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TITLE 26-INTERNAL REVENUE CODE ums (computed on the basis of 5-year age brackets) prescribed by regulations by the Sec- retary. In the case of an employee who has at- tained age 64, the cost prescribed shall not exceed the cost with respect to such individual if he were age 63. (Added Pub. L. 88-272, title II, § 204(a)(1), Feb. 26, 1964, 78 Stat. 36, and amended Pub. L. 89- 97, title I, § 106(d)(3), July 30, 1965, 79 Stat. 337; Pub. L. 94-455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) AMENDMENTS 1976-Subsec. (c). Pub. L. 94-455 struck out "or his delegate" following "Secretary". 1965-Subsec. (b)(1). Pub. L. 89-97 substituted "sec- tion 72(m)(7)" for "paragraph (3) of section 213(g), de. termined without regard to paragraph (4) thereof". EFrEcTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89-97 applicable to taxable years beginning after Dec. 31, 1966, see section 106(e) of Pub. L. 89-97, set out as an Effective Date of 1965 Amendment note under section 213 of this title. EFFECTIVE DATE Section 204(d) of Pub. L. 88-272 provided that: "The amendments made by subsections (a) (to this section. and section 7701(a)(20) of this title] and (c) [to sec- tions 6052 and 6678 of this title] and paragraph (3) of section 6652(a) of the Internal Revenue Code of 1954 (as amended by section 221(b)(2) of this Act) [to sec- tion 6652(a) of this title], shall apply with respect to group-term life insurance provided alor December 31. 1963, in taxable years ending after such date. The amendments made by subsection (b) [to section 3401(a)(13), (14) of this title] shall apply with respect to remuneration paid after December 31, 1963, in the form of group.term life insurance provided after such date. In applying section 79(b) of the Internal Rev- enue Code of 1954 (as added by subsection (a)(1) of this section) [subsec. (b) of this section] to a taxable year beginning before May 1, 1964. if paragraph (2)(B) of such section applies with respect to an employee for the period beginning May 1, 1964, and ending with the close of his first taxable year ending after April 30, 1964, such paragraph (2)(B) shall be treated as apply- ing with respect to such employee for the period be- ginning January 1, 1964, and ending April 30, 1964." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 6052, 7701 of this title. § 80. Restoration of value of certain securities (a) General rule In the case of a domestic corporation subject to the tax imposed by section 11 or 802, if the value of any security (as defined in section 165(g)(2))- (1) which became worthless by reason of the expropriation, intervention, seizure, or similar taking by the government of any for- eign country, any political subdivision there- of, or any agency or instrumentality of the foregoing of property to which such security was related, and (2) which was taken into account as a loss from the sale or exchange of a capital asset or with respect to which a deduction for a loss was allowed under section 165, is restored in whole or in part during any tax- able year by reaon of any recovery of money or other property in respect of the property to which such security was related, the value so restored (to the extent that, when added to the value so restored during prior taxable years, it does not exceed the amount of the loss de- scribed in paragraph (2)) shall, except,as pro- vided in subsection (b), be included in gross income for the taxable year in which such res- toration occurs. b) Reduction for failure to receive tax benefit The amount otherwise includible in gross income under subsection (a) in respect of any security shall be reduced by an amount equal to the amount (if any) of the loss described in sub- section (a)(2) which did not result in a reduc- tion of the taxpayer's tax under this subtitle for any taxable year, determined under regula- tions prescribed by the Secretary. (c) Character of income For purposes of this subtitle- (1) Except as provided in paragraph (2), the amount included in gross income under this section shall be treated as ordinary income, (2) If the loss described in subsection (a)(2) was taken into account as a loss from the sale or exchange of a capital asset, the amount in- cluded in gross Income under this section shall be treated as long-term capital gain. (d) Treatment under foreign expropriation loss recov- ery provisions This section shall not apply to any recovery of a foreign expropriation loss to which section 1351 applies. (Added Pub. L. 89-384, § 1(b)(1), Apr. 8, 1966, 80 Stat. 101, and amended Pub. L. 94-455, title XIX, §§ 1901(b)(3)(K), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1793, 1834.) AMENDMENTS 1976-Subsec. (b). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (c)(1). Pub. L. 94-455, § 1901(b)(3)(K), substi- tuted "ordinary income" for "gain from the sale or ex- change of property which is neither a capital asset nor property described in section 1231". EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1901(b)(3)(K) of Pub. L. 94- 455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94- 455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE Section 1(b)(3) of Pub. L. 89-384 provided that: "The amendments made by this subsection [adding this sec- tion] shall apply to taxable years beginning after De- cember 31, 1965, but only with respect to losses de- scribed in section 80(a)(2) of the Internal Revenue Code of 1954 (as added by paragraph (1) of this sub- section) (subsec. (a)(2) of this section] which were sus- tained after December 31, 1958." § 81. Certain increases in suspense accounts There shall be included in gross income for the taxable year for which an increase is re- quired- (1) Certain dealers' reserves The amount of any increase in the suspense account required by paragraph (4)(B)(ii) of section 166(f) (relating to certain debt obliga- tions guaranteed by dealers). Page 106