PUBLIC LAW 94-331—JUNE 30, 1976
90 STAT. 781
Public Law 94-331 94th Congress An Act To amend section 815 of the Internal Revenue Code to allow a life insurance company to disregard (for purposes of that section) a distribution during the last month of its taxable year, determined to have been made out of the policyholders surplus account, if such distribution is returned to the company not later than the due date for filing its income tax return (including extensions thereof) for that year, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 815(d) of the I n t e r n a l Revenue Code of 1954 (relating to special rules for distributions to shareholders) is amended by adding a t the end thereof the following new paragraph: "(6)
RESTORATION
OF AMOUNTS DISTRIBUTED OUT or
POLICY-
June 30, 1976 [H.R. 10051]'
Life insurance companies, certain distributions out of policyholders surplus account, restoration; Social Security Act, amendments. 26 USC 815.
HOLDERS SURPLUS ACCOUNT.—Notwithstanding any other provision of this subchapter, no amount shall be subtracted from a taxpayer's policyholders surplus account with respect to a distribution made during the last month of the taxable year which, without regard to this paragraph, would be treated in whole or in part as a distribution out of the policyholders surplus account, to the extent that amounts so distributed are returned to the tax p a y e r no later than the time prescribed by law (including extensions thereof) for filing the taxpayer's return for the taxable year in which the distribution was made. For purposes of this paragraph, amounts returned to a taxpayer with respect to a distribution shall be first applied to the return of amounts which, without regard to this paragraph, would have been treated as distributed out of the policyholders surplus account. This paragraph shall not apply if, a t the time such distribution was made, the taxpayer intended to avail itself of the provisions of this paragraph by having its shareholders return all or a part of such distribution. Nothing in this paragraph shall affect the tax treatment of the receipt of the distribution by any shareholder, and the basis to a shareholder of his stock in the taxpayer shall not be increased by reason of amounts returned under this paragraph to the extent that a dividends leceived deduction or exclusion was allowable in respect of the distribution of such amount under any provision of this title.", (b) The amendment made by this section shall apply with respect Effective date. to taxable years ending after December 31, 1957. 26 USC 815 note.
SEC. 2 EXCLUSION FROM INCOME UNDER THE SUPPLEMENTAL . SECURITY INCOME PROGRAM. (a) IN GENERAL.—Section 1612(b) of the Social Security Act is 42 USC 1382a, amended— (1) by striking out the word " and " which appears at the end of paragraph (9), (2) by striking out the period a t the end of paragraph (10) and by inserting in lieu thereof "; and ", (3) by inserting the following new paragraph: "(11) assistance received under the Disaster Relief Act of 1974 42 USC 5121 or other assistance provided pursuant to a Federal statute on note. account of a catastrophe which is declared to be a major disaster by the President.".
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