Page:United States Statutes at Large Volume 94 Part 1.djvu/263

 PUBLIC LAW 96-222—APR. 1, 1980

94 STAT. 213

for regulated investment companies) is amended by striking out "860(d)" and inserting in lieu thereof "860(e)". 26 USC 860. (B) The subsection heading of subsection (f) of section 860 is amended by striking out "EFFICIENCY" and inserting in lieu thereof "DEFICIENCY".

(C) Clause (i) of section 860(f)(2)(A) is amended by striking out "computed without regard" and inserting in lieu thereof "(computed without regard". (12) AMENDMENT RELATED TO SECTION 365 OF THE ACT.—Subparagraph (A) of section 357(c)(3) (relating to liabilities in excess of basis) is amended to read as follows: "(A) IN GENERAL.—If a taxpayer transfers, in an exchange to which section 351 applies, a liability the payment of which either— "(i) would give rise to a deduction, or "(ii) would be described in section 736(a), then, for purposes of paragraph (1), the amount of such liability shall be excluded in determining the amount of liabilities assumed or to which the property transferred is subject." (13) AMENDMENTS RELATED TO SECTION 366 OF THE ACT.— (A) WITHHOLDING.—Subsection (a) of section 3401 (defining wages) is amended— (i) by striking out "or" at the end of paragraph (17), (ii) by striking out the period at the end of the paragraph (18) added by section 207(a) of the Foreign Earned Income Act of 1978 and inserting in lieu thereof a semicolon, (iii) by redesignating the paragraph (18) added by section 164(b)(1) of the Revenue Act of 1978 as paragraph (19), (iv) by striking out "section 124." in paragraph (19) (as so redesignated) and inserting in lieu thereof "section 127; or", and (v) by adding at the end thereof the following new paragraph: "(20) for any medical care reimbursement made to or for the benefit of an employee under a self-insured medical reimbursement plan (within the meaning of section 105(h)(6))." (B)

CLARIFICATION

OF NONDISCRIMINATORY

26 USC 860. 92 Stat. 2854. 26 USC 357. 26 USC 351.

92 Stat. 2855. 26 USC 3401.

92 Stat. 3108. 92 Stat. 2811.

ELIGIBILITY

CLASSIFICATIONS.—Clause (ii) of section 105(h)(3)(A) is 26usei05. amended by striking out "highly compensated participants" and inserting in lieu thereof "highly compensated individuals". (C) CLARIFICATION OF EXCESS REIMBURSEMENT OF HIGHLY

COMPENSATED INDIVIDUALS.—Subparagraph (A) of section

105(h)(7) is amended to read as follows: "(A) in the case of a benefit available to highly compensated individuals but not to all other participants (or which otherwise fails to satisfy the requirements of paragraph (2)(B)), the amount reimbursed under the plan to the employee with respect to such benefit, and". (D) CLARIFICATION OF EFFECTIVE DATE.—Subsection (b) of

section 366 of the Revenue Act of 1978 is amended to read as 26 USC 105 note, follows: "(h) EFFECTIVE DATE.—The amendment made by this section shall 26 USC 105 note. apply to amounts reimbursed after December 31, 1979. For purposes

�