PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 1055 "(ii) the taxpayer has paid the entire amount of the deficiency plus interest claimed by the Secretary, and "(B) the Tax Court finds under section 6512(b) that the taxpayer has made an overpa3ment. "(3) SPECIAL RULES. —If the Tax Court determines under this subsection that the taxpayer has made an overpayment of interest or that the Secretary has made an underpayment of interest, then that determination shall be treated under section 6512(b)(1) as a determination of an overpayment of tax. AQ order of the Tax Court redetermining interest, when entered upon the records of the court, shall be reviewable in the same manner as a decision of the Tax Court.". (b) EFFECTIVE DATE.—The amendment made by this section 26 USC 7481 shall take effect on the date of the enactment of this Act. ^°^- SEC. 1453. APPLICATION OF NET WORTH REQUIREMENT FOR AWARDS OF LITIGATION COSTS. (a) IN GENERAL. — Paragraph (4) of section 7430(c) (defining prevailing party) is amended by adding at the end thereof the following new subparagraph: "(D) SPECIAL RULES FOR APPLYING NET WORTH REQUIRE- MENT.— In applying the requirements of section 2412(d)(2)(B) of title 28, United States Code, for purposes of subparagraph (A)(iii) of this paragraph— "(i) the net worth limitation in clause (i) of such section shall apply to— "(I) an estate but shall be determined as of the date of the decedent's death, and "(II) a trust but shall be determined as of the last day of the taxable year involved in the proceeding, and "(ii) individuals filing a joint return shall be treated as separate individuals for purposes of clause (i) of such section.". (b) EFFECTIVE DATE. —The amendment made by this section 26 USC 7430 shall apply to proceedings commenced after the date of the enact- note. ment of this Act. SEC. 1454. PROCEEDINGS FOR DETERMINATION OF EMPLOYMENT STA- TUS. (a) IN GENERAL.— Subchapter B of chapter 76 (relating to proceedings by taxpayers and third parties) is amended by redesignating section 7436 as section 7437 and by inserting after section 7435 the following new section: "SEC. 7436. PROCEEDINGS FOR DETERMINATION OF EMPLOYMENT STATUS. "(a) CREATION OF REMEDY.— If, in connection with an audit of any person, there is an actual controversy involving a determination by the Secretary as part of an examination that— "(1) one or more individuals performing services for such person are employees of such person for purposes of subtitle C, or "(2) such person is not entitled to the treatment under subsection (a) of section 530 of the Revenue Act of 1978 with respect to such an individual, upon the filing of an appropriate pleading, the Tax Court may determine whether such a determination by the Secretary is correct.
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