96 STAT. 640
PUBLIC LAW 97-248—SEPT. 3, 1982
Subtitle I—Other Provisions SEC. 351. DISALLOWANCE OF DEDUCTIONS RELATING TO NARCOTICS TRAFFICKING. (a) IN GENERAL. — Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding a t the end thereof the following new section: 26 USC 280E.
21 USC 812.
"SEC. 280E. EXPENDITURES IN CONNECTION WITH THE ILLEGAL SALE OF DRUGS. "No deduction or credit shall be allowed for any a m o u n t paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the m e a n i n g of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted." (b) CONFORMING AMENDMENT. — The t a b l e of sections for part IX of
subchapter B of chapter 1 of such Code is amended by adding a t the end thereof the following new item: "Sec. 280E. Expenditures in connection with the illegal sale of drugs." 26 USC 280E ^°^-
(c) EFFECTIVE D A T E. — The amendments made by this section shall apply to a m o u n t s paid or incurred after the date of the e n a c t m e n t of this Act in taxable years ending after such date. SEC. 352. SENSE OF CONGRESS WITH RESPECT TO PROVIDING OF ADDI TIONAL FUNDS TO INTERNAL REVENUE SERVICE. It is the sense of the Congress that the r e be appropriated for the use of the I n t e r n a l Revenue Service to provide additional staff— (1) for fiscal year 1983, the a m o u n t s proposed in the President's budget for fiscal year 1983, and (2) such a m o u n t s in excess of the a m o u n t requested for such purpose in the President's proposed budgets as may be necessary to provide sufficient improved enforcement to increase revenues by $1 billion in fiscal year 1984 and $2 billion in fiscal year 1985.
26 USC 6011
26 USC 501.
SEC. 353. REPORT ON FORMS. Not later than June 30, 1983, the Secretary of the Treasury or his delegate shall study and report to the Congress methods of modifying the design of the forms used by the I n t e r n a l Revenue Service to achieve g r e a t e r accuracy in the reporting of income and the matching of information reports and r e t u r n s with the r e t u r n s of tax imposed by chapter 1 of the I n t e r n a l Revenue Code of 1954. SEC. 354. EXEMPTION OF VETERANS' ORGANIZATIONS. (a) IN GENERAL. — Paragraph (19) of section 501(c) (relating to exemption of veterans ' organizations) is amended— (1) by striking out " w a r veterans " the first place it a p p e a r s and inserting in lieu thereof "past or present m e m b e r s of the A r m e d Forces of the United States ", and (2) by amending subparagraph (B) to read as follows: "(B) a t least 75 percent of the m e m b e r s of which a r e past or present m e m b e r s of the Armed Forces of the United States and substantially all of the other m e m b e r s of which a r e individuals who a r e cadets or a r e spouses, widows, or
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