96 S T A T. 7 0 6
P U B L I C L A W 9 7 - 2 4 8 — S E P T. 3, 1982 compensation to the State agency, except that the State agency may waive such r e payment if it determine s that— (i) the payment of such Federal S u p p l e m e n t a l compensation was without fault on the part of any such individual, and (ii) such r e payment would be c o n t r a r y to equity and good conscience. (B) The State agency may recover the a m o u n t to be repaid, or any part thereof, by deductions from any Federal s u p p l e m e n t a l compensation payable to such individual under this subtitle or from any unemployment compensation payable to such individual under any Federal unemployment compensation law administered by the State agency or under any other Federal law administered by the State agency which provides for the payment of any assistance or allowance with respect to any week of unemployment, during the threey e a r period after the date such individuals received the payment of the Federal s u p p l e m e n t a l compensation to which they were not entitled, except that no single deduction may exceed 50 p e r c e n t u m of the weekly benefit a m o u n t from which such deduction is made. (C) No r e payment shall be required, and no deduction shall be made, until a determination has been made, notice thereof and a n opportunity for a fair h e a r i n g has been given to the individual, and the determination has become final. (3) Any determination by a State agency under paragraph (1) or (2) shall be subject to review in the s a m e m a n n e r and to the same extent as determination s under the State unemployment compensation law, and only in that m a n n e r and to that extent.
Subtitle B—Taxation of Unemployment Compensation SEC. 611. TAXATION OF UNEMPLOYMENT COMPENSATION. (a) L O W E R I N G B A S E A M O U N T F R O M $20,000 TO $12,000 (From $25,000 TO $18,000 IN CASE OF JOINT R E T U R N). — S u b s e c t i o n (b) of
26 USC 85.
26 USC 85 note.
section 85 of the I n t e r n a l Revenue Code of 1954 (defining base a m o u n t) is amended— (1) by striking out "$20,000" and inserting in lieu thereof "$12,000", and (2) by striking out "$25,000" and inserting in lieu thereof "$18,000". (b) EFFECTIVE D A T E S. — (1) COMPENSATION PAID AFTER 1981. — The amendments
made
by this section shall apply to payments of unemployment compensation made after December 31, 1981, in taxable years ending after such date. (2) N O ADDITION TO TAX FOR UNDERPAYMENT OF ESTIMATED TAX ATTRIBUTABLE TO APPLICATION OF AMENDMENTS TO COMPENSATION
PAID IN 1982.—No addition to tax shall be made under section 6654 of the I n t e r n a l Revenue Code of 1954 with respect to any under payment to the extent such under payment is a t t r i b u t a b l e to unemployment compensation which is received during 1982 and which (but for the amendments m a d e by subsection (a)) would not be includable in gross income. (3) SPECIAL RULE FOR FISCAL YEAR TAXPAYERS.—In the case of a
taxable year (other than a calendar year) which includes January 1, 1982—
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