Page:United States Statutes at Large Volume 91.djvu/171

 PUBLIC LAW 95-30—MAY 23, 1977 This paragraph shall not apply if the tax liability of the taxpayer's spouse, for the taxable year corresponding to the taxable year of the taxpayer, has been compromised under section 7122. " (h) MARITAL STATUS.—For purposes of this section, marital status shall be determined under section 143."

91 STAT. 137

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(b) T E C H N I C A L AND CONFORMING AMENDMENTS.—•

(1) Section 161 (relating to allowance of deductions) is 26 USC 161. amended by striking out "section 6 3 (a) " and inserting in lieu Ante, p. 135. thereof "section 63". (2) Subsection (d) of section 172 (relating to modifications in 26 USC 172. determining net operating loss) is amended by adding at the end thereof the following new paragraph: " (8) ZERO BRACKET A M O U N T. — I n the case of a tax p a y e r other

than a corporation, the zero bracket amount shall be treated as a deduction allowed by this chapter. For purposes of subsection " (A) the deduction provided by the preceding sentence shall be in lieu of any itemized deductions of the taxpayer, and " (B) such sentence shall not apply to an individual who elects to itemize deductions.". (3) Section 211 (relating to allowance of deductions) is 26 USC 211. amended by striking out "section 6 3 (a) " and inserting in lieu thereof "section 63". (4) Subparagraph (C) of section 402(e)(1) (relating to impo- 26 USC 402. sition of separate tax on lump sum distributions) is amended by striking out "amount equal to one-tenth of the excess of" and inserting in lieu thereof "amount equal to $2,200 plus one-tenth of the excess of". (5) Clause (iii) of section 4 4 1 (f)(2)(B) (relating to change 26 USC 441. in accounting period) is amended to read as follows: " ( i i i) if such change results in a short period to which subsection (b) of section 443 applies, the taxable income ^"fia. for such short period shall be placed on an annual basis ' for purposes o f such subsection by multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions as described in section 443(c)) by 365, by dividing the result by the number of days in the short period, and by a d d i n g the zero bracket amount, and the tax shall be the same part of the tax computed on the annual basis as the number of days in the short period is of 365 days." (6) Paragraph (1) of section 443(b) (relating to computation 26 USC 443. of tax on change of annual accounting period) is amended to read as follows: " (1) GENERAL RULE.—If a return is made under paragraph (1) '" ' of subsection (a), the taxable income for the short period shall be placed on an annual basis by multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, b u t only the adjusted amount of the deductions for personal exemptions) by 12, dividing the result by the number of months in the short period, and adding the zero bracket

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