80 STAT.]
PUBLIC LAW 89-384-APR. 8, 1966
99
cerned, in accordance with law, all amounts paid by, or withheld from amounts otherwise due, an employee or former employee of the United States in complete or partial satisfaction of his liability to the United States for which relief has been granted by section 2 oi this Act. "SEC. 3. I n accordance with regulations issued under the first section Effective dace. of this Act, the allowance authorized by such section may be made retroactively effective from the date erroneous payments of per diem in lieu of subsistence were discontinued as a result of the decision of the Comptroller General of the United States dated May 4, 1964 (B-153571), or as the result of administrative action taken by reason of that and similar decisions of the Comptroller General of the United States." Approved March 31, 1966.
Public Law 89-384 AN ACT To amend the Internal Revenue Code of 1954 to provide for treatment of the recovery of losses arising from expropriation, intervention, or confiscation of properties by governments of foreign countries, and to amend title XVIII of the Social Seciirity Act to extend the initial enrollment period for supplementary medical insurance benefits. Be it enacted by the Senate and House of Representatives United States of America in Congress assembled.
Ap,ii 8,,,, ^ [H. R. 6319]
of the
Foreign expropriations. SECTION 1. RECOVERIES OF FOREIGN EXPROPRIATION LOSSES. Medical insur(a) Subchapter Q of chapter 1 of the Internal Revenue Code of ^"nment^period.^'^ 1954 (relating to readjustment of tax between years) is amended by SSA Stat. 334; adding at the end thereof the following new part: ^^ ^*^*' ^°^'
"PART VII—RECOVERIES OF FOREIGN EXPROPRIATION LOSSES "Sec. 1351. Treatment of recoveries of foreign expropriation losses. "SEC. 1351. TREATMENT OF RECOVERIES OF FOREIGN EXPROPRIATION LOSSES. " (a) ELECTION.—
"(1) IN GENERAL.—This section shall apply only to a recovery, by a domestic corporation subject to the tax imposed by section 11 or 802, of a foreign expropriation loss sustained by such corpo- ,7|^f*^*,- '^^' ration and only if such corporation was subject to the tax imposed 73 Stat. 115. by section 11 or 802, as the case may be, for the year of the loss and elects to have the provisions of this section apply with respect to such loss. "(2) T I M E, MANNER, AND SCOPE.—An election under paragraph (1) shall be made at such time and in such manner as the Secretary or his delegate may prescribe by regulations. An election made with respect to any foreign expropriation loss shall apply to all recoveries in respect of such loss. J "'(b) DEFINITION or FOREIGN EXPROPRIATION Loss.—For purposes
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of this section, the term 'foreign expropriation loss' means any loss sustained by reason of the expropriation, intervention, seizure, or similar taking of property by the government of any foreign country, any political subdivision thereof, or any agency or instrumentality of the foregoing. For purposes of the preceding sentence, a debt which becomes worthless shall, to the extent of any deduction allowed under section 166(a), be treated as a loss. ^^^ ^*^*- ^^• " (c) AMOUNT or RECOVERY.— " (1) GENERAL RULE.—The
amount of any recovery of a foreign expropriation loss is the.amount of money and the fair market
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