"This Act may be cited as the 'Payment-in-Kind Tax Treatment Act of 1983'.
"(a) Income Tax Deferral, Etc .—Except as otherwise provided in this Act, for purposes of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]—
"(1) a qualified taxpayer shall not be treated as having realized income when he receives a commodity under a 1983 payment-in-kind program,
"(2) such commodity shall be treated as if it were produced by such taxpayer, and
"(3) the unadjusted basis of such commodity in the hands of such taxpayer shall be zero.
"(b) Effective Date .—This section shall apply to taxable years ending after December 31, 1982, but only with respect to commodities received for the 1983 crop year.
"(a) General Rule .—For purposes of the provisions specified in subsection (b), in the case of any land diverted from the production of an agricultural commodity under a 1983 payment-in-kind program—
"(1) such land shall be treated as used during the 1983 crop year by the qualified taxpayer in the active conduct of the trade or business of farming, and
"(2) any qualified taxpayer who materially participates in the diversion and devotion to conservation uses required under a 1983 payment-in-kind program shall be treated as materially participating in the operation of such land during such crop year.
"(b) Provisions to Which Subsection (a) Applies .—The provisions specified in this subsection are—
"(1) section 2032A of the Internal Revenue Code of 1986 (relating to valuation of certain farm, etc., real property),
"(2) section 6166 of such Code (relating to extension of time for payment of estate tax where estate consists largely of interest in closely held business),
"(3) chapter 2 of such Code (relating to tax on self-employment income), and
"(4) title II of the Social Security Act [ 42 U.S.C. 401 et seq. ] (relating to Federal old-age, survivors, and disability insurance benefits).
"(a) General Rule .—In the case of any person, sections 2 and 3 of this Act shall not apply with respect to any land acquired by such person after February 23, 1983, unless such land was acquired in a qualified acquisition.
"(b) Qualified Acquisition .—For purposes of this section, the term 'qualified acquisition' means any acquisition—
"(1) by reason of the death of a qualified transferor,
"(2) by reason of a gift from a qualified transferor, or
"(3) from a qualified transferor who is a member of the family of the person acquiring the land.
"(c) Definitions and Special Rules .—For purposes of this section—
"(1) Qualified transferor .—The term 'qualified transferor' means any person—
"(A) who held the land on February 23, 1983, or
"(B) who acquired the land after February 23, 1983, in a qualified acquisition.
"(2) Member of family .—The term 'member of the family' has the meaning given such term by section 2032A(e)(2) of the Internal Revenue Code of 1986.
"(3) Mere change in form of business .—Subsection (a) shall not apply to any change in ownership by reason of a mere change in the form of conducting the trade or business so long as the land is retained in such trade or business and the person holding the land before such change retains a direct or indirect 80-percent interest in such land.
"(4) Treatment of certain acquisitions of right to the crop .—The acquisition of a direct or indirect interest in 80 percent or more of the crop from any land shall be treated as an acquisition of such land.
"(a) General Rule .—For purposes of this Act—
"(1) 1983 payment-in-kind program.— The term '1983 payment-in-kind program' means any program for the 1983 crop year—
"(A) under which the Secretary of Agriculture (or his delegate) makes payments in kind of any agricultural commodity to any person in return for—
"(i) the diversion of farm acreage from the production of an agricultural commodity, and
"(ii) the devotion of such acreage to conservation uses, and
"(B) which the Secretary of Agriculture certifies to the Secretary of the Treasury as being described in subparagraph (A).
"(2) Crop year .—The term '1983 crop year' means the crop year for any crop the planting or harvesting period for which occurs during 1983. The term '1984 crop year' means the crop year for wheat the planting and harvesting period for which occurs during 1984.
"(3) Qualified taxpayer .—The term 'qualified taxpayer' means any producer of agricultural commodities (within the meaning of the 1983 payment-in-kind programs) who receives any agricultural commodity in return for meeting the requirements of clauses (i) and (ii) of paragraph (1)(A).
"(4) Receipt includes right to receive, etc .—A right to receive (or other constructive receipt of) a commodity shall be treated the same as actual receipt of such commodity.
"(5) Amounts received by the taxpayer as reimbursement for storage .—A qualified taxpayer reporting on the cash receipts and disbursements method of accounting shall not be treated as being entitled to receive any amount as reimbursement for storage of commodities received under a 1983 payment-in-kind program until such amount is actually received by the taxpayer.
"(6) Commodity credit loans treated separately .—Subsection (a) of section 2 shall apply to the receipt of any commodity under a 1983 payment-in-kind program separately from, and without taking into account, any related transaction or series of transactions involving the satisfaction of loans from the Commodity Credit Corporation.
"(b) Extension to Wheat Planted and Harvested in 1984.—In the case of wheat—
"(1) any reference in this Act to the 1983 crop year shall include a reference to the 1984 crop year, and
"(2) any reference to the 1983 payment-in-kind program shall include a reference to any program for the 1984 year for wheat which meets the requirements of subparagraphs (A) and (B) of subsection (a)(1).
"(c) Regulations .—The Secretary of the Treasury or his delegate (after consultation with the Secretary of Agriculture) shall prescribe such regulations as may be necessary to carry out the purposes of this Act, including (but not limited to) such regulations as may be necessary to carry out the purposes of this Act where the commodity is received by a cooperative on behalf of the qualified taxpayer."
div. A, title X, §1061(b), July 18, 1984, 98 Stat. 1047 , provided that: "The amendments made by this section [amending
set out above] shall apply with respect to commodities received for the 1984 crop year (as defined in section 5(a)(2) of the Payment-in-Kind Tax Treatment Act of 1983 [
set out above] as amended by subsection (a))."]
§2, Oct. 22, 1986, 100 Stat. 2095 , provided that no amount be included in gross income of an individual for purposes of 26 U.S.C. 61 by reason of the discharge made before Jan. 1, 1983 of the indebtedness of the individual under a student loan if the discharge was pursuant to a provision of the loan under which the indebtedness of the individual would be discharged if the individual worked for a certain period of time in certain geographical areas or for certain classes of employers.
"(a) General Rule .—With respect to taxable years beginning on or before the date on which regulations dealing with prepublication expenditures are issued after the date of the enactment of this Act [Oct. 4, 1976], the application of sections 61 (as it relates to cost of goods sold), 162, 174, 263, and 471 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] to any prepublication expenditure shall be administered—
"(1) without regard to Revenue Ruling 73–395, and
"(2) in the manner in which such sections were applied consistently by the taxpayer to such expenditures before the date of the issuance of such revenue ruling.
"(b) Regulations To Be Prospective Only .—Any regulations issued after the date of the enactment of this Act [Oct. 4, 1976] which deal with the application of sections 61 (as it relates to cost of goods sold), 162, 174, 263, and 471 of the Internal Revenue Code of 1986 to prepublication expenditures shall apply only with respect to taxable years beginning after the date on which such regulations are issued.
"(c) Prepublication Expenditures Defined .—For purposes of this section, the term 'prepublication expenditures' means expenditures paid or incurred by the taxpayer (in connection with his trade or business of publishing) for the writing, editing, compiling, illustrating, designing, or other development or improvement of a book, teaching aid, or similar product."
§5, Sept. 14, 1960, 74 Stat. 1013 , provided for the exclusion from gross income of any amount received after Dec. 31, 1949, and before Oct. 1, 1955, by employees of certain corporations as reimbursement for moving expenses, and the refund or credit of any overpayments.
CHAPTER 1 -NORMAL TAXES AND SURTAXES!@!Subchapter B-Computation of Taxable Income!@!PART I-DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE INCOME, ETC.!@!Sec. 62 -->
For purposes of this subtitle, the term "adjusted gross income" means, in the case of an individual, gross income minus the following deductions:
The deductions allowed by this chapter (other than by part VII of this subchapter) which are attributable to a trade or business carried on by the taxpayer, if such trade or business does not consist of the performance of services by the taxpayer as an employee.
The deductions allowed by part VI (section 161 and following) which consist of expenses paid or incurred by the taxpayer, in connection with the performance by him of services as an employee, under a reimbursement or other expense allowance arrangement with his employer. The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.
The deductions allowed by section 162 which consist of expenses paid or incurred by a qualified performing artist in connection with the performances by him of services in the performing arts as an employee.
The deductions allowed by section 162 which consist of expenses paid or incurred with respect to services performed by an official as an employee of a State or a political subdivision thereof in a position compensated in whole or in part on a fee basis.
The deductions allowed by section 162 which consist of expenses, not in excess of $250, paid or incurred by an eligible educator—
(i) by reason of the participation of the educator in professional development courses related to the curriculum in which the educator provides instruction or to the students for which the educator provides instruction, and
(ii) in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.
The deductions allowed by section 162 which consist of expenses, determined at a rate not in excess of the rates for travel expenses (including per diem in lieu of subsistence) authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code , paid or incurred by the taxpayer in connection with the performance of services by such taxpayer as a member of a reserve component of the Armed Forces of the United States for any period during which such individual is more than 100 miles away from home in connection with such services.
The deductions allowed by part VI (sec. 161 and following) as losses from the sale or exchange of property.
The deductions allowed by part VI (sec. 161 and following), by section 212 (relating to expenses for production of income), and by section 611 (relating to depletion) which are attributable to property held for the production of rents or royalties.
In the case of a life tenant of property, or an income beneficiary of property held in trust, or an heir, legatee, or devisee of an estate, the deduction for depreciation allowed by section 167 and the deduction allowed by section 611.
In the case of an individual who is an employee within the meaning of section 401(c)(1), the deduction allowed by section 404.
The deduction allowed by section 219 (relating to deduction of certain retirement savings).
[(8) Repealed.The deductions allowed by section 165 for losses incurred in any transaction entered into for profit, though not connected with a trade or business, to the extent that such losses include amounts forfeited to a bank, mutual savings bank, savings and loan association, building and loan association, cooperative bank or homestead association as a penalty for premature withdrawal of funds from a time savings account, certificate of deposit, or similar class of deposit.
[(10) Repealed.The deduction allowed by section 194.
The deduction allowed by section 165 for the repayment to a trust described in paragraph (9) or (17) of section 501(c) of supplemental unemployment compensation benefits received from such trust if such repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 1974 ( 19 U.S.C. 2291 and 2292 ).
Any deduction allowable under this chapter by reason of an individual remitting any portion of any jury pay to such individual's employer in exchange for payment by the employer of compensation for the period such individual was performing jury duty. For purposes of the preceding sentence, the term "jury pay" means any payment received by the individual for the discharge of jury duty.
[(14) Repealed.The deduction allowed by section 217.
The deduction allowed by section 220.
The deduction allowed by section 221.
[(18) Repealed.The deduction allowed by section 223.
Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination (as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code , or a claim made under section 1862(b)(3)(A) of the Social Security Act ( 42 U.S.C. 1395y(b)(3)(A) ). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer's gross income for the taxable year on account of a judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from such claim.
Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under—
(i) section 7623(b), or
(ii) in the case of taxable years beginning after December 31, 2017, any action brought under—
(I) section 21F of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6 ),
(II) a State false claims act, including a State false claims act with qui tam provisions, or
(III) section 23 of the Commodity Exchange Act ( 7 U.S.C. 26 ).
Subparagraph (A) shall not apply to any deduction in excess of the amount includible in the taxpayer's gross income for the taxable year on account of such award.
Nothing in this section shall permit the same item to be deducted more than once. Any deduction allowed by section 199A shall not be treated as a deduction described in any of the preceding paragraphs of this subsection.
For purposes of subsection (a)(2)(B), the term "qualified performing artist" means, with respect to any taxable year, any individual if—
(A) such individual performed services in the performing arts as an employee during the taxable year for at least 2 employers,
(B) the aggregate amount allowable as a deduction under section 162 in connection with the performance of such services exceeds 10 percent of such individual's gross income attributable to the performance of such services, and
(C) the adjusted gross income of such individual for the taxable year (determined without regard to subsection (a)(2)(B)) does not exceed $16,000.
An individual shall not be treated as performing services in the performing arts as an employee for any employer during any taxable year unless the amount received by such individual from such employer for the performance of such services during the taxable year equals or exceeds $200.
Except in the case of a husband and wife who lived apart at all times during the taxable year, if the taxpayer is married at the close of the taxable year, subsection (a)(2)(B) shall apply only if the taxpayer and his spouse file a joint return for the taxable year.
In the case of a joint return—
(i) paragraph (1) (other than subparagraph (C) thereof) shall be applied separately with respect to each spouse, but
(ii) paragraph (1)(C) shall be applied with respect to their combined adjusted gross income.
For purposes of this subsection, marital status shall be determined under section 7703(a).
For purposes of this subsection, the term "joint return" means the joint return of a husband and wife made under section 6013.
For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement or other expense allowance arrangement if—
(1) such arrangement does not require the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, or
(2) such arrangement provides the employee the right to retain any amount in excess of the substantiated expenses covered under the arrangement.
The substantiation requirements of the preceding sentence shall not apply to any expense to the extent that substantiation is not required under section 274(d) for such expense by reason of the regulations prescribed under the 2nd sentence thereof.
For purposes of subsection (a)(2)(D), the term "eligible educator" means, with respect to any taxable year, an individual who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year.
The term "school" means any school which provides elementary education or secondary education (kindergarten through grade 12), as determined under State law.
A deduction shall be allowed under subsection (a)(2)(D) for expenses only to the extent the amount of such expenses exceeds the amount excludable under section 135, 529(c)(1), or 530(d)(2) for the taxable year.
In the case of any taxable year beginning after 2015, the $250 amount in subsection (a)(2)(D) shall be increased by an amount equal to—
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting "calendar year 2014" for "calendar year 2016" in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50.
For purposes of subsection (a)(20), the term "unlawful discrimination" means an act that is unlawful under any of the following:
(1) Section 302 of the Civil Rights Act of 1991 ( 42 U.S.C. 2000e–16b ).
(2) Section 201, 202, 203, 204, 205, 206, 207, or 208 of the Congressional Accountability Act of 1995 ( 2 U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317). 1
(3) The National Labor Relations Act ( 29 U.S.C. 151 et seq. ).
(4) The Fair Labor Standards Act of 1938 ( 29 U.S.C. 201 et seq. ).
(5) Section 4 or 15 of the Age Discrimination in Employment Act of 1967 ( 29 U.S.C. 623 or 633a).
(6) Section 501 or 504 of the Rehabilitation Act of 1973 ( 29 U.S.C. 791 or 794).
(7) Section 510 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1140 ).
(8) Title IX of the Education Amendments of 1972 ( 20 U.S.C. 1681 et seq. ).
(9) The Employee Polygraph Protection Act of 1988 ( 29 U.S.C. 2001 et seq. ).
(10) The Worker Adjustment and Retraining Notification Act ( 29 U.S.C. 2102 et seq. ).
(11) Section 105 of the Family and Medical Leave Act of 1993 ( 29 U.S.C. 2615 ).
(12) Chapter 43 of title 38, United States Code (relating to employment and reemployment rights of members of the uniformed services).
(13) Section 1977, 1979, or 1980 of the Revised Statutes ( 42 U.S.C. 1981, 1983, or 1985).
(14) Section 703, 704, or 717 of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e–2, 2000e–3, or 2000e–16).
(15) Section 804, 805, 806, 808, or 818 of the Fair Housing Act ( 42 U.S.C. 3604, 3605, 3606, 3608, or 3617).
(16) Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12112, 12132, 12182, or 12203).
(17) Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law.
(18) Any provision of Federal, State, or local law, or common law claims permitted under Federal, State, or local law—
(i) providing for the enforcement of civil rights, or
(ii) regulating any aspect of the employment relationship, including claims for wages, compensation, or benefits, or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted by law.