Technical Corrections Act of 1982 (P.L. 97-448)

 

(1) EFFECTIVE DATE FOR AMENDMENT TO SECTION 21.--Paragraph (1) of section 101(f) of the Economic Recovery Tax Act of 1981 (relating to effective dates for rate cuts) is amended by inserting before the period at the end thereof the following: "; except that the amendment made by paragraph (3) of subsection (d) shall apply to taxable years ending after December 31, 1981".

(2) RATE REDUCTION TAX CREDIT.--Section 6428 (relating to 1981 rate reduction tax credit) is amended by adding at the end thereof the following new subsection:

 

"(1) INDIVIDUALS TO WHOM 50 PERCENT MAXIMUM RATE OR 20 PERCENT CAPITAL GAIN RATE APPLIES.-- "(2) SPECIAL RULE FOR TAX IMPOSED BY SECTION 402(e).--The tax imposed by subsection (e) of section 402 shall be treated as a tax imposed by section 1."

(3) ELIMINATION OF 50-CENT ROUNDING ERRORS.--If any figure in any table--

 

differs by not more than 50 cents from the correct amount under the formula used in constructing such table, such figure is hereby corrected to the correct amount.

 

(1) CLARIFICATION OF LIMITATION ON BENEFIT.--Subsection (d) of section 911 (relating to citizens or residents of the United States living abroad) is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following new paragraph:

"(7) AGGREGATE BENEFIT CANNOT EXCEED FOREIGN EARNED INCOME.--The sum of the amount excluded under subsection (a) and the amount deducted under subsection (c)(3)(A) for the taxable year shall not exceed the individual's foreign earned income for such year."

(2) TECHNICAL AMENDMENT.--Clause (ii) of section 911(c)(3)(B) (relating to special rules where housing expenses not provided by employer) is amended by striking out "subsection (a)(1)" and inserting in lieu thereof "subsection (a)".

 

(1) BENEFITS MUST BE NONDISCRIMINATORY.--

 

"(2) DISCRIMINATION.--The contributions or benefits provided under the plan shall not discriminate in favor of employees who are officers, owners, or highly compensated, or their dependents."

 

(2) CLARIFICATION OF DEDUCTION TO EMPLOYER.--Paragraph (7) of section 129(e) (relating to disallowance of excluded amounts as credit or deduction) is amended--

 

(1) APPLICATION OF SHORT TAXABLE YEAR RULE TO 15-YEAR REAL PROPERTY.--Paragraph (5) of section 168(f) (relating to short taxable years) is amended by adding at the end thereof the following new sentence: "In the case of 15-year real property, the first sentence of this paragraph shall not apply to the taxable year in which the property is placed in service or disposed of."

(2) ADJUSTMENTS TO BASIS IN THE CASE OF CERTAIN TRANSFERS.--Subparagraph (B) of section 168(d)(2) (relating to adjustment to basis) is amended by striking out "subsection (f)(7)" and inserting in lieu thereof "paragraph (7) or (10) of subsection (f)".

(3) CHANGES IN USE.--Subsection (f) of section 168 (relating to special rules for application of section) is amended by adding at the end thereof the following new paragraph:

"(13) CHANGES IN USE.--The Secretary shall, by regulation, provide for the method of determining the deduction allowable under subsection (a) with respect to any property for any taxable year (and for succeeding taxable years) during which such property changes status under this section but continues to be held by the same person."

(4) QUALIFIED COAL UTILIZATION PROPERTY.--

 

"(4) QUALIFIED COAL UTILIZATION PROPERTY.--The term '10-year property' includes qualified coal utilization property which would otherwise be 15-year public utility property."

 

(5) CLARIFICATION OF APPLICABLE PERCENTAGE FOR YEAR REAL PROPERTY PLACED IN SERVICE.--The third sentence of section 168(b)(2)(A) (relating to 15-year real property) is amended by striking out "For purposes of this subparagraph" and inserting in lieu thereof "In the case of 15-year real property".

(6) SECTION 1245 RECOVERY PROPERTY INCLUDED AS UNREALIZED RECEIVABLE.--The second sentence of subsection (c) of section 751 (relating to unrealized receivables and inventory items) is amended by inserting "section 1245 recovery property (as defined in section 1245(a)(5))," after "section 1245(a)(3)),".

(7) CLARIFICATION OF ADDITIONAL DEPRECIATION IN THE CASE OF RECOVERY PROPERTY.--

 

"(5) METHOD OF COMPUTING STRAIGHT LINE ADJUSTMENTS.--For purposes of paragraph (1), the depreciation adjustments which would have resulted for any taxable year under the straight line method shall be determined--

 

(8) THEME PARKS, ETC.--Paragraph (2) of section 168(c) (defining classes of recovery property) is amended by adding at the end thereof the following new subparagraph:

 

(9) ANTI-CHURNING PROVISIONS.--Paragraph (4) of section 168(e) (relating to certain transactions in property placed in service before 1981), as amended by section 206(b)(1) of the Tax Equity and Fiscal Responsibility Act of 1982, is amended--

 

(10)(A) Subparagraph (D) of section 168(f)(8) (relating to special rule for leases), as in effect before the amendments made by the Tax Equity and Fiscal Responsibility Act of 1982, is amended by adding at the end thereof the following new sentence:

 

(1)(A) The next to the last sentence of section 57(a) is amended by striking out "and (12)" and inserting in lieu thereof "and (12)(A)".

 

(2) Paragraph (2) of section 58(f) is amended by striking out "the item of tax preference set forth in section 57(a)(2)" and inserting in lieu thereof "the items of tax preference set forth in paragraphs (2) and (12)(B) of section 57(a)".

(3) Paragraph (12) of section 57(a) (defining items of tax preference) is amended by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, and by inserting after subparagraph (B) the following new subparagraph:

 

(4) Subparagraph (A) of section 57(a)(12) is amended by striking out "under section 168(a)" and inserting in lieu thereof "under section 168(a) (or, in the case of property described in section 167(k), under section 167)".

 

(1) Paragraph (1) of section 1248(c) is amended by striking out "section 312(k)(3)" and inserting in lieu thereof "section 312(k)(4)".

(2) Section 562 (relating to rules applicable in determining dividends eligible for dividends paid deduction) is amended by adding at the end thereof the following new subsection:

 

(1) Paragraph (1) of section 209(c) of the Economic Recovery Tax Act of 1981 (relating to effective date for carryover provisions) is amended by adding at the end thereof the following new subparagraph:

 

(2) Subsection (c) of section 209 of the Economic Recovery Tax Act of 1981 is amended by adding at the end thereof the following new paragraph:

"(3) CARRYOVER MUST HAVE BEEN ALIVE IN 1981.--The amendments made by subsections (a), (b), and (c) of section 207 shall not apply to any amount which, under the law in effect on the day before the date of the enactment of this Act, could not be carried to a taxable year ending in 1981."

(3) Paragraph (2) of section 207(c) of the Economic Recovery Tax Act of 1981 (relating to new employee credit) is amended by striking out "section 53(c)" and inserting in lieu thereof "section 53(b)".

 

(1) APPLICABLE INVESTMENT TAX CREDIT PERCENTAGE FOR RECOVERY PROPERTY.--Paragraph (7) of section 46(c) (relating to applicable percentage for recovery property) is amended--

 

(2) PETROLEUM STORAGE FACILITIES.--

 

(3) CLERICAL AMENDMENT.--

 

(1) CLARIFICATION OF TRANSITIONAL RULE.--Subparagraph (B) of section 212(e)(2) of the Economic Recovery Tax Act of 1981 (relating to transitional rule for increase in investment tax credit for qualified rehabilitation expenditures) is amended to read as follows:

 

(2) DETERMINATION OF SUBSTANTIAL REHABILITATION.--Clause (i) of section 48(g)(1)(C) (defining substantially rehabilitated) is amended by striking out "the 24-month period ending on the last day of the taxable year" and inserting in lieu thereof "the 24-month period selected by the taxpayer (at the time and in the manner prescribed by regulations) and ending with or within the taxable year".

(3) CLARIFICATION OF BASIS ADJUSTMENT.--Subparagraph (A) of section 48(g)(5) (relating to adjustments to basis) is amended--

 

(4) EXTENSION OF TIME TO MAKE ELECTION TO USE STRAIGHT LINE DEPRECIATION.--Subparagraph (B) of section 168(f)(4) (relating to election made on return) is amended to read as follows: (5) CLARIFICATION OF BUILDINGS ELIGIBLE FOR REHABILITATION CREDIT.--

 

(6) DEFINITION OF SUBSTANTIALLY REHABILITATED.--Clause (i) of section 48(g)(1)(C) (defining substantially rehabilitated) is amended-- (7) CROSS REFERENCE.--Clause (ii) of section 170(h)(4)(B) (defining certified historic structure) is amended by striking out "section 191(d)(2)" and inserting in lieu thereof "section 48(g)(3)(B)".

 

(1) Subparagraph (B) of section 108(b)(2) (relating to certain credit carryovers) is amended by striking out "or" at the end of clause (iii), by striking out the period at the end of the clause (iv) and inserting in lieu thereof ", or", and by inserting after clause (iv) the following new clause: (2) Effective only with respect to amounts paid or incurred after March 31, 1982, subparagraph (A) of section 44F(b)(2) is amended by adding at the end thereof the following:

 

(3) The paragraph (28) of section 381(c) added by section 221 of the Economic Recovery Tax Act of 1981 is redesignated as paragraph (29).

 

(1) Subparagraph (B) of section 1371(g)(3) (defining qualified subchapter S trust) is amended to read as follows:

 

(2) Section 678 is amended by adding at the end thereof the following new subsection:

 

(1) Paragraph (8) of section 422A(b) (defining incentive stock option) is amended by striking out "granted options" and inserting in lieu thereof "granted incentive stock options".

(2) Paragraph (1) of section 422A(c) (relating to exercise of option where price is less than value of stock) is amended--

 

"(1) GOOD FAITH EFFORTS TO VALUE STOCK.--".

(3) Subparagraph (A) of section 422A(c)(2) (relating to certain disqualified dispositions where amount realized is less than value at exercise) is amended by striking out "the 2-year period" and inserting in lieu thereof "either of the periods".

(4) Clause (ii) of section 422A(c)(4)(A) (relating to carryover of unused limit) is amended by striking out "granted options" and inserting in lieu thereof "granted incentive stock options".

(5) Subsection (j) of section 425 (relating to cross references) is amended by inserting "an incentive stock option," after "qualified stock option,".

(6) Effective only with respect to transfers after March 15, 1982--

 

"(3) SPECIAL RULE WHERE INCENTIVE STOCK IS ACQUIRED THROUGH USE OF OTHER STATUTORY OPTION STOCK.--

 

(1) Paragraph (3) of section 83(c) (relating to sales which may give rise to suit under section 16(b) of the Securities Exchange Act) is amended by striking out "Securities and Exchange Act of 1934" each place it appears and inserting in lieu thereof "Securities Exchange Act of 1934".

(2) Subsection (c) of section 252 of the Economic Recovery Tax Act of 1981 (relating to effective date) is amended by striking out "taxable years ending after December 31, 1981" and inserting in lieu thereof "transfers after December 31, 1981".

 

(1) CLARIFICATION OF DEFINITION OF YOUTH PARTICIPATING IN QUALIFIED COOPERATIVE EDUCATION PROGRAM.--Subparagraph (D) of section 51(d)(8) (defining wages) is amended by striking out "subparagraph (A)" and inserting in lieu thereof "clauses (i), (ii), and (iii) of subparagraph (A)".

(2) CLARIFICATION OF EFFECTIVE DATE FOR ELIGIBLE WORK INCENTIVE EMPLOYEES.--Subparagraph (B) of section 261(g)(1) of the Economic Recovery Tax Act of 1981 (relating to eligible work incentive employees) is amended by striking out "subsection (b)(2)(A)" and inserting in lieu thereof "subsection (b)(2)".

(3) DEFINITION OF ELIGIBLE WORK INCENTIVE EMPLOYEES.--Subparagraph (B) of section 51(d)(9) (defining eligible work incentive employees) is amended by striking out "section 432(b)(1)" and inserting in lieu thereof "section 432(b)(1) or 445".

(4) PERIOD DURING WHICH LOWINCOME DETERMINATION IS MADE.--Effective with respect to certifications made after the date of the enactment of this Act with respect to individuals beginning work for an employer after May 11, 1982, paragraph (11) of section 51(d) (defining members of an economically disadvantaged family) is amended by striking out "the month in which such determination occurs" and inserting in lieu thereof "the earlier of the month in which such determination occurs or the month in which the hiring date occurs".

 

(1) Subparagraph (A) of section 809(e)(3) (relating to charitable, etc., contributions and gifts) is amended by striking out "5 percent" and inserting in lieu thereof "10 percent".

(2) Sections 545(b)(2) and 556(b)(2 are each amended by striking out "5percent" and inserting in lieu thereof "10-percent".

(3) Paragraph (10) of section 512(b) (relating to modifications to unrelated business taxable income) is amended by striking out "5 percent" and inserting in lieu thereof "10 percent".

 

(1) Paragraph (4) of section 128(d) (relating to limitation for credit unions) is amended by adding at the end thereof the following new sentence:

"For purposes of this paragraph, the amounts described in subparagraph (A) of paragraph (5) shall include amounts paid into credit union share accounts."

(2) Paragraph (2) of section 584(c) (relating to dividends or interest received) is amended to read as follows:

"(2) DIVIDENDS OR INTEREST RECEIVED.--The proportionate share of each participant in the amount of dividends or interest received by the common trust fund and to which section 116 or 128 applies shall be considered for purposes of such section as having been received by such participant."

(3) Paragraph (7) of section 643(a) (defining distributable net income) is amended to read as follows:

"(7) DIVIDENDS OR INTEREST.--There shall be included the amount of any dividends or interest excluded from gross income pursuant to section 116 (relating to partial exclusion of dividends) or section 128 (relating to certain interest)."

(4) Paragraph (5) of section 702(a) (relating to income and credits of partner) is amended to read as follows:

"(5) dividends or interest with respect to which there is an exclusion under section 116 or 128, or a deduction under part VIII of subchapter B,".

(5) Subparagraph (A) of section 128(c)(2) (defining qualified institution) is amended--

 

"(3) LIMITATION ON QUALIFIED INTEREST EXPENSES, ETC.--

 

(1) LIMITATION ON DEDUCTION FOR SPOUSE.--Subparagraph (B) of section 219(c)(2) (relating to limitation) is amended to read as follows:

 

(2) CLARIFICATION OF AGE 70-1/2 RULE.--Paragraph (1) of section 219(d) (relating to individuals who have attained age 70-1/2) is amended to read as follows:

"(1) BENEFICIARY MUST BE UNDER AGE 70-1/2.--No deduction shall be allowed under this section with respect to any qualified retirement contribution for the benefit of an individual if such individual has attained age 70-1/2 before the close of such individual's taxable year for which the contribution was made."

(3) DEFINITION OF QUALIFIED EMPLOYER PLAN.--

(4) CLARIFICATION OF DEFINITION OF COMPENSATION.--Paragraph (1) of section 219(f) (defining compensation) is amended to read as follows:

"(1) COMPENSATION.--For purposes of this section, the term 'compensation' includes earned income (as defined in section 401(c)(2)) reduced by any amount allowable as a deduction to the individual in computing adjusted gross income under paragraph (7) of section 62. The term 'compensation' does not include any amount received as a pension or annuity and does not include any amount received as deferred compensation."

(5) TIME WHEN CERTAIN CONTRIBUTIONS DEEMED MADE.--Subparagraph (B) of section 219(f)(3) (relating to time when contributions deemed made) is amended by striking out "the contribution is made" and inserting in lieu thereof "the contribution is made on account of the taxable year which includes such last day and".

(6) CLARIFICATION OF ADDITIONAL TAX WHERE AMOUNTS RECEIVED BEFORE AGE 59-1/2.--Subparagraph (A) of section 72(o)(2) (relating to additional tax if amount received before age 59-1/2) is amended by striking out "to which the employee made one or more deductible employee contributions".

(7) 10-YEAR AVERAGING AND CAPITAL GAINS PROVISIONS.--The last sentence of subparagraph (A) of section 402(e)(4) (defining lump sum distribution) is amended by striking out "this section and section 403" and inserting in lieu thereof "this subsection, subsection (a)(2) of this section, and subsection (a)(2) of section 403".

(8) ROLLOVER OF PARTIAL DISTRIBUTIONS OF DEDUCTIBLE EMPLOYEE CONTRIBUTIONS PERMITTED.--

 

(9) ESTATE TAX EXCLUSION.--

 

"(1) IN GENERAL.--An amount is described in this subsection if--

 

(10) DEDUCTIBLE EMPLOYEE CONTRIBUTIONS BY OWNER-EMPLOYEES PERMITTED.--

 

(11) EFFECTIVE DATE FOR ESTATE AND GIFT TAX PROVISIONS.--Subsection (i) of section 311 of the Economic Recovery Tax Act of 1981 (relating to effective dates) is amended by adding at the end thereof the following new paragraph:

"(5) ESTATE AND GIFT TAX PROVISIONS.--

 

(12) CLERICAL AMENDMENTS.--

 

"(2) Subparagraph (J) of section 402(e)(4) (relating to tax on lump sum distribution) is amended by adding at the end thereof the following new sentence: 'This subparagraph shall not apply to distributions of accumulated deductible employee contributions (within the meaning of section 72(o)(5)).'"

 

(1) SIMPLIFIED EMPLOYEE PENSIONS.--

 

(2) CONFORMING AMENDMENT.--The last sentence of section 401(j)(3) is amended--

 

(3) CLARIFICATION OF EFFECTIVE DATE.--Paragraph (1) of section 312(f) of the Economic Recovery Tax Act of 1981 (relating to effective date) is amended by striking out "plans which include employees within the meaning of section 401(c)(1) with respect to".

 

(1) Paragraph (1) of section 314(b) of the Economic Recovery Tax Act of 1981 is amended by striking out "by redesignating subsection (n) as subsection (o) and by inserting after subsection (m)" and inserting in lieu thereof "by redesignating subsection (m) as subsection (n) and by inserting after subsection (1)".

(2) Section 408 is amended by redesignating the subsection added by section 314(b)(1) of the Economic Recovery Tax Act of 1981 as subsection (m).

 

(1) Subparagraph (A) of section 305(e)(3) (defining qualified public utility) is amended to read as follows:

 

(2) Clause (ii) of section 305(e)(3)(C) is amended to read as follows:

 

(1) CERTAIN REGULATED COMPANIES.--Paragraph (3) of section 44G(b) (relating to certain regulated companies) is amended--

 

"Under regulations prescribed by the Secretary, rules similar to the rules of paragraphs (4) and (7) of section 46(f) shall apply for purposes of the preceding sentence."

(2) CONFORMING AMENDMENTS.--

 

"which would be allowable--

 

(1) PROPERTY TREATED AS HAVING PASSED FROM SPOUSE.--

 

"(10) Property includible in the gross estate of the decedent under section 2044 (relating to certain property for which marital deduction was previously allowed). In any such case, the last 3 sentences of paragraph (9) shall apply as if such property were described in the first sentence of paragraph (9)."

 

(2) DENIAL OF DOUBLE DEDUCTION.--

 

"(9) DENIAL OF DOUBLE DEDUCTION.--Nothing in this section or any other provision of this chapter shall allow the value of any interest in property to be deducted under this chapter more than once with respect to the same decedent."

 

(3) DISPOSITIONS OF CERTAIN LIFE ESTATES.--

 

(4) TIME FOR MAKING ELECTION.--Paragraph (4) of section 2523(f) (relating to election with respect to life estate for donee spouse) is amended to read as follows:

"(4) ELECTION.--

 

(5) TREATMENT OF CERTAIN INTEREST RETAINED BY DONOR SPOUSE.--Subsection (f) of section 2523 (relating to election with respect to life estate for donee spouse) is amended by adding at the end thereof the following new paragraph:

"(5) TREATMENT OF INTEREST RETAINED BY DONOR SPOUSE.--

 

(6) AMENDMENT OF SECTION 2523(f).--Paragraph (3) of section 2523(f) (relating to certain rules made applicable) is amended by striking out "the rules of" and inserting in lieu thereof "rules similar to the rules of".

(7) CROSS REFERENCE.--Section 2519 is amended by adding at the end thereof the following new subsection:

 

(8) TREATMENT OF ANNUITIES.--Clause (ii) of section 2056(b)(7)(B) is amended by adding at the end thereof the following new sentence: "To the extent provided in regulations, an annuity shall be treated in a manner similar to an income interest in property (regardless of whether the property from which the annuity is payable can be separately identified)."

(9) CLERICAL AMENDMENT.--Paragraph (2) of section 2035(b) is amended by striking out "section 6019(a)(2)" and inserting in lieu thereof "section 6019(2)".

(10) CLARIFICATION OF EFFECTIVE DATE.--Paragraph (2) of section 403(e) of the Economic Recovery Tax Act of 1981 is amended by striking out "and paragraphs (2) and (3)(B) of subsection (d)" and inserting in lieu thereof "paragraphs (2) and (3)(B) of subsection (d), and paragraph (4)(A) of subsection (d) (to the extent related to the tax imposed by chapter 12 of the Internal Revenue Code of 1954)".

 

(1) TREATMENT OF CERTAIN SURVIVING SPOUSES.--Paragraph (5) of section 2032A(b) (relating to special rules for surviving spouses) is amended by adding at the end thereof the following new subparagraph:

 

(2) EXCHANGES OF QUALIFIED REAL PROPERTY.--

 

(3) TRANSFERS OF CERTAIN FARM, ETC., REAL PROPERTY.--

 

"(12) If--

 

then the person making such sale or other disposition shall be considered to have held such property for more than 1 year."

(4) CLARIFICATION OF EFFECTIVE DATES.--

 

(1) Paragraph (3) of section 6166(b) (relating to farm houses and certain other structures taken into account) is amended by striking out "65-percent requirement" and inserting in lieu thereof "35-percent requirement".

(2) Clauses (i) and (ii) of the first sentence of section 6166(g)(1)(B) (relating to disposition of interest; withdrawal of funds from business) are amended to read as follows:

 

(1) COORDINATION WITH SECTION 6166(a)(1).--

 

"(4) COORDINATION OF 3-YEAR RULE WITH SECTION 6166(a)(1).--An estate shall be treated as meeting the 35-percent of adjusted gross estate requirement of section 6166(a)(1) only if the estate meets such requirement both with and without the application of paragraph (1)."

 

"(5) TRANSFERS WITHIN 3 YEARS OF DEATH.--

"For special rule for qualifying an estate under this section where property has been transferred within 3 years of decedent's death, see section 2035(d)(4)."

 

(2) EXCEPTIONS FOR CERTAIN TRANSFERS.--Paragraph (2) of section 2035(d) (relating to exceptions for certain transfers) is amended--

 

(3) ELECTION TO HAVE AMENDMENTS NOT APPLY.--

 

(1) LOSS COMPUTED WITH RESPECT TO UNRECOGNIZED GAIN.--

 

"(3) UNRECOGNIZED GAIN.--For purposes of this subsection-- (2) CLARIFICATION OF GENERAL RULE LIMITING RECOGNITION OF LOSS.--Subparagraph (A) of section 1092(a)(1) is amended by striking out "which--" and all that follows and inserting in lieu thereof the following: "which were offsetting positions with respect to 1 or more positions from which the loss arose."

(3) COORDINATION WITH SECTION 1256.--Paragraph (4) of section 1092(d) (relating to special rule for regulated futures contracts) is amended to read as follows:

"(4) SPECIAL RULE FOR REGULATED FUTURES CONTRACTS.--In the case of a straddle at least 1 (but not all) of the positions of which are regulated futures contracts, the provisions of this section shall apply to any regulated futures contract and any other position making up such straddle."

(4) CLERICAL AMENDMENT.--Subparagraph (C) of section 1092(c)(2) (relating to offsetting positions) is amended by striking out "subsection (a)(3)(B)" and inserting in lieu thereof "subsection (a)(2)(B)".

 

(1) IN GENERAL.--Clause (ii) of section 263(g)(2)(A) (defining interest and carrying charges) is amended to read as follows: (2) EFFECTIVE DATE.--The amendment made by paragraph (1) shall apply to property acquired, and positions established, by the taxpayer after September 22, 1982, in taxable years ending after such date.

 

(1) TRANSFERS OF RIGHTS AND OBLIGATIONS.--Subsection (c) of section 1256 (relating to regulated futures contracts marked to market) is amended to read as follows:

 

"(1) IN GENERAL.--The rules of paragraphs (1), (2), and (3) of subsection (a) shall also apply to the termination (or transfer) during the taxable year of the taxpayer's obligation (or rights) with respect to a regulated futures contract by offsetting, by taking or making delivery, or otherwise.

"(2) SPECIAL RULE WHERE TAXPAYER TAKES DELIVERY ON PART OF STRADDLE.--If--

 

"(3) FAIR MARKET VALUE TAKEN INTO ACCOUNT.--For purposes of this subsection, fair market value at the time of the termination (or transfer) shall be taken into account."

(2) IDENTIFICATION OF MIXED STRADDLES.--Subparagraph (B) of section 1256(d)(4) (defining mixed straddles) is amended by striking out "such position" and inserting in lieu thereof "the first regulated futures contract forming part of the straddle".

(3) ACTIVE MANAGEMENT WITH RESPECT TO SYNDICATES.--Clause (v) of section 1256(e)(3)(C) is amended by inserting "(by regulations or otherwise)" after "determines".

(4) HOLDING PERIOD.--Paragraph (8) of section 1223 (relating to holding period of property) is amended by inserting "(other than a commodity futures contract to which section 1256 applies)" after "commodity futures contract" the first place it appears.

(5) FOREIGN CURRENCY AND CASH SETTLEMENT CONTRACTS MARKED TO MARKET.--

 

"(1) FOREIGN CURRENCY CONTRACT.--For purposes of this section, the term 'foreign currency contract' means a contract--

 

"(2) REGULATIONS.--The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of paragraph (1), including regulations excluding from the application of paragraph (1) any contract (or type of contract) if its application thereto would be inconsistent with such purposes." (6) CLARIFICATION OF EXTENSION.--Paragraph (3) of section 509(b) of the Economic Recovery Tax Act of 1981 is amended to read as follows:

"(3) the fair market value on the last business day of the preceding taxable year for each regulated futures contract described in paragraph (2), and".

(7) CLERICAL AMENDMENT.--Subparagraph (A) of section 1212(c)(4) (defining net commodities futures loss) is amended by striking out "and positions to which section 1256 applies".

 

(1) REQUIREMENT THAT OPTIONS BE DESIGNATED AS HELD FOR INVESTMENT.--Section 1236 (relating to dealers in securities) is amended by adding at the end thereof the following new subsection:

 

(2) EFFECTIVE DATE.--The amendment made by paragraph (1) shall apply to securities acquired after September 22, 1982, in taxable years ending after such date.

 

"(1) a right or obligation with respect to personal property (as defined in section 1092(d)(1)) which is (or on acquisition would be) a capital asset in the hands of the taxpayer, or

"(2) a regulated futures contract (as defined in section 1256) not described in paragraph (1) which is a capital asset in the hands of the taxpayer,

 

(1) PRODUCTION FROM TRANSFERRED PROPERTY.--Paragraph (3) of section 6429(d) (relating to production from transferred property) is amended by striking out subparagraph (D).

(2) ALLOCATION OF ROYALTY LIMIT.--Subparagraph (B) of section 4994(f)(3) (relating to allocation of royalty limit) is amended by striking out "subsection (b)(1)" and inserting in lieu thereof "paragraph (2)(A)".

(3) QUALIFIED FAMILY CORPORATION DEFINED.--Subparagraph (B) of section 6429(d)(4) is amended by striking out "other than royalty interests described in paragraph (2)(A)" and inserting in lieu thereof "other than royalty interests from which there is qualified royalty production determined by treating such corporation as a qualified royalty owner".

(4) CREDIT OR REFUND FOR BENEFICIARIES OF TRUST OWNING ROYALTY INTERESTS.--

 

"(1) IN GENERAL.--If the aggregate amount of the allocable trust production of any qualified beneficiary for any calendar year exceeds such beneficiary's unused exempt royalty limit for such calendar year, then the amount treated as an overpayment under subsection (a) with respect to such qualified beneficiary shall be reduced by an amount which bears the same ratio to the amount which (but for this paragraph) would be so treated as--

 

"(2) UNUSED EXEMPT ROYALTY LIMIT.--The unused exempt royalty limit of any qualified beneficiary for any calendar year is the excess of-- "(3) ALLOCATION.--Rules similar to the rules of paragraphs (2), (3), and (4) of section 6429(c) shall apply to the amount determined under paragraph (2)(A).

 

"(1) IN GENERAL.--The term 'allocable trust production' means, with respect to any qualified beneficiary, the qualified royalty production of any trust which--

 

"(2) ALLOCATION OF PRODUCTION.-- "(3) PRODUCTION FROM TRANSFERRED PROPERTY.--

 

"(1) QUALIFIED BENEFICIARY.--The term 'qualified beneficiary' means any individual or estate which is a beneficiary of any trust which is a producer.

"(2) QUALIFIED ROYALTY PRODUCTION.--The term 'qualified royalty production' means, with respect to any person, taxable crude oil (within the meaning of section 4991(a)) which is attributable to an economic interest of such person other than an operating mineral interest (within the meaning of section 614(d)). Such term does not include taxable crude oil attributable to any overriding royalty interest, production payment, net profits interest, or similar interest of the person which--

 

"(3) PRODUCER.--The term 'producer' has the meaning given to such term by section 4996(a)(1).

(B) ALLOCATION OF LIMITATION BETWEEN EXEMPT ROYALTY OIL AND ALLOCABLE TRUST PRODUCTION.--Paragraph (2) of section 4994(f) (relating to royalty limit) is amended--

 

"(C) ELECTION TO INCREASE SECTION 6430 ROYALTY CREDIT BY REDUCING EXEMPTION UNDER THIS SUBSECTION.--Any qualified royalty owner who is a qualified beneficiary (within the meaning of section 6430(d)(1)) for any quarter may elect (at such time and in such manner as the Secretary may prescribe by regulations) to reduce by any amount the qualified royalty owner's royalty limit determined under subparagraph (A) for such quarter (after the application of paragraph (3)(B))."

(C) TECHNICAL AMENDMENT.--Subparagraph (B) of section 6654(g)(3) (relating to estimated tax computed after application of credits against tax) is amended by inserting "or 6430" after "section 6429".

(D) CONFORMING AMENDMENT.--The table of sections for subchapter B of chapter 65 is amended by adding at the end thereof the following new item:

(E) EFFECTIVE DATE.--

 

(1) AGGREGATION OF PROPERTIES.--Subsection (d) of section 6659 (relating to underpayment must be at least $1,000) is amended by striking out "the valuation overstatement" and inserting in lieu thereof "valuation overstatements".

(2) CLARIFICATION OF DEFINITION OF VALUATION OVERSTATEMENT.--Paragraph (1) of section 6659(c) (defining valuation overstatement) is amended by striking out "exceeds 150 percent of' and inserting in lieu thereof "is 150 percent or more of".

(3) CLARIFICATION OF INCREASE IN NEGLIGENCE PENALTY.--Subparagraph (B) of section 6653(a)(2) (relating to additional amount for portion attributable to negligence, etc.) is amended by inserting "(or, if earlier, the date of the payment of the tax)" after "assessment of the tax".

 

(1) by striking out "section 6659(a)" and inserting in lieu thereof "section 6660(a)", and

(2) by striking out "Section 6659" in the heading and inserting in lieu thereof "Section 6660".

 

(1) Paragraph (1) of section 6654(f) (relating to exception to penalty for failure to pay estimated tax where tax is small amount) is amended by striking out "is less than" and inserting in lieu thereof ", reduced by the credit allowable under section 31, is less than".

(2) Subsection (a) of section 6015 (relating to requirement of declaration of estimated income tax by individuals) is amended by striking out "entitled under subsection (b)" each place it appears and inserting in lieu thereof "entitled under subsection (c)"

 

(1) Paragraph (3) of section 4988(b) (defining taxable income from the property) is amended by striking out "purposes of paragraph (2)" and inserting in lieu thereof "purposes of this subsection".

(2) Clause (ii) of section 4988(b)(3)(C) (relating to taxable income reduced by cost depletion) is amended by striking out "all taxable periods" and inserting in lieu thereof "all taxable years".

 

(1) by striking out "paragraphs (1) and (2)" and inserting in lieu thereof "paragraphs (1)(A) and (2)", and

(2) by adding at the end thereof the following new sentence: "For purposes of applying paragraph (1)(B), the revision of the price deflator which is most consistent with the revision used for purposes of paragraph (1)(A) shall be used."

 

(1) Subsection (b) of section 4992 (defining independent producer) is amended to read as follows:

 

"(1) IN GENERAL.--The term 'independent producer' means, with respect to any quarter in any calendar year, any person other than a person to whom subsection (c) of section 613A does not apply for such calendar year by reason of paragraph (2) (relating to certain retailers) or paragraph (4) (relating to certain refiners) of section 613A(d).

"(2) RULES FOR APPLYING PARAGRAPHS (2) AND (4) OF SECTION 613A(d).--For purposes of paragraph (1), paragraphs (2) and (4) of section 613A(d) shall be applied by substituting 'calendar year' for 'taxable year' each place it appears in such paragraphs."

(2) Paragraph (2) of section 4992(c) (relating to allocation where production exceeds independent producer amount) is amended--

 

(3) Clause (i) of section 4992(d)(3)(B) (relating to small producer transfer exemption) is amended by striking out "has the property" and inserting in lieu thereof "has the interest".

 

(1) Subparagraph (A) of section 4994(c)(2) (relating to refunds for tertiary projects of integrated producers) is amended by striking out "the taxpayer" each place it appears and inserting in lieu thereof "the producer".

(2)(A) Paragraph (1) of section 4994(e) (defining exempt Alaskan oil) is amended to read as follows:

"(1) from a well located north of the Arctic Circle or from a reservoir from which oil has been produced in commercial quantities through such a well, or".

 

(3)(A) Subparagraph (A) of section 4994(b)(1) (defining qualified charitable interest) is amended--

 

(1) Subparagraph (A) of section 4995(a)(3) (relating to adjustments for withholding errors) is amended--

 

(2) Paragraph (3) of section 4995(a) is amended by striking out subparagraph (C) and by redesignating subparagraph (D) as subparagraph (C).

(3) Subparagraph (B) of section 4995(a)(4) (relating to time payment deemed made) is amended by striking out "The producer" and inserting in lieu thereof "For purposes of this chapter (and so much of subtitle F as relates to this chapter), the producer".

 

(1)(A) Paragraph (1) of section 4996(a) (defining producer) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:

 

"(1) NET PROFITS AGREEMENT.--The term 'net profits agreement' means an agreement entered into (or renewed) after March 31, 1982, and providing for sharing part or all of the production of crude oil from a property where--

 

"(2) COST RECOVERY OIL DEFINED.--The term 'cost recovery oil' means crude oil produced from the property which is allocated to a person as reimbursement for qualified costs paid or incurred with respect to the property. The Secretary shall by regulation prescribe rules for allocating the cost recovery oil to the oil produced from the property.

"(3) QUALIFIED COSTS.--The term 'qualified costs' means any amount paid or incurred for exploring for, or developing or producing, 1 or more oil or gas wells on the property.

"(4) SCOPE OF AGREEMENT.--A net profits agreement shall be treated as covering only shares of production of crude oil held by persons who hold economic interests in the property (determined without regard to subsection (a)(1)(B))."

 

"(6) COST RECOVERY OIL COVERED BY NET PROFITS AGREEMENT.--For purposes of paragraph (2), if any person is treated under section 4996(a)(1)(B) as the producer of any portion of the cost recovery oil covered by a net profits agreement (within the meaning of section 4996(h))--

 

(2)(A) Paragraph (1) of section 4996(b) (defining crude oil) is amended by adding at the end thereof the following new sentence: "In the case of crude oil which is condensate recovered off the premises by mechanical separation, such crude oil shall be treated as removed from the premises on the date on which it is so recovered."

 

(1) IN GENERAL.--Subsection (a) of section 4997 (relating to records and information; regulations) is amended by striking out "such information" and inserting in lieu thereof "such statements and other information".

(2) PENALTY FOR FAILURE TO MAKE A RETURN.--

 

"(3) to make a return required by section 4997(a) (relating to information with respect to windfall profit tax on crude oil),"

 

(3) PENALTY FOR FAILURE TO FURNISH CERTAIN STATEMENTS.--Paragraph (3) of section 6678 (relating to failure to furnish certain statements) is amended by redesignating subparagraphs (A) through (D) as subparagraphs (B) through (E), respectively, and by inserting before subparagraph (B) (as so redesignated) the following:

 

(1) Paragraph (3) of section 6015(d) (defining estimated tax in the case of an individual) is amended to read as follows:

"(3) the amount which the individual estimates as the sum of--

 

(2) Paragraph (2) of section 6154(c) (defining estimated tax in the case of a corporation) is amended to read as follows:

"(2) the amount which the corporation estimates as the sum of--

 

(3) Subparagraph (B) of section 6654(g)(3) (defining tax) is amended to read as follows:

 

(4) Subparagraph (B) of section 6655(e)(2) (defining tax) is amended to read as follows:

 

(1) Subparagraph (E) of section 613A(c)(10) is amended by inserting "and, in the case of any property, also includes necessary production equipment for such property which is in place when the property is transferred" before the period at the end thereof.

(2) Paragraph (2) of section 613A(d) (relating to exclusion of retailers) is amended by inserting "(excluding bulk sales of aviation fuels to the Department of Defense)" after "any product derived from oil or natural gas" the first place it appears.

 

(1) DEFINITION OF INDEPENDENT PRODUCER.--The amendment made by section 201(d)(1) shall take effect on January 1, 1983.

(2) PENALTY PROVISION.--The amendments made by section 201(i) shall apply with respect to returns and statements the due dates for which (without regard to extensions) are after the date of the enactment of this Act.

(3) AMENDMENTS TO SECTION 613A.--

 

(4) NO WITHHOLDING BY REASON OF CONDENSATE PROVISION.--No withholding of tax shall be required under section 4995 of the Internal Revenue Code of 1954 by reason of the amendment made by section 201(h)(2)(A) of this Act before the date on which regulations with respect to such amendment are published in the Federal Register.

 

"(1) a husband and wife, and

"(2) a person and all entities which are 80-percent owned entities with respect to such person."

 

"(1) GENERAL RULE.--For purposes of this section, the term '80 percent owned entity' means, with respect to any person--

 

"(2) CONSTRUCTIVE OWNERSHIP.--For purposes of subparagraphs (A) and (B) of paragraph (1), the principles of section 318 shall apply, except that--

 

(1) by striking out "and" at the end of clause (i),

(2) by striking out the period at the end of clause (ii) and inserting in lieu thereof ", and", and

(3) by inserting after clause (ii) the following new clause:

 

(1) The section 194 which relates to contributions to employer liability trusts is hereby redesignated as section 194A.

(2) The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the item relating to the section 194 which relates to contributions to employer liability trusts and inserting in lieu thereof the following:

 

(1)(A) Section 6 of the Subchapter S Revision Act of 1982 is amended by adding at the end thereof the following new subsection:

 

(2) Subsection (e) of section 1368 (relating to distributions) is amended by adding at the end thereof the following new paragraph:

"(3) ELECTION TO DISTRIBUTE EARNINGS FIRST.--

 

(3) Subsection (d) of section 1374 (relating to determination of taxable income) is amended by striking out "subsections (a)(2) and (b)(2)" and inserting in lieu thereof "this section".

(4) Subparagraph (B) of section 221(b)(1) is amended by striking out "(9),".

(5) The last sentence of section 4975(d) is amended by striking out "section 1379" and inserting in lieu thereof "section 1379, as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982".

 

(1) AMENDMENTS RELATED TO SECTION 201.--

 

(2) AMENDMENT RELATED TO SECTION 204.--Paragraph (1) of section 291(a) (relating to 15-percent reduction for certain preference items) is amended by adding at the end thereof the following new sentence: "Under regulations prescribed by the Secretary, the provisions of this paragraph shall not apply to the disposition of any property to the extent section 1250(a) does not apply to such disposition by reason of section 1250(d)."

(3) AMENDMENT RELATED TO SECTION 205.--Paragraph (3) of section 48(q) (relating to basis adjustment to section 38 property) is amended by striking out "paragraphs (1) and (2)" and inserting in lieu thereof "paragraphs (1) and (2) of this subsection and paragraph (5) of subsection (d)".

(4) AMENDMENTS RELATED TO SECTION 208.--

 

"(7) COORDINATION WITH AT RISK RULES.--Subparagraph (J) of section 168(f)(8) of the Internal Revenue Code of 1954 (as added by subsection (b)(4)) shall take effect as provided in such subparagraph (J)." (5) AMENDMENT RELATED TO SECTION 211.--Paragraph (2) of section 211(e) of the Tax Equity and Fiscal Responsibility Act of 1982 (relating to effective date for foreign tax credit for taxes on oil and gas income) is amended to read as follows:

"(2) RETENTION OF OLD SECTIONS 907(b) AND 904(f)(4) WHERE TAXPAYER HAD SEPARATE BASKET FOREIGN LOSS.--

(6) AMENDMENTS RELATED TO SECTION 222.-- "(3) REDEMPTIONS.--".

(7) AMENDMENT RELATED TO SECTION 223.--Subparagraph (B) of section 223(b)(2) of such Act (relating to effective date for changes in tax treatment of distributions of appreciated property in redemption of stock) is amended to read as follows:

 

(8) AMENDMENTS RELATED TO SECTION 224.--

 

"(8) TARGET NOT TREATED AS MEMBER OF AFFILIATED GROUP.--Except as otherwise provided in paragraph (9) or in regulations prescribed under this paragraph, the target corporation shall not be treated as a member of an affiliated group with respect to the sale described in subsection (a)(1).

"(9) ELECTIVE RECOGNITION OF GAIN OR LOSS BY TARGET CORPORATION, TOGETHER WITH NONRECOGNITION OF GAIN OR LOSS ON STOCK SOLD BY SELLING CONSOLIDATED GROUP.--

 

"(4) EXTENSION OF TIME FOR MAKING ELECTIONS; REVOCATION OF ELECTIONS.--

 

"(5) RULES FOR ACQUISITIONS DESCRIBED IN PARAGRAPH (2).-- (9) AMENDMENTS RELATED TO SECTION 231.-- "(4) SPECIAL RULE FOR EXCHANGE OF BONDS IN REORGANIZATIONS.-- (10) AMENDMENT RELATED TO SECTION 235.--Section 235(g)(5) of such Act is amended by striking out "section 253" and inserting in lieu thereof "section 242".

(11) AMENDMENT RELATED TO SECTION 236.--Subsection (c) of section 236 of the Tax Equity and Fiscal Responsibility Act of 1982 (relating to effective date) is amended by adding at the end thereof the following new paragraph:

"(3) TREATMENT OF CERTAIN RENEGOTIATIONS.--If--

 

then the renegotiation described in subparagraph (B) shall not be treated as a renegotiation, extension, renewal, or revision for purposes of paragraph (1). If the renegotiation described in subparagraph (B) does not meet the requirements of subparagraph (C) solely because it extends the duration of any such outstanding prior loan, the requirements of subparagraph (C) shall be treated as met with respect to such renegotiation if, before April 1, 1983, such extension is eliminated."

(12) AMENDMENT RELATED TO SECTION 237.--Paragraph (2) of section 401(d) (as redesignated by section 237 of the Tax Equity and Fiscal Responsibility Act of 1982) is amended by striking out "paragraph (9)(b)" and inserting in lieu thereof "paragraph (1)(B)".

(13) AMENDMENT RELATED TO SECTION 266.--Section 266(c)(3) of such Act is amended by striking out "section 103(f)(2)(C)" and inserting in lieu thereof "section 101(f)(2)(C)".

(14) AMENDMENT RELATED TO SECTION 283.--Section 283(b)(2)(B) of such Act (relating to liability for tax and method of payment) is amended by striking out "January 18" and inserting in lieu thereof "February 17".

 

(1) AMENDMENTS RELATED TO SECTION 302.--

 

"(1) WAGES.--Any credit allowed--

 

For purposes of this paragraph, if more than 1 taxable year begins in a calendar year, such amount shall be allowed as a credit for the last taxable year so beginning.

"(2) INTEREST, DIVIDENDS, AND PATRONAGE DIVIDENDS.--Any credit allowed by subsection (b) shall be allowed for the taxable year of the recipient of the income in which the amount is received."

 

(2) AMENDMENT RELATED TO SECTION 310.--Subsection (d) of section 310 of the Tax Equity and Fiscal Responsibility Act of 1982 (relating to effective date for requirement that obligations be registered) is amended by adding at the end thereof the following new paragraph:

"(4) EFFECTIVE DATE FOR TAX-EXEMPT OBLIGATIONS.--In the case of obligations the interest on which is exempt from tax (determined without regard to the amendments made by this section)--

 

the amendments made by this section shall apply only to obligations issued after June 30, 1983. The preceding sentence shall not apply in the case of any obligation which under the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of the Tax Equity and Fiscal Responsibility Act of 1982) was required to be in registered form."

(3) AMENDMENT RELATED TO SECTION 336.--Section 7701(a) (relating to definitions) is amended by redesignating paragraph (38) (as added by section 336(a) of the Tax Equity and Fiscal Responsibility Act of 1982) as paragraph (39).

(4) AMENDMENT RELATED TO SECTION 339.--Subparagraph (B) of section 6038A(c)(2) (defining controlled group) is amended by inserting ", (b)(2)(C)," after "(a)(4)".

(5) AMENDMENT RELATED TO SECTION 354.--Paragraph (23) of section 501(c) (relating to exempt organizations) is amended by striking out "25 percent" and inserting in lieu thereof "75 percent".

 

(1) AMENDMENTS RELATED TO SECTION 402.--

 

(2) AMENDMENTS RELATED TO SECTION 405.--

 

"(2) The section heading of section 6679, as amended by section 340(b)(2), is amended to read as follows:

 

"(1) IN GENERAL.--The taxes imposed by section 5701 shall be determined at the time of removal of the tobacco products and cigarette papers and tubes. Such taxes shall be paid on the basis of return. The Secretary shall, by regulations, prescribe the period or the event for which such return shall be made and the information to be furnished on such return. Any postponement under this subsection of the payment of taxes determined at the time of removal shall be conditioned upon the filing of such additional bonds, and upon compliance with such requirements as the Secretary may prescribe for the protection of the revenue. The Secretary may, by regulations, require payment of tax on the basis of a return prior to removal of the tobacco products and cigarette papers and tubes where a person defaults in the postponed payment of tax on the basis of a return under this subsection or regulations prescribed thereunder. All administrative and penalty provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5701.

"(2) TIME FOR MAKING OF RETURN AND PAYMENT OF TAXES.--In the case of tobacco products and cigarette papers and tubes removed after December 31, 1982, under bond for deferred payment of tax, the last day for filing a return and paying any tax due for each return period shall be the last day of the first succeeding return period plus 10 days."

 

(2) Section 104(b) of such Act is amended by striking out "made by this section".

(3) Section 108 of such Act is amended by redesignating subsection (c) as subsection (b).

(4) Section 109(b)(2) of such Act is amended by striking out "section 108(b)(2)" and inserting in lieu thereof "section 108(a)(2)".

(5) Section 122(g)(5) of such Act is amended by striking out "1866(b)(2)(A)" and inserting in lieu thereof "1866(a)(2)(A)".

(6) Section 122 of such Act is amended by redesignating the last three subsections as subsections (i), (j), and (k).

(7) Section 122(k) of such Act (as redesignated by paragraph (6)) is amended by striking out "1861(dd)(2)(A)(iv)" and inserting in lieu thereof "1861(dd)(2)(A)(iii)".

(8) Section 131 of such Act is amended by redesignating the last two subsections thereof as subsections (c) and (d).

(9)(A) The second sentence of section 150(a) of such Act and the first sentence of section 150(b) of such Act are each amended by striking out "contract" and inserting in lieu thereof "agreement".

 

(10) Section 278(c)(2)(A) of such Act is amended by striking out "paragraph (3) of that subsection" and inserting in lieu thereof "paragraph (2) of that subsection".

(11) Section 278(d) of such Act is amended--

 

"(1) IN GENERAL.--For purposes of sections 226, 226A, and 1811 of the Social Security Act, in the case of any individual who performs service both during January 1983, and before January 1, 1983, which constitutes Medicare qualified Federal employment (as defined in section 210(p) of such Act), the individual's Medicare qualified Federal employment (as so defined) performed before January 1, 1983, for which remuneration was paid before such date, shall be considered to be 'employment' (as defined for purposes of title II of such Act), but only for the purpose of providing the individual (or another person) with entitlement to hospital insurance benefits under part A of title XVIII of such Act.";

 

(2) Section 1153(d) of such Act is amended--

 

(3) Section 1154(a)(1)(A) of such Act is amended by striking out "or otherwise allowable under section 1862(a)(1)" and inserting in lieu thereof "and whether such services and items are not allowable under subsection (a)(1) or (a)(9) of section 1862".

(4) Section 1154(a)(2)(B) of such Act is amended by striking out "posthospital".

(5) Section 1812(d)(2)(A) of such Act is amended by striking out "or to other than services" and inserting in lieu thereof "or to services".

(6) The heading of subsection (i) of section 1814 of such Act is amended to read as follows:

 

(7) Section 1814(i)(1) of such Act is amended by inserting "made" before "for bereavement counseling".

(8) Section 1839(d) of such Act is amended by striking out "subsection (b) or (c)" and inserting in lieu thereof "subsection (b), (c), or (g)".

(9) The heading of subsection (dd) of section 1861 of such Act is amended to read as follows:

 

(10) Section 1862(b)(3)(A)(i) of such Act is amended--

 

(11) Section 1866(a)(2)(A) of such Act is amended by inserting a comma after "1813(a)(1)".

(12) Section 1876(g)(1) of such Act is amended by striking out "subsection (b)(1)" and inserting in lieu thereof "subsection (b)".

(13) Section 1886(a)(4) of such Act is amended by striking out "and such costs are determined" and inserting in lieu thereof "as such costs are determined".

(14) Section 1886(b)(1) of such Act is amended by striking out "sections 1814(b)" and inserting in lieu thereof "section 1814(b),".

(15) Section 1886(b)(6)(C) of such Act is amended by striking out "under this subsection" in the matter before clause (i) and inserting in lieu thereof "under this title (taking into account any limitation under subsection (a))".

(16) Section 1903(t)(3) of such Act is amended to read as follows:

"(3) Only for the purposes of computing under this subsection the Federal share of expenditures for a State for fiscal years 1982, 1983, and 1984 (in the case of the payment which may be made for the first quarter of fiscal years 1983, 1984, and 1985, respectively), the Federal medical assistance percentage for fiscal years 1982, 1983, and 1984 shall be the lower of the Federal medical assistance percentage for the State in effect for fiscal year 1981, or the Federal medical assistance percentage for the State in effect for fiscal year 1982.".

(17) Section 1915(c)(2)(B) of such Act is amended by striking out "need for such services" in the matter following clause (iii) and inserting in lieu thereof "need for such skilled nursing facility or intermediate care facility services".

(18) Section 1916(c) of such Act is amended by striking out "this subparagraph" and inserting in lieu thereof "this subsection".

(19) Section 1916(d) of such Act is amended by striking out "unless authorized under this section" and inserting in lieu thereof ", except as provided in subsections (a)(3) and (b)(3)".

(20) Section 1916(d)(5) of such Act is amended by striking out "in which participation is voluntary, or in which provision is made" and inserting in lieu thereof "is voluntary, or makes provision".

(21) Section 1917(b)(2)(B) of such Act is amended by striking out "and has lawfully resided" and inserting in lieu thereof "who has lawfully resided".

(22) Section 1917(c)(2)(B)(iii) of such Act is amended--

 

(23) Subsection (p) of section 210 of such Act (as added by section 269(b) of the Tax Equity and Fiscal Responsibility Act of 1982, relating to treatment of real estate agents) is redesignated as subsection (q).

 

(2) Any amendment to the Social Security Act made by this section shall be effective as if it had been originally included as a part of that provision of the Social Security Act to which it relates, as such provision of such Act was amended or added by the Tax Equity and Fiscal Responsibility Act of 1982.

 

"(3)(A) Notwithstanding the provisions of paragraph (1), the Secretary of Health and Human Services, upon request of the hospice involved, shall permit continuation of a hospice demonstration project described in paragraph (1) until September 30, 1986, if the hospice involved in such demonstration project does not provide hospice care directly but acts as a channeling agency for the provision of hospice care.

 

(1) by striking out "and" at the end of paragraph (1);

(2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof "; and"; and

(3) by inserting after paragraph (2) the following new paragraph:

"(3) the maximum amount of Federal supplemental compensation payable to any individual for whom an account is established under subsection (e) shall not exceed the lesser of (A) the amount established in such account for such individual, or (B) in the case of an individual filing a claim under the interstate benefit payment plan for Federal supplemental compensation, an amount equal to his average weekly benefit amount (as determined for purposes of section 202(b)(1)(C) of the Federal-State Extended Unemployment Compensation Act of 1970) for his benefit year, multiplied by the number '6', '8', or '10', whichever is applicable under subsection (e)(2)(A)(ii) in the State in which such individual is filing such interstate claim under the interstate benefit payment plan for the week in which he is filing such claim.".

 

(1) The amendment made by subsection (a) of section 304 shall take effect as if included in the amendments made by section 3 of the Bankruptcy Tax Act of 1980.

(2) The amendment made by subsection (b) of section 304 shall take effect as if included in the amendments made by section 4 of such Act.

 

(1) The amendment made by subsection (a) of section 305 shall take effect on December 28, 1980.

(2) The amendments made by subsection (b) of section 305 shall take effect on October 14, 1980.

(3) The amendment made by subsection (c) of section 305 shall take effect as if included in the amendments made by section 421 of the Revenue Act of 1978.

(4) The amendments made by subsection (d) of section 305 shall take effect on the date of the enactment of the Subchapter S Revision Act of 1982.

(5) The amendment made by subsection (e) of section 305 shall take effect on the date of the enactment of the Miscellaneous Revenue Act of 1982.