118 STAT. 1652 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘(A) the taxpayer shall be allowed a deduction for the taxable year in which the partnership begins business in an amount equal to the lesser of— ‘‘(i) the amount of organizational expenses with respect to the partnership, or ‘‘(ii) $5,000, reduced (but not below zero) by the amount by which such organizational expenses exceed $50,000, and ‘‘(B) the remainder of such organizational expenses shall be allowed as a deduction ratably over the 180 month period beginning with the month in which the partnership begins business. ‘‘(2) DISPOSITIONS BEFORE CLOSE OF AMORTIZATION PERIOD.—In any case in which a partnership is liquidated before the end of the period to which paragraph (1)(B) applies, any deferred expenses attributable to the partnership which were not allowed as a deduction by reason of this section may be deducted to the extent allowable under section 165.’’. (2) CONFORMING AMENDMENT.—Subsection (b) of section 709 is amended by striking ‘‘AMORTIZATION’’ and inserting ‘‘DEDUCTION’’ in the heading. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act. SEC. 903. FREEZE OF PROVISIONS REGARDING SUSPENSION OF INTEREST WHERE SECRETARY FAILS TO CONTACT TAX PAYER. (a) IN GENERAL.—Section 6404(g) (relating to suspension of interest and certain penalties where Secretary fails to contact tax payer) is amended by striking ‘‘1 year period (18 month period in the case of taxable years beginning before January 1, 2004)’’ both places it appears and inserting ‘‘18 month period’’. (b) EXCEPTION FOR GROSS MISSTATEMENT.—Section 6404(g)(2) (relating to exceptions) is amended by striking ‘‘or’’ at the end of subparagraph (C), by redesignating subparagraph (D) as subpara graph (E), and by inserting after subparagraph (C) the following new subparagraph: ‘‘(D) any interest, penalty, addition to tax, or additional amount with respect to any gross misstatement; or’’. (c) EXCEPTION FOR LISTED AND REPORTABLE TRANSACTIONS.— Section 6404(g)(2) (relating to exceptions), as amended by subsection (b), is amended by striking ‘‘or’’ at the end of subparagraph (D), by redesignating subparagraph (E) as subparagraph (F), and by inserting after subparagraph (D) the following new subparagraph: ‘‘(E) any interest, penalty, addition to tax, or additional amount with respect to any reportable transaction with respect to which the requirement of section 6664(d)(2)(A) is not met and any listed transaction (as defined in 6707A(c)); or’’. (d) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2003. (2) EXCEPTION FOR REPORTABLE OR LISTED TRANSACTIONS.— The amendments made by subsection (c) shall apply with respect to interest accruing after October 3, 2004. 26 USC 6404 note. 26 USC 195 note.
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