102 STAT. 2426
PUBLIC LAW 100-485—OCT. 13, 1988 "(B) RESTRICTION ON USE OF DISCLOSED INFORMATION.—
Any officers and employees of an agency receiving return information under subparagraph (A) shall use such information only for the purposes of, and to the extent necessary in, establishing appropriate agency records, locating any person with respect to whom a reduction under subsection (c) or (d) of section 6402 is sought for purposes of collecting the debt with respect to which the reduction is sought, or in the defense of any litigation or administrative procedure ensuing from a reduction made under subsection (c) or (d) of section 6402." (2) CONFORMING AMENDMENTS.—
26 USC 6103 note.
(A) Subsection (1) of section 6103 of such Code is amended by striking paragraph (11) and by redesignating paragraph (12) as paragraph (11). (B) Paragraphs (3)(A) and (4) of section 6103(p) of such Code are each amended by striking "(10), (11), or (12)" each place it appears and inserting "(10), or (11)". (C) Paragraph (2) of section 7213(a) of such (Dode is amended by striking "(9), (10), or (11)" and inserting "(9), or (10)". (3) EFFECTIVE DATES.— (A) IN GENERAL.—The amendments made by this subsection shall take effect on the date of the enactment of this Act. (B) SPECIAL RULE.—Nothing in section 2653(c) of the Deficit Reduction Act of 1984 shall be construed to limit the application of paragraph (10) of section 6103(1) of the Internal Revenue Code of 1986 (as amended by this subsection). SEC. 702. LIMITATION ON USE OF REIMBURSEMENT ARRANGEMENTS TO AVOID 2-PERCENT FLOOR.
(a) GENERAL RULE.—Section 62 of the Internal Revenue (Dode of 1986 (defining adjusted gross income) is amended by adding at the end thereof the following new subsection: "(c) CERTAIN ARRANGEMENTS NOT TREATED AS REIMBURSEMENT
26 USC 62 note.
ARRANGEMENTS.—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." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1988. SEC. 703. MODIFICATIONS TO DEPENDENT CARE CREDIT AND EXCLUSION FOR DEPENDENT CARE ASSISTANCE. (a) REDUCTION IN MAXIMUM AGE OF NONHANDICAPPED QUALIFYING
INDIVIDUAL.—Subsections (b)(l)(A) and (e)(5)(B) of section 21 of the
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