Page:United States Statutes at Large Volume 94 Part 3.djvu/906

 94 STAT. 3550

PUBLIC LAW 96-608—DEC. 28, 1980

Public Law 96-608 96th Congress An Act Dec. 28, 1980 [H.R. 5973]

Internal Revenue Code of 1954, amendment. 26 USC 913.

To amend the Internal Revenue Code of 1954 to waive in certain cases the residency requirements for deductions or exclusions of individuals living abroad, to allow the tax-free rollover of certain distributions from money purchase pension plans, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. RESIDENCY REQUIREMENTS FOR DEDUCTIONS OR EXCLUSIONS OF INDIVIDUALS LIVING ABROAD.

(a) GENERAL RULE.—Subsection (j) of section 913 of the Internal Revenue Code of 1954 (relating to deduction for certain expenses of living abroad) is amended by adding at the end thereof the following new paragraph: "(4) WAIVER OF PERIOD OF STAY IN FOREIGN COUNTRY.—For

purposes of paragraphs (1) and (2) of subsection (a), an individual who— "(A) for any period is a bona fide resident of or is present in a foreign country, "(B) leaves such foreign country after August 31, 1978— "(i) during any period during which the Secretary determines, after consultation with the Secretary of State or his delegate, that individuals were required to leave such foreign country because of war, civil unrest, or similar adverse conditions in such foreign country which precluded the normal conduct of business by such individuals, and "(ii) before meeting the requirements of such paragraphs (1) and (2), and "(C) establishes to the satisfaction of the Secretary that he could reasonably have been expected to have met such requirements but for the conditions referred to in clause (i) of subparagraph (B), shall be treated as having met such requirements with respect to the period described in subparagraph (A) during which he was a bona fide resident or was present in the foreign country." 26 USC 913 note.

26 USC 911.

Supra.

(b) EFFECTIVE DATES.—

(1) IN GENERAL.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1977. (2) APPLICATION FOR PURPOSES OF SECTION 91I.—In the case of an individual who leaves the foreign country after August 31, 1978, rules similar to the rules of section 913(j)(4) of the Internal Revenue Code of 1954 (as added by subsection (a)) shall apply for purposes of applying section 911 of such Code for taxable years beginning in 1977 or 1978.

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