Page:United States Statutes at Large Volume 118.djvu/1630

 118 STAT. 1600 PUBLIC LAW 108–357—OCT. 22, 2004 that the taxpayer identifies such amount as a deposit made pursuant to section 6603 of the Internal Revenue Code (as added by this Act) shall be treated as the date such amount is deposited for purposes of such section 6603. SEC. 843. PARTIAL PAYMENT OF TAX LIABILITY IN INSTALLMENT AGREEMENTS. (a) IN GENERAL.— (1) Section 6159(a) (relating to authorization of agreements) is amended— (A) by striking ‘‘satisfy liability for payment of’’ and inserting ‘‘make payment on’’, and (B) by inserting ‘‘full or partial’’ after ‘‘facilitate’’. (2) Section 6159(c) (relating to Secretary required to enter into installment agreements in certain cases) is amended in the matter preceding paragraph (1) by inserting ‘‘full’’ before ‘‘payment’’. (b) REQUIREMENT TO REVIEW PARTIAL PAYMENT AGREEMENTS EVERY TWO YEARS.—Section 6159 is amended by redesignating subsections (d) and (e) as subsections (e) and (f), respectively, and inserting after subsection (c) the following new subsection: ‘‘(d) SECRETARY REQUIRED TO REVIEW INSTALLMENT AGREE MENTS FOR PARTIAL COLLECTION EVERY TWO YEARS.—In the case of an agreement entered into by the Secretary under subsection (a) for partial collection of a tax liability, the Secretary shall review the agreement at least once every 2 years.’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to agreements entered into on or after the date of the enactment of this Act. SEC. 844. AFFIRMATION OF CONSOLIDATED RETURN REGULATION AUTHORITY. (a) IN GENERAL.—Section 1502 is amended by adding at the end the following new sentence: ‘‘In carrying out the preceding sentence, the Secretary may prescribe rules that are different from the provisions of chapter 1 that would apply if such corporations filed separate returns.’’. (b) RESULT NOT OVERTURNED.—Notwithstanding the amend ment made by subsection (a), the Internal Revenue Code of 1986 shall be construed by treating Treasury Regulation § 1.1502 20(c)(1)(iii) (as in effect on January 1, 2001) as being inapplicable to the factual situation in Rite Aid Corporation and Subsidiary Corporations v. United States, 255 F.3d 1357 (Fed. Cir. 2001). (c) EFFECTIVE DATE.—This section, and the amendment made by this section, shall apply to taxable years beginning before, on, or after the date of the enactment of this Act. SEC. 845. EXPANDED DISALLOWANCE OF DEDUCTION FOR INTEREST ON CONVERTIBLE DEBT. (a) IN GENERAL.—Paragraph (2) of section 163(l) is amended by inserting ‘‘or equity held by the issuer (or any related party) in any other person’’ after ‘‘or a related party’’. (b) CAPITALIZATION ALLOWED WITH RESPECT TO EQUITY OF PERSONS OTHER THAN ISSUER AND RELATED PARTIES.—Section 163(l) is amended by redesignating paragraphs (4) and (5) as para graphs (5) and (6) and by inserting after paragraph (3) the following new paragraph: 26 USC 1502 note. 26 USC 6159 note.

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