85 STAT. ]
PUBLIC LAW 92-178-DEC. 10, 1971
525
imposes no significant amount of tax with respect to such items.", (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 1969. SEC. 309. CERTAIN TREATY CASES.
(a) IN GENERAL.—The second sentence of section 7422(f)(1) (relating to limitation on right of action for refund) is amended by inserting before the period at the end thereof "and notwithstanding the provisions of section 1502 of such title 28 (relating to certain treaty cases)". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to suits or proceedings which are instituted after January 30, 1967.
80 Stat. 1108. 26 USC 7422.
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SEC. 310. BRIBES, KICKBACKS, MEDICAL REFERRAL PAYMENTS, ETC.
(a) AMENDMENTS TO SECTION 162(C).—Section 162(c) (relating to ^^ Stat. 7io. bribes and illegal kickbacks) is amended— (1) by striking out paragraphs (2) and (3) and inserting in lieu thereof the following new paragraphs: " (2) OTHER ILLEGAL PAYMENTS.—No deduction shall be allowed under subsection (a) for any payment (other than a payment described in paragraph (1)) made, directly or indirectly, to any person, if the payment constitutes an illegal bribe, illegal kickback, or other illegal payment under any law of the United States, or under any law of a State (but only if such State law is generally enforced), which subjects the payor to a criminal penalty or the loss of license or privilege to engage in a trade or business. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer. The burden of proof in respect of the issue, for purposes of this paragraph, as to whether a payment constitutes an illegal bribe, illegal kickback, or other illegal payment shall be upon the Secretary or his delegate to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the 83 Stat. 532. a^^l^f'Vo^^'* issue relates to fraud). " (3) KICKBACKS, REBATES, AND BKIBES UNDER MEDICARE AND
MEDICAID.—No deduction shall be allowed under subsection (a) for any kickback, rebate, or bribe made by any provider of services, supplier, physician, or other person who furnishes items or services for which payment is or may be made under the Social Security Act, or in whole or in part out of Federal funds under a State plan approved under such Act, if such kickback, rebate, or bribe is made in connection with the furnishing of such items or services or the making or receipt of such payments. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer."; and (2) by striking out "Bribes and Illegal Kickbacks." in the heading of such section and inserting in lieu thereof "Illegal Bribes, Kickbacks, and Other Payments.". (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply with respect to payments after December 30, 1969, except that section 162(c)(3) of the Internal Revenue Act of 1954 (as added by subsection (a)) shall apply only with respect to kickbacks, rebates, and bribes payment of which is made on or after the date of the enactment of this Act. SEC. 311. ACTIVITIES NOT ENGAGED IN FOR PROFIT. (a) APPLICATION OF STATUTORY PRESUMPTION.—Section 183 (relat-
ing to activities not engaged in for profit) is amended by adding at the end thereof the following new subsection: " (e) SPECIAL RULE. —
" (1) IN GENERAL.—A determination as to whether the presump-
8 3 Stat. 5 7 1.
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