98 STAT. 664
PUBLIC LAW 98-369—JULY 18, 1984 siii iu
26 USC 367.
tion shall be treated as ordinary income from sources within the United States." (c) TREATMENT OF LIQUIDATIONS UNDER SECTION 336.—Section 367 is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: "(e) TREATMENT OF LIQUIDATIONS UNDER SECTION 336.—In the case of any distribution described in section 336 by a domestic corporation which is made to a person who is not a United States person, to the extent provided in regulations, gain shall be recognized under principles similar to the principles of this section." (d) SECRETARY MUST B E NOTIFIED OF TRANSACTIONS DESCRIBED IN SECTION 367.— (1) NOTIFICATION REQUIREMENT.—Subpart A of part III of
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subchapter A of chapter 61 is amended by adding after section 6038A the following new section: 26 USC 6038B. "SEC. 6038B. NOTICE OF CERTAIN TRANSFERS TO FOREIGN PERSONS. "(a) IN GENERAL.—Each United States person who— "(1) transfers property to a foreign corporation in an exchange described in section 332, 351, 354, 355, 356, or 361, or "(2) makes a distribution described in section 336 to a person ?f > a: & r ^j^Q jg j^Q^ a United States person, shall furnish to the Secretary, at such time and in such manner as the Secretary shall by regulations prescribe, such information with respect to such exchange or distribution as the Secretary may require in such regulations. "(b) PENALTY FOR FAILURE TO FURNISH INFORMATION.—
"(1) IN GENERAL.—If any United States person fails to furnish the information described in subsection (a) at the time and in the manner required by regulations, such person shall pay a penalty equal to 25 percent of the amount of the gain realized on the exchange. "(2) REASONABLE CAUSE EXCEPTION.—Paragraph (1) shall not apply to any failure if the United States person shows such failure is due to reasonable cause and not to willful neglect." (2) EXTENSION OF PERIOD FOR ASSESSMENT AND COLLECTION
Post, p. 817. 26 USC 6501.
WHERE SECRETARY NOT NOTIFIED.—Subsection (c) of section 6501 (relating to exceptions to limitations on assessment and collection) is amended by adding at the end thereof the following new paragraph: ^5,
Ante, pp. 662, 663.
"(8) FAILURE TO NOTIFY SECRETARY UNDER SECTION 6038B.—In
^^' the case of any tax imposed on any exchange by reason of subsection (a) or (d) of section 367, the time for assessment of such tax shall not expire before the date which is 3 years after the date on which the Secretary is notified of such exchange under section 6038B(a)." (3) CONFORMING AMENDMENT.—The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by adding after the item relating to section 6038A the following new item: "Sec. 6038B. Notice of certain transfers to foreign persons." (e) REPEAL OF DECLARATORY JUDGMENT PROVISIONS INVOLVING TRANSFERS OF PROPERTY FROM THE UNITED STATES.—
26 USC 7477.
(1) IN GENERAL.—Section 7477 is hereby repealed. (2) CONFORMING AMENDMENTS.—
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