Page:United States Statutes at Large Volume 94 Part 3.djvu/828

 94 STAT. 3472 26 USC 4942.

26 USC 4943. 26 USC 6213.

Post, p. 3473. 26 USC 6503.

26 USC 6503 oa^i^n «r;AQ lb ubc b50d.

PUBLIC LAW 96-596—DEC. 24, 1980 (A) Clause (ii) of section 4942(g)(2)(C) is amended by striking out "the initial correction period provided in subsection (j)(2)" and inserting in lieu thereof "the correction period (as defined in section 4962(e))". (B) Subparagraph (A) of section 4943(d)(3) (as redesignated by paragraph (3)(c)) is amended by striking out "4942(j)(5)" and inserting in lieu thereof "4942(j)(4)". (C) Subsection (e) of section 6213 (relating to suspension of filing period for certain excise taxes) is amended by striking out "section 4941(e)(4)" and all that follows through the end of such subsection and inserting in lieu thereof "section 4962(e)." (D) Subsection (g) of section 6503 (relating to suspension of running of period of limitation pending correction) is amended by striking out "section 4941(e)(4)" and all that follows through the end of such subsection and inserting in lieu thereof "section 4962(e)." (E) Section 6503 is amended by redesignating subsection (j) as subsection (i). (F) The amendments made by sections 1203(h)(1) and 1601(f)(2) of the Tax Reform Act of 1976, and the amendment ^ ^ ^ g ^^ section 362(d)(5) of the Revenue Act of 1978, shall be deemed to be amendments to section 6503(i) of the Internal Revenue Code of 1954 (as redesignated by subparagraph (E)). (b) TAX COURT TO DETERMINE WHETHER TAXABLE EVENT HAS BEEN

26 USC 6214. Post, p. 3473.

CORRECTED.—Subsection (c) of section 6214 (relating to determina tions by Tax Court) is amended by adding at the end thereof the following new sentence: "The Tax Court, in redetermining a deficiency of any second tier tax (as defined in section 4962(b)), shall make a determination with respect to whether the taxable event has been corrected." (c) ABATEMENT OF TAX WHERE THERE IS CORRECTION DURING CORRECTION PERIOD.—

(1) IN GENERAL.—Chapter 42 is amended by adding at the end thereof the following new subchapter: "Subchapter C—Abatement of Second Tier Taxes Where There Is Correction During Correction Period "Sec. 4961. Abatement of second tier taxes where there is correction. "Sec. 4962. Definitions. 26 USC 4961.

"SEC. 4961. ABATEMENT OF SECOND TIER TAXES WHERE THERE IS CORRECTION. "(a) GENERAL RULE.—If any taxable event is corrected during the

correction period for such event, then any second tier tax imposed with respect to such event (including interest, additions to the tax, and additional amounts) shall not be assessed, and if assessed the assessment shall be abated, and if collected shall be credited or refunded as an overpayment. "(b) SUPPLEMENTAL PROCEEDING.—If the determination by a court that the taxpayer is liable for a second tier tax has become final, such court shall have jurisdiction to conduct any necessary supplemental proceeding to determine whether the taxable event was corrected during the correction period. Such a supplemental proceeding may be begun only during the period which ends on the 90th day after the last day of the correction period. Where such a supplemental proceeding has begun, the reference in the second sentence of section 6213(a)

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