9 0 STAT. 1746
PUBLIC LAW 94-455—OCT. 4, 1976 "(c)
26 USC 6211.
D E F I C I E N C Y PROCEDURES N O T TO A P P L Y. — Subchapter B
of
chapter 63 (relating to deficiency procedure for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty^ imposed by subsection (a). " (2) The table of sections for such subchapter B is amended by a d d i n g at the end thereof the following: "Sec. 6697. Assessable penalties with respect to liability for tax of real ( estate investment trusts." (c) L A T E DESIGNATION AND P A Y M E N T OF CAPITAL G A I N DIVIDEND.—
26 USC 857.
26 USC 316.
The first sentence of subparagraph (C) of section 857(b)(3) (defining capital g a i n dividend) is amended by inserting before the period at the end thereof the following: "; except that, if there is an increase in the excess described in subparagraph (A) (ii) of this paragraph for such year which results from a determination (as defined in section 8 5 9 (c)), such designation may be made with respect to such increase at any time before the expiration of 120 days after the date of such determination". (d)
DEFINITION
OF DIVIDEND.—Subsection
(b)
of
section
316
(relating to the definition of dividend) is amended by a d d i n g a new paragraph (3) at the end thereof, to read as follows: "(3)
D E F I C I E N C Y DIVIDEND DISTRIBUTIONS BY A REAL ESTATE
INVESTMENT TRUST.—The term 'dividend' also means any distribution of property (whether or not a dividend as defined in subsection (a)) which constitutes a 'deficiency dividend' as defined in section 8 5 9 (d). " 26 USC 381.
(e) CARRYOVER OF DEFICIENCY DIVIDEND.—Section 381(c) ( r e l a t i n g
to carryovers in certain corporate acquisitions) is amended by a d d i n g a new paragraph (25) at the end thereof, to read as follows: " (25) D E F I C I E N C Y DIVIDEND OF REAL ESTATE INVESTMENT TRUST.—
Ante, p. 1742.
I f the acquiring corporation pays a deficiency dividend (as defined in section 8 5 9 (d)) with respect to the distributor or transferor corporation, such distributor or transferor corporation shall, with respect to such payments, be entitled to the deficiency dividend deduction provided in section 859." (f) T E C H N I C A L AMENDMENTS. —
26 USC 6422.
26 USC 6503.
26 USC 6515. ^,_
26 USC 856.
(1) Section 6422 (relating to certain cross references) is amended by a d d i n g a new paragraph (14) at the end thereof to read as follows: "(14) for credit or refund in case of deficiency dividends paid by a real estate investment trust, see section 859." (2) Section 6503(i) (relating to certain cross references) is amended by a d d i n g a new paragraph (5) at the end thereof, to read as follows: "(5) Deficiency dividends of a real estate investment trust, see section 859(f). (3) Section 6515 (relating to certain cross references) is amended by a d d i n g a new paragraph (8) a t the end thereof, to read as follows: "(8) Deficiency dividends of a real estate investment trust, see section 859." SEC. 1602. TRUST NOT DISQUALIFIED IN CERTAIN CASES WHERE INCOME TESTS WERE NOT MET. (a) DISQUALIFICATION N o r APPLIED.—Section 856(c) (relating to limitations) is amended by a d d i n g a t the end thereof the following new paragraph: ,,
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