Page:United States Statutes at Large Volume 94 Part 3.djvu/866

 94 STAT. 3510

PUBLIC LAW 96-603—DEC. 28, 1980 "(b) FOREIGN TAX REDETERMINATION DEFINED.—For purposes of

26 USC 905, Ante, p. 3505.

this section, the term 'foreign tax redetermination' means any redetermination for which a notice is required under subsection (c) of section 905 or paragraph (2) of section 404A(g)." (^J) CLERICAL AMENDMENTS.—

(1) The table of sections for part I of subchapter D of chapter 1 of such Code is amended by inserting after the item relating to section 404 the following new item: "Sec. 404A. Deduction for certain foreign deferred compensation plans."

(2) The table of sections for subchapter B of chapter 68 of such Code is amended by inserting after the item relating to section 6688 the following new item: 26 USC 404A

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"Sec. 6689. Failure to file notice of redetermination of foreign tax." (e) EFFECTIVE D A T E. —

(1) IN GENERAL.—The amendments made by this section shall apply with respect to employer contributions or accruals for taxable years beginning after December 31, 1979. (2) ELECTION TO APPLY AMENDMENTS RETROACTIVELY WITH RESPECT TO FOREIGN SUBSIDIARIES.—

(A) IN GENERAL.—The taxpayer may elect to have the amendments made by this section apply retroactively with respect to its foreign subsidiaries. (B) SCOPE OF RETROACTIVE APPLICATION.—Any election

made under this paragraph shall apply with respect to all foreign subsidiaries of the taxpayer for the taxpayer's open period. (C) DISTRIBUTIONS BY FOREIGN SUBSIDIARY MUST BE OUT OF

POST-1971 EARNINGS AND PROFITS.—The election under this paragraph shall apply to distributions made by a foreign subsidiary only if made out of accumulated profits (or earnings and profits) earned after December 31, 1970. (D) REVOCATION ONLY WITH CONSENT.—An election under this paragraph may be revoked only with the consent of the Secretary of the Treasury or his delegate. (E) OPEN PERIOD.—For purposes of this subsection, the term "open period" means, with respect to any taxpayer, all taxable years which begin before January 1, 1980, and which begin after December 31, 1971, and for which, on December 31, 1980, the making of a refund, or the assessment of a deficiency, was barred by any law or rule of law. (3) ALLOWANCE OF PRIOR DEDUCTIONS IN CASE OF CERTAIN FUNDED BRANCH PLANS.— (A) IN GENERAL.—If—

(i) the taxpayer elects to have this paragraph apply, and (ii) the taxpayer agrees to the assessment of all deficiencies (including interest thereon) arising from all erroneous deductions, then an amount equal to Vi sth of the aggregate of the prior deductions which would have been allowable if the amendments made by this section applied to taxable years beginning before January 1, 1980, shall be allowed as a deduction for the taxpayer's first taxable year beginning in 1980, and an equal amount shall be allowed for each of the succeeding 14 taxable years. (B) PRIOR DEDUCTION.—For purposes of subparagraph (A),

the term "prior deduction" means a deduction with respect

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