PUBLIC LAW 103-66 —AUG. 10, 1993 107 STAT. 429 who is related (within the meaning of section 267(b) or 707(b)) to the taxpayer. "(k) REGULATIONS. — The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations to prevent the avoidance of the purposes of this section through split-ups, shell corporations, partnerships, or otherwise." (b) ONE-HALF OF EXCLUSION TREATED AS PREFERENCE FOR MINIMUM TAX.— (1) IN GENERAL. —Subsection (a) of section 57 (relating to 26 USC 57. items of tax preference) is amended by adding at the end thereof the following new paragraph: " (8) EXCLUSION FOR GAINS ON SALE OF CERTAIN SMALL BUSINESS STOCK. —An amount equal to one-half of the amount excluded from gross income for the taxable year under section 1202. " (2) CONFORMING AMENDMENT. —Subclause (II) of section 53(d)(l)(B)(ii) is amended by striking "and (6)" and inserting "(6), and (8)". (c) PENALTY FOR FAILURE TO COMPLY WITH REPORTING REQUIREMENTS.— Section 6652 is amended by inserting before the last subsection thereof the following new subsection: "(k) FAILURE TO MAKE REPORTS REQUIRED UNDER SECTION 1202. —In the case of a failure to make a report required under section 1202(d)(1)(C) which contains the information required by such section on the date prescribed therefor (determined with regard to any extension of time for filing), there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing to make such report, an amount equal to $50 for each report with respect to which there was such a failure. In the case of any failure due to negligence or intentional disregard, the preceding sentence shall be applied by substituting '$100' for
- $50'. In the case of a report covering periods in 2 or more years,
the penalty determined under preceding provisions of this subsection shall be multiplied by the number of such years." (d) CONFORMING AMENDMENTS.— (1)(A) Section 172(d)(2) (relating to modifications with respect to net operating loss deduction) is amended to read as lollows: " (2) CAPITAL GAINS AND LOSSES OF TAXPAYERS OTHER THAN CORPORATIONS. —In the case of a taxpayer other than a corporation— "(A) the amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includable on account of gains from sales or exchanges of capital assets; and "(B) the exclusion provided by section 1202 shall not be allowed." (B) Subparagraph (B) of section 172(d)(4) is amended by inserting ", (2)(B)," afl^er "paragraph (1)". (2) Paragraph (4) of section 642(c) is amended to read as follows: "(4) ADJUSTMENTS.—To the extent that the aniount otherwise allowable as a deduction under this subsection consists of gain described in section 1202(a), proper adjustment shall be made for any exclusion allowable to the estate or trust under section 1202. In the case of a trust, the deduction allowed
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