,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #daff  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #bg1 #bjag,mr4
 ,smi? ( ,nebraska introduc$ ! foll[+   
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to all[  
all employees ( a firm to be c\nt$ z a  
s+le %>ehold] t[>d ! %>ehold] limit ( an
 ,s corporation4  #a4 ,employees ( a    
firm c\nt$ z a s+le %>ehold] t[>d       
%>ehold] limit ( ,s corporation  7a7 ,9 
g5]al ,subsection 7c7 ( section #acfa ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by add+ at ! end ! foll[+3  7#g7  
,employees treat$ z "o %>ehold]  7,a7 ,9
 g5]al ,= purposes ( subsection         
7b77#a77;,a71 9 ! case ( a corporation  
:i* has only employee %>ehold]s1 !re    
%all be treat$ z "o %>ehold] all        
employees 7& _! e/ates7 ( a corporation 
& any :olly own$ bus9ess entities 7z    
det]m9$ by ! ,secret>y7 ( su*           
corporation4  7,b7 ,employee def9$ ,=   
purposes ( ?is p>agraph-- 7i7 ,9 g5]al  

,! t]m 8employee0 means any individual  
7:e!r a resid5t ali51 nonresid5t ali51  
or citiz57 t w\ld be an employee        
describ$ "u section #caba7;d7 7#a7 or   
7#b74  7ii7 ,c]ta9 det]m9ations )       
respect to sp\se disreg>d$ ,9 mak+ !    
det]m9ation :e!r a corporation has only 
employee %>ehold]s1 any curr5t own]%ip 9
 /ock by a sp\se ( an employee by reason
 ( a ,/ate community prop]ty law or o!r 
simil> ,f$]al1 ,/ate1 or =eign c\ntry   
law1 %all be disreg>d$4  4  7b7         
,exception to nonresid5t %>ehold]       
prohibition ,subp>agraph 7,c7 ( section 
#acfa7;b77#a7 ( su* ,code is am5d$ to   
read z foll[s3  7,c7 h a nonresid5t ali5
 z a %>ehold] 7except = a nonresid5t    
ali5 t is a %>ehold] by reason (        
subsection 7c77#g7 or a nonresid5t ali5 
sp\se ( an employee :i* is a %>ehold] 9 
a corporation describ$ 9 subsection     
7c77#g771 &  4  7c7 ,)hold+ ) respect to
 nonresid5t ali5s ,section #acgc ( su*  
,code is am5d$ by add+ at ! end !       
foll[+3  7c7 ,)hold+ ) respect to       

nonresid5t ali5s ,! pr9ciples ( sections
 #adda & #addf %all apply to income     
allocable to1 & di/ributions to1 a      
nonresid5t ali5 %>ehold] ( an ,s        
corporation 7all[$ by reason ( section  
#acfa7;b77#a77;,c774 ,! ,secret>y may   
prescribe regulations to c>ry out !     
purposes ( ?is subsection4  4  7d7      
,def9+ items ( income = purposes (      
)hold+ tax on nonresid5t ali5s          
,subsection 7b7 ( section #adda ( su*   
,code is am5d$ by ins]t+ be=e ! p]iod at
 ! end ( ! fir/ s5t5ce ! foll[+3 1 & any
 items ( income describ$ 9 section      
#acff7;a7 allocable to a nonresid5t ali5
 t is an ,s ,corporation %>ehold] by    
reason ( section #acfa7;c77#g74  7e7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4