700
53 Stat. 183.
Infra, 74 Stat. 986. 26 USC 3306
Effective date.
74 Stat. 985.
PUBLIC LAW 91-373-AUG. 10, 1970
[84 STAT.
"(c) EMPLOYMENT.—For purposes of this chapter, the term 'employment' means any service performed prior to 1955, which was employment for purposes of subchapter C of chapter 9 of the Internal Revenue Code of 1939 under the law applicable to the period in which such service was performed, and (A) any service, of whatever nature, performed after 1954 by an employee for the person employing him, irrespective of the citizenship or residence of either, (i) within the United States, or (ii) on or in connection with an American vessel or American aircraft under a contract of service which is entered into within the United States or during the performance of which and while the employee is employed on the vessel or aircraft it touches at a port in the United States, if the employee is employed on and in connection with such vessel or aircraft when outside the United States, and (B) any service, of whatever nature, performed after 1971 outside the United States (except in a contiguous country wnth which the United States has an agreement relating to unemployment compensation or in the Virgin Islands) by a citizen of the United States as an employee of an American employer (as defined in subsection (j)(3)), except—". (b) Section 3306(j) of the Internal Revenue Code of 1954 is amended by inserting after paragraph (2) the following new paragraph: "(3) AMERICAN EMPLOYER.—The term 'American employer' means a person who is— (A) an individual who is a resident of the United States, (B) a partnership, if two-thirds or more of the partners are residents of the Ignited States, (C) a trust, if all of the trustees are residents of the United States, or (D) a corporation organized under the laws of the United States or of any State." ^^^ ^ j ^ ^ amendments made by this section shall apply with respect to service performed after December 31, 1971. SEC. 106. STUDENTS AND THEIR SPOUSES ENGAGED IN CERTAIN PROGRAMS; HOSPITAL PATIENTS. (a) ParaoTaph (10) of section 3306(c) of the Internal Revenue Code of 1954 is amended by striking out subparagraph (B) and inserting in lieu thereof the following new subparagraphs: " (B) service performed in the employ of a school, college, or university, if such service is performed (i) by a student who is enrolled and is regularly attending classes at such school, college, or university, or (ii) by the spouse of such a student, if such spouse is advised, at the time such spouse commences to perform such service, that (I) the employment of such spouse to perform such service is provided under a program to provide financial assistance to such student by such school, college, or university, and ( II) such employment will not be covered by any program of unemployment insurance, or " (C) service performed by an individual under the age of 22 who is enrolled at a nonprofit or public educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at such institution, which combines academic instruction with work experience, if such service is an integral part of such program, and such institution has so certified to
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