Page:United States Statutes at Large Volume 94 Part 3.djvu/865

 PUBLIC LAW 96-603—DEC. 28, 1980

94 STAT. 3509

"(iii) PERMISSIBLE RANGE.—For purposes of this subparagraph, the term 'permissible range' means a rate of interest which is not more than 20 percent above, and not more than 20 percent below, the average rate of interest for long-term corporate bonds in the appropriate country for the 15-year period ending on the last day before the beginning of the taxable year. "(4) ACCOUNTING METHOD.—Any change in the method O^ut not

the actuarial assumptions) used to determine the amount allowed as a deduction under subsection (a) shall be treated as a change in accounting method under section 446(e). 26 USC 446. "(5) SECTION 481 APPLIES TO ELECTION.—For purposes of section

26 USC 481.

481, any election under this section shall be treated as a change in the taxpayer's method of accounting. In applying section 481 with respect to any such election, the period for taking into account any increase or decrease in accumulated profits, earnings and profits or taxable income resulting from the application of section 481(a)(2) shall be the year for which the election is made and the fourteen succeeding years. "(h) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section (including regulations providing for the coordination of the provisions of this section with section 404 in the case of a plan which has 26 USC 404. been subject to both of such sections)." (b) AMENDMENTS OF SECTION 679(a).—Subsection (a)(1) of section 26 USC 679. 679 of such Code (relating to foreign trusts having one or more United States beneficiaries) is amended by adding the phrase "Or section 404A" immediately after the phrase "section 404(a)(4)". (c) TAXPAYER MUST NOTIFY SECRETARY WHERE THERE IS A REDETERMINATION OF TAX, ETC., UNDER FOREIGN LAW.— (1) AMENDMENT OF SECTION 905(C).—Subsection (c) of section 26 USC 905.

905 of such Code (relating to adjustments on payment of accrued taxes) is amended by adding at the end thereof the following new sentence: "The preceding sentence shall not apply (with respect to any period after th? refund or adjustment in the foreign taxes) if the taxpayer fails to notify the Secretary (on or before the date prescribed by regulations for giving such notice) unless it is shown that such failure is due to reasonable cause and not due to willful neglect." (2) CIVIL PENALTY FOR FAILURE TO NOTIFY.—Subchapter B of

chapter 68 of such Code (relating to assessable penalties) is amended by inserting after section 6688 the following new section: "SEC. 6689. FAILURE TO FILE NOTICE OF REDETERMINATION OF FOR- 26 USC 6689. EIGN TAX.

"(a) CIVIL PENALTY.—If the taxpayer fails to notify the Secretary (on or before the date prescribed by regulations for giving such notice) of a foreign tax redetermination, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the deficiency attributable to such redetermination an amount (not in excess of 25 percent of the deficiency) determined as follows— "(1) 5 percent of the deficiency if the failure is for not more than 1 month, with "(2) an additional 5 percent of the deficiency for each month (or fraction thereof) during which the failure continues.

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