Page:United States Statutes at Large Volume 92 Part 3.djvu/287

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2919

(14) EXCISE TAX ON TRANSFERS OF PROPERTY TO FOREIGN PERSONS TO AVOID FEDERAL INCOME TAX.— (A) TRANSFERS INVOLVING ESTATES.—Section 1491 (relating 26 USC I49i.

to tax on transfers to avoid income tax) is amended by striking out "trust" each place it appears therein and inserting in lieu thereof "estate or trust". (B) CLARIFICATION OF PARAGRAPH (3) OF SECTION 1492.— Paragraph (3) of section 1492 (relating to nontaxable transfers) is amended to read as follows: "(3) To a transfer described in section 367; or". (C) EFFECTIVE DATE.—The amendments made by this paragraph shall apply to transfers after October 2, 1975.

26 USC 1492. 26 USC 367. ^^ ^^^ ^^^^ ^^^^'

(15) ELECTION TO TREAT NONRESIDENT ALIEN INDIVIDUAL AS RESIDENT OF THE UNITED STATES.— (A) PROVISIONS AFFECTED BY ELECTION.—Paragraph (1) of

section 6013(g) (relating to election to treat nonresident alien individual as resident of the United States) is amended to read as follows: "(1) IN GENERAL.—A nonresident alien individual with respect to whom this subsection is in effect for the taxable year shall be treated as a resident of the United States— "(A) for purposes of chapters 1 and 5 for all of such taxable year, and "(B) for purposes of chapter 24 (relating to wage withholding) for payments of wages made during such taxable year."

26 USC 6013.

26 USC i et seq., l^'^},fr^'^t et 26 USC 3401 seq.

(B) CONFORMING AMENDMENT.—Paragraph (5) of section

6013(g) (relating to termination of election by Secretary) is amended by striking out "chapter 1" and inserting in lieu thereof "chapters 1 and 5". (C) YEAR OF RESIDENCY.—Paragraph (1) of section 6013(h) (relating to return for year nonresident alien becomes resident) is amended— (i) by striking out "chapter 1" and inserting in lieu thereof "chapters 1 and 5", and (ii) by inserting before the period at the end thereof the following: ", and for purposes of chapter 24 (relating to wage withholding) for payments of wages made during such taxable year". (D)

CERTAIN

AMOUNTS WITHHELD

UNDER

CHAPTER

26 USC 6013.

26 USC i et seq. ^"^^^ ^^ *^926 USC 3401 et ^^i-

3

TREATED AS OVERPAYMENTS OF TAX.—Subsection (b) of section

6401 (relating to excessive credits) is amended by adding at the end thereof the following new sentence: "For purposes of the preceding sentence, any credit allowed under paragraph (1) of section 32 (relating to withholding of tax on nonresident aliens and on foreign corporations) to a nonresident alien individual for a taxable year with respect to which an election under section 6013(g) or (h) is in effect shall be treated as an amount allowable as a credit under section 31." (E) EFFECTIVE DATES.—The amendments made by this paragraph— (i) to the extent that they relate to chapter 1 or 5 of the Internal Revenue Code of 1954, shall apply to taxable years ending on or after December 31, 1975, and (ii) to the extent that they relate to wage withholding under chapter 24 of such Code, shall apply to remuneration paid on or after the first day of the first month

26 USC 6401. 26 USC 32. 26 USC 6013. 26 USC 31. 26 USC 6013 "°*^26 USC i et seq. 1491 et seq. 26 USC 340i et ^^?

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