Imágenes de página
PDF

be taken into account any portion 0] the premiums or other consideration lor the contract paid while the employee was an owner-employee which is properly allocable (as determined under regulations prescribed by the Secretary or his delegate) to the cost 0! life, accident, health, or other insurance. "(3) Life insurance contracts.— iA) This paragraph shall apply to any life insurance contract "(iii purchased as a part 0] a plan described in section 40310. or "(ii) purchased by a trust described in section Hiia) which is exempt from tax under section

501(0) it the proceeds 0] such

contract are payable directly or

indirectly to a participant in such trust or to a beneficiary of such participant.

"(8) Any contribution to a plan described in subparagraph iA)ii) or a trust described in subparagraph (Aiiiii which is allowed as a deduction under section (04, and any income 0! a trust described in subparagraph iAiiiil, which is determined in accordance with regulations prescribed by the Secretary or his delegate to have been applied to purchase the life insurance protection under a contract described in subparagraph (.4), is includible in the gross income a! the participant tor the taxable year when so applied.

"(C‘) In the case of the death 0] an individual insured under a contract described in subparagraph (A i, an amount equal to the cash surrender value of the contract immediately before the death of the insured shall be treated as a payment under such plan or a distribution by such trust, and the excess of the amounts payable by reason of the death of the insured over such cash surrender value shall not be includible in gross income under this section and shall be treated as provided in section 101.

"(4) Amounts constructively received.—

"(A) Assignments or pledges?” during any taxable year an owneremployee assigns (0r agrees to assign) or pledges ior agrees to pledge) any portion or his interest in a trust described in section (otiai which is exempt lrom tax under section 501(0) or any portion of the value 0! a contract purchased as part 0! a plan described in section 403(0), such portion shall be treated as having been received by such owner-employee as a distribution trom such trust or as an amount received under the contract

“(8) Loans on contracts—ll during any taxable year, an owner-employee receives, directly or indirectly, any amount from any insurance company as a loan under a contract purchased by a trust described in

section (Dita) which is exempt Irom tax under section 501(a) or purchased as part 0] a plan described in section 403(0), and issued by such insurance company, such amount shall be treated as an amount received under the contract.

"5) Penalties applicable to certain

amounts received by owner-employees.—

"1.4) This paragraph shall apPly—

“iii to amounts (other than any amount received by an indit'ldltlll in his capacity as a policyholdcr 0! an annuity, endowment, or li/c insurance contract which is in the nature 0! a dividend or similar distribution) which are received from a qualified trust described in section (01(0) or under a plan described in section 403(0) and which are received by an individual, who is, or has been, an owner-employee, before such individual attains the age 0! 59'; years, for any reason other than the individual's becoming disabled iieithin the meaning 0! section 213(g)(3) ), but only to the extent that such amounts are attributable to contributions paid on behalf 0! such individual (whether or not paid by him) while he uas an owner-em ployee,

"(ii) to amounts which are received [mm a qualified trust described in section 4011a) or under 0 plan described in section 403m) at any time by an individual who is, or has been, an 0tl‘tlt‘remployee, or by the successor o! such individual, but only to the extent that such amounts are determined, under regulations prescribed by the Secretary or his delegate. to exceed the benefits provided lor such individual under the plan lormula, and

"(ml to amounts which are received, by an individual who is. or has been, an owner-employee, by reason of the distribution under the provisions 0] section 401"’) (2)(£)o! his entire interest in all qualified trusts described in section 401(0) and in all plans described in section 403(0). "(Bilii I! the aggregate of the

amounts to which this paragraph applies received by any person in his taxable year equals or exceeds 82,500, the increase in his tax for the taxable year in which such amounts are received and attributable to such amounts shall not be less than 110 percent of the aggregate increase in taxes, for the taxable year and the 4 immediately preceding taxable years, which would have resulted t] such amounts had been included in such person's gross income ratably over such taxable years.

"(M It deductions have been allowed under section 404 for contributions paid on behalf of the indit‘tdtldl while he is an owner-employee

for a number 0! prior taxable years less than it, clause iii \’;c.'.' be at» plied by taking into account a "us-r.btf OI taxable years :"zrwdzcf-‘I', preceding the taxable year in a hic the amount was so receii'ed equal to such lesser number.

"iCi ll subparagraph iBi does not apply to a person [or the taxable year, the increase in tax of such person for the taxable year attributable to the amounts to which this paragraph applies shall be til.) per» cent of such increase (computed without regard to this subparagraph).

"IDi subparagraph i.iiiiii a] this paragraph shall not apply to any amount to which section “I'm-2) or moi-~2- applies.

"-8) For special rules for computation ol taxable income for taxable years to which this paragraph applies, see subsection ini i.) i .

"i6i Owner-employee defined ——F r

purposes a] this subsection, the fer":

‘owner-employee’ has the meaning as

signed to it by section 40510) ( 3 i.

"ini Treatment 0! Certain Uzif'tb'ations With Respect to Contributions *1; Sch-Employed Individuals.—

"ill Application of subsection— "1.4) Distribution! by i"‘1,'1.'u’,f'! trust—Subject to the P'i'll‘l as o‘ subparagraph (('I, this .iubicctt'n shall apply to amounts dzstrihuted to a distributee, in the (use 1'' or. employees’ trust described 1': scrtior: 401.0) which is exempt "'1": tax under section 50110), it .":e tote: distributions payable to the diitrmutee with respect to an e'rzpi'oyre c'e paid to the distributee uzrhin one taxable year of ."2" disfrzh'afeh— "(ii on account of the employee s death. "(iii alter the cr'zplcyee has attained the age or 59‘, tears or "iiiii alter the -~'~:;i'o'.re has b00011" disabled l'..:f’::ri the meaning of section Illicit“). "(8) Annuity plans—Subject t" the PYOPLHO"! of subparagraph (C , this subsection shall app", 8 i amounts paid to a pager i--. .‘he case 0] an annuity plan dr'iU'ibt'd in section (0340), it the total ar'iounts payable to the payee :i-irh respect to an employee are Paid to the payee within one taxable var r-' the Pal/"‘— "(H in account 0! the e":ployee's death , "(iii alter the employee has a.‘tained the age of 59‘; viz" -' "IIIU alter the r'r'zpi'iitec has become disabled (zizflzir. the meaning of section ZlJig-(JH. "(CI Limitations and exceptions.—This subsection shall apply— "ii) only with respect to so much 0/ any disfrzb'ufzori or 9:‘,rnent to which (:.::’:~u.' regard to this subparagraph) subparagraph (.4) or (8‘) applies as is attributable to contributions made on behall 0/ an employee uhii'e he arcs an employee within the meaning of section 401(c) (1), and

[graphic]

“(ii) if the recipient is the em

ployee on whose behalf such contributions were made, only if contributions which were allowed as a deduction under section 404 have been made on behalf of such employee while he was an em‘ ployee within the meaning of section 401(c) (1) for 5 or more taxable years prior to the taxable year in which the total distributions payable or total amounts payable, as the case may be, are paid.

This subsection shall not apply to

amounts described in clauses (ii)

and (iii) of subparagraph (A) of

subsection (m) (5) (but, in the case

of amounts described in clause (ii)

of such subparagraph, only to the

extent that subsection (m) (5) applies to such amounts).

“(2) Limitation of tax.—In any case to which this subsection applies, the tax attributable to the amounts to which this subsection applies for the taxable year in which such amounts are received shall not exceed whichever of the following is the greater:

“(A) 5 times the increase in tax which would result from the inclusion in gross income of the recipient of 20 percent of so much of the amount so received as is includible in gross income, or

"(B) 5 times the increase in tax which would result if the taxable income of the recipient for such taxable year equaled 20 percent of the amount of the taxable income of the recipient for such taxable year determined under paragraph (3) (A). “(3) Determination of taxable in

come—Notwithstanding section 63 (relating to definition of taxable income), for purposes only of computing the tax under this chapter attributable to amounts to which this subsection or subsection (m) (5) applies and which are includible in gross income—

“(A) the taxable income of the recipient for the taxable year of receipt shall be treated as being not less than the amount by which (i) the aggregate of such amounts so includible in gross income exceeds (ii) the amount of the deductions allowed for such taxable year under section 151 (relating to deductions for personal exemptions); and

“(B) in making ratable inclusion computations under paragraph ( 5) (B) of subsection (m), the taxable income of the recipient for each taxable year involved in such ratable inclusion shall be treated as being not less than the amount required by such paragraph (5)(B) to be treated as includible in gross income for such taxable year.

In any case in which the preceding sentence results in an increase in taxable income for any taxable year, the resulting increase in the taxes imposed by section 1 or 3 for such taxable year

shall not be reduced by any credit un

der part IV of subchapter A (other

than section 31 thereof) which, but

for this sentence, would be allowable."

(0) Capital Gains Treatment of Certain Employees’ Trust Distributions-H Section 402(a) (2) of the Internal Revenue Code of 1954 (relating to capital gains treatment for certain distributions) is amended by adding at the end thereof the following new sentence.‘ “This paragraph shall not apply to distributions paid to any distributee to the extent such distributions are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401(0) (1)

(d) Capital Gains Treatment of Certain Employees’ Annuity Payments.— Section 403(a) of the Internal Revenue Code of 1954 (relating to taxability of a beneficiary under a qualified annuity plan) is amended—

(1) by striking out in paragraph (2) (A) (i) “which meets the requirements of section 401(a) (3), (4), (5) , and (6)" and inserting in lieu thereof “described in paragraph (1 ) ”;

(2) by adding at the end of paragraph (2) (A) the following new sentence: “This subparagraph shall not apply to amounts paid to any payee to the extent such amounts are attributable to contributions made on behalf of the employee while he was an employee within the meaning of section 401(0) (1).”; and

(3) by adding after paragraph (2) the following new paragraph:

“(3) Self-employed individuals—For purposes of this subsection, the term ‘employee’ includes an individual who is an employee within the meaning of section 401 (c) (1), and the employer of such individual is the person treated as his employer under section 401(0) (4) .”

Sec. 5. Plans for purchase of United States Bonds.

(a) Qualified Bond Purchase Plans.— Part I of subchapter D of chapter 1 of the Internal Revenue Code of 1954 (relating to deferred compensation, etc.) is amended by adding at the end thereof the following new section:

“Sec. 405. Qualified bond plans.

“(a) Requirements for Qualification.— A plan of an employer for the purchase for and distribution to his employees or their beneficiaries of United States bonds described in subsection (b) shall constitute a qualified bond purchase plan ander this section i f—

“(1) the plan meet the requirements

of section 401(a) (3), (4), (5), (6), (7),

and (8) and, if applicable, the require

ments of section 401(a) (9) and (10)

and of section 401(d) (other than

paragraphs (1), (5) (B), and (8) ) ; and

"(2) contributions under the plan are used solely to purchase for employees or their beneficiaries United gates bonds described in subsection

purchase

"(b) Bonds to Which Applicable.—

"(1) Characteristics of bonds—This section shall apply only to a bond issued under the Second Liberty Bond Act, as amended, which by its terms, or by regulations prescribed by the Secretary under such Act—

“(A) provides for payment of interest, or investment yield, only upon redemption;

"(B) may be purchased only in the name of an individual;

“(C) ceases to bear interest, or provide investment yield, not later than 5 years after the death of the individual in whose name it is purchased;

“(D) may be redeemed before the death of the individual in whose name it is purchased only if such individual—

"(i) has attained the age of

591/2 years, or

“(ii) has become disabled within the meaning of section

213(g)(3)),' and

“(E) is nontransferable.

"(2) Must be purchased in name of employee—This section shall apply to a bond described in paragraph (1) only if it is purchased in the name of the employee.

“(0) Deduction for Contributions to Bond Purchase Plans—Contributions paid by an employer to or under a qualified bond purchase plan shall be allowed as a deduction in an amount determined under section 404 in the same manner and to the same extent as if such contributions were made to a trust described in section 401(a) which is exempt from tax under section 501 (a) .

“(d) Taxability of Beneficiary of Qualified Bond Purchase Plan.—

“(1) Gross income not to include bonds at time of distribution—For purposes of this chapter, in the case of a distributee of a bond described in subsection (b) under a qualified bond purchase plan, or from a trust described in section 401(a) which is exempt from tax under section 501 (a), gross income does not include any amount attributable to the receipt of such bond. Upon redemption of such bond, the proceeds shall be subject to taxation under this chapter, but the provisions of section 72 (relating to annuities, etc.) and section 1232 (relating to bonds and other evidences of indebtedness) shall not apply.

“(2) Basis—The basis of any bond received by a distributee under a qualified bond purchase plan—

“(A) if such bond is distributed to an employee, or with respect to an employee, who at the time of parchase of the bond, was an employee other than an employee within the meaning of section 401(c)(1), shall be the amount of the contributions by the employee which were used to purchase the bond, and

"(B) if such bond is distributed to an employee, or with respect to an employee, who at the time of purchase of the bond, was an employee

[graphic]

within the meaning of section

401(c)(1), shall be the amount of

the contributions used to purchase

the bond which were made on behalf of such employee and were not allowed as a deduction under sub

section (0) .

The basis of any bond described in

subsection (b) receired by a distribu

tee from a trust described in section

401(0) which is exempt from tax un

der section 501(0) shall be determined

under regulations prescribed by the

Secretary or h is delegate.

"(ei Capital Gains Treatment Not To Apply to Bonds Distributed by Trusts.— Section 402(0) (2) shall not apply to any bond described in subsection (b) distributed to any distributee and, for purposes of applying such section, any such bond distributed to any distributee and any such bond to the credit of any employee shall not be taken into account.

"(fl Employee Defined—For purposes of this section, the term ‘employee’ includes an individual who is an employee within the meaning of section (01 (0)"). and the employer of such indimdual shall be the person treated as his employer under section 401(c) (4).

“‘(g) Proof of Purchase—At the time of purchase of any bond to which this section applies, proof of such purchase shall be furnished in such form as will enable the purchaser, and the employee in whose name such bond is purchased, to comply with the provisions of this section.

‘'01) Regulations—The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the provisions of this section."

(b) Clerical Amendment-The table of sections for such part is amended by adding at the end thereof the following new item:

"Sec 405 Qualified bond purchase plans." Sec 6 Prohibited transactions.

Section 503 of the Internal Revenue Code of 1954 (relating to prohibited transactions) is amended by adding at the end thereof the following new subsection.‘

"(1) Trusts Benefiting Owner-Employees —

"(1) Prohibited transactions—In the case of a trust described in section 401(0) which is part of a plan proriding contributions or benefits for employees some or all of whom are owner-employees (as defined in section 401(c)(3)) who control (within the meaning of section 401(d)(9)(8) the trade or business with respect to which the plan is established, the term ‘prohibited transaction’ also means any transaction in which such trust, directly or indirectly—

"(A) lends any part of the corpus or income of the trust to,‘

"(8) pays any compensation for personal services rendered to the trust to:

"(0) makes any part of its services acailable on a preferential basis to; or

Certain

"(0) acquires for the trust any property from. or sells any property to.‘ any person described in subsection (c) or to any such owner-employee, a member of the family (as defined in section 267(c) (4)) of any such ownercmployee, or a corporation controlled by any such owner-employee through the ownership, directly or indirectly, of 50 percent or more of the total combined cottng power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation.

"(2) Special rule for loans—For purposes of the application of paragraph UNA), the following rules shall apply with respect to a loan made before the date of the enactment of this subsection which would be a prohibited transaction if made in a taxable year beginning after December 31, 1962.‘

"(A) If any part of the loan is repayable prior to December 31, 1965. the renewal of such part of the loan for a period not extending beyond December 3!, 1965. on the same terms, shall not be considered a prohibited transaction.

"(8) If the loan is repayable on demand. the continuation of the loan beyond December 31, 1965. shall be considered a prohibited transaction."

7. Other special rules. technical changes, and administrattre provisions.

(0) Retirement Income CT¢dll.—StCtion 37(c)(l) of the Internal Revenue Code of 1954 (relating to definition of retirement income) is amended—

(1) by striking out subparagraph (A) and inserting in lieu thereof the following;

"(10 pensions and annuities (ineluding, in the case of an individual who is, or has been, an employee within the meaning of section (0! (cHl), distributions by a trust described in section 401(0) which is exempt from tax under section 50! (a)),": and (2) by striking out "and" at the end

of subparagraph (C), by striking out

"or" at the end of subparagraph (D)

and inserting in lieu thereof "and",

and by adding after subparagraph (D)

the following new subparagraph:

"(5) bonds described in section 405ib)(l) which are received under a qualified bond purchase plan described in section (05(0) or in a distribution from a trust described in section 401(0) which is crempt from tax under section 501m), or“.

(b) Adfusted Gross Income—Section 62 of the Internal Revenue Code of 1954 (relating to the definition of adjusted gross income) is amended by inserting after paragraph (6) the following new paragraph:

"(7) Pension, profit-sharing, annuity, and bond purchase plans of selfemployed individuals—In the case of an individual who is an employee with

Sec.

in the meaning of section (Olichl),

the deductions allowed by sectson 404

and section 4054c) to the extent at

tributable to contribtuions ’node on behalf of such individual "

(c) Death Benefits —Section 1011b‘) of the Internal Rerenue (‘c-dc of 1954 (relating to r‘"ip.'H‘,/r'r'.\' death benefits) is amended—

(1) by striking out clause (2:) of paragraph (2H1!) and :nsertzng in heu thereof the following‘

"(til under an annnmt; conf'ccr under a plan described in secrmn section 403'0), or"; and ll’) by oddzng a.’ the end there-t

the following new paragraph:

"13) Self-employed :ndzt2dua.’ not considered an e'npl'tec -- For purposes of this ssbw-ctwn the ter". ‘er-.ployee' does not include an :nd:'.‘td'..c.' who is an employee :::.'h:n the meaning of section 401(c)(1) (relating :2 self-employed indtctdualsL'

id) Amounts Recetred Through Accident or Health Insurance —Section 104 (a) of the Internal Revenue Code of 1954 (relating to co'rzpcnscfwn for tn,iurics or sickness) is amended by adding at the end thereof the following new sentence: "For purposes of po'cc'cph (3), in the can‘ of an :ndn'zdeal 1. ho :4V or has twcn an c'rip.'o;ee within the meaning of section 401(c)(1) t'elatmg to self-employed indiz :duals), contributions made on behalf of such :ndicidual while he was such an employee to a trust described in sectmn 401 a) whzch is exempt fro": tax under sectmn 501 (a), or under a plan described :n section 403(0), shall. 30 the extent allowed as deductions under sectzon 404., be treated as contributions by the employer whzch were not includible :n the was! income of the employee."

(e) Amounts Reci'rred Under Acctdent and Health Plans _Sec.’:on 105 of the Internal Rerenue (‘r-dc of 1954 (relating to amounts rccmced under cecadent and health plans) is amended by adding at the end thereof the tollozrzng new subsection.‘

"(g) Self-Employed lndictdual .‘Vm' Considered an Employee -—F~' purposes of this section, the term ‘employee’ does not include an x'idtrtdual who U an employee within the meaning of section 401(c)(1) (relating to self-employed :ndnnduclsl."

(1) Net Opcratrng Loss [Pductzon _ Section l'l2idHl) of the Internal Re:enue Code of 1954 m'latmo to nonbusiness deductions of taxpayers other than corporations) is amended—

(1) by striking out "and" c.’ the end of subparagraph (8).‘

(2) by striking out the period at the end of subparagraph (C) and wiser.’tng ": and": and

(3) by adding after subparagraph (C) the tolluwtng new subpcgraph:

"(DI any deduction allowed under section 404 or section 4051c) to the extent attributable to contributions which are made on behalf of an :ndiridual who ts an employee within the meaning of section 401(c)(1) shall not be treated as attributable to the trade or business of such individual.”

[graphic]

(9) Certain Life Insurance Reserves.— Section 805(d) (1) of the Internal Revenue Code of 1954 (relating to pension plan reserves) is amended—

(1) by striking out in subparagraph

(B) “meeting the requirements of

section 401(a) (3), (4), (5), and (6)

or” and inserting in lieu thereof “de

scribed in section 403(a), or plans meeting”; and (2) by striking out in subparagraph

(C) “and (6)” and inserting in lieu

thereof “(6), (7), and (8)”.

(h) Unincorporated Business Electing To Be Taxed as Corporations—Section 1361 (d) of the Internal Revenue Code of 1954 (relating to unincorporated business enterprises electing to be taxed as domestic corporations) is amended by inserting before the period at the end thereof the following: “other than an employee within the meaning of section 401(c) (1) (relating to self-employed individuals) , or for purposes of section 405 (relating to qualified bond purchase plans other than an employee described in section 405 (f) ”.

(i) Estate Tax Exemption of Employees’ Annuities—Section 2039 of the Internal Revenue Code of 1954 (relating to exemption from the gross estate of annuities under certain trusts and plans) is amended—

(1) by striking out in subsection

(c) (2) “met the requirements of sec

tion 401(a) (3), (4), (5), and (6)”

and inserting “was a plan described in

section 403(a)”; and
(2) by adding at the end of subsec-
tion (0) the following new sentence:

"For purposes of this subsection, con

tributions or payments on behalf of

the decedent while he was an employee

within the meaning of section 401(c)

(1) made under a trust or plan de

scribed in paragraph (1) or (2) shall

be considered to be contributions or payments made by the decedent.”

(7') Gift Tax Exemption of Employees’ Annuities—Section 2517 of the Internal Revenue Code of 1954 (relating to exclusion from gift tax in case of certain annuities under qualified plans) is amended—

(1) by striking out in subsection (a)

(2) “met the requirements of section

401(a) (3), (4), (5), and (6)” and in

serting in lieu thereof "was a plan de

scribed in section 403(a) ”; and

(2) by adding at the end of subsection (b) the following new sentence: “For purposes of this subsection, payments or contributions on behalf of an individual while he was an employee within the meaning of section

401(c)(1) made under a trust or plan

described in subsection (a) (1) or (2)

shall be considered to be payments or

contributions made by the employee.”

(k) Federal Unemployment Tax Act.— Section 3306(b) (5) of the Internal Revenue Code of 1954 (relating to definition of wages) is amended by striking out subparagraph (B) and inserting in lieu

thereof the following new subparagraphs:

“(B) under or to an annuity plan which, at the time of such payment, is a plan described in section 403(a) , or

“(C) under or to a bond purchase plan which, at the time of such payment, is a qualified bond purchase plan described in section 405(a);”.

(l) Withholding of Income Tax—Section 3401 (a) (12) of the Internal Revenue Code of 1954 (relating to definition of wages) is amended by striking out subparagraph (B) and inserting in lieu thereof the following new subparagraphs:

“(B) under or to an annuity plan which, at the time of such payment, is a plan described in section 403( a) ; or

“(C) under or to a bond purchase plan which, at the time of such payment, is a qualified bond purchase plan described in section 405(a).”

(m) Information Requirements.—

(1) In general.—Subpart B of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1954 (relating to information concerning transactions with other persons) is amended by adding after section 6046 the following new section:

“Sec. 6047. Information relating to certain trusts and annuity and bond purchase plans.

“(a) Trustees and Insurance Companies—The trustee of a trust described in section 401( )which is exempt from tax under section 501(a) to which contributions have been paid under a plan on behalf of any owner-employee (as defined in section 401(c)(3)), and each insurance company or other person which is the issuer of a contract purchased by such a trust, or purchased under a plan described in section 403(a), contributions for which have been paid on behalf of any owner-employee, shall file such returns (in such form and at such times), keep such records, make such identification of contracts and funds (and accounts within such funds), and supply such information, as the Sec— retary or his delegate shall by forms or regulations prescribe.

“(b) Owner-Employees.-Every individual on whose behalf contributions have been paid as an owner-employee (as defined in section 401 (c) (3) )—

“(1) to a trust described in section 401(a) which is exempt from tax under section 501 (a), or

“(2) to an insurance company or other person under a plan described in section 403(a),

shall funrish the trustee, insurance company, or other persons, as the case may be, such information at such times and in such form and manner as the Secretary or his delegate shall prescribe by forms or regulations.

“(c) Employees Under Qualified Bond Purchase Plans—Every individual in whose name a bond described in section 405(b) (1) is purchased by his employer

under a qualified bond purchase plan described in section 405(a) , or by a trust described in section 401(a) which is exempt from tax under section 501(a), shall furnish"(1) to his employer or to such trust, and "(2) to the Secretary (or to such person as the Secretary may by regulations prescribe), such information as the Secretary or his delegate shall by forms or regulations prescribe. "((1) Cross Reference.— “For criminal penalty for furnishing fraudulent information, see section 7207."

(2) Clerical amendment—The table of sections for such subpart B is amended by adding after the reference to section 6046 the following:

"Sec. 6047. Information relating to certain trusts and annuity and bond purchase plans."

(3) Penalty.-—Section 7207 of the Internal Revenue Code of 1954 (relating to fraudulent returns, statements, or other documents) is amended by adding at the end thereof the following new sentence: "Any person required pursuant to section 6047 (b) or (c) to furnish any information to the Secretary or any other person who willfully furnishes to the Secretary or such other person any information known by him to be fraudulent or to be false as to any material matter shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.”

Sec. 8. Effective date.

The amendments made by this Act shall apply to taxable years beginning after December 31, 1961.

And the Senate agree to the same.

HARRY F. BYRD,

Rom‘. S. KERR,

RUSSELL B. LoNc,

GEO. A. SuA'mERs,

JOHN J. WILLIAMS,

FRANK CARLSON,

WALLACE F. BENNETT,

Managers on the Part of the Senate.

W. D. MILLs,

HALE Bocos,

EUGENE J. Kaoan,

NOAH MAsoN,

JOHN W. BYRNES,

HowARn H. BAKER, Managers on the Part of the House.

On motion by Mr. MANSFIELD, and by unanimous consent,

Ordered, That the Senate vote at 11 a.m. on Friday, September 28, on the conference report, with the time for the debate to start at the conclusion of the morning business. and that it be equally divided and controlled by the majority and minority leaders, respectively, or someone deisgnated by them.

ENROLLED BILLS AND JOINT RESOLUTION PRESENTED

The Secretary reported that on today he presented to the President of the United States the following enrolled bills and )oint resolution.

8.1291. An act to amend the District of Columbia Traffic Act. 1925. as amended. to increase the fee charged for learners'permits;

8, 2429. An act to revtse the boundai ies of the Virgin Islands National Park, St. Johns. V1. and for other purposes;

8. 2793. An act to amend the District of Columbia Traffic Act. 1925. as amended. to authorize the C0mml.\\1011(‘r$ of the District of Columbia to assess reasonable fees for the restoration of motor vehicle operators‘ permits and operating privileges after suspension or feVOt‘tilluli thereof;

8. 2977. An act to amend the Life Insurance Act of the District of Columbia:

8.3358. An act to permit investment of funds of insurance companies organized within the District of Columbia in obligations of the Inter-American Development Bank, and

SJ. Res. 60. Joint resolution to establish the sesquicentennial commission for the celebration of the Battle of New Orleans, to llUthOl'lfl‘ the Secretary of the Interior to acquire certain property within Chalmette National Historical Park. and for other purposes.

Anions-Mrs? On motion by Mr Prtt, at 7 o'clock and 13 minutes p.m..

The Senate, under its order of today. adjourned until 9 o'clock a m tomorrow.

FRIIHY, SEPTEMBER 2*‘. 1962

The VICE PRESIDENT‘ called the Senate to order at 9 o'clock a m , and the Chaplain offered prayer.

rm: .iocRNAI. On motion by .\ir. MAs-srirto. and by unanimous consent.

The reading of the Journal of the proceedings of Thursday, September 27. 1962. was dispensed with.

cousin-rats At'rIroRizED To an

The Committee on the District of Columbia and the Subcommittee on Business and Commerce of the Committee on the District of Columbia were authorized to sit today during the session of the Senate, on the request of Mr MANSFIELD.

Exaccrivz BUSINESS On motion by Mr. MANSriEui, The Senate proceeded to the consideration of executive business, and after the consideration of executive business.

LmlSLATH'I SISSION

The Senate resumed its legislative session.

st'vetznn'nt ESTIMATES or
Arnoraiimoss

The VICE PRESIDENT laid before the Senate three communications from the President of the United States. together with letters from the Director of the Rureau of the Budget. transmitting. pursuant to law, supplemental estimate of appropriations for fiscal year 1963 for

the following The Department of the Interior, amounting to $5 million; the Department of Health. Education. and Welfare. amounting to 85.357000; the Department of Commerce, amounting to 81.450.000; the Department of Labor. amounting to 83.741.000, and the Small Business Administration. iimuuntlfift to $5 million; which, with the accompanying papers. were referred to the Committee on Appropriations and ordered to be printed.

The VICE PRESIDENT‘ laid before the Senate a communication from the President of the United States. together with a letter from the Director of the Bureau of the Budget. transmitting. pursuant to law, a proposed provision pertaining to the Department of Commerce appropriation for the construction of surveying ships, Coast and Geodetic Survey. for the fiscal year 1963; which. with the accompanying paper, was referred to the Committee on Appropriations and ordered to be printed.

"inns-c or Rzvizw or arr-oar os- w-iiirt: ctAv crux. ATClflSOhf, KANS

“I. HUMPHREY (for Mr Ciuvul presented a communication from the Secretary of the Army. together with a letter from the Chief of Engineers. Department Of the Army. transmitting a report on a review of the report on White Clay Creek. Atchison. Kilns; which. with the accompanying papers, was referred to the Committee on Public Works and ordered to be printed as a Senate document. with illustrations.

REPORTS OI‘ COMMITTEES

Mr. HAYDEN. from the Committee on Appropriations, to whom was referred the bill (HR. 13175) making appropriations for foreign aid and related agencies for the fiscal year ending June 30, 1963, and for other purposes. reportul it with amendments and submitted a report (NO 21771 thereon.

Mr. ELLENDER. from the Committee on Appropriations. to whom was referred the bill (HR. 129001 nialting appropriations for certain civil ltilit‘liults administered by the Department of Defense, certain agencies of the Department of the Interior, the Atomic Energy Commission. the St. Lawrence Seaway Development Corporation. the 'l'eiitiessee Valle)’ Authority. and certain river basin commissions for the fiscal year ending June 30, 1963. and for other purposes. reported it with amendments and submitted a report (No. 21781) thereon.

Mr YARBOROUGH. from the Committee on Labor and Public Welfare, to whom was referred the bill lllR. 9747) to amend section 51H“ of the Soldiers‘ and Sailors’ Civil Relief Act of 1940, as amended. reported it without amendment and submitted a report (No. 2182) thereon.

Mr YARBOROL'GH. from the Committee on Labor and Public Welfare, to whom were referred the following bills. reported them each with amendments and submitted reports thereon, as follows:

HR 6190 An act to amend title 38 of the United States Code to provide for

the repair of replacement for veterans of certain prosthetic or other appliances damaged or destroyed as a result of certain accidents ‘Rent. No 21811; and

H R 9737. An act to amend section 641 of title 38. United States Code, to provide that deductions shall not be made from Federal payments to a State home because of amounts collected from the estates of deceased veterans and used for recreational or other purposes not required by State laws (Rept l's'ov 2180).

Mr. MORSE. from the Committee on Labor and Public Welfare, to whom was referred the bill t8. 33261 to amend the National Defense Education Act of 1958 in order to extend the provisions of title 11 relating to cancellation of loans under such title to teachers in private nonprofit elementary and secondary schools and in institutions of higher education. "Dorted it without amendment and sullnitted a report Ih'o 2190i thereon

Mr MCCLEILAN. from the Committee on Government Operatiom. to whom were referred the followtna bills. reported them each without amendment and submitted reports thereon. as follows:

SY 3041 A bill to authorize the conveyance of certain lands in Harris County, Tex.. to the State of Texas or the coup“ of Harris ‘Rent. No 2183!:

"12.10613 An act to eliminate the requirements for certain detailed estimates in the annual budgets tRept- No 2180:

HR 10652 An act to amend the Administrative Expenses Act of 1946 to provide a more reasonable allowance for transportation of house trailers or mobile dwellings by certain governmental officers and employees upon their transfer from one omcial station to another tRept. No 21851;

11 R 11378. An act to amend the Federal Property and Administrative Services Act of 1949 so as to permit donations of surplus personal property to schools for the mentally retarded. schools for the physically handicapped. radio and tele. vision stations licensed by the Federal Communications Commission as educational radio or educational television stations and public libraries lRcpt .\'o 21861; and

H R 11594 An act to extend for 2 years the period for which payments in lieu of taxes may be made with respect to certain real property transferred by the Reconstruction Finance Corporation and its subsidiaries to other Government departments IRept No 2187'.

.\1r METCALP, from the (hmmittee on Interior and Insular Afiairs. to whom was referred the bill IS 16961 to authorize the Secretary of the Interior to conduct a survey of federally owned lands for the purpose of locating strategic minerttls. reported it with amendments and submitttd a report t.\'o 21881 thereon.

Mr. CRAVE. from the Committee on Public Works, to whom was referred the bill IS. 28331 to modify the proieet for protection against tidal waves and excessive hlRh tides at Rilo Harbor, Hawaii, reported it without amendment and submitted a report (.\'0 21891 thereon

Mr EAS'I'LAND. from the Committee on the Judiciary, to whom was referred

« AnteriorContinuar »