An Act amending certain estate tax provisions of the Internal Revenue Code of 1939
PL 89-359 (H.R.10185), enacted 03/07/1966

28 
PUBLIC LAW 89-359-MAR. 7, 1966 
[80 STAT. 
72 Stat. 1169; 
75 Stat. 512. 
54 Stat. 1181. 
64 Stat. 1117. 
72 Stat. 1106. 
77 Stat. 135. 
DECEASED 
VETERANS—FLAGS 
SEC. 9. Section 901 (a) (1) of title 38, United States Code, is amended 
by striking out "or of Mexican border service" and inserting in lieu 
thereof ", of Mexican border service, or of service after January 31, 
1955". 
SOLDIERS' AND SAILORS' CIVIL RELIEF ACT 
SEC. 10. Subsection (1) of section 300 of the Soldiers' and Sailors' 
Civil Relief Act of 1940, as amended (50 App. U.S.C. 530), is amended 
by striking out "$80" and inserting in lieu thereof "$150". 
VETERANS' PREFERENCE 
SEC. 11. Section 2 of the Veterans' Preference Act of 1944, as 
amended (5 U.S.C. 851), is amended by striking out "and" at the end 
of clause (5) and by striking out the period at the end of such section 
and insertmg in lieu thereof a semicolon and the following: "and (7) 
those ex-service men and women who have served on active duty (as 
defined in section 101(21) of title 38, United States Code) at any time 
in any branch of the Armed Forces of the United States for a period 
of more than one hundred and eighty consecutive days after Janu-
ary 31,1955, not including service under the provisions of section 511 
(d) of title 10, United States Code, pursuant to an enlistment in the 
Army National Guard or the Air National Guard or as a Reserve for 
service in the Army Reserve, Naval Reserve, Air Force Reserve, 
Marine Corps Reserve, or Coast Guard Reserve, and who have been 
separated from such Armed Forces under honorable conditions." 
EFFECTIVE DATES 
SEC. 12. (a) Except as otherwise specifically provided, the provisions 
of this Act shall take effect on the date of its enactment, but no edu-
cational assistance allowance shall be payable under chapter 34 of title 
38, United States Code, as added by section 2 of this Act, for any 
period before June 1, 1966, nor for the month of June 1966, unless 
(1) the eligible veteran commenced the pursuit of the course of educa-
tion on or after June 1, 1966, or (2) the pursuit of such course 
continued through June 30, 1966. 
(b) The provisions of section 1765(b) of title 38, United States 
Ante, p. 20. 
Code, as in effect immediately before the enactment of this Act, shall 
remain in effect through May 31, 1966. 
Approved March 3, 1966. 
Public Law 89-359 
» 
u . , n . . 
AN ACT 
March 7, 1966 
[H. R. 10185] 
Ameiuling certain estate tax provisions of the Internal Revenue Code of 1939. 
Be it enacted l)y the Senate and House of Representatives 
of the 
IRC 1939, 
United States of America in Congress oMsernbled^ That (a) the last 
"53"s^l"i3 6. 
sentence of section 894(a) of the Internal Revenue Code of 1939 
(relating to the penalty in the case of a false or fraudvilent estate tax 
return) is amended to read as follows: "If any part of any deficiency 
is due to fraud with intent to evade tax, then 50 per centum of the 
total amount of the deficiency (in addition to such deficiency) shall be 
assessed, collected, and paid, in lieu of the 50 per centum addition to 
53 Stat. 437. 
^j^g ^^^ provlded in section 3612(d) (2)." 
(b) Section 871 (i) of such code (relating to method of assessment) 
is amended by striking out "section 3612(d) (2)" and inserting in lieu 
thereof "section 894(a)''-
53 Stat. 132. 
53 Stat. 119. 
80 STAT.] 
PUBLIC LAW 89-361-MAR. 7, 1966 
29 
(c) The amendments made by this Act shall be applicable with 
respect to estates of decedents subject to the provisions of chapter 3 
of the Internal Revenue Code of 1939. No interest shall be paid or 
allowed on any refund or credit of any overpayment attributable to 
such amendments. 
^Approved March 7, 1966. 
Public Law 89-360 
AN ACT 
March 7, 1966 
To extend the statutory burial allowance to certain veterans whose deaths occur 
[H. R. iiooe] 
as a result of a service-connected disability. 
Veterans. 
Burial allow-
ance. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 902(a) 
of title 38, United States Code, is amended to read as follows: 
"(a) Where a veteran dies— 
^2 stat. 1169 
"(1) of a service-connected disability; or 
"(2) who was (A) a veteran of any war; (B) discharged from 
the active military, naval, or air service for a disability incurred 
or aggravated in fine of duty; or (C) in receipt of (or out for the 
receipt of retirement pay would have been entitled to) disability 
compensation; 
the Administrator, in his discretion, having due regard to the cir-
cumstances in each case, may pay a sum not exceeding $260 to such 
person as he prescribes to cover the burial and funeral expenses of the 
deceased veteran and the expense of preparing the bodj and trans-
porting it to the place of burial. For the purpose of this subsection. 
the term 'veteran' includes a person who died during a period deemed 
to be active military, naval, or air service under section 106(c) of this 
title." 
75 Stat. 219. 
Approved March 7, 1966. 
Public Law 89-361 
AN ACT 
March 7, 1966 
To provide statutory authority for the Deputy Administrator of Veterans' 
[H. R. iioo?] 
Affairs to assume the duties of Administrator during the absence or disability 
of the Administrator, or during a vacancy in that office, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That (a) section • ^^^^^'^l^^^'^"''' 
210 of title 38, United States Code, is amended by adding a new eran^s°A°fairt. 
subsection (d) to read as follows: 
"(d) There shall be in the Veterans' Administration a Deputy 
Administrator of Veterans' Affairs who shall be appointed by the 
Administrator. 
The Deputy Administrator shall perform such func-
tions as the Administrator shall designate and, unless the President 
shall designate another officer of the Government, shall be Acting 
Administrator of Veterans' Affairs during the absence or disability 
of the Administrator or in the event of a vacancy in the office of 
Administrator." 
(b) The catchline of such section 210 is amended by adding 
"; Deputy Administrator" at the end thereof. 
(c) The analysis at the head of chapter 3 of such title 38, regard-
ing section 210, is amended by deleting the period at the end thereof 
and inserting the following: "; Deputy Administrator. " 
72 Stat. 1114. 
65-300 0-67—5