Page:United States Statutes at Large Volume 102 Part 4.djvu/455

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3425

"(i) the record holder of such interest furnishes to such pass-thru entity an affidavit that such record holder is not a disqualified organization, and "(ii) during such period, the pass-thru entity does not have actual knowledge that such affidavit is false. "(7) WAIVER.—The Secretary may waive the tax imposed by paragraph (1) on any transfer tf— "(A) within a reasonable time after discovery that the transfer was subject to tax under paragraph (1), steps are taken so that the interest is no longer held by the disqualified organization, and "(B) there is paid to the Secretary such amounts as the Secretary may require. "(8) ADMINISTRATIVE PROVISIONS.—For purposes of subtitle F,

the taxes imposed by this subsection shall be treated as excise taxes with respect to which the deficiency procedures of such subtitle apply. (C) Paragraph (2) of section 26(b) of the 1986 (Dode is amended by striking out "and" a t the end of subparagraph (J), by striking out the period at the end of subparagraph (K) and inserting in lieu thereof ", and", and by adding a t the end thereof the following new subparagraph: "(L) section 860E(e) (relating to taxes with respect to certain residual interests)." (D)(i) The amendments made by subparagraph (A) shall apply in the case of any REMIC where the start-up day (as defined in section 860G(a)(9) of the 1986 Code, as in effect on the day before the date of the enactment of this Act) is after March 31, 1988; except that such amendments shall not apply in the case of a REMIC formed pursuant to a binding written contract in effect on such date. (ii) The amendments made by subparagraphs (B) and (C) (except to the extent they relate to paragraph (6) of section 860E(e) of the 1986 (Dode as added by such amendments) shall apply to transfers after March 31, 1988; except that such amendments shall not apply to any transfer pursuant to a binding written contract in effect on such date. (iii) Except as provided in clause (iv), the amendments made by subparagraphs (B) and (C) (to the extent they relate to paragraph (6) of section 860E(e) of the 1986 (Dode as so added) shall apply to excess inclusions for periods after March 31, 1988 but only to the extent such inclusions are— (I) allocable to an interest in a pass-thru entity acquired after March 31, 1988, or (II) allocable to an interest in a pass-thru entity acquired on or before March 31, 1988, but attributeble to a residual interest acquired by the pass-thru entity after March 31, 1988. For purposes of the preceding sentence, any interest in a passthru entity (or residual interest) acquired after March 31, 1988, pursuant to a binding written contract in effect on such date shall be treated as acquired before such date. (iv) In the case of any real estate investment trust, regulated investment company, common trust fund, or publicly traded partnership, no tax shall be imposed under section 860E(e)(6) of the 1986 Code (as added by the amendment made by subpara-

26 USC 860D ^°^-

26 USC 860E note.

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