Page:United States Statutes at Large Volume 103 Part 3.djvu/311

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2379 SEC. 7632. ACCELERATION OF DEPOSIT REQUIREMENTS. (a) IN GENERAL.—Section 6302 (relating to mode or time for collection), as amended by this title, is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: "(g) DEPOSITS OF SOCIAL SECURITY TAXES AND WITHHELD INCOME TAXES. — "(1) IN GENERAL.—If, under regulations prescribed by the Secretary, a person is required to make deposits of taxes im- posed by chapters 21 and 24 on the basis of eighth-month periods, such person shall, for the years specified in paragraph (2), make deposits of such taxes on the applicable banking day after any day on which such person has $100,000 or more of such taxes for deposit. "(2) SPECIFIED YEARS.— For purposes of paragraph (1)— The applicable "In the case of: banking day is: 1990 1st 1991 2d 1992 8rd 1993 Ist 1994 „ Ist." 0>) EFFECTIVE DATE. — 26 USC 6302 (1) GENERAL RULE. — Except as provided in paragraph (2), note. . the amendment made by subsection (a) shall apply to amounts required to be deposited after July 31, 1990. (2) RULE FOR 1995 AND THEREAFTER.—For calendar year R^uiations. • 1995 and thereafter, the Secretary of the Treasury shall prescribe regulations with respect to the date on which deposits of such taxes shall be made in order to minimize the imevenness in the revenue effects of the amendment made by subsection (a). PART V—OTHER PROVISIONS SEC 7641. LIMITATION ON SECTION 104 EXCLUSION. ^ (a) GENERAL RULE.— Section 104(a) (relating to compensation for injuries or sickness) is amended by adding at the end thereof the following new sentence: "Paragraph (2) shall not apply to any punitive damages in connection with a case not involving physical ii^jury or physical sickness." (b) EFFECTIVE DATE. — 26 USC 104 note. (1) IN GENERAL.— Except as provided in paragraph (2), the amendment made by subsection (a) shall apply to amounts received after July 10, 1989, in taxable years encQng after such date. (2) EbccEPTioN.—The amendment made by subsection (a) shall not apply to any amount received— (A) under any written binding agreement, court decree, or mediation award in effect on (or issued on or before) July 10, 1989, or (B) pursuant to any suit Hied on or before July 10, 1989. SEC. 7642. TREATMENT OF DISTRIBUTIONS BY PARTNERSHIPS OF CONTRIBUTED PROPERTY. (a) GENERAL RULE.— Subsection (c) of section 704 (relating to contributed property) is amended to read as follows:

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