Page:United States Statutes at Large Volume 111 Part 1.djvu/973

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 949 (1) EXCESS DISTRIBUTION TAX REPEAL.—Except as provided Applicability. in paragraph (2), the repeal made by subsection (a) shall apply to excess distributions received after December 31, 1996. (2) EXCESS RETIREMENT ACCUMULATION TAX REPEAL. —The repeal made by subsection (a) with respect to section 4980A(d) of the Internal Revenue Code of 1986 and the amendments made by subsection (b) shall apply to estates of decedents dying after December 31, 1996. SEC. 1074. INCREASE IN TAX ON PROHIBITED TRANSACTIONS. (a) IN GENERAL.— Section 4975(a) is amended by striking "10 percent" and inserting "15 percent". (b) EFFECTIVE DATE. —The amendment made by this section 26 USC 4975 shall apply to prohibited transactions occurring after the date of note. the enactment of this Act. SEC. 1075. BASIS RECOVERY RULES FOR ANNUITIES OVER MORE THAN ONE LIFE. (a) IN GENERAL.—Section 72(d)(1)(B) is amended by adding at the end the following new clause: "(iv) NUMBER OF ANTICIPATED PAYMENTS WHERE MORE THAN ONE LIFE. —If the annuity is payable over the lives of more than 1 individual, the number of anticipated payments shall be determined as follows: "If the combined ages of annuitants are: The number is: Not more than 110 410 More than 110 but not more than 120 360 More than 120 but not more than 130 310 More than 130 but not more than 140 260 More than 140 210.". (b) CONFORMING AMENDMENT.— Section 72(d)(l)(B)(iii) is amended— (1) by inserting "If the annuity is payable over the life of a single individual, the number of anticipated payments shall be determined as follows:" after i;he heading and before the table, and (2) by striking "primary" in the table. (c) EFFECTIVE DATE. —The amendments made by this section 26 USC 72note. shall apply with respect to annuity starting dates beginning after December 31, 1997. Subtitle I—Other Revenue Provisions SEC 1081. TERMINATION OF SUSPENSE ACCOUNTS FOR FAMILY COR- PORATIONS REQUIRED TO USE ACCRUAL METHOD OF ACCOUNTING. (a) IN GENERAL.— Subsection (i) of section 447 (relating to method of accounting for corporations engaged in farming) is amended by striking paragraphs (3) and (4), by redesignating paragraphs (5) and (6) as paragraphs (3) and (4), respectively, and by adding at the end the following new paragraph: " (5) TERMINATION.— "(A) IN GENERAL. —No suspense account may be established under this subsection by any corporation required by this section to change its method of accounting for any taxable year ending after June 8, 1997.

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