Page:United States Statutes at Large Volume 53 Part 2.djvu/924

 PUBLIC LAWS-CH. 666-AUG. 10, 1939 Interest, restriction on payment. Ante, p. 1387. Years for which credit permitted. Certain services per- formed prior to Jan. 1, 1940, restriction on tax collections. 49 Stat. 636, 639. 42 U. S. C., Supp. IV, i§ 1001,1101. Ante, pp. 1387,1396. I. R. C., ch.9, sub- chs. A, C. Refunds. Old-age benefits. Restriction on cer- tain payments. 49 Stat. 622 . 42 U. 8. C., Supp. IV, § 401. Lump-sum pay- ments. 49 Stat. 624 . 42 U. S. C., Supp. IV, § 404. Contributions to State fund, years 1936 or 1937, held not to be required payments, credit for. 49 Stat. 643. 42 U. S. C., Supp. IV, § 1107 (f). 49 Stat. 639. 42 U. S. C., Supp. IV, 1101. Periods of limita- tion, suspension of running of. Ante,p. 400 . I. R. C. §3312(a). Certain taxes not deemed penalty, etc.. under bankruptcy laws. Ante, p. 1396. I. R. C., ch. 9, sub- ch. C. 49 Stat. 639. 42 U. S. C., Supp. IV, I 1101. 52 Stat. 867. 11 U. 8. C., Supp. IV, I 93j. Clerical changes. Ante, p. 178. I. R. C. 1430. Ante, p. 178. I. R. C.§ 1428. Services performed during 1939 by indi- vidual attaining age of 65. subsections (a), (b), and (h), may be made in accordance with the provisions of law applicable in the case of erroneous or illegal collec- tion of the tax. No interest shall be allowed or paid on the amount of any such refund. (e) Notwithstanding the provisions of section 1601 (a) (2) of the Internal Revenue Code, as amended, credit shall be permitted under such section 1601, against the tax for the taxable year in which remuneration is paid for services rendered during a prior year, for the amounts of contributions with respect to such remuneration which have not been credited against the tax for any prior taxable year. Credit shall be permitted under this subsection only against the tax for the years 1940, 1941, and 1942, and only for contributions with respect to remuneration for services rendered after December 31, 1938. (f) No tax shall be collected under title VIII or IX of the Social Security Act or under the Federal Insurance Contributions Act or the Federal Unemployment Tax Act, with respect to services rendered prior to January 1, 1940, which are described in subparagraphs (11) and (12) of sections 1426 (b) and 1607 (c) of the Internal Revenue Code, as amended, and any such tax heretofore collected (including penalty and interest with respect thereto, if any), shall be refunded in accordance with the provisions of law applicable in the case of erroneous or illegal collection of the tax. No interest shall be allowed or paid on the amount of any such refund. No payment shall be made under title II of the Social Security Act with respect to services rendered prior to January 1, 1940, which are described in subpara- graphs (11) and (12) of section 209 (b) of such Act, as amended. (g) No lump-sum payment shall be made under the provisions of section 204 of the Social Security Act after the date of enactment of this Act, except to the estate of an individual who dies prior to January 1, 1940. (h) Notwithstanding the provision of section 907 (f) of the Social Security Act limiting the term "contributions" to payments required by a State law, credit shall be permitted against the tax imposed by section 901 of such Act for the calendar year 1936 or 1937, for so much of any payments made as contributions for such year into the unem- ployment fund of a State which are held by the highest court of such State not to be required payments under the unemployment com- pensation law of such State if they are not returned to the taxpayer. So much of such payments as are not so returned shall be considered to be "contributions ' " for the purposes of section 903 of such Act. The periods of limitations prescribed by section 3312 (a) of the Internal Revenue Code shall not begin to run, in the case of the tax for such year of any taxpayer to whom any such payment is returned, until the last such payment is returned to the taxpayer. (i) No part of the tax imposed by the Federal Unemployment Tax Act or by title IX of the Social Security Act, whether or not the taxpayer is entitled to a credit against such tax, shall be deemed to be a penalty or forfeiture within the meaning of section 57j of the Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States", approved July 1, 1898, as amended. SEC. 903. Section 1430 of the Internal Revenue Code is amended by striking out "3762" and inserting in lieu thereof "3661". SEC. 904. Effective January 1, 1940, section 1428 of the Internal Revenue Code is amended by striking out "paragraphs (9) and (10)" and inserting in lieu thereof "paragraph (9)". SEC. 905. (a) No service performed at any time during the cal- endar year 1939 by any individual shall, by reason of the individual having attained the age of sixty-five, be excepted from employ- 1400 [53 STAT.

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