108 STAT. 4998 PUBLIC LAW 103-465—DEC. 8, 1994 Subtitle B—Provisions Relating to Estimated Taxes and Payments and Deposits of Taxes SEC. 711. TREATMENT OF SUBPART F AND SECTION 936 INCOME OF TAXPAYERS USING ANNUALIZED METHOD FOR ESTIMATED TAX. 26 USC 6655. (a) CORPORATIONS.— Section 6655(e) (relating to lower required installment where annualized income installment is less) is amended by adding at the end the following new paragraph: "(4) TREATMENT OF SUBPART F AND SECTION 936 INCOME.— "(A) IN GENERAL. —Any amounts required to be included in gross income under section 936(h) or 951(a) (and credits properly allocable thereto) shall be taken into account in computing any annualized income installment under paragraph (2) in a manner similar to the manner under which partnership income inclusions (and credits properly allocable thereto) are taken into account " (B) PRIOR YEAR SAFE HARBOR. — "(i) IN GENERAL. — If a taxpayer elects to have this subparagraph apply for any taxable year— "(I) subparagraph (A) shall not apply, and "(II) for purposes of computing any annuaUzed income installment for such taxable year, the taxpayer shall be treated as having received ratably during such taxable year items of income and credit described in subparagraph (A) in an amount equal to 115 percent of the amount of such items shown on the return of the taxpayer for the preceding taxable year (the second preceding taxable year in the case of the first and second required installments for such taxable year), "(ii) SPECIAL RULE FOR NONCONTROLLING SHAREHOLDER. — "(I) IN GENERAL. — If a taxpayer making the election under clause (i) is a noncontroUing shareholder of a corporation, clause (i)(II) shall be appHed with respect to items of such corporation by substituting '100 percent* for *115 percent*. "(II) NONCONTROLLING SHAREHOLDER.—For purposes of subclause (I), the term *noncontroUing shareholder* means, vdih. respect to any corporation, a shareholder which (as of the beginning of the taxable year for which the installment is being made) does not own (within the mesining of section 958(a)), and is not treated as owning (within the meaning of section 958(b)), more than 50 percent (by vote or value) of the stock in the corporation." (b) INDIVIDUALS.— Section 6654(d)(2) (relating to lower required installment where annualized income installment is less) is amended by adding at the end the following new subparagraph: " (D) TREATMENT OF SUBPART F AND SECTION 936 INCOME. —
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