EFFECTIVE DATE OF CHANGES IN THE EXCLUSION FOR SICK PAY.

SEC. 301. EFFECTIVE DATE OF CHANGES IN THE EXCLUSION FOR SICK PAY. (a) In General.—Section 505 of the Tax Reform Act of 1976 (relating to changes in exclusions for sick pay and certain military, etc., disability pensions; certain disability income) is amended by adding at the end thereof the following new subsection: “(f) Effective Date for Subsection (a).—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1976.”. (b) Conforming Amendments.— (1) Paragraph (1) of section 505(c) of such Act is amended by striking out “1976” and inserting in lieu thereof “1977”. (2) Paragraph (3) of such section 505(c) is amended by inserting “or January 1, 1977,” after “January 1, 1976,”. (3) Paragraph (1) of section 505(d) of such Act is amended by striking out “1976” and inserting in lieu thereof “1977”. (4) Paragraph (2) of such section 505(d) is amended by inserting “or December 31, 1976,” after “December 31, 1975,”. (5) Subsection (d) of section 505 of such Act is amended by striking out “this subsection” and inserting in lieu thereof “such section 105(d)”. (c) Revocation of Election.—Any election made under section 105(d)(7) of the Internal Revenue Code of 1954 or under section 505(d) of the Tax Reform Act of 1976 for a taxable year beginning in 1976 may be revoked (in such manner as may be prescribed by regulations) at any time before the expiration of the period for assessing a deficiency with respect to such taxable year (determined without regard to subsection (d) of this section). 91 STAT. 152 (d) Period for Assessing Deficiency.—In the case of any revocation made under subsection (c), the period for assessing a deficiency with respect to any taxable year affected by the revocation shall not expire before the date which is 1 year after the date of the making of the revocation, and, notwithstanding any law or rule of law, such deficiency, to the extent attributable to such revocation, may be assessed at any time during such 1-year period. (e) Effective Date.—The amendments made by this section shall take effect on October 4, 1976, but shall not apply— (1) with respect to any taxpayer who makes or has made an election under section 105(d)(7) of the Internal Revenue Code of 1954 or under section 505(d) of the Tax Reform Act of 1976 (as such sections were in effect before the enactment of this Act) for a taxable year beginning in 1976, if such election is not revoked under subsection (c) of this section, and (2) with respect to any taxpayer (other than a taxpayer described in paragraph (1)) who has an annuity starting date at the beginning of a taxable year beginning in 1976 by reason of the amendments made by section 505 of the Tax Reform Act of 1976 (as in effect before the enactment of this Act), unless such person elects (in such manner as the Secretary of the Treasury or his delegate may by regulations prescribe) to have such amendments apply.