124 STAT. 3539 PUBLIC LAW 111–325—DEC. 22, 2010 losses for taxable years beginning after the date of the enact- ment of this Act. (2) COORDINATION RULES.—Subparagraph (B) of section 1212(a)(3) of the Internal Revenue Code of 1986, as added by this section, shall apply to taxable years beginning after the date of the enactment of this Act. TITLE II—MODIFICATION OF GROSS IN- COME AND ASSET TESTS OF REGU- LATED INVESTMENT COMPANIES SEC. 201. SAVINGS PROVISIONS FOR FAILURES OF REGULATED INVESTMENT COMPANIES TO SATISFY GROSS INCOME AND ASSET TESTS. (a) ASSET TEST.—Subsection (d) of section 851 is amended— (1) by striking ‘‘A corporation which meets’’ and inserting the following: ‘‘(1) IN GENERAL.—A corporation which meets’’, and (2) by adding at the end the following new paragraph: ‘‘(2) SPECIAL RULES REGARDING FAILURE TO SATISFY REQUIREMENTS.—If paragraph (1) does not preserve a corpora- tion’s status as a regulated investment company for any par- ticular quarter— ‘‘(A) IN GENERAL.—A corporation that fails to meet the requirements of subsection (b)(3) (other than a failure described in subparagraph (B)(i)) for such quarter shall nevertheless be considered to have satisfied the require- ments of such subsection for such quarter if— ‘‘(i) following the corporation’s identification of the failure to satisfy the requirements of such subsection for such quarter, a description of each asset that causes the corporation to fail to satisfy the requirements of such subsection at the close of such quarter is set forth in a schedule for such quarter filed in the manner provided by the Secretary, ‘‘(ii) the failure to meet the requirements of such subsection for such quarter is due to reasonable cause and not due to willful neglect, and ‘‘(iii)(I) the corporation disposes of the assets set forth on the schedule specified in clause (i) within 6 months after the last day of the quarter in which the corporation’s identification of the failure to satisfy the requirements of such subsection occurred or such other time period prescribed by the Secretary and in the manner prescribed by the Secretary, or ‘‘(II) the requirements of such subsection are other- wise met within the time period specified in subclause (I). ‘‘(B) RULE FOR CERTAIN DE MINIMIS FAILURES.—A cor- poration that fails to meet the requirements of subsection (b)(3) for such quarter shall nevertheless be considered to have satisfied the requirements of such subsection for such quarter if— Deadline. 26 USC 851. Applicability.
