Page:United States Statutes at Large Volume 98 Part 1.djvu/704

 98 STAT. 656

PUBLIC LAW 98-369—JULY 18, 1984 the transferor on the disposition of the United States real property interest, or "(II) is exempt from any tax imposed by section 871(b)(1) or 882(a)(1) on any gain recognized by the transferor on the disposition of the United States real property interest, and "(ii) the transferor or transferee has satisfied any transferor's unsatisfied withholding liability or has provided adequate security to cover such liability. "(5) RESIDENCE WHERE AMOUNT REALIZED DOES NOT EXCEED

$300,000.—This paragraph applies to the disposition if^ "(A) the property is acquired by the transferee for use by him as a residence, and "(B) the amount realized for the property does not exceed $300,000. "(6)

STOCK REGULARLY TRADED ON ESTABLISHED SECURITIES

MARKET.—This paragraph applies if the disposition is of a share of a class of stock that is regularly traded on an established securities market. "(7) SPECIAL RULES FOR PARAGRAPHS (2) AND (3).—Paragraph (2) or (3) (as the case may be) shall not apply to any disposition— "(A) i f "(i) the transferee has actual knowledge that the affidavit referred to in such paragraph is false, or "(ii) the transferee receives a notice (as described in subsection (d)) from a transferor's agent or a transferee's agent that such affidavit is false, or "(B) if the Secretary by regulations requires the transferee to furnish a copy of such affidavit to the Secretary and the transferee fails to furnish a copy of such affidavit to the Secretary at such time and in such manner as required by such regulations. "(c) LIMITATIONS ON AMOUNT REQUIRED TO B E WITHHELD.— "(1) CANNOT EXCEED TRANSFEROR'S MAXIMUM TAX LIABILITY.—

"(A) IN GENERAL.—The amount required to be withheld under this section with respect to any disposition shall not exceed the amount (if any) determined under subparagraph (B) as the transferor's maximum tax liability. "(B) REQUEST.—At the request of the transferor or transferee, the Secretary shall determine, with respect to any disposition, the transferor's maximum tax liability. "(C) REFUND OF EXCESS AMOUNTS WITHHELD.—Subject to

such terms and conditions as the Secretary may by regulations prescribe, a transferor may seek and obtain a refund of any amounts withheld under this section in excess of the transferor's maximum tax liability. "(2)

AUTHORITY

OF

SECRETARY

TO

PRESCRIBE

REDUCED

AMOUNT.—At the request of the transferor or transferee, the Secretary may prescribe a reduced amount to be withheld under this section if the Secretary determines that to substitute such reduced amount will not jeopardize the collection of the tax imposed by section 871(b)(1) or 882(a)(1). "(3) PROCEDURAL RULES.—

<.;

"(A) REGULATIONS.—Requests for— "(i) qualifying statements under subsection (b)(4), "(ii) determinations of transferor's maximum tax liability under paragraph (1), and

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