An act to continue through May 31, 1981, the existing prohibition on the issuance of fringe benefit regulations, and for other purposes.
PL 96-167 (H.R.5224), enacted 12/29/1979

PUBLIC LAW 96-167—DEC. 29, 1979 
93 STAT. 1275 
Public Law 96-167 
96th Congress 
An Act 
To continue through May 31,1981, the existing prohibition on the issuance of fringe 
Dec. 29,1979 
benefit regulations, and for other purposes. 
[H.R. 5224] 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled. 
Fringe benefit 
regulations, 
SECTION 
1. PROHIBITION 
OF ISSUANCE OF FRINGE 
BENEFIT prohibition. 
REGULATIONS. 
Section 1 of the Act entitled "An Act to prohibit the issuance of 
regulations on the taxation of fringe benefits, and for other pur-
poses", approved October 7,1978 (Public Law 95-427), is amended by 26 use 6i note, 
striking out "December 31,1979" each place it appears and inserting 
in lieu thereof "May 31,1981". 
SEC. 2. COMMUTING EXPENSES. 
Section 2 of the Act entitled "An Act to prohibit the issuance of 
regulations on the taxation of fringe benefits, and for other pur-
poses", approved October 7,1978 (Public Law 95-427), is amended by 26 use 62 note. 
striking out "December 31,1979" and inserting in lieu thereof "May 
31,1981". 
SEC. 3. STATE LEGISLATORS' TRAVEL EXPENSES AWAY FROM HOME. 
(a) GENERAL RULE.—Subsection (a) of section 604 of 
the Tax Reform 
Act of 1976 (relating to State legislators' travel expenses away from 26 use 162 note. 
home)isamended-
(1) by striking out "who elects the application" and inserting in 
lieu thereof "who, for the taxable year, elects the application", 
and 
(2) by striking out "January 1, 1978" and inserting in lieu 
thereof "January 1,1981". 
(b) TECHNICAL AMENDMENT.—Effective for taxable years beginning 
after December 31, 1977, subsection (d) of section 604 of the Tax 
Reform Act of 1976 is amended by striking out the last sentence. 
SEC. 4. PAYMENT OF INTEREST WHERE LEVY HAS BEEN WRONGFULLY 
MADE AND MONEY RECEIVED BY UNITED STATES. 
(a) IN GENERAL.—Section 6343 of 
the Internal Revenue Ck)de of 1954 2
6 use 6343. 
(relating to release of lew and return of proper^) is amended by 
adding at the end thereof the following new subsection: 
"(c) INTEREST.—Interest shall be allowed and paid at an annual rate 
established under section 6621— 
26 use 6621. 
"(1) in a case described in subsection 03X2), from the date the 
Secretary receives the money to a date (to be determined by the 
Secretary) preceding the date of return by not more than 30 days, 
^ -" 
or 
"(2) in a case described in subsection 0>X3), from the date of the 
sale of the property to a date (to be determined by the Secrets^) 
preceding tne date of 
return by not more than 30 days." 
(b) TECHNICAL AMENDMENT.—Subsection (a) of section 6621 of such 
Code is amended to read as follows: 
93 STAT. 1276 
PUBLIC LAW 96-167—DEC. 29, 1979 
26 use 6343 
note. 
26 use 6621 
note. 
26 use 6050. 
26 use 6041. 
26 use 6050 
note. 
26 u s e 6658. 
26 u s e 6651. 
Effective date. 
26 u s e 6658 
note. 
26 u s e 6039. 
Regulations. 
26 u s e 423. 
26 u s e 424. 
"(a) IN GENERAL.—The annual rate established under this section 
shall be such adjusted rate as is established by the Secretary under 
subsection (b)." 
(c) EFFECTIVE DATES.— 
(1) The amendment made by subsection (a) shall apply to levies 
made after the date of 
the enactment of 
this Act. 
(2) The amendment made by subsection (b) shall take effect on 
the date of 
the enactment of 
this Act. 
SEC. 5. REPEAL OF REQUIREMENT THAT TRANSFERORS OF CERTAIN 
PROPERTY 
TO 
EXEMPT 
ORGANIZATIONS 
MUST 
FILE 
RETURNS. 
(a) GENERAL RULE.—Section 6050 of the Internal Revenue Code of 
1954 (relating to returns relating to certain transfers to exempt 
organizations) is hereby repealed. 
(b) CLERICAL AMENDMENT.—The table of sections for subpart B of 
part III of subchapter A of chapter 61 of such Code is amended by 
striking out the item relating to section 6050. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply to transfers after the date of the enactment of this Act. 
SEC. 6. REPEAL OF ADDITION TO TAX IN CASE OF JEOPARDY. 
(a) GENERAL RULE.—Section 6658 of the Internal Revenue Code of 
1954 (relating to addition to tax in case of jeopardy) is hereby 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections for subchapter A 
of chapter 68 of such Code is amended by striking out the item 
relating to section 6658. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply to violations (or attempted violations) occuring after the date of 
the enactment of this Act. 
SEC. 7. REPEAL OF REQUIREMENTS THAT INFORMATION BE FURNISHED 
TO THE SERVICE IN CONNECTION WITH CERTAIN OPTIONS. 
(a) GENERAL RULE.—Section 6039 of the Internal Revenue Code of 
1954 (relating to information required in connection with certain 
options) is amended to read sis follows: 
"SEC. 6039. INFORMATION REQUIRED IN CONNECTION WITH CERTAIN 
OPTIONS. 
"(a) FURNISHING OF INFORMATION.—Every corporation— 
"(1) which in any calendar year transfers a share of stock to 
any person pursuant to such person's exercise of a qualified stock 
option or a restricted stock option, or 
"(2) which in any calendar year records (or has by its agent 
recorded) a transfer of the legal title of a share of stock— 
"(A) acquired by the transfer or pursuant to his exercise of 
an option described in section 423(c) (relating to special rule 
where option price is between 85 percent and 100 percent of 
value of stock), or 
"(B) acquired by the transferor pursuant to his exercise of 
a restricted stock option described in section 424(cXl) (relat-
ing to options under which option price is between 85 
percent and 95 percent of 
value of stock), 
shall (on or before Januarjr 31 of the following calendar year) 
furnish to such person a written statement in such manner and 
setting forth such information as the Secretary may by regula-
tions prescribe. 
"(b) SPECIAL RULES.—For purposes of 
this section— 
PUBLIC LAW 96-167—DEC. 29, 1979 
93 STAT. 1277 
"(1) TREATMENT BY EMPLOYER TO BE DETERMINATIVE.—Any 
option which the corporation treats as a qualified stock option, a 
restricted stock option, or an option granted under an employee 
stock purchase plan shall be deemed to be such an option. 
"(2) SUBSECTION (a) (2) APPUES ONLY TO FIRST TRANSFER DE-
SCRIBED THEREIN.—A statement is required by reason of a trans-
fer described in subsection (a)(2) of a share only with respect to 
the first transfer of such share by the person who exercised the 
option. 
"(3) IDENTIFICATION OP STOCK.—Any corporation which trans-
fers any share of stock pursuant to the exercise of any option 
described in subsection (a)(2) shall identify such stock in a 
manner adequate to carry out the purposes of this section. 
"(c) CROSS REFERENCES.— 
"For deflnition of^ 
"(1) The term 'qualifled stock option', see section 422(b). 
"(2) The term 'employee stock purchase plan', see section 423(b). 
_
, 
» 
"(3) The term 'restricted stock option', see section 424(b)." 
(b) TECHNICAL AMENDMENTS.— 
(1) Subsection (a) of section 6652 of such Code is amended— 
26 use 6652. 
(A) by inserting "or" at the end of paragraph (1), 
(B) by striking out paragraph (2) and resdesignating para-
graph (3) as paragraph (2), and 
(C) by striking out "return referred to in paragraph (2) or 
(3)" and inserting in lieu thereof "return referred to in 
paragraph (2)". 
(2) Section 6678 of such Code (relating to penalty for failure to 26 use 6678. 
furnish certain statements) is amended to read as follows: 
"SEC. 6678. FAILURE TO FURNISH CERTAIN STATEMENTS. 
"In the case of each failure— 
"(1) to furnish a statement under section 6042(c), 6044(e), 2
6 use 6042. 
6049(c), or 6052(b), on the date prescribed therefor to a person ^6 use 6044. 
with respect to whom a return has been made under section ^c- jTcp finco 
6042(aXl), 6044(aXl), 6049(a)(1), or 6052(a), respectively, or 
"(2) to furnish a statement under section 6039(a) on the date 2
6 use 6039. 
prescribed therefor to a person with respect to whom such a 
statement is required, 
unless it is shown that such failure is due to reasonable cause and not 
^,, -, 
to willful neglect, there shall be paid (upon notice and demand by the 
Secretary and in the same manner as tax) by the person failing to so 
furnish the statement $10 for each such statement not so furnished, 
but the total amount imposed on the delinquent person for all such 
failures during any calendar year shall not exceed $25,000." 
(c) EFFECTIVE DATE.—The amendments made by this section shall Effective date. 
apply with respect to calendar years beginning after 1979. 
note^^ ^^^^ 
SEC. 8. EXTENSION OF TIME FOR FILING GIFT TAX RETURN FOR FOURTH 
CALENDAR QUARTER. 
(a) GENERAL RULE.—Paragraph (1) of section 6O750t)) of the Internal 
Revenue Code of 1954 (relating to due date for gift tax returns) is 2
6 use 6075. 
amended to read as follows: 
"(1) GENERAL RULE.—Except as provided in paragraph (2), 
returns made under section 6019 (relating to gift taxes) shall be 2
6 use 6019. 
filed on or before— 
"(A) in the case of a return for the first, second, or third 
calendar quarter of any calendar year, the 15th day of the 
second month following the close of the calendar quarter, or 
93 STAT. 1278 
PUBLIC LAW 96-167—DEC. 29, 1979 
"(B) in the case of a return for the fourth calendar quarter 
of anj^ calendar year, the 15th day of the fourth month 
following the close of 
the calendar quarter." 
(b) EXTENSION OP DATE FOR FILING INCOME TAX RETURN TREATED AS 
EXTENSION OP DATE POR FILING GIFT TAX RETURN.—Subsection (b) of 
26 use 6075. 
section 6075 of such Code is amended by redesignating paragraph (3) 
as paragraph (4) and by inserting after paragraph (2) the following 
new paragraph: 
"(3) EXTENSION WHERE TAXPAYER GRANTED EXTENSION FOR 
FILING INCOME T
A
X RETURN.—Any extension of time granted the 
taxpayer for filing the return of income taxes imposed by subtitle 
A for any taxable year which is a calendar year shall be deemed 
to be also an extension of time granted the taxpayer for filing the 
26 use 6019. 
return under section 6019 for the fourth calendar quarter of such 
taxable year." 
(c) TECHNICAL AMENDMENTS.—Paragraph (2) of section 6075(b) of 
26 use 6075. 
such Code is amended— 
(1) by striking out "the 15th day of the second month after" and 
inserting in lieu thereof "the date prescribed by paragraph (1) for 
filing the return for", and 
(2) by striking out "the close of" in subparagraphs (A) and (B). 
Effective date. 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
note 
^^^^ 
apply to returns for gifts made in calendar years ending after the date 
of 
the enactment of this Act. 
SEC. 9. EXTENSION OF CERTAIN TEMPORARY TAX PROVISIONS. 
(a) GOVERNMENT HEALTH PROFESSIONS SCHOLARSHIP PROGRAMS.— 
26 use 117 note. Subsection (c) of section 4 of Public Law 93-483, as amended, is 
amended— 
(1) by striking out "1980" and inserting in lieu thereof "1981", 
and 
(2) by striking out "1984" and inserting in lieu thereof "1985". 
(b) NATIONAL RESEARCH SERVICE AWARDS.—Paragraph (2) of sec-
92 Stat. 2810. 
tion 161(b) of the Revenue Act of 1978 (relating to national research 
26 use 117 note, gervice awards) is amended by striking out "1979" and inserting in 
lieu thereof "1980". 
(c) DEDUCTION FOR ELIMINATING ARCHITECTURAL AND TRANSPORTA-
TION BARRIERS TO THE HANDICAPPED.—Subsection (c) of section 2122 of 
26 use 190 note, the Tax Reform Act of 1976 (relating to effective date for allowance of 
deduction for eliminating architectural and transportation barriers 
to the handicapped) is amended by striking out "January 1,1980" and 
inserting in lieu thereof "January 1,1983 . 
(d) CONTROVERSIES INVOLVING WHETHER INDIVIDUALS ARE EM-
PLOYEES F
O
R PURPOSES OF THE EMPLOYMENT TAXES.— 
(1) IN GENERAL.—Subsection (a) of section 530 of the Revenue 
92 Stet. 2885. 
Act of 1978 (relating to termination of certain employment tax 
26 use 3401 
liability for periods before 1980) is amended— 
(A) by striking out "January 1,1980" in paragraphs (1)(A) 
and (3) and inserting in lieu thereof "January 1, 1981", 
(B) by striking out "1980" in the subsection heading and 
inserting in lieu thereof "1981", and 
(C) by striking out "1979" in the heading for paragraph (3) 
and inserting in lieu thereof "1979 and 1980". 
(2) PROHIBITION 
AGAINST REGULATIONS 
AND RUUNGS ON 
E
M
P
L
O
Y
M
E
N
T STATUS.—Subsection (b) of section 530 of the Reve-
nue Act of 1978 is amended by striking out "January 1,1980" and 
inserting in lieu thereof "January 1,1981". 
PUBLIC LAW 96-167—DEC. 29, 1979 
93 STAT. 1279 
(e) ADDITIONAL 2-YEAR DELAY IN APPLICATION OF THE NET OPERAT-
ING Loss RULES ADDED BY THE TAX REFORM ACT OP 1976.—Para- ?^H?S1'^°*® 
eraphs (2) and (3) of section 806(g) of the Tax Reform Act of 1976 26 use 382 not 
U^lating to effective dates for the amendments to sections 382 and 
883 ofme Internal Revenue Code of 1954) are amended by striking 26 use 382. 
out "1980" each place it appears and inserting in lieu thereof "1982'\ ^6 use 383. 
Approved December 29, 1979. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-448 (eomm. on Ways and Means). 
SENATE REPORT No. 96-433 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 125 (1979): 
Oct. 9, considered and passed House. 
Dec. 7, considered and passed Senate, amended. 
Dec. 19, House concurred in Senate amendment with an amendment. 
Dec. 20, Senate concurred in House amendment.