Page:United States Statutes at Large Volume 114 Part 5.djvu/688

 114 STAT. 2763A-648 PUBLIC LAW 106-554^APPENDIX G (26) Paragraph (2) of section 7603(b) is amended by striking the semicolon at the end of subparagraphs (A), (B), (C), (D), (E), (F), and (G) and inserting a comma. (27) Clause (ii) of section 7802(b)(2)(B) is amended by striking "; and" at the end and inserting ", and". (28) Paragraph (3) of section 7811(a) is amended by striking "taxpayer assistance order" and inserting "Taxpayer Assistance Order". (29) Paragraph (1) of section 7811(d) is amended by striking "Ombudsman's" and inserting "National Taxpayer Advocate's". (30) Paragraph (3) of section 7872(f) is amended by striking "foregoing" and inserting "forgoing". TITLE IV—TAX TREATMENT OF SECURITIES FUTURES CONTRACTS SEC. 401, TAX TREATMENT OF SECURITIES FUTURES CONTRACTS. (a) IN GENERAL.— Subpart IV of subchapter P of chapter 1 (relating to special rules for determining gains and losses) is amended by inserting after section 1234A the following new section: " SEC. 1234B. GAINS OR LOSSES FROM SECURITIES FUTURES CON- TRACTS. "(a) TREATMENT OF GAIN OR LOSS.— "(1) IN GENERAL.— Gain or loss attributable to the sale or exchange of a securities futures contract shall be considered gain or loss from the sale or exchange of property which has the same character as the property to which the contract relates has in the hands of the taxpayer (or would have in the hands of the taxpayer if acquired by the taxpayer). "(2) NONAPPLICATION OF SUBSECTION.—T his subsection shall not apply to— "(A) a contract which constitutes property described in paragraph (1) or (7) of section 1221(a), and "(B) any income derived in connection with a contract which, without regard to this subsection, is treated as other than gain from the sale or exchange of a capital asset. "(b) SHORT-TERM GAINS AND LOSSES. —Except as provided in the regulations under section 1092(b) or this section, if gain or loss on the sale or exchange of a securities futures contract to sell property is considered as gain or loss from the sale or exchange of a capital asset, such gain or loss shall be treated as shortterm capital gain or loss. "(c) SECURITIES FUTURES CONTRACT. —For purposes of this section, the term 'securities futures contract' means any security future (as defined in section 3(a)(55)(A) of the Securities Exchange Act of 1934, as in effect on the date of the enactment of this section). "(d) CONTRACTS NOT TREATED AS COMMODITY FUTURES CON- TRACTS.— For purposes of this title, a securities futures contract shall not be treated as a commodity futures contract. "(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to provide for the proper treatment of securities futures contracts under this title.". (b) TERMINATIONS, ETC.—Section 1234A is amended—

�