REVISION OF TAX CODE - EMPLOYEE RELOCATION COUNCIL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00314R000600010035-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: August 21, 2000
• Sequence Number: 35
• Publication Date: September 8, 1976
• Content Type: MF

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MEMORANDUM TO THE FILE
FROM: A/ALS - Walter F. Weiss
SUBJECT: Revision of Tax Code - Employee Relocation
Council
Peter J. DiDomenico, Jr. of the Employee Relocation Council
met with Erie Curtis of A/ALS September 6. DiDomenico gave
him the attached tax code revision which he is discussing
with the Office of Tax Policy of Treasury. He claimed
Treasury is receptive but they asked ER.C to include some
time limit. ERC is considering five years as a reasonable
time period.
The ERC proposal is something that State - AID - USIA
management have sought for years as well as AFSA.
State Dept. declassification & release instructions on file
Approved For Release 2001/09/03 CIA-RDP81-00314R000600010035-2
 Approved For ReIse 2001/09/03 : CIA-RDP81-00314R01W00010035-2
EXPLANATION OF PROPOSED AMENDMENT
OF SECTION 1034(a)
The proposal would amend.?1034 of the Code dealing
with the non-recognition of gain on the sale or exchange of
a residence to provide that the 18-month period for reinvest-
ing the sales proceeds in a new residence will be tolled dur-
ing the time an individual is employed on a permanent basis
outside of the U. S. Many employers actively discourage trans-
ferred employees from buying homes abroad because of the prob-
lems dealing with home-ownership and disposal thereof. Conse-
quently, it is very difficult for transferred employees who are
sent abroad to comply with the 18-month period set forth in
present ?1034.
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333 Borth M:thiy.n AY.nui, c nc.M Nhnos 60609
PETER J. DI DOMENICO, JR.
DIRECTOR OF MEMBERSHIP SERVICES
Approved For Release 2001/09/03 : CIA-RDP81-00314R000600010035-2
 Approved For RelWe 2001/09/03 : CIA-RDP81-00314R00GS00010035-2
PROPOSED AMENDMENT OF SECTION 1034(a)
DEALING WITH NON-RECOGNITION OF GAIN
ON SALE OR EXCHANGE OF RESIDENCE
Section 1034(a) is-amended by inserting at the end
thereof the following:
"The running of the eighteen-month period after
the date of the sale of the old residence shall be
suspended for any period during which the taxpayer's
principal place of work is located outside the
United States."
? I
Approved For Release 2001/09/03 : CIA-RDP81-00314R000600010035-2
 Approved For Release 2001/09/03-rCIA-RDP81-00314R000600010035-2
-win ASSIFIFII 14TERNAL
.CON" 'E--'1TIAL J SECRET
ROUTING AND ' RECORD SHEET
SUBJECT: (Optional)
TO: (Officer designation, room number, and.
building)
Director of Personnel
5 E 58 Hqs 13 SEP t47t
OFFICER'S COMMENTS (Number each comment to show from whom
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