Page:United States Statutes at Large Volume 100 Part 3.djvu/978

 100 STAT. 2786

PUBLIC LAW 99-514—OCT. 22, 1986

services) is amended by inserting "1985," after "1984," in the table contained in such section. (c) AMENDMENTS RELATED TO SECTION 27 OF THE ACT.—

(1) Subsection (e) of section 5061 (relating to payment by fl electronic fund transfer of alcohol taxes) is amended by adding at the end thereof the following new paragraph: "(3) CONTROLLED GROUPS.—

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"(A) IN GENERAL.—In the case of a controlled group of corporations, all corporations which are component members of such group shall be treated as 1 taxpayer. For purposes of the preceding sentence, the term 'controlled group of corporations' has the meaning given to such term by subsection (a) of section 1563, except that 'more than 50 percent' shall be substituted for 'at least 80 percent' each place it appears in such subsection. "(B) CONTROLLED GROUPS NONINCORPORATED PERSONS.—Under

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regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation." ,^.,.. (2) Paragraph (3) of section 5703(b) (relating to payment by electronic fund transfer of tobacco taxes) is amended by adding at the end thereof the following: "Rules similar to the rules of section 5061(e)(3) shall apply to the $5,000,000 amount specified in the preceding sentence." (3) Paragraph (7) of section 27(b) of the Tax Reform Act of 1984 (relating to floor stocks tax on distilled spirits) is amended by adding at the end thereof the following new subparagraph: "(F) TREATMENT OF DISTILLED SPIRITS IN FOREIGN TRADE

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ZONES.—Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, distilled spirits which are located in a foreign trade zone on October 1, 1985, shall be subject to the tax imposed by paragraph (1) and shall be treated for purposes of this subsection as held on such date for sale if— "(i) internal revenue taxes have been determined, or customs duties liquidated, with respect to such distilled spirits before such date pursuant to a request made under the first proviso of section 3(a) of such Act, or "(ii) such distilled spirits are held on such date under the supervision of customs pursuant to the second proviso of such section 3(a). Under regulations prescribed by the Secretary, provisions similar to sections 5062 and 5064 of such Code shall apply to distilled spirits with respect to which tax is imposed by paragraph (1) by reason of this subparagraph."

SEC. 1802. AMENDMENTS RELATED TO TAX-EXEMPT ENTITY LEASING PROVISIONS. (a) AMENDMENTS RELATING TO SECTION 31 OF THE ACT.—r (1) TREATMENT OF USE IN UNRELATED TRADE OR BUSINESS.—

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Subparagraph (D) of section 168(j)(3) (relating tol exception where property used in unrelated trade or business) \s amended by adding at the end thereof the following new sentence: "For purposes of subparagraph (B)(iii), any portion of a property so

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