Page:United States Statutes at Large Volume 101 Part 2.djvu/1230

 101 STAT. 1330-436

PUBLIC LAW 100-203—DEC. 22, 1987 (2) PROVISIONS TAKING EFFECT AS IF INCLUDED IN THE TAX

REFORM ACT OF 1986.—The following provisions shall take effect as if included in the amendments made by section 1172 of the Tax Reform Act of 1986: (A) Section 2057(f)(2) of the Internal Revenue Code of 1986, as added by this section. (B) The repeal of the requirement that a sale be made by the executor of an estate to qualify for purposes of section 2057 of such Code. (3) DIRECT OWNERSHIP REQUIREMENT.—If the requirements of section 2057(d)(1)(B) of such Code (as modified by section 2057(d)(2) of such Code), as in effect after the amendments made by this section, are met with respect to any employer securities sold after October 22, 1986, and before February 27, 1987, such securities shall be treated as having been directly owned by the decedent for purposes of section 2057 of such Code, as in effect before such amendments. (4) REDUCTION FOR SALES ON OR BEFORE FEBRUARY 26, 1987.—In applying the limitations of subsection (b) of section 2057 of such Code to sales after February 26, 1987, there shall be taken into account sales on or before February 26, 1987, to which section 2057 of such Code applied. SEC. 10413. EXCISE TAX ON PLANS OR COOPERATIVES DISPOSING OF .iOi.. r EMPLOYER SECURITIES FOR WHICH ESTATE TAX DEDUCTION WAS ALLOWED.

(a) IN GENERAL.—Chapter 43 (relating to excise taxes on qualified pension, etc., plans) is amended by inserting after section 4978 the following new section: "SEC. 4978A. TAX ON CERTAIN DISPOSITIONS OF EMPLOYER SECURITIES TO WHICH SECTION 2057 APPLIED.

"(a) IMPOSITION OF TAX.—In the case of a taxable event involving qualified employer securities held by an employee stock ownership plan or eligible worker-owned cooperative, there is hereby imposed a tax equal to the amount determined under subsection (b). "(b) AMOUNT OF TAX.—

"(1) IN GENERAL.—The amount of the tax imposed by subsection (a) shall be equal to 30 percent of— "(A) the amount realized on the disposition in the case of a taxable event described in paragraph (1) or (2) of sub"^'^" section (c), or Loans. "(B) the amount repaid on the loan in the case of a • taxable event described in paragraph (3) of subsection (c). "(2) DISPOSITIONS OTHER THAN SALES OR EXCHANGES.—For purposes of paragraph (1), in the case of a disposition of employer securities which is not a sale or exchange, the amount realized on such disposition shall be the fair market value of such employer securities at the time of disposition. "(c) TAXABLE EVENT.—For purposes of this section, the term 'taxable event' means the following: /I ?r«s Dsrj "^^^ DISPOSITION WITHIN 3 YEARS OF ACQUISITION.—Any disposi^0. tion of employer securities by an employee stock ownership plan or eligible worker-owned cooperative within 3 years after such plan or cooperative acquired qualified employer securities.

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