Page:United States Statutes at Large Volume 115 Part 3.djvu/364

 115 STAT. 2438 PUBLIC LAW 107-134-^AN. 23, 2002 26 USC 5891 note. Applicability. Applicability. "(A) the aggregate undiscounted amount of structured settlement payments being acquired in the structured settlement factoring transaction, over "(B) the total amount actually paid by the acquirer to the person from whom such structured settlement pay- ments are acquired. "(5) RESPONSIBLE ADMINISTRATIVE AUTHORITY. — The term 'responsible administrative authority' means the administrative authority which had jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement. "(6) STATE. —The term 'State' includes the Commonwealth of Puerto Rico and any possession of the United States. "(d) COORDINATION WITH OTHER PROVISIONS.— "(1) IN GENERAL.— If the applicable requirements of sections 72, 104(a)(1), 104(a)(2), 130, and 461(h) were satisfied at the time the structured settlement involving structured settlement payment rights was entered into, the subsequent occurrence of a structured settlement factoring transaction shall not affect the application of the provisions of such sections to the parties to the structured settlement (including an assignee under a qualified assignment under section 130) in any taxable year. "(2) No WITHHOLDING OF TAX.— The provisions of section 3405 regarding withholding of tax shall not apply to the person making the payments in the event of a structured settlement factoring transaction.". (b) CLERICAL AMENDMENT.— The table of chapters for subtitle E is amended by adding at the end the following new item: "Chapter 55. Structured settlement factoring transactions.". (c) EFFECTIVE DATES. — (1) IN GENERAL.— The amendments made by this section (other than the provisions of section 5891(d) of the Internal Revenue Code of 1986, as added by this section) shall apply to structured settlement factoring transactions (as defined in section 5891(c) of such Code (as so added)) entered into on or after the 30th day following the date of the enactment of this Act. (2) CLARIFICATION OF EXISTING LAW.—Section 5891(d) of such Code (as so added) shall apply to structured settlement factoring transactions (as defined in section 5891(c) of such Code (as so added)) entered into before, on, or after such 30th day. (3) TRANSITION RULE.— In the case of a structured settlement factoring transaction entered into during the period beginning on the 30th day following the date of the enactment of this Act and ending on July 1, 2002, no tax shall be imposed under section 5891(a) of such Code if— (A) the structured settlement payee is domiciled in a State (or possession of the United States) which has not enacted a statute providing that the structured settlement factoring transaction is ineffective unless the transaction has been approved by an order, judgment, or decree of a court (or where applicable, a responsible administrative authority) which finds that such transaction—

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