Page:United States Statutes at Large Volume 96 Part 2.djvu/335

 PUBLIC LAW 97-354—OCT. 19, 1982

96 STAT. 1697

(42) Section 6661(b).—Subparagraph (B) of section 6661(b)(1) is amended by striking out "an electing small business corporation (as defined in section 1371(b))" and inserting in lieu thereof "an S corporation". (43) Subsection (d) of section 408 of the Employee Retirement Income Security Act of 1974 is amended by striking out "section 1379 of the Internal Revenue Code of 1954" and inserting in lieu thereof "section 1379 of the Internal Revenue Code of 1954 as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982". (b) CLERICAL AMENDMENT.—The table of subchapters for chapter 1 is amended by striking out the item relating to subchapter S and inserting in lieu thereof the following:

Ante, p. 614.

29 USC 1108.

"SUBCHAPTER S. Tax treatment of S corporations and their shareholders."

SEC. 6. EFFECTIVE DATES.

,,.

,.

.

26 USC 1361 note.

(a) IN GENERAL.—Except as otherwise provided m this section, the amendments made by this Act shall apply to taxable years beginning after December 31, 1982. (b) TRANSITIONAL RULES.— (1) SECTIONS 1379 A N D 62(9) CONTINUE TO APPLY FOR 1983. —

Sections 1379 and 62(9) of the Internal Revenue Code of 1954 (as in effect before the date of the enactment of this Act) shall remain in effect for years beginning before January 1, 1984. (2) ALLOWANCE OF EXCLUSION OF DEATH BENEFIT.—Notwith-

standing section 241(b) of the Tax Equity and Fiscal Responsibility Act of 1982, in the case of amounts received under a plan of Ante, p. 520. an S corporation, the amendment made by section 239 of such Act shall apply with respect to decedents dying after December Ante, p. 514. 31, 1982. (3) N E W PASSIVE INCOME RULES APPLY TO TAXABLE YEARS BEGINNING DURING 1982.—In the case of a taxable year beginning

during 1982— (A) sections 1362(d)(3), 1366(f)(3), and 1375 of the Internal Revenue Code of 1954 (as amended by this Act) shall apply. and (B) section 1372(e)(5) of such Code (as in effect on the day before the date of the enactment of this Act) shall not apply. (c) GRANDFATHER RULES.— (1) SUBSIDIARIES WHICH

ARE FOREIGN

Ante, pp. 1672, ^^'^'^' ^^^^•

CORPORATIONS OR

DISC'S.—In the case of any corporation which on September 28, 1982, would have been a member of the same affiliated group as an electing small business corporation but for paragraph (3) or (7) of section 1504(b) of the Internal Revenue Code of 1954, subparagraph (A) of section 1361(b)(2) of such Code (as amended by section 2) shall be applied by substituting "without regard to Ante, p. 1669. the exceptions contained in paragraphs (1), (2), (4), (5), and (6) of subsection (b) thereof for "without regard to the exceptions contained in subsection (b) thereof. (2) CASUALTY INSURANCE COMPANIES.—

(A) IN GENERAL.—In the case of any qualified casualty insurance electing small business corporation— (i) the amendments made by this Act shall not apply, and

�