Page:United States Statutes at Large Volume 92 Part 3.djvu/253

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2885

(d) EFFECTIVE DATES.— (1) The amendment made by subsection (a) shall apply with respect to years ending June 30, 1979, and June 30, 1980. (2) The amendments made by subsections (b) and (c) shall apply with respect to years beginning after June 30, 1980. SEC. 522. TREATMENT OF CERTAIN PRIVATE FOUNDATIONS FOR PURPOSES OF SECTION 4942. (a) GENERAL RULE.—Subsection 0") of section 4942 (relating to other definitions) is amended by adding at the end thereof the following new paragraph: "(6) CERTAIN ELDERLY CARE FACILITIES.—For purposes of this section (but no other provisions of this title), the term 'operating foundation' includes any organization which, on May 26, 1969, and at all times thereafter before the close of the taxable year, operated and maintained as its principal functional purpose facilities for the long-term care, comfort, maintenance, or education of permanently and totally disabled persons, elderly persons, needy widows, or children but only if such organization meets the requirements of paragraph (3)(B)(ii)." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1969.

26 USC 4464 note.

26 USC 4942.

26 USC 4942 note.

Subtitle D—Income Tax Provisions SEC. 530. CONTROVERSIES INVOLVING WHETHER INDIVIDUALS ARE EMPLOYEES FOR PURPOSES OF THE EMPLOYMENT TAXES. (a) TERMINATION OF CERTAIN EMPLOYMENT TAX LIABILITY FOR 26 USC 3401 PERIODS BEFORE 1980.— note. (1) IN GENERAL.—If—

(A) for purposes of employment taxes, the taxpayer did not treat an individual as an employee for any period ending before January 1, 1980, and (B) in the case of periods after December 31, 1978, all Federal tax returns (including information returns) required to be filed by the taxpayer with respect to such individual for such period are filed on a basis consistent with the taxpayer's treatment of such individual as not being an employee, then, for purposes of applying such taxes for such period with respect to the taxpayer, the individual shall be deemed not to be an employee unless the taxpayer had no reasonable basis for not treating such individual as an employee. (2) STATUTORY STANDARDS PROVIDING ONE METHOD OF SATISFYING THE REQUIREMENTS OF PARAGRAPH (i).—For purposes of

paragraph (1), a taxpayer shall in any case be treated as having a reasonable basis for not treating an individual as an employee for a period if the taxpayer's treatment of such individual for such period was in reasonable reliance on any of the following: (A) judicial precedent, published rulings, technical advice with respect to the taxpayer, or a letter ruling to the taxpayer; (B) a past Internal Revenue Service audit of the taxpayer in which there was no assessment attributable to the treatment (for employment tax purposes) of the individuals holding positions substantially similar to the position held by this individual; or

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