# Pub. L. 89-97: changes to the Internal Revenue Code 1965-07-30, 79 Stat. 337. Source: . ## Legislative history - Bill: [H.R. 6675](https://www.congress.gov/bill/89th-congress/house-bill/6675) ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(m)(5)(A): Pub. L. 89–97, § 106(d)(2)(A), substituted “paragraph (7) of this subsection” for “section 213(g)(3)”. - § 72(m)(7): Pub. L. 89–97, § 106(d)(2)(B), added par. (7). - § 72(n): Pub. L. 89–97, § 106(d)(2)(C), substituted in subpars. (A)(iii) and (B)(iii) “subsection (m)(7)” for “section 213(g)(3)”. ## § 79: Group-term life insurance purchased for employees - § 79(b)(1): Pub. L. 89–97 substituted “section 72(m)(7)” for “paragraph (3) of section 213(g), determined without regard to paragraph (4) thereof”. ## § 213: Medical, dental, etc., expenses - § 213(a): Pub. L. 89–97, § 106(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “There shall be allowed as a deduction the following amounts of the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent (as defined in section 152): - § 213(b): Pub. L. 89–97, § 106(b), struck out second sentence which read: “The preceding sentence shall not apply to amounts paid for the care of— - § 213(c): Pub. L. 89–97, § 106(d)(1), struck out subsec. (c) relating to maximum limitations on medical and dental expenses under this section. - § 213(e): Pub. L. 89–97, § 106(c), struck out from par. (1)(A) “including amounts paid for accident or health insurance” after “function of the body”, added pars. (1)(C), (2), and (3), and renumbered former par. (2) as (4). - § 213: Pub. L. 89–97, § 106(d)(1), struck out provisions relating to maximum limitation if taxpayer or spouse has attained age 65 and is disabled, special rule, amounts taken into account, meaning of disabled, and determination of status. ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(d): Pub. L. 89–97 substituted “section 72(m)(7)” for “section 213(g)(3)”. ## § 451: General rule for taxable year of inclusion - § 451(c): Pub. L. 89–97 added subsec. (c). ## § 1401: Rate of tax - § 1401: Pub. L. 89–97, § 321(a), divided the total tax imposed under the entire section for each taxable year upon the self-employment income for such taxable year into two separate taxes by dividing the section into subsecs. (a) and (b), with subsec. (a) reflecting the tax for old-age, survivors, and disability insurance and subsec. (b) reflecting a separate tax for hospital insurance; reduced from 6.2 percent to 6.15 percent the rate of total tax imposed under the entire section for taxable years beginning after Dec. 31, 1965, and before Jan. 1, 1967 (resulting from a tax of 5.8 percent under subsec. (a) and 0.35 percent under subsec. (b)), increased from 6.2 percent to 6.4 percent the rate for taxable years beginning after Dec. 31, 1966, and before Jan. 1, 1968 (resulting from a tax of 5.9 percent under subsec. (a) and 0.50 percent under subsec. (b)), reduced from 6.9 percent to 6.4 percent the rate for taxable years beginning after Dec. 31, 1967, and before Jan. 1, 1969 (resulting from a tax of 5.9 percent under subsec. (a) and 0.50 percent under subsec. (b)), increased from 6.9 percent to 7.1 percent the rate for taxable years beginning after Dec. 31, 1968, and before Jan. 1, 1973 (resulting from a tax of 6.6 percent under subsec. (a) and 0.50 percent under subsec. (b)), from 6.9 percent to 7.55 percent the rate for taxable years beginning after Dec. 31, 1972, and before Jan. 1, 1976 (resulting from a tax of 7.0 percent under subsec. (a) and 0.55 percent under subsec. (b)), from 6.9 percent to 7.60 percent the rate for taxable years beginning after Dec. 31, 1975, and before Jan. 1, 1980 (resulting from a tax of 7.0 percent under subsec. (a) and 0.60 percent under subsec. (b)), from 6.9 percent to 7.70 percent the rate for taxable years beginning after Dec. 31, 1979, and before Jan. 1, 1987 (resulting from a tax of 7.0 percent under subsec. (a) and 0.70 percent under subsec. (b)), and from 6.9 percent to 7.80 percent the rate for taxable years beginning after Dec. 31, 1986 (resulting from a tax of 7.0 percent under subsec. (a) and 0.80 percent under subsec. (b)), and provided that the exclusion of employee representatives by section 1402(c)(3) should not apply for purposes of the tax imposed by subsec. (b). - § 1401(b): Pub. L. 89–97, § 111(c)(4), struck out provision that for purposes of the tax imposed by this subsection, the exclusion of employee representatives by section 1402(c)(3) shall not apply. ## § 1402: Definitions - § 1402(a): Pub. L. 89–97, § 312(b), substituted “2,400” for “$1,800” in cls. (i) to (iv) and “$1,600” for “$1,200” in cls. (ii) and (iv) of second sentence following par. (9), wherever appearing. - § 1402(b)(1): Pub. L. 89–97, § 320(b)(1)(C), inserted “and before 1966” after “1958” and substituted “and” for “or” after the semicolon. - § 1402(b)(1): Pub. L. 89–97, § 320(b)(1)(B), added subpar. (D). - § 1402(c): Pub. L. 89–97, §§ 311(b)(1), (2), 319(a), struck out from par. (5) “doctor of medicine, or” before and “; or the performance of such service by a partnership” after “Christian Science practitioner,” added par. (6), and consolidated into one sentence former last two sentences. - § 1402(e)(1): Pub. L. 89–97, § 311(b)(3)(A), substituted “extended to service described in subsection (c)(4) or (c)(5) performed by him” for “extended to service described in subsection (c)(4), or service described in subsection (c)(5) insofar as it relates to the performance of service by an individual in the exercise of his profession as a Christian Science practitioner, as the case may be performed by him”. - § 1402(e)(2): Pub. L. 89–97, § 311(b)(3)(B), substituted “(computed without regard to subsections (c)(4) and (c)(5) of $400 or more, any part of which was derived from the performance of service described in subsection (c)(4) or (c)(5)” for “(computed, in the case of an individual referred to in paragraph (1)(A), without regard to subsection (c)(4), and, in the case of an individual referred to in paragraph (1)(B), without regard to subsection (c)(5) insofar as it relates to the performance of service by an individual in the exercise of his profession as a Christian Science practitioner) of $400 or more, any part of which was derived from the performance of service described in subsection (c)(4), or from the performance of service described in subsection (c)(5) insofar as it relates to the performance of service by an individual in the exercise of his profession as a Christian Science practitioner, as the case may be”. - § 1402(e)(2): Pub. L. 89–97, § 341(a), substituted “his second taxable year ending after 1963” for “his second taxable year ending after 1962”. - § 1402(e)(3): Pub. L. 89–97, § 341(b), added subpar. (D). - § 1402(e): Pub. L. 89–97, § 331(a), extended applicability of section to earnings in taxable years beyond those ending before 1960, extended until April 15, 1966, the last date for filing a certificate by an individual and until Apr. 15, 1967, the last date for filing a supplemental certificate by an individual, provided for filing of the certificate on or before Apr. 15, 1967, if the individual died on or before April 15, 1966, and extended to Apr. 15, 1967, the date on or before which the tax under section 1401 had been paid, or the overpayment, including interest under section 6611, had been repaid. - § 1402(e): Pub. L. 89–97, § 331(a), struck out par. (6) which dealt with filing of certificates by fiduciaries or survivors on or before April 15, 1962. - § 1402(h): Pub. L. 89–97, § 319(c), added subsec. (h). ## § 3101: Rate of tax - § 3101: Pub. L. 89–97, § 321(b), divided the total tax imposed under the entire section upon income through a tax equal to percentages of wages into two separate taxes by dividing the section into subsecs. (a) and (b), with subsec. (a) reflecting the tax for old-age, survivors, and disability insurance and subsec. (b) reflecting the tax for hospital insurance, but, in the case of subsec. (b), without regard to the provisions of section 3121(b)(9) insofar as it relates to employees; increased from 4⅛ percent to 4.20 percent the rate of total tax imposed by the entire section upon wages received during calendar year 1966 (resulting from a tax of 3.85 percent under subsec. (a) and 0.35 percent under subsec. (b)), increased from 4⅛ percent to 4.40 percent the rate of total tax imposed by the entire section upon wages received during calendar year 1967 (resulting from a tax of 3.9 percent under subsec. (a) and 0.50 percent under subsec. (b)), reduced from 4⅝ percent to 4.40 percent the rate of total tax imposed by the entire section upon wages received during calendar year 1968, (resulting from a tax of 3.9 percent under subsec. (a) and 0.50 percent under subsec. (b)), increased from 4⅝ percent to 4.90 percent the rate for calendar years 1969, 1970, 1971, and 1972 (resulting from a tax of 4.4 percent under subsec. (a) and 0.50 percent under subsec. (b)), increased from 4⅝ percent to 5.40 percent the rate for calendar years 1973, 1974, and 1975, (resulting from a tax of 4.85 percent under subsec. (a) and 0.55 percent under subsec. (b)), increased from 4⅝ percent to 5.45 percent the rate for calendar years 1976, 1977, 1978, and 1979 (resulting from a tax of 4.85 percent under subsec. (a) and 0.60 percent under subsec. (b)), increased from 4⅝ percent to 5.55 percent the rate for calendar years 1980 through 1986 (resulting from a tax of 4.85 percent under subsec. (a) and 0.70 percent under subsec. (b)), and increased the rate for calendar years after Dec. 31, 1986, to 5.65 percent (resulting from a tax of 4.85 percent under subsec. (a) and 0.80 percent under subsec. (b)). - § 3101(b): Pub. L. 89–97, § 111(c)(5), struck out “, but without regard to the provisions of paragraph (9) thereof insofar as it relates to employees” after “as defined in section 3121(b)”. ## § 3102: Deduction of tax from wages - § 3102(a): Pub. L. 89–97, § 313(c)(2), inserted provisions at end of second sentence allowing a deduction from any wages of an employee of an amount equivalent to the tax on tips when an employer is furnished with a written statement of tips received by an employee. - § 3102(c): Pub. L. 89–97, § 313(c)(1), added subsec. (c). ## § 3111: Rate of tax - § 3111: Pub. L. 89–97, § 321(c), divided the total excise tax imposed under the entire section upon employers through a tax equal to percentages of wages paid by him into two separate taxes by dividing the section into subsecs. (a) and (b), with subsec. (a) reflecting the tax for old-age, survivors, and disability insurance, and subsec. (b) reflecting the tax for hospital insurance, but, in the case of subsec. (b), without regard to the provisions of section 3121(b)(9) insofar as it relates to employees; increased from 4⅛ percent to 4.20 percent the rate of total tax imposed by the entire section upon wages paid during calendar year 1966 (resulting from a tax of 3.85 percent under subsec. (a) and 0.35 percent under subsec. (b)), increased from 4⅛ percent to 4.40 percent the rate of total tax imposed by the entire section upon wages paid during calendar year 1967 (resulting from a tax of 3.9 percent under subsec. (a) and 0.50 percent under subsec. (b)), reduced from 4⅝ percent to 4.40 percent the rate of total tax imposed by the entire section upon wages paid during calendar year 1968 (resulting from a tax of 3.9 percent under subsec. (a) and 0.50 percent under subsec. (b)), increased from 4⅝ percent to 4.90 percent the rate of total tax imposed by the entire section upon wages paid during the calendar years 1969, 1970, 1971, and 1972 (resulting from a tax of 4.4 percent under subsec. (a) and 0.50 percent under subsec. (b)), increased from 4⅝ percent to 5.40 percent the rate for calendar years 1973, 1974, and 1975 (resulting from a tax of 4.85 percent under subsec. (a) and 0.55 percent under subsec. (b)), increased from 4⅝ percent to 5.45 percent the rate for calendar years 1976, 1977, 1978, and 1979 (resulting from a tax of 4.85 percent under subsec. (a) and 0.60 percent under subsec. (b)), increased from 4⅝ percent to 5.55 percent the rate for calendar years 1980 through 1986 (resulting from a tax of 4.85 percent under subsec. (a) and 0.70 percent under subsec. (b)), and increased the rate from 4⅝ percent to 5.65 percent for calendar years after December 31, 1986 (resulting from a tax of 4.85 percent under subsec. (a) and 0.80 percent under subsec. (b)). - § 3111(b): Pub. L. 89–97, § 111(c)(6), struck out “, but without regard to the provisions of paragraph (9) thereof insofar as it relates to employees” after “as defined in section 3121(b)”. ## § 3121: Definitions - § 3121(a)(1): Pub. L. 89–97, § 320(b)(2), substituted “$6,600” for “$4,800” wherever appearing. - § 3121(a)(12): Pub. L. 89–97, § 313(c)(3), added par. (12). - § 3121(b)(6)(C): Pub. L. 89–97, § 311(b)(4), inserted “, other than as a medical or dental intern or a medical or dental resident in training”. - § 3121(b)(7)(C): Pub. L. 89–97, § 317(b)(3), added subpar. (C). - § 3121(b)(13): Pub. L. 89–97, § 311(b)(5), struck out from the definition of employment the exclusion of service performed as an intern in the employ of a hospital by an individual who has completed a 4 years’ course in a medical school chartered or approved pursuant to State law. - § 3121(k): Pub. L. 89–97, § 316(a)(1), substituted “such date may not be earlier than the first day of the twentieth” for “, in the case of a certificate filed prior to January 1, 1960, such date may not be earlier than January 1, 1956, and in the case of a certificate filed after 1959, such date may not be earlier than the first day of the fourth”. - § 3121(k): Pub. L. 89–97, § 316(b), added subpar. (H). - § 3121(q): Pub. L. 89–97, § 313(c)(4), added subsec. (q). ## § 3122: Federal service - § 3122: Pub. L. 89–97 substituted “$6,600” for “$4,800”. ## § 3125: Returns in the case of governmental employees in States, Guam, American Samoa, and the District of Columbia - § 3125(a), § 3125(b): Pub. L. 89–97, § 320(b)(4), substituted “$6,600” for “$4,800”. - § 3125(c): Pub. L. 89–97, § 317(c)(1), added subsec. (c) and inserted reference to District of Columbia in section catchline. ## § 3201: Rate of tax - § 3201: Pub. L. 89–97 substituted “the rate of the tax imposed with respect to wages by section 3101(a) at such time exceeds 2¾ percent (the rate provided by paragraph (2) of section 3101 as amended by the Social Security Amendments of 1956)” for “the rate of the tax imposed with respect to wages by section 3101 at such time exceeds the rate provided by paragraph (2) of such section 3101 as amended by the Social Security Amendments of 1956” and inserted “plus the rate imposed by section 3101(b)” after “section 3101(a)”, respectively. ## § 3211: Rate of tax - § 3211: Pub. L. 89–97 substituted “the rate of the tax imposed with respect to wages by section 3101(a) at such time exceeds 2¾ percent (the rate provided by paragraph (2) of section 3101 as amended by the Social Security Amendments of 1956)” for “the rate of the tax imposed with respect to wages by section 3101 at such time exceeds the rate provided by paragraph (2) of such section 3101 as amended by the Social Security Amendments of 1956” and inserted “plus the rate imposed by section 3101(b)” after “section 3101(a)”, respectively. ## § 3221: Rate of tax - § 3221(b): Pub. L. 89–97 substituted “the rate of the tax imposed with respect to wages by section 3111(a) at such time exceeds 2¾ percent (the rate provided by paragraph (2) of section 3111 as amended by the Social Security Amendments of 1956)” for “the rate of the tax imposed with respect to wages by section 3111 at such time exceeds the rate provided by paragraph (2) of such section 3111 as amended by the Social Security Amendments of 1956” and inserted “plus the rate imposed by section 3111(b)” after “section 3111(a)”, respectively. ## § 3401: Definitions - § 3401(a)(16): Pub. L. 89–97, § 313(d)(2), added par. (16). - § 3401(f): Pub. L. 89–97, § 313(d)(1), added subsec. (f). ## § 3402: Income tax collected at source - § 3402(a): Pub. L. 89–97, § 313(d)(3), substituted “subsections (j) and (k)” for “subsection (j)”. - § 3402(h)(3): Pub. L. 89–97, § 313(d)(4), inserted “(and, in the case of tips referred to in subsection (k), within 30 days thereafter)” after “quarter” first place it appears. - § 3402(k): Pub. L. 89–97, § 313(d)(5), added subsec. (k). ## § 6051: Receipts for employees - § 6051(a): Pub. L. 89–97, § 313(e)(1), inserted last sentence providing for inclusion of tips received by an employee in the course of his employment. - § 6051(c): Pub. L. 89–97, § 107, required the statements to show the proportion of the total amount withheld as tax under section 3101 which is for financing the cost of hospital insurance benefits under part A of title XVIII of the Social Security Act. ## § 6053: Reporting of tips - Enacted 26 U.S.C. § 6053. ## § 6205: Special rules applicable to certain employment taxes - § 6205(a)(4): Pub. L. 89–97 added par. (4). ## § 6413: Special rules applicable to certain employment taxes - § 6413(a)(4): Pub. L. 89–97, § 317(e), added par. (4). - § 6413(c)(1): Pub. L. 89–97, § 320(b)(5), inserted “and prior to the calendar year 1966” after “the calendar year 1958”, “or (C) during any calendar year after the calendar year 1965, the wages received by him during such year exceed $6,600” after “exceed $4,800,”, and “and before 1966, or which exceeds the tax with respect to the first $6,600 of such wages received in such calendar year after 1965” before the period at end of par. - § 6413(c)(2)(A): Pub. L. 89–97, § 320(b)(6), substituted “$4,800 for the calendar year 1959, 1960, 1961, 1962, 1963, 1964, or 1965, or $6,600 for any calendar year after 1965” for “or $4,800 for any calendar year after 1958”. - § 6413(c)(2)(F): Pub. L. 89–97, § 317(f)(1), added subpar. (F) and inserted reference to the District of Columbia in heading. ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(b): Pub. L. 89–97, § 313(e)(2)(B), inserted “and in the case of each failure to furnish a statement required by section 6053(b) (relating to statements furnished by employers with respect to tips),” after “income tax withheld),”. - § 6652(c): Pub. L. 89–97, § 313(e)(3), added subsec. (c). Former subsec. (c) redesignated (d). - § 6652(d): Pub. L. 89–97, § 313(e)(3), redesignated former subsec. (c) as (d). ## § 6674: Fraudulent statement or failure to furnish statement to employee - § 6674: Pub. L. 89–97 substituted “6051 or 6053(b)” for “6051” wherever appearing.