Page:United States Statutes at Large Volume 90 Part 2.djvu/81

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1549

(3) SEC5TI0N 709(b) OF THE CODE.—Section 709(b) of the I n t e r n a l Revenue Code of 1954 (as added by the amendment made by subsection (b)(1) of this section) shall apply in the case of amounts paid or incurred in taxable years b e g i n n m g after December 31, 1976. SEC. 214. SCOPE OF WAIVER OF STATUTE OF LIMITATIONS IN CASE OF ACTIVITIES NOT ENGAGED IN FOR PROFIT. (a) IN GENERAL.—Subsection (e) of section 183 (relating to spe- 26 USC 183. cial rule for activities not engaged in for profit) is amended by adding at the end thereof the following new paragraph: "(4)

T I M E FOR ASSESSING DEFICIENCY ATTRIBUTABLE TO ACTIV-

I T Y. — I f a tax p a y e r makes an election under paragraph (1) with respect to an activity, the statutory period for the assessment of any deficiency attributable to such activity shall not expire before the expiration of 2 years after the date prescribed by law (deter* mined without extensions) for filing the return of tax under chapter 1 for the last taxable year in the period of 5 taxable years (or 7 taxable years) to which the election relates. Such deficiency may be assessed notwithstanding the provisions of any law or rule of law which would otherwise prevent such an assessment.", (b) CROSS R E F E R E N C E. — Paragraph (2) of section 6212(c) (relat- Post, p. 1803. i n g to restriction of further deficiency letters) is amended by adding 26 USC 6212. at the end thereof the following new subparagraph: "(E) Deficiency attributable to activities not engaged in for profit, see section 183(e)(4).". Supra.

(c) EFFECTIVE D A T E. — The amendments made by this section shall 26 USC 183 a p p l y with respect to taxable years beginning after December 31, note. 1969; except that such amendments shall not apply to any taxable year ending before the date of the enactment of this Act with respect to which the period for assessing a deficiency has expired before such date of enactment.

TITLE III—MINIMUM TAX AND MAXIMUM TAX SEC. 301. MINIMUM TAX. (a) IN GENERAL.—Subsection (a) of section 56 (relating to mini- 26 USC 56. m u m tax for tax preferences) is amended to read as follows: " (a) GENERAL RULE. — I n addition to the other taxes imposed by this chapter, there is hereby imposed for each taxable year, with respect to the income of every person, a tax equal to 15 percent of the amount by which the sum of the items of tax preference exceeds the greater of— " (1) $10,000, o r " (2) the regular tax deduction for the taxable year (as determined under subsection (c)). " Poif, p. 1550. (b)

CONFORMING C H A N G E S. —

(1) Section 56(b) (relating to deferral of tax liability in case of certain net operating losses) is amended— (A) by striking out "$30,000" in paragraph (1)(B) and inserting in lieu thereof "$10,000", and (B) by striking out "10 percent" in paragraph s (1) and (2) and inserting in lieu thereof "15 percent".

89-194 0—78—pt. 2

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