Page:United States Statutes at Large Volume 98 Part 1.djvu/738

 98 STAT. 690

PUBLIC LAW 98-369—JULY 18, 1984 'fy

Ante, p. 689.

97 Stat. 381.

"(viii) section 6050K (relating to exchanges of certain partnership interests),". (2) Paragraph (1) of section 6678(a) (relating to failure to furnish certain statements) is amended— (A) by striking out "or 6050J(e)" and inserting in lieu thereof "6050J(e), or 6050K(b)", and (B) by striking out "or 6050J(a)" and inserting in lieu thereof "6050J(a), or 6050K(a)". (3) Section 6678 (relating to failure to furnish certain statements) is amended by adding at the end thereof the following new subsection:

"(c) FAILURE TO NOTIFY PARTNERSHIP OF EXCHANGE OF PARTNERSHIP INTEREST.—In the case of any person who fails to furnish the Ante, p. 689.

26 USC 6050K note.

notice required by section 6050K(c)(l) on the date prescribed therefor, unless it is shown that such failure is due to reasonable cause and not to willful neglect, such person shall pay a penalty of $50 for each such failure." (c) CONFORMING AMENDMENT.—The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by adding at the end thereof the following new item: "Sec. 6050K. Returns relating to exchanges of certain partnership interests." (d) EFFECTIVE DATE.—The amendments made by this section shall

apply with respect to exchanges after December 31, 1984. SEC. 150. STATEMENTS REQUIRED IN CASE OF CERTAIN SUBSTITUTE PAYMENTS.

26 USC 6045.

(a) IN GENERAL.—Section 6045 (relating to returns of brokers) is amended by adding at the end thereof the following new subsection: "(d) STATEMENTS REQUIRED IN CASE OF CERTAIN SUBSTITUTE PAY-

26 USC 6045 note.

MENTS.—If any broker— "(1) transfers securities of a customer for use in a short sale or similar transaction, and "(2) receives (on behalf of the customer) a payment in lieu of— "(A) a dividend, "(B) tax-exempt interest, or "(C) such other items as the Secretary may prescribe by regulations, during the period such short sale or similar transaction is open, the broker shall furnish such customer a written statement (at such time and in the manner as the Secretary shall prescribe by regulations) identifying such payment as being in lieu of the dividend, taxexempt interest, or such other item. The Secretary may prescribe regulations which require the broker to make a return which includes the information contained in such written statement." (b) EFFECTIVE DATE.—The amendment made by this section shall apply to payments received after December 31, 1984. SEC. 151. REPORTING OF STATE AND LOCAL REFUNDS NOT REQUIRED WITH RESPECT TO NON-ITEMIZERS.

26 USC 6050E.

26 USC 1 et seq.

(a) IN GENERAL.—Subsection (b) of section 6050E (relating to State and local income tax refunds) is amended by adding at the end thereof the following: "No statement shall be required under this subsection with respect to any individual if it is determined (in the manner provided by regulations) that such individual did not claim itemized deductions under chapter 1 for the taxable year giving rise to the refund, credit, or offset."


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