Page:United States Statutes at Large Volume 98 Part 3.djvu/806

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PUBLIC LAW 98-000—MMMM. DD, 1984

98 STAT. 3178

PUBLIC LAW 98-611—OCT. 31, 1984 "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." (e) CLARIFICATION OF DISALLOWANCE OF CREDIT OR DEDUCTION.—

26 USC 127.

Paragraph (7) of section 127(c) of such Code (relating to definitions; special rules) is amended by inserting "to the employee" after "allowed". (f) EXCLUSION FROM RAILROAD RETIREMENT TAXES OF AMOUNTS WHICH MAY B E EXCLUDED UNDER SECTION 127.—Subsection (e) of

Ante, p. 884.

26 USC 127 note.

section 3231 of such Code (defining compensation for purposes of the railroad retirement taxes) is amended by adding at the end thereof the following new paragraph: "(6) The term 'compensation' shall not include any payment made, or benefit furnished, to or for the benefit of an employee if at the time of such payment or such furnishing it is reasonable to believe that the employee will be able to exclude such payment or benefit from income under section 127." (g) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 1983. (2) SUBSECTION (d).—The amendments made by subsection (d) shall take effect on January 1, 1985. (3) SUBSECTION (f).—The amendment made by subsection (0 shall apply to remuneration paid after December 31, 1984. (4) No PENALTIES OR INTEREST ON FAILURE TO WITHHOLD.—No

26 USC 3101. Ante, p. 3176.

Ante, p. 3176. Ante, p. 887.

penalty or interest shall be imposed on any failure to withhold under subtitle C of the Internal Revenue Code of 1954 (relating to employment taxes) with respect to amounts excluded from gross income under section 127 of such Code (as amended by this section and determined without regard to subsection (a)(2) thereof) with respect to periods during 1984. (5) COORDINATION WITH SECTION i i? (d).—In the case of education described in section 127(c)(8) of the Internal Revenue Code of 1954, as added by this section, section 117(d) of such Code shall be treated as in effect on and after January 1, 1984. (h) STUDY.—

(1) IN GENERAL.—The Secretary of the Treasury shall conduct a study of the effect of the provisions of section 127 of the Internal Revenue Code of 1954.