Page:United States Statutes at Large Volume 103 Part 3.djvu/406

 103 STAT. 2474 PUBLIC LAW 101-239—DEC. 19, 1989 SEC. 10204, CLARIFICATION OF RULES GOVERNING TAXATION UNDER FICA AND SECA OF INDIVIDUALS OF CERTAIN RELIGIOUS FAITHS. •'*'-• ' (a) EXEMPTION FROM SECA TAXATION FOR CERTAIN EMPLOYEES EXEMPT FROM FICA TAXATION. — (1) IN GENERAL.— Paragraph (3) of section 1402(g) of the In- 26 USC 1402. ternal Revenue Code of 1986 (relating to inapplicability of exemption to certain church employees) is amended— (A) in the heading, by striking "NOT TO APPLY" and ( inserting "TO APPLY"; and (B) by striking "shall not" and inserting "shall". 26 USC 1402 (2) EFFECTIVE DATE. —The amendments made by paragraph (1) »iote. shall apply with respect to taxable years beginning after Decem- ber 31, 1989. (b) TECHNICAL AMENDMENT CLARIFYING INCLUSION OF PARTNER- SHIPS AMONG EMPLOYERS ELIGIBLE FOR RELIGIOUS EXEMPTION FROM FICA. — (1) IN GENERAL.— Section 3127 of the Internal Revenue Code of 1986 (relating to exemption for employers and their employees where both are members of religious faiths opposed to participa- tion in Social Security Act programs) is amended— X (A) in subsection (a)(D, by inserting "(or, if the employer is a partnership, each partner therein)" after "an em- V .: ployer"; (B) in subsection (a), in the matter following paragraph (2), by striking "his employees" and inserting the employ- 3.^,,. ees thereof; (C) in subsection (b), by inserting "(or a partner)" after ', "an employer"; rj,. (D) in subsection (c), by striking "his employees" and inserting "the employees thereof; (E) in subsection (c)(l), by inserting "(or, if the employer is a partnership, each partner therein)" after "such em- ployer"; and (F) in subsection (c)(2), by striking "such employer or the employee involved ceases to meet" and inserting "such .'.•:' employer (or, if the employer is a partnership, any partner therein) or the employee involved does not meet', and by inserting "(or, if the employer is a partnership, any partner therein) after "such employer" the second place it ap- pears. 26 USC 3127 (2) EFFECTIVE DATE. —The amendments made by this subsec- note. tion shall be effective as if they were included in the amend- ments made by section 8007(a)(l) of the Technical and Mis- cellaneous Revenue Act of 1988 (102 Stat. 3781). SEC. 10205. TREATMENT OF GROUP-TERM LIFE INSURANCE UNDER RAIL- ROAD RETIREMENT TAXES. (a) IN GENERAL. —The second sentence of section 3231(e)(l) of the Internal Revenue Code of 1986 (defining compensation) is amended by striking ", (ii) tips" and inserting or death, except that this clause does not apply to a payment for group-term life insurance to the extent that such payment is includible in the gross income of the employee, (ii) tips". 26 USC 3231 (b) EFFECTIVE DATE.— note- (1) IN GENERAL.— Except as provided in paragraph (2), the amendment made by subsection (a) shall apply to—

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