Page:United States Statutes at Large Volume 98 Part 1.djvu/674

 98 STAT. 626

PUBLIC LAW 98-369—JULY 18, 1984 (A) the taxpayer may pay part or all the tax for the taxable year referred to in subsection (g)(2) in 2 or more (but not exceeding 5) equal installments, and (B) the maximum amount of tax which may be paid in installments under this subsection shall be the excess of^ (i) the tax for such taxable year determined by taking into account subsection (g)(2), over (ii) the tax for such taxable year determined by taking into account subsection (g)(2) and by treating— (I) all section 1256 contracts which are stock options, and (II) any stock which was a part of a straddle including any such stock options, as having been acquired for a purchase price equal to their fair market value on the last business day of the preceding taxable year. Stock options and stock shall be taken into account under subparagraph (B)(ii) only if such options or stock were held on the last day of the preceding taxable year and only if income on such options or stock would have been ordinary income if such options or stock were sold at a gain on such last day. (2) DATE FOR PAYMENT OF INSTALLMENT.—

(A) If an election is made under this subsection, the first installment under paragraph (1) shall be paid on or before the due date for filing the return for the taxable year described in paragraph (1), and each succeeding installment shall be paid on or before the date which is 1 year after the date prescribed for payment of the preceding installment. (B) If a bankruptcy case or insolvency proceeding involving the taxpayer is commenced before the final installment is paid, the total amount of any unpaid installments shall be treated as due and payable on the day preceding the day on which such case or proceeding is commenced. (3) INTEREST IMPOSED.—For purposes of section 6601 of the Internal Revenue Code of 1954, the time for payment of any tax with respect to which an election is made under this subsection shall be determined without regard to this subsection. (4) FORM OF ELECTION.—An election under this subsection shall be made not later than the time for filing the return for the taxable year described in paragraph (1) and shall be made in the manner and form required by regulations prescribed by Secretary of the Treasury or his delegate. The election shall set forth— (A) the amount determined under paragraph (I)(B) and the number of installments elected by the taxpayer, (B) the property described in paragraph (l)(B)(ii), and the date on which such property was acquired, (C) the fair market value of the property described in paragraph (l)(B)(ii) on the last business day of the taxable year preceding the taxable year described in paragraph (1), and (D) such other information for purposes of carrying out the provisions of this subsection as may be required by such regulations. (5)

DELAY

OF

IDENTIFICATION

REQUIREMENT.—Section

1256(e)(2)(C) of the Internal Revenue Code of 1954 shall not

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