Page:United States Statutes at Large Volume 118.djvu/1671

 118 STAT. 1641 PUBLIC LAW 108–357—OCT. 22, 2004 on what constitutes a change in ownership or effective control for purposes of section 409A of the Internal Revenue Code of 1986, as added by this section. (f) GUIDANCE RELATING TO TERMINATION OF CERTAIN EXISTING ARRANGEMENTS.—Not later than 60 days after the date of the enactment of this Act, the Secretary of the Treasury shall issue guidance providing a limited period during which a nonqualified deferred compensation plan adopted before December 31, 2004, may, without violating the requirements of paragraphs (2), (3), and (4) of section 409A(a) of the Internal Revenue Code of 1986 (as added by this section), be amended— (1) to provide that a participant may terminate participa tion in the plan, or cancel an outstanding deferral election with regard to amounts deferred after December 31, 2004, but only if amounts subject to the termination or cancellation are includible in income of the participant as earned (or, if later, when no longer subject to substantial risk of forfeiture), and (2) to conform to the requirements of such section 409A with regard to amounts deferred after December 31, 2004. SEC. 886. EXTENSION OF AMORTIZATION OF INTANGIBLES TO SPORTS FRANCHISES. (a) IN GENERAL.—Section 197(e) (relating to exceptions to defi nition of section 197 intangible) is amended by striking paragraph (6) and by redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively. (b) CONFORMING AMENDMENTS.— (1)(A) Section 1056 (relating to basis limitation for player contracts transferred in connection with the sale of a franchise) is repealed. (B) The table of sections for part IV of subchapter O of chapter 1 is amended by striking the item relating to section 1056. (2) Section 1245(a) (relating to gain from disposition of certain depreciable property) is amended by striking paragraph (4). (3) Section 1253 (relating to transfers of franchises, trade marks, and trade names) is amended by striking subsection (e). (c) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to property acquired after the date of the enactment of this Act. (2) SECTION 1245.—The amendment made by subsection (b)(2) shall apply to franchises acquired after the date of the enactment of this Act. SEC. 887. MODIFICATION OF CONTINUING LEVY ON PAYMENTS TO FED ERAL VENDORS. (a) IN GENERAL.—Section 6331(h) (relating to continuing levy on certain payments) is amended by adding at the end the following new paragraph: ‘‘(3) INCREASE IN LEVY FOR CERTAIN PAYMENTS.—Paragraph (1) shall be applied by substituting ‘100 percent’ for ‘15 percent’ in the case of any specified payment due to a vendor of goods or services sold or leased to the Federal Government.’’. Applicability. 26 USC 197 note. Deadline. 26 USC 409A note.

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