28 Self-employment tax

establishing their own work schedules and
routines, and reporting only the job comple-
tion to the operator are not the operator's
employees but are engaged in a trade or
business. Rev. Rul. 70-662 distinguished.
§1.1402(c)-1. (Secs. 1402, 3121, 3306, 3401;
'54 Code.)

Rev. Rul. 75-15, 1975-2 I.R.B. 8.

Sick pay

440.60

Returns; separate statement to support
exclusion.

Employees must submit a statement
showing the computation of excludable sick
pay on their individual income tax returns
even though the amount is shown separately
on Form W-2. Conditions are given under
which an employer may show separately on
Form W-2 excludable sick pay paid after
1974. Rev. Proc. 56-17 superseded and Rev.
Proc. 73-19 obsoleted. §1.105-4. (Sec.
601.401, S.P.R.; Secs. 105, 3401, '54 Code.)
Rev. Proc. 75-7, 1975-5 I.R.B. 28.

Sources of income
(See: Income source)

Stock:

Dividends

(See: Dividends)

Redemption

(See: Redemption of stock and
bonds)

Sales or exchanges
(See: Sales or exchanges)

Worthless
(See: Losses)

Suits

452.50

Injunction prohibiting assessment and
collection; withholding.

A court may not enjoin the Revenue Ser-
vice from enforcing the withholding provi-
sions of section 3402 of the Code against an
employer, a religious corporation, that in re-
sponse to the employees' request ceased
withholding from the employees' salaries a

Examples are provided for the computa-
tion of the 9 percent interest rate on under-
payments and overpayments of tax, effec-
tive on July 1, 1975, under the provisions of
section 6621 of the Code as added by Pub.
L. 93-625. §§301.6332-1, 301.6601-1,
301.6602-1, 301.6611-1, 301.7426-1. (Secs.
6332, 6601, 6602, 6611, 6621, 7426; '54
Code.)

Rev. Rul. 75-58, 1975-8 I.R.B. 24.

Tax Conventions

Japan

458.60

National Institutes of Health fellowship.

A U.S. nonresident alien Japanese scien-
tist granted a fellowship to perform research
at the National Institutes of Health, which
do not maintain a regular faculty or estab-
lished curriculum, have no organized stu-
dent body, and do not have student educa-
tion as their primary purpose, is not exempt
from U.S. income tax by reason of Article
19 of the U.S.-Japan Income Tax Conven-
tion.

Rev. Rul. 75-10, 1975-1 I.R.B. 22.

Netherlands

458.140

Netherlands Antilles corporation
member of U.S. partnership.

A foreign corporation formed under the
laws of the Netherlands Antilles for the pur-
pose of investing foreign capital in major
commercial real estate projects in the U.S.
through a limited U.S. partnership of which
it is a limited partner is considered to be
engaged in the business of the partnership
and the distributive share of partnership in-
come is taxable to it under section 882 of the

462.100

Index Digests

State income tax; husband and wife;
joint returns.

State income taxes imposed upon a mar-
ried taxpayer and paid during the taxable
year are deductible on a joint Federal return
regardless of which spouse actually paid the
taxes. Rev. Rul. 74-486 clarified. §1.164-1.
(Sec. 164, '54 Code.)

Rev. Rul. 75-47, 1975-7 I.R.B. 9.

462.180
Unemployment compensation disability
benefits fund and private plan wage
deductions.

Contributions made by employers and
employees to the New Jersey unemploy-
ment compensation fund, and by employers
to the State disability benefits fund, are de-
ductible as taxes under section 164(a) of the
Code. Amounts withheld from employees'
wages for contribution to the State disability
benefits fund or a substitute private plan are
neither taxes under section 164(a) nor medi-
cal expenses under section 213, but are non-
deductible personal expenses. I.T. 3970 su-
perseded. §§1.164-1, 1.213-1, 1.262-1. (Secs.
164, 213, 262; '54 Code.)

Rev. Rul. 75-48, 1975-7 I.R.B. 9.

Taxes:

Foreign
Foreign countries

(See: Foreign tax credit)

Tax-exempt
organizations

(See: Exempt organizations)

Tax-free exchanges

(See: Reorganizations)

Trade or business
(See: Self-employment tax)

Code and is not subject to U.S. withholding Traveling expenses

under section 1442. Further, pursuant to Ar-
ticle XII of the U.S.-Netherlands Conven-
tion as extended to the Netherlands Antil-
les, dividends and interest paid by the cor-
poration are not subject to U.S. tax unless
the recipient is a citizen, resident, or corpo-
ration of the U.S. §§1.864-4, 1.875-1, 1.881-
1, 1.882-1, 1.1441-1, 1.1442-1. (Secs. 864,
875, 881, 882, 1441, 1442; '54 Code.)
Rev. Rul. 75-23, 1975-3 I.R.B. 33.

468.50

Mileage rate; automobiles; employees
and self-employed.

For taxable years beginning after 1973, an
employee or self-employed person whose
automobile has been fully depreciated under
the straight-line method may compute the
allowable deduction for business use of his

Amortization, pollution control facilities, Fellowships

extension. (Sec. 169, '54 Code.) §3, Pub. L.