Page:United States Statutes at Large Volume 100 Part 3.djvu/1025

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2833

(2) RETURNS RELATING TO CERTAIN PARTNERSHIP INTERESTS.—

Paragraph (2) of section 6050K(c) (relating to requirement that transferor notify partnership) is amended by striking out "this subsection" and inserting in lieu thereof "this section". (c) AMENDMENTS RELATED TO SECTION 150 OF THE ACT.—

(1) Paragraph (3) of section 6678(a) (relating to failure to furnish certain statements) is amended by striking out "or" at the end of subparagraph (E), by adding "or" at the end of subparagraph (F), and by inserting after subparagraph (F) the following new subparagraph: "(G) section 6045(d) (relating to statements required in the case of certain substitute payments),". (2) Clause (ii) of section 6652(a)(3)(A) (relating to penalty in the case of intentional disregard) is amended by inserting "(other than by subsection (d) of such section)" after "section 6045". (d) AMENDMENT RELATED TO SECTION 155 OF THE ACT.—Section

6660 (relating to addition of tax in the case of valuation understatement for purposes of estate or gift taxes) is amended by adding at the end thereof the following new subsection: "(f) UNDERPAYMENT DEFINED.—For purposes of this section, the term 'underpayment' has the meaning given to such term by section 6653(c)(1)." (e) AMENDMENT RELATED TO SECTION 157 OF THE ACT.—Paragraph

(3) of section 7502(e) is amended by striking out "the tax' and inserting in lieu thereof "any tax". SEC. 1812. AMENDMENTS RELATED TO MISCELLANEOUS PROVISIONS. (a) AMENDMENTS RELATED TO SECTION 171 OF THE ACT.—

(1) Subsection (a) of section 111 (relating to recovery of tax benefit items) is amended by striking out "did not reduce income subject to tax" and inserting in lieu thereof "did not reduce the amount of tax imposed by this chapter". (2) Subsection (c) of section 111 (relating to treatment of carryovers) is amended by striking out "reducing income subject to tax or reducing tax imposed by this chapter, as the case may be" and inserting in lieu thereof "reducing tax imposed by this chapter". (3) Paragraph (12) of section 381(c) (relating to recovery of bad debts, prior taxes, or delinquency amounts) is amended to read v as follows: "(12) RECOVERY OF TAX BENEFIT ITEMS.—If the acquiring corporation is entitled to the recovery of any amounts previously deducted by (or allowable as credits to) the distributor or transferor corporation, the acquiring corporation shall succeed to the treatment under section 111 which would apply to such amounts in the hands of the distributor or transferor corporation." (4) Paragraph (2) of section 1351(d) is amended by striking out "relating to recovery of bad debts, etc." and inserting in lieu thereof "relating to recovery of tax benefit items". (5) Paragraph (3) of section 1398(g) is amended to read as follows: "(3) RECOVERY OF TAX BENEFIT ITEMS.—Any amount to which section 111 (relating to recovery of tax benefit items) applies." (b) AMENDMENTS RELATED TO SECTION 172 OF THE ACT.— (1) COORDINATION OF SECTION 7872 WITH TAXES ON PRIVATE

FOUNDATIONS.—Subparagraph (B) of section 4941(d)(2) (defining

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