# Pub. L. 86-778: changes to the Internal Revenue Code 1960-09-13, 74 Stat. 926. Source: . ## Legislative history - Bill: [H.R. 12580](https://www.congress.gov/bill/86th-congress/house-bill/12580) ## § 1402: Definitions - § 1402(a): Pub. L. 86–778, § 103(k), added par. (9) and inserted references to paragraph (9) in cls. (v) and (vi) of last sentence. - § 1402(b): Pub. L. 86–778, § 103(l), substituted “the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa” for “the Virgin Islands or a resident of Puerto Rico” in last sentence. - § 1402(c)(2): Pub. L. 86–778, § 106(b), excluded service described in section 3121(b)(11), (12), or (15) performed in the United States (as defined in section 3121(e)(2)) by a citizen of the United States. - § 1402(e)(2): Pub. L. 86–778, § 101(a), substituted “1959” for “1956”. - § 1402(e)(3): Pub. L. 86–778, § 101(b), designated existing provisions as cl. (A), struck out provisions which related to certificates for prior taxable years which have now become inapplicable, and added cl. (B). - § 1402(e): Pub. L. 86–778, § 101(c), added par. (5). - § 1402(g): Pub. L. 86–778, § 105(c)(1), added subsec. (g). ## § 1403: Miscellaneous provisions - § 1403(b)(2): Pub. L. 86–778 included Guam and American Samoa. ## § 3121: Definitions - § 3121(b)(3): Pub. L. 86–778, § 104(b), designated existing provisions as cl. (A) and struck out provisions which related to service performed by an individual in the employ of his son or daughter, and added cl. (B). - § 3121(b)(7): Pub. L. 86–778, § 103(n), excluded service in the employ of the Government of Guam or the Government of American Samoa or any political subdivision thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby. - § 3121(b)(18): Pub. L. 86–778, § 103(o), added par. (18). - § 3121(e): Pub. L. 86–778, § 103(p), struck out a reference to Hawaii in cl. (1), and included Guam and American Samoa and cls. (1) and (2). - § 3121(k): Pub. L. 86–778, § 105(a)(1), (2), struck out “and that at least two-thirds of its employees concur in the filing of the certificate” after “extended to service performed by its employees”, and substituted “of each employee (if any) who concurs” for “of each employee who concurs”. - § 3121(k): Pub. L. 86–778, § 105(a)(3), substituted “in either group, or may file a separate certificate pursuant to such subparagraph with respect to the employees in each group” for “in one of the groups if at least two-thirds of the employees in such group concur in the filing of the certificate. The organization may also file such a certificate with respect to the employees in the other group if at least two-thirds of the employees in such other group concur in the filing of such certificate.” ## § 3125: Returns in the case of governmental employees in States, Guam, American Samoa, and the District of Columbia - Enacted 26 U.S.C. § 3125. ## § 3128: Short title ## § 3301: Rate of tax - § 3301: Pub. L. 86–778 substituted “1961” for “1955” and “3.1 percent” for “3 percent”. ## § 3302: Credits against tax - § 3302(c): Pub. L. 86–778 restricted cl. (2) to advances made before the date of the enactment of the Employment Security Act of 1960, added cl. (3), and struck out provisions which related to the attributing of wages to a particular State, which provisions are now covered by subsec. (d)(2). - § 3302(d): Pub. L. 86–778 added subsec. (d). ## § 3305: Applicability of State law - § 3305(b): Pub. L. 86–778, § 531(a), substituted “(other than an instrumentality to which section 3306(c)(6) applies)” for “except such as are (1) wholly owned by the United States, or (2) exempt from the tax imposed by section 3301 by virtue of any other provision of law,” and added cl. (C). - § 3305(g): Pub. L. 86–778, § 531(b), substituted “neither wholly nor partially” for “not wholly”. ## § 3306: Definitions - § 3306(c): Pub. L. 86–778, § 532(a), included employment on or in connection with an American aircraft within cl. (B) of the opening provisions. - § 3306(c)(4): Pub. L. 86–778, § 532(b), excluded service performed on or in connection with an aircraft that is not an American aircraft. - § 3306(c)(6): Pub. L. 86–778, § 531(c), substituted “wholly or partially owned” for “wholly owned” in cl. (A), and inserted “which specifically refers to such section (or the corresponding section of prior law) in granting such exemption” in cl. (B). - § 3306(c)(8): Pub. L. 86–778, § 533, substituted “service performed in the employ of a religious, charitable, educational, or other organization described in section 501(c)(3) which is exempt from income tax under section 501(a)” for “service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation.” - § 3306(c)(10): Pub. L. 86–778, § 534, struck out provisions which excepted from definition of “employment” service in connection with the collection of dues or premiums for a fraternal beneficiary society, order, or association which is preformed away from the home office or is ritualistic service in connection with any such society, order, or association, service performed in the employ of an agricultural or horticultural organization described in section 501(c)(5) of this title, service performed in the employ of a voluntary employees’ beneficiary association providing for the payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries, and service performed in the employ of a school, college, or university, not exempt from income tax under section 501(a) of this title if such service is performed by a student who is enrolled and regularly attending classes. - § 3306(j): Pub. L. 86–778, § 543(a), included the Commonwealth of Puerto Rico and struck out “Hawaii” from definition of “State”, defined “United States”, and inserted provisions requiring an individual who is a citizen of the Commonwealth of Puerto Rico (but not otherwise a citizen of the United States) to be considered for purposes of this section, as a citizen of the United States. - § 3306(m): Pub. L. 86–778, § 532(c), included aircraft in heading and defined “American aircraft”. ## § 3308: Instrumentalities of the United States - Enacted 26 U.S.C. § 3308. ## § 3311: Short title ## § 6205: Special rules applicable to certain employment taxes - § 6205(a)(3): Pub. L. 86–778 added par. (3). ## § 6413: Special rules applicable to certain employment taxes - § 6413(a)(3): Pub. L. 86–778, § 103(r)(2), added par. (3). - § 6413(c)(2): Pub. L. 86–778, § 103(r) (3), (4), inserted governmental employees in Guam and American Samoa in heading, and added subpars. (D) and (E). ## § 7213: Unauthorized disclosure of information - § 7213(d), § 7213(e): Pub. L. 86–778 added subsec. (d) and redesignated former subsec. (d) as (e). ## § 7701: Definitions - § 7701(a)(12): Pub. L. 86–778 designated existing provisions as par. (A) and added par. (B).