Page:United States Statutes at Large Volume 102 Part 4.djvu/697

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3667

(2) $40,000,000 LIMITATION.—The aggregate amount of losses (and the deduction equivalent of credits as determined in the same manner as under section 469(j)(5) of the 1986 Code) to which paragraph (1) applies with respect to any corporation^ shall not exceed $40,000,000. For purposes of this paragraph, a Native Corporation and all other corporations all of the stock of ' which is owned directly by such corporation shall be treated as 1 corporation. (3) SPECIAL RULE FOR CORPORATIONS UNDER TITLE ii.—In the case of a corporation which on April 26, 1988, was under the jurisdiction of a Federal district court under title 11 of the United States Code— (A) paragraph (I)(B) shall be applied by substituting the date 1 year after the date of the enactment of this Act for "July 26, 1988", (B) paragraph (1) shall not apply to any loss or credit which arises on or after the date 1 year after the date of the enactment of this Act, and (C) paragraph (2) shall be applied by substituting "$99,000,000" for "$40,000,000". (c) SPECIAL ADMINISTRATIVE RULES.— (1) NOTICE TO NATIVE CORPORATIONS OF PROPOSED TAX ADJUST-

MENTS.—Notwithstanding section 6103 of the 1986 Code, the Secretary of the Treasury or his delegate shall notify a Native Corporation or its designated representative of any proposed adjustment— (A) of the tax liability of a taxpayer which has contracted with the Native Corporation (or other corporation all of the stock of which is owned directly by the Native Corporation) for the use of losses of such Native Corporation (or such other corporation), and (B) which is attributable to an asserted overstatement of losses by, or misassignment of income (or income attributable to property contributed) to, an affiliated group of which the Native Corporation (or such other corporation) is a member. Such notice shall only include information with respect to the transaction between the taxpayer and the Native Corporation. (2) RIGHTS OF NATIVE CORPORATION.—

(A) IN GENERAL.—If a Native Corporation receives a notice under paragraph (1), the Native Corporation shall have the right to— (i) submit to the Secretary of the Treasury or his delegate a written statement regarding the proposed adjustment, and (ii) meet with the Secretary of the Treasury or his delegate with respect to such proposed adjustment. The Secretary of the Treasury or his delegate may discuss such proposed adjustment with the Native Corporation or its designated representative. (B)

EXTENSION OF STATUTE OF LIMITATIONS.—Subpara-

graph (A) shall not apply if the Secretary of the Treasury or his delegate determines that an extension of the statute of limitation is necessary to permit the participation described in subparagraph (A) and the taxpayer and the Secretary or his delegate have not agreed to such extension.

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