Page:United States Statutes at Large Volume 103 Part 3.djvu/339

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2407 "(D) section 143(m) (relating to recapture of proration of Federal subsidy from use of mortgage bonds and mortgage credit certificates),". (2) Paragraph (2) of section 26(b) is amended by striking subparagraph (K) and all that follows and inserting the follow- ing new subparagraphs: "(K) sections 871(a) and 881 (relating to certain income of nonresident aliens and foreign corporations), "(L) section 860E(e) (relating to taxes with respect to certain residual interests), and "(M) section 884 (relating to branch profits tax)." (3) Subparagraph (B) of section 6724(d)(l) is amended by strik« ing clause (viii) and all that follows and inserting the following: "(viii) section 6052(a) (relating to reporting payment of wages in the form of group-term life insurance), "(ix) section 6053(c)(l) (relating to reporting with re- spect to certain tips), "(x) section 1060(b) (relating to reporting require- ments of transferors and transferees in certain asset acquisitions), or (xi) subparagraph (A) or (C) of subsection (c)(4), or subsection (e), of section 4093 (relating to information reporting with respect to tax on diesel and aviation fuel)." (4) Clause (i) of section 1374(d)(2)(A) is amended by striking "(except as provided in subsection (b)(2))". (5)(A) Paragraph (6) of section 382Qi) is amended— (i) by striking "during the recognition period" in subpara- graph (B) andf inserting "during the recognition period (determined without regard to any cairyover), and (ii) by striking "treated as recognized built-in gains or losses under tms paragraph" in subparagraph (C) and inserting "which would be treated as recognized built-in gains or losses under this paragraph if such amounts were properly taken into account (or allowable as a deduction) during the recognition period". (B) Paragraph (5) of section 1374(d) is amended— (i) by striking "during the recognition period" in subpara- graph (B) and inserting "during the recCition period (determined without regard to any carryover), and (ii) by striking "treated as recognized built-in gains or losses under tms paragraph" in subparagraph (C) and inserting "which would be treated as recognized built-in gains or losses under this paragraph if such amounts were properly taken into account (or allowable as a deduction) during the recognition period". (6) Subparagraph (B) of section 13610i>X2) is amended to read as follows: "(B) a financial institution to which section 585 applies (or would apply but for subsection (c) thereof) or to which section 593 applies,". (7) Paragraph (2) of section 1366(f) is amended to read as follows: "(2) TREATMENT OF TAX IMPOSED ON BUILT-IN GAINS.— I f any Corporations. tax is imposed under section 1374 for any taxable year on an S corporation, for purposes of subsection (a), the amount so im- posed shall be treated as a loss sustained by the S corporation

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