Sec. 220, RA of 1950, amended Sec. 251, IRC, by adding at the end thereof the following, and making amendment applicable to taxable years beginning after Dec. 31, 1949.

"(j) EMPLOYEES OF UNITED STATES.-For the purposes of this section, amounts paid for services performed by a citizen of the United States as an employee of the United States or any agency thereof shall be deemed to be derived from sources within the United States."

Sec. 221(b), RA of 1950, amended Sec. 252(a), IRC, by adding at the end thereof the following:

"This subsection shall have no application in the case of a citizen of Puerto Rico."

Sec. 2, Pub. Law 907, approved January 2, 1950, amended Sec. 294(d)(2), IRC, by adding the following new sentence at the end thereof:

"In the case of taxable years beginning prior to October 1, 1950, and ending after September 30, 1950, the additions to tax prescribed by this subsection shall not be applicable if the taxpayer failed to meet the 80-percent and 66 2/3-percent requirements of this paragraph by reason of the increase in normal tax and surtax on individuals imposed by section 101 of the Revenue Act of 1950."

SECTION 294(d)(3) – NEW.

Sec. 208 (d) (8), Social Security Act Amendments of 1950, amended Sec. 294 (d), IRC, by adding at the end thereof the following new paragraph:

3) TAX ON SELF-EMPLOYMENT INCOME. This subsection shall be applied without regard to the tax imposed by subchapter E, relating to tax on self-employment income."

Sec. 206 (b) (1), Social Security Act Amendments of 1950, amended Sec. 322(a), IRC. by adding the following new paragraph:

"(4) CREDIT FOR SPECIAL REFUNDS OF EMPLOYEE SOCIAL SECURITY TAX.-The Commissioner is authorized to prescribe, with the approval of the Secretary, regulations providing for the crediting against the tax imposed by this chapter for any taxable year of the amount determined by the taxpayer or the Commissioner to be allowable under section 1401 (d) as a special refund of tax imposed on wages received during the calendar year in which such taxable year begins. If more than one taxable year begins in such calendar year, such amount shall not be allowed under this section as a credit against the tax for any taxable year other than the last taxable year so beginning. The amount allowed as a credit under such regulations shall, for the purposes of this chapter, be considered an amount deducted and withheld at the source as tax under subchapter D of chapter 9."

Sec. 206 (c), SSAA of 1950, makes
amendment applicable only with respect
to taxable years beginning after Dec.
31, 1950 and only with respect to
"special refunds" in the case of wages
paid after Dec. 31, 1950.

Sec. 1(a), Pub. Law 716, approved August 18, 1950, amended Sec. 322(b) (3), IRC, by striking out the last sentence and inserting in lieu thereof the following: "Notwithstanding the foregoing provisions of this paragraph, the period within which a claim for credit or refund may be filed, or credit or refund allowed or made if no claim is filed, shall not expire prior to two years after the time the tax was paid, but if a claim is filed, or credit or refund allowed or made if no claim is filed, more than six months after the expiration of the period within which the Commissioner may make an assessment pursuant to such agreement or any extension thereof, the amount of the credit or refund shall not exceed the portion of the tax paid during the two years immediately preceding the filing of the claim, or, if no claim is filed, immediately preceding the allowance of the credit or refund.”

Pub. Law 716 makes amendment applicable to taxable years beginning after Dec. 31, 1923.

Sec. 121(e) (1), RA of 1950, amended Sec. 362(b) (3), IRC, to read as follows:

"(3) In the case of taxable years beginning after June 30, 1950, there shall be levied, collected, and paid for each taxable year upon its Supplement Q net income a tax equal to 25 per centum of the amount thereof. In the case of taxable years beginning after December 31, 1949, and before July 1, 1950, there shall be levied, collected, and paid for each taxable year upon its Supplement Q net income a tax equal to 23 per centum of the amount thereof.".

Sec. 121(e) (3), RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1949.

Sec. 121(e)(2), RA of 1950, amended Sec. 362(b)(4), IRC, to read as follows:

"(4) In the case of taxable years beginning after June 30, 1950, there shall be levied, collected, and paid for each taxable year upon its Supplement Q surtax net income a tax equal to 20 per centum of the amount thereof in excess of $25,000. In the case of taxable years beginning after December 31, 1949, and before July 1, 1950, there shall be levied, collected, and paid for each taxable year upon its Supplement Q surtax net income a tax equal to 19 per centum of the amount thereof in excess of $25,000."

Sec. 121(e) (3), RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1949.

SECTION 362(b) (4) - AMENDED.

Sec. 201(c), Excess Profits Tax Act of 1950, amended Sec. 362(b)(4), IRC, by striking out "20 per centum" and inserting in lieu thereof "22 per centum".

Sec. 201(e) of said Act makes amendment applicable to taxable years beginning on or after July 1, 1950.

Sec. 222, RA of 1950, amended Sec. 362(b), IRC, by adding the following new paragraph

"(8) For the purposes of this subsection, any dividend or portion thereof declared by a company after the close of the taxable year and prior to the time prescribed by law for the filing of its return for the taxable year (including the period of any extension of time granted for filing such return) shall, to the extent the company so elects in such return, be treated as having been paid during such taxable year, but only if distribution of such dividend is actually made to shareholders in the 12-month period following the close of such taxable year and not later than the date of the first regular dividend payment made after such declaration."

Sec. 304(f), Excess Profits Tax Act of 1950, amended Secs. 391 and 396 by striking out "section 725" and inserting in lieu thereof "section 449"

Sec. 102, RA of 1950, amended that part of Sec. 400, IRC, which precedes the tax table to read as follows:

"SEC. 400. IMPOSITION OF TAX.

"In lieu of the taxes imposed by sections 11 and 12, there shall be levied, collected, and paid for each taxable year upon the net income of each individual whose adjusted gross income for such year is less than $5,000, and who has elected to pay the tax imposed by this supplement for such year, a tax as follows: