Page:United States Statutes at Large Volume 98 Part 1.djvu/835

 PUBLIC LAW 98-369—JULY 18, 1984 w:i

98 STAT. 787

"(C) PERSON CEASES TO BE SUBSTANTIAL CONTRIBUTOR IN

CERTAIN CASES.— } "(i) IN GENERAL.—A person shall cease to be treated as a substantial contributor with respect to any private foundation as of the close of any taxable year of such foundation if— "(I) during the 10-year period ending at the close '" - ^  -A.. of such taxable year such person (and all related " persons) have not made any contribution to such private foundation, ^ "(II) at no time during such 10-year period was such person (or any related person) a foundation r^ manager of such private foundation, and "(III) the aggregate contributions made by such person (and related persons) are determined by the Secretary to be insignificant when compared to the ,, aggregate amount of contributions to such founda*'*" ' tion by one other person. For purposes of subclause (III), appreciation on contri-" butions while held by the foundation shall be taken into account. "(ii) RELATED PERSON.—For purposes of clause (i), the term 'related person' means, with respect to any person, any other person who would be a disqualified person (within the meaning of section 4946) by reason ,^. of his relationship to such person. In the case of a .. J contributor which is a corporation, the term also includes any officer or director of such corporation." (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 507 note. shall apply to taxable years beginning after December 31, 1984. SEC. 314. TECHNICAL AMENDMENTS. (a) AMENDMENTS OF INTERNAL REVENUE CODE OF 1954.— (1) Subparagraph (B) of section 4942(a)(2) (relating to taxes on failure to distribute income) is amended by striking out "subsection (j)(4)" and inserting in lieu thereof "subsection (j)(2)". (2) Paragraph (1) of section 4942(f) (defining adjusted net income) is amended by striking out "subsection (d)" and inserting in lieu thereof "subsection (j)"(3) Paragraph (3) of section 6501(n) (relating to special rule for chapter 42 and similar taxes) is amended by striking out "section 4942(g)(2)(B)(i)(II)" and inserting in lieu thereof "section 4942(g)(2)(B)(ii)". (4) The amendments made by this subsection shall take effect on the date of the enactment of this Act.
 * • WILJ t?':

26 USC 4942.

Ante, p. 698.

26 USC 4942 note.

(b) AMENDMENT OF 1969 TAX REFORM ACT.—

(1) Subparagraph (A) of section 101(1)(4) of the Tax Reform Act of 1969 is amended by striking out "by substituting '51 percent' for '50 percent' " and inserting in lieu thereof "as if it did not contain the phrase ', but in no event shall the percentage so substituted be more than 50 percent' ". (2) The amendment made by paragraph (1) shall apply as if included in section 101(1)(4) of the Tax Reform Act of 1969.

26 USC 4940 note.

26 USC 4940 note.

(c) EXCEPTION TO DEFINITION OF DISQUALIFIED PERSONS.—

(1) Subsection (d) of section 4943 (relating to definitions and 26 USC 4943. special rules with respect to taxes on excess business holdings)

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