Page:United States Statutes at Large Volume 96 Part 2.djvu/1037

 PUBLIC LAW 97-448—JAN. 12, 1983 "(iii) an exchange of such stock qualifying under section 354(a), 355(a), or 356(a) shall be treated as an exchange to which section 1245(b)(3) applies." SEC. 305. MISCELLANEOUS AMENDMENTS. (a) Effective Date of Section 404A.—Subparagraph (E) of section 2(e)(2) of Public Law 96-603 is amended by striking out "was barred" and inserting in lieu thereof "was not barred".

96 STAT. 2399

26 USC 404A note.

(b) REDESIGNATION OF SECTION 194.—

(1) The section 194 which relates to contributions to employer liability trusts is hereby redesignated as section 194A. (2) The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the item relating to the section 194 which relates to contributions to employer liability trusts and inserting in lieu thereof the following:

26 USC 194, ^^^•

"Sec. 194A. Contributions to employer liability trusts." (c) AMENDMENT RELATED TO SECTION 421 OF THE REVENUE ACT OF

1978.—The last sentence of section 55(b)(l), as in effect on the day before the date of the enactment of the Tax Equity and Fiscal Responsibility Act of 1982, is amended by striking out "subparagraph (A)" and inserting in lieu thereof "subparagraph (A) (and in determining the sum of itemized deductions for purposes of subparagraph (C)(i))".

26 USC 55. Ante, p. 324.

(d) AMENDMENTS RELATED TO SUBCHAPTER S REVISION ACT OF

(1)(A) Section 6 of the Subchapter S Revision Act of 1982 is amended by adding at the end thereof the following new subsection: "(f) TAXABLE YEAR OF S CORPORATIONS.—Section 1378 of the Internal Revenue Code of 1954 (as added by this Act) shall take effect on the day after the date of the enactment of this Act. For purposes of applying such section, the reference in subsection (a)(2) of such section to an election under section 1362(a) shall include a reference to an election under section 1372(a) of such Code as in effect on the day before the date of the enactment of this Act." (B) If—

Ante,^. 1697. ^^^ ^^^^

26 USC 1361

(i) after September 30, 1982, and on or before the date of '^^^^ the enactment of this Act, stock or securities were transferred to a small business corporation (as defined in section 1361(b) of the Internal Revenue Code of 1954 as amended by the Subchapter S Revision Act of 1982) in a transaction to which section 351 of such Code applies, and (ii) such corporation is liquidated under section 333 of such Code before March 1, 1983, then such stock or securities shall not be taken into account under section 333(e)(2) of such Code. (2) Subsection (e) of section 1368 (relating to distributions) is Ante, p. 1680. amended by adding at the end thereof the following new paragraph: "(3) ELECTION TO DISTRIBUTE EARNINGS FIRST.—

"(A) IN GENERAL.—An S corporation may, with the consent of all of its affected shareholders, elect to have paragraph (1) of subsection (c) not apply to all distributions made during the taxable year for which the election is made.

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