note. note. 104 STAT. 1388-460 PUBLIC LAW 101-508—NOV. 5, 1990 6050I(d)(2) of the Internal Revenue Code of 1986 (as amended by this section). SEC. 11319. 5-YEAR EXTENSION OF INTERNAL REVENUE SERVICE USER FEES. 26 USC 7801 (a) GENERAL RULE.— Subsection (c) of section 10511 of the Revenue Act of 1987 (relating to fees for requests for ruling, determination, and similar letters) is amended by adding at the end thereof the following new sentence: "Subsection (a) shall also apply with respect to requests made after September 30, 1990, and before October 1, 1995." 26^YSC 7801 (b) EFFECTIVE DATE.—The amendment made by this section shall take effect on September 29, 1990, except that no advance payment shall be required for any fee for any requests filed after September 29, 1990, and before the 30th day after the date of the enactment of this Act. PART III—CORPORATE PROVISIONS SEC. 11321. RECOGNITION OF GAIN BY DISTRIBUTING CORPORATION IN CERTAIN SECTION 355 TRANSACTIONS. (a) GENERAL RULE.— Section 355 (relating to distribution of stock and securities of a controlled corporation) is amended by striking subsection (c) and inserting the following new subsections: " (c) TAXABILITY OF CORPORATION ON DISTRIBUTION. — "(1) IN GENERAL.— Except as provided in paragraph (2), no gain or loss shall be recognized to a corporation on any distribution to which this section (or so much of section 356 as relates to this section) applies and which is not in pursuance of a plan of reorg£mization. " (2) DISTRIBUTION OF APPRECIATED PROPERTY.— " (A) IN GENERAL.—I f — "(i) in a distribution referred to in paragraph (1), the corporation distributes property other than qusdified property, and "(ii) the fair market value of such property exceeds its adjusted basis (in the hands of the distributing corporation), then gain shall be recognized to the distributing corporation as if such property were sold to the distributee at its fair market value. "(B) QUALIFIED PROPERTY. —For purposes of subparagraph (A), the term 'qualified property' means any stock or securities in the controlled corporation. "(C) TREATMENT OF LIABILITIES. — If any property distributed in the distribution referred to in paragraph (1) is subject to a liability or the shareholder assumes a liability of the distributing corporation in connection with the distribution, then, for purposes of subparagraph (A), the fair market value of such property shall be treated as not less than the amount of such liability. "(3) COORDINATION WITH SECTIONS 311 AND 336(a).— Sections 311 and 336(a) shall not apply to any distribution referred to in paragraph (1). "(d) RECOGNITION OF GAIN ON CERTAIN DISTRIBUTIONS OF STOCK OR SECURITIES IN O^NTROLLED CORPORATION. —
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