Page:United States Statutes at Large Volume 96 Part 1.djvu/555

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 513

(c) REPEAL OF LIMITATIONS APPLICABLE TO SUBCHAPTER S CORPORA-

TIONS.—Section 1379 is amended— (1) by striking out subsections (a) and (b), and (2) by redesignating subsections (c) and (d) as subsections (a) and (b), respectively.

26 USC 1379.

(d) TECHNICAL AMENDMENTS.—

(1) Paragraph (1) of section 401(c)(1) (defining employee) is amended to read as follows:

26 USC 401.

"(1) SELF-EMPLOYED INDIVIDUAL TREATED AS EMPLOYEE.—

"(A) IN GENERAL.—The term 'employee' includes, for any taxable year, an individual who is a self-employed individual for such taxable year. "(B) SELF-EMPLOYED INDIVIDUAL.—The term 'selfemployed individual' means, with respect to any taxable year, an individual who has earned income (as defined in paragraph (2)) for such taxable year. To the extent provided in regulations prescribed by the Secretary, such term also includes, for any taxable year— "(i) an individual who would be a self-employed individual within the meaning of the preceding sentence but for the fact that the trade or business carried on by such individual did not have net profits for the taxable year, and "(ii) an individual who has been a self-employed individual within the meaning of the preceding sentence for any prior taxable year." (2) Subparagraph (A) of section 401(c)(2) (defining earned income) is amended by striking out "and" at the end of clause (iii), by striking out the period at the end of clause (iv) and inserting in lieu thereof ", and", and by adding at the end thereof the following new clause: "(v) with regard to the deductions allowed by sections 404 and 405(c) to the taxpayer." (3) Subsection (j) of section 408 is amended to read as follows:

26 USC 408.

"(j) INCREASE IN MAXIMUM LIMITATIONS FOR SIMPLIFIED EMPLOYEE

PENSIONS.—In the case of any simplified employee pension, subsections (a)(1) and (b)(2) of this section shall be applied by increasing the $2,000 amounts contained therein by the amount of the limitation in effect under section 415(c)(1)(A)." (4)(A) Paragraph (6) of section 408(k) is hereby repealed. (B) Paragraph (1) of section 408(k) is amended by striking out "(5), and (6)" and inserting in lieu thereof "and (5)". (C) Subparagraph (C) of section 408(k)(3) is amended to read as follows: "(C) CONTRIBUTIONS MUST BEAR UNIFORM RELATIONSHIP TO

TOTAL COMPENSATION.—For purposes of subparagraph (A), employer contributions to simplified employee pensions shall be considered discriminatory unless contributions thereto bear a uniform relationship to the total compensation (not in excess of the first $200,000) of each employee maintaining a simplified employee pension." (5) Paragraph (5) of section 415(c) (relating to application with 26 USC 415. section 404(e)) is hereby repealed.

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