Page:United States Statutes at Large Volume 74.djvu/331

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[74 Stat. 291]
[74 Stat. 291]
PUBLIC LAW 86-000—MMMM. DD, 1960

74 S T A T. ]

PUBLIC LAW 8 6 - 5 6 4 - J U N E 30, 1960

291

(2) Subsections (a) and (b) of section 5707 (relating to floor 26 USC S707. stocks refunds on cigarettes) are amended by striking out "July 1, 1960" each place it appears and inserting in lieu thereof

'July 1, 1961", and by striking out "October 1, 1960" and inserting in lieu thereof "October 1, 1961".

(3) Section 6412(a)(1) (relating to floor stocks refunds on 26 USC 6412. automobiles) is amended by striking out "July 1, 1960" each place it appears and inserting in lieu thereof "July 1, 1961", by striking out "October 1, 1960" and inserting in lieu thereof "October 1, 1961", and by striking out "November 10, 1960" each place it appears and inserting in lieu thereof "November 10, 1961". Section 497 of the Revenue Act of 1951 (relating to refunds on arti| | ^\f% c^^7oi cles from foreign trade zones), as amended, is amended by striking no**' out "July 1, 1960" each place it appears and inserting in lieu thereof "July 1, 1961". TITLE III—MISCELLANEOUS PROVISIONS 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. SEC. 302. DEPLETION RATE FOR CERTAIN CLAYS; TREATMENT PROCESSES CONSIDERED AS MINING FOR COMPUTING PERCENTAGE DEPLETION IN THE CASE OF MINERALS AND ORES. (a) DEPLETION RATE FOR CERTAIN CLAYS.—Subsection (b) of section 613 of the Internal Revenue Code of 1954 (relating to percentage depletion rates) is amended as follows: (1) Paragraph (3) is amended to read as follows: "(3) 15 percenl^" (A) metal mines (if paragraph (2)(B) does not apply), rock asphalt, and vermiculite; and

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