A bill to amend chapter 21 of the Internal Revenue Code of 1954 to clarify, extend, and facilitate compliance with the recently enacted provisions relating to social security coverage for such employees but which nevertheless treated such employees as having such coverage.

Amends Internal Revenue Code provisions relating to social security coverage of employees of tax exempt nonprofit organizations which have treated their employees as having such coverage when they have not been covered. Extends to December 31, 1977, the deadline for organizations which have received credit or refunds for social security taxes paid to file certificates providing such coverage. Forgives any retroactive liability of organizations which have not received refunds or credits for unpaid social security coverage for October 1976, through June 1977, absent a contrary election by individual employees. Provides for the payment of retroactive liabilities in installments rather than lump sums, under regulations promulgated by the Secretary of the Treasury.