PUBLIC LAWS-CH. 619-OCT. 21 , 1942 SEC. 136. DECLARATION THAT RETURN MADE UNDER PENALTIES FOR PERJURY IN LIEU OF OATH. (a) DECLARATION ON RETURNS.-S O much of the first sentence of 53 Stat. 27.u section 51 (relating to requirement of individual returns) as reads 51 (a). as follows: "The following individuals shall each make under oath Ante, p. 828. a return stating" is amended to read as follows: "The following individuals shall each make a return, which shall contain or be verified by a written declaration that it is made under the penalties of perjury, stating". 53 Stat. 62 . . S.. 62 145. (b) PENALTY. - Section 145 (relating to penalties) is amended by inserting after subsection (b) the following new subsection: "(c) Any individual who willfully makes and subscribes a return which he does not believe to be true and correct as to every material matter, shall be guilty of a felony, and, upon conviction thereof, 35 Stat. 1111 . shall be subject to the penalties prescribed for perjury in section 125 of the Criminal Code." 53 Stat. , (C) CLERICAL AMENDMENTS.-Section 145 (c) is amended by strik- (d),. . Iing out "(c)" and inserting in lieu thereof "(d)" and section 145 (d) is amended by striking out "(d)" and inserting in lieu thereof "(e)". SEC. 137. EXEMPTION OF VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATIONS. 53 Stat. 34. 26 U.S. C. 101 (16). 52 Stat. 482; 49 Stat. 1675; 48 Stat. 702; 47 Stat. 194; 45 Stat. 814. 53 Stat., Part 1. 45 Stat. 791; 47 Stat. 169; 48 Stat. 680; 49 Stat. 1648; 52 Stat. 447. 53 Stat. 175, 183. 26 U. S. C.. 1400- 1432; 1600 1611. Post, p1.981. 53 Stat. 35 . 26 U.S. C. 102(d) (1). "Section 102 net in- come." Post, p. 844. 53 Stat. 867. 26TU. s. . 23 (a). (a) EXEMPrION OF VOLUNTARY EMPLOYEES' BENEFICIARY AssocIA- TION. -Section 101 (16) of the Internal Revenue Code, and of the Revenue Acts of 1938, 1936, and 1934, and section 103 (16) of the Revenue Acts of 1932 and 1928, are amended to read as follows: "(16) Voluntary employees' beneficiary associations providing for the payment of life, sick, accident, or other benefits to the members of such association or their dependents, if (A) no part of their net earnings inures (other than through such payments) to the benefit of any private shareholder or individual, and (B) 85 per centum or more of the income consists of amounts collected from members and amounts contributed to the association by the employer of the members for the sole purpose of making such payments and meeting expenses;". (b) RETROACTIVE EFFECT. -For the purposes of the Internal Reve- nue Code and the Revenue Acts of 1928, 1932, 1934, 1936, and 1938, the amendments made to the Internal Revenue Code and those Acts by subsection (a) of this section shall be effective as if they were a part of the Internal Revenue Code and such revenue Acts on the respective dates of their enactment. (c) AMENDMENTS INAPPLICABLE TO EMPLOYMENT TAXES.-The amendments made by this section shall not apply to the employment taxes imposed by Subchapters A and C of Chapter 9 of the Internal Revenue Code, or the corresponding provisions of a prior law. SEC. 138. DENIAL OF CAPITAL LOSS CARRY-OVER TO SECTION 102 COMPANIES. That part of section 102 (d) (1) (relating to definition of section 102 net income) which precedes subparagraph (A) is amended to read as follows: "(1) SECTION 102 NET INCOME. -The term 'section 102 net income' means the net income, computed without the benefit of the capital loss carry-over provided in section 117 (e) from a taxable year which begins after December 31, 1940, and com- puted without the net operating loss deduction provided in sec- tion 23 (s), minus the sum of-'. [56 STAT.
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