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SEC. 8022— Continued ANCILLARY PROVISIONS (P.L. 86–89, § 4)—Continued mittee shall make all material and data collected in the course of the study conducted by it available to the Joint Committee on Internal Revenue Taxation to assist it in making the study required by subsection (b).

“(b)(1) The Joint Committee on Internal Revenue Taxation, or any duly authorized subcommittee thereof, is directed to make a full and complete study of the Renegotiation Act of 1951, as amended, and of the policies and practices of the Renegotiation Board.

“(2) The Joint Committee shall, not later than March 31, 1961 (extended by P.L. 87–4 and 87-55, below), report to the Senate and House of Representatives the results of the study conducted pursuant to paragraph (1) of this subsection, together with such recommendations as it deems necessary or desirable.

“(3) For the purpose of making the study and report required by paragraph (1) of this subsection, the Joint Committee, and the Chief of Staff of the Joint Committee, may exercise any of the powers conferred upon the Joint Committee and the Chief of Staff of the Joint Committee by sections 8021 and 8023 of the Internal Revenue Code of 1954. The provisions of section 8023(b) of such Code shall apply to requests made under the authority of this paragraph to the same extent as in the case of other requests made under the authority of section 8023(a) of such Code." June 30, 1960, H.R. 12381, P.L. 86–564, § 301, 74 Stat. 291: "SEC. 301. INVESTIGATION OF, AND REPORTS ON, TREATMENT OF ENTERTAINMENT

AND CERTAIN OTHER EXPENSES. "(a) INVESTIGATION AND REPORT BY JOINT COMMITTEE ON INTERNAL REVENUE TAXATION.—The Joint Committee on Internal Revenue Taxation is hereby authorized and directed to make a full and complete investigation and study of the operation and effects of present law, regulations, and practices relating to the deduction, as ordinary and necessary business expenses, of expenses for entertainment, gifts, dues or initiation fees in social, athletic, or sporting clubs or organizations, and similar or related items. The Joint Committee shall report to the House of Representatives and to the Senate the results of its investigation and study as soon as practicable during the 87th Congress, together with its recommendations for any changes in the law and administrative practices which in its judgment are necessary or appropriate.

(b) REPORT BY SECRETARY OF THE TREASURY.—The Secretary of the Treasury is hereby authorized and directed to report as soon as practicable during the 87th Congress to the House of Representatives and to the Senate the results of the enforcement program of the Internal Revenue Service (announced in Technical Information Release 221, dated April 4, 1960) relating to the deductions, as ordinary and necessary business expenses, of expenses for entertainment, travel, yachts, hunting lodges, club dues, and similar or related items, together with such recommendations with respect thereto as he considers necessary or appropriate to avoid misuse of the business expense deduction.

"(c) CONSULTATION OF STAFFS. The staff of the Joint Committee on Internal Revenue Taxation, and the staff of the Secretary of the Treasury, shall consult and cooperate with each other in performing any duties assigned to carry out the purposes of this section." 905

905 On April 20, 1961, the President's message making recommendations on tax revision was referred to the Committee on Ways and Means. Hearings on these recommendations began before that Committee on May 31, 1961. On that date Secretary of the Treasury Dillon submitted a statement containing recommendations regarding the treatment of entertainment and certain other expenses as deductions for purposes of income tax. See “Hearings before the Committee on Ways and Means, House of Representatives, Eighty-Seventh Congress, First Session”, Vol. 1, pages 42–44, 133–215, 281-286. See also “Hearings before the Committee on Finance, United States Senate, Eighty-Seventh Congress, Second Session, on H.R. 10650”, Part 1, pages 39-90, 267–351.

No formal report was made by the Joint Committee on Internal Revenue Taxation or by the Secretary of the Treasury under P.L. 86–564, $ 301. However, the Revenue Act of 1962 (P.L. 37-834, October 16, 1962) contained in section 4 provisions for the disallowance of certain entertainment, etc., expenses. See new Code section 274, p. 149 above.

SEC. 8022—Continued
ANCILLARY PROVISIONS—Continued
Mar. 22, 1961, H.J. Res. 289, P.L. 87-4, 75 Stat. 6:

"JOINT RESOLUTION “Relating to the Time for filing a Report on Renegotiation by the Joint Committee on

Internal Revenue Taxation. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Section 4(b)(2) of Public Law 86–89, July 13, 1959, extending the Renegotiation Act of 1951, is amended by striking out 'March 31, 1961', relating to the time for filing a report on Renegotiation by the Joint Committee on Internal Revenue Taxation, and inserting in lieu thereof June 30, 1961'.

"Approved March 22, 1961." June 21, 1961, H.J. Res. 437, P.L. 87–55, 75 Stat. 95:

“JOINT RESOLUTION “Relating to the time for filing a report on renegotiation by the Joint Committee on Internal

Revenue Taxation. "Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4(b)(2) of Public Law 86–89, July 13, 1959, extending the Renegotiation Act of 1951, as amended, is further amended by striking out 'June 30, 1961', relating to the time for filing a report on renegotiation by the Joint Committee on Internal Revenue Taxation, and inserting in lieu thereof ‘January 31, 1962'. 906

“Approved June 21, 1961.” SEC. 8023. ADDITIONAL POWERS TO OBTAIN DATA (68A Stat.

928): (a)--------- Sept. 22, 1959, H.R. 8685, P.L. 86–368, $ 2(b)(1), 73 Stat. 648:

Amended Sec. 8023(a) 907 (securing data) by striking out

"(including the Assistant General Counsel of the Treasury De-
partment serving as the Chief Counsel of the Internal Revenue

Service)”
and inserting in lieu thereof,

"or the office of the Chief Counsel for the Internal Revenue

Service".
Effective Date:
April 12, 1960.
*(Id., § 3(b), 73 Stat. 648. See “Effective Date" under Sec.

7452, p. 1166, and n. 897, p. 1193 above.)

906 Pursuant to P.L. 86–69, $ 4, as amended, the Joint Committee transmitted to the Speaker of the House of Representatives its “REPORT ON THE RENEGOTIATION ACT OF 1951" (87th Congress, 2d Session, House Document No. 322) under date of January 31, 1962.

007 Section 8023 originally read as follows (68A Stat. 928): "SEC. 8023. ADDITIONAL POWERS TO OBTAIN DATA.

"(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 (including the Assistant General Counsel of the Treasury Department serving as the Chief Counsel of 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.

"(b) FURNISHING OF DATA.— The Internal Revenue Service (including the Assistant General Counsel of the Treasury Department serving as the Chief Counsel of the Internal Revenue Service), executive departments, boards, bureaus, agencies, independent establishments, and instrumentalities are authorized and directed to furnish such information, sugggestions, 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.

"(c) Subsections (a) and (b) shall be applied in accordance with their provisions without regard to Reorganization Plan Numbered 26 of 1950 or to any other reorganization plan becoming effective on, before, or after February 28, 1951."

SEC. 8023—Continued
(b).-------- Sept. 22, 1959, H.R. 8685, P.L. 86–368, $ 2(b)(2), 73 Stat. 648:

Amended Sec. 8023(b) (n. 906 above) by striking out

“(including the Assistant General Counsel of the Treasury De-
partment serving as the Chief Counsel of the Internal Revenue

Service)”
and inserting in lieu thereof,

“, the office of the Chief Counsel for the Internal Revenue Service”.
Effective Date:
April 12, 1960.
(Id., § 3(b), 73 Stat. 648. See "Effective Date" of amendment

to Sec. 7452, p. 1166, and n. 897, p. 1193 above.)

TABLES
I—Sources of the 1954 Code-----
II—Corresponding sections of the 1939 and 1954 Codes.------
III—Amendments to 1939 Code since August 16, 1954.---
IV-Amendatory statutes ----

Page 1207 1221 1235 1237

1205

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