96 STAT. 480
PUBLIC LAW 97-248—SEPT. 3, 1982 tion if the distribution is one of a series of distributions in redemption of all of the stock of the corporation pursuant to a plan.
Regulations.
"(b) TRANSACTIONS W H I C H M I G H T R E A C H S A M E R E S U L T AS PARTIAL
LIQUIDATIONS.—The Secretary shall prescribe such regulations as may be necessary to ensure that the purposes of subsections (a) and (b) of section 222 of the Tax Equity and Fiscal Responsibility Act of Ante, p. 478. 1982 (which repeal the special tax treatment for partial liquidations) 26 USC 355, 351, may not be circumvented through the use of section 355, 351, 337, or ^^'^any other provision of law or regulations (including the consolidated return regulations)." (e) TECHNICAL AND CONFORMING AMENDMENTS.—
26 USC 306. 26 USC 331. 26 USC 334. 26 USC 336. 26 USC 306.
26 USC 312.
(1) The following provisions are each amended by striking out "partial or complete liquidation" and inserting in lieu thereof "complete liquidation": (A) Paragraph (2) of section 306(b) (relating to exceptions). (B) Subsection (b) of section 331 (relating to nonapplication of section 301). (C) Subsection (a) of section 334 (relating to basis of property received in liquidations). (D) Paragraph (1) of section 336(b) (relating to distributions of LIFO inventory). (2) Subparagraph (B) of section 306(b)(1) (relating to exception for redemptions) is amended by striking out "section 302(b)(3)" and inserting in lieu thereof "paragraph (3) or (4) of section 302(b)". (3) Subsection (e) of section 312 (relating to special rule for partial liquidation and certain redemptions) is amended— (A) by striking out "in partial liquidation (whether before, on, or after June 22, 1954) or"; and (B) by striking out "PARTIAL LIQUIDATIONS AND" in the
26 USC 338. 26 USC 341.
Ante, p. 479. Ante, p. 478. 26 USC 543.
26 USC 562.
heading thereof. (4) Section 338 (as in effect on the day before the date of the enactment of this Act) is hereby repealed. (5) Paragraph (2) of section 341(a) (relating to collapsible corporations) is amended to read as follows: "(2) a distribution— "(A) in complete liquidation of a collapsible corporation if such distribution is treated under this part as in part or full payment in exchange for stock, or '(B) in partial liquidation (within the meaning of section 302(e)) of a collapsible corporation if such distribution is treated under section 302(b)(4) as in part or full payment in exchange for the stock, and". (6) Paragraph (1) of section 543(a) (relating to personal holding company income) is amended— (A) by striking out "and" at the end of subparagraph (A), (B) by striking out the period at the end of subparagraph (B) and inserting in lieu thereof ", and", and (C) by adding at the end thereof the following new subparagraph: "(C) dividends to which section 302(b)(4) would apply if the corporation were an individual." (7) Paragraph (1) of section 562(b) (relating to distributions in liquidation) is amended by adding at the end thereof the following new sentence: "For purposes of subparagraph (A), a liquidation includes a redemption of stock to which section 302 applies."
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