Page:United States Statutes at Large Volume 100 Part 3.djvu/1103

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2911

(p) AMENDMENT RELATED TO SECTION 252 OF THE ECONOMIC RECOV-

ERY TAX ACT OF 1981.— (1) Notwithstanding subsection (c) of section 252 of the BIconomic Recovery Tax Act of 1981, the amendment made by subsection (a) of such section 252 (and the provisions of subsection (b) of such section 252) shall apply to any transfer of stock to any person if— (A) such transfer occurred in November or December of 1973 and was pursuant to the exercise of an option granted in November or December of 1971, (B) in December 1973 the corporation granting the option was acquired by another corporation in a transaction qualifying as a reorganization under section 368 of the Internal Revenue Code of 1954, (C) the fair market value (as of July 1, 1974) of the stock received by such person in the reorganization in exchange for the stock transferred to him pursuant to the exercise of such option was less than 50 percent of the fair market value of the stock so received (as of December 4, 1973), (D) in 1975 or 1976 such person sold substantially all of the stock received in such reorganization, and (E) such person makes an election under this section at such time and in such manner as the Secretary of the Treasury or his delegate shall prescribe. (2) LIMITATION ON AMOUNT OF BENEFIT.—Subsection (a) shall not apply to transfers with respect to any employee to the extent that the application of subsection (a) with respect to such employee would (but for this paragraph) result in a reduction in liability for income tax with respect to such employee for all taxable years in excess of $100,000 (determined without regard to any interest). (3) STATUTE OF LIMITATIONS.—

(A) OVERPAYMENTS.—If refund or credit of any overpayment of tax resulting from the application of subsection (a) is prevented on the date of the enactment of this Act (or at any time within 6 months after such date of enactment) by the operation of any law or rule of law, refund or credit of such overpayment (to the extent attributable to the application of subsection (a)) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 6month period. (B) DEFICIENCIES.—If the assessment of any deficiency of tax resulting from the application of subsection (a) is prevented on the date of the enactment of this Act (or at any time within 6 months after such date of enactment) by the operation of any law or rule of law, assessment of such deficiency (to the extent attributable to the application of subsection (a)) may, nevertheless, be made within such 6month period. (q) TREATMENT OF CERTAIN SELF-INSURED WORKERS' COMPENSATION FUNDS.— (1) MORATORIUM ON COLLECTION ACTIVITIES.—During the

period beginning on the date of the enactment of this Act and ending on August 16, 1987, the Secretary of the Treasury or his delegate—

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