Page:United States Statutes at Large Volume 92 Part 3.djvu/181

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2813

employer. A partnership shall be treated as the employer of each partner who is an employee within the meaning of paragraph (2). "(4) ATTRIBUTION RULES.— "(A) OWNERSHIP OF STOCK.—Ownership of stock in a corpo-

ration shall be determined in accordance with the rules provided under subsections (d) and (e) of section 1563 (with- 26 USC 1.563. out regard to section 1563(e)(3)(C)). "(B) INTEREST IN UNINCORPORATED TRADE OR BUSINESS.—

The interest of an employee in a trade or business which is not incorporated shall be determined in accordance with regulations prescribed by the Secretary, which shall be based on principles similar to the principles which apply in the case of subparagraph (A). "(5) CERTAIN TESTS NOT APPLICABLE.—An educational assistance program shall not be held or considered to fail to meet any requirements of subsection (b) merely because— "(A) of utilization rates for the different types of educational assistance made available under the program; or "(B) successful completion, or attaining a particular course grade, is required for or considered in determining reimbursement under the program. "(6) RELATIONSHIP TO CURRENT LAW.—This section shall not be construed to affect the deduction or inclusion in income of ' amounts (not within the exclusion under this section) which are paid or incurred, or received as reimbursement, for educational expenses under section 117,162 or 212. 26 USC 117, "(7) DISALLOWANCE OF EXCLUDED AMOUNTS AS CREDIT OR DEDUC-

162, 212.

TION.—No deduction or credit shall be allowed under any other section of this chapter for any amount excluded from income by reason of this section. "(d) TERMINATION.—This section shall not apply to taxable years beginning after December 31, 1983." (b) TREATMENT OF EMPLOYER EDUCATIONAL ASSISTANCE BENEFITS FOR PURPOSES OF WITHHOLDING, UNEMPLOYMENT TAXES, AND SOCIAL SKCTTRITY TAXFS

(1) Section 3401(a) (relating to the definition of wages for 26 USC 3401. purposes of collection of income tax at the source) is amended— (A) by striking out "or" at the end of paragraph (16); (B) by striking out the period at the end of paragraph (17); and (C) by adding at the end thereof the following new paragraph: "(18) for any payment made, or benefit furnished, to or for the benefit of an employee if at the time of such payment or such furnishing it is reasonable to believe that the employee will be able to exclude such payment or benefit from income under section 124.". 26 USC 124. (2) Section 3306(b) (relating to the definition of wages for 26 USC 3306. purposes of the Federal Unemployment Tax Act) is amended— (A) by striking out "or" at the end of paragraph (11); (B) by striking out the period at the end of paragraph (12) and inserting in lieu thereof "; or"; and (C) by adding at the end thereof the following new paragraph: "(13) any payment made, or benefit furnished, to or for the benefit of an employee if at the time of such payment or such furnishing it is reasonable to believe that the employee will be

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