92 STAT. 2878
PUBLIC LAW 95-600—NOV. 6, 1978
Subtitle C—Maximum Tax Provisions 26 USC 1348.
SEC. 441. TREATMENT OF CAPITAL GAINS FOR PURPOSES OF THE MAXIMUM TAX. (a) GENERAL RULE.—Subparagraph (b) of section 1348(b)(2) (relating
to definition of personal service income) is amended by striking out "items of tax preference (as defined in section 57)" and inserting in lieu thereof "items of tax preference described in subsection (a) (other than paragraph (9)) of section 57". • ^ 26 USC 1348 note.
(b) EFFECTIVE DATE.— (1) GENERAL RULE.—The amendment made by subsection (a)
shall apply with respect to taxable years beginning after October 31, 1978. (2) TRANSITIONAL RULES.—In the case of a taxable year which begins before November 1, 1978, and ends after October 31, 1978, the amendment made by subsection (a) shall apply with respect to so much of the net capital gain of the taxpayer for the taxable year as is attributable to sales or exchanges after October 31, 1978. SEC. 442. DETERMINATION OF PERSONAL SERVICE INCOME FROM NONSALARIED TRADE OR BUSINESS ACTIVITIES.
26 USC 1348 note.
(a) IN GENERAL.—Subparagraph (A) of section 1348(b)(1) (relating to personal service income) is amended by adding at the end thereof the following: "For purposes of this subparagraph, section 911(b) shall be applied without regard to the phrase ', not in excess of 30 percent of his share of net profits of such trade or business,'.". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to tsixable years beginning after December 31, 1978.
TITLE V—OTHER TAX PROVISION Subtitle A—Administrative Provisions SEC. 501. REPORTING REQUIREMENTS WITH RESPECT TO CHARGED TIPS. 26 USC 6001.
26 USC 6053. 26 USC 6041.
26 USC 6053. 26 USC 6001 note.
(a) RECORDS.—Section 6001 (relating to notice or regulations requiring records, statements, and special returns) is amended by adding at the end thereof the following: "The only records which an employer shall be required to keep under this section in connection with charged tips shall be charge receipts and copies of statements furnished by employees under section 6053(a)." (b) RETURNS.—Section 6041 (relating to information at source) is amended by redesignating subsection (d) as subsection (c) and by adding at the end thereof the following new subsection: "(d) SECTION DOES NOT APPLY TO CERTAIN TIPS.—This section shall not apply to tips with respect to which section 6053(a) (relating to reporting of tips) applies." (c) EFFECTIVE DATE.—The amendments made by this section shall apply to payments made after December 31, 1978.