Page:United States Statutes at Large Volume 98 Part 1.djvu/1087

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 1039

no lower than that of a principal Internal Revenue officer for an internal revenue region, "(i) SECTION N O T TO APPLY TO CRIMINAL INVESTIGATIONS, ETC.—

This section shall not apply to— "(A) any criminal investigation, "(B) any inquiry or examination relating to the tax liability of any person other than a church, "(C) any assessment under section 6851 (relating to termination assessments of income tax) or section 6861 (relating to jeopardy assessments of income taxes, etc), (D) any willful attempt to defeat or evade any tax imposed by this title, or "(E) any knowing failure to file a return of tax imposed by the title." (b) TECHNICAL AMENDMENT RELATING TO SUBPOENA POWER OF THE DISTRICT COURT FOR THE DISTRICT OF COLUMBIA.—Section 7428 (relat- 26 USC 7428.

ing to declaratory judgments relating to status and classification of organizations under section 501(c)(3), etc.) is amended by adding at the end thereof the following new subsection: "(d) SUBPOENA POWER FOR DISTRICT COURT FOR DISTRICT OF COLUM-

BIA.—In any action brought under this section in the district court of the United States for the District of Columbia, a subpoena requiring the attendance of a witness at a trial or hearing may be served at any place in the United States." (c) CONFORMING AMENDMENTS.—

(1) Subsection (c) of section 7605 (relating to time and place of 26 USC 7605. examination) is amended to read as follows: "(C) CROSS REFERENCE.—

"For provisions restricting church tax inquiries and examinations, see section 7611." Ante, p. 1034.

(2) The table of sections for subchapter A of chapter 78 is amended by striking out the item relating to section 7611 and inserting in lieu thereof the following: "Sec. 7611. Restrictions on church tax inquiries and examinations. "Sec. 7612. Cross references." (d) EFFECTIVE DATE.—The amendments made by this section shall

26 USC 76ii apply with respect to inquiries and examinations beginning after note. December 31, 1984. SEC. 1034. ACQUISITION INDEBTEDNESS OF CERTAIN EDUCATIONAL INSTITUTIONS. (a) GENERAL RULE.—Paragraph (9) of section 514(c) (relating to 26 USC 514. unrelated debt-financed income) is amended to read as follows: "(9) REAL PROPERTY ACQUIRED BY A QUALIFIED ORGANIZATION.—

"(A) IN GENERAL.—Except as provided in subparagraph (B), the term 'acquisition indebtedness' does not, for purposes of this section, include indebtedness incurred by a qualified organization in acquiring or improving any real property. "(B) EXCEPTIONS.—The provisions of subparagraph (A) shall not apply in any case in which— "(i) the price for the acquisition or improvement is not a fixed amount determined as of the date of the acquisition or the completion of the improvement; ' (ii) the amount of any indebtedness or any other amount payable with respect to such indebtedness, or



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