Page:United States Statutes at Large Volume 94 Part 2.djvu/1409

 PUBLIC LAW 96-499—DEC. 5, 1980

94 STAT. 2687

"(3) MAKING OF ELECTION.—An election under paragraph (1) may be made only subject to such conditions as may be prescribed by the Secretary." (b) CLERICAL AMENDMENT.—The table of sections for such subpart C is amended by adding at the end thereof the following new item: "SEC. 897. Disposition of investment in United States real property." (c) CROSS REFERENCES.—

26 USC 87i.

(1) Subsection (g) of section 871 of such Code (relating to tax on income of nonresident alien individuals) is amended by adding at the end thereof the following new paragraph: "(8) For special tax treatment of gain or loss from the disposition by a nonresident alien individual of a United States real property interest, see section 897."

(2) Subsection (a) of section 882 of such Code (relating to tax on 26 USC 882. income of foreign corporation connected with United States business) is amended by adding at the end thereof the following new paragraph: "(3) For special tax treatment of gain or loss from the dispositi<m by a foreign corporation of a United States real property interest, see section 897." SEC. 1123. REPORTING RKQl'lREMKNTS.

(a) GENERAL RULE.—Subpart A of part III of chapter 61 of the Internal Revenue Code of 1954 (relating to information returns concerning persons subject to special provisions) is amended by inserting after section 6039B the following new section: "SEC. 6039C. RETURNS WITH RESPECT TO UNITED STATES REAL PROPERTY INTERESTS,

26 USC 6039C.

"(a) RETURN OF CERTAIN DOMESTICORPORATIONS HAVING FOREIGN SHAREHOLDERS.— "(1) GENERAL RULE.—

"(A) RETURN REQUIREMENT.—If this subsection applies to a domestic corporation for the calendar year, such corporation shall make a return for the calendar year setting forth— "(i) the name and address (if known by the corporation) of each person who was a shareholder at any time during the calendar year and who is known by the corporation to be a foreign person, "(ii) such information with respect to transfers of stock in such corporation to or from foreign persons during the calendar year as the Secretary may by regulations prescribe, and "(iii) such other information as the Secretary may by regulations prescribe. "(B) CORPORATIONS TO WHICH SUBSECTION APPLIES.—This

subsection applies to any domestic corporation for the calendar year if— "(i) at any time during the calendar year 1 or more of the shareholders of such corporation is a foreign person, and "(ii) at any time during the calendar year or during any of the 4 immediately preceding calendar years, such corporation was a United States real property holding corporation (as defined in section 897(c)(2)). Ante, p. 2682.

79-194

O—81—pt. 2

89: QL3

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