Page:United States Statutes at Large Volume 58 Part 1.djvu/255

 58 STAT.] 78TH CONG. , 2D SESS.-CH. 210-MAY 29, 1944 "(e) For penalties for failure to file information returns with respect to foreign personal holding companies and foreign corpora- tions, see section 340." 7) Section 291 (b) (cross reference) is repealed. (8) Section 294 (d) (2) (relating to substantial underestimate of estimated tax) is amended by striking out ", 35, and 466 (e)" and inserting in lieu thereof "and 35". (9) Section 322 (a) (2) (relating to excessive withholding) is amended by striking out "Part II of Subchapter D or" and by striking out "or 466 (e)". (10) Section 322 (e) (relating to presumption as to date of payment) is amended by striking out "under Part II of Sub- chapter D or" and "or section 466 (e)". SEC. 7 . SERVICES OF CHILDREN. Section 22 (relating to gross income) is amended by inserting at the end thereof the following: "(m) SERVICES OF CHILD. - "(1) Amounts received in respect of the services of a child shall be included in his gross income and not in the gross income of the parent, even though such amounts are not received by the child. "(2) All expenditures by the parent or the child attributable to amounts which are includible in the gross income of the child and not of the parent solely by reason of paragraph (1) shall be deemed to have been paid or incurred by the child. "(3) For the purposes of this subsection, the term 'parent' includes an individual who is entitled to the services of a child by reason of having parental rights and duties in respect of the child. "(4) Any tax assessed against the child, to the extent attribu- table to amounts includible in the gross income of the child and not of the parent solely by reason of paragraph (1), shall, if not paid by the child, for all purposes be considered as having also been properly assessed against the parent." SEC. 8 . ADJUSTED GROSS INCOME. (a) IN GENERAL.- Section 22 (relating to gross income) is amended by inserting at the end thereof the following: "(n) DEFINITON OF 'ADJUsTED GROSS INCOME'. - As used in this chapter the term 'adjusted gross income' means the gross income minus- "(1) TRADE AND BUSINESS DEDwCTIoNs. - T he deductions allowed by section 23 which are attributable to a trade or business carried on by the taxpayer, if such trade or business does not consist of the performance of services by the taxpayer as an employee; "(2) EXPENSES OF TRAVEL AND LODGING IN CONNECTION WIT EMPLOYMENT.- The deductions allowed by section 23 which con- sist of expenses of travel, meals, and lodging while away from home, paid or incurred by the taxpayer in connection with the performance by him of services as an employee; "(3) REIMBURSED EXPENSES IN CONNECTION WrIT EMPLOYMENT.- The deductions allowed by section 23 (other than expenses of travel, meals, and lodging while away from home) which con- sist of expenses paid or incurred by the taxpayer, m connection with the performance by him of services as an employee, under a reimbursement or other expense allowance arrangement with his employer; 235 53 btat. 98 . 26 U. S. C. 1340. 66 Stat. 893. 26 U. S. C., Supp. III, § 291 (b). Ante, p. 38. 57 Stat. 140 . 26U.S.C Supp. m, 322 (a) (2). 67 Stat. 140. 26 U. S. C., Supp. Im, § 322 (e). 63 Stat. 9. 26 U.S. C.C 22; Supp. III, § 22. Ante, pp. 33, 34; infra;post, p. 241 . Supra. 53 Stat. 12 . 26U.8.C.I23; Supp. III, i 23. Ante, pp. 34-3;po p. 236.

�