Page:United States Statutes at Large Volume 116 Part 1.djvu/66

 116 STAT. 40 PUBLIC LAW 107-147—MAR. 9, 2002 Applicability. 26 USC 38 note. (3) EFFECTIVE DATE.— The amendments made by this subsection shall apply to taxable years ending after December 31, 200L (c) CLERICAL AMENDMENT.— The table of subchapters for chapter 1 is amended by adding at the end the following new item: "Subchapter Y—New York Liberty Zone Benefits.". TITLE IV—MISCELLANEOUS AND TECHNICAL PROVISIONS Subtitle A—General Miscellaneous Provisions 26 USC 6041 note. 26 USC 108. 26 USC 108 note. Applicability. SEC. 401. ALLOWANCE OF ELECTRONIC 1099'S. Any person required to furnish a statement under any section of subpart B of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 for any taxable year ending after the date of the enactment of this Act, may electronically furnish such statement (without regard to any first class mailing requirement) to any recipient who has consented to the electronic provision of the statement in a manner similar to the one permitted under regulations issued under section 6051 of such Code or in such other manner as provided by the Secretary. SEC. 402. EXCLUDED CANCELLATION OF INDEBTEDNESS INCOME OF S CORPORATION NOT TO RESULT IN ADJUSTMENT TO BASIS OF STOCK OF SHAREHOLDERS. (a) IN GENERAL. —Subparagraph (A) of section 108(d)(7) (relating to certain provisions to be applied at corporate level) is amended by inserting before the period ", including by not taking into account under section 1366(a) any amount excluded under subsection (a) of this section". (b) EFFECTIVE DATE. — (1) IN GENERAL.— Except as provided in paragraph (2), the amendment made by this section shall apply to discharges of indebtedness after October 11, 2001, in taxable years ending after such date. (2) EXCEPTION.— The amendment made by this section shall not apply to any discharge of indebtedness before March 1, 2002, pursuant to a plan of reorganization filed with a bankruptcy court on or before October 11, 2001. SEC. 403. LIMITATION ON USE OF NONACCRUAL EXPERIENCE METHOD OF ACCOUNTING. (a) IN GENERAL. — Paragraph (5) of section 448(d) is amended to read as follows: "(5) SPECIAL RULE FOR CERTAIN SERVICES. — "(A) IN GENERAL.—In the case of any person using an accrual method of accounting with respect to amounts to be received for the performance of services by such person, such person shall not be required to accrue any
 * portion of such amounts which (on the basis of such person's experience) will not be collected if—

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