Page:United States Statutes at Large Volume 107 Part 1.djvu/513

 PUBLIC LAW 103-66 —AUG. 10, 1993 107 STAT. 487 "(11) subclause (II) of subparagraph (A)(i) shall be applied by substituting '4 months' for *S months', "(III) subclause (III) of subparagraph (A)(i) shall be applied by substituting '7 months' for '6 months', and "(IV) subclause (IV) of subparagraph (A)(i) shall be applied by substituting '10 months' for '9 months'. "(ii) If the taxpayer makes an election under this clause— "(I) subclause (II) of subparagraph (A)(i) shall be applied by substituting '5 months' for '3 months', "(II) subclause (III) of subparagraph (A)(i) shall be applied by substituting 8 months' for '6 months', and "(III) subclause (IV) of subparagraph (A)(i) shall be applied by substituting '11 months' for '9 months'. "(iii) An election under clause (i) or (ii) shall apply to the taxable year for which made and such an election shall be effective only if made on or before the date required for the payment of the first required installment for such taxable year." (3) The last sentence of section 6655(g)(3) is amended by 26 USC 6655. striking "and subsection (e)(2)(A) and inserting "and, except in the case of an election under subsection (e)(2)(C), subsection (e)(2)(A). (c) EFFECTIVE DATE. — The amendments made by this section 26 USC 6655 shall apply to taxable years beginning after December 31, 1993. note. SEC. 13226. MODIFICATIONS OF DISCHARGE OF INDEBTEDNESS PROVISIONS. (a) REPEAL OF STOCK FOR DEBT EXCEPTION IN DETERMINING INCOME FROM DISCHARGE OF INDEBTEDNESS. — (1) IN GENERAL. —Subsection (e) of section 108 is amended— (A) by striking paragraph (10) and by redesignating paragraph (11) as paragraph (10), and (B) by amending paragraph (8) to read as follows: "(8) INDEBTEDNESS SATISFIED BY CORPORATION'S STOCK. — For purposes of determining income of a debtor from discharge of indebtedness, if a debtor corporation transfers stock to a creditor in satisfaction of its indebtedness, such corporation shall be treated as having satisfied the indebtedness with an amount of money equal to the fair market value of the stock." (2) CONFORMING AMENDMENTS. — (A) Subparagraph (C) of section 382(1)(5) is amended to read as follows: "(C) COORDINATION WITH SECTION IDS.- In applying section 108(e)(8) to any case to which subparagraph (A) applies, there shall not be taken into account any indebtedness for interest described in subparagraph (B)." (B) Section 108(e)(6) is amended by striking "For" and inserting "Except as provided in regulations, for. (3) EFFECTIVE DATE.— 26 USC los note. 69-194O-94-17:QL.3Part1

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