622
Paying agents. Relief from liability. 57 Stat. 63.
53 Stat. 1226.
70 Stat. 397. 23 USC 120 note. Tax exemption.
Repeals.
46 Stat. 19, 775. 40 Stat. 2 9 1, 1309. 55 Stat. 7.
PUBLIC LAW 86-346-8EPT. 22, 1969
[73
ST A T.
bond shall be includible in gross income in the taxable year in which the obligation is finally redeemed or in the taxable year of final maturity, whichever is earlier." SEC. 103. Subsection (i) of section 22 of the Second Liberty Bond Act, as amended (31 U.S.C. sec. 757c(i)), is amended by inserting after the third sentence thereof the following: "Relief from liability shall be granted in all cases where the Secretary of the Treasury shall determine, under regulations prescribed by him, that written notice of liability or potential liability has not been given by the United States, within ten years from the date of the erroneous payment, to any of the foregoing agents or agencies whose liability is to be determined: Provided, That no relief shall be granted in any case in which a qualified paying agent has assumed unconditional liability to the United States." SEC. 104. The following provisions of law are amended by striking out the words "on original issue at par" and inserting in lieu thereof the words "on original issue at the issue price": (1) Section 6(g)(5) of the Act of March 24, 1934, as amended (22 U.S.C. sec. 1393 (g)(5)), relating to the trust account for the payment of pre-1934 bonds of the Government of the Philippines. (2) Section 201(d) of the Social Security Act (42 U.S.C. sec. 401(d)), relating to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund. (3) Section 904(b) of the Social Security Act (42 U.S.C. sec. 1104(b)), relating to the Unemployment Trust Fund. (4) Section 15(b) of the Railroad Retirement Act of 1937 (45 U.S.C. sec. 228o(b)), relating to the Railroad Retirement Account. (5) Section 209(e)(2) of the Highway Revenue Act of 1956 (23 U.S.C. sec. 173(e)(2)), relating to the Highway Trust Fund. SEC. 105. (a) Section 3701 of the Revised Statutes (31 U.S.C. sec. 742) is amended by adding at the end thereof the following: "This exemption extends to every form of taxation that would require that either the obligations or the interest thereon, or both, be considered, directly or indirectly, in the computation of the tax, except nondiscriminatory franchise or other nonproperty taxes in lieu thereof imposed on corporations and except estate taxes or inheritance taxes." (b) The following provisions of the Second Liberty Bond Act, as amended, relating to the tax-exempt status of obligations of the United States, are repealed, without changing the status of any outstanding obligation: (1) Subsections (b) and (d) of section 5 (31 U.S.C. sec. 754 (b) and (d)); (2) The second and third sentences of section 7 (31 U.S.C. sec. 747); (3) Subsection (b) of section 18 (31 U.S.C. sec. 7 5 3 (b)); (4) The first sentence of subsection (d) of section 22 (31 U.S.C. sec.75rc(d)). TITLE II—INCOME T A X TREATMENT OF CERTAIN EXCHANGES OF UNITED STATES OBLIGATIONS
68A Stat. 302. 26 USC 10311036.
SEC. 201. (a) Part III of subchapter O of chapter 1 of the Internal Revenue Code of 1954 (relating to common nontaxable exchanges) is amended by adding at the end thereof the following new section:
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