PUBLIC LAW 100-203—DEC. 22, 1987
101 STAT. 1330-417
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"(A) LIFO METHOD.—The term 'LIFO method'means the method authorized by section 472. ion -; «(g) INVENTORY ASSETS.—The term 'inventory assets' means stock in trade of the corporation, or other property of a kind which would properly be included in the inventory
of the corporation if on hand at the close of the taxable year. .,,
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"(C) METHOD OF DETERMINING INVENTORY AMOUNT.—The
inventory amount of assets under a method authorized by section 471 shall be determined— "(i) if the corporation uses the retail method of valu• ing inventories under section 472, by using such method, or "(ii) if clause (i) does not apply, by using cost or market, whichever is lower."
(h) EFFECTIVE DATES.—
26 USC 1363
(1) IN GENERAL.—Except as provided in paragraph (2) the ^°^amendment made by subsection (a) shall apply in the case of elections made after December 17, 1987.
(2) EXCEPTION.—The amendment made by subsection (a) shall not apply in the case of any election made by a corporation after g December 17, 1987, and before January 1, 1989, if, on or before
- . December 17, 1987—
(A) there was a resolution adopted by the board of directors of such corporation to make an election under subJuTie: chapter S of chapter 1 of the Internal Revenue Code of 1986, J' or f' (B) there Was a ruling request with respect to the business j^ filed with the Internal Revenue Service expressing an intent to make such an election. SEC. 10228. EXCISE TAX ON RECEIPT OF GREENMAIL.
(a) IN GENERAL.—Subtitle E is amended by adding at the end thereof the following new chapter: "CHAPTER 54—GREENMAIL "Sec. 5881. Greenmail. "SEC. 5881. GREENMAIL. "(a) IMPOSITION OF TAX.—There is hereby imposed on any person
who receives greenmail a tax equal to 50 percent of gain realized by such person on such receipt. "(b) GREENMAIL.—For purposes of this section, the term 'greenmail' means any consideration transferred by a corporation to directly or indirectly acquire its stock from any shareholder if— "(1) such shareholder held such stock (as determined under i section 1223) for less than 2 years before entering into the agreement to make the transfer, "(2) at some time during the 2-year period ending on the date of such acquisition— "(A) such shareholder, "(B) any person acting in concert with such shareholder, • or "(C) any person who is related to such shareholder or person described in subparagraph (B),
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