SHORT TITLE; ETC.

SECTION 1. SHORT TITLE; ETC. (a) Short Title.—This Act may be cited as the “Technical and Miscellaneous Revenue Act of 1988”. (b) Definitions.—For purposes of this Act— (1) 1986 code.—The term “1986 Code” means the Internal Revenue Code of 1986. (2) Reform act.—Except where incompatible with the intent, the term “Reform Act” means the Tax Reform Act of 1986. (c) Clerical Amendment.—Paragraph (29) of section 7701(a) of the 1986 Code is amended by striking out “of 1954” and inserting in lieu thereof “of 1986”. (d) Table of Contents.— TITLE I— TECHNICAL CORRECTIONS TO TAX REFORM ACT OF 1986 Sec. 1001. Amendments related to title I of the Reform Act. Sec. 1002. Amendments related to title II of the Reform Act. Sec. 1003 , Amendments related to title III of the Reform Act. Sec. 1004. Amendments related to title IV of the Reform Act Sec. 1005. Amendments related to title V of the Reform Act. Sec. 1006. Amendments related to title VI of the Reform Act Sec. 1007. Amendments related to title VII of the Reform Act Sec. 1008. Amendments related to title VIII of the Reform Act Sec. 1009. Amendments related to title IX of the Reform Act Sec. 1010. Amendments related to title X of the Reform Act. Sec. 1011. Amendments related to parts I and II of subtitle A of title XI of the Reform Act. Sec. 1011 A. Amendments related to parts III and IV of subtitle A of title XI of the Reform Act Sec. 1011B Amendments related to subtitles B and C of title XI of the Reform Act. Sec. 1012. Amendments related to title XII of the Reform Act Sec. 1013. Amendments related to title XIII of the Reform Act Sec. 1014. Amendments related to title XIV of the Reform Act. Sec. 1015. Amendments related to title XV of the Reform Act. Sec. 1016. Amendments related to title XVI of the Reform Act Sec. 1017. Amendments related to title XVII of the Reform Act Sec. 1018. Amendments related to title XVIII of the Reform Act Sec. 1019. Effective date. TITLE II— AMENDMENTS RELATED TO TAX PROVISIONS IN OTHER LEGISLATION Sec. 2001. Amendments related to Superfund Revenue Act of 1986. Sec. 2002. Amendments related to Harbor Maintenance Revenue Act of 1986 Sec. 2003. Amendments related to Omnibus Budget Reconciliation Act of 1986. Sec. 2004. Amendments related to the Revenue Act of 1987. Sec. 2005. Amendments related to Pension Protection Act and full funding limitations. Sec. 2006. Amendments related to section 9201 of the Omnibus Budget Reconciliation Act of 1987. 102 STAT. 3343 TITLE in— ADDITIONAL SIMPLIFICATION AND CLARIFICATION PROVISIONS Subtitle A— Diesel Fuel Excise Tax Collection and Exemption Procedures Sec. 3001. Tax-free purchases of certain fuels. Sec. 3002. Expedited refund for certain fuels used in nontaxable uses. Sec. 3003. Marine retailers treated as producers. Subtitle B— Health Care Continuation Rules Sec. 3011. Failure to satisfy continuation requirements of group health plans. Subtitle C— Employee Benefit Nondiscrimination Rules Sec. 3021. Modifications to discrimination rules applicable to certain employee benefit plans. Subtitle D— Estate and Gift Taxes Sec. 3031. Estate tax valuation freezes Subtitle E— Indian Fishing Rights Sec. 3041. Federal tax treatment of income derived by Indians from exercise of fishing rights secured by treaty, etc. Sec. 3042. State tax treatment of income derived by Indians from exercise of fishing rights secured by treaty, etc. Sec. 3043. Conforming amendments relating to old-age, survivors, and disability insurance program. Sec. 3044. Effective date; no inference created. TITLE IV— EXTENSIONS AND MODIFICATIONS OF EXPIRING TAX PROVISIONS Sec. 4001. Extension and modification of exclusion for employer-provided education assistance. Sec. 4002. Extension and modification of exclusion of amounts received under group legal services plans. Sec. 4003. Carryover of post-1987 low-income housing credit dollar amounts permitted. Sec. 4004. Simplification of rule where partnership holds qualified low-income building. Sec. 4005. Provisions relating to mortgage revenue bonds and mortgage credit certificates. Sec. 4006. Extension of certain business energy credits. Sec. 4007. Extension of credit for increasing research activities. Sec. 4008. Denial of deduction for 50 percent of amounts allowed as a research credit. Sec. 4009. Allocation of research and experimental expenditures. Sec. 4010. Extension and modification of targeted jobs credit Sec. 4011. Treatment of publicly offered regulated investment companies under 2-percent floor. Sec. 4012. Extension and modifications of provisions relating to financial institutions. TITLE V— REVENUE INCREASE PROVISIONS Subtitle A— Corporate Estimated Tax Provisions Sec. 5001. Corporate estimated tax payments. Subtitle B— Insurance Provisions Sec. 5011. Limitation on unreasonable mortality and other expense charges under section 7702. Sec. 5012. Treatment of modified endowment contracts. Sec. 5013. Valuation of group-term life insurance. Sec. 5014. Study Subtitle C— Loss Transfer Rules for Alaska Native Corporations Sec. 5021. Repeal of rules permitting loss transfers by Alaska Native Corporations. Subtitle D— Estate and Gift Tax Provisions Sec. 5031. Valuation tables. Sec. 5032 Rate schedule for tax on estates of nonresidents not citizens. 102 STAT. 3344 Sec. 5033. Disallowance of marital deduction where spouse is not citizen of United States. Subtitle E— Long-Term Contract Provisions Sec. 5041. Long-term contract provisions. Subtitle F— Tax-Exempt Bond Provisions Sec. 5051. Treatment of certain pooled financing bonds. Sec. 5052. Treasury regulations relating to student loan bonds. Sec. 5053. Restrictions on bonds used to provide residential rental property for family units. Subtitle G— Excise Tax Provisions Sec. 5061. Imposition of excise tax on manufacture or importation of pipe tobacco. Sec. 5062. Modification of distilled spirits tax credit for flavors content. Subtitle H— Other Revenue Increase Provisions Sec. 5071. Increase in penalty for bad checks. Sec. 5072. Time for payment of tax on reversion of pension plan assets. Sec. 5073. Denial of deduction for certain residential telephone service. Sec. 5074. Partnership reporting of unrelated business taxable income. Sec. 5075. Options subject to wash sale rules. Sec. 5076. Interest charge on installment sales of certain property. Sec. 5077. Applications of net operating loss rules to stock acquired by an employee stock ownership plan. TITLE VI— OTHER SUBSTANTIVE REVENUE PROVISIONS Subtitle A— Provisions Relating to Individuals Sec. 6001. Treatment of certain amounts paid to or for the benefit of an institution of higher education. Sec. 6002. Nonrecognition of gain where one spouse dies before occupying new residence. Sec. 6003. Meals on certain vessels and offshore oil platforms exempt from 80 percent limitation on deduction for meals. Sec. 6004. Treatment of certain innocent spouses. Sec. 6005. Interim treatment of certain amounts awarded to Christa McAuliffe Fellows. Sec. 6006. Election to claim certain unearned income of child on parent’s return. Sec. 6007. Jury duty pay remitted to an individual’s employer allowed as a deduction in computing gross income. Sec. 6008. Business use of automobiles by rural mail carriers. Sec. 6009. Exclusion from gross income for income from United States savings bonds used to pay tuition and fees. Sec. 6010. Modification of additional exemption for student dependents. Sec. 6011. Principal residence capital gains exclusion. Subtitle B— Provisions Relating to Accounting and Agriculture Sec. 6026. Amendments to uniform capitalization rules. Sec. 6027. Treatment of single purpose agricultural or horticultural structures. Sec. 6028. Treatment of property used in the farming business. Sec. 6029. Treatment of certain trees. Sec. 6030. One-year deferral of proceeds from live-stock sold on account of drought. Sec. 6031. Certain repledges permitted. Sec. 6032. Treatment of indirect holdings through trusts under section 448 of the 1986 Code. Sec. 6033. Disaster assistance act payments included in special rule for taxable year of inclusion. Subtitle C— Pensions and Employee Benefits Sec. 6051. Provisions relating to benefits under discriminatory plans. Sec. 6052. Modifications of discrimination rules applicable to certain annuity contracts. Sec. 6053. Required distribution beginning date for governmental and church plans. Sec. 6054. Section 415 limitation for State and local plans. Sec. 6055. Minimum participation standards. Sec. 6056 , Study of effect of minimum participation rule on employers required to provide certain retirement benefits. Sec. 6057. Prohibition on collectibles not to include State coins. Sec. 6058. Application of fundings rules to multiple employer plans. Sec. 6059. Application of section 415 limitations to police and firefighters. 102 STAT. 3345 Sec. 6060. Excise tax on disposition of stock by an ESOP not to apply to certain forced dispositions. Sec. 6061. Loans to acquire employer securities. Sec. 6062. Effective date of section 415 limitations of collectively bargained agreements. Sec. 6063. Treatment of pre-1989 elections for dependent care assistance under cafeteria plans. Sec. 6064. Modifications to section 457. Sec. 6065. Exception for governmental plans. Sec. 6066. Air transportation of cargo and of passengers treated as same service for purposes of fringe benefits inclusion. Sec. 6067. Special rule for applying spinoff rules to bridge banks. Sec. 6068. income averaging allowed to lump-sum distributions of alternate payees. Sec. 6069. Increase in employer reversion tax. Sec. 6070. Definition of part-time employee for purposes of section 89. Sec. 6071. Rural telephone cooperatives permitted to have qualified cash or deferred arrangements. Sec. 6072. Study of treatment of certain technical personnel. Subtitle D— Insurance Provisions Sec. 6076. Treatment of certain workers’ compensation funds. Sec. 6077. Special estimated tax payments. Sec. 6078. Church self-funded death benefit plans treated as life insurance. Sec. 6079. Treatment of structured settlements. Sec. 6080. Variable contracts invested in government securities permitted. Subtitle E— Excise Tax Provisions Sec. 6101. Authority to prescribe tolerances for the volume of wine in bottles for purposes of the excise tax on wine. Sec. 6102. Wholesale distributors to administer claims for refund of gasoline tax. Sec. 6103. Authority to exempt articles from excise tax on heavy trucks and trailers where benefit accrues to United States. Sec. 6104. Application of reduced gasoline tax rate to blenders. Sec. 6105. Certain educational institutions exempt from user fees on permits for industrial use of specially denatured distilled spirits. Sec. 6106. Small procedures exempt from occupational tax on distilled spirits plants. Sec. 6107. Quarterly payment of archery excise tax. Sec. 6108. Extension of time for enacting authorising legislation relating to the oil spill liability trust fund. Sec. 6109. Donated cargo exempt from harbor maintenance tax. Sec. 6110. Relay cargo. Sec. 6111. Clarification of meaning of manufacture under truck excise tax. Subtitle F— Foreign Provisions Sec. 6126. Dual resident companies. Sec. 6127. Election to be treated as qualified electing fund to be made by taxpayer. Sec 6128. Treatment of certain United States affiliate obligations. Sec. 6129. Treatment of certain insurance branches of foreign corporations. Sec. 6130. Treatment of certain instruments under foreign currency rules. Sec. 6131. Treatment of insurance companies under chain deficit rule. Sec. 6132. Virgin Islands treated as qualified Caribbean basin country Sec. 6133. Treatment of certain United States obligations held by possession banks Sec. 6134. Treatment of certain gambling winnings received by nonresident aliens. Sec. 6135. Election to be treated as domestic corporation. Sec. 6136. Tax exemption for ENJEBI community trust fund. Sec. 6137. Application of section 912 to judicial employees. Sec. 6138. Study of definition of United States resident. Sec. 6139. Sunset of treaty provisions. Sec. 6140. Treatment of certain awards by the district court of Guam. Subtitle G— Estate Tax Provisions Sec. 6151. Treatment of certain rents under section 2032A. Sec. 6152. Clarification of treatment of joint and survivor annuities under Qtip rules. Subtitle H— Tax-Exempt Bond Provisions Sec. 6176. Clarification of small issue bond definition of manufacturing facility. Sec. 6177. Rules applicable to tax and revenue anticipation bonds. Sec. 6178. Amendment to mortgage bond purchase price regulations. 102 STAT. 3346 Sec. 6179. Application of security interest test to bond financing of hazardous waste clean-up activities. Sec. 6180. Tax-exempt financing for certain rail facilities. Sec. 6181. Rules relating to rebate on earnings on bona fide debt service fund. Sec. 6182. Bonds issued by volunteer fire departments. Sec. 6183. Disregard of pooled financings in determination of qualification for small issuer exception. Subtitle I— Provisions Relating to Exempt Organizations Sec. 6201. Certain games of chance not treated as unrelated trade or business. Sec. 6202. Purchase of insurance by cooperative hospital service organizations. Sec. 6203. Cancellation of certain debts originated by or guaranteed by the United States not taken into account in determining tax exempt status of certain organizations. Sec. 6204. Determination of operating foundation status for certain purposes. Subtitle J— Taxpayer Rights and Procedures Sec. 6226. Short title. Part I— Taxpayer Rights Sec. 6227. Disclosure of rights of taxpayers. Sec. 6228. Procedures involving taxpayer interviews. Sec. 6229. Taxpayers may rely on written advice of Internal Revenue Service. Sec. 6230. Taxpayer assistance orders. Sec. 6231. Basis for evaluation of Internal Revenue Service employees. Sec. 6232. Procedures relating to Internal Revenue Service regulations. Sec. 6233. Content of tax due, deficiency, and other notices. Sec. 6234. Installment payment of tax liability. Sec. 6235. Assistant Commissioner for taxpayer services. Part II— Levy and Lien Provisions Sec. 6236. Levy and distraint. Sec. 6237. Review of jeopardy levy and assessment procedures. Sec. 6238. Administrative appeal of liens. Part in— Proceedings by Taxpayers Sec. 6239. Awarding costs and certain fees in administrative and court proceedings. Sec. 6240. Civil cause of action for damages sustained due to failure to release lien. Sec. 6241. Civil cause of action for damages sustained due to certain unauthorized actions by internal revenue service. Sec. 6242. Assessable penalty for improper disclosure or use of information by preparers of returns. Part IV— Tax Court Jurisdiction Sec. 6243. Jurisdiction to restrain certain premature assessments. Sec. 6244. Jurisdiction to enforce overpayment determinations. Sec. 6245. Jurisdiction to review certain sales of seized property. Sec. 6246. Jurisdiction to redetermine interest on deficiencies. Sec. 6247. Jurisdiction to modify decisions in certain estate tax cases. Subtitle K— Other Administrative Provisions Sec. 6251. Exchange of information. Sec. 6252. Provisions relating to previously required studies. Sec. 6253. Repeal of secretarial authority to prescribe class lives. Sec. 6254. Amendments related to Crude Oil Windfall Profit Tax Act of 1980. Subtitle L— Provisions Relating to Corporations and Personal Holding Companies Sec. 6276. Authority to pay refunds to certain fiduciaries of insolvent members of affiliated groups. Sec. 6277. Application of net operating loss limitations to bankruptcy reorganizations. Sec. 6278. Application of section 7503 of 1986 Code for purposes of section 10222(b) of Revenue Act of 1987. Sec. 6279. Interest earned by brokers or dealers not taken into account as personal bolding company income. Sec. 6280. Treatment of certain bank holding companies. Sec. 6281. Authority to waive appraisal requirement for certain charitable contributions of property. Sec. 6282 Distributions by cooperative housing corporations. 102 STAT. 3347 Subtitle M— Miscellaneous Provisions Sec. 6301. Repeal of limit on long-term bonds, Sec. 6302. One-year extension of credit for producing fuel from a nonconvention all source. Sec. 6303. Certain discharge of debt income not included in adjusted book income. Sec. 6304. Nonconventiona! fuels credit Sec. 6305. Treatment of certain family services providers. TITLE VII— RAILROAD UNEMPLOYMENT AND RETIREMENT PROGRAMS Sec. 7001. Short title. Sec. 7002. References to Railroad Unemployment Insurance Act Subtitle A— Financing Provisions Sec. 7101 , Amendments relating to definition of “compensation”. Sec. 7102. Contribution adjustments. Sec. 7103. Administrative expenses. Sec. 7104. Notification to employer. Sec. 7105. Annual report. Sec. 7106. Amendments relating to railroad unemployment repayment tax Sec. 7107. GAO study of fraud and payment errors. Sec. 7108. One-year extension of time limit for filing report by Commission on Rail-road Retirement Reform. Subtitle B— Benefit and Other Adjustments Sec. 7201. Waiting period for benefits and benefit increases. Sec. 7202. Qualifying condition- Sec. 7203. Increase in maximum permitted subsidiary remuneration. Subtitle C— Retirement Act Amendments Sec. 7301. Additional lump sum payment in certain cases. Sec. 7302. Deletion of last person service as a disqualification. Sec. 7303. Earnings of disability annuitants. Sec. 7304. Allowance of credit for military service. TITLE VIII— AMENDMENTS RELATING TO SOCIAL SECURITY ACT PROGRAMS Subtitle A— Old-Age, Survivors, and Disability Insurance and Related Provisions Sec. 8001. Interim disability benefits in cases of delayed final decisions. Sec. 8002. Application of earnings test in year of individual’s death. Sec. 8003. Phaseout of reduction in windfall benefits. Sec. 8004 Denial of benefits to individuals deported or ordered deported on the basis of associations with the Nazi Government of Germany during World War II. Sec. 8005. Modifications in the term of office of public members of the board of trustees of the social security trust funds. Sec. 8006. Continuation of disability benefits during appeal. Sec. 8007 Exemption from social security for employers and employees who are both members of certain religious faiths. Sec. 8008. Blood donor locator service. Sec 8009. Requirement of social security account number as a condition for receipt of social security benefits. Sec 8010. Substitution of certificate of election for application to establish entitlement for certain reduced widow’s and widower’s benefits. Sec. 8011. Calculation of the windfall benefit guarantee amount based on pension amounts payable in the first month of concurrent entitlement rather than concurrent eligibility. Sec. 8012 Consolidation of reports on continuing disability reviews. Sec 8013. Exclusion of employees separated from employment before January 1, 1989, from rule including as wages taxable under FICA certain payments for group-term life insurance. Sec 8014. Clarification of applicability of Government pension offset to certain Federal employees. Sec. 8015. Amendments to rules governing social security coverage of Federal employment. Sec. 8016. Technical corrections in OASDI provisions. Sec. 8017. Certain cash wages paid tn seasonal agricultural laborers excluded from OASDI coverage. Sec. 8018 Certain employer pension contributions not included in FICA wage base. 102 STAT. 3348 Sec. 8019. Reports regarding certain disability-related benefits. Subtitle B— Public Assistance Provisions Sec. 8101. Extension of prohibition against implementation of certain proposed regulations. Sec. 8102. Review of policy governing use of AFDC funds to meet emergency needs of families eligible for AFDC through emergency assistance or special needs payments; report to Congress. Sec. 8103. Disregard of certain housing assistance payments in determining income and resources under SSI program. Sec. 8104. Foster care independent living initiatives. Sec. 8105. Technical corrections to Family Support Act of 1988. Subtitle C— National Commission on Children Sec. 8201. Delay in reporting date for National Commission on Children. Subtitle D— Unemployment Compensation Sec. 8301. Self-employment demonstration project. Subtitle E— Medicare and Medicaid Part I— Provisions Relating to Part A of Medicare Sec. 8401. Extension of disproportionate share provisions. Sec. 8402. Maintenance of had debt collection policy. Sec. 8403. Application of wage indices in case of areas affected by section 4005(a)(1) of OBRA of 1987. Sec. 8404. Demonstration projects with respect to chronic ventilator-dependent units in hospitals. Sec. 8405. Election of personnel policy for PROP AC employees. Part II— Relating to Parts A and B of Medicare Program Sec. 8411. Elimination of waivers of 50:50 rule for HMO enrollment. Sec. 8412. Increase in authorization for the patient outcome assessment research program. Sec. 8413. Delay in reporting deadline for the United States Bipartisan Commission on Comprehensive Health Care. Part III— Provisions Relating to Part B of Medicare Sec. 8421. Budget neutrality adjustment for certified registered nurse anesthetists. Sec. 8422. Coverage of psychologists’ services when provided off-site as part of a treatment plan. Sec. 8423. Nonapplication of certain requirements to physical therapists in independent practice. Sec. 8424. Functions of physician payment review commission. Sec. 8425. Moratorium on laboratory payment demonstration extended. Sec. 8426. Study of trip fees for clinical laboratories. Part IV— Provisions Relating to Medicaid Sec. 8431. Delay in issuance of final regulations concerning the use of voluntary contributions and provider-paid taxes by States to receive Federal matching funds. Sec. 8432. Medicaid long-term care waiver program. Sec. 8433. Extension of time period for submission of correction and reduction plans for certain intermediate care facilities for the mentally retarded. Sec. 8434. Correction relating to medicare buy-in. Sec. 8435. Clarification of Federal financial participation for case-management services. Sec. 8436. Determination of premium amounts for extended medical assistance. TITLE IX—TRADE PROVISIONS Sec. 9001. Trade technical amendments. Sec. 9002. Foreign trade zones. Sec. 9003. Report on the small business innovation research program. Sec. 9004. Extension of certain existing suspensions of duty and duty reductions. TITLE XMANASSAS NATIONAL BATTLEFIELD PARK Sec. 10001. Short title. Sec. 10002. Addition to Manassas National Battlefield Park. Sec. 10003. Visual protection. Sec. 10004. Highway relocation.