Page:United States Statutes at Large Volume 92 Part 3.djvu/210

 92 STAT. 2842

PUBLIC LAW 95-600—NOV. 6, 1978

26 USC 7428, 7476, 7477, ^'^^^-

proceedings under sections 7428,7476,7477, and 7478 to be heard {,y I\IQ commissioners of the court, and the court may authorize a commissioner to make the decision of the court with respect to such proceedings, subject to such conditions and review as the court may by rule provide." (2) TECHNICAL AMENDMENTS.—

26 USC 7476.

(A) Section 7476 is amended by striking out subsection (c) and by redesignating subsections (d) and (e) and subsections (c) and (d), respectively. (B) Section 7477 is amended by striking out subsection (c).

26 USC 7477.

(c) TECHNICAL AND CONFORMING AMENDMENTS.—

26 USC 7482.

(1) Paragraph (1) of section 74820)) (relating to venue for appeal of decision of Tax Court) is amended— (A) by striking out "provided in paragraph (2)" in paragraph (1) and inserting in lieu thereof "provided in paragraphs (2) and (3)", and (B) by adding at the end thereof the following new paragraph: "(3) DECLARATORY JUDGMENT ACTIONS RELATING TO STATUS OF CERTAIN GOVERNMENTAL OBLIGATIONS.—In the case of any deci-

26 USC 7478.

gion of the Tax Court in a proceeding under section 7478, such decision may only be reviewed by the Court of Appeals for the District of Columbia." (2) The table of sections for part IV of subchapter C of chapter 76 is amended by adding at the end thereof the following new item:

26 USC 7476.

"Sec. 7478. Declaratory judgments relating to status of certain governmental obligations."

26 USC 7478 note-

26 USC 103 "<***•

26 USC 103.

(d) EFFECTIVE DATE.—The amendments made by this section shall apply to requests for determinations made after December 81, 1978. SEC. 337. DISPOSITION OF AMOUNTS GENERATED BY ADVANCE REFUNDING OF CERTAIN GOVERNMENTAL OBLIGATIONS. (a) GENERAL RULE.—The payment to a charitable organization or a refund profit held in a trust fund or escrow arrangement, or held by an underwriter or other person under a qualified agreement in accordance with that agreement— (1) shall not cause the refunding obligations out of which the refund profit arose to be treated as arbitrage bonds (within the meaning of section 103(c) of the Internal Revenue Code of 1954) and (2) may be paid without penalty imposed on the issuer of such obligations. (b) RULE FOR GOVERNMENTS WHICH HAVE ALREADY PAID ARBITRAGE PROFITS TO THE UNITED STATES.—In the case of a State or local

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government which, before January 1, 1977— (1) requested in writing a rule by the Internal Revenue Service with respect to the tax consequences of paying refund profit to charitable organizations, (2) failed to rieceive a favorable ruling and did not pay the refund profit to a charitable organization, and which accounted to the United States for refund profit by direct payment to the United States, or by the purchase of low-interest United States obligations, the Secretary of the Treasury shall pay, out of any amounts in the Treasury not otherwise appropriated, an amount equal to the refund profit for which the State or local overnment has accounted to the United States. Amounts paid to a tate or local government under this subsection shall be distributed

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