An Act to provide floor stock refunds in the case of cement mixers
PL 91-678 (H.R.17658), enacted 01/12/1971

2062 
PUBLIC LAW 91-678-JAN. 12, 1971 
[84 STAT. 
Effective date. 
(d) The amendments made by this se-ction shall apply in respect 
of foreign expropriation losses sustained in taxable years ending 
after December 31, 1958. 
Approved January 12, 1971„ 
January 
[H. R. 
Taxe s 
Cemen 
floor sto 
refunds. 
12. 1971 
17658] 
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Ante, 
pp. 
1843. 
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1743, 
Conditions. 
Definitions. 
Public Law 91-678 
AN ACT 
To provide floor stock refunds in tlie case of cement mixers. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress asseimhled^ That (a) where 
before January 1, 1970, and after June 30, 1968, any cement mixer 
subject to the tax imposed by section 4061 of the Internal Revenue 
Code of 1954 during such period, had been sold by the manufacturer, 
producer, or importer, and on January 1, 1970, was held by a dealer 
and had not been used and was intended for sale, there shall be credited 
or refunded (without interest) to the manufacturer, producer, or 
importer an amount equal to the tax paid by the manufacturer, pro-
ducer, or importer on his sale of the cement mixer, if— 
(1) claim for such credit or refund is filed with the Secretary of 
the Treasury or his delegate on or before the last day of the ninth 
calendar month beginning after the date of enactment of this Act, 
based upon a request submitted to the manufacturer, producer, or 
importer on or before the last day of the sixth calendar month 
beginning after the date of enactment of this Act, by the dealer 
who held the cement mixer in respect of which the credit or refund 
is claimed; and 
(2) on or before the last day of the ninth calendar month 
beginning after the date of enactment of this Act, reimbursement 
has been made to the dealer by the manufacturer, producer, or 
importer for the tax on the cement mixer or written consent has 
been obtained from the dealer to allowance of the credit or refund. 
(b) For the purposes of this section— 
(1) The term "cement mixer" means— 
(A) any article designed (i) to be placed or mounted on an 
automobile truck chassis or truck trailer or semitrailer chassis 
and (ii) to be used to process or prepare concrete, and 
(B) parts or accessories designed primarily for use on or in 
connection with an article described in subparagraph (A). 
(2) The term "dealer" includes a wholesaler, jobber, distributor, 
or retailer. 
(3) A cement mixer shall be considered as "held by a dealer" if 
title thereto has passed to the dealer (whether or not delivery to him 
has been made), and if for purposes of consumption title to the cement 
mixer or possession thereof had not at any time prior to January 1, 
1970, been transferred to any person other than a dealer. For purposes 
of subsection (a) and notwithstanding the preceding sentence, a cement 
mixer shall be considered as "held by a dealer" and not to have 
been used, although possession of such cement mixer has been trans-
ferred to another person, if such cement mixer is returned to the 
dealer in a transaction under which any amount paid or deposited by 
the transferee for such cement mixer is refunded to him (other than 
amounts retained by the dealer to cover damage to the cement mixer). 
Moreover, such a cement mixer shall be considered as held by a dealer 
on January 1, 1970, even though it was in the possession of the trans-
feree on such day, if it was returned to the dealer (in a transaction 
described in the preceding sentence) before January 31,1970. 
84 STAT. ] 
PUBLIC LAW 91-679-JAN. 12, 1971 
2063 
(c) No manufacturer, producer, or importer shall be entitled to J/Jg^^'^t^^ '^^' 
credit or refund under subsection (a) unless he has in his possession 
such evidence of the inventories with respect to which the credit or 
refund is claimed as may be required by regulations prescribed by the 
Secretary of the Treasury or his delegate under this subsection. 
(d) All provisions of law, including penalties, applicable in respect 
Applicability. 
of the taxes imposed by section 4061 of such Code shall, insofar as jg^"^^' ^^- ^^'*''' 
applicable and not inconsistent with subsections (a), (b), and (c) of 
this section, apply in respect of the credits and refunds provided for 
in subsection (a) to the same extent as if the credits or refunds con-
stituted overpayments of the taxes. 
Approved January 12, 1971. 
Public Law 91-679 
AN ACT 
January 12, 19 71 
To amend the Internal Revenue Code of 1954 to provide that in certain cases a 
[H. R. 19774] 
spouse will be relieved of liability arising from a joint income tax return. 
Be it enacted hy the Senate and House of Representatwes 
of the 
United States of America in Congress assembled, That section-6013 of 
To^^^tVetums 
the Internal Revenue Code of 1954 (relating to joint returns of income uabiuty. 
tax by husband and wife) is amended by adding at the end thereof the ga^s^af 
*675^^^' 
following new subsection: 
26 use eo'i 3. 
"(e) SPOUSE RELIEVED or LIABILITY IN CERTAIN CASES.— 
"(1) I N GENERAL.—Under regulations prescribed by the Secre-
tary or his delegate, if— 
" (A) a joint return has been made under this section for a 
taxable year and on such return there was omitted from gross 
income an amount properly includable therein which is 
attributable to one spouse and which is in excess of 25 percent 
of the amount of gross income stated in the return, 
"(B) the other spouse establishes that in signing the return 
he or she did not know of, and had no reason to know of, such 
omission, and 
"(C) taking into account whether or not the other spouse 
significantly benefited directly or indirectly from the items 
omitted from gross income and taking into account all other 
facts and circumstances, it is inequitable to hold the other 
spouse liable for the deficiency in tax for such taxable year 
attributable to such omission, 
then the other spouse shall be relieved of liability for tax (includ-
ing interest, penalties, and other amounts) for such taxable year 
to the extent that such liability is attributable to such omission 
from gross income. 
" (2) SPECIAL RULES.—For purposes of paragraph (1) — 
"(A) the determination of the spouse to whom items of 
gross income (other than gross income from property) are 
attributable shall be made without regard to community 
property laws, and 
"(B) the amount omitted from gross income shall be deter-
mined in the manner provided by section 6501(e) (1) (A)." 
^^^ ^*^*- ^°^-
SEC. 2. Section 6653(b) of the Internal Revenue Code of 1954 Failure to pay. 
(relating to failure to pay tax) is amended by adding at the end thereof 
the following new sentence: "In the case of a joint return under section 
6013, this subsection shall not apply with respect to the tax of a spouse 
unless some part of the underpayment is due to the fraud of such 
spouse."