Notes on 26 U.S.C. § 61 : US Code - Notes

Search Notes on 26 U.S.C. § 61 : US Code - Notes

(Aug. 16, 1954, ch. 736, 68A Stat. 17; Pub. L. 98-369, div. A,
title V, Sec. 531(c), July 18, 1984, 98 Stat. 884.)
AMENDMENTS
1984 - Subsec. (a)(1). Pub. L. 98-369 inserted reference to
fringe benefits.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective Jan. 1, 1985, see section
531(h) of Pub. L. 98-369, set out as an Effective Date note under
section 132 of this title.
TERMINATION DATE OF 1978 AMENDMENT
Pub. L. 95-615, Sec. 210(a), Nov. 8, 1978, 92 Stat. 3109,
provided that: "Title I of this Act [probably means sections 1 to 8
of Pub. L. 95-615, see Short Title of 1978 Amendment note under
section 1 of this title] (other than sections 4 and 5 thereof)
[amending section 167 of this title, enacting provisions set out as
notes under this section and sections 61 and 62 of this title, and
amending provisions set out as notes under sections 117, 167, and
382 of this title] shall cease to have effect on the day after the
date of the enactment of this Act [Nov. 8, 1978]."
REGULATIONS
Pub. L. 95-427, Sec. 1, Oct. 7, 1978, 92 Stat. 996, as amended by
Pub. L. 96-167, Sec. 1, Dec. 29, 1979, 93 Stat. 1275; Pub. L. 97-
34, title VIII, Sec. 801, Aug. 13, 1981, 95 Stat. 349; Pub. L. 99-
514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) In General. - No fringe benefit regulation shall be issued -

"(1) in final form on or after May 1, 1978, and on or before
December 31, 1983, or
"(2) in proposed or final form on or after May 1, 1978, if such
regulation has an effective date on or before December 31, 1983.
"(b) Definition of Fringe Benefit Regulation. - For purposes of
subsection (a), the term 'fringe benefit regulation' means a
regulation providing for the inclusion of any fringe benefit in
gross income by reason of section 61 of the Internal Revenue Code
of 1986 [formerly I.R.C. 1954]."
Pub. L. 95-615, Sec. 3, Nov. 8, 1978, 92 Stat. 3097, as amended
by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided
that no regulations be issued in final form on or after Oct. 1,
1977, and before July 1, 1978, providing for inclusion of any
fringe benefit in gross income by reason of section 61 of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954], ceased to
have effect on the day after Nov. 8, 1978, pursuant to section
210(a) of that Act.
NO GAIN RECOGNIZED FROM NET GIFTS MADE BEFORE MARCH 4, 1981
Section 1026 of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) In General. - In the case of any transfer of property
subject to gift tax made before March 4, 1981, for purposes of
subtitle A of the Internal Revenue Code of 1986 [formerly I.R.C.
1954, 26 U.S.C. 1 et seq.], gross income of the donor shall not
include any amount attributable to the donee's payment of (or
agreement to pay) any gift tax imposed with respect to such gift.
"(b) Gift Tax Defined. - For purposes of subsection (a), the term
'gift tax' means -
"(1) the tax imposed by chapter 12 of such Code [26 U.S.C. 2501
et seq.], and
"(2) any tax imposed by a State (or the District of Columbia)
on transfers by gifts.
"(c) Statute of Limitations. - If refund or credit of any
overpayment of tax resulting from subsection (a) is prevented on
the date of the enactment of this Act [July 18, 1984] (or at any
time within 1 year after such date) by the operation of any law or
rule of law (including res judicata), refund or credit of such
overpayment (to the extent attributable to subsection (a)) may
nevertheless be made or allowed if claim therefor is filed within 1
year after the date of the enactment of this Act."
PAYMENT-IN-KIND TAX TREATMENT ACT OF 1983
Pub. L. 98-4, Mar. 11, 1983, 97 Stat. 7, as amended by Pub. L. 98-
369, div. A, title X, Sec. 1061(a), July 18, 1984, 98 Stat. 1046;
Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100-
647, title VI, Sec. 6252(a)(1), Nov. 10, 1988, 102 Stat. 3752,
provided that:
"SECTION 1. SHORT TITLE.
"This Act may be cited as the 'Payment-in-Kind Tax Treatment Act
of 1983'.
"SEC. 2. INCOME TAX TREATMENT OF AGRICULTURAL COMMODITIES
RECEIVED UNDER A 1983 PAYMENT-IN-KIND PROGRAM.
"(a) Income Tax Deferral, Etc. - Except as otherwise provided in
this Act, for purposes of the Internal Revenue Code of 1986
[formerly I.R.C. 1954] -
"(1) a qualified taxpayer shall not be treated as having
realized income when he receives a commodity under a 1983 payment-
in-kind program,
"(2) such commodity shall be treated as if it were produced by
such taxpayer, and
"(3) the unadjusted basis of such commodity in the hands of
such taxpayer shall be zero.
"(b) Effective Date. - This section shall apply to taxable years
ending after December 31, 1982, but only with respect to
commodities received for the 1983 crop year.
"SEC. 3. LAND DIVERTED UNDER 1983 PAYMENT-IN-KIND PROGRAM TREATED
AS USED IN FARMING BUSINESS, ETC.
"(a) General Rule. - For purposes of the provisions specified in
subsection (b), in the case of any land diverted from the
production of an agricultural commodity under a 1983 payment-in-
kind program -
"(1) such land shall be treated as used during the 1983 crop
year by the qualified taxpayer in the active conduct of the trade
or business of farming, and
"(2) any qualified taxpayer who materially participates in the
diversion and devotion to conservation uses required under a 1983
payment-in-kind program shall be treated as materially
participating in the operation of such land during such crop
year.
"(b) Provisions to Which Subsection (a) Applies. - The provisions
specified in this subsection are -
"(1) section 2032A of the Internal Revenue Code of 1986
(relating to valuation of certain farm, etc., real property),
"(2) section 6166 of such Code (relating to extension of time
for payment of estate tax where estate consists largely of
interest in closely held business),
"(3) chapter 2 of such Code (relating to tax on self-employment
income), and
"(4) title II of the Social Security Act [42 U.S.C. 401 et
seq.] (relating to Federal old-age, survivors, and disability
insurance benefits).
"SEC. 4. ANTIABUSE RULES.
"(a) General Rule. - In the case of any person, sections 2 and 3
of this Act shall not apply with respect to any land acquired by
such person after February 23, 1983, unless such land was acquired
in a qualified acquisition.
"(b) Qualified Acquisition. - For purposes of this section, the
term 'qualified acquisition' means any acquisition -
"(1) by reason of the death of a qualified transferor,
"(2) by reason of a gift from a qualified transferor, or
"(3) from a qualified transferor who is a member of the family
of the person acquiring the land.
"(c) Definitions and Special Rules. - For purposes of this
section -
"(1) Qualified transferor. - The term 'qualified transferor'
means any person -
"(A) who held the land on February 23, 1983, or
"(B) who acquired the land after February 23, 1983, in a
qualified acquisition.
"(2) Member of family. - The term 'member of the family' has
the meaning given such term by section 2032A(e)(2) of the
Internal Revenue Code of 1986.
"(3) Mere change in form of business. - Subsection (a) shall
not apply to any change in ownership by reason of a mere change
in the form of conducting the trade or business so long as the
land is retained in such trade or business and the person holding
the land before such change retains a direct or indirect 80-
percent interest in such land.
"(4) Treatment of certain acquisitions of right to the crop. -
The acquisition of a direct or indirect interest in 80 percent or
more of the crop from any land shall be treated as an acquisition
of such land.
"SEC. 5. DEFINITIONS AND SPECIAL RULES.
"(a) General Rule. - For purposes of this Act -
"(1) 1983 payment-in-kind program. - The term '1983 payment-in-
kind program' means any program for the 1983 crop year -
"(A) under which the Secretary of Agriculture (or his
delegate) makes payments in kind of any agricultural commodity
to any person in return for -
"(i) the diversion of farm acreage from the production of
an agricultural commodity, and
"(ii) the devotion of such acreage to conservation uses,
and
"(B) which the Secretary of Agriculture certifies to the
Secretary of the Treasury as being described in subparagraph
(A).
"(2) Crop year. - The term '1983 crop year' means the crop year
for any crop the planting or harvesting period for which occurs
during 1983. The term '1984 crop year' means the crop year for
wheat the planting and harvesting period for which occurs during
1984.
"(3) Qualified taxpayer. - The term 'qualified taxpayer' means
any producer of agricultural commodities (within the meaning of
the 1983 payment-in-kind programs) who receives any agricultural
commodity in return for meeting the requirements of clauses (i)
and (ii) of paragraph (1)(A).
"(4) Receipt includes right to receive, etc. - A right to
receive (or other constructive receipt of) a commodity shall be
treated the same as actual receipt of such commodity.
"(5) Amounts received by the taxpayer as reimbursement for
storage. - A qualified taxpayer reporting on the cash receipts
and disbursements method of accounting shall not be treated as
being entitled to receive any amount as reimbursement for storage
of commodities received under a 1983 payment-in-kind program
until such amount is actually received by the taxpayer.
"(6) Commodity credit loans treated separately. - Subsection
(a) of section 2 shall apply to the receipt of any commodity
under a 1983 payment-in-kind program separately from, and without
taking into account, any related transaction or series of
transactions involving the satisfaction of loans from the
Commodity Credit Corporation.
"(b) Extension to Wheat Planted and Harvested in 1984. - In the
case of wheat -
"(1) any reference in this Act to the 1983 crop year shall
include a reference to the 1984 crop year, and
"(2) any reference to the 1983 payment-in-kind program shall
include a reference to any program for the 1984 year for wheat
which meets the requirements of subparagraphs (A) and (B) of
subsection (a)(1).
"(c) Regulations. - The Secretary of the Treasury or his delegate
(after consultation with the Secretary of Agriculture) shall
prescribe such regulations as may be necessary to carry out the
purposes of this Act, including (but not limited to) such
regulations as may be necessary to carry out the purposes of this
Act where the commodity is received by a cooperative on behalf of
the qualified taxpayer."
[Section 1061(b) of Pub. L. 98-369 provided that: "The amendments
made by this section [amending Pub. L. 98-4 set out above] shall
apply with respect to commodities received for the 1984 crop year
(as defined in section 5(a)(2) of the Payment-in-Kind Tax Treatment
Act of 1983 [Pub. L. 98-4, set out above] as amended by subsection
(a))."]
CANCELLATION OF CERTAIN STUDENT LOANS
Pub. L. 94-455, title XXI, Sec. 2117, Oct. 4, 1976, 90 Stat.
1911, as amended by Pub. L. 95-600, title I, Sec. 162, Nov. 6,
1978, 92 Stat. 2810; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095, provided that no amount be included in gross income of
an individual for purposes of 26 U.S.C. 61 by reason of the
discharge made before Jan. 1, 1983 of the indebtedness of the
individual under a student loan if the discharge was pursuant to a
provision of the loan under which the indebtedness of the
individual would be discharged if the individual worked for a
certain period of time in certain geographical areas or for certain
classes of employers.
REGULATIONS RELATING TO TAX TREATMENT OF CERTAIN PREPUBLICATION
EXPENDITURES OF PUBLISHERS
Pub. L. 94-455, title XXI, Sec. 2119, Oct. 4, 1976, 90 Stat.
1912, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095, provided that:
"(a) General Rule. - With respect to taxable years beginning on
or before the date on which regulations dealing with prepublication
expenditures are issued after the date of the enactment of this Act
[Oct. 4, 1976], the application of sections 61 (as it relates to
cost of goods sold), 162, 174, 263, and 471 of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954] to any prepublication
expenditure shall be administered -
"(1) without regard to Revenue Ruling 73-395, and
"(2) in the manner in which such sections were applied
consistently by the taxpayer to such expenditures before the date
of the issuance of such revenue ruling.
"(b) Regulations To Be Prospective Only. - Any regulations issued
after the date of the enactment of this Act [Oct. 4, 1976] which
deal with the application of sections 61 (as it relates to cost of
goods sold), 162, 174, 263, and 471 of the Internal Revenue Code of
1986 to prepublication expenditures shall apply only with respect
to taxable years beginning after the date on which such regulations
are issued.
"(c) Prepublication Expenditures Defined. - For purposes of this
section, the term 'prepublication expenditures' means expenditures
paid or incurred by the taxpayer (in connection with his trade or
business of publishing) for the writing, editing, compiling,
illustrating, designing, or other development or improvement of a
book, teaching aid, or similar product."
REIMBURSEMENT OF MOVING EXPENSES OF EMPLOYEES OF CERTAIN
CORPORATIONS EXCLUDED FROM GROSS INCOME; CLAIM FOR REFUND OR
CREDIT; LIMITATIONS; INTEREST
Pub. L. 86-780, Sec. 5, Sept. 14, 1960, 74 Stat. 1013, provided
for the exclusion from gross income of any amount received after
Dec. 31, 1949, and before Oct. 1, 1955, by employees of certain
corporations as reimbursement for moving expenses, and the refund
or credit of any overpayments.