Page:United States Statutes at Large Volume 96 Part 1.djvu/568

 96 STAT. 526

PUBLIC LAW 97-248—SEPT. 3, 1982 decedent or by bequest, devise, or inheritance from the decedent. (4) Unrealized receivables distributed in the liquidation shall be treated as having a zero basis. (5) For purposes of computing earnings and profits, the liquidating corporation shall not treat unrealized receivables distributed in the liquidation as an item of income. (b) UNREALIZED RECEIVABLES DEFINED.—For purposes of this section, the term "unrealized receivables" has the meaning given such term by the first sentence of section 751(c) of such Code. SEC. 248. EMPLOYEE LEASING.

26 USC 414.

(a) GENERAL RULE.—Section 414 (relating to definitions and special rules) is amended by adding at the end thereof the following new subsection: "(n) EMPLOYEE LEASING.—

"(1) IN GENERAL.—For purposes of the pension requirements listed in paragraph (3), except to the extent otherwise provided in regulations, with respect to any person (hereinafter in this subsection referred to as the 'recipient') for whom a leased employee performs services— "(A) the leased employee shall be treated as an employee of the recipient, but "(B) contributions or benefits provided by the leasing organization which are attributable to services performed for the recipient shall be treated as provided by the recipient. "(2) LEASED EMPLOYEE.—For purposes of paragraph (1), the

Ante, p. 514.

term 'leased employee' means any person who provides services to the recipient if— "(A) such services are provided pursuant to an agreement between the recipient and any other person (in this subsection referred to as the 'leasing organization'), "(B) such person has performed such services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, and "(C) such services are of a type historically performed, in the business field of the recipient, by employees. "(3) PENSION REQUIREMENTS.—For purposes of this subsection, the pension requirements listed in this paragraph are— "(A) paragraphs (3), (4), (7), and (16) of section 401(a), and "(B) sections 408(k), 410, 411, 415, and 416. "(4) TIME WHEN LEASED EMPLOYEE IS FIRST CONSIDERED AS

EMPLOYEE.—In the case of any leased employee, paragraph (1) shall apply only for purposes of determining whether the pension requirements listed in paragraph (3) are met for periods after the close of the 1-year period referred to in paragraph (2); except that years of service for the recipient shall be determined by taking into account the entire period for which the leased employee performed services for the recipient (or related persons). "(5) SAFE HARBOR.—This subsection shall not apply to any

leased employee if such employee is covered by a plan which is maintained by the leasing organization if, with respect to such employee, such plan—

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