Page:United States Statutes at Large Volume 111 Part 1.djvu/1004

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Ill STAT. 980 PUBLIC LAW 105-34—AUG. 5, 1997 (5) TRANSFERS OF INTANGIBLES TO PARTNERSHIPS.— (A) Subsection (d) of section 367 is amended by adding at the end the following new paragraph: "(3) REGULATIONS RELATING TO TRANSFERS OF INTANGIBLES TO PARTNERSHIPS.—The Secretary may provide by regulations that the rules of paragraph (2) also apply to the transfer of intangible property by a United States person to a partnership in circumstances consistent with the purposes of this subsection.". (B) Section 721 is amended by adding at the end the following new subsection: "(d) TRANSFERS OF INTANGIBLES. — '^or re^^latory authority to treat intangibles transferred to a partnership as sold, see section 367(d)i3).". (c) TECHNICAL AND CONFORMING AMENDMENTS.— (1) Subsection (h) of section 814 is amended by striking "or 1491". (2) Section 1057 (relating to election to treat transfer to foreign trust, etc., as taxable exchange) is hereby repealed. (3) Section 6422 is amended by striking paragraph (5) and by redesignating paragraphs (6) through (13) as paragraphs (5) through (12), respectively. (4) The table of chapters for subtitle A is amended by striking the item relating to chapter 5. (5) The table of sections for part IV of subchapter O of chapter 1 is amended by striking the item relating to section 1057. (6) The table of sections for subpart F of part I of subchapter J of chapter 1 is amended by adding at the end the following new item: "Sec. 684. Recognition of gain on certain transfers to certain foreign trusts and estates.". 26 USC 367 note. (d) EFFECTIVE DATE.—The amendments made by this section shall take effect on the date of the enactment of this Act. Subtitle E—Information Reporting SEC. 1141. CLARIFICATION OF APPLICATION OF RETURN REQUIRE- MENT TO FOREIGN PARTNERSHIPS. (a) IN GENERAL.—Section 6031 (relating to return of partnership income) is amended by adding at the end the following new subsection: "(e) FOREIGN PARTNERSHIPS.— "(1) EXCEPTION FOR FOREIGN PARTNERSHIP.— Except as provided in paragraph (2), the preceding provisions of this section shall not apply to a foreign partnership. "(2) CERTAIN FOREIGN PARTNERSHIPS REQUIRED TO FILE RETURN.—Except as provided in regulations prescribed by the Secretary, this section shall apply to a foreign partnership for any taxable year if for such year, such partnership has— "(A) gross income derived from sources within the United States, or "(B) gross income which is effectively connected with the conduct of a trade or business within the United States.