PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 881 Subtitle D—Provisions Relating to Small Businesses SEC. 931. WAIVER OF PENALTY THROUGH JUNE 30, 1998, ON SMALL BUSINESSES FAILING TO MAKE ELECTRONIC FUND TRANSFERS OF TAXES. No penalty shall be imposed under the Internal Revenue Code 26 USC 6302 of 1986 solely by reason of a failure by a person to use the electronic note. fund transfer system established under section 6302(h) of such Code if— (1) such person is a member of a class of taxpayers first required to use such system on or after July 1, 1997, and (2) such failure occurs before July 1, 1998. SEC. 932. CLARIFICATION OF TREATMENT OF HOME OFFICE USE FOR ADMINISTRATIVE AND MANAGEMENT ACTIVITIES. (a) IN GENERAL. — Paragraph (1) of section 280A(c) is amended by adding at the end the following new sentence: "For purposes of subparagraph (A), the term 'principal place of business' includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substsuitial administrative or management activities of such trade or business.". (b) EFFECTIVE DATE. —The amendment made by subsection (a) 26 USC 280A shall apply to taxable years beginning after December 31, 1998. note. SEC. 933. AVERAGING OF FARM INCOME OVER 3 YEARS. (a) IN GENERAL. —Subchapter Q of chapter 1 (relating to readjustment of tax between years and special limitations) is amended by adding the following new part: " PART I—INCOME AVERAGING "Sec. 1301. Averaging of farm income. "SEC. 1301. AVERAGING OF FARM INCOME. "(a) IN GENERAL.—At the election of an individual engaged in a farming business, the tax imposed by section 1 for such taxable year shall be equal to the sum of— "(1) a tax computed under such section on taxable income reduced by elected farm income, plus "(2) the increase in tax imposed by section 1 which would result if taxable income for each of the 3 prior taxable years were increased by an amount equal to one-third of the elected farm income. Any adjustment under this section for any taxable year shall be taken into account in applying this section for any subsequent taxable year. "(b) DEFINITIONS.— In this section— "(1) ELECTED FARM INCOME.— "(A) IN GENERAL.— The term 'elected farm income' means so much of the taxable income for the taxable year— "(i) which is attributable to any farming business; and
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