Page:United States Statutes at Large Volume 91.djvu/190

 91 STAT. 156

26 USC 3402.

PUBLIC LAW 95-30—MAY 23, 1977 ration entitled to vote, and at least 65 percent of the total number of shares of all other classes of stock of such "• ' corporation; or " ( i i) members of three families (within the meaning of paragraph (1) of such section 4 4 7 (d)) owned, on -r October 4, 1976 (directly or through the application of such section 4 4 7 (d)), at least 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, and at least 50 percent of the total number of shares of all other classes of stock of such corporation; and substantially all of the stock of such corporation which was not so owned (directly or through the application of such section 447(d)), by members of such three families was owned, on October 4, 1976, directly— " (I) by employees of the corporation or members of the families (within the meaning of section 267 (c)(4) of such Code) of such employees, or " ( II) by a trust for the benefit of the employees of such corporation which is described in section 401 (a) of such Code and which is exempt from taxation ' • under section 501(a) of such Code, ,, the amendments made by paragraph (1) shall apply to taxable years beginning after December 31, 1977.". SEC. 405. WITHHOLDING TAX ON CERTAIN GAMBLING WINNINGS. (a) IN GENERAL.—Subparagraph (C) of section 8402(q)(3) of the I n t e r n a l Revenue Code of 1954 (relating to sweepstakes, wagering pools, and other lotteries) is amended to read as follows: "(C)

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SWEEPSTAKES, WAGERING POOLS, CERTAIN PARIMUTUEL

POOLS, jAi ALAi, AND LOTTERIES.—Procceds of morc than $1,000 from— " (i) a wager placed in a sweepstakes, wagering pool, or lottery (other than a wager described in subparagraph

" ( i i) a wagering transaction in a parimutuel pool with respect to horse races, dog races, or jai alai if the amount of such proceeds is at least 300 times as large as the amount wagered.". 26 USC 3402 (b) EFFECTIVE D A T E. — The amendments made by this section apply note. to payments made after April 30, 1977. SEC. 406. TERMINATION OF 1975 SPECIAL PAYMENTS TO CERTAIN INDIVIDUALS. 42 USC 402 note. Notwithstanding the provisions of section 702(a) of the T a x Reduc42 USC 402 note. tion Act of 1975, no payment shall, after the date of the enactment of this Act, be made under that section. SEC. 407. PAYMENTS TO THE GOVERNMENTS OF AMERICAN SAMOA, GUAM, AND THE VIRGIN ISLANDS. 26 USC 7651 (a) The Secretary of the Treasury is authorized to make separate note. payments to the government of American Samoa, the government of Guam, and the government of the Virgin Islands. The payment to the government of a particular possession shall be in an amount equal to the loss to that possession with respect to tax returns for the first taxable year beginning after December 31, 1976, by reason of sections eertification. 101 and 102 of this Act. Such amount shall be determined by the

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