Page:United States Statutes at Large Volume 100 Part 1.djvu/321

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 285

(g) CONFORMING AMENDMENTS.—(1) Section 706 of the Social Security Act is amended— 42 USC 907. (A) by inserting "except as provided in subsection (e)," immediately before "the Secretary shall appoint" in subsection (a); and (B) by adding at the end thereof the following new subsection: "(e) No Advisory Council on Social Security shall be appointed under subsection (a) in 1985 (or in any subsequent year prior to 1989).". (2) Section 12 of the Social Security Disability Benefits Reform Act of 1984 is repealed. 42 USC 907 note. SEC. 12103. TAXATION OF SOCIAL SECURITY BENEFITS RECEIVED BY CERTAIN CITIZENS OF POSSESSIONS OF THE UNITED STATES. (a) GENERAL RULE.—Section 932 of the Internal Revenue Code of

1954 (relating to citizens of possessions of the United States) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

26 USC 932.

"(c) TAXATION OF SOCIAL SECURITY BENEFITS.—If, for purposes of

an income tax imposed in the possession, any social security benefit (as defined in section 86(d)) received by an individual described in 26 USC 86. subsection (a) is treated in a manner equivalent to that provided by section 86, then— "(1) such benefit shall be exempt from the tax imposed by section 871, and Infra. "(2) no amount shall be deducted and withheld from such benefit under section 1441. 26 USC 1441. Any income tax imposed in a possession which treats social security benefits (as defined in section 86(d)) in a manner equivalent to section 86, and which first becomes effective within 15 months after the date of the enactment of this subsection, shall, for purposes of this section, be deemed to have been in effect as of January 1, 1984.". (b) CROSS REFERENCE.—Paragraph (3) of section 871(a) of such Code 26 USC 871. is amended by adding at the end thereof (after and below subparagraph (B)) the following new sentence: "For treatment of certain citizens of possessions of the United States, see section 932(c)."

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to benefits received after December 31, 1983, in taxable years ending after such date.

26 USC 932 note,

SEC. 12104. APPLICATION OF DEPENDENCY TEST TO ADOPTED GREATGRANDCHILDREN FOR PURPOSES OF CHILD'S INSURANCE BENEFITS. (a) TREATMENT OF GRANDCHILDREN AND GREAT-GRANDCHILDREN

ALIKE.—Section 202(d)(8)(D)(ii)(III) of the Social Security Act is amended by inserting "or great-grandchild" after "grandchild" (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to benefits for which application is filed after the date of the enactment of this Act.

42 USC 402. 42 USC 402 ^°^-

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