Krzyminski, James S., associate general counsel, National Council of Farmer Cooperatives 335 Lindquist, John R., McDermott, Will & Emery 382 Maffin, Robert W., executive director, National Association of Housing & 283 Maritz, Inc 305 Mazawey, Louis T., attorney, Groom & Nordberg, on behalf of Prudential Life 380 Monroney, Michael, vice president, government relations, TRW, Inc 311 National Association of Housing & Redevelopment Officials, Robert W. Maffin, executive director.. 283 National Association of Life Companies 303 National Cattlemen's Association, Thomas A. Davis, Washington tax counsel.. National Council of Farmer Cooperatives, James S. Krzyminski, associate general counsel 309 335 National League of Cities, Alan Beals, executive director 310 National Milk Producers Federation, Patrick B. Healy, secretary 333 National Realty Committee. 380 National Rural Electric Cooperative Association, Carolyn Herr Watts, legislative representative 320 Ondov, Raymond B., the Hormel Foundation 321 Oppenheimer, Jerry L., and Robert H. Swart, Mayer, Brown & Platt 280 Premium Corp. of America Prudential Life Insurance Co. of America, Louis T. Mazawey, attorney, Groom & Nordberg.. 305 380 Ribicoff, Hon. Abraham, a U.S. Senator from the State of Connecticut.. 268 311 S. & H. Motivation & Travel, Inc.. 305 Stamford Historical Society, Stamford, Conn., Robert Halladay, president 319 269 318 Top Value Enterprises 305 TRW, Inc., Michael Monroney, vice president, government relations 311 Watts, Carolyn Herr, legislative representative, National Rural Electric Cooperative Association........ 320 Welch, P. S., manager, tax accounting operation, General Electric Co TECHNICAL CORRECTIONS ACT OF 1979 WEDNESDAY, NOVEMBER 7, 1979 U.S. SENATE, SUBCOMMITTEE ON TAXATION AND DEBT MANAGEMENT, COMMITTEE ON FINANCE, Washington, D.C. The subcommittee convened at 2:40 p.m., pursuant to call, in room 2221, Dirksen Senate Office Building, Senator Harry F. Byrd, Jr., presiding. Present: Senators Byrd and Boren. [The press releases announcing this hearing and the bills H.R. 2797, S. 873 and S. 1549 and Joint Committee on Taxation description of S. 873 and S. 1549 and description of H.R. 2797 follow:] [Press Release No. H-66, Oct. 16, 1979] FINANCE SUBCOMMITTEE ON TAXATION AND DEBT MANAGEMENT SETS HEARING ON TECHNICAL CORRECTIONS ACT OF 1979 Senator Harry F. Byrd, Jr. (I., Va.), Chairman of the Subcommittee on Taxation and Debt Management of the Senate Committee on Finance announced today that the Subcommittee will hold a hearing on Wednesday, November 7, 1979 on the Technical Corrections Act of 1979. The hearing will begin at 2:30 p.m. in Room 2221 of the Dirksen Senate Office Building. The bill, which the House of Representatives passed on July 18, 1979, contains technical, clerical, conforming, and clarifying amendments to provisions enacted by the Revenue Act of 1978 and other 1978 tax legislation. Senator Byrd said, "In any major tax legislation, especially legislation enacted under great time pressure, minor errors and omissions escape detection. Such errors may not involve major questions of tax policy. However, they do make it more difficult for both taxpayers and the Internal Revenue Service in dealing with the tax law. Accordingly, enactment of corrective legislation should be of substantial assistance to the tax community, both in and out of government. "Prior to the creation of the present subcommittee structure it was difficult to find time in the legislative process to consider technical material such as the items contained in this bill. One of the important functions of the Subcommittee on Taxation and Debt Management, however, is to perform the difficult detail work which is required if the Internal Revenue Code is to remain a properly-functioning law." Testimony is invited both on the bill as passed by the House of Representatives and on any propoed additions to or deletions from that bill. It is recommended, however, that witnesses who only wish to support provisions now contained in the House bill limit their testimony to the submission of written statements. It is also recommended that written and oral statements deal both with the merits of the issue involved and with the question of whether it is or is not a technical rather than a policy change. Witnesses who desire to make oral statements at the hearing should submit a written request to Michael Stern, Staff Director, Committee on Finance, Room 2227 Dirksen Senate Office Building, Washington, D.C. 20510, by no later than the close of business on November 1, 1979. Legislative Reorganization Act.-Senator Byrd stated that the Legislative Reorganization Act of 1946, as amended, requires all witnesses appearing before Commit(1) tees of Congress "to file in advance written statements of their proposed testimony, and to limit their oral presentations to brief summaries of their argument." Witnesses scheduled to speak should comply with the following rules: (1) A copy of the statement must be filed by noon the day before the day the witness is scheduled to testify. (2) All witnesses must include with their written statement a summary of the principal points included in the statement. (3) The written statements must be typed on letter-size paper (not legal size) and at least 100 copies must be submitted by the close of business the day before the witness is scheduled to testify. (4) Witnesses are not to read their written statements to the Subcommittee, but are to confine their oral presentations to a summary of the points included in the statement. Written testimony.-Written testimony submitted by witnesses not making oral statements should be typewritten, not more than 25 double-spaced pages in length, and mailed with five (5) copies by November 14, 1979, to Michael Stern, Staff Director, Committee on Finance, Room 2227 Dirksen Senate Office Building, Washington, D.C. 20510. [Press Release No. H-72, Nov. 2, 1979] FINANCE SUBCOMMITTEE ON TAXATION AND DEBT MANAGEMENT AMENDS HEARING NOTICE Senator Harry F. Byrd, Jr., (I., Va.), Chairman of the Subcommittee on Taxation and Debt Management of the Senate Committee on Finance, announced today that the subject matter of the hearing on Wednesday, November 7, 1979 will include S. 1549, dealing with the excise tax on fishing tackle, and S. 873, dealing with residency requirements for deductions and exclusions for individuals living and working abroad, as well as the Technical Corrections Act of 1979. The hearing will begin at 2:30 p.m. in Room 2221 of the Dirksen Senate Office Building. The subject matter of S. 1549 is included in H.R. 5505, which the House of Representatives passed on October 30, 1979. S. 1549 revises the schedule for payment of the 10-percent excise tax imposed upon the manufacturer's sale of fishing rods, reels, creels and artificial lures, baits and flies. The measure is sponsored by Senators Boren, Bellmon, Danforth, Durenberger, Nelson, and Percy. It has no revenue effect. It will benefit manufacturers of fishing equipment. S. 873 is sponsored by Senators Ribicoff, Bentsen, Church, Hayakawa, Javits and Tower. It would waive the residency requirements for deduction or exclusions of individuals living and working abroad where the individual was forced to return to the United States by circumstances beyond his control in the country in which he is working. The bill would primarily benefit Americans working in Iran who recently were forced to leave. Revenue estimates on this measure are not available at this time. Witnesses who desire to make oral statements at the hearing should submit a written request to Michael Stern, Staff Director, Committee on Finance, Room 2227 Dirksen Senate Office Building, Washington, D.C. 20510, by no later than 12:00 noon on November 6, 1979. Legislative Reorganization Act.-Senator Byrd stated that the Legislative Reorganization Act of 1946, as amended, requires all witnesses appearing before Committees of Congress "to file in advance written statements of their proposed testimony, and to limit their oral presentations to brief summaries of their argument.' Witnesses scheduled to speak should comply with the following rules: (1) A copy of the statement must be filed by noon the day before the day the witness is scheduled to testify. (2) All witnesses must include with their written statement a summary of the principal points included in the statement. (3) The written statements must be typed on letter-size paper (not legal size) and at least 100 copies must be submitted by the close of business the day before the witness is scheduled to testify. (4) Witnesses are not to read their written statements to the Subcommittee, but are to confine their oral presentations to a summary of the points included in the statement. Written testimony.-Written testimony submitted by witnesses not making oral statements should be typewritten, not more than 25 double-spaced pages in length, and mailed with five (5) copies by November 14, 1979, to Michael Stern, Staff Director, Committee on Finance, Room 2227 Dirksen Senate Office Building, Washington, D.C. 20510. To amend the Internal Revenue Code of 1954 to waive in certain cases the residency requirements for deductions or exclusions of individuals living abroad. IN THE SENATE OF THE UNITED STATES APRIL 4 (legislative day, FEBRUARY 22), 1979 Mr. RIBICOFF (for himself, Mr. BENTSEN, and Mr. TOWER) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1954 to waive in certain cases the residency requirements for deductions or exclusions of individuals living abroad. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That (a) subsection (j) of section 913 of the Internal Revenue 4 Code of 1954 (relating to deduction for certain expenses of 5 living abroad) is amended by adding at the end thereof the 6 following new paragraph: 17 18 19 20 21 22 23 2 "(4) WAIVER OF PERIOD OF STAY IN FOREIGN COUNTRY.-For purposes of paragraphs (1) and (2) of subsection (a), an individual who for any period is a bona fide resident of or is present in a foreign country and who "(A) leaves such foreign country— "(i) during any period during which the Secretary determines, after consultation with the Secretary of State or his delegate, that individuals were required to leave such foreign country because of war, civil unrest, or similar adverse conditions in such foreign country which precluded the normal conduct of business by such individuals, and "(ii) before meeting the requirements of such paragraphs (1) and (2), and "(B) establishes to the satisfaction of the Secretary that he could reasonably have been expected to have met such requirements, shall be treated as having met such requirements with respect to that period during which he was a bona fide resident or was present in the foreign country.". (b)(1) The amendments made by subsection (a) shall 24 apply to taxable years beginning after December 31, 1976, 25 but only with respect to periods an individual was a bona fide |