Page:United States Statutes at Large Volume 102 Part 4.djvu/380

 102 STAT. 3350

PUBLIC LAW 100-647—NOV. 10, 1988 (c) AMENDMENT RELATED TO SECTION 111 OF THE REFORM ACT.—

Paragraph (3) of section 32(i) of the 1986 Code is amended to read as follows: "(3) ROUNDING.—If any dollar amount after being increased under paragraph (1) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10 (or, if such dollar amount is a multiple of $5, such dollar amount shall be increased to the next higher multiple of $10)." Fellowships and scholarships. Schools and colleges.

Aliens.

(d) AMENDMENTS RELATED TO SECTION 123 OF THE REFORM ACT.—

dXA) Clause (ii) of section 4941(d)(2)(G) of the 1986 Code is amended to read as follows: "(ii) scholarships and fellowship grants which would be subject to the provisions of section 117(a) (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) and are to be used for study at an educational organization described in section 170(b)(l)(A)(ii),". (B) Paragraph (1) of section 4945(g) of the 1986 Code is amended to read as follows: "(1) the grant constitutes a scholarship or fellowship grant which would be subject to the provisions of section 117(a) (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) and is to be used for study at an educational organization described in section 170(b)(l)(A)(ii),". (2)(A) The second sentence of section 1441(b) of the 1986 Code is amended to read as follows: "The items of income referred to in subsection (a) from which tax shall be deducted and withheld at the rate of 14 percent are amounts which are received by a nonresident alien individual who is temporarily present in the United States as a nonimmigrgmt under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationsility Act and which are— "(1) incident to a qualified scholarship to which section 117(a) applies, but only to the extent includible in gross income; or "(2) in the case of an individual who is not a candidate for a degree at an educational organization described in 170(b)(l)(A)(ii), granted by— "(A) an organization described in section 501(c)(3) which is exempt from tax under section 501(a), "(B) a foreign government, "(C) an international organization, or a binational or multinational educational and cultural foundation or commission created or continued pursuant to the Mutual Educational and Cultural Exchange Act of 1961, or "(D) the United States, or an instrumentality or agency thereof, or a State, or a possession of the United States, or any political subdivision thereof, or the District of Columbia, as a scholarship or fellowship for study, training, or research in the United States." (B) Subsection (c) of section 871 of the 1986 Code is amended— (i) by striking out "section 1441(b)(l) or (2)" and inserting in lieu thereof "the second sentence of section 1441(b)"; and (ii) by striking out "(F) or (J)" each place it appears and inserting in lieu thereof "(F), (J), or (M)".

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