Page:United States Statutes at Large Volume 102 Part 4.djvu/638

 102 STAT. 3608

PUBLIC LAW 100-647—NOV. 10, 1988

the Treasury or his delegate shall prescribe and shall be made not later than the later of the due date (including extensions) for filing the return for the taxable year of the acquiring corporation in which the acquisition date occurs or the date 120 days after the date of the enactment of this Act. Such an election, once made, shall be irrevocable, (n) AMENDMENTS RELATED TO SECTION 10227 OF THE ACT.—Paragraph (4) of section 1363(d) of the 1986 Code (relating to recapture of LIFO benefits) is amended by adding at the end thereof the following new subparagraph: "(D) NOT TREATED AS MEMBER OF AFFIUATED GROUP.—

26 USC 5881 note,

Except as provided in regulations, the corporation referred to in paragraph (1) shall not be treated as a member of an affiliated group with respect to the amount included in gross income under paragraph (1)." (o) AMENDMENTS RELATED TO SECTION 10228 OF THE ACT.— dXA) Subsection (a) of section 5881 of the 1986 Code is amended by striking out "gain realized by such person on such receipt" and inserting in lieu thereof "gain or other income of such person by reason of such receipt". (B)(i) Subsection (b) of section 5881 of the 1986 Code is amended by striking out "a corporation to directly or indirectly acquire its stock" and inserting in lieu thereof "a corporation (or any person acting in concert with such corporation) to directly or indirectly acquire stock of such corporation". (ii) The amendment made by clause (i) shall apply to transactions occurring on or after March 31, 1988. (C) Subsection (d) of section 5881 of the 1986 Code is amended— (i) by striking out "the gain" and inserting in lieu thereof "the gain or other income", and (ii) by striking out "GAIN RECOGNIZED" in the subsection heading and inserting in lieu thereof "AMOUNT RECOGNIZED".

(2) Section 5881 of the 1986 (Dode is amended by adding at the end thereof the following new subsection: "(e) ADMINISTRATIVE PROVISIONS.—For purposes of the deficiency procedures of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A." (p) AMENDMENTS RELATED TO SECTION 10241 OF THE ACT.—

(1) Paragraph (1) of section 811(d) of the 1986 Code is amended by striking out "the prevailing State assumed interest rate for the contract" and inserting in lieu thereof "the greater of the prevailing State assumed interest rate or applicable Federal interest rate in effect under section 807 for the contract". (2) Paragraph (2) of section 812(b) of the 1986 (Dode is amended by striking out the last sentence and inserting in lieu thereof the following: "In any case where neither the prevailing State assumed interest rate nor the applicable Federal interest rate is used, another appropriate rate shall be used for purposes of subparagraph (A)." (q) AMENDMENTS RELATED TO SECTION 10242 OF THE ACT.— (1) Subsection (h) of section 816 of the 1986 Code is amended by striking out "section 842(c)(l)(A)" and inserting in lieu thereof "section 842(b)(2)(B)(i)".

�