54 STAT.] 76TH CONG., 3D SESS.-CHS. 419, 420 -JUNE 25, 1940 TITLE IV SEO. 401. Section 205 of the Public Salary Tax Act of 1939 is amended by adding at the end thereof a new sentence to read as follows: "If the amount of the deficiency in income tax for any taxable year beginning before January 1, 1939, attributable to com- pensation paid indirectly by the United States, or any agency or instrumentality thereof, for personal service as an officer or employee of a State, or any political subdivision thereof, or any agency or instrumentality of any of the foregoing, is paid on or before March 15, 1941, then with respect to failure to pay such amount or make return of such compensation: (a) No criminal penalty shall apply; and (b) the additions to tax provided in sections 291 and 293 of the Internal Revenue Code shall not apply." Approved, June 25, 1940, 11:45 a. m., E. S . T. [CHAPTER 420] AN ACT To transfer the active list of the Construction Corps to the line of the Navy; and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Construc- tion Corps of the Navy is hereby abolished, but nothing herein shall affect the status, rights, or obligations of any officer now on the re- tired list of the Construction Corps. NAVAL CONSTRUCTORs TRANSFERED TO THE LINE: STATUS UPON TRANSFR SEc. 2. Officers now on the active list of the Construction Corps are hereby transferred to the line of the Navy, and shall be commis- sioned accordingly. Each officer so transferred shall- (a) Be designated for engineering duty only. (b) Occupy the rank and grade corresponding to those held by him in the Construction Corps. (c) Continue amenable to disciplinary action to the same extent in all respects as if not transferred. (d) Be an additional number in the grade to which transferred and in any grade to which he may thereafter be promoted. (e) Have the lineal position and precedence in the line which a board of naval officers finds that he would have had if he had remained in the line or if his original appointment had been in the line, and the finding of such board when approved by the Secretary of the Navy shall be conclusive for all purposes: Provided, That the existing relative rank, precedence, or seniority among themselves of officers transferred by this Act shall not be altered by such transfer. (f) Except as herein otherwise provided, be governed by the pro- visions of existing laws and of laws hereafter enacted relating to line officers assigned to engineering duty only. ADJUSTMENT OF STATUS SEa. 3 . For the purpose of adjusting the status in the line of the officers transferred thereto by this Act, the following shall govern with respect to such officers: (a) Each officer shall become eligible for consideration by a line selection board as of the date the next junior line officer becomes eligible therefor, subject to the provisions of section 7 (a) of this Act, and the same eligibility rule shall apply to all other officers designated for engineering duty only. 527 Deficiency in In- come tax. 53 Stat. 576. 26 U. S. C., Supp. V, § 22 (note). 53 Stat. 88 . 26 U. S. C., Supp. V. t 291.293. June 25, 1940 IS. 4027] [Public, No. 6571 Construction Corps of the Navy, abolish- ment. Retired officers not affected. Transfer of officers on active list to the line Designation, rank, etc. Adjustment of sta- tus in the line. Eligibility for con- sideration by line se- lection board.