DEFINITION OF EMPLOYEE.

SEC. 102. DEFINITION OF EMPLOYEE. (a) Section 3306 (i) of the Internal Revenue Code of 1954 is amended to read as follows: “(i) Employee.— For purposes of this chapter, the term ‘employee’ has the meaning assigned to such term by section 3121 (d), except that subparagraphs (B) and (C) of paragraph (3) shall not apply.” (b) Section 1563(f)(1) of such Code (relating to surtax exemption in case of certain controlled corporations) is amended by striking out “in section 3306(i)” and inserting in lieu thereof “by paragraphs (1) and (2) of section 3121(d)”. (c) The amendment made by subsection (a) shall apply with respect to remuneration paid after December 31, 1971, for services performed after such date.