Page:United States Statutes at Large Volume 90 Part 2.djvu/403

 PUBLIC LAW 94-455—OCT. 4, 1976 amount for which the time for payment has been extended under section 6166 or 6166A."

90 STAT. 1871 -Ante, p. 1862.

(e) AMENDMENTS OF SECTION 303.— (1) E X T E N S I O N o r PERIOD FOR DISTRIBUTION.—Paragraph (1) of

section 303(b) (relating to distributions in redemption of stock to p a y death taxes) is amended by striking out " o r " a t the end of subparagraph (A), by striking out the period a t the end of subparagraph (B) and inserting in lieu thereof ", or ", and by a d d i n g a t the end thereof the following new subparagraph: " (C) I f a n election has been made under section 6166 or 6166A and if the time prescribed by this subparagraph expires a t a later date than the time prescribed by subparagraph (B) of this paragraph, within the time determined under section 6166 o r 6166A for the payment of the installments." (2)

26 USC 303.

RELATIONSHIP OF STOCK TO DECEDENT'S ESTATE.—

(A) Subparagraph (A) of section 303(b)(2) is amended to read as follows: " (A) IN GENERAL.—Subsection (a) shall apply to a distribution by a corporation only if the value ( for Federal estate tax purposes) of all of the stock of such corporation which is included in determining the value of the decedent's gross estate exceeds 50 percent of the excess of— " (i) the value of the gross estate of such decedent, over " ( i i) the sum of the amounts allowable as a deduction under section 2053 or 2054." (B) The first sentence of subparagraph (B) of section 303 (b)(2) is amended by striking out " the 35 percent and 50 percent requirements" and inserting in lieu thereof " the 50 percent requirement".

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(3) RELATIONSHIP OF SHAREHOLDER TO ESTATE TAX.—Subsection

(b) of section 303 is amended by a d d i n g at the end thereof the following new paragraph s:



" (3) RELATIONSHIP OF SHAREHOLDER TO ESTATE TAX.—Subsection

(a) shall a p p l y to a distribution by a corporation only to the extent that the interest of the shareholder is reduced directly (or through a binding obligation to contribute) by any payment of an amount described in paragraph (1) or (2) of subsection (a). "(4)

ADDITIONAL REQUIREMENTS FOR DISTRIBUTIONS MADE MORE

THAN 4 YEARS AFTER DECEDENT'S DEATH.—In the case of amounts distributed more than 4 years after the date of the decedent's death, subsection (a) shall a p p l y to a distribution by a corporation only to the extent of the lesser of— " (A) the aggregate of the amounts referred to in paragraph (1) or (2) of subsection (a) which remained unpaid immediately before the distribution, or " (B) the aggregate of the amounts referred to in paragraph (1) o r (2) of subsection (a) which are p a i d during the 1-year period beginning on the date of such distribution." (4) STOCK W I T H SUBSTITUTED BASIS.—Subsection (c) of section

303 ( r e l a t i n g to stock with substituted basis) is amended by striking out "limitation specified in subsection (b)(1) " and inserting in lieu thereof "limtations specified in subsection (b) ". (f)

T E C H N I C A L, CLERICAL, AND CONFORMING C H A N G E S. —

(1) The table of sections for subchapter C of chapter 64 is amended by inserting after the item relating to section 6324 the followinsr new item:

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