Page:United States Statutes at Large Volume 98 Part 3.djvu/809

 PUBLIC LAW 98-612—OCT. 31, 1984

98 STAT. 3181

"(d) DEFINITIONS.—For purposes of this section— "(1) SPECIFIED FRINGE BENEFIT PLAN.—The term 'specified fringe benefit plan' means— "(A) any quahfied group legal services plan (as defined in section 120), and "(B) any cafeteria plan (as defined in section 125). "(2) APPLICABLE EXCLUSION.—The term 'applicable exclusion' means— "(A) section 120, in the case of a qualified group legal services plan, and "(B) section 125, in the case of a cafeteria plan." (2) PENALTY.—Subsection (f) of section 6652 of such Code 26 USC 6652. (relating to failure to file certain information returns, registration statements, etc.) is amended by striking out "125(h) (relating to information with respect to cafeteria plans)" and inserting in lieu thereof "6039D (relating to returns and records with respect to certain fringe benefit plans)". (3) CONFORMING AMENDMENTS.—

(A) Section 120 of such Code is amended by adding at the 26 USC 120. end thereof the following new subsection: "(f) CROSS REFERENCE.— "For reporting and recordkeeping requirements, see section 6039D."

(B) Section 125 of such Code (relating to cafeteria plans) is 26 USC 125. amended by striking out subsection (h) and inserting in lieu thereof the following: "(h) CROSS REFERENCE.— "For reporting and recordkeeping requirements, see section 6039D."

(4) CLERICAL AMENDMENT.—The table of sections for subpart A of part III of subchapter A of chapter 61 of such Code is amended by inserting after the item relating to section 6039C the following new item: "Sec. 6039D. Returns and records with respect to certain fringe benefit plans." (c) EXCLUSION FROM RAILROAD RETIREMENT TAXES FOR AMOUNTS WHICH MAY B E EXCLUDED UNDER SECTION 120.—Subsection (e) of

section 3231 of such Code (defining compensation for purposes of the 26 USC 3231. railroad retirement taxes) is amended by adding at the end thereof the following new paragraph: "(6) The term 'compensation' shall not include any contribution, payment, or service provided by an employer which may be excluded from the gross income of an employee, his spouse, or his dependents, under the provisions of section 120 (relating to amounts received under qualified group legal services plans)." (d) EFFECTIVE DATES.— (1) SUBSECTION (A).—The

amendment made by subsection (a) shall apply to taxable years ending after December 31, 1984. (2) SUBSECTION (B).—The amendments made by subsection (b) shall take effect on January 1, 1985. (3) SUBSECTION (C).—The amendment made by subsection (c) shall apply to remuneration paid after December 31, 1984.

26 USC 120 note. 26 USC 6039D note. 26 USC 3231 "o*^e.

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