Page:United States Statutes at Large Volume 98 Part 1.djvu/1045

 PUBLIC LAW 98-369—JULY 18, 1984 "and", and by adding at the end thereof the following new subparagraph: "(I) to the extent provided in regulations prescribed by the Secretary, property which is otherwise United States property which is held by a FSC and which is related to the export activities of such FSC". (9) Subparagraph (B) of section 7651(5), as amended by this Act, is amended by inserting "or subpart C of part III of subchapter N of chapter 1" after "SSKbXD". (10) Section 996(g) (relating to effectively connected income) is amended by inserting "and which are derived from sources within the United States" after "United States". (11) Section 936(f) (relating to DISC or former DISC ineligible for credit) is amended to read as follows: "(f) LIMITATION ON CREDIT FOR DISC'S AND FSC'S.—NO credit shall be allowed under this section to a corporation for any taxable year—, "(1) for which it is a DISC or former DISC, or "(2) in which it owns at any time stock in a— "(A) DISC or former DISC, or "(B) FSC or former FSC." (12) Section 6011(c) (relating to returns of DISC'S and former DISC's) is amended— (A) by inserting "or a FSC or former FSC" after "former DISC" in paragraph (1), and (B) by inserting "and FSC's and Former FSC's" after "Former DISC's" in the heading thereof. (13) Section 6072(c) (relating to returns by nonresident alien individuals and foreign corporations) is amended by inserting "or a FSC or former FSC" after "United States". (14) Section 6501(g)(3) (relating to income tax returns of Disc's) is amended by striking out "section 6011(e)(2)" and inserting in lieu thereof "section 6011(c)(2)". (15)(A) Section 6686 (relating to failure of DISC to file returns) is amended— (i) by striking out "section 6011(e)" and inserting in lieu thereof "section 6011(c)", and (ii) by striking out the heading thereof and inserting in lieu thereof the following:

98 STAT. 997

26 USC 7651. 26 USC 996. 26 USC 936.

26 USC 6011.

26 USC 6072. 26 USC 6501. 26 USC 6686.

"SEC. 6686. FAILURE TO FILE RETURNS OR SUPPLY INFORMATION BY DISC OR FSC."

(B) The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to section 6686 and inserting in lieu thereof the following new item: "Sec. 6686. Failure to file returns or supply information by DISC or FSC." SEC. 802. INTEREST CHARGE DISC.

(a) INTEREST CHARGE ON DEFERRED TAX.—Section 995 (relating to 26 USC 995. taxation of DISC income to shareholders) is amended— (1) by striking out subsections (e) and (f), (2) by redesignating subsection (g) as subsection (e), and (3) by adding at the end thereof the following new subsection: "(f) INTEREST ON DISC-RELATED DEFERRED TAX LIABILITY.— "(1) IN GENERAL.—A shareholder of a DISC shall pay for

each taxable year interest in an amount equal to the product of—

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