Page:United States Statutes at Large Volume 124.djvu/3566

 124 STAT. 3540 PUBLIC LAW 111–325—DEC. 22, 2010 ‘‘(i) such failure is due to the ownership of assets the total value of which does not exceed the lesser of— ‘‘(I) 1 percent of the total value of the corpora- tion’s assets at the end of the quarter for which such measurement is done, or ‘‘(II) $10,000,000, and ‘‘(ii)(I) the corporation, following the identification of such failure, disposes of assets in order to meet the requirements of such subsection within 6 months after the last day of the quarter in which the corpora- tion’s identification of the failure to satisfy the require- ments of such subsection occurred or such other time period prescribed by the Secretary and in the manner prescribed by the Secretary, or ‘‘(II) the requirements of such subsection are other- wise met within the time period specified in subclause (I). ‘‘(C) TAX.— ‘‘(i) TAX IMPOSED.—If subparagraph (A) applies to a corporation for any quarter, there is hereby imposed on such corporation a tax in an amount equal to the greater of— ‘‘(I) $50,000, or ‘‘(II) the amount determined (pursuant to regu- lations promulgated by the Secretary) by multi- plying the net income generated by the assets described in the schedule specified in subpara- graph (A)(i) for the period specified in clause (ii) by the highest rate of tax specified in section 11. ‘‘(ii) PERIOD.—For purposes of clause (i)(II), the period described in this clause is the period beginning on the first date that the failure to satisfy the require- ments of subsection (b)(3) occurs as a result of the ownership of such assets and ending on the earlier of the date on which the corporation disposes of such assets or the end of the first quarter when there is no longer a failure to satisfy such subsection. ‘‘(iii) ADMINISTRATIVE PROVISIONS.—For purposes of subtitle F, a tax imposed by this subparagraph shall be treated as an excise tax with respect to which the deficiency procedures of such subtitle apply.’’. (b) GROSS INCOME TEST.—Section 851 is amended by adding at the end the following new subsection: ‘‘(i) FAILURE TO SATISFY GROSS INCOME TEST.— ‘‘(1) DISCLOSURE REQUIREMENT.—A corporation that fails to meet the requirement of paragraph (2) of subsection (b) for any taxable year shall nevertheless be considered to have satisfied the requirement of such paragraph for such taxable year if— ‘‘(A) following the corporation’s identification of the failure to meet such requirement for such taxable year, a description of each item of its gross income described in such paragraph is set forth in a schedule for such taxable year filed in the manner provided by the Secretary, and 26 USC 851. Deadline.