Page:United States Statutes at Large Volume 98 Part 1.djvu/1000

 98 STAT. 952

26 USC 338.

PUBLIC LAW 98-369—JULY 18, 1984 "(15) COMBINED DEEMED SALE RETURN.—Under regulations prescribed by the Secretary, a combined deemed sale return may be filed by all target corporations acquired by a purchasing corporation on the same acquisition date if such target corporations were members of the same selling consolidated group (as defined in subparagraph (B) of paragraph (10))." (7) Subsection (i) of section 338 (relating to regulations) is amended to read as follows: "(i) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including— "(1) regulations to ensure that the purpose of this section to require consistency of treatment of stock and asset sales and purchases may not be circumvented through the use of any provision of law or regulations (including the consolidated return regulations) and "(2) regulations providing for the coordination of the provisions of this section with the provision of this title relating to foreign corporations and their shareholders." (8) TREATMENT OF CERTAIN LIQUIDATIONS.—

26 USC 269.

(A) IN GENERAL.—Section 269 (relating to acquisitions made to evade or avoid income tax) is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection: "(b) CERTAIN LIQUIDATIONS AFTER QUALIFIED STOCK PURCHASES.— "(1) IN GENERAL.—If—

"(A) there is a qualified stock purchase by a corporation of another corporation, "(B) an election is not made under section 338 with respect to such purchase, "(C) the acquired corporation is liquidated pursuant to a plan of liquidation adopted not more than 2 years after the acquisition date, and "(D) the principal purpose for such liquidation is the evasion or avoidance of Federal income tax by securing the benefit of a deduction, credit, or other allowance which the acquiring corporation would not otherwise enjoy, then the Secretary may disallow such deduction, credit, or other allowance. "(2) MEANING OF TERMS.—For purposes of paragraph (1), the

terms 'qualified stock purchase' and 'acquisition date' have the same respective meanings as when used in section 338." (B) CONFORMING AMENDMENT.—Subsection (c) of section

26 USC 269 note.

269 (as redesignated by subparagraph (A)) is amended by striking out "subsection (a)" and inserting in lieu thereof "subsection (a) or (b)". (C) EFFECTIVE DATE.—The amendments made by this paragraph shall apply to liquidations after October 20, 1983, in taxable years ending after such date. (9) AMENDMENTS NOT TO APPLY TO ACQUISITIONS BEFORE SEP-

TEMBER 1, 1982.—

26 USC 338 note.

(A) IN GENERAL.—The amendments made by this subsection shall not apply to any qualified stock purchase (as defined in section 338(d)(3) of the Internal Revenue Code of 1954) where the acquisition date (as defined in section 338(h)(2) of such Code) is before September 1, 1982.

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