Page:United States Statutes at Large Volume 96 Part 2.djvu/1024

 96 STAT. 2386 26 USC 1256.

PUBLIC LAW 97-448—JAN. 12, 1983 (B) FOREIGN CURRENCY CONTRACTS.—Subsection Ob) of section 1256 (as amended by subparagraph (A)) is amended by adding at the end thereof the following new sentence: "Such term includes any foreign currency contract." (C) FOREIGN CURRENCY CONTRACT DEFINED.—Section 1256

is amended by adding at the end thereof the following new subsection: "(g) FOREIGN CURRENCY CONTRACT DEFINED.— "(1) FOREIGN CURRENCY CONTRACT.—For purposes

Regulations.

26 USC 1256

note.

of this section, the term 'foreign currency contract' means a contract— "(A) which requires delivery of a foreign currency which is a currency in which positions are also traded through regulated futures contracts, "(B) which is traded in the interbank market, and "(C) which is entered into at arm's length at a price determined by reference to the price in the interbank market. "(2) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of paragraph (1), including regulations excluding from the application of paragraph (1) any contract (or type of contract) if its application thereto would be inconsistent with such purposes." (D) EFFECTIVE DATES.—

(i) IN GENERAL.—Except as provided in clauses (ii) and (iii), the amendments made by subparagraphs (B) and (C) shall apply only with respect to contracts entered into after May 11, 1982. (ii) ELECTION BY TAXPAYER OF RETROACTIVE APPLICATION.—

(I) RETROACTIVE APPLICATION.—If the taxpayer so

95 Stat. 323.

elects, the amendments made by subparagraphs (B) and (C) shall apply as if included within the amendments made by title V of the Economic Recovery Tax Act of 1981. (II) ADDITIONAL CHOICES WITH RESPECT TO 198I.—

If the taxpayer held a foreign currency contract after December 31, 1980, and before June 24, 1981, and such taxpayer makes an election under subclause (I), such taxpayer may revoke any election made under section 508(c) or 509(a) of such Act, and may make an election under section 508(c) or 509(a) of such Act. (III) ADDITIONAL CHOICES APPLY TO ALL REGULAT-

ED FUTURES CONTRACTS.—Except as provided

in

subclause (IV), in the case of any taxpayer who makes an election under subclause (I), any election under section 508(c) or 509(a) of such Act or any revocation of such an election shall apply to all regulated futures contracts (including foreign currency contracts). (IV) SECTION 509(a)(3) AND (4) NOT TO APPLY TO FOREIGN

CURRENCY CONTRACTS.—Paragraphs

(3)

and (4) of section 509(a) of such Act shall not apply to any foreign currency contract. (V) TIME FOR MAKING ELECTION OR REVOCATION.—

Any election under subclause (I) and any election or revocation under subclause (II) may be made only within the 90-day period beginning on the

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