Page:United States Statutes at Large Volume 80 Part 1.djvu/1620

 1584

PUBLIC LAW 89-809-NOV. 13, 1966

[80 STAT.

" (i) NONQUALIFIED P E R - U N I T RETAIN CERTIFICATE.—For purposes

of this subchapter, the term 'nonqualified per-unit retain certificate' means a per-unit retain certificate which is not described in subsection (h). " 76 Stat. 1054.

Ante, p. 1582. Ante,

p. 1581.

(d) INFORMATION REPORTING.— ^-[^^ A M O U N T S SUBJECT TO REPORTING.

SectioU 6 0 4 4 (b)(1)

is

amended by striking out "and" at the end of subparagraph (B), by striking out the period at the end of subparagraph (C) and inserting in lieu thereof ", and", and by adding after subparagraph (C) the following new subparagraphs: " (D) the amount of any per-unit retain allocation (as defined in section 1388(f)) which is paid in qualified per-unit retain certificates (as defined in section 1388(h)), and " (E) any amount described in section 1382(b)(4) (relating to redemption of nonqualified per-unit retain certificates)." (2)

DETERMINATION OF AMOUNT PAID.—

(A) Section 6044(d)(1) is amended by striking out "allocation)" and inserting in lieu thereof "allocation or a qualified per-unit retain certificate)". (B) Section 6044(d)(2) is amended by striking out "allocation" and inserting in lieu thereof "allocation or a qualified per-unit retain certificate". (e)

76 Stat. 1045.

EFFECTIVE DATES.—

(1) The amendments made by subsections (a), (b), and (c) shall apply to per-unit retain allocations made during taxable years of an organization described in section 1381(a) (relating to organizations to which part I of subchapter T of chapter 1 applies) beginning after April 30, 1966, with respect to products delivered during such years. (2) The amendments made by subsection (d) shall apply with respect to calendar years after 1966. (f) TRANSITION RULE. —

(1) Except as provided in paragraph (2), a written agreement between a patron and a cooperative association— (A) which clearly provides that the patron agrees to treat the stated dollar amounts of all per-unit retain certificates issued to him by the association as representing cash distributions which he has, of his own choice, reinvested in the cooperative association, (B) which is revocable by the patron at any time after the close of the taxable year in which it was made, (C) which was entered into after October 14, 1965, and before the date of the enactment of this Act, and (D) which is in effect on the date of the enactment of this Act, and with respect to which a written notice of revocation has not been furnished to the cooperative association, shall be effective (for the period prescribed in the agreement) for purposes of section 1388(h) of the Internal Revenue Code of 1954 as if entered into, pursuant to such section, after the date of the enactment of this Act. (2) An agreement described in paragraphs (1)(A) and (C) which was included in a by-law of the cooperative association and which is in effect on the date of the enactment of this Act shall be effective for purposes of section 1388(h) of such Code only for taxable years of the association beginning before May 1, 1967.

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