Page:United States Statutes at Large Volume 102 Part 4.djvu/440

 102 STAT. 3410

PUBLIC LAW 100-647—NOV. 10, 1988 "(i) employees or retirees of such corporation, or "(ii) in the case of stock or voting trust certificates acquired from an employee or retiree of such corporation, the spouse, child, or estate of such employee or retiree or a trust created by such employee or retiree which is described in section 1361(c)(2) of the Internal Revenue Code of 1986 (or treated as described in such section by reason of section 1361(d) of such Code), and", (h) AMENDMENTS RELATED TO SECTION 641 OF THE REFORM ACT.—

(1) Paragraph (3) of section 1060(b) of the 1986 Code is amended by striking out "the Secretary may find necessary" and inserting in lieu thereof "the Secretary deems necessary". (2) Section 1060 of the 1986 Code is amended by adding at the end thereof the following new subsection: "(d) TREATMENT OF CERTAIN PARTNERSHIP TRANSACTIONS.—In the

case of a distribution of partnership property or a transfer of an interest in a partnership— "(1) the rules of subsection (a) shall apply but only for purposes of determining the value of goodwill or going concern value (or similar items) for purposes of applying section 755, and "(2) if section 755 applies, such distribution or transfer (as the case may be) shall be treated as an applicable asset acquisition for purposes of subsection (b)." (3)(A) Subparagraph (B) of section 6724(d)(l) of the 1986 Code (defining information return) is amended by striking out "or" at the end of clause (ix), by striking out the period at the end of clause (x) and inserting in lieu thereof ", or", and by adding at the end thereof the following new clause: "(xi) section 1060(b) (relating to reporting requirements of transferors and transferees in certain asset acquisitions)." (B) Section 1060 of the 1986 Code is amended by adding at the end thereof the following new subsection: "(e) CROSS REFERENCE.— "For provisions relating to penalties for failure to file a return required by this section, see section 6721." (i) AMENDMENTS RELATED TO SECTION 642 OF THE REFORM ACT,—

(1) Paragraph (1) of section 453(g) of the 1986 Code is amended by striking out subparagraphs (A) and (B) and inserting in lieu thereof the following: "(A) subsection (a) shall not apply, "(B) for purposes of this title— "(i) except as provided in clause (ii), all payments to be received shall be treated as received in the year of the disposition, and "(ii) in the case of any payments which are contingent as to the amount but with respect to which the fair market value may not be reasonably ascertained, the basis shall be recovered ratably, and "(C) the purchaser may not increase the basis of any property acquired in such sale by any amount before the time such amount is includible in the gross income of the seller." (2)(A) Section 453(g) of the 1986 Code is amended by adding at the end thereof the following new paragraph:

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