Page:United States Statutes at Large Volume 112 Part 1.djvu/840

 112 STAT. 814 PUBLIC LAW 105-206-JULY 22, 1998 fact that the shareholders of the distributing corporation dispose of part or all of the distributed stock shall not be taken into account.". (d) AMENDMENTS RELATED TO SECTION 1013 OF 1997 ACT. — (1) Paragraph (5) of section 304(b) of the 1986 Code is amended by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B). (2) Subsection (b) of section 304 of the 1986 Code is amended by adding at the end the following new paragraph: Regulations. "(6) AVOIDANCE OF MULTIPLE INCLUSIONS, ETC. — In the case of any acquisition to which subsection (a) applies in which the acquiring corporation or the issuing corporation is a foreign corporation, the Secretary shall prescribe such regulations as are appropriate in order to eliminate a multiple inclusion of any item in income by reason of this subpart and to provide appropriate basis adjustments (including modifications to the application of sections 959 and 961).". (e) AMENDMENTS RELATED TO SECTION 1014 OF 1997 ACT. — (1) Paragraph (1) of section 351(g) of the 1986 Code is amended by adding "and" at the end of subparagraph (A) and by striking subparagraphs (B) and (C) and inserting the following new subparagraph: "(B) if (and only if) the transferor receives stock other than nonqualified preferred stock— "(i) subsection (b) shall apply to such transferor; and "(ii) such nonqualified preferred stock shall be treated as other property for purposes of applying subsection (b).". (2) Clause (ii) of section 354(a)(2)(C) of 1986 Code is amended by adding at the end the following new subclause: "(III) EXTENSION OF STATUTE OF LIMITA- TIONS.—The statutory period for the assessment of any deficiency attributable to a corporation failing to be a family-owned corporation shall not expire before the expiration of 3 years after the date the Secretary is notified by the corporation (in such manner as the Secretary may prescribe) of such failure, and such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.". (f) AMENDMENT RELATED TO SECTION 1024 OF 1997 ACT. — Section 6331(h)(1) of the 1986 Code is amended by striking "The effect of a levy" and inserting "If the Secretary approves a levy under this subsection, the effect of such levy". (g) AMENDMENTS RELATED TO SECTION 1031 OF 1997 ACT. — (1) Subsection (1) of section 4041 of the 1986 Code is amended by striking "subsection (e) or (f)" and inserting "subsection (f) or (g)". (2) Subsection (b) of section 9502 of the 1986 Code is amended by moving the sentence added at the end of paragraph (1) to the end of such subsection. (3) Subsection (c) of section 6421 of the 1986 Code is amended— (A) by striking "(2)(A)" and inserting "(2)"; and

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