Page:United States Statutes at Large Volume 83.djvu/556

 528 e/st^u^yVs^^^' 26 USC 542.

68A^stat 232

^^AStat. 282;

68A Stat. 358.

Anfe, p. 518.

72 Stat. 1623. Post, p. 550.

73 Stat. 617.

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

(16) Section 542(a)(2) (relating to stock ownership requirement) is amended— (A) by striking out in the second sentence "section 503 (b)" and inserting in lieu thereof "section 401(a), 501(c) (17), or 509(a)", and (B) by amending the third sentence to read as follows: "The preceding sentence shall not apply in the case of an organization or trust organized or created before July 1, 1950, if at all times on or after July 1, 1950, and before the close of the taxable year such organization or trust has owned all of the common stock and at least 80 percent of the total number of shares of all other classes of stock of the corporation." (17) Section 663(a)(2) (relating to charitable, etc., distributions) is amended by striking out "section 681" and inserting in lieu thereof "sections 508(d), 681, and 4948(c)(4)". (^^) Section 681(b) and (c) (relating to operations of trusts and accumulated income) is repealed. (19) Section 681(d) (relating to cross reference) is redesignated as subsection (b), and as so redesignated is amended by striking out "section 503(e) " and inserting in lieu thereof "sections 508(d) and 4948 (c)(4) ". ^20) Section 878 (relating to foreign educational, charitable, and certain other exempt organizations) is amended by— (A) striking out "unrelated business incoltne of", and (B) striking out "trusts, see section 512(a)" and inserting in lieu thereof "organizations, see sections 512(a) and 4948". (21) Section 884 (relating to cross references) is amended by striking out paragraph (1) and by redesignating paragraphs (2), (3), (4), (5), and (6) as paragraphs (1), (2), (3), (4), and (5), respectively. ^22) Section 1443 (relating to foreign tax-exempt organizations) is amended by— (A) inserting " (a) INCOME SUBJECT TO SECTION 511.—" before " I n the case of", and (B) adding subsection (b) to read as follows: "(b) INCOME SUBJECT TO SECTION 4948.—In the case of income of a forelgu organization subject to the tax imposed by section 4948(a), this chapter shall apply, except that the deduction and withholding shall be at the rate of 4 percent and shall be subject to such conditions as may be provided under regulations prescribed by the Secretary or his delesrate." (23) Section 2039(c)(3) (relating to exemption of annuities under certain trusts and plans) is amended by striking out "section 503(b)(1), (2), or (3)," and inserting in lieu thereof "section 1 7 0 (b)(1)(A) (ii) or (vi), or which is a religious organization (other than a trust),". (24) Section 2517(a)(3) (relating to general rule for certain annuities under qualified plans) is amended by striking out "section 503(b)(1), (2), -or (3)," and inserting in lieu thereof ""section 170(b)(1)(A) (ii) or (vi), or which is a religious organization (other than a trust),". (25) Section 4057(b) (relating to the definition of nonprofit educational organization) is amended by striking out "section 503(b)(2) " and inserting in lieu thereof "section 170(b)(1)(A) (ii)".

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