An Act to amend section 815 of the Internal Revenue Code to allow a life insurance company to disregard (for purposes of that section) a distribution during the last month of its taxable year, determined to have been made out of the policyholders surplus account, if such distribution is returned to the company not later than the due date for filing its income tax return (including extensions thereof) for that year, and for other purposes.
PL 94-331 (H.R.10051), enacted 06/30/1976

PUBLIC LAW 94-331—JUNE 30, 1976 
90 STAT. 781 
Public Law 94-331 
94th Congress 
An Act 
To amend section 815 of the Internal Revenue Code to allow a life insurance 
company to disregard (for purposes of that section) a distribution during the 
last month of its taxable year, determined to have been made out of the 
policyholders surplus account, if such distribution is returned to the company 
not later than the due date for filing its income tax return (including extensions 
thereof) for that year, 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 
815(d) of the Internal Revenue Code of 1954 (relating to special 
rules for distributions to shareholders) is amended by adding at the 
end thereof the following new paragraph: 
"(6) 
RESTORATION OF AMOUNTS DISTRIBUTED OUT or 
POLICY-
HOLDERS SURPLUS ACCOUNT.—Notwithstanding any other provision 
of this subchapter, no amount shall be subtracted from a tax-
payer's policyholders surplus account with respect to a distribution 
made during the last month of the taxable year which, without 
regard to this paragraph, would be treated in whole or in part as 
a distribution out of the policyholders surplus account, to the 
extent that amounts so distributed are returned to the taxpayer no 
later than the time prescribed by law (including extensions 
thereof) for filing the taxpayer's return for the taxable year in 
which the distribution was made. For purposes of this paragraph, 
amounts returned to a taxpayer with respect to a distribution shall 
be first applied to the return of amounts which, without regard 
to this paragraph, would have been treated as distributed out of 
the policyholders surplus account. This paragraph shall not apply 
if, at the time such distribution was made, the taxpayer intended 
to avail itself of the provisions of this paragraph by having its 
shareholders return all or a part of such distribution. Nothing in 
this paragraph shall affect the tax treatment of the receipt of the 
distribution by any shareholder, and the basis to a shareholder of 
his stock in the taxpayer shall not be increased by reason of 
amounts returned under this paragraph to the extent that a divi-
dends leceived deduction or exclusion was allowable in respect of 
the distribution of such amount under any provision of this title.", 
(b) The amendment made by this section shall apply with respect 
to taxable years ending after December 31, 1957. 
SEC. 2
. 
EXCLUSION FROM INCOME UNDER THE SUPPLEMENTAL 
SECURITY 
INCOME 
PROGRAM. 
(a) I N GENERAL.—Section 1612(b) of the Social Security Act is 
amended— 
(1) by striking out the word "and" which appears at the end 
of paragraph (9), 
(2) by striking out the period at the end of paragraph (10) 
and by inserting in lieu thereof "; and", 
(3) by inserting the following new paragraph: 
"(11) assistance received under the Disaster Relief Act of 1974 
or other assistance provided pursuant to a Federal statute on 
account of a catastrophe which is declared to be a major disaster 
by the President.". 
June 30, 1976 
[H.R. 10051]' 
Life insurance 
companies, 
certain 
distributions out 
of policyholders 
surplus account, 
restoration; 
Social Security 
Act, 
amendments. 
26 use 815. 
Effective date. 
26 use 815 note. 
42 use 1382a, 
42 use 5121 
note. 
90 STAT. 782 
PUBLIC LAW 94-331—JUNE 30, 1976 
42 use 1382a 
(b) EFFECTIVE DATE.—The amendments made by this Act shall be 
note. 
applicable only in the case of catastrophes which occur on or after 
June 1, 1976 and before December 31, 1976. 
SEC. 3. WITHHOLDING; ESTIMATED TAX PAYMENTS. 
(a) 
WITHHOLDING.— 
(1) I N GENERAL.—Section 3402(a) of the Internal Revenue 
26 use 3402. 
Code of 1954 (relating to income tax collected at source) is 
amended by striking out "July 1. 1976" and inserting in lieu 
thereof "September 1, 1976". 
(2) TECHNICAL 
AMENDMENT.—Section 
209(c) 
of 
the 
Tax 
26 use 3402 
Reduction Act of 1975 is amended by striking out "July 1, 1976" 
"°*®- 
and inserting in lieu thereof "September 1, 1976". 
(b) ESTIMATED TAX PAYMENTS BY INDIVIDUALS.—Section 6153(g) 
26 use 6153. 
of such Code (relating to installment payments of estimated income 
by individuals) is amended by striking out "July 1, 1976" and insert-
ing in lieu thereof "September 1, 1976". 
(c) ESTIMATED TAX PAYMENTS BY CORPORATIONS.—Section 6154(h) 
26 use 6154. 
of such Code (relating to installment payments of estimated income by 
corporations) is amended by striking out "July 1, 1976" and inserting 
in lieu thereof "September 1, 1976". 
SEC. 
4. AMENDMENT TO SUPPLEMENTAL 
SECURITY 
INCOME 
PROGRAM. 
Unearned 
(a) I N GENERAL.—Section 1612(a)(2)(A) of the Social Security 
income. 
^ c t is amended— 
42 use 1382a. 
^ ^ j^y striking out the word "and" which appears at the end 
of clause (i) thereof and by inserting a comma in lieu of such 
word, and 
(2) by inserting immediately before the semicolon at the end 
thereof the following: ", and (iii) support and maintenance shall 
not be included and the provisions of clause (i) shall not be 
applicable in the case of any individual (and his eligible spouse, 
if any) for the period which begins with the month in which 
such individual (or such individual and his eligible spouse) began 
to receive support and maintenance while living in a residential 
facility (including a private household) maintained by another 
person and ends with the close of the month in which such indi-
vidual (or such individual and his eligible spouse) ceases to 
receive support and maintenance while living in such a residential 
facility (or, if earlier, with the close of the fifth month following 
the month in which such period began), if, not more than 30 days 
prior to the date on which such individual (or such individual 
and his eligible spouse) began to receive support and maintenance 
while living in such a residential facility, (I) such individual 
(or such individual and his eligible spouse) were residing in a 
household maintained by such individual (or by such individual 
and others) as his or their own home, ( I I ) there occurred within 
the area in which such household is located (and while such indi-
vidual, or such individual and his spouse, were residing in the 
household referred to in subclause ( I ) ) a catastrophe on account 
of which the President declared a major disaster to exist therein 
PUBLIC LAW 94-331—JUNE 30, 1976 
90 STAT. 783 
for purposes of the Disaster Relief Act of 1974, and (III) such 42 USC 5121 
individual declares that he (or he and his eligible spouse) ceased "ot^-
to continue living in the household referred to in subclause (II) 
because of such catastrophe", 
(b) EFFECTIVE DATE.—The amendments made by this Act shall be 26 USC 1382a 
applicable only in the case of catastrophes which occur on or after "°*®-
June 1,1976 and before December 31,1976. 
Approved June 30, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-1263 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
June 22, considered and passed House. 
June 28, considered and passed Senate, amended. 
June 29, House agreed to Senate amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 12, No. 27: 
June 30, Presidential statement. 
89-194 0—78—pt. 1 
53