Page 564

TITLE 26-INTERNAL REVENUE CODE AMENDMENTS 1976-Subsec. (a)(1)(C)(i), (it). Pub. L. 94-455, §1901(b)(3)(I), substituted "ordinary income" for "gain from the sale or exchange of property which is not a capital asset". Subsec. (d). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary", each time appearing. Subsec. (g)(7). Pub. L. 94-455, § 1012(a)(2), added subsec. (g)(7). 1974-Subsec. (b)(1). Pub. L. 93-406 inserted refer- ence to section 402(e)(1). 1971-Subsee. (a)(1)(A). Pub. L. 92-178, § 313(a). in- serted after "interest" the parenthetical phrase "(other than original issue discount as defined in sec- tion 1232(b))".. Subsec. (a)(1)(C). Pub. L. 92-178, § 313(b), designated existing provisions as cl. (i), inserted therein "and before April 1, 1972," after "September 28, 1965,", sub- stituted "section 1232(a)(2)(B)" for "section 1232", and inserted ", in the case of corporate obligations issued after May 27, 1969, and before April 1, 1972, amounts which would be so considered but for the fact the obli., gations were issued after May 27, 1969,", and added cls. (1i) and (iii). 1966-Subsecs. (a), (b). Pub. L. 89-809 consolidated the substance of former subsecs. (a) to (c) and, as part of the consolidation, revised the overall income tax treatment of nonresident alien individuals by substi- tuting provisions dividing their income for tax pur- poses into two basic groups according to whether or not the income is effectively connected with a United States trade or business for provisions calling for dif- ferent tax treatment based upon whether or not they are, or are not, engaged in a trade or business in the United States, with a further breakdown of those not engaged in trade or business in the United States as to whether their income is over or under $21,200. Subsec. (c). Pub. L. 89-809 redesignated former subsec. (d) as subsec. (c) and, in subsec. (c) as so rede- signated, added provisions that any income described in section 1441(b)(1) or (2) which is received by such individual shall, to the extent derived from sources wittin the United States, be treated as effectively con- nected with the conduct of a trade or business within the United States. Substance of former subsec. (c) re- vised and incorporated into subsecs. (a) and (b). Subsec. (d). Pub. L. 89-809 added subsec. (d). Former subsec. (d) redesignated as subsec. (c) and amended. Subsec. (e). Pub. L. 89-809 added subsec. (e). Former subsec. (e) redesignated as subsec. (g) and amended. Subsec. (f). Pub. L. 89-809 added subsec. (f). Subsec. (g). Pub. L. 89-801) redesignated former subsec. (e) as subsec. (g) and, In subsec. (g) as so rede- signated, added pars. (2) and (4) to (6) while redesig- nating former pars. (1) and (2) as (3) and (1) respec- tively. 1964-Subsee. (a). Pub. L. 88-272, § 113(b)(2), substi- tuted "30 percent tax" for "and gross income of not more than $15,400" in the subsection catchline. Subsec. (b). Pub. L. 88-272, §§ 113(b)(1), (3), 201(d)(12), substituted "$19,000 in the case of a tax- able year beginning in 1964 or more than $21,200 in the case of a taxable year beginning after 1964" for "$15,400", "the credit under section 35" for "the sum of the credits under sections 34 and 35" in the text, and "Regular tax" for "and gross income of more than $15,400" in the subsection catchline. 1961-Subsec. (d). Pub. L. 87-256 added subsec. (d) and redesignated former subsec. (d) as (e). Subsec. (e). Pub. L. 87-256 redesignated iormer subsec. (d) as (e). 1960-Subsec. d). Pub. L. 86-437 substituted "Cross references" for "Doubling of tax" in subsection catch- line, and added the cross reference to section 402(a)(4). 1958-Subsec. (a)(1). Pub. L. 85-866, § 40(a), inserted "section 403(a)(2)," after "section 402(a)(2),". Subsec. (b) Pub. L. 85-866, §41(a), added last par. covering former provisions of par. (3), which was de- leted by the amendment, and containing new provi- sions with references to credits under section 34 and 35 and exclusion under section 116 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Enactment of subsec. (g)(7) by section 1012(a)(2) of Pub. L. 94-455 applicable to taxable years ending on or after Dec, 31, 1975, see section 1012(d) of Pub. L. 94- 455, set out as an Effective Date of 1976 Amendment note under section 6013 of this title. Amendment of subsec. (a)(1)(C)(i), (if) by section 1901(b)(3)(I) of Pub. L, 94-455 effective for 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 OF 1974 AMENDMENT Amendment by Pub. L. 93-406 applicable only with respect to distributions or payments made after Dec. 31, 1973, in taxable years beginning after Dec. 31, 1973, see section 2005(d) of Pub. L. 93-406, set out as an Effective Date of 1974 Amendment note under sec- tion 402 of this title. EFFECTIVE DATE OF 1971 AMENDMENT Section 313(f) of Pub. L. 92-178 provided that: "The amendments to section 871 and 881 of the Internal Revenue Code of 1954 made by this section [to subsec. (a)(1)(A), 'C) of this section and section 881(a)(1), (3) of this title] shall apply with respect to taxable years beginning after December 31, 1966. The amendments to sections 1441 and 1442 of such Code made by this section [to sections 1441 and 1442 of this title] shall apply with respect to payments occurring on or after April 1 1972." EFFECTIVE DATE OF 1966 AMENDMENT Section 103(n) of Pub. L. 89-809 provided that: "(1) The amendments made by this section (other than the amendments made by subsections (h), (i), and (k)) [amending sections 1. 116, 154, 871 to 874, 875, 932, 6015, and 7701 of this title, redesignating section 877 as 878 and adding section 877 of this title and re- pealing section 1493 of this title] shall apply with re- spect to taxable years beginning after December 31, 1966. "(2) The amendments made by subsection (h) [amending section 1441 of this title] shall apply with respect to payments made in taxable years of recipi- ents beginning after December 31, 1966. "(3) The amendments made by subsection (i) [amending section 1461 of this title] shall apply with respect to payments occurring after December 31, 1966. "(4) The amendments made by subsection (k) [amending section 3401 of this title] shall apply with respect to remuneration paid after December 31, 1966." EFFECTIVE DATE OF 1964 AMENDMENT Amendment of subsec. (b) by section 113(b)(1) of Pub. L. 88-272, except for purposes of section 21 of this title, effective with respect to taxable years begin- ning after Dec. 31, 1963, see section 131 of Pub. L. 88- 272, set out as an Effective Date of 1964 Amendment note under section 1 of this title. Amendment of subsec. (b) by section 201(d)(12) of Pub. L. 88-272, which substituted "the credit under section 35" for the "sum of the credits under sections 34 and 35," applicable with respect to dividends re- ceived after Dec. 31, 1964, in taxable years ending after such dafe, see section 201(e) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 37 of this title. EFFRCTIVE DATE OF 1961 AMENDMENT Amendment by Pub. L. 87-256 applicable to taxable years beginning after Dec. 31, 1961, see section 110(h)(1) of Pub. L. 87-256, set out as an Effective Date of 1961 Amendment note under section 117 of this title. § 871 Page 564