133
redesignating subsections (d) and (e) as (c) and (d),
respectively.
(64) DEALERS IN SECURITIES.—Subsection (b)
of section 1236 is amended by striking ‘‘after No-
vember 19, 1951,’’.
(65) SALE OF PATENTS.—Subsection (a) of sec-
tion 1249 is amended by striking ‘‘after December
31, 1962,’’.
(66) GAIN
FROM
DISPOSITION
OF
FARM
LAND.—Paragraph (1) of section 1252(a) is amend-
ed by striking ‘‘after December 31, 1969,’’ both
places it appears.
(67) TREATMENT OF AMOUNTS RECEIVED ON
RETIREMENT OR SALE OR EXCHANGE OF DEBT IN-
STRUMENTS.—Subsection (c) of section 1271 is
amended by striking paragraph (1).
(68) AMOUNT
AND
METHOD
OF
ADJUST-
MENT.—Section 1314 is amended by striking sub-
section (d) and redesignating subsection (e) as sub-
section (d).
(69) COMPUTATION OF TAX WHERE TAXPAYER
RESTORES
SUBSTANTIAL
AMOUNT
HELD
UNDER
CLAIM OF RIGHT.—Section 1341(a) is amended by
striking the last sentence.
134
(70) ELECTION; REVOCATION; TERMINATION.—
Clause (iii) of section 1362(d)(3) is amended by
striking ‘‘unless’’ and all that follows and inserting
‘‘unless the corporation was an S corporation for
such taxable year.’’.
(71) OLD-AGE, SURVIVORS, AND DISABILITY IN-
SURANCE.—Subsection (a) of section 1401 is amend-
ed by striking ‘‘the following percent’’ and all that
follows and inserting ‘‘12.4 percent of the amount of
the self-employment income for such taxable year.’’.
(72) HOSPITAL INSURANCE.—Subsection (b) of
section 1401 is amended by striking ‘‘the following
percent’’ and all that follows and inserting ‘‘2.9 per-
cent of the amount of the self-employment income
for such taxable year.’’.
(73) MINISTERS, MEMBERS OF RELIGIOUS OR-
DERS, AND CHRISTIAN SCIENCE PRACTITIONERS.—
Paragraph (3) of section 1402(e) is amended by
striking ‘‘whichever of the following dates is later:
(A)’’ and by striking ‘‘; or (B)’’ and all that follows
and by inserting a period.
(74) WITHHOLDING OF TAX ON NONRESIDENT
ALIENS.—The first sentence of subsection (b) of sec-
tion 1441 and the first sentence of paragraph (5) of
section 1441(c) are each amended by striking ‘‘gains
135
subject to tax’’ and all that follows through ‘‘Octo-
ber 4, 1966’’ and inserting ‘‘and gains subject to tax
under section 871(a)(1)(D)’’.
(75) AFFILIATED GROUP DEFINED.—Subpara-
graph (A) of section 1504(a)(3) is amended by strik-
ing ‘‘for a taxable year which includes any period
after December 31, 1984’’ in clause (i) and by strik-
ing ‘‘in a taxable year beginning after December 31,
1984’’ in clause (ii).
(76) DISALLOWANCE
OF
THE
BENEFITS
OF
THE GRADUATED CORPORATE RATES AND ACCUMU-
LATED EARNINGS CREDIT.—
(A) Subsection (a) of section 1551 is
amended by striking paragraph (1) and redesig-
nating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively.
(B) Subsection (b) of section 1551 is
amended by striking ‘‘or (2)’’.
(77) 
PROPERTY
WITHIN
THE
UNITED
STATES.—Subsection (c) of section 2104 is amended
by striking ‘‘With respect to estates of decedents
dying after December 31, 1969, deposits’’ and in-
serting ‘‘Deposits’’.
(78) POWERS OF APPOINTMENT.—Section 2514
is amended by striking subsection (f).
136
(79) CREDITS AGAINST TAX.—
(A) Paragraph (4) of section 3302(f) is
amended by striking ‘‘subsection—’’ and all
that follows through ‘‘(A) IN GENERAL.—’’, by
striking subparagraph (B), by redesignating
clauses (i) and (ii) as subparagraphs (A) and
(B), respectively, and by moving the text of
such subparagraphs (as so redesignated) 2 ems
to the left.
(B) Paragraph (5) of section 3302(f) is
amended by striking subparagraphs (D) and re-
designating subparagraph (E) as subparagraph
(D).
(80) 
DOMESTIC
SERVICE
EMPLOYMENT
TAXES.—Section 3510(b) is amended by striking
paragraph (4).
(81) TAX
ON
FUEL
USED
IN
COMMERCIAL
TRANSPORTATION ON INLAND WATERWAYS.—Section
4042(b)(2)(A) is amended to read as follows:
‘‘(A) The Inland Waterways Trust Fund
financing rate is 20 cents per gallon.’’.
(82) 
TRANSPORTATION
BY
AIR.—Section
4261(e) is amended—
(A) in paragraph (1) by striking subpara-
graph (C), and
137
(B) by striking paragraph (5).
(83) TAXES ON FAILURE TO DISTRIBUTE IN-
COME.—Section 4942 is amended—
(A) by striking subsection (f)(2)(D),
(B) in subsection (g)(2)(A) by striking
‘‘For all taxable years beginning on or after
January 1, 1975, subject’’ and inserting ‘‘Sub-
ject’’,
(C) in subsection (g) by striking paragraph
(4), and
(D) in subsection (i)(2) by striking ‘‘begin-
ning after December 31, 1969, and’’.
(84) TAXES
ON
TAXABLE
EXPENDITURES.—
Section 4945(f) is amended by striking ‘‘(excluding
therefrom any preceding taxable year which begins
before January 1, 1970)’’.
(85) RETURNS.—Subsection (a) of section
6039D is amended by striking ‘‘beginning after De-
cember 31, 1984,’’.
(86) INFORMATION RETURNS.—Subsection (c)
of section 6060 is amended by striking ‘‘year’’ and
all that follows and inserting ‘‘year.’’.
(87) ABATEMENTS.—Section 6404(f) is amend-
ed by striking paragraph (3).
138
(88) FAILURE BY CORPORATION TO PAY ESTI-
MATED
INCOME
TAX.—Clause 
(i) 
of 
section
6655(g)(4)(A) is amended by striking ‘‘(or the cor-
responding provisions of prior law)’’.
(89) RETIREMENT.—Section 7447(i)(3)(B)(ii)
is amended by striking ‘‘at 4 percent per annum to
December 31, 1947, and at 3 percent per annum
thereafter’’, and inserting ‘‘at 3 percent per
annum’’.
(90) ANNUITIES TO SURVIVING SPOUSES AND
DEPENDENT CHILDREN OF JUDGES.—
(A) Paragraph (2) of section 7448(a) is
amended by striking ‘‘or under section 1106 of
the Internal Revenue Code of 1939’’ and by
striking ‘‘or pursuant to section 1106(d) of the
Internal Revenue Code of 1939’’.
(B) Subsection (g) of section 7448 is
amended by striking ‘‘or other than pursuant to
section 1106 of the Internal Revenue Code of
1939’’.
(C) Subsection (j)(1) and (j)(2) of section
7448 are each amended by striking ‘‘at 4 per-
cent per annum to December 31, 1947, and at
3 percent per annum thereafter’’ and inserting
‘‘at 3 percent per annum’’.
139
(91) MERCHANT MARINE CAPITAL CONSTRUC-
TION FUNDS.—Paragraph (4) of section 7518(g) is
amended by striking ‘‘any nonqualified withdrawal’’
and all that follows through ‘‘shall be determined’’
and inserting ‘‘any nonqualified withdrawal shall be
determined’’.
(92) VALUATION
TABLES.—Paragraph (3) of
section 7520(c) is amended—
(A) by striking ‘‘Not later than December
31, 1989, the’’ and inserting ‘‘The’’, and
(B) by striking ‘‘thereafter’’ in the last
sentence thereof.
(93) ADMINISTRATION
AND
COLLECTION
OF
TAXES IN POSSESSIONS.—Section 7651 is amended
by striking paragraph (4) and redesignating para-
graph (5) as paragraph (4).
(94) DEFINITION OF EMPLOYEE.—(A) Section
7701(a)(20) is amended by striking ‘‘chapter 21’’
and all that follows and inserting ‘‘chapter 21.’’.
(b) EFFECTIVE DATE.—
(1) GENERAL RULE.—Except as otherwise pro-
vided in paragraph (2), the amendments made by
subsection (a) shall take effect on the date of enact-
ment of this Act.
(2) SAVINGS PROVISION.—If—
140
(A) any provision amended or repealed by
subsection (a) applied to—
(i) any transaction occurring before
the date of the enactment of this Act,
(ii) any property acquired before such
date of enactment, or
(iii) any item of income, loss, deduc-
tion, or credit taken into account before
such date of enactment, and
(B) the treatment of such transaction,
property, or item under such provision would
(without regard to the amendments made by
subsection (a)) affect the liability for tax for pe-
riods ending after such date of enactment,
nothing in the amendments made by subsection (a)
shall be construed to affect the treatment of such
transaction, property, or item for purposes of deter-
mining liability for tax for periods ending after such
date of enactment.
Æ