Page:United States Statutes at Large Volume 102 Part 4.djvu/438

 102 STAT. 3408 26 USC 336 note.

PUBLIC LAW 100-647—NOV. 10, 1988 (B) Paragraph (6) of section 633(d) of the Reform Act is amended to read as follows: "(6) DEFINITIONS AND SPECIAL RULES.—For purposes of this subsection— "(A) Q U A U F I E D GROUP.—

"(i) IN GENERAL.—Except as provided in clause (ii), the term 'qualified group' means any group of 10 or fewer qualified persons who at all times during the 5year period ending on the date of the adoption of the plan of complete liquidation (or, if shorter, the period during which the corporation or any predecessor was in existence) owned (or was treated as owning under the rules of subparagraph (O) more than 50 percent (by value) of the stock in such corporation. "(ii) 5-YEAR OWNERSHIP REQUIREMENT NOT TO APPLY IN CERTAIN CASES.—In the case of—

"(I) any complete liquidation pursuant to a plan of liquidation adopted before March 31, 1988, "(II) any distribution not in liquidation made before March 31, 1988, "(III) an election to be an S corporation filed before March 31, 1988, or "(IV) a transaction described in section 338 of the Internal Revenue Code of 1986 where the acquisition date (within the meaning of such section 338) is before March 31, 1988, the term 'qualified group' means any group of 10 or fewer qualified persons. "(B) QuAUFiED PERSON.—The term 'qualified person' means— "(i) an individual, "(ii) an estate, or "(iii) any trust described in clause (ii) or clause (iii) of section 1361(c)(2)(A) of the Internal Revenue (Dode of 1986. "(C) ATTRIBUTION RULES.—

"(i) IN GENERAL.—Any stock owned by a corporation, trust (other than a trust referred to in subparagraph (B)(iii), or partnership shall be treated as owned proportionately by its shareholders, beneficiaries, or partners, and shall not be treated as owned by such corporation, trust, or partnership. Stock considered to be owned by a person by reason of the application of the preceding sentence shall, for purposes of applying such sentence, be treated as actually owned by such person. "(ii) FAMILY MEMBERS.—Stock owned (or treated as owned) by members of the same family (within the meaning of section 318(a)(l) of the Internal Revenue (Dode of 1986) shall be treated as owned by 1 person, and shall be treated as owned by such 1 person for any period during which it was owned (or treated as owned) by any such member. "(iii) TREATMENT OF CERTAIN TRUSTS.—Stock owned (or treated as owned) by the estate of any decedent or by any trust referred to in subparagraph (B)(iii) with respect to such decedent shall be treated as owned by 1 person and shall be treated as owned by such 1 person

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