Page:United States Statutes at Large Volume 94 Part 2.djvu/1413

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PUBLIC LAW 96-000—MMMM. DD, 1980

PUBLIC LAW 96-499—DEC. 5, 1980

94 STAT. 2691

(A) any treaty (hereinafter in this paragraph referrred to as the "old treaty") is renegotiated to resolve conflicts between such treaty and the provisions of section 897 of the Internal Revenue Code of 1954, and Ante, p. 2682. (B) the new treaty is signed before January 1, 1985, then paragraph (1) shall be applied with respect to obligations under the old treaty by substituting for "December 31, 1984" the date (not later than 2 years after the new treaty was signed) specified in the new treaty (or accompanying exchange of notes). (d) ADJUSTMENT IN BASIS FOR CERTAIN TRANSACTIONS BETWEEN RELATED PERSONS.—

(1) IN GENERAL.—In the case of any disposition after December 31, 1979, of a United States real property interest (as defined in section 897(c) of the Internal Revenue Code of 1954) to a related Ante, p. 2682. person (within the meaning of section 453(f)(1) of such Code), the 26 USC 453. basis of the interest in the hands of the person acquiring it shall be reduced by the amount of any nontaxed gain. (2) NONTAXED GAIN.—For purposes of paragraph (1), the term "nontaxed gain" means any gain which is not subject to tax under section 871(b)(1) or 882(a)(1) of such Code— 26 USC 871, 882. (A) because the disposition occurred before June 19, 1980, or (B) because of any treaty obligation of the United States.

Subtitle D—Credit Against Crude Oil Windfall Profit Tax for Royalty Owners SEC. 1131. CREDIT AGAINST CRUDE OIL WINDFALL PROFIT TAX FOR ROYALTY OWNERS. (a) CREDIT AGAINST WINDFALL PROFIT TAX FOR ROYALTY OWNERS.—

(1) IN GENERAL.—Subchapter B of chapter 65 of the Internal Revenue Code of 1954 (relating to rules of special application for abatements, credits, and refunds) is amended by adding at the end thereof the following new section: "SEC. 6429. CREDIT AND REFUND OF CHAPTER 45 TAXES PAID BY 26 USC 6429. ROYALTY OWNERS.

"(a) TREATMENT AS OVERPAYMENT.—In the case of a qualified royalty owner, that portion of the tax imposed by section 4986 which 26 USC 4986. is paid in connection with qualified royalty production shall be treated as an overpayment of the tax imposed by section 4986. "(b) CREDITS AND REFUNDS.—

"(1) IN GENERAL.—Under regulations prescribed by the Secretary, any amount treated as an overpayment of tax under subsection (a) shall be credited against the tax imposed by section 4986 or refunded to the qualified royalty owner. "(2) CLAIM FOR CREDIT OR REFUND.—Any claim for credit or refund under this section shall be filed in such form and manner, and at such time, as the Secretary may prescribe by regulations. "(c) $1,000 LIMITATION ON CREDIT OR REFUND.—

"(1) IN GENERAL.—The aggregate amount which may be treated as an overpayment under subsection (a) with respect to any qualified royalty owner shall not exceed $1,000. "(2) ALLOCATION WITHIN A FAMILY.—In the case of individuals who are members of the same family (within the meaning of section 4992(e)(3)(C)) at any time during the qualified period, the 26 USC 4992. $1,000 amount in paragraph (1) shall be reduced for each such