Page:United States Statutes at Large Volume 101 Part 2.djvu/1222

 101 STAT. 1330-428

PUBLIC LAW 100-203—DEC. 22, 1987 "(A) IN GENERAL.—For purposes of this section, the term 'large corporation' means any corporation if such corporation (or any predecessor corporation) had taxable income of $1,000,000 or more for any taxable year during the testing period.

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"(B) RULES FOR APPLYING SUBPARAGRAPH (A).— "(i) TESTING PERIOD.—For purposes of subparagraph

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(A), the term 'testing period' means the 3 taxable years immediately preceding the taxable year involved. "(ii) MEMBERS OF CONTROLLED GROUP.—For purposes

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of applying subparagraph (A) to any taxable year in the testing period with respect to corporations which are component members of a controlled group of corporations for such taxable year, the $1,000,000 amount specified in subparagraph (A) shall be divided among such members under rules similar to the rules of section 1561. "(iii) CERTAIN CARRYBACKS AND CARRYOVERS NOT TAKEN INTO ACCOUNT.—For purposes of subparagraph

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(A), taxable income shall be determined without regard to any amount carried to the taxable year under section 172 or 1212(a). "(3) CERTAIN TAX-EXEMPT ORGANIZATIONS.—For purposes of

this section— "(A) Any organization subject to the tax imposed by . L'ftl-!s>Ji section 511, and any private foundation, shall be treated as a corporation subject to tax under section 11. ¥J. "(B) Any tax imposed by section 511, and any tax imposed by section 1 or 4940 on a private foundation, shall be treated as a tax imposed by section 11. "(C) Any reference to taxable income shall be treated as ^i ' including a reference to unrelated business taxable income or net investment income (as the case may be). In the case of any organization described in subparagraph (A), subsection (b)(2)(A) shall be applied by substituting '5th month' for '3rd month'. "(h) EXCESSIVE ADJUSTMENT UNDER SECTION 6425.— "(1) ADDITION TO TAX.—If the amount of an adjustment under section 6425 made before the 15th day of the 3rd month following the close of the taxable year is excessive, there shall be added to the tax under chapter 1 for the taxable year an amount determined at the underpayment rate established under section 6621 upon the excessive amount from the date on which the credit is allowed or the refund is paid to such 15th day. "(2) EXCESSIVE AMOUNT.—For purposes of paragraph (1), the excessive amount is equal to the amount of the adjustment or (if smaller) the amount by which— ^ "(A) the income tax liability (as defined in section 6425(c)) for the taxable year as shown on the return for the taxable year, exceeds "(B) the estimated income tax paid during the taxable year, reduced by the amount of the adjustment, "(i) FISCAL YEARS AND SHORT YEARS.— "(1) FISCAL YEARS.—In applying this

section to a taxable year beginning on any date other than January 1, there shall be

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