Page:United States Statutes at Large Volume 103 Part 3.djvu/341

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2409 end of subparagraph (B), and by inserting after subparagraph (B) the following new subparagraph: "(C) any predecessor of the taxpayer or a person de- scribed in subparagraph (A) or (B),". (6) Paragraph (2) of section 460(b) is amended by adding at the end the following new sentence: "For purposes of subtitle F (other than sections 6654 and 6655), Contracts. any interest required to be paid by the taxpayer under subpara- graph (B) shall be treated as an increase in the tax imposed by this chapter for the taxable year in which the contract is completed (or, in the case of interest payable with respect to any amount properly taken into account after completion of the contract, for the taxable year in which the amount is so prop- ' <^ erly taken into account)." (f) AMENDMENTS RELATED TO SECTION 1009 OF THE 1988 ACT. — (1) Subparagraph (A) of section 643(a)(6) is amended by strik- ing "section 265(1)" and inserting "section 265(a)(l)". (2) Subparagraph (B) of section 10090i>X3) of the 1988 Act is 26 USC 265 note. amended by str^ing "section 265(b)(3)(B)(iii)" and inserting " section 265a)X3XBXiXin)". (g) AMENDMENT RisLATED TO SECTION 1011 OF THE 1988 ACT.— (1) Subsection (a) of section 401 is amended by moving para- graph (30) from the end and inserting it after psiragraph (29). (2) The last sentence of section 402(g)(3) is amended by insert- ing "involving a one-time irrevocable election" after "similar arrangement. (3) 'Die heading of sections 406(c) and 407(c) are each amended by striking "PURPOSES LIMFTATION" and inserting "PURPOSES OF LIMITATION". (4) Clause (iii) of section 457(d)(l)(A) is amended by striking the period at the end and inserting ", and". (5) Subclause (1) of section 457(d)(2)(B)(i) is amended by adding "and" at the end. (h) AMENDMENTS RELATED TO SECTION 101 IB OF THE 1988 ACT.— (1) Paragraph (5) of section 409G) is amended by striking "the last sentence and inserting "the second sentence. (2) Subsection (a) of section 129 is amended by striking the sentence following paragraph (2)(C) and preceding subsection 0)). (3) Paragraph (1) of section 1011B(j) of the 1988 Act is 26 USC 401. amended by striking " 401(a)(28XB)" and inserting " 401(a)(28XBXii)". (i) AMENDMENTS RELATED TO SECTION 1012 OF THE 1988 ACT.— (1) Subparagraph (H) of section 904(d)(l) is amended by strik- ing "qusdified interest and carrying charges (as defined in section 245(c))" and inserting "interest or carrying charges (as defined in section 927(d)(l)) derived from a transaction which results in foreign trade income (as defined in section 923(b))". (2) Sections 861(a)(6), 862(a)(6), 863(b)(2), and 863(b)(3) are each amended by striking "865(h)(l)" and inserting "865(i)(l)". (3) Subparagraph (A) of section 954(c)(3) is amended— (A) by striking "is created" in clause (i) and inserting "is a corporation created", (B) by striking "from a related person" in clause (ii) and inserting "from a corporation wMch is a related person", and (C) by adding at the end the following:

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