Page:United States Statutes at Large Volume 100 Part 1.djvu/360

 100 STAT. 324

PUBLIC LAW 99-272—APR. 7, 1986 "(B) CERTAIN INFORMATION NEED NOT BE PROVIDED.—An

organization may exclude from the information required to be provided under clause (ii) of subparagraph (A) any detailed or specific data regarding earnings or losses of such units which such organization determines would disclose commercially sensitive information which— "(i) could result in di.~competitive disadvantage to such organization, or "(ii) could create a competitive advantage to the benefit of a competitor of such organization. "(C) FAILURE TO PROVIDE SUFFICIENT NOTICE.—If the Secretary determines that an organization failed to provide sufficient notice under this paragraph— "(i) the Secretary shall notify such organization, and "(ii) such organization shall, upon receipt of such notification, provide to its patrons a revised notice meeting the requirements of this paragraph. Any such failure shall not affect the treatment of the organization under any provision of this subchapter or section 521. "(4) PATRONAGE EARNINGS OR LOSSES DEFINED.—For purposes of this subsection, the terms 'patronage earnings' and 'patronage losses' means earnings and losses, respectively, which are derived from business done with or for patrons of the organization."

26 USC 521.

26 USC 521.

Ante, p. 323. 26 USC 1388

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(b)

TAX-EXEMPT STATUS NOT AFFECTED BY NETTING.—Section

521(b) (relating to applicable rules) is amended by adding at the end thereof the following new paragraph: "(6) NETTING OF LOSSES.—Exemption shall not be denied any such association because such association computes its net earnings for purposes of determining any amount available for distribution to patrons in the manner described in paragraph (1) of section 1388(j)." (c) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1962. (2) NOTIFICATION REQUIREMENT.—The provisions of section 1388(j)(3) of the Internal Revenue Code of 1954 (as added by subsection (a)) shall apply to taxable years beginning on or after the date of the enactment of this Act. (3) No INFERENCE.—Nothing in the amendments made by this section shall be construed to infer that a change in law is intended as to whether any patronage earnings may or not be offset by nonpatronage losses, and any determination of such issue shall be made as if such amendments had not been enacted. SEC. 13211. ALLOCATION UNDER SECTION 861 OF RESEARCH AND EXPERIMENTAL EXPENDITURES.

26 USC 861 note.

Subsection (c) of section 126 of the Deficit Reduction Act of 1984 is amended— (1) by striking out "1985" and inserting in lieu thereof "1986"; and (2) by striking out "3rd" each place it appears and inserting in lieu thereof "4th".

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