Page:United States Statutes at Large Volume 111 Part 1.djvu/1010

 Ill STAT. 986 PUBLIC LAW 105-34—AUG. 5, 1997 SEC. 1146. INCREASE IN FILING THRESHOLDS FOR RETURNS AS TO ORGANIZATION OF FOREIGN CORPORATIONS AND ACQUISITIONS OF STOCK IN SUCH CORPORATIONS. (a) IN GENERAL. —Subsection (a) of section 6046 (relating to returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock) is amended to read as follows: "(a) REQUIREMENT OF RETURN.— "(1) IN GENERAL.—A return complying with the requirements of subsection (b) shall be made by— "(A) each United States citizen or resident who becomes an officer or director of a foreign corporation if a United States person (as defined in section 7701(a)(30)) meets the stock ownership requirements of paragraph (2) with respect to such corporation, "(B) each United States person— "(i) who acquires stock which, when added to any stock owned on the date of such acquisition, meets the stock ownership requirements of paragraph (2) with respect to a foreign corporation, or "(ii) who acquires stock which, without regard to stock owned on the date of such acquisition, meets the stock ownership requirements of paragraph (2) with respect to a foreign corporation, "(C) each person (not described in subparagraph (B)) who is treated as a United States shareholder under section 953(c) with respect to a foreign corporation, and "(D) each person who becomes a United States person while meeting the stock ownership requirements of paragraph (2) with respect to stock of a foreign corporation. In the case of a foreign corporation with respect to which any person is treated as a United States shareholder under section 953(c), subparagraph (A) shall be treated as including a reference to each United States person who is an officer or director of such corporation. "(2) STOCK OWNERSHIP REQUIREMENTS.— A person meets the stock ownership requirements of this paragraph with respect to any corporation if such person owns 10 percent or more of— "(A) the total combined voting power of all classes of stock of such corporation entitled to vote, or "(B) the total value of the stock of such corporation.". 26 USC 6046 (b) EFFECTIVE DATE.— The amendment made by this section note. shall take effect on January 1, 1998. Subtitle F—Determination of Foreign or Domestic Status of Partnerships SEC. 1151. DETERMINATION OF FOREIGN OR DOMESTIC STATUS OF PARTNERSHIPS. (a) IN GENERAL.— Paragraph (4) of section 7701(a) is amended by inserting before the period "unless, in the case of a partnership, the Secretary provides otherwise by regulations". 26 USC 7701 (b) EFFECTIVE DATE. —Any regulations issued with respect to i^ote. the amendment made by subsection (a) shall apply to partnerships created or organized after the date determined under section 7805(b)

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