Page:United States Statutes at Large Volume 111 Part 1.djvu/946

 Ill STAT. 922 PUBLIC LAW 105-34—AUG. 5, 1997 (b) CONFORMING AMENDMENTS.— (1) Paragraph (2) of section 246(c) is amended to read as follows: " (2) 90-DAY RULE IN THE CASE OF CERTAIN PREFERENCE DIVIDENDS. — In the case of stock having preference in dividends, if the taxpayer receives dividends with respect to such stock which are attributable to a period or periods aggregating in excess of 366 days, paragraph (1)(A) shall be applied— "(A) by substituting '90 days' for '45 days' each place it appears, and "(B) by substituting '180-day period' for '90-day period'. ". (2) Paragraph (3) of section 246(c) is amended by adding "and" at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B). 26 USC 246 note. (c) EFFECTIVE DATE. — (1) IN GENERAL.— The amendments made by this section shall apply to dividends received or accrued after the 30th day after the date of the enactment of this Act. (2) TRANSITIONAL RULE.— The amendments made by this section shall not apply to dividends received or accrued during the 2-year period beginning on the date of the enactment of this Act if— (A) the dividend is paid with respect to stock held by the taxpayer on June 8, 1997, and all times thereafter until the dividend is received, (B) such stock is continuously subject to a position described in section 246(c)(4) of the Internal Revenue Code of 1986 on June 8, 1997, and all times thereafter until the dividend is received, and (C) such stock and position are clearly identified in the taxpayer's records within 30 days after the date of the enactment of this Act. Stock shall not be treated as meeting the requirement of subparagraph (B) if the position is sold, closed, or otherwise terminated and reestablished. Subtitle C—Administrative Provisions SEC. 1021. REPORTING OF CERTAIN PAYMENTS MADE TO ATTORNEYS. (a) IN GENERAL. —Section 6045 (relating to returns of brokers) is amended by adding at the end the following new subsection: "(f) RETURN REQUIRED IN THE CASE OF PAYMENTS TO ATTOR- NEYS.— "(1) IN GENERAL.—Any person engaged in a trade or business and making a payment (in the course of such trade or business) to which this subsection applies shall file a return under subsection (a) and a statement under subsection (b) with respect to such payment. " (2) APPLICATION OF SUBSECTION. — "(A) IN GENERAL.—T h is subsection shall apply to any payment to an attorney in connection with legal services (whether or not such services are performed for the payor). "(B) EXCEPTION. —T h is subsection shall not apply to the portion of any payment which is required to be reported

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