    [United States Senate Manual, 104th Congress]
    [S. Doc. 104-1]
    [USCODETITLE]
    [Pages 713-728]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 713]]

                              TITLE 26.--INTERNAL REVENUE CODE

                                  SUBTITLE A.--INCOME TAXES

                            Chapter 1.--NORMAL TAXES AND SURTAXES

                                        * * * * * * *

                        Subchapter B.--Computation of Taxable Income

                                        * * * * * * *

                    Part II.--ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME

                                        * * * * * * *

           473  Sec. 84. Transfer of appreciated property to political
                    organization.
         473.1  (a) General rule.
                    If--
                            (1) any person transfers property to a political
                        organization, and
                            (2) the fair market value of such property
                        exceeds its adjusted basis,

                then for purposes of this chapter the transferor shall be
                treated as having sold such property to the political
                organization on the date of the transfer, and the transferor
                shall be treated as having realized an amount equal to the
                fair market value of such property on such date.

         473.2  (b) Basis of property.
                    In the case of a transfer of property to a political
                organization to which subsection (a) applies, the basis of
                such property in the hands of the political organization
                shall be the same as it would be in the hands of the
                transferor, increased by the amount of gain recognized to
                the transferor by reason of such transfer.
         473.3  (c) Political organization defined.
                    For purposes of this section, the term ``political
                organization'' has the meaning given to such term by section
                527(e)(1). (Jan. 3, 1975, Pub. L. 93-625, Sec. 13(a), 88
                Stat. 2120.)

                                        * * * * * * *

                     Part VI.--ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND
                                        CORPORATIONS

                                        * * * * * * *

           474  Sec. 162. Trade or business expenses.
         474.1  (a) In general.
                    There shall be allowed as a deduction all the ordinary
                and necessary expenses paid or incurred during the taxable
                year in carrying on any trade or business, including--

    [[Page 714]]

                    (1) a reasonable allowance for salaries or other
                compensation for personal services actually rendered;
                    (2) traveling expenses (including amounts expended for
                meals and lodging other than amounts which are lavish or
                extravagant under the circumstances) while away from home in
                the pursuit of a trade or business; and
                    (3) rentals or other payments required to be made as a
                condition to the continued use or possession, for purposes
                of the trade or business, of property to which the taxpayer
                has not taken or is not taking title or in which he has no
                equity.

                For purposes of the preceding sentence, the place of
                residence of a Member of Congress (including any Delegate
                and Resident Commissioner) within the State, congressional
                district, or possession which he represents in Congress
                shall be considered his home, but amounts expended by such
                Members within each taxable year for living expenses shall
                not be deductible for income tax purposes in excess of
                $3,000. For purposes of paragraph (2), the taxpayer shall
                not be treated as being temporarily away from home during
                any period of employment if such period exceeds 1 year.
                (Aug. 16, 1954, ch. 736, 68A Stat. 45; Oct. 16, 1962, Pub.
                L. 87-834, Sec. 4(b), 76 Stat. 960, 976; Oct. 4, 1976, Pub.
                L. 94-455, Sec. 1901(c) (4), 90 Stat. 1803; Oct. 1, 1981,
                Pub. L. 97-51, Sec. 139(b)(1), 95 Stat. 967; July 18, 1982,
                Pub. L. 97-216, Sec. 215(a), 96 Stat. 194; Oct. 24, 1992,
                Pub. L. 102-486, Sec. 1938(a), 106 Stat. 3033.)

                                        * * * * * * *

                             Subchapter F.--Exempt Organizations

                                        * * * * * * *

                              Part VI.--POLITICAL ORGANIZATIONS

         474.5  Sec. 527. Political organizations.
         474.6  (a) General rule.
                    A political organization shall be subject to taxation
                under this subtitle only to the extent provided in this
                section. A political organization shall be considered an
                organization exempt from income taxes for the purpose of any
                law which refers to organizations exempt from income taxes.

         474.7  (b) Tax imposed.
                    (1) In general.--A tax is hereby imposed for each
                taxable year on the political organization taxable income of
                every political organization. Such tax shall be computed by
                multiplying the political organization taxable income by the
                highest rate of tax specified in section 11(b).
                    (2) Alternative tax in case of capital gains.--If for
                any taxable year any political organization has a net
                capital gain, then, in lieu of the tax imposed by paragraph
                (1), there is hereby imposed a tax (if such a tax is less
                than the tax imposed by paragraph (1)) which shall consist
                of the sum of--
                            (A) a partial tax, computed as provided by
                        paragraph (1), on the political organization taxable
                        income determined by reducing such income by the
                        amount of such gain, and
                            (B) an amount determined as provided in section
                        1201(a) on such gain.

    [[Page 715]]

         474.8  (c) Political organization taxable income defined.
                    (1) Taxable income defined.--For purposes of this
                section, the political organization taxable income of any
                organization for any taxable year is an amount equal to the
                excess (if any) of--
                            (A) the gross income for the taxable year
                        (excluding any exempt function income), over
                            (B) the deductions allowed by this chapter which
                        are directly connected with the production of the
                        gross income (excluding exempt function income),
                        computed with the modifications provided in
                        paragraph (2).
                    (2) Modifications.--For purposes of this subsection--
                            (A) there shall be allowed a specific deduction
                        of $100,
                            (B) no net operating loss deduction shall be
                        allowed under section 172, and
                            (C) no deduction shall be allowed under part
                        VIII of subchapter B (relating to special deductions
                        for corporations).
                    (3) Exempt function income.--For purposes of this
                subsection, the term ``exempt function income'' means any
                amount received as--
                            (A) a contribution of money or other property,
                            (B) membership dues, a membership fee or
                        assessment from a member of the political
                        organization,
                            (C) proceeds from a political fundraising or
                        entertainment event, or proceeds from the sale of
                        political campaign materials, which are not received
                        in the ordinary course of any trade or business, or
                            (D) proceeds from the conducting of any bingo
                        game (as defined in section 513(f)(2)),

                to the extent such amount is segregated for use only for the
                exempt function of the political organization.

         474.9  (d) Certain uses not treated as income to candidate.
                    For purposes of this title, if any political
                organization--
                            (1) contributes any amount to or for the use of
                        any political organization which is treated as
                        exempt from tax under subsection (a) of this
                        section,
                            (2) contributes any amount to or for the use of
                        any organization described in paragraph (1) or (2)
                        of section 509(a) which is exempt from tax under
                        section 501(a), or
                            (3) deposits any amount in the general fund of
                        the Treasury or in the general funds of any State or
                        local government,

                such amount shall be treated as an amount not diverted for
                the personal use of the candidate or any other person. No
                deduction shall be allowed under this title for the
                contribution or deposit of any amount described in the
                preceding sentence.

        474.10  (e) Other definitions.
                    For purposes of this section--
                            (1) Political organization.--The term
                        ``political organization'' means a party, committee,
                        association, fund, or other organization (whether or
                        not incorporated) organized and operated primarily
                        for the purpose of directly or indirectly accepting
                        contributions or making expenditures, or both, for
                        an exempt function.

    [[Page 716]]

                            (2) Exempt function.--The term ``exempt
                        function'' means the function of influencing or
                        attempting to influence the selection, nomination,
                        election, or appointment of any individual to any
                        Federal, State, or local public office or office in
                        a political organization, or the election of
                        Presidential or Vice-Presidential electors, whether
                        or not such individual or electors are selected,
                        nominated, elected, or appointed. Such term includes
                        the making of expenditures relating to an office
                        described in the preceding sentence which, if
                        incurred by the individual, would be allowable as a
                        deduction under section 162(a).
                            (3) Contributions.--The term ``contributions''
                        has the meaning given to such term by section
                        271(b)(2).
                            (4) Expenditures.--The term ``expenditures'' has
                        the meaning given to such term by section 271(b)(3).

                                        * * * * * * *

        474.11  (g) Treatment of newsletter funds.
                    (1) In general.--For purposes of this section, a fund
                established and maintained by an individual who holds, has
                been elected to, or is a candidate (within the meaning of
                paragraph (3)) for nomination or election to, any Federal,
                State, or local elective public office for use by such
                individual exclusively for the preparation and circulation
                of such individual's newsletter shall, except as provided in
                paragraph (2), be treated as if such fund constituted a
                political organization.
                    (2) Additional modifications.--In the case of any fund
                described in paragraph (1)--
                            (A) the exempt function shall be only the
                        preparation and circulation of the newsletter, and
                            (B) the specific deduction provided by
                        subsection (c)(2)(A) shall not be allowed.
                    (3) Candidate.--For purposes of paragraph (1), the term
                ``candidate'' means, with respect to any Federal, State, or
                local elective public office, an individual who--
                            (A) publicly announces that he is a candidate
                        for nomination or election to such office, and
                            (B) meets the qualifications prescribed by law
                        to hold such office.
        474.12  (h) Special rule for principal campaign committees.
                    (1) In general.--In the case of a political organization
                which is a principal campaign committee, paragraph (1) of
                subsection (b) shall be applied by substituting ``the
                appropriate rates'' for ``the highest rate''.
                    (2) Principal campaign committee defined.--
                            (A) In general.--For purposes of this
                        subsection, the term ``principal campaign
                        committee'' means the political committee designated
                        by a candidate for Congress as his principal
                        campaign committee for purposes of--

                                    (i) section 302(e) of the Federal
                                Election Campaign Act of 1971 (2 U.S.C.
                                432(e)), and

                                    (ii) this subsection.

                            (B) Designation.--A candidate may have only 1
                        designation in effect under subparagraph (A)(ii) at
                        any time and such designation--

                                    (i) shall be made at such time and in
                                such manner as the Secretary may prescribe
                                by regulations, and

    [[Page 717]]

                                    (ii) once made, may be revoked only with
                                the consent of the Secretary.

                            Nothing in this subsection shall be construed to
                        require any designation where there is only one
                        political committee with respect to a candidate.
                        (Jan. 3, 1975, Pub. L. 93-625, Sec. 10(a), 88 Stat.
                        2116; Oct. 4, 1976, Pub. L. 94-455,
                        Sec. 1901(b)(33)(c), 90 Stat. 1801; Oct. 21, 1978,
                        Pub. L. 95-502, Sec. 302(a), 92 Stat. 1702; Nov. 6,
                        1978, Pub. L. 95-600, Sec. 301(b)(6), 92 Stat. 2821;
                        Aug. 13, 1981, Pub. L. 97-34, Sec. 128, 95 Stat.
                        203; July 18, 1984, Pub. L. 98-369,
                        Secs. 474(r)(16), 722(c), 98 Stat. 843, 973;
                        Oct. 22, 1986, Pub. L. 99-514, Sec. 112(b)(1), 100
                        Stat. 2085; Nov. 10, 1988, Pub. L. 100-647,
                        Sec. 1001(b)(3)(B), 102 Stat. 3349.)

                                        * * * * * * *

                 Subchapter N.--Tax Based on Income From Sources Within or
                                 Without the United States

                                        * * * * * * *

                    Part II.--NONRESIDENT ALIENS AND FOREIGN CORPORATIONS

                                        * * * * * * *

                            Subpart D.--Miscellaneous Provisions

                                        * * * * * * *

        474.13  Sec. 896. Adjustment of tax on nationals, residents, and
                    corporations of certain foreign countries.

                                        * * * * * * *

        474.14  (d) Notification of Congress required.
                    No proclamation shall be issued by the President
                pursuant to this section unless, at lest 30 days prior to
                such proclamation, he has notified the Senate and the House
                of Representatives of his intention to issue such
                proclamation. (Nov. 13, 1966, Pub. L. 89-809, Sec. 105(b),
                80 Stat. 1563.)

                           Subchapter P.--Capital Gains and Losses

                                        * * * * * * *

                 Part III.--GENERAL RULES FOR DETERMINING CAPITAL GAINS AND
                                           LOSSES

        474.15  Sec. 1221. Capital asset defined.
                    For purposes of this subtitle, the term ``capital
                asset'' means property held by the taxpayer (whether or not
                connected with his trade or business), but does not
                include--

                                        * * * * * * *

                    (5) a publication of the United States Government
                (including the Congressional Record) which is received from
                the United States Government or any agency thereof, other
                than by purchase at the price at which it is offered for
                sale to the public, and which is held by--
                            (A) a taxpayer who so received such publication,
                        or

    [[Page 718]]

                            (B) a taxpayer in whose hands the basis of such
                        publication is determined, for purposes of
                        determining gain from a sale or exchange, in whole
                        or in part by reference to the basis of such
                        publication in the hands of a taxpayer described in
                        subparagraph (A). (Aug. 16, 1954, ch. 736. 68A Stat.
                        321; Oct. 4, 1976, Pub. L. 94-455, Sec. 2132 (a), 90
                        Stat. 1925; Aug. 13, 1981, Pub. L. 97-34, Sec. 505
                        (a), 95 Stat 331.)

                                        * * * * * * *

                          SUBTITLE F.--PROCEDURE AND ADMINISTRATION

                            Chapter 61.--INFORMATION AND RETURNS

                                        * * * * * * *

                           Subchapter B.--Miscellaneous Provisions

                                        * * * * * * *

           475  Sec. 6103. Confidentiality and disclosure of returns and
                    return information.

                                        * * * * * * *

         475.1  (f) Disclosure to committees of Congress.
                    (1) Committee on Ways and Means, Committee on Finance,
                and Joint Committee on Taxation.--Upon written request from
                the chairman of the Committee on Ways and Means of the House
                of Representatives, the chairman of the Committee on Finance
                of the Senate, or the chairman of the Joint Committee on
                Taxation, the Secretary shall furnish such committee with
                any return or return information specified in such request,
                except that any return or return information which can be
                associated with, or otherwise identify, directly or
                indirectly, a particular taxpayer shall be furnished to such
                committee only when sitting in closed executive session
                unless such taxpayer otherwise consents in writing to such
                disclosure.
                    (2) Chief of Staff of Joint Committee on Taxation.--Upon
                written request by the Chief of Staff of the Joint Committee
                on Taxation, the Secretary shall furnish him with any return
                or return information specified in such request. Such Chief
                of Staff may submit such return or return information to any
                committee described in paragraph (1), except that any return
                or return information which can be associated with, or
                otherwise identify, directly or indirectly, a particular
                taxpayer shall be furnished to such committee only when
                sitting in closed executive session unless such taxpayer
                otherwise consents in writing to such disclosure.
                    (3) Other committees.--Pursuant to an action by, and
                upon written request by the chairman of, a committee of the
                Senate or the House of Representatives (other than a
                committee specified in paragraph (1)) specially authorized
                to inspect any return or return information by a resolution
                of the Senate or the House of Representatives or, in the
                case of a joint committee (other than the joint committee
                specified in paragraph (1)) by concurrent resolution, the
                Secretary shall furnish such committee, or a duly authorized
                and designated subcommittee thereof, sitting in closed
                executive session, with any return or return information
                which such resolution authorizes the committee or
                subcommittee to in-

    [[Page 719]]

                spect. Any resolution described in this paragraph shall
                specify the purpose for which the return or return
                information is to be furnished and that such information
                cannot reasonably be obtained from any other source.
                    (4) Agents of committees and submission of information
                to Senate or House of Representatives.--
                            (A) Committees described in paragraph (1).--Any
                        committee described in paragraph (1) or the Chief of
                        Staff of the Joint Committee on Taxation shall have
                        the authority, acting directly, or by or through
                        such examiners or agents as the chairman of such
                        committee or such chief of staff may designate or
                        appoint, to inspect returns and return information
                        at such time and in such manner as may be determined
                        by such chairman or chief of staff. Any return or
                        return information obtained by or on behalf of such
                        committee pursuant to the provisions of this
                        subsection may be submitted by the committee to the
                        Senate or the House of Representatives, or to both.
                        The Joint Committee on Taxation may also submit such
                        return or return information to any other committee
                        described in paragraph (1), except that any return
                        or return information which can be associated with,
                        or otherwise identify, directly or indirectly, a
                        particular taxpayer shall be furnished to such
                        committee only when sitting in closed executive
                        session unless such taxpayer otherwise consents in
                        writing to such disclosure.
                            (B) Other committees.--Any committee or
                        subcommittee described in paragraph (3) shall have
                        the right, acting directly, or by or through no more
                        than four examiners or agents, designated or
                        appointed in writing in equal numbers by the
                        chairman and ranking minority member of such
                        committee or subcommittee, to inspect returns and
                        return information at such time and in such manner
                        as may be determined by such chairman and ranking
                        minority member. Any return or return information
                        obtained by or on behalf of such committee or
                        subcommittee pursuant to the provisions of this
                        subsection may be submitted by the committee to the
                        Senate or the House of Representatives, or to both,
                        except that any return or return information which
                        can be associated with, or otherwise identify,
                        directly or indirectly, a particular taxpayer, shall
                        be furnished to the Senate or the House of
                        Representatives only when sitting in closed
                        executive session unless such taxpayer otherwise
                        consents in writing to such disclosure.
         475.2  (g) Disclosure to President and certain other persons.

                                        * * * * * * *

         475.3  (5) Reporting requirements.--
                    Within 30 days after the close of each calendar quarter,
                the President and the head of any agency requesting returns
                and return information under this subsection shall each file
                a report with the Joint Committee on Taxation setting forth
                the taxpayers with respect to whom such requests were made
                during such quarter under this subsection, the returns or
                return information involved, and the reasons for such
                requests. The President shall not be required to report on
                any request for returns and return information pertaining to
                an individual who was an officer or employee of the
                executive branch of the Federal Government at the time such
                request was made. Reports filed pursuant to this paragraph

    [[Page 720]]

                shall not be disclosed unless the Joint Committee on
                Taxation determines that disclosure thereof (including
                identifying details) would be in the national interest. Such
                reports shall be maintained by the Joint Committee on
                Taxation for a period not exceeding 2 years unless, within
                such period, the Joint Committee on Taxation determines that
                a disclosure to the Congress is necessary. (Oct. 4, 1976,
                Pub. L. 94-455, Sec. 1202(a), 90 Stat. 1667.)

                                        * * * * * * *

         475.5  Sec. 6104. Publicity of information required from certain
                    exempt organizations and certain trusts.
         475.6  (a) Inspection of applications for tax exemption.
                    (1) Public inspection.--
                            (A) Organizations described in section 501.--If
                        an organization described in section 501 (c) or (d)
                        is exempt from taxation under section 501(a) for any
                        taxable year, the application filed by the
                        organization with respect to which the Secretary
                        made his determination that such organization was
                        entitled to exemption under section 501(a), together
                        with any papers submitted in support of such
                        application, and any letter or other document issued
                        by the Internal Revenue Service with respect to such
                        application shall be open to public inspection at
                        the national office of the Internal Revenue Service.
                        In the case of any application filed after the date
                        of the enactment of this subparagraph, a copy of
                        such application and such letter or document shall
                        be open to public inspection at the appropriate
                        field office of the Internal Revenue Service
                        (determined under regulations prescribed by the
                        Secretary). Any inspection under this subparagraph
                        may be made at such times, and in such manner, as
                        the Secretary shall by regulations prescribe. After
                        the application of any organization has been opened
                        to public inspection under this subparagraph, the
                        Secretary shall, on the request of any person with
                        respect to such organization, furnish a statement
                        indicating the subsection and paragraph of section
                        501 which it has been determined describes such
                        organization.
                            (B) Pension, etc., plans.--The following shall
                        be open to public inspection at such times and in
                        such places as the Secretary may prescribe:

                                    (i) any application filed with respect
                                to the qualification of a pension, profit-
                                sharing, or stock bonus plan under section
                                401(a) or 403(a), an individual retirement
                                account described in section 408(a), or an
                                individual retirement annuity described in
                                section 408(b),

                                    (ii) any application filed with respect
                                to the exemption from tax under section
                                501(a) of an organization forming part of a
                                plan or account referred to in clause (i),

                                    (iii) any papers submitted in support of
                                an application referred to in clause (i) or
                                (ii), and

                                    (iv) any letter or other document issued
                                by the Internal Revenue Service and dealing
                                with the qualification referred to in clause
                                (i) or the exemption from tax referred to in
                                clause (ii).

                Except in the case of a plan participant, this subparagraph
                shall not apply to any plan referred to in clause (i) having
                not more than 25 participants.

    [[Page 721]]

                            (C) Certain names and compensation not to be
                        open to public inspection.--In the case of any
                        application, document, or other papers, referred to
                        in subparagraph (B), information from which the
                        compensation (including deferred compensation) of
                        any individual may be ascertained shall not be
                        opened to public inspection under subparagraph (B).
                            (D) Withholding of certain other information.--
                        Upon request of the organization submitting any
                        supporting papers described in subparagraph (A) or
                        (B), the Secretary shall withhold from public
                        inspection any information contained therein which
                        he determines relates to any trade secret, patent,
                        process, style of work, or apparatus, of the
                        organization, if he determines that public
                        disclosure of such information would adversely
                        affect the organization. The Secretary shall
                        withhold from public inspection any information
                        contained in supporting papers described in
                        subparagraph (A) or (B) the public disclosure of
                        which he determines would adversely affect the
                        national defense.
                    (2) Inspection by committee of Congress.--Section
                6103(f) shall apply with respect to--
                            (A) the application for exemption of any
                        organization described in section 501(c) or (d)
                        which is exempt from taxation under section 501(a)
                        for any taxable year, and any application referred
                        to in subparagraph (B) of subsection (a)(1) of this
                        section, and
                            (B) any other papers which are in the possession
                        of the Secretary and which relate to such
                        application,

                as if such papers constituted returns. (Sept. 2, 1958, Pub.
                L. 85-866, Sec. 75(a) 72 Stat. 1660; Sept. 2, 1974, Pub. L.
                93-406, Sec. 1022(g)(1), (2), 88 Stat. 940; Oct. 4, 1976,
                Pub. L. 94-455, Secs. 1201(d), 1906(b)(13)(A), 90 Stat.
                1667, 1834; Nov. 6, 1978, Pub. L. 95-600, Sec. 703(m), 92
                Stat. 2943; July 18, 1984, Pub. L. 98-369 Sec. 491(d)(49),
                98 Stat. 852.)

                                        * * * * * * *

                                  Chapter 79.--DEFINITIONS

         475.7  Sec. 7701. Definitions.

                                        * * * * * * *

         475.8  (j) Tax treatment of Federal Thrift Savings Fund.
                    (1) In general.--For purposes of this title--
                            (A) the Thrift Savings Fund shall be treated as
                        a trust described in section 401(a) which is exempt
                        from taxation under section 501(a);
                            (B) any contribution to, or distribution from,
                        the Thrift Savings Fund shall be treated in the same
                        manner as contributions to or distributions from
                        such a trust; and
                            (C) subject to section 401(k)(4)(B) and any
                        dollar limitation on the application of section
                        402(e)(3), contributions to the Thrift Savings Fund
                        shall not be treated as distributed or made
                        available to an employee or Member nor as a
                        contribution made to the Fund by an employee or
                        Member merely because the employee or Member has,
                        under the provisions of subchapter III of chapter 84
                        of title 5, United States Code, and section 8351 of
                        such title 5, an election whether the contribution
                        will be made to the Thrift Savings Fund or received
                        by the employee or Member in cash.

    [[Page 722]]

                    (2) Nondiscrimination requirements.--Notwithstanding any
                other provision of the law, the Thrift Savings Fund is not
                subject to the nondiscrimination requirements applicable to
                arrangements described in section 401(k) or to matching
                contributions (as described in section 401(m)), so long as
                it meets the requirements of this section.
                    (3) Coordination with Social Security Act.--Paragraph
                (1) shall not be construed to provide that any amount of the
                employee's or Member's basic pay which is contributed to the
                Thrift Savings Fund shall not be included in the term
                ``wages'' for the purposes of section 209 of the Social
                Security Act or section 3121(a) of this title.
                    (4) Definitions.--For purposes of this subsection, the
                terms ``Member'', ``employee'', and ``Thrift Savings Fund''
                shall have the same respective meanings as when used in
                subchapter III of chapter 84 of title 5, United States Code.
                    (5) Coordination with other provisions of law.--No
                provision of law not contained in this title shall apply for
                purposes of determining the treatment under this title of
                the Thrift Savings Fund or any contribution to, or
                distribution from, such Fund. (Oct. 22, 1986, Pub. L. 99-
                514, Sec. 1147(a), 100 Stat. 2493; Dec. 22, 1987, Pub. L.
                100-202, Sec. 624(a), 101 Stat. 1329-429; Nov. 10, 1988,
                Pub. L. 100-647, Sec. 1011A(m)(1), 102 Stat. 3483; Nov. 5,
                1990, Pub. L. 101-508, Sec. 11704(a)(34), 104 Stat. 1388-
                519; July 3, 1992, Pub. L. 102-318, Sec. 521(b)(43), 106
                Stat. 313.)

                                        * * * * * * *

         475.9  (k) Treatment of certain amounts paid to charity.
                    In the case of any payment which, except for section
                501(b) of the Ethics in Government Act of 1978, might be
                made to any officer or employee of the Federal Government
                but which is made instead on behalf of such officer or
                employee to an organization described in section 170(c)--
                            (1) such payment shall not be treated as
                        received by such officer or employee for all
                        purposes of this title and for all purposes of any
                        tax law of a State or political subdivision thereof,
                        and
                            (2) no deduction shall be allowed under any
                        provision of this title (or of any law of a State or
                        political subdivision thereof) to such officer or
                        employee by reason of having such payment made to
                        such organization.

                For purposes of this subsection, a Senator, a Representative
                in, or a Delegate or Resident Commissioner to, the Congress
                shall be treated as an officer or employee of the Federal
                Government. (Nov. 30, 1989, Pub. L. 101-194, Sec. 602, 103
                Stat. 1762; Aug. 14, 1991, Pub. L. 102-90, Sec. 314(e), 103
                Stat. 469-470.)

                                        * * * * * * *

                        SUBTITLE G.--THE JOINT COMMITTEE ON TAXATION

                   Chapter 91.--ORGANIZATION AND MEMBERSHIP OF THE JOINT
                                         COMMITTEE

           476  Sec. 8001. Authorization.
                    There shall be a joint congressional committee known as
                the Joint Committee on Taxation (hereinafter in this
                subtitle referred to as the ``Joint Committee''). (Aug. 16,
                1954, ch. 736, 68A Stat. 925; Oct. 4, 1976, Pub. L. 94-455,
                Sec. 1907(a)(1), 90 Stat. 1835.)

    [[Page 723]]

         476.1  Sec. 8002. Membership.
         476.2  (a) Number and selection.
                    The Joint Committee shall be composed of 10 members as
                follows:
                    (1) From Committee on Finance.--Five members who are
                members of the Committee on Finance of the Senate, three
                from the majority and two from the minority party, to be
                chosen by such Committee; and
                    (2) From Committee on Ways and Means.--Five members who
                are members of the Committee on Ways and Means of the House
                of Representatives, three from the majority and two from the
                minority party, to be chosen by such Committee.
         476.3  (b) Tenure of office.
                    (1) General limitation.--No person shall continue to
                serve as a member of the Joint Committee after he has ceased
                to be a member of the committee by which he was chosen,
                except that--
                    (2) Exception.--The members chosen by the Committee on
                Ways and Means who have been reelected to the House of
                Representatives may continue to serve as members of the
                Joint Committee notwithstanding the expiration of the
                Congress.
         476.4  (c) Vacancies.
                    A vacancy in the Joint Committee--
                            (1) Effect.--Shall not affect the power of the
                        remaining members to execute the functions of the
                        Joint Committee; and
                            (2) Manner of filling.--Shall be filled in the
                        same manner as the original selection, except that--

                                    (A) Adjournment or recess of Congress.--
                                In case of a vacancy during an adjournment
                                or recess of Congress for a period of more
                                than 2 weeks, the members of the Joint
                                Committee who are members of the Committee
                                entitled to fill such vacancy may designate
                                a member of such Committee to serve until
                                his successor is chosen by such Committee;
                                and

                                    (B) Expiration of Congress.--In the case
                                of a vacancy after the expiration of a
                                Congress which would be filled by the
                                Committee on Ways and Means, the members of
                                such Committee who are continuing to serve
                                as members of the Joint Committee may
                                designate a person who, immediately prior to
                                such expiration, was a member of such
                                Committee and who is reelected to the House
                                of Representatives, to serve until his
                                successor is chosen by such Committee.

         476.5  (d) Allowances.
                    The members shall serve without compensation in addition
                to that received for their services as members of Congress;
                but they shall be reimbursed for travel, subsistence, and
                other necessary expenses incurred by them in the performance
                of the duties vested in the Joint Committee, other than
                expenses in connection with meetings of the Joint Committee
                held in the District of Columbia during such times as the
                Congress is in session. (Aug. 16, 1954, ch. 736, 68A Stat.
                925.)
         476.6  Sec. 8003. Election of chairman and vice chairman.
                    The Joint Committee shall elect a chairman and vice
                chairman from among its members. (Aug. 16, 1954, ch. 736,
                68A Stat. 926.)
         476.7

    [[Page 724]]

                Sec. 8004. Appointment and compensation of staff.
                    Except as otherwise provided by law, the Joint Committee
                shall have power to appoint and fix the compensation of the
                Chief of Staff of the Joint Committee and such experts and
                clerical, stenographic, and other assistants as it deems
                advisable. (Aug. 16, 1954, ch. 736, 68A Stat. 926; Oct. 4,
                1976, Pub. L. 94-455, Sec. 1907(a)(2), 90 Stat. 1835.)
         476.8  Sec. 8005. Payment of expenses.
                    The expenses of the Joint Committee shall be paid one-
                half from the contingent fund of the Senate and one-half
                from the contingent fund of the House of Representatives,
                upon vouchers signed by the chairman or the vice chairman.
                (Aug. 16, 1954, ch. 736, 68A Stat. 926.)

                    Chapter 92.--POWERS AND DUTIES OF THE JOINT COMMITTEE

           477  Sec. 8021. Powers.
         477.1  (a) To obtain data and inspect income returns.
                            For powers of the Joint Committee to obtain and
                        inspect income returns, see section 6103(f).
         477.2  (b) Relating to hearings and sessions.
                    The Joint Committee, or any subcommittee thereof, is
                authorized--
                            (1) To hold.--To hold hearings and to sit and
                        act at such places and times;
                            (2) To require attendance of witnesses and
                        production of books.--To require by subpoena (to be
                        issued under the signature of the chairman or vice
                        chairman) or otherwise the attendance of such
                        witnesses and the production of such books, papers,
                        and documents;
                            (3) To administer oaths.--To administer such
                        oaths; and
                            (4) To take testimony.--To take such testimony;

                as it deems advisable.

         477.3  (c) To procure printing and binding.
                    The Joint Committee, or any subcommittee thereof, is
                authorized to have such printing and binding done as it
                deems advisable.
         477.4  (d) To make expenditures.
                    The Joint Committee, or any subcommittee thereof, is
                authorized to make such expenditures as it deems advisable.
                (Aug. 16, 1954, ch. 736, 68A Stat. 927; Oct. 4, 1976, Pub.
                L. 94-455, Sec. 1907(a)(3), 90 Stat. 1835; Nov. 10, 1988,
                Pub. L. 100-647, Sec. 1018(s)(1), 102 Stat. 3586.)
         477.5  Sec. 8022. Duties.
                    It shall be the duty of the Joint Committee--
         477.6      (1) Investigation.--
                            (A) Operation and effects of law.--To
                        investigate the operation and effects of the Federal
                        system of internal revenue taxes;
                            (B) Administration.--To investigate the
                        administration of such taxes by the Internal Revenue
                        Service or any executive department, establishment,
                        or agency charged with their administration; and
                            (C) Other investigations.--To make such other
                        investigations in respect of such system of taxes as
                        the Joint Committee may deem necessary.

    [[Page 725]]

         477.7      (2) Simplification of law.--
                            (A) Investigation of methods.--To investigate
                        measures and methods for the simplification of such
                        taxes, particularly the income tax; and
                            (B) Publication of proposals.--To publish, from
                        time to time, for public examination and analysis,
                        proposed measures and methods for the simplification
                        of such taxes.
         477.8      (3) Reports.--To report, from time to time, to the
                Committee on Finance and the Committee on Ways and Means,
                and, in its discretion, to the Senate or the House of
                Representatives, or both, the results of its investigations,
                together with such recommendations as it may deem advisable.
         477.9      (4) Cross reference.--
                            For duties of the Joint Committee relating to
                        refunds of income and estate taxes, see section
                        6405. (Aug. 16, 1954, ch. 736, 68A Stat. 927.)
           478  Sec. 8023. Additional powers to obtain data.
         478.1  (a) Securing of data.
                    The Joint Committee or the Chief of Staff of the Joint
                Committee, upon approval of the Chairman or Vice Chairman,
                is authorized to secure directly from the Internal Revenue
                Service or the office of the Chief Counsel for the Internal
                Revenue Service, or directly from any executive department,
                board, bureau, agency, independent establishment, or
                instrumentality of the Government, information, suggestions,
                rulings, data, estimates, and statistics, for the purpose of
                making investigations, reports, and studies relating to
                internal revenue taxation. In the investigation by the Joint
                Committee on Taxation of the administration of the internal
                revenue taxes by the Internal Revenue Service, the Chief of
                Staff of the Joint Committee on Taxation is authorized to
                secure directly from the Internal Revenue Service such tax
                returns, or copies of tax returns, and other relevant
                information, as the Chief of Staff deems necessary for such
                investigation, and the Internal Revenue Service is
                authorized and directed to furnish such tax returns and
                information to the Chief of Staff together with a brief
                report, with respect to each return, as to any action taken
                or proposed to be taken by the Service as a result of any
                audit of the return.
         478.2  (b) Furnishing of data.
                    The Internal Revenue Service, the office of the Chief
                Counsel for the Internal Revenue Service, executive
                departments, boards, bureaus, agencies, independent
                establishments, and instrumentalities are authorized and
                directed to furnish such information, suggestions, rulings,
                data, estimates, and statistics directly to the Joint
                Committee or to the Chief of Staff of the Joint Committee,
                upon request made pursuant to this section.
         478.3  (c) Application of subsections (a) and (b).
                    Subsections (a) and (b) shall be applied in accordance
                with their provisions without regard to any reorganization
                plan becoming effective on, before, or after the date of the
                enactment of this subsection. (Aug. 16, 1954, ch. 736, 68A
                Stat. 928; Sept. 22, 1959, Pub. L. 86-368, Sec. 2(b),

    [[Page 726]]

                73 Stat. 648; Oct. 4, 1976, Pub. L. 94-455,
                Secs. 1210(c), 1907(a)(4), 90 Stat. 1711, 1835.)

                                        * * * * * * *

                  SUBTITLE H.--FINANCING OF PRESIDENTIAL ELECTION CAMPAIGNS

                      Chapter 95.--PRESIDENTIAL ELECTION CAMPAIGN FUND

                                        * * * * * * *

         478.5  Sec. 9009. Reports to Congress; regulations.
         478.6  (a) Reports.
                    The Commission shall, as soon as practicable after each
                presidential election, submit a full report to the Senate
                and House of Representatives setting forth--
                            (1) the qualified campaign expenses (shown in
                        such detail as the Commission determines necessary)
                        incurred by the candidates of each political party
                        and their authorized committees;
                            (2) the amounts certified by it under section
                        9005 for payment to the eligible candidates for each
                        political party;
                            (3) the amount of payments, if any, required
                        from such candidates under section 9007, and the
                        reasons for each payment required;
                            (4) the expensees incurred by the national
                        committee of a major party or minor party with
                        respect to a presidential nominating convention;
                            (5) the amounts certified by it under section
                        9008(g) for payment to each such committee; and
                            (6) the amount of payments, if any, required
                        from such committees under section 9008(h), and the
                        reasons for each such payment.

                Each report submitted pursuant to this section shall be
                printed as a Senate document.

         478.7  (b) Regulations, etc.
                    The Commission is authorized to prescribe such rules and
                regulations in accordance with the provisions of subsection
                (c), to conduct such examinations and audits (in addition to
                the examinations and audits required by section 9007(a)), to
                conduct such investigations, and to require the keeping and
                submission of such books, records, and information, as it
                deems necessary to carry out the functions and duties
                imposed on it by this chapter.
         478.8   (c) Review of regulations.
                    (1) The Commission, before prescribing any rule or
                regulation under subsection (b), shall transmit a statement
                with respect to such rule or regulation to the Senate and to
                the House of Representatives, in accordance with the
                provisions of this subsection. Such statement shall set
                forth the proposed rule or regulation and shall contain a
                detailed explanation and justification of such rule or
                regulation.
                    (2) If either such House does not, through appropriate
                action, disapprove the proposed rule or regulation set forth
                in such statement no later than 30 legislative days after
                receipt of such statement, then the Commission may prescribe
                such rule or regulation. Whenever a committee of the House
                of Representatives reports any resolution relating to any
                such rule or regulation, it is at any time thereafter in
                order

    [[Page 727]]

                (even though a previous motion to the same effect has been
                disagreed to) to move to proceed to the consideration of the
                resolution. The motion is highly privileged and is not
                debatable. An amendment to the motion is not in order, and
                it is not in order to move to reconsider the vote by which
                the motion is agreed to or disagreed to. The Commission may
                not prescribe any rule or regulation which is disapproved by
                either such House under this paragraph.
                    (3) For purposes of this subsection, the term
                ``legislative days'' does not include any calendar day on
                which both Houses of the Congress are not in session.
                    (4) For purposes of this subsection, the term ``rule or
                regulation'' means a provision or series of interrelated
                provisions stating a single separable rule of law. (Dec. 10,
                1971, Pub. L. 92-178, Sec. 801, 85 Stat. 569; Oct. 15, 1974,
                Pub. L. 93-443, Secs. 404(c)(12), (13), 406(b), 88 Stat.
                1292, 1296; May 11, 1976, Pub. L. 94-283, Sec. 304(a), 90
                Stat. 498.)

                                        * * * * * * *

                 Chapter 96.--PRESIDENTIAL PRIMARY MATCHING PAYMENT ACCOUNT

                                        * * * * * * *

        478.10  Sec. 9039. Reports to Congress; regulations.
        478.11   (a) Reports.
                    The Commission shall, as soon as practicable after each
                matching payment period, submit a full report to the Senate
                and House of Representatives setting forth--
                            (1) the qualified campaign expenses (shown in
                        such detail as the Commission determines necessary)
                        incurred by the candidates of each political party
                        and their authorized committees,
                            (2) the amounts certified by it under section
                        9036 for payment to each eligible candidate, and
                            (3) the amount of payments, if any, required
                        from candidates under section 9038, and the reasons
                        for each payment required.

                Each report submitted pursuant to this section shall be
                printed as a Senate document.

        478.12  (b) Regulations, etc.
                    The Commission is authorized to prescribe rules and
                regulations in accordance with the provisions of subsection
                (c), to conduct examinations and audits (in addition to the
                examinations and audits required by section 9038(a)), to
                conduct investigations, and to require the keeping and
                submission of any books, records, and information, which it
                determines to be necessary to carry out its responsibilities
                under this chapter.
        478.13  (c) Review of regulations.
                    (1) The Commission, before prescribing any rule or
                regulation under subsection (b), shall transmit a statement
                with respect to such rule or regulation to the Senate and to
                the House of Representatives, in accordance with the
                provisions of this subsection. Such statement shall set
                forth the proposed rule or regulation and shall contain a
                detailed explanation and justification of such rule or
                regulation.
                    (2) If either such House does not, through appropriate
                action, disapprove the proposed rule or regulation set forth
                in such statement

    [[Page 728]]

                no later than 30 legislative days after receipt of such
                statement, then the Commission may prescribe such rule or
                regulation. Whenever a committee of the House of
                Representatives reports any resolution relating to any such
                rule or regulation, it is at any time thereafter in order
                (even though a previous motion to the same effect has been
                disagreed to) to move to proceed to the consideration of the
                resolution. The motion is highly privileged and is not
                debatable. An amendment to the motion is not in order, and
                it is not in order to move to reconsider the vote by which
                the motion is agreed to or disagreed to. The Commission may
                not prescribe any rule or regulation which is disapproved by
                either such House under this paragraph.
                    (3) For purposes of this subsection, the term
                ``legislative days'' does not include any calendar day on
                which both Houses of the Congress are not in session.
                    (4) For purposes of this subsection, the term ``rule or
                regulation'' means a provision or series of interrelated
                provisions stating a single separable rule of law. (Oct. 15,
                1974, Pub. L. 93-443, Sec. 408(c), 88 Stat. 1301; May 11,
                1976, Pub. L. 94-283, Sec. 304(b), 90 Stat. 499.)

                                        * * * * * * *

                                SUBTITLE I.--TRUST FUND CODE

                                Chapter 98.--Trust Fund Code

                                        * * * * * * *

                              Subchapter B.--General Provisions

                                        * * * * * * *

        478.14  Sec. 9602. Management of trust funds.
        478.15  (a) Report.
                    It shall be the duty of the Secretary of the Treasury to
                hold each Trust Fund established by subchapter A, and (after
                consultation with any other trustees of the Trust Fund) to
                report to the Congress each year on the financial condition
                and the results of the operations of each such Trust Fund
                during the preceding fiscal year and on its expected
                condition and operations during the next 5 fiscal years.
                Such report shall be printed as a House document of the
                session of the Congress to which the report is made. (Dec.
                29, 1981, Pub. L. 97-119, Sec. 103(a), 95 Stat. 1638.)