Page:United States Statutes at Large Volume 94 Part 3.djvu/877

 PUBLIC LAW 96-605—DEC. 28, 1980

94 STAT. 3521

Public Law 96-605 96th Congress An Act To make various changes in the tax laws.

^—'[H.R. 7956]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Miscellaneous Revenue Act of SECTION 1. SHORT TITLE; AMENDMENT OF 1954 CODE. 1980. (a) SHORT TITLE.—This Act may be cited as the "Miscellaneous 26 USC i note.

Revenue Act of 1980". Ob) AMENDMENT OF 1954 CODE.—Except as otherwise expressly

provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954. 26 USC i.

TITLE I—AMENDMENTS RELATING TO INCOME TAX GENERALLY SEC. 101. TREATMENT OF COMMUNITY INCOME WHERE SPOUSES LIVE APART.

(a) GENERAL RULE.—Part I of subchapter B of chapter 1 (defining gross income, adjusted gross income, taxable income, etc.) is amended by adding at the end thereof the following new section: "SEC. 66. TREATMENT OF COMMUNITY INCOME WHERE SPOUSES LIVE 26 USC 66. APART. "(a) GENERAL RULE.—If—

"(1) 2 individuals are married to each other at any time during a calendar year; "(2) such individuals— "(A) live apart at all times during the calendar year, and "(B) do not file a joint return under section 6013 with each other for a taxable year beginning or ending in the calendar year; "(3) one or both of such individuals have earned income for the calendar year which is community income; and "(4) no portion of such earned income is transferred (directly or indirectly) between such individuals before the close of the calendar year, then, for purposes of this title, any community income of such individuals for the calendar year shall be treated in accordance with the rules provided by section 879(a). 26 USC 879. "(b) DEFINITIONS.—For purposes of this section— "(1) EARNED INCOME.—The term 'earned income' has the meaning given to such term by section 911(b). 26 USC 911. "(2) COMMUNITY INCOME.—The term 'community income' means income which, under applicable community property laws, is treated as community income.

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