Page:United States Statutes at Large Volume 110 Part 3.djvu/36

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110 STAT. 1766 PUBLIC LAW 104-188—AUG. 20, 1996 may elect (in such form and manner as the Secretary of the Treasury may prescribe) to have such amendments apply with respect to any property placed in service before such date and to which such section so applies. SEC. 1121. TREATMENT OF ABANDONMENT OF LESSOR IMPROVE- MENTS AT TERMINATION OF LEASE. (a) IN GENERAL. — Paragraph (8) of section 168(i) is amended to read as follows: " (8) TREATMENT OF LEASEHOLD IMPROVEMENTS. — "(A) IN GENERAL. — In the case of any building erected (or improvements made) on leased property, if such building or improvement is property to which this section applies, the depreciation deduction shall be determined under the provisions of this section. " (B) TREATMENT OF LESSOR IMPROVEMENTS WHICH ARE ABANDONED AT TERMINATION OF LEASE.— An improvement— "(i) which is made by the lessor of leased property for the lessee of such property, and "(ii) which is irrevocably disposed of or abandoned by the lessor at the termination of the lease by such lessee, shall be treated for purposes of determining gain or loss under this title as disposed of by the lessor when so disposed of or abandoned.'. 26 USC l68note. (b) EFFECTIVE DATE.—Subparagraph (B) of section 168(i)(8) of the Internal Revenue Code of 1986, as added by the amendment made by subsection (a), shall apply to improvements disposed of or abandoned after June 12, 1996. SEC. 1122. SPECIAL RULES RELATING TO DETERMINATION WHETHER INDIVIDUALS ARE EMPLOYEES FOR PURPOSES OF EMPLOYMENT TAXES. 26 USC 3401 (a) IN GENERAL.—Section 530 of the Revenue Act of 1978 is note. amended by adding at the end the following new subsection: "(e) SPECIAL RULES FOR APPLICATION OF SECTION. — "(1) NOTICE OF AVAILABILITY OF SECTION. —An officer or employee of the Internal Revenue Service shall, before or at the commencement of any audit inquiry relating to the employ- ment status of one or more individuals who perform services for the taxpayer, provide the taxpayer with a written notice of the provisions of this section. "(2) RULES RELATING TO STATUTORY STANDARDS. —For purposes of subsection (a)(2)— "(A) a taxpayer may not rely on an audit commenced after December 31, 1996, for purposes of subparagraph (B) thereof unless such audit included an examination for employment tax purposes of whether the individual involved (or any individual holding a position substantially similar to the position held by the individual involved) should be treated as an employee of the taxpayer, "(B) in no event shall the significant segment requirement of subparagraph (C) thereof be construed to require a reasonable showing of the practice of more than 25 percent of the industry (determined by not taking into account the taxpayer), and "(C) in applying the long-standing recognized practice requirement of subparagraph (C) thereof—