65 STAT.]
PUBLIC LAW 183—OCT. 20, 1951
507
interest, and (2) in the case of collections of items (not payable in the United States) of interest upon the bonds of foreign countries and interest upon the bonds of and dividends from foreign corporations by persons undertaking as a matter of business or for profit the collection of foreign payments of such interest or dividends by means of coupons, checks, or bills of exchange." SEC. 334. ABATEMENT OF INCOME TAX FOR CERTAIN MEMBERS OF ARMED FORCES UPON DEATH. Supplement D of chapter 1 of the Internal Revenue Code (relating ^^**g^o j., to returns and payment of tax) is hereby amended by adding at the 153. ' ' end thereof the following new section: ^i^ PP- ^' ^ • "SEC. 154. INCOME TAXES OF MEMBERS OF ARMED FORCES UPON DEATH. " I n the case of any individual who dies after June 24, 1950, and prior to January 1, 1954, while in active service as a member of the Armed Forces of the United States, if such death occurred while serving in a combat zone (as determined under section 22(b) (13)) ^»<e,p.484. or as a result of wounds, disease, or injury incurred while so serving— " (a) the tax imposed by this chapter shall not apply with respect to the taxable year in which falls the date of his death, or with respect to any prior taxable year ending on or after the first day he so served in a combat zone after June 24, 1950; and "(b) the tax under this chapter and under the corresponding title of each prior revenue law for taxable years preceding those specified in clause (a) which is unpaid at the date of his death (including interest, additions to the tax, and additional amounts) shall not be assessed, and if assessed the assessment shall be abated, and if collected shall be credited or refunded as an overpayment." SEC. 335. EMPLOYEES' TRUSTS. (a) AMENDMENT OF SECTION 165 (b).—Section 165(b) (relating to 26u^s'cf^5les(b) taxability of beneficiary on distributions from an employees' trust) is hereby amended by adding at the end thereof the following new sentence: "Where such total distributions include securities of the employer corporation, there shall be excluded from such excess the net unrealized appreciation attributable to that part of the total distributions which consists of the securities of the employer corporation so distributed. The amount of such net unrealized appreciation and the resulting adjustments to basis of the securities of the employer corporation so distributed shall be determined in accordance with regulations which shall be prescribed by the Secretary. For purposes of this subsection, the term 'securities' means only shares of stock and bonds or debentures issued by a corporation with interest coupons or in registered form, and the term 'securities of the employer corporation' includes securities of a parent or subsidiary corporation (as defined in section 130A (d)(2) and (3)) of the employer corporation." ^4 s^at 94^- ^^^ (b) EFFECTIVE DATE.—The amendment made by this section shall (d). be applicable with respect to distributions made after December 31, 1950. SEC. 336. LIFE INSURANCE COMPANIES. (a) TAX FOR 1951.—Section 201(a)(1) (relating to imposition of Su^g c' §201 (a) tax on life insurance companies) is hereby amended by adding at the C D end thereof the following: " I n lieu of the taxes imposed by the preceding sentence, there shall be levied, collected, and paid for taxable years beginning in 1951 upon the 1951 adjusted normal-tax net income (as defined in section 203A) of every life insurance company a tax POS«,p. 508. equal to the sum of the following:
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