Page:United States Statutes at Large Volume 100 Part 3.djvu/1104

 100 STAT. 2912

PUBLIC LAW 99-514—OCT. 22, 1986 (A) shall suspend any pending audit of any self-insured workers' compensation fund where the audit involves the issue of whether such fund is a mutual insurance company, (B) shall not initiate any audit of any such fund involving such issue, and (C) shall take no steps to collect from such fund any underpayment, interest, or penalty involving such issue. (2) SUSPENSION OF RUNNING OF INTEREST.—No interest shall be payable under chapter 67 of the Internal Revenue Code of 1986 on any underpayment by a self-insured workers' compensation fund involving such issue for the period beginning on August 16, 1986, and ending on August 16, 1987. (3) ADDITIONAL TIME TO FILE TAX COURT PROCEEDING.—If the

period during which a petition involving such issue could have been filed with the TEIX Court by any self-insured workers' compensation fund had not expired before August 16, 1986, such period shall not expire before August 16, 1987. (4) SELF-INSURED WORKERS' COMPENSATION FUND.—For purposes of this subsection, the term "self-insured workers' compensation fund" means any self-insured workers' compensation fund established pursuant to applicable State law regulating self-insured workers' compensation funds. (r) RETURNS OF ALCOHOL, TOBACCO, AND FIREARMS TAXES.—

(1) IN GENERAL.—Subsection (b) of section 6091 of such Code (relating to place for filing returns or other documents) is amended by adding at the end thereof the following new paragraph: "(6) ALCOHOL, TOBACCO, AND FIREARMS RETURNS, ETC.—In the

case of any return of tax imposed by subtitle E (relating to taxes on alcohol, tobacco, and firearms), subsection (a) shall apply (and this subsection shall not apply)." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act. (s) TREATMENT OF STRIPPING TAX-EXEMPT BONDS.

(1) IN GENERAL.—Subsection (d) of section 1286 is amended to read as follows: "(d) SPECIAL RULES FOR TAX-EXEMPT OBLIGATIONS.—In the case of any tax-exempt obligation (as defined in section 1275(a)(3)) from which 1 or more coupons have been stripped— "(1) the amount of original issue discount determined under subsection (a) with respect to any stripped bond or stripped coupon from such obligation shall be the amount which produces a jdeld to maturity (as of the purchase date) equal to the lower of— "(A) the coupon rate of interest on such obligation before the separation of coupons, or "(B) the yield to maturity (on the basis of purchase price) of the stripped obligation or coupon, "(2) the amount of original issue discount determined under paragraph (1) shall be taken into account in determining the adjusted basis of the holder under section 1288, (3) subsection (b)(1) shall not apply, and "(4) subsection (b)(2) shall be applied by increasing the basis of the bond or coupon by the interest accrued but not paid before

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