An Act to amend the Internal Revenue Code of 1954 with regard to the exempt status of veterans' organizations
PL 92-418 (H.R.11185), enacted 08/29/1972

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PUBLIC LAW 92-418-AUG. 29, 1972 
[86 
STAT. 
Certificat 
Congress. 
"(c) If a claim, under this section is settled or comi>romised for 
tiiore than $100,000, the Secretary shall certify it to Congress." 
(b) Chapter 17 of title 14, United States Code, is amended by 
strikmg out the following item in the analysis: 
"646. Claims for damages occasioned by vessels." 
and inserting the following item in pla<?e thereof: 
^ 
"646. Admiralty claims against the United States." 
SEC. 3. Section 9 of the Act of March 9,1920, chapter 9, as amended 
(41 Stat. 527, as amended; 46 U.S.C. 749) is amended by striking out 
the words "having control of the possession or operation of any 
merchant vessel.'' 
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Approved August 29, 1972. 
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Public Law 92-418 
August 29, 1972 
[H. R.11185] 
Veterans' 
organizations. 
Tax exempt 
status. 
68A Stat. 163; 
83 Stat. 541. 
26 u s e 501. 
AN ACT 
83 Stat. 537. 
Supra, 
83 Stat. 549. 
Effective date. 
76 Stat. 5 1 . 
To amend the Internal Revenue Code of 1954 with regard to the exempt status 
of veterans' organizations, and for other purposes. 
Be it enacted by the /Senate and House of Representatives 
of the 
United States of America in Congress assembled, That (a) section 
501(c) of the Internal Eevenue Code of 1954 (relating to list of 
exempt organizations) is amended by adding at the end thereof the 
following new paragraph: 
"(19) A post or organization of war veterans, or an auxiliary 
unit or society of, or a trust or foundation for, any such post or 
organization— 
"(A) organized in the United States or any of its 
possessions, 
"(B) at least 75 percent of the members of which are war 
veterans and substantially all of the other members of which 
are individuals who are veterans (but not war veterans), or 
are cadets, or are spouses, widows, or widowers of war 
veterans or such individuals, and 
,,it> 
< 
"(C) no part of the net earnings of which inures to the 
benefit of any private shareholder or individual.''. 
(b) Section 512(a) of such Code (relating to definition of unrelated 
business taxable income) is amended by adding at the end thereof 
the following new paragraph: 
"(4) 
SPECIAL RULE APPLICABLE TO ORGANIZATIONS DESCRIBED IN 
?n 
SECTION 501(0(19).—In the case of an organization described 
••,} in section 501(c) (19), the term 'unrelated business taxable 
income' does not include any amount attributable to payments for 
life, sick, accident, or health insurance with respect to members 
of such organizations or their dependents which is set aside 
for the purpose of providing for the payment of insurance benefits 
or for a purpose specified in section 170(c) (4). If an amount set 
»
i
s aside under the preceding sentence is used during the taxable 
p
> 
year for a purpose other than a purpose described in the preceding 
sentence, such amount shall be included, under paragraph (1), in 
unrelated business taxable income for the taxable year.'' 
(c) The amendments made by this section shall apply to taxable 
years beginning after December 31,1969. 
SEC. 2. (a) Section 165(h) of the Internal Revenue Code of 1954 
(relating to disaster losses) is amended by— 
(1) striking out the first sentence and inserting in lieu thereof 
86 STAT. ] 
PUBLIC LAW 92-419-AUG. 30, 1972 
657 
the following: "Notwithstanding the provisions of subsection (a), 
any loss attributable to a disaster occurring in an area subse-
quently determined by the President of the United States to 
warrant assistance by the Federal Government under the Disaster 
Relief Act of 1970 may, at the election of the 
taxpayer, be 
deducted for the taxable year immediately preceding the taxable 
year in which the disaster occurred."; and 
(2) inserting before the period in the second sentence a comma 
and the following: "based on facts existing at the date the tax-
payer claims the loss", 
(b) Section 6405 of such Code (relating to reports of refunds and 
credits to the Joint Committee on Internal Revenue Taxation) is 
amended by adding at the end thereof the following new subsection: 
"(d) 
REFUNDS ATTRIBUTABLE TO CERTAIN DISASTER LOSSES.—If any 
refund or credit of income taxes is attributable to the taxpayer's elec-
tion under section 165 (h) to deduct a disaster loss for the taxable year 
immediately preceding the taxable year in which the disaster occurred, 
the Secretary or his delegate is authorized in his discretion to make 
the refund or credit, to the extent attributable to such election, without 
ard to the provisions of subsection (a) of this section. If such 
re 
refund or credit is made without regard to subsection (a), there shall 
thereafter be submitted to such Joint Committee a report containing 
the matter specified in subsection (a) as soon as the Secretary or his 
delegate shall determine the correct amount of the tax for the taxable 
year for which the refund or credit is made." 
(c) The amendment made by subsection (a) shall apply to disasters 
occurring after December 31, 1971, in taxable years ending after such 
date. The amendment made by subsection (b) shall apply with respect 
to refunds or credits made after July 1,1972. 
Approved August 29, 1972. 
84 Stat. 1744. 
42 u s e 4401 
note. 
68A Stat. 792. 
26 u s e 6405. 
Ante, 
p. 656. 
Report to con-
gressional com-
mittee. 
Effective dates. 
Public Law 92-419 
AN ACT 
I To provide for improving the economy and living conditions in rural America. 
August 30, 1972 
[H. R.12931] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Rural Development Act of 1972". 
Rural Develop-
ment Act of 1972, 
TITLE I—AMENDMENTS TO T H E CONSOLIDATED FARM-
ERS HOME ADMINISTRATION ACT OF 1961 
' SEC. 101. SHORT TITLE.—Section 301(a) of the Consolidated Farm-
ers Home Administration Act of 1961 is amended to read as follows: 
"(a) This title may be cited as the 'Consolidated Farm and Rural 
Development Act'." 
SEC. 102. RURAL ENTERPRISE LOANS.—Section 304 of the Consoli-
dated Farmers Home Administration Act of 1961 is amended by— 
(1) inserting " ( a ) " before the first sentence and striking out 
" ( a ) " and " (b)" in the first sentence; and 
75 Stat. 307. 
7 u s e 1921 
note. 
75 Stat. 308; 
82 Stat. 770. 
7 u s e 1924.