under section 4 of the Act entitled ‘An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes’, approved October 15, 1914 (commonly known as the Clayton Act). 38 Stat. 731. 15 USC 15. “(c) Compensatory Amount.— For purposes of this section, the term ‘compensatory amount’ means the amount received or accrued during the taxable year as damages as a result of an award in, or in settlement of, a civil action for recovery for a compensable injury, reduced by any amounts paid or incurred in the taxable year in securing such award or settlement. “(d) Unrecovered Losses.— “(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 Ante, p. 619. 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) Injury 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) Net 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 Net 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 thereof 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. SEC. 905. CORPORATIONS USING APPRECIATED PROPERTY TO REDEEM THEIR OWN STOCK. (a) General Rule.— Section 311 (relating to taxability of corporation 68A Stat. 94. 26 USC 311. on distribution) is amended by adding at the end thereof the following new subsection: “(d) Appreciated Property Used To Redeem Stock.— “(1) In general.— If— “(A) a corporation distributes property (other than 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 value 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) Exceptions and limitations.— 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 12-month period ending 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 qualifies under section 302(b)(3)(determined without the application of section 302(c)(2)(A)(ii)); 26 USC 302. “(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 5-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 period ending one year before the date of the distribution; “(C) a distribution before December 1, 1974, of stock of a corporation substantially all of the assets of which the distributing corporation (or a corporation which is a member of the same affiliated group (as defined in section 1504(a)) as 68A Stat. 369. 26 USC 1504. the distributing corporation) held on November 30, 1969, if such assets constitute a trade or business which has been actively conducted throughout the one-year period ending on the date of the distribution; “(D) 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 (26 Stat. 209; 15 U.S.C. 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 distribution 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; “(F) a distribution to a private foundation in redemption of stock which is described in section 537(b)(2)(A) and Post, p. 715. (B); and “(G) a distribution by a corporation to which part I of 68A Stat. 268. 26 USC 851–855. subchapter M (relating to regulated investment companies) applies, if such distribution is in redemption of its stock upon the demand of the shareholder.” (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) Sections 301(b)(1)(B)(ii), 301(d)(2)(B), and 312(c)(3) are each amended by striking out “subsection (b) or (c)” and inserting in lieu thereof “subsection (b), (c), or (d)”. (c) Effective Date.— (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. (a) 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. “(b) Special Rules.— For purposes of subsection (a)— “(1) Section 303 redemption needs.— The term ‘section 303 68A Stat. 88. 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 Ante, 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) Effective 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) Special Contingency Reserves Under Group Contracts.— (1) Interest paid.— Section 805(e)(4) (relating to interest 73 Stat. 118. 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) 73 Stat. 125. (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.” (b) Certain Distributions.— (1) Exception from definition of distribution.— Section 815(f) (relating to definition of distribution) is amended— 78 Stat. 859; 81 Stat. 734. (A) by striking out “or” at the end of paragraph (3); (B) by striking out the period at the end of paragraph (4) and inserting in lieu thereof “; or”; (C) by inserting after paragraph (4) the following new paragraph: “(5) any distribution after December 31, 1968, of the stock 26 USC 355. of 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 distributing 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 of Losses.— (1) In 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.— If an insurance company— “(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, 73 Stat. 127. then any operations loss carryover under section 812, unused loss 76 Stat. 995. carryover under section 825, or net operating loss carryover under Ante, p. 619. section 172, as the case may 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 69A Stat. 264. 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 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 76 Stat. 997. 26 USC 832. policyholders) shall not be allowed, and “(2) section 812(b)(1)(A)(iii) (relating to additional years 73 Stat. 127. to which losses may be carried by new life insurance companies) shall not apply. “(c) Regulations.— The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this section.” (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 (relating 68A Stat. 268. to definition of regulated investment company) is amended by adding at the end thereof the following new subsection: “(f) Certain Unit Investment Trusts.— For purposes of this title— “(1) A unit investment trust (as defined in the Investment Company Act of 1940)— 54 Stat. 789. 15 USC 80a–51. “(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) In 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; “(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 31, 1968, and to taxable years of holders of interests in 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) Exclusion From Foreign Base Company Income.— Section 76 Stat. 1009. 26 USC 954. 954(b)(4) (relating to exception for foreign corporations not availed of to reduce taxes) is amended to read as follows: “(4) Exception for foreign corporations not availed of to reduce taxes.— For purposes of subsection (a), foreign base company income does not include any item of income received 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, 1969. SEC. 910. SALES OF CERTAIN LOW-INCOME HOUSING PROJECTS. (a) Nonrecognition of Gain in Case of Approved Dispositions.— 68A Stat. 302; 78 Stat. 854. 26 USC 1031–1038. Part III of Subchapter O of chapter 1 (relating to common nontaxable exchanges) is amended by adding at the end thereof the following new section: “SEC. 1039. CERTAIN SALES OF LOW-INCOME HOUSING PROJECTS. “(a) Nonrecognition 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 acquires 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. “(b) Definitions.— For purposes of this section— “(1) 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 75 Stat. 150; 82 Stat. 498. 12 USC 1715l, 1715z–1. “(B) with respect to which the owner is, under such sections or regulations issued thereunder— “(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) Net 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. 68A Stat. 296. 26 USC 1012. “(d) Basis of Other Qualified Housing Project.— If the taxpayer 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). “(e) 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 section 68A Stat. 770. 26 USC 6212. 6212(c) or the provision of any other law or rule of law which would otherwise prevent such assessment. “(2) Time for assessment of other deficiencies attributable to election.— If a taxpayer has made an election under 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 Ante, p. 525. (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 new paragraph: “(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 Ante, p. 718. 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 property 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— “(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 disposed of, “(ii) then to any property (other than section 1250 property) to which section 1039 applies, in the amount Ante, p. 718. of its cost, 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). “(D) Additional depreciation 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 of, 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 Ante, p. 652. 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.” (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 case of a disposition of section 1250 property, the property is treated as consisting of more than one element by reason of the application Ante, p. 721. 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 68A Stat. 325. a capital asset nor property described in section 1231 shall be the sum of the amounts determined under paragraph (2). “(2) 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 Ante, p. 718. 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 of Money and Other Property.— Section 80 Stat. 1581. 26 USC 1382. 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. (a) In 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. SEC. 913. COOPERATIVE HOUSING CORPORATIONS. (a) Stock Held by Governmental Units.— Section 216(b)(relating 68A Stat. 71. 26 USC 216. to definitions) is amended by adding at the end thereof the following new paragraph: “(4) Stock owned by governmental units.— For 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 68A Stat. 199. 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 68A Stat. 303. 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 68A Stat. 154. 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, 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 68A Stat. 849. 26 USC 7121, 7122. 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 year 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 26 USC 453. 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. 68A Stat. 103. 26 USC 333. For 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 26 USC 351. 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 26 USC 1223. 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. (a) Exemption from Tax on Motor Vehicles.— Section 4063(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: “(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 “(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) 72 Stat. 1279. 26 USC 4216. (relating to constructive sale price) is amended by adding at the end thereof the following new paragraphs: “(3) Fair market price in 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, 68A Stat. 369. 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 68A Stat. 801; 72 Stat. 1306. 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) Fair market price in 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 subsection (a) shall apply with respect to articles sold after December 31, 1969. Subtitle C— Miscellaneous Administrative Provisions SEC. 941. FILING REQUIREMENTS. (a) In 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, 676. exemption for such spouse under section 151(e). “(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 section 68A Stat. 42. 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. (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, “(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) Effective 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 Pay Tax.— Section 6651 (relating to failure to 68A Stat. 821. file tax return) is amended to read as follows: “SEC. 6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX. “(a) Addition to the Tax.— In 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 6001, 5001, 5701, 5801. chapter 51 (relating to distilled spirits, wines, 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 exceeding 25 percent in the aggregate; “(2) To pay the amount 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 time 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 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; 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 willful 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 Net Amount Due.— 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 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) Amount of tax shown more than amount required to 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 shall not apply to any failure to file a declaration of estimated 26 USC 6015. tax required by section 6015 or to pay any estimated tax required to be 82 Stat. 260. 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: “In 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) Conforming Amendments.— (1) Section 3121(k)(1)(F)(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”. (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”. (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 68A Stat. 822. 26 USC 6653. 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 31, 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 Amendment.— Section 6015(f) 68A Stat. 738. (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 68A Stat. 784; 80 Stat. 1137. property exempt from levy) is amended by adding at the end thereof the following new paragraph: “(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) Interest on Underpayment.— Notwithstanding section 6601 of the Internal Revenue Code of 1954, in the case of any taxable year 26 USC 6601. 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. 260. 26 USC 6655. 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. 68A Stat. 879. 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 USC prec. title 1. the 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 Office.— The term of office of any judge of the Tax Court shall expire 15 years after he takes office.” SEC. 953. SALARY. 68A Stat. 879; 78 Stat. 434. Section 7443(c) (relating to salaries of Tax Court judges) is amended to read as follows: “(c) 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 62 Stat. 897; 78 Stat. 434. 80 Stat. 476. 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) Retirement.— “(1) Any judge shall retire upon attaining the age of 70. “(2) Any judge who has attained 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. 80 Stat. 571. 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.” (b) Subsection (d) of such section (relating to retired pay) is amended to read as follows: “(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 salary 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 months, 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 68A Stat. 882. 26 USC 7447. (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 80 Stat. 564. 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 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.” (e) 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. (a) 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. In 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 80 Stat. 567. 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 80 Stat. 409. 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. Post, p. 734. 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. It 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.” SEC. 957. TAX DISPUTES INVOLVING $1,000 OR LESS. (a) Part II of subchapter C of chapter 76 (relating to Tax Court 68A Stat. 884. 26 USC 7451–7463. procedure) is amended by renumbering section 7463 as 7464, and by 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 Tax 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 of 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 in 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:” SEC. 958. COMMISSIONERS. 68A Stat. 885. 26 USC 7456. 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 read as follows: “SEC. 7483. NOTICE OF APPEAL. “Review 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) 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: “(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 Ante, p. 733. 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 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) (1) 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.” (j) 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 Ante, p. 730. 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-ter’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. 730–735. 955, 956, 958, and 960 (c), (d), (e), (g), and (j) shall take effect on 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 Act 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 section Ante, p. 730. 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 Ante, p. 730. the Tax Court and gives notice to the President within the time prescribed 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 judge 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. (e) The 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. In 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 Federal 28 USC app. Ante, p. 734. Rules of Appellate Procedure or by section 7483 of the Internal Revenue Code of 1954, as in effect at the time the decision of the Tax Court was entered.

8. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 § 955(b)(1) · 83 Stat. 487

   1. Substituted · 26 U.S.C. § 7448(r)

      Pub. L. 91–172, § 955(b)(1), (4), substituted “civil service retirement laws” for “Civil Service Retirement Act”

   2. Substituted · 26 U.S.C. § 7448(r)

      Pub. L. 91–172, § 955(b)(1), (4), substituted “an election filed under section 7447(e)” for “a waiver filed under section 7447(g)(3)”

   Source evidence

   Code amendment note
   Subsec. (r). Pub. L. 91–172, § 955(b)(1), (4), substituted “civil service retirement laws” for “Civil Service Retirement Act” and substituted “an election filed under section 7447(e)” for “a waiver filed under section 7447(g)(3)”.

   Enacted provision · exact public law section
   (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”.

9. 1971

   Pub. L. 92–41 § 4(b) · 85 Stat. 97

   1. Inserted · 26 U.S.C. § 7448(m)

      Pub. L. 92–41 inserted “(whether judge’s salary or compensation for other allowable service)” and “(including periods in which he received retired pay under section 7447(d))” after “average annual salary” and “judicial service”, respectively

   2. Substituted · 26 U.S.C. § 7448(m)

      Pub. L. 92–41 substituted “or for any other prior allowable service during the period of 5 consecutive years in which he received the largest such average annual salary, multiplied by the sum of his years of such judicial service” for “and any other prior allowable service during the last 5 years of such service prior to his death, or prior to his receiving retired pay under section 7447(d), whichever first occurs, multiplied by the sum of his years of judicial service”

   Source evidence

   Code amendment note
   Subsec. (m). Pub. L. 92–41 inserted “(whether judge’s salary or compensation for other allowable service)” and “(including periods in which he received retired pay under section 7447(d))” after “average annual salary” and “judicial service”, respectively, and substituted “or for any other prior allowable service during the period of 5 consecutive years in which he received the largest such average annual salary, multiplied by the sum of his years of such judicial service” for “and any other prior allowable service during the last 5 years of such service prior to his death, or prior to his receiving retired pay under section 7447(d), whichever first occurs, multiplied by the sum of his years of judicial service”.

   Enacted provision · exact public law section
   (b) Section 7448(m) of such Code (relating to computation of 75 Stat. 796. annuities of widows of Tax Court judges) is amended by striking out “l¼ percent of the average annual salary received by such judge for judicial service and any other prior allowable service during the last 5 years of such service prior to his death, or prior to his receiving retired pay under section 7447(d), whichever first occurs, multiplied by the sum of his years of judicial service,” and inserting in lieu thereof “1¼ percent of the average annual salary (whether judge’s salary or compensation for other allowable service) received by such judge for judicial service (including periods in which he received retired pay under section 7447(d)) or for any other prior allowable 83 Stat. 730. service during the period of 5 consecutive years in which he received the largest such average annual salary, multiplied by the sum of his years of such judicial service,”.

10. 1976

    Pub. L. 94–455 § 1906(a)(46)(F) · 90 Stat. 1520

    Substituted · 26 U.S.C. § 7448

    Pub. L. 94–455, § 1906(a)(46)(F), substituted “surviving spouses” for “widows” in section catchline

    Source evidence

    Code amendment note
    Pub. L. 94–455, § 1906(a)(46)(F), substituted “surviving spouses” for “widows” in section catchline.

    Enacted provision · exact public law section
    (F) The section heading for section 7448 is amended by striking out “WIDOWS” and inserting in lieu thereof “SURVIVING SPOUSES”.

11. 1976

    Pub. L. 94–455 § 1906(a)(46)(A) · 90 Stat. 1520

    1. Substituted · 26 U.S.C. § 7448(a)(6)

       Pub. L. 94–455, § 1906(a)(46)(A), substituted “The term ‘surviving spouse’ means a surviving spouse of” for “The term ‘widow’ means a surviving wife of”

    2. Substituted · 26 U.S.C. § 7448(a)(6)

       Pub. L. 94–455, § 1906(a)(46)(A), substituted “a parent of issue” for “the mother of issue”

    Source evidence

    Code amendment note
    Subsec. (a)(6). Pub. L. 94–455, § 1906(a)(46)(A), substituted “The term ‘surviving spouse’ means a surviving spouse of” for “The term ‘widow’ means a surviving wife of” and “a parent of issue” for “the mother of issue”.

    Enacted provision · exact public law section
    (A) Subsection (a)(6) of section 7448 (relating to annuities to widows and dependent children of Tax Court judges) is amended— (i) by striking out “The term ‘widow’ means a surviving wife of,” and inserting in lieu thereof “The term ‘surviving spouse’ means a surviving spouse of”; and (ii) by striking out “the mother of issue” and inserting in lieu thereof “a parent of issue”.

12. 1976

    Pub. L. 94–455 § 1906(a)(46)(E) · 90 Stat. 1520

    Substituted · 26 U.S.C. § 7448(d)

    Pub. L. 94–455, § 1906(a)(46)(E), substituted “surviving spouse” for “widow” wherever appearing

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 94–455, § 1906(a)(46)(E), substituted “surviving spouse” for “widow” wherever appearing.

    Enacted provision · exact public law section
    (E) Sections 7448 (d), (j), (m), (n), (o), and (q) are each amended by striking out “widow” each place it appears and inserting in lieu thereof “surviving spouse”.

13. 1976

    Pub. L. 94–455 § 1906(a)(46)(B) · 90 Stat. 1520

    1. Substituted · 26 U.S.C. § 7448(h)

       Pub. L. 94–455, § 1906(a)(46)(B), (C), substituted “a surviving spouse” for “a widow”

    2. Substituted · 26 U.S.C. § 7448(h)

       Pub. L. 94–455, § 1906(a)(46)(B), (C), substituted “such surviving spouse” for “such widow”

    3. Substituted · 26 U.S.C. § 7448(h)

       Pub. L. 94–455, § 1906(a)(46)(B), (C), substituted “surviving spouse’s” for “widow’s”

    4. Substituted · 26 U.S.C. § 7448(h)

       Pub. L. 94–455, § 1906(a)(46)(B), (C), substituted “surviving spouse” for “surviving widow or widower”

    5. Substituted · 26 U.S.C. § 7448(h)

       Pub. L. 94–455, § 1906(a)(46)(B), (C), substituted “such spouse” for “she”

    6. Substituted · 26 U.S.C. § 7448(h)

       Pub. L. 94–455, § 1906(a)(46)(B), (C), substituted “surviving such spouse” for “surviving her”

    Source evidence

    Code amendment note
    Subsec. (h). Pub. L. 94–455, § 1906(a)(46)(B), (C), substituted “a surviving spouse” for “a widow”, “such surviving spouse” for “such widow”, “surviving spouse’s” for “widow’s”, “surviving spouse” for “surviving widow or widower”, “such spouse” for “she” and “surviving such spouse” for “surviving her”.

    Enacted provision · exact public law section
    (B) Section 7448(h) is amended— (i) by striking out “surviving widow or widower” and inserting in lieu thereof “surviving spouse”; (ii) by striking out “such widow” each place it appears and inserting in lieu thereof “such surviving spouse”; (iii) by striking out “a widow” each place it appeal’s and inserting in lieu thereof “a surviving spouse”; (iv) by striking out “widow’s” each place it appears and inserting in lieu thereof “surviving spouse’s”; and (v) by striking out “surviving her” and inserting hi lieu thereof “surviving such spouse”.

14. 1976

    Pub. L. 94–455 § 1906(a)(46)(E) · 90 Stat. 1520

    Substituted · 26 U.S.C. § 7448(j); 26 U.S.C. § 7448(m); 26 U.S.C. § 7448(n)

    Pub. L. 94–455, § 1906(a)(46)(E), substituted “surviving spouse” for “widow” wherever appearing

    Source evidence

    Code amendment note
    Subsecs. (j), (m), (n). Pub. L. 94–455, § 1906(a)(46)(E), substituted “surviving spouse” for “widow” wherever appearing.

    Enacted provision · exact public law section
    (E) Sections 7448 (d), (j), (m), (n), (o), and (q) are each amended by striking out “widow” each place it appears and inserting in lieu thereof “surviving spouse”.

15. 1976

    Pub. L. 94–455 § 1906(a)(46)(C) · 90 Stat. 1520

    1. Substituted · 26 U.S.C. § 7448(o)

       Pub. L. 94–455, § 1906(a)(46)(C), (D), (E), substituted “surviving spouse” for “widow”

    2. Substituted · 26 U.S.C. § 7448(o)

       Pub. L. 94–455, § 1906(a)(46)(C), (D), (E), substituted “such spouse” for “she”

    3. Substituted · 26 U.S.C. § 7448(o)

       Pub. L. 94–455, § 1906(a)(46)(C), (D), (E), substituted “such spouse’s” for “her”

    Source evidence

    Code amendment note
    Subsec. (o). Pub. L. 94–455, § 1906(a)(46)(C), (D), (E), substituted “surviving spouse” for “widow”, “such spouse” for “she” and “such spouse’s” for “her”.

    Enacted provision · exact public law section
    (C) Sections 7448 (h) and (o) are each amended by striking 26 USC 7448. out “she” and inserting in lieu thereof “such spouse”.

16. 1976

    Pub. L. 94–455 § 1906(a)(46)(E) · 90 Stat. 1520

    Substituted · 26 U.S.C. § 7448(q)

    Pub. L. 94–455, § 1906(a)(46)(E), substituted “surviving spouse” for “widow”

    Source evidence

    Code amendment note
    Subsec. (q). Pub. L. 94–455, § 1906(a)(46)(E), substituted “surviving spouse” for “widow”.

    Enacted provision · exact public law section
    (E) Sections 7448 (d), (j), (m), (n), (o), and (q) are each amended by striking out “widow” each place it appears and inserting in lieu thereof “surviving spouse”.

17. 1982

    Pub. L. 97–362 § 105(a) · 96 Stat. 1726

    1. Substituted · 26 U.S.C. § 7448(m)

       Pub. L. 97–362, § 105(a), substituted “3 consecutive years” for “5 consecutive years”

    2. Substituted · 26 U.S.C. § 7448(m)

       Pub. L. 97–362, § 105(a), substituted “40 percent” for “37½ percent”

    Source evidence

    Code amendment note
    Subsec. (m). Pub. L. 97–362, § 105(a), substituted “3 consecutive years” for “5 consecutive years”, and “40 percent” for “37½ percent”.

    Enacted provision · exact public law section
    (a) Computation of Annuities.— Subsection (m) of section 7448 26 USC 7448. (relating to computation of annuities) is amended— (1) by striking out “5 consecutive years” and inserting in lieu thereof “3 consecutive years”, and (2) by striking out “37½” and inserting in lieu thereof “40”.

18. 1982

    Pub. L. 97–362 § 105(b) · 96 Stat. 1726

    1. Added · 26 U.S.C. § 7448(s); 26 U.S.C. § 7448(t)

       Pub. L. 97–362, § 105(b), added subsec. (s)

    2. Redesignated · 26 U.S.C. § 7448(s); 26 U.S.C. § 7448(t)

       Pub. L. 97–362, § 105(b), redesignated former subsec. (s) as (t)

    Source evidence

    Code amendment note
    Subsecs. (s), (t). Pub. L. 97–362, § 105(b), added subsec. (s) and redesignated former subsec. (s) as (t).

    Enacted provision · exact public law section
    (b) 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) 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.”

19. 1984

    Pub. L. 98–216 § 3(c)(1) · 98 Stat. 3

    Substituted · 26 U.S.C. § 7448(p)

    Pub. L. 98–216 substituted “President” for “Bureau of the Budget”

    Source evidence

    Code amendment note
    Subsec. (p). Pub. L. 98–216 substituted “President” for “Bureau of the Budget”.

    Enacted provision · exact public law section
    (1) In section 7448(d), strike out “Bureau of the Budget” and substitute “President”.

20. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 div. A title IV § 462(a) · 98 Stat. 494

    1. Substituted · 26 U.S.C. § 7448(h)(2)

       Pub. L. 98–369,§ 462(a)(1), substituted “$4,644” for “$900”

    2. Substituted · 26 U.S.C. § 7448(h)(2)

       Pub. L. 98–369,§ 462(a)(1), substituted “$1,548” for “$360”

    Source evidence

    Code amendment note
    Subsec. (h)(2). Pub. L. 98–369,§ 462(a)(1), substituted “$4,644” for “$900” and “$1,548” for “$360”.

    Enacted provision · exact public law section
    (a) Entitlement to Annuity.— Subsection (h) of section 7448 (relating to entitlement to annuity) is amended— (1) by striking out “$900 per year divided by the number of such children or $360 per year,” in paragraph (2) and inserting in lieu thereof “$4,644 per year divided by the number of such children or $1,548 per year,”; and (2) by striking out “$480 per year” in paragraph (3) and inserting in lieu thereof “$5,580 per year divided by the number of such children or $1,860 per year, whichever is lesser”.

21. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 462(a)(2) · 98 Stat. 494

    Substituted · 26 U.S.C. § 7448(h)(3)

    Pub. L. 98–369, § 462(a)(2), substituted “$5,580 per year divided by the number of such children or $1,860 per year, whichever is lesser” for “$480 per year”

    Source evidence

    Code amendment note
    Subsec. (h)(3). Pub. L. 98–369, § 462(a)(2), substituted “$5,580 per year divided by the number of such children or $1,860 per year, whichever is lesser” for “$480 per year”.

    Enacted provision · exact public law section
    (2) by striking out “$480 per year” in paragraph (3) and inserting in lieu thereof “$5,580 per year divided by the number of such children or $1,860 per year, whichever is lesser”.

22. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1559(a)(1)(A) · 100 Stat. 2085

    1. Substituted · 26 U.S.C. § 7448(c)

       Pub. L. 99–514, § 1559(a)(1)(A), (2)(A), substituted “Survivors annuity fund” for “Salary deductions” in heading

    2. Inserted · 26 U.S.C. § 7448(c)

       Pub. L. 99–514, § 1559(a)(1)(A), (2)(A), inserted par. (1) designation and heading “Salary deductions” before existing text, realigned margin of text

    3. Substituted · 26 U.S.C. § 7448(c)

       Pub. L. 99–514, § 1559(a)(1)(A), (2)(A), substituted “3.5 percent” for “3 percent”

    4. Added · 26 U.S.C. § 7448(c)

       Pub. L. 99–514, § 1559(a)(1)(A), (2)(A), added par. (2)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 99–514, § 1559(a)(1)(A), (2)(A), substituted “Survivors annuity fund” for “Salary deductions” in heading, inserted par. (1) designation and heading “Salary deductions” before existing text, realigned margin of text and substituted “3.5 percent” for “3 percent”, and added par. (2).

    Enacted provision · exact public law section
    (A) Subsection (c) of section 7448 (relating to salary deductions) is amended by striking out “3 percent” and inserting in lieu thereof “3.5 percent”.

23. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1559(a)(1)(B) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 7448(d)

    Pub. L. 99–514, § 1559(a)(1)(B), substituted “3.5 percent” for second reference to “3 percent”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 99–514, § 1559(a)(1)(B), substituted “3.5 percent” for second reference to “3 percent”.

    Enacted provision · exact public law section
    (B) Subsection (d) of section 7448 (relating to deposits in survivors annuity fund) is amended by striking out “3 percent” the second place it appears and inserting in lieu thereof “3.5 percent”.

24. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1559(c) · 100 Stat. 2085

    Struck and inserted · 26 U.S.C. § 7448(g)

    Pub. L. 99–514, § 1559(c), struck out “of service” after “Termination” in heading and inserted “or if any judge ceases to be married after making the election under subsection (b) and revokes (in a writing filed as provided in subsection (b)) such election” in text

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 99–514, § 1559(c), struck out “of service” after “Termination” in heading and inserted “or if any judge ceases to be married after making the election under subsection (b) and revokes (in a writing filed as provided in subsection (b)) such election” in text.

    Enacted provision · exact public law section
    (c) Authority To Elect Termination of Participation in Survivor Annuity Program.— (1) In general.— Subsection (g) of section 7448 is amended by inserting “or if any judge ceases to be married after making the election under subsection (b) and revokes (in a writing filed as provided in subsection (b)) such election” after “1939”. (2) Conforming amendment.— The subsection heading for such subsection (g) is amended by striking out “of Service”.

25. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1559(a)(2)(B) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 7448(h)

    Pub. L. 99–514, § 1559(a)(2)(B), substituted “subsection (c)(1)” for “subsection (c)” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (h). Pub. L. 99–514, § 1559(a)(2)(B), substituted “subsection (c)(1)” for “subsection (c)” in introductory provisions.

    Enacted provision · exact public law section
    (B) Conforming amendment.— Subsection (h) of section 7448 is amended by striking out “subsection (c)” and inserting in lieu thereof “subsection (c)(1)”.

26. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1559(b)(1)(B) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 7448(h)

    Pub. L. 99–514, § 1559(b)(1)(B), substituted “or such surviving spouse’s remarriage before attaining age 55” for “or remarriage” in second sentence

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 1559(b)(1)(B), substituted “or such surviving spouse’s remarriage before attaining age 55” for “or remarriage” in second sentence.

    Enacted provision · exact public law section
    (B) Annuity to terminate on remarriage only if spouse not 55.— The second sentence of section 7448(h) is amended by striking out “or remarriage” and inserting in lieu thereof “or such surviving spouse’s remarriage before attaining age 55”.

27. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1559(b)(2)(A) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 7448(h)(2)

    Pub. L. 99–514, § 1559(b)(2)(A), substituted “the lesser of—

    Source evidence

    Code amendment note
    Subsec. (h)(2). Pub. L. 99–514, § 1559(b)(2)(A), substituted “the lesser of—

    “(A) 10 percent of the average annual salary of such judge (determined in accordance with subsection (m)), or “(B) 20 percent of such average annual salary, divided by the number of such children; or” for “one-half the amount of the annuity of such surviving spouse, but not to exceed $4,644 per year divided by the number of such children or $1,548 per year, whichever is lesser; or”.

    Enacted provision · exact public law section
    (A) Annuity where surviving spouse.— Paragraph (2) of section 7448(h) (relating to entitlement to annuity) is amended by striking out all that follows “equal to” and inserting in lieu thereof the following: “the lesser of— “(A) 10 percent of the average annual salary of such judge (determined in accordance with subsection (m)), or “(B) 20 percent of such average annual salary, divided by the number of such children; or”.

28. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1559(b)(2)(B) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 7448(h)(3)

    Pub. L. 99–514, § 1559(b)(2)(B), substituted “the lesser of—

    Source evidence

    Code amendment note
    Subsec. (h)(3). Pub. L. 99–514, § 1559(b)(2)(B), substituted “the lesser of—

    “(A) 20 percent of the average annual salary of such judge (determined in accordance with subsection (m)), or “(B) 40 percent of such average annual salary, divided by the number of such children” for “the amount of the annuity to which such surviving spouse would have been entitled under paragraph (2) of this subsection had such spouse survived, but not to exceed $5,580 per year divided by the number of such children or $1,860 per year, whichever is lesser”.

    Enacted provision · exact public law section
    (B) Annuity where no surviving spouse.— Paragraph (3) of section 7448(h) is amended by striking out all that follows “equal to” and inserting in lieu thereof the following: “the lesser of— (A) 20 percent of the average annual salary of such judge (determined in accordance with subsection (m)), or (B) 40 percent of such average annual salary, divided by the number of such children.”

29. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1559(b)(1)(A) · 100 Stat. 2085

    1. Substituted · 26 U.S.C. § 7448(m)

       Pub. L. 99–514, § 1559(b)(1)(A), substituted “1.5 percent” for “1¼ percent”

    2. Substituted · 26 U.S.C. § 7448(m)

       Pub. L. 99–514, § 1559(b)(1)(A), substituted “except that such annuity shall not exceed an amount equal to 50 percent of such average annual salary, nor be less than an amount equal to 25 percent of such average annual salary, and shall be further reduced in accordance with subsection (d) (if applicable)” for “but such annuity shall not exceed 40 percent of such average annual salary and shall be further reduced in accordance with subsection (d), if applicable”

    Source evidence

    Code amendment note
    Subsec. (m). Pub. L. 99–514, § 1559(b)(1)(A), substituted “1.5 percent” for “1¼ percent” and “except that such annuity shall not exceed an amount equal to 50 percent of such average annual salary, nor be less than an amount equal to 25 percent of such average annual salary, and shall be further reduced in accordance with subsection (d) (if applicable)” for “but such annuity shall not exceed 40 percent of such average annual salary and shall be further reduced in accordance with subsection (d), if applicable”.

    Enacted provision · exact public law section
    (A) Increase in annuity.— Subsection (m) of section 7448 (relating to computation of annuities) is amended— (i) by striking out “1¼ percent” and inserting in lieu thereof “1.5 percent”, and (ii) by striking out “but such annuity shall not” and all that follows down through the end thereof and inserting in lieu thereof “except that such annuity shall not exceed an amount equal to 50 percent of such average annual salary, nor be less than an amount equal to 25 percent of such average annual salary, and shall be further reduced in accordance with subsection (d) (if applicable).”

30. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1557(c) · 100 Stat. 2085

    Inserted · 26 U.S.C. § 7448(m)

    Pub. L. 99–514, § 1557(c), inserted last sentence

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 1557(c), inserted last sentence.

    Enacted provision · exact public law section
    (c) High 3 Years of Salary Must Be During Period When Election To Receive Retired Pay Is Not In Effect.— Subsection (m) of section 7448 (relating to computation of annuities) is amended by adding at the end thereof the following new sentence: “In determining the period of 3 consecutive years referred to in the preceding sentence, there may not be taken into account any period for which an election under section 7447(f)(4) is in effect.”

31. 2006

    Pub. L. 109–280 § 854(c)(3) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448

    Pub. L. 109–280, § 854(c)(3), which directed amendment of subsec. (u) of this section by inserting “or special trial judge” after “judge” and “or special trial judge’s” after “judge’s” wherever appearing, could not be executed because no subsec. (u) has been enacted

    Source evidence

    Code amendment note
    Pub. L. 109–280, § 854(c)(3), which directed amendment of subsec. (u) of this section by inserting “or special trial judge” after “judge” and “or special trial judge’s” after “judge’s” wherever appearing, could not be executed because no subsec. (u) has been enacted.

    Enacted provision · exact public law section
    (3) Subsections (c)(1), (d), (f), (g), (h), (j), (m), (n), and (u) of section 7448 of such Code, as amended by this Act, are each amended— (A) by inserting “or special trial judge” after “judge” each place it appears other than in the phrase “chief judge”, and (B) by inserting “or special trial judge’s” after “judge’s” each place it appears.

32. 2006

    Pub. L. 109–280 § 854(c)(1) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448

    Pub. L. 109–280, § 854(c)(1), inserted “and special trial judges” after “children of judges” in section catchline

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–280, § 854(c)(1), inserted “and special trial judges” after “children of judges” in section catchline.

    Enacted provision · exact public law section
    (1) The heading of section 7448 of such Code is amended by inserting “and special trial judges” after “judges”.

33. 2006

    Pub. L. 109–280 § 854(a) · 120 Stat. 780

    1. Added · 26 U.S.C. § 7448(a)(5)(9)

       Pub. L. 109–280, § 854(a), which directed amendment of subsec. (a) by adding pars. (5) and (6)

    2. Redesignated · 26 U.S.C. § 7448(a)(5)(9)

       Pub. L. 109–280, § 854(a), which directed amendment of subsec. (a) by redesignating former pars. (5) to (8) as (7) to (10), respectively, was executed by adding pars. (5) and (6)

    3. Redesignated · 26 U.S.C. § 7448(a)(5)(9)

       Pub. L. 109–280, § 854(a), which directed amendment of subsec. (a) by redesignating former pars. (5) to (7) as (7) to (9), respectively, to reflect the probable intent of Congress. Subsec. (a) did not contain a par. (8) prior to the amendment

    Source evidence

    Code amendment note
    Subsec. (a)(5) to (9). Pub. L. 109–280, § 854(a), which directed amendment of subsec. (a) by adding pars. (5) and (6) and redesignating former pars. (5) to (8) as (7) to (10), respectively, was executed by adding pars. (5) and (6) and redesignating former pars. (5) to (7) as (7) to (9), respectively, to reflect the probable intent of Congress. Subsec. (a) did not contain a par. (8) prior to the amendment.

    Enacted provision · exact public law section
    (a) Definitions.— Section 7448(a) of the Internal Revenue Code of 1986 (relating to definitions), as amended by this Act, is amended by redesignating paragraphs (5), (6), (7), and (8) as paragraphs (7), (8), (9), and (10), respectively, and by inserting after paragraph (4) the following new paragraphs: “(5) The term ‘special trial judge’ means a judicial officer appointed pursuant to section 7443A, including any individual receiving an annuity under chapter 83 or 84 of title 5, United States Code, whether or not performing judicial duties under section 7443B. “(6) The term ‘special trial judge’s salary’ means the salary of a special trial judge received under section 7443A(d), any amount received as an annuity under chapter 83 or 84 of title 5, United States Code, and compensation received under section 7443B.” .

34. 2006

    Pub. L. 109–280 § 854(b) · 120 Stat. 780

    1. Amended · 26 U.S.C. § 7448(b)

       Pub. L. 109–280, § 854(b), reenacted subsec. heading without change, designated existing provisions as par. (1)

    2. Inserted · 26 U.S.C. § 7448(b)

       Pub. L. 109–280, § 854(b), reenacted subsec. heading without change, inserted par. heading, realigned margins

    3. Added · 26 U.S.C. § 7448(b)

       Pub. L. 109–280, § 854(b), reenacted subsec. heading without change, added par. (2)

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 109–280, § 854(b), reenacted subsec. heading without change, designated existing provisions as par. (1), inserted par. heading, realigned margins, and added par. (2).

    Enacted provision · exact public law section
    (b) Election.— Subsection (b) of section 7448 of such 26 USC 7448. Code (relating to annuities to surviving spouses and dependent children of judges) is amended— (1) by striking the subsection heading and inserting the following: “(b) Election.— “(1) Judges.— ” , (2) by moving the text 2 ems to the right, and (3) by adding at the end the following new paragraph: “(2) Special trial judges.— Any special trial judge may by written election filed with the chief judge bring himself or herself within the purview of this section. Deadline. Such election shall be filed not later than the later of 6 months after— “(A) 6 months after the date of the enactment of this paragraph, “(B) the date the judge takes office, or “(C) the date the judge marries.” .

35. 2006

    Pub. L. 109–280 § 854(c)(4)(A) · 120 Stat. 780

    Substituted · 26 U.S.C. § 7448(c)(1)

    Pub. L. 109–280, § 854(c)(4)(A), substituted “Tax Court judicial officers” for “Tax Court judges”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 109–280, § 854(c)(4)(A), substituted “Tax Court judicial officers” for “Tax Court judges”.

    Enacted provision · exact public law section
    (A) in paragraph (1), by striking “Tax Court judges” and inserting “Tax Court judicial officers”, and

36. 2006

    Pub. L. 109–280 § 854(c)(3) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448(c)(1)

    Pub. L. 109–280, § 854(c)(3), inserted “or special trial judge” after “judge” and “or special trial judge’s” after “judge’s” wherever appearing

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–280, § 854(c)(3), inserted “or special trial judge” after “judge” and “or special trial judge’s” after “judge’s” wherever appearing.

    Enacted provision · exact public law section
    (3) Subsections (c)(1), (d), (f), (g), (h), (j), (m), (n), and (u) of section 7448 of such Code, as amended by this Act, are each amended— (A) by inserting “or special trial judge” after “judge” each place it appears other than in the phrase “chief judge”, and (B) by inserting “or special trial judge’s” after “judge’s” each place it appears.

37. 2006

    Pub. L. 109–280 § 854(c)(4)(B)(i) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448(c)(2)(A)

    Pub. L. 109–280, § 854(c)(4)(B)(i), inserted “and section 7443A(d)” after “(a)(4)”

    Source evidence

    Code amendment note
    Subsec. (c)(2)(A). Pub. L. 109–280, § 854(c)(4)(B)(i), inserted “and section 7443A(d)” after “(a)(4)”.

    Enacted provision · exact public law section
    (i) in subparagraph (A), by inserting “and section 7443A(d)” after “(a)(4)”, and

38. 2006

    Pub. L. 109–280 § 854(c)(4)(B)(ii) · 120 Stat. 780

    Substituted · 26 U.S.C. § 7448(c)(2)(B)

    Pub. L. 109–280, § 854(c)(4)(B)(ii), substituted “subsection (a)(4) and (a)(6)” for “subsection (a)(4)”

    Source evidence

    Code amendment note
    Subsec. (c)(2)(B). Pub. L. 109–280, § 854(c)(4)(B)(ii), substituted “subsection (a)(4) and (a)(6)” for “subsection (a)(4)”.

    Enacted provision · exact public law section
    (ii) in subparagraph (B), by striking “subsection (a)(4)” and inserting “subsection (a)(4) and (a)(6)”.

39. 2006

    Pub. L. 109–280 § 854(c)(3) · 120 Stat. 780

    1. Inserted · 26 U.S.C. § 7448(d)

       Pub. L. 109–280, § 854(c)(3), inserted “or special trial judge” after “judge” wherever appearing except after “chief judge”

    2. Inserted · 26 U.S.C. § 7448(d)

       Pub. L. 109–280, § 854(c)(3), inserted “or special trial judge’s” after “judge’s”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 109–280, § 854(c)(3), inserted “or special trial judge” after “judge” wherever appearing except after “chief judge” and inserted “or special trial judge’s” after “judge’s”.

    Enacted provision · exact public law section
    (3) Subsections (c)(1), (d), (f), (g), (h), (j), (m), (n), and (u) of section 7448 of such Code, as amended by this Act, are each amended— (A) by inserting “or special trial judge” after “judge” each place it appears other than in the phrase “chief judge”, and (B) by inserting “or special trial judge’s” after “judge’s” each place it appears.

40. 2006

    Pub. L. 109–280 § 854(c)(3)(A) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448(f)(h)

    Pub. L. 109–280, § 854(c)(3)(A), inserted “or special trial judge” after “judge” wherever appearing

    Source evidence

    Code amendment note
    Subsecs. (f) to (h). Pub. L. 109–280, § 854(c)(3)(A), inserted “or special trial judge” after “judge” wherever appearing.

    Enacted provision · exact public law section
    (A) by inserting “or special trial judge” after “judge” each place it appears other than in the phrase “chief judge”, and

41. 2006

    Pub. L. 109–280 § 854(c)(3)(A) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448(f)(h)

    Pub. L. 109–280, § 854(c)(3)(A), inserted “or special trial judge” after “judge” wherever appearing except after “chief judge”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Subsec (j). Pub. L. 109–280, § 854(c)(3)(A), inserted “or special trial judge” after “judge” wherever appearing except after “chief judge”.

    Enacted provision · exact public law section
    (A) by inserting “or special trial judge” after “judge” each place it appears other than in the phrase “chief judge”, and

42. 2006

    Pub. L. 109–280 § 854(c)(5)(B) · 120 Stat. 780

    Substituted · 26 U.S.C. § 7448(j)(1)

    Pub. L. 109–280, § 854(c)(5)(B), substituted “paragraphs (8) and (9) of subsection (a)” for “subsections (a)(6) and (7)” in concluding provisions

    Source evidence

    Code amendment note
    Subsec. (j)(1). Pub. L. 109–280, § 854(c)(5)(B), substituted “paragraphs (8) and (9) of subsection (a)” for “subsections (a)(6) and (7)” in concluding provisions.

    Enacted provision · exact public law section
    (B) in the last sentence, by striking “subsections (a) (6) and (7)” and inserting “paragraphs (8) and (9) of subsection (a)”.

43. 2006

    Pub. L. 109–280 § 854(c)(5)(A) · 120 Stat. 780

    Substituted · 26 U.S.C. § 7448(j)(1)(A)

    Pub. L. 109–280, § 854(c)(5)(A), substituted “service, retired from such service under section 7447, or receiving any annuity under chapter 83 or 84 of title 5, United States Code,” for “service or retired from such service under section 7447”

    Source evidence

    Code amendment note
    Subsec. (j)(1)(A). Pub. L. 109–280, § 854(c)(5)(A), substituted “service, retired from such service under section 7447, or receiving any annuity under chapter 83 or 84 of title 5, United States Code,” for “service or retired from such service under section 7447”.

    Enacted provision · exact public law section
    (A) in subparagraph (A), by striking “service or retired” and inserting “service, retired”, and by inserting “, or receiving any annuity under chapter 83 or 84 of title 5, United States Code,” after “section 7447”, and

44. 2006

    Pub. L. 109–280 § 854(c)(6) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448(m)

    Pub. L. 109–280, § 854(c)(6), inserted “or any annuity under chapter 83 or 84 of title 5, United States Code” after “7447(d)”

    Source evidence

    Code amendment note
    Subsec. (m). Pub. L. 109–280, § 854(c)(6), inserted “or any annuity under chapter 83 or 84 of title 5, United States Code” after “7447(d)”.

    Enacted provision · exact public law section
    (6) Section 7448(m)(1) of such Code, as amended by this Act, is amended by inserting “or any annuity under chapter 83 or 84 of title 5, United States Code” after “7447(d)”.

45. 2006

    Pub. L. 109–280 § 854(c)(3) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448(m)

    Pub. L. 109–280, § 854(c)(3), inserted “or special trial judge’s” after “judge’s” and “or special trial judge” after “judge” in two places

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–280, § 854(c)(3), inserted “or special trial judge’s” after “judge’s” and “or special trial judge” after “judge” in two places.

    Enacted provision · exact public law section
    (3) Subsections (c)(1), (d), (f), (g), (h), (j), (m), (n), and (u) of section 7448 of such Code, as amended by this Act, are each amended— (A) by inserting “or special trial judge” after “judge” each place it appears other than in the phrase “chief judge”, and (B) by inserting “or special trial judge’s” after “judge’s” each place it appears.

46. 2006

    Pub. L. 109–280 § 854(c)(3)(A) · 120 Stat. 780

    Inserted · 26 U.S.C. § 7448(n)

    Pub. L. 109–280, § 854(c)(3)(A), (7), inserted “or special trial judge” after “judge” wherever appearing and “his years of service pursuant to any appointment under section 7443A,” after “of the Tax Court,”

    Source evidence

    Code amendment note
    Subsec. (n). Pub. L. 109–280, § 854(c)(3)(A), (7), inserted “or special trial judge” after “judge” wherever appearing and “his years of service pursuant to any appointment under section 7443A,” after “of the Tax Court,”.

    Enacted provision · exact public law section
    (A) by inserting “or special trial judge” after “judge” each place it appears other than in the phrase “chief judge”, and

47. 2006

    Pub. L. 109–280 § 851(a) · 120 Stat. 780

    Amended · 26 U.S.C. § 7448(s)

    Pub. L. 109–280, § 851(a), amended heading and text of subsec. (s) generally. Prior to amendment, text read as follows: “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.”

    Source evidence

    Code amendment note
    Subsec. (s). Pub. L. 109–280, § 851(a), amended heading and text of subsec. (s) generally. Prior to amendment, text read as follows: “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.”

    Enacted provision · exact public law section
    (a) In General.— Subsection (s) of section 7448 of the Internal Revenue Code of 1986 26 USC 7448. (relating to annuities to surviving spouses and dependent children of judges) is amended to read as follows: “(s) Increases in Survivor Annuities.— Each time that an increase is made under section 8340(b) of title 5, United States Code, in annuities payable under subchapter III of chapter 83 of that title, each annuity payable from the survivors annuity fund under this section shall be increased at the same time by the same percentage by which annuities are increased under such section 8340(b).” .

48. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 221(a)(116)(A) · 128 Stat. 4010

    Struck · 26 U.S.C. § 7448(a)(2)

    Pub. L. 113–295, § 221(a)(116)(A), struck out “or under section 1106 of the Internal Revenue Code of 1939” after “under section 7447” and “or pursuant to section 1106(d) of the Internal Revenue Code of 1939” after “pursuant to section 7447(c)”

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 113–295, § 221(a)(116)(A), struck out “or under section 1106 of the Internal Revenue Code of 1939” after “under section 7447” and “or pursuant to section 1106(d) of the Internal Revenue Code of 1939” after “pursuant to section 7447(c)”.

    Enacted provision · exact public law section
    (A) Paragraph (2) of section 7448(a) is amended— (i) by striking “or under section 1106 of the Internal Revenue Code of 1939”, and (ii) by striking “or pursuant to section 1106(d) of the Internal Revenue Code of 1939”.

    Effective date note
    Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

49. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 221(a)(116)(B) · 128 Stat. 4010

    1. Struck · 26 U.S.C. § 7448(g)

       Pub. L. 113–295, § 221(a)(116)(B), (C), struck out “or other than pursuant to section 1106 of the Internal Revenue Code of 1939” after “other than pursuant to the provisions of section 7447”

    2. Substituted · 26 U.S.C. § 7448(g)

       Pub. L. 113–295, § 221(a)(116)(B), (C), substituted “at 3 percent per annum” for “at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter”

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 113–295, § 221(a)(116)(B), (C), struck out “or other than pursuant to section 1106 of the Internal Revenue Code of 1939” after “other than pursuant to the provisions of section 7447” and substituted “at 3 percent per annum” for “at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter”.

    Enacted provision · exact public law section
    (B) Subsection (g) of section 7448 is amended by striking “or other than pursuant to section 1106 of the Internal Revenue Code of 1939”.

    Effective date note
    Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

50. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 221(a)(116)(C) · 128 Stat. 4010

    Substituted · 26 U.S.C. § 7448(j)(1); 26 U.S.C. § 7448(j)(2)

    Pub. L. 113–295, § 221(a)(116)(C), substituted “at 3 percent per annum” for “at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter”

    Source evidence

    Code amendment note
    Subsec. (j)(1), (2). Pub. L. 113–295, § 221(a)(116)(C), substituted “at 3 percent per annum” for “at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter”.

    Enacted provision · exact public law section
    (C) Subsections (g), (j)(1), and (j)(2) of section 7448 are each amended by striking “at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter” and inserting “at 3 percent per annum”.

    Effective date note
    Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

51. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(b)(51) · 132 Stat. 348

    Struck · 26 U.S.C. § 7448(a)(5)

    Pub. L. 115–141, § 401(b)(51), struck out “, whether or not performing judicial duties under section 7443B” after “United States Code”

    Source evidence

    Code amendment note
    Subsec. (a)(5). Pub. L. 115–141, § 401(b)(51), struck out “, whether or not performing judicial duties under section 7443B” after “United States Code”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

52. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(b)(52) · 132 Stat. 348

    Struck · 26 U.S.C. § 7448(a)(6)

    Pub. L. 115–141, § 401(b)(52), struck out “, and compensation received under section 7443B” after “United States Code”

    Source evidence

    Code amendment note
    Subsec. (a)(6). Pub. L. 115–141, § 401(b)(52), struck out “, and compensation received under section 7443B” after “United States Code”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

53. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(b)(53) · 132 Stat. 348

    Substituted · 26 U.S.C. § 7448(d)

    Pub. L. 115–141, § 401(b)(53), substituted “at 3 percent per annum” for “at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 115–141, § 401(b)(53), substituted “at 3 percent per annum” for “at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

54. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(327) · 132 Stat. 348

    Substituted · 26 U.S.C. § 7448(j)(1)(A)

    Pub. L. 115–141, § 401(a)(327), substituted “Code),” for “Code,),”

    Source evidence

    Code amendment note
    Subsec. (j)(1)(A). Pub. L. 115–141, § 401(a)(327), substituted “Code),” for “Code,),”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

55. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(328) · 132 Stat. 348

    Substituted · 26 U.S.C. § 7448(m)

    Pub. L. 115–141, § 401(a)(328), substituted “Code), and” for “Code, and”

    Source evidence

    Code amendment note
    Subsec. (m). Pub. L. 115–141, § 401(a)(328), substituted “Code), and” for “Code, and”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

56. 2022

    Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023

    Pub. L. 117–328 § 701(b)(2) · 136 Stat. 4459

    Added · 26 U.S.C. § 7448(a)(10)

    Pub. L. 117–328, § 701(b)(2), added par. (10)

    Source evidence

    Code amendment note
    Subsec. (a)(10). Pub. L. 117–328, § 701(b)(2), added par. (10).

    Enacted provision · exact public law section
    Sec. 701. The Secretary may use any appropriations made available to the Department of Agriculture in this Act to purchase new passenger motor vehicles, in addition to specific appropriations for this purpose, so long as the total number of vehicles purchased in fiscal year 2023 does not exceed the number of vehicles owned or leased in fiscal year 2018: Provided, Determination. That, prior to purchasing additional motor vehicles, the Secretary must determine that such vehicles are necessary for transportation safety, to reduce operational costs, and for the protection of life, property, and public safety: Provided further, Notification. Approval. Deadline. That the Secretary may not increase the Department of Agriculture’s fleet above the 2018 level unless the Secretary notifies in writing, and receives approval from, the Committees on Appropriations of both Houses of Congress within 30 days of the notification.

57. 2022

    Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023

    Pub. L. 117–328 § 702(b)(2) · 136 Stat. 4459

    Amended · 26 U.S.C. § 7448(b)(2)

    Pub. L. 117–328, § 702(b)(2), amended par. (2) generally. Prior to amendment, text read as follows: “Any special trial judge may by written election filed with the chief judge bring himself or herself within the purview of this section. Such election shall be filed not later than the later of 6 months after—

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 117–328, § 702(b)(2), amended par. (2) generally. Prior to amendment, text read as follows: “Any special trial judge may by written election filed with the chief judge bring himself or herself within the purview of this section. Such election shall be filed not later than the later of 6 months after—

    “(A) 6 months after the date of the enactment of this paragraph, “(B) the date the judge takes office, or “(C) the date the judge marries.”

    Enacted provision · exact public law section
    Sec. 702. Notwithstanding any other provision of this Act, the Secretary of Agriculture may transfer unobligated balances of discretionary funds appropriated by this Act or any other available unobligated discretionary balances that are remaining available of the Department of Agriculture to the Working Capital Fund for the acquisition of property, plant and equipment and for the improvement, delivery, and implementation of Department financial, and administrative information technology services, and other support systems necessary for the delivery of financial, administrative, and information technology services, including cloud adoption and migration, of primary benefit to the agencies of the Department of Agriculture, such transferred funds to remain available until expended: Provided, That none of the funds made available by this Act or any other Act shall be transferred to the Working Capital Fund without the prior approval of the agency administrator: Provided further, That none of the funds transferred to the Working Capital Fund pursuant to this section shall be available for obligation without written notification to and the prior approval of the Committees on Appropriations of both Houses of Congress: Provided further, That none of the funds appropriated by this Act or made available to the Department’s Working Capital Fund shall be available for obligation or expenditure to make any changes to the Department’s National Finance Center without written notification to and prior approval of the Committees on Appropriations of both Houses of Congress as required by section 716 of this Act: Provided further, That none of the funds appropriated by this Act or made available to the Department’s Working Capital Fund shall be available for obligation or expenditure to initiate, plan, develop, implement, or make any changes to remove or relocate any systems, missions, personnel, or functions of the offices of the Chief Financial Officer and the Chief Information Officer, co-located with or from the National Finance Center prior to written notification to and prior approval of the Committee on Appropriations of both Houses of Congress and in accordance with the requirements of section 716 of this Act: Provided further, That the National Finance Center Information Technology Services Division personnel and data center management responsibilities, and control of any functions, missions, and systems for current and future human resources management and integrated personnel and payroll systems (PPS) and functions provided by the Chief Financial Officer and the Chief Information Officer shall remain in the National Finance Center and under the management responsibility and administrative control of the National Finance Center: Provided further, That the Secretary of Agriculture and the offices of the Chief Financial Officer shall actively market to existing and new Departments and other government agencies National Finance Center shared services including, but not limited to, payroll, financial management, and human capital shared services and allow the National Finance Center to perform technology upgrades: Provided further, That of annual income amounts in the Working Capital Fund of the Department of Agriculture attributable to the amounts in excess of the true costs of the shared services provided by the National Finance Center and budgeted for the National Finance Center, the Secretary shall reserve not more than 4 percent for the replacement or acquisition of capital equipment, including equipment for the improvement, delivery, and implementation of financial, administrative, and information technology services, and other systems of the National Finance Center or to pay any unforeseen, extraordinary cost of the National Finance Center: Provided further, That none of the amounts reserved shall be available for obligation unless the Secretary submits written notification of the obligation to the Committees on Appropriations of both Houses of Congress: Provided further, Determination. That the limitations on the obligation of funds pending notification to Congressional Committees shall not apply to any obligation that, as determined by the Secretary, is necessary to respond to a declared state of emergency that significantly impacts the operations of the National Finance Center; or to evacuate employees of the National Finance Center to a safe haven to continue operations of the National Finance Center.

58. 2022

    Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023

    Pub. L. 117–328 § 701(c)(2)(A) · 136 Stat. 4459

    Substituted · 26 U.S.C. § 7448(d)

    Pub. L. 117–328, § 701(c)(2)(A), substituted “sections 8332 and 8411” for “section 8332”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 117–328, § 701(c)(2)(A), substituted “sections 8332 and 8411” for “section 8332”.

    Enacted provision · exact public law section
    Sec. 701. The Secretary may use any appropriations made available to the Department of Agriculture in this Act to purchase new passenger motor vehicles, in addition to specific appropriations for this purpose, so long as the total number of vehicles purchased in fiscal year 2023 does not exceed the number of vehicles owned or leased in fiscal year 2018: Provided, Determination. That, prior to purchasing additional motor vehicles, the Secretary must determine that such vehicles are necessary for transportation safety, to reduce operational costs, and for the protection of life, property, and public safety: Provided further, Notification. Approval. Deadline. That the Secretary may not increase the Department of Agriculture’s fleet above the 2018 level unless the Secretary notifies in writing, and receives approval from, the Committees on Appropriations of both Houses of Congress within 30 days of the notification.

59. 2022

    Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023

    Pub. L. 117–328 § 701(b)(1) · 136 Stat. 4459

    Amended · 26 U.S.C. § 7448(h)

    Pub. L. 117–328, § 701(b)(1), amended subsec. (h) generally. Prior to amendment, subsec. (h) related to surviving spouses and dependent children’s entitlement to annuity

    Source evidence

    Code amendment note
    Subsec. (h). Pub. L. 117–328, § 701(b)(1), amended subsec. (h) generally. Prior to amendment, subsec. (h) related to surviving spouses and dependent children’s entitlement to annuity.

    Enacted provision · exact public law section
    Sec. 701. The Secretary may use any appropriations made available to the Department of Agriculture in this Act to purchase new passenger motor vehicles, in addition to specific appropriations for this purpose, so long as the total number of vehicles purchased in fiscal year 2023 does not exceed the number of vehicles owned or leased in fiscal year 2018: Provided, Determination. That, prior to purchasing additional motor vehicles, the Secretary must determine that such vehicles are necessary for transportation safety, to reduce operational costs, and for the protection of life, property, and public safety: Provided further, Notification. Approval. Deadline. That the Secretary may not increase the Department of Agriculture’s fleet above the 2018 level unless the Secretary notifies in writing, and receives approval from, the Committees on Appropriations of both Houses of Congress within 30 days of the notification.

60. 2022

    Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023

    Pub. L. 117–328 § 701(b)(3) · 136 Stat. 4459

    1. Substituted · 26 U.S.C. § 7448(i)

       Pub. L. 117–328, § 701(b)(3), substituted “by chief judge” for “of dependency and disability” in heading

    2. Amended · 26 U.S.C. § 7448(i)

       Pub. L. 117–328, § 701(b)(3), designated existing provisions as par. (1)

    3. Inserted · 26 U.S.C. § 7448(i)

       Pub. L. 117–328, § 701(b)(3), inserted heading

    4. Added · 26 U.S.C. § 7448(i)

       Pub. L. 117–328, § 701(b)(3), added par. (2)

    Source evidence

    Code amendment note
    Subsec. (i). Pub. L. 117–328, § 701(b)(3), substituted “by chief judge” for “of dependency and disability” in heading, designated existing provisions as par. (1) and inserted heading, and added par. (2).

    Enacted provision · exact public law section
    Sec. 701. The Secretary may use any appropriations made available to the Department of Agriculture in this Act to purchase new passenger motor vehicles, in addition to specific appropriations for this purpose, so long as the total number of vehicles purchased in fiscal year 2023 does not exceed the number of vehicles owned or leased in fiscal year 2018: Provided, Determination. That, prior to purchasing additional motor vehicles, the Secretary must determine that such vehicles are necessary for transportation safety, to reduce operational costs, and for the protection of life, property, and public safety: Provided further, Notification. Approval. Deadline. That the Secretary may not increase the Department of Agriculture’s fleet above the 2018 level unless the Secretary notifies in writing, and receives approval from, the Committees on Appropriations of both Houses of Congress within 30 days of the notification.

61. 2022

    Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023

    Pub. L. 117–328 § 701(b)(4) · 136 Stat. 4459

    Amended · 26 U.S.C. § 7448(m)

    Pub. L. 117–328, § 701(b)(4), amended subsec. (m) generally. Prior to amendment, text read as follows: “The annuity of the surviving spouse of a judge or special trial judge electing under subsection (b) shall be an amount equal to the sum of (1) 1.5 percent of the average annual salary (whether judge’s or special trial judge’s salary or compensation for other allowable service) received by such judge or special trial judge for judicial service (including periods in which he received retired pay under section 7447(d) or any annuity under chapter 83 or 84 of title 5, United States Code) or for any other prior allowable service during the period of 3 consecutive years in which he received the largest such average annual salary, multiplied by the sum of his years of such judicial service, his years of prior allowable service as a Senator, Representative, Delegate, or Resident Commissioner in Congress, his years of prior allowable service performed as a member of the Armed Forces of the United States, and his years, not exceeding 15, of prior allowable service performed as a congressional employee (as defined in section 2107 of title 5 of the United States Code), and (2) three-fourths of 1 percent of such average annual salary multiplied by his years of any other prior allowable service, except that such annuity shall not exceed an amount equal to 50 percent of such average annual salary, nor be less than an amount equal to 25 percent of such average annual salary, and shall be further reduced in accordance with subsection (d) (if applicable). In determining the period of 3 consecutive years referred to in the preceding sentence, there may not be taken into account any period for which an election under section 7447(f)(4) is in effect.”

    Source evidence

    Code amendment note
    Subsec. (m). Pub. L. 117–328, § 701(b)(4), amended subsec. (m) generally. Prior to amendment, text read as follows: “The annuity of the surviving spouse of a judge or special trial judge electing under subsection (b) shall be an amount equal to the sum of (1) 1.5 percent of the average annual salary (whether judge’s or special trial judge’s salary or compensation for other allowable service) received by such judge or special trial judge for judicial service (including periods in which he received retired pay under section 7447(d) or any annuity under chapter 83 or 84 of title 5, United States Code) or for any other prior allowable service during the period of 3 consecutive years in which he received the largest such average annual salary, multiplied by the sum of his years of such judicial service, his years of prior allowable service as a Senator, Representative, Delegate, or Resident Commissioner in Congress, his years of prior allowable service performed as a member of the Armed Forces of the United States, and his years, not exceeding 15, of prior allowable service performed as a congressional employee (as defined in section 2107 of title 5 of the United States Code), and (2) three-fourths of 1 percent of such average annual salary multiplied by his years of any other prior allowable service, except that such annuity shall not exceed an amount equal to 50 percent of such average annual salary, nor be less than an amount equal to 25 percent of such average annual salary, and shall be further reduced in accordance with subsection (d) (if applicable). In determining the period of 3 consecutive years referred to in the preceding sentence, there may not be taken into account any period for which an election under section 7447(f)(4) is in effect.”

    Enacted provision · exact public law section
    Sec. 701. The Secretary may use any appropriations made available to the Department of Agriculture in this Act to purchase new passenger motor vehicles, in addition to specific appropriations for this purpose, so long as the total number of vehicles purchased in fiscal year 2023 does not exceed the number of vehicles owned or leased in fiscal year 2018: Provided, Determination. That, prior to purchasing additional motor vehicles, the Secretary must determine that such vehicles are necessary for transportation safety, to reduce operational costs, and for the protection of life, property, and public safety: Provided further, Notification. Approval. Deadline. That the Secretary may not increase the Department of Agriculture’s fleet above the 2018 level unless the Secretary notifies in writing, and receives approval from, the Committees on Appropriations of both Houses of Congress within 30 days of the notification.

62. 2022

    Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023

    Pub. L. 117–328 § 701(c)(2)(B) · 136 Stat. 4459

    Substituted · 26 U.S.C. § 7448(n)

    Pub. L. 117–328, § 701(c)(2)(B), substituted “sections 8332 and 8411” for “section 8332”

    Source evidence

    Code amendment note
    Subsec. (n). Pub. L. 117–328, § 701(c)(2)(B), substituted “sections 8332 and 8411” for “section 8332”.

    Enacted provision · exact public law section
    Sec. 701. The Secretary may use any appropriations made available to the Department of Agriculture in this Act to purchase new passenger motor vehicles, in addition to specific appropriations for this purpose, so long as the total number of vehicles purchased in fiscal year 2023 does not exceed the number of vehicles owned or leased in fiscal year 2018: Provided, Determination. That, prior to purchasing additional motor vehicles, the Secretary must determine that such vehicles are necessary for transportation safety, to reduce operational costs, and for the protection of life, property, and public safety: Provided further, Notification. Approval. Deadline. That the Secretary may not increase the Department of Agriculture’s fleet above the 2018 level unless the Secretary notifies in writing, and receives approval from, the Committees on Appropriations of both Houses of Congress within 30 days of the notification.

63. 2022

    Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2023

    Pub. L. 117–328 § 701(b)(5) · 136 Stat. 4459

    Added · 26 U.S.C. § 7448(u)

    Pub. L. 117–328, § 701(b)(5), added subsec. (u)

    Source evidence

    Code amendment note
    Subsec. (u). Pub. L. 117–328, § 701(b)(5), added subsec. (u).

    Enacted provision · exact public law section
    Sec. 701. The Secretary may use any appropriations made available to the Department of Agriculture in this Act to purchase new passenger motor vehicles, in addition to specific appropriations for this purpose, so long as the total number of vehicles purchased in fiscal year 2023 does not exceed the number of vehicles owned or leased in fiscal year 2018: Provided, Determination. That, prior to purchasing additional motor vehicles, the Secretary must determine that such vehicles are necessary for transportation safety, to reduce operational costs, and for the protection of life, property, and public safety: Provided further, Notification. Approval. Deadline. That the Secretary may not increase the Department of Agriculture’s fleet above the 2018 level unless the Secretary notifies in writing, and receives approval from, the Committees on Appropriations of both Houses of Congress within 30 days of the notification.

89 of 91 references resolved to an enrolled provision · 2 partial