Page:United States Statutes at Large Volume 88 Part 2.djvu/800

 2116 26 USC 6621 note.

26 USC 861,

26 USC 4911.

26 USC 2104.

26 USC 861

26use5oi.

PUBLIC LAW 93-625-JAN. 3, 1975

[88

STAT.

(e) EFFECTIVE DATE.—The amendments made by this section shall take effect on July 1, 1975, and apply to amounts outstanding on such date or arising thereafter. SEC. 8. INTEREST ON CERTAIN DEPOSITS, ETC., IN THE UNITED STATES. The last sentence of section 861(c) (relating to interest on deposits, etc.) is amended by striking out "December 31, 1975," and inserting in lieu thereof "December 31, 1976,". SEC. 9. EXCLUSION OF INTEREST ON CERTAIN OBLIGATIONS ISSUED PRIOR to 1971. (a) IN GENERAL.—Section 861(a)(1) (relating to income from sources within the United States) is amended— (1) by striking out "and" at the end of subparagraph (F), (2) by striking out the period at the end of subparagraph (G) and inserting in lieu thereof a comma and the word "and", and (3) by adding at the end thereof the following new subparagraph: " (H) interest on a debt obligation which was part of an issue which— " (i) was part of an issue outstanding on April 1, 1971, " (ii) was guaranteed by a United States person, " (iii) was treated under chapter 41 as a debt obligation of a foreign obligor, "(iv) as of June 30, 1974, had a maturity of not more than 15 years, and " (v) when issued, was purchased by one or more underwriters for the purpose of distribution through resale.". ^)3^ CoNFOKMixd AMENDMENT.—The 1 ast Sentence of section 2104(c) (relating (o debt obligations treated as property within the United States) is amended by striking out "or section 8 6 1 (a)(1)(G) " and inserting in lieu thereof a comma and "section 861(a)(1)(G), or section 861(a)(1)(H) ". ^(3^ EFFECTIVE DATE.—The amendment made by subsection (a) applies to interest paid after the date of enactment of this Act, and the amendment made by subsection (b) applies with respect to estates of decedents dying after such date. SEC. 10. TAX ON CERTAIN INCOME OF POLITICAL ORGANIZATIONS. (a) GENERAL RULE.—Subchapter F of chapter 1 (relating to exempt organizations) is amended by adding at the end thereof the following new part:

"PART VI—POLITICAL ORGANIZATIONS 26 USC 527.

"Sec. 527. Political Organizations. «sEC. 527. POLITICAL ORGANIZATIONS. (a) GENERAL RULE. — A political organization shall be subject to taxation under this subtitle only to the extent provided in this section. A political organization shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes. "(b)

26 USC 11.

TAX IMPOSED.—

"(1) IN GENERAL.—A tax is hereby imposed for each taxable year on the political organization taxable income of every political organization. Such tax shall consist of a normal tax and surtax computed as provided in section 11 as though the political organization were a corporation and as though the political organization taxable income were the taxable income referred to

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