Tax Technical Corrections Act of 2016

To amend the Internal Revenue Code of 1986 to make technical corrections, and for other purposes. 1. Short title; table of contents; etc (a) Short title This Act may be cited as the Tax Technical Corrections Act of 2016 (b) Amendment of Internal Revenue Code of 1986 Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents; etc. Title I—Tax technical corrections Sec. 101. Amendments relating to Protecting Americans from Tax Hikes Act of 2015. Sec. 102. Amendment relating to Consolidated Appropriations Act, 2016. Sec. 103. Amendments relating to Fixing America’s Surface Transportation Act. Sec. 104. Amendments relating to Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Sec. 105. Amendments relating to Stephen Beck, Jr., ABLE Act of 2014. Sec. 106. Amendment relating to American Taxpayer Relief Act of 2012. Sec. 107. Amendment relating to United States-Korea Free Trade Agreement Implementation Act. Sec. 108. Amendment relating to SAFETEA–LU. Sec. 109. Amendment relating to the American Jobs Creation Act of 2004. Title II—Technical corrections related to partnership audit rules Sec. 201. Scope of adjustments subject to partnership audit rules. Sec. 202. Determination of imputed underpayments. Sec. 203. Alternative procedure to filing amended returns for purposes of modifying imputed underpayment. Sec. 204. Treatment of passthrough partners in tiered structures. Sec. 205. Treatment of failure of partnership to pay imputed underpayment. Sec. 206. Other technical corrections related to partnership audit rules. Sec. 207. Effective date. Title III—Other corrections Sec. 301. Amendments relating to the Bipartisan Budget Act of 2015. Sec. 302. Amendments relating to the Energy Policy Act of 2005. Title IV—Clerical corrections and deadwood Sec. 401. Clerical corrections and deadwood-related provisions. I Tax technical corrections 101. Amendments relating to Protecting Americans from Tax Hikes Act of 2015 (a) Amendment relating to section 105 Section 132(f)(6)(A) (b) Amendments relating to section 121 Section 41(c) (1) by striking paragraph (4), (2) by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively, and (3) by striking the last sentence of paragraph (4)(C) (as so redesignated). (c) Amendments relating to section 143 (1) Section 168(k)(2)(B)(i)(III) binding contract (2) Section 168(k)(5)(B)(ii) (A) by inserting crop or more than one (B) by inserting a marketable crop or yield of begins bearing (3) Section 168(k)(5)(F) (A) by striking (or is grafted to a plant that has already been planted before such date) (B) by inserting or grafted which is planted (C) by striking (or so grafted) or grafted (4) Section 168(k)(6) (6) Phase-down In the case of qualified property placed in service by the taxpayer after December 31, 2017 (December 31, 2018, in the case of property described in subparagraph (B) or (C) of paragraph (2)), paragraph (1)(A) shall be applied by substituting for 50 percent (A) 40 percent (i) property placed in service in 2018 (other than property described in subparagraph (B) or (C) of paragraph (2)), and (ii) property described in subparagraph (B) or (C) of paragraph (2) which is placed in service in 2019, and (B) 30 percent (i) property placed in service in 2019 (other than property described in subparagraph (B) or (C) of paragraph (2)), and (ii) property described in subparagraph (B) or (C) of paragraph (2) which is placed in service in 2020. . (5) Section 168(k)(7) paragraphs (1) and (2)(F) paragraphs (1), (2)(F), and (4) (d) Amendments relating to section 167 (1) Section 168(j)(3) property to which paragraph (1) applies qualified Indian reservation property (2) Section 168(j)(8) this subsection paragraph (1) (e) Amendments relating to section 202 (1) Section 6722(c)(3)(A) (A) by striking any information return such payee statement (B) by striking filed furnished (2) Section 202(e) of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking provided furnished (f) Amendments relating to section 203 (1) Section 6109(i)(1)(A)(i) community-based certified acceptance agent community-based certifying acceptance agent (2) Section 6109(i)(1)(B) Internal Revenue Service Internal Revenue Service, a community-based certifying acceptance agent approved by the Secretary, (3) Section 6109(i)(3) (A) in subparagraph (A)— (i) by inserting ending after the issuance of such number (ii) by striking on the last day of such third consecutive taxable year on the day after the due date for the return of tax for such third consecutive taxable year (B) by striking subparagraph (B)(ii) and inserting the following: (ii) if the individual does not file a return of tax (or is not included as a dependent on the return of tax of another taxpayer) for 3 consecutive taxable years at least one of which ends after December 18, 2015, the due date for the return of tax for such third consecutive taxable year. . (4) Section 203(c) of the Protecting Americans from Tax Hikes Act of 2015 is amended— (A) by striking section 6109(i)(1)(A)(i) section 6109(i)(1) (B) by striking community-based certified acceptance agents community-based certifying acceptance agents (C) by striking Certified Certifying (5) Section 203(f) of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking The amendments Except to the extent provided in section 6109(i)(3) (g) Amendments relating to section 204 Section 204(b) of the Protecting Americans from Tax Hikes Act of 2015 is amended— (1) by striking paragraph (2), and (2) by striking so much as precedes amendment made by this section (b) Effective date. (h) Amendments relating to section 205 (1) Section 24(e)(2) identifying number taxpayer identification number (2) Section 205(c) of the Protecting Americans from Tax Hikes Act of 2015 is amended— (A) by striking paragraph (2), and (B) by striking so much as precedes shall apply to any return of tax (c) Effective date. (i) Amendments relating to section 206 Section 206(b) of the Protecting Americans from Tax Hikes Act of 2015 is amended— (1) by striking Except as provided in paragraph (2), the amendment The amendment (2) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (j) Amendment relating to section 209 Section 209(d)(2) of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking amendment made by subsection (b) amendments made by subsections (b) and (c) (k) Amendments related to sections 102 206 207 208 211 (1) Section 25A(b)(1) (A) in subparagraph (A) by striking $1,000 $2,000 (B) in subparagraph (B)— (i) by striking 50 percent 25 percent (ii) by striking $1,000 $2,000 (iii) by striking the applicable limit $4,000 (2) Subparagraphs (A) and (C) of section 25A(b)(2) are amended by striking 2 4 (3) Section 25A(b)(4) (4) Restrictions on taxpayers who improperly claimed American Opportunity Tax Credit in prior years (A) Taxpayers making prior fraudulent or reckless claims (i) In general No American Opportunity Tax Credit shall be allowed under this section for any taxable year in the disallowance period. (ii) Disallowance period For purposes of subparagraph (A), the disallowance period is— (I) the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of the American Opportunity Tax Credit under this section was due to fraud, and (II) the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of the American Opportunity Tax Credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud). (B) Taxpayers making improper prior claims In the case of a taxpayer who is denied the American Opportunity Tax Credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no American Opportunity Tax Credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit. . (4) Section 25A(d) (d) Limitations based on modified adjusted gross income (1) American Opportunity Tax Credit The American Opportunity Tax Credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— (A) the excess of— (i) the taxpayer’s modified adjusted gross income for such taxable year, over (ii) $80,000 ($160,000 in the case of a joint return), bears to (B) $10,000 ($20,000 in the case of a joint return). (2) Lifetime Learning Credit The Lifetime Learning Credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— (A) the excess of— (i) the taxpayer’s modified adjusted gross income for such taxable year, over (ii) $40,000 ($80,000 in the case of a joint return), bears to (B) $10,000 ($20,000 in the case of a joint return). (3) Modified adjusted gross income For purposes of this subsection, the term modified adjusted gross income . (5) Section 25A(f)(1) (D) Required course materials taken into account for American Opportunity Tax Credit For purposes of determining the American Opportunity Tax Credit, subparagraph (A) shall be applied by substituting tuition, fees, and course materials tuition and fees . (6) Section 25A(g)(1) (A) by striking No credit (A) In general No credit , and (B) by adding at the end the following new subparagraph: (B) Additional identification requirements with respect to American Opportunity Tax Credit (i) Student The requirements of subparagraph (A) shall not be treated as met with respect to the American Opportunity Tax Credit unless the individual's taxpayer identification number was issued on or before the due date for filing the return of tax for the taxable year. (ii) Taxpayer No American Opportunity Tax Credit shall be allowed under this section if the taxpayer identification number of the taxpayer was issued after the due date for filing the return for the taxable year. (iii) Institution No American Opportunity Tax Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which qualified tuition and related expenses were paid with respect to the individual. . (7) Section 25A(h) (h) Inflation adjustment (1) In general In the case of a taxable year beginning after 2001, the $40,000 and $80,000 amounts in subsection (d)(2) shall each be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2000 calendar year 1992 (2) Rounding If any amount as adjusted under paragraph (1) is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000. . (8) Section 25A(i) (i) Portion of American Opportunity Tax Credit made refundable Forty percent of so much of the credit allowed under subsection (a) as is attributable to the American Opportunity Tax Credit (determined after application of subsection (d) and without regard to this paragraph and section 26(a)) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year. . (9) The heading of section 25A Hope American Opportunity (10) The item relating to section 25A in the table of contents for subpart A of part IV of subchapter A of chapter 1 Sec. 25A. American Opportunity and Lifetime Learning credits. . (11) The heading of section 25A(b) Hope Scholarship Credit American Opportunity Tax Credit (12) The heading of section 25A(b)(2) hope scholarship credit american opportunity tax credit (13) The heading of section 25A(c)(2)(A) hope scholarship american opportunity tax credit (14) Section 25A Hope Scholarship Credit American Opportunity Tax Credit (15) The heading of section 529(c)(3)(B)(v) hope american opportunity (16) The heading of section 530(d)(2)(C) hope american opportunity (17) Section 6211(b)(4)(A), as amended by this Act, is amended by striking subsection (i)(5) subsection (i) (18) Section 6213(g)(2)(Q) (Q) an omission of information required by section 25A(b)(4)(B) or an entry on the return claiming the American Opportunity Tax Credit for a taxable year for which such credit is disallowed under section 25A(b)(4)(A). . (19) Section 207(b)(1) of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking the American opportunity tax credit under section 25A(i) of such Code the American Opportunity Tax Credit under section 25A of such Code (l) Amendment relating to section 311 (1) The last sentence of section 355(h)(2)(B) 80 percent at least 80 percent (2) Section 355(h)(2) (A) by striking spinoffs distributions (B) by striking Spinoffs Distributions (m) Amendment relating to section 318 (1) Section 856(c)(9)(A) (A) by striking Personal property (i) In general Personal property , and (B) by adding at the end the following new clause: (ii) Treatment of gain on disposition If— (I) personal property is leased under, or in connection with, a lease of real property, for a period of not less than 1 year, and rents attributable to such personal property are treated as rents from real property under subsection (d)(1)(C), (II) any portion of such personal property and any portion of such real property are sold, or otherwise disposed of, in a single disposition (or contemporaneously in separate dispositions), and (III) the fair market value of the personal property so sold or contemporaneously disposed of (determined at the time of disposition) does not exceed 15 percent of the total fair market value of all of the personal and real property so sold or contemporaneously disposed of (determined at the time of disposition), any gain from such dispositions shall be treated for purposes of paragraphs (2)(H) and (3)(H) as gain from the disposition of a real estate asset. . (2) Section 856(c)(9)(B) (B) Certain personal property mortgaged in connection with real property (i) In general In the case of an obligation secured by a mortgage on both real property and personal property, if the fair market value of such personal property does not exceed 15 percent of the total fair market value of all such property, such obligation shall be treated— (I) for purposes of paragraph (3)(B), as an obligation described therein, (II) for purposes of paragraph (4)(A), as a real estate asset, and (III) for purposes of paragraphs (2)(D) and (3)(C), as a mortgage on real property. (ii) Determination of fair market value (I) In general Except as provided in subclause (II), the fair market value of all such property shall be determined for purposes of clause (i) in the same manner as the fair market value of real property is determined for purposes of apportioning interest income between real property and personal property under paragraph (3)(B). (II) Gain on disposition For purposes of applying clause (i)(III), fair market value shall be determined at the time of sale or other disposition. . (n) Amendments relating to section 322 (1) Section 897(k)(2) (A) by striking so much of subparagraph (B) as precedes amounts realized by the qualified shareholder (B) Exception In the case of a qualified shareholder with one or more applicable investors— (i) subparagraph (A)(i) shall not apply to the applicable percentage of the stock of the real estate investment trust held by the qualified shareholder, and (ii) the applicable percentage of the , and (B) by adding at the end the following new subparagraph: (F) Applicable percentage For purposes of subparagraph (B), the term applicable percentage . (2) Section 897(k)(2)(D) paragraph subsection (3) Section 897(k)(2)(E) and (C) and paragraph (4) and (D) (4) Section 897(k)(3)(B)(i) for a reduced rate of withholding (i) which— (I) is eligible for benefits under the comprehensive income tax treaty described in subparagraph (A)(i)(I), but only if the dividends article of such treaty imposes conditions on the benefits allowable in the case of dividends paid by a real estate investment trust, and (II) is eligible under such treaty . (5) Section 897(k)(3)(B)(ii) (A) by adding and (B) by striking United States corporation domestic corporation (6) Section 322 of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking subsections (b)(2) and (c)(3), and the Internal Revenue Code of 1986 shall be applied as if such subsections, and amendments made thereby, had never been enacted. (7) Section 322(c)(2) of such Act is amended by striking take effect on apply with respect to testing periods (as defined in section 897(h)(4)(D) (o) Amendments related to section 323 (1) So much of subsection (l) of section 897 as precedes paragraph (2) thereof is amended to read as follows: (l) Exception for qualified foreign pension funds (1) In general For purposes of this section, a qualified foreign pension fund shall not be treated as a nonresident alien individual or a foreign corporation. For purposes of the preceding sentence, an entity all the interests of which are held by a qualified foreign pension fund shall be treated as such a fund. . (2) Subparagraph (B) of section 897(l)(2) (B) which is established— (i) by such country (or one or more political subdivisions thereof) to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (including self-employed individuals) or persons designated by such employees, as a result of services rendered by such employees to their employers, or (ii) by one or more employers to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (including self-employed individuals) or persons designated by such employees in consideration for services rendered by such employees to such employers, . (3) Section 897(l)(2)(D) provides annual information reporting about its beneficiaries to the relevant tax authorities with respect to which annual information about its beneficiaries is provided, or is otherwise available, to the relevant tax authorities (4) Section 897(l)(2)(E) (A) by striking such entity such entity or arrangement (B) by striking or such income is taxed at a reduced rate , or such income is excluded from the gross income of such entity or arrangement or is taxed at a reduced rate (p) Amendments relating to section 333 (1) Section 831(b)(2) (D) Look-through of reinsurance and fronting arrangements In the case of reinsurance or any fronting, intermediary, or similar arrangement, the term policyholder . (2) (A) Subclause (II) of section 831(b)(2)(B)(i) specified assets relevant specified assets (B) Section 831(b)(2)(B)(ii) (II) Relevant specified assets The term relevant specified assets specified relation . (q) Effective date The amendments made by this section shall take effect as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015 to which they relate. 102. Amendment relating to Consolidated Appropriations Act, 2016 (a) Amendment relating to section 305 Section 199(c)(3)(C)(i) (1) by inserting who elects the application of this clause for any taxable year, In the case of any taxpayer (2) by striking and who , and who (3) by striking the taxable year such taxable year (4) by striking under subsection (d)(9)(B) (as defined in subsection (d)(9)(B)) (b) Effective date The amendment made by this section shall take effect as if included in section 305 of division P of the Consolidated Appropriations Act, 2016. 103. Amendments relating to Fixing America’s Surface Transportation Act (a) Amendments relating to section 32101 (1) Section 7345(e)(1) (A) by striking or the Tax Court , or against the Commissioner in the Tax Court, (B) by adding at the end the following: For purposes of the preceding sentence, the court first acquiring jurisdiction over such an action shall have sole jurisdiction. (2) Section 7345(f) subsection (a) subsection (b)(1)(B) (b) Effective date The amendments made by this section shall take effect as if included in section 32101 of the Fixing America’s Surface Transportation Act. 104. Amendments relating to Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (a) Amendment relating to section 2004 Section 6662(k) (k) Inconsistent estate basis reporting For purposes of this section, there is an inconsistent estate basis . (b) Amendments relating to section 2008 Section 9503(e)(2) (1) by striking per gallon per energy equivalent of a gallon of diesel (as defined in section 4041(a)(2)(D)) (2) by striking per gallon per energy equivalent of a gallon of gasoline (as defined in section 4041(a)(2)(C)) (c) Effective date The amendments made by this section shall take effect as if included in the provision of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 to which they relate. 105. Amendments relating to Stephen Beck, Jr., ABLE Act of 2014 (a) Amendments relating to section 208 Section 208(h) of the Stephen Beck, Jr., ABLE Act of 2014 is amended— (1) by striking so much as precedes made by this section (h) Effective date (1) In general Except as provided in paragraph (2), the amendments , (2) by inserting , and statements required to be furnished, returns required to be filed (3) by adding at the end the following new paragraph: (2) Subsection (c) The amendment made by subsection (c) shall apply to returns or claims for refund filed after December 31, 2014. . (b) Effective date The amendments made by this section shall take effect as if included in section 208 of the Stephen Beck, Jr., ABLE Act of 2014. 106. Amendment relating to American Taxpayer Relief Act of 2012 (a) Amendment relating to section 104 Section 6211(b)(4)(A) subsection (i)(6) subsection (i)(5) (b) Effective date The amendment made by this section shall take effect as if included in section 104 of the American Taxpayer Relief Act of 2012. 107. Amendment relating to United States-Korea Free Trade Agreement Implementation Act (a) Amendment relating to section 501 Section 501(b) of the United States-Korea Free Trade Agreement Implementation Act is amended by striking returns required to be filed documents prepared (b) Effective date The amendment made by this section shall take effect as if included in section 501 of the United States-Korea Free Trade Agreement Implementation Act. 108. Amendment relating to SAFETEA–LU (a) Amendment relating to section 11125 Section 5681(b) who has paid the special tax (or who is exempt from payment of such special tax by reason of the provisions of section 5113(a)) who meets the requirements of section 5121(a) and section 5124 (or who is exempt from such requirements by reason of section 5121(b)) (b) Effective date The amendment made by this section shall take effect as if included in section 11125 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. 109. Amendment relating to the American Jobs Creation Act of 2004 (a) Amendment relating to section 319 Section 501(c)(12)(E) means the Federal Energy Regulatory Commission means— (i) the Federal Energy Regulatory Commission, and (ii) in the case of any utility with respect to which all of the electricity generated, transmitted, or distributed by such utility is generated, transmitted, distributed, and consumed in the same State, the State agency of such State with the authority to regulate electric utilities. . (b) Effective date The amendment made by this section shall take effect as if included in section 319 of the American Jobs Creation Act of 2004. II Technical corrections related to partnership audit rules 201. Scope of adjustments subject to partnership audit rules (a) In general Section 6241(2) (2) Partnership adjustment (A) In general The term partnership adjustment (B) Partnership-related item The term partnership-related item (i) any item or amount with respect to the partnership (without regard to whether or not such item or amount appears on the partnership’s return and including any item or amount relating to any transaction with, basis in, or liability of, the partnership) which is relevant (determined without regard to this subchapter) in determining the tax liability of any person under chapter 1, and (ii) any partner’s distributive share of any item or amount described in clause (i). . (b) Coordination with other chapters Section 6241 (9) Coordination with other chapters This subchapter shall not apply with respect to any tax imposed (or any amount required to be deducted or withheld) under chapter 2, 2A, 3, or 4, except that any partnership adjustment determined under this subchapter for purposes of chapter 1 shall be taken into account for purposes of determining any such tax to the extent that such adjustment is relevant to such determination. . (c) Conforming amendments (1) Section 6211(c) (c) Coordination with subchapter C In determining the amount of any deficiency for purposes of this subchapter, adjustments to partnership-related items shall be made only as provided in subchapter C. . (2) Section 6221(a) (a) In general Any adjustment to a partnership-related item shall be determined, and any tax attributable thereto shall be assessed and collected, and the applicability of any penalty, addition to tax, or additional amount which relates to an adjustment to any such item shall be determined, at the partnership level, except to the extent otherwise provided in this subchapter. . (3) Section 6222(a) (a) In general A partner shall, on the partner’s return, treat any partnership-related item in a manner which is consistent with the treatment of such item on the partnership return. . (4) Section 6226(a)(2) any adjustment to income, gain, loss, deduction, or credit any adjustment to a partnership-related item (5) Section 6227(a) items of income, gain, loss, deduction, or credit of the partnership partnership-related items (6) Section 6231(a)(1) any item of income, gain, loss, deduction, or credit of a partnership for a partnership taxable year any partnership-related item for any partnership taxable year (7) Section 6234(c) all items of income, gain, loss, deduction, or credit of the partnership all partnership-related items 202. Determination of imputed underpayments (a) In general Section 6225(b) (b) Determination of imputed underpayments For purposes of this subchapter— (1) In general Except as otherwise provided in this section, any imputed underpayment with respect to any reviewed year shall be determined by the Secretary by— (A) appropriately netting all partnership adjustments with respect to such reviewed year, and (B) applying the highest rate of tax in effect for the reviewed year under section 1 or 11. (2) Adjustments to distributive shares of partners not netted In the case of any adjustment which reallocates the distributive share of any item from one partner to another, such adjustment shall be taken into account by disregarding so much of such adjustment as results in a decrease in the amount of the imputed underpayment. (3) Adjustments separately netted by category For purposes of paragraph (1)(A), partnership adjustments for any reviewed year shall first be separately determined (and netted as appropriate) within each category of items that are required to be taken into account separately under section 702(a) or other provision of this title. (4) Limitation on adjustments that may be taken into account If any adjustment would (but for this paragraph)— (A) result in a decrease in the amount of the imputed underpayment, and (B) could be subject to any additional limitation under the provisions of this title (or not allowed, in whole or in part, against ordinary income) if such adjustment were taken into account by any person, such adjustment shall not be taken into account under paragraph (1)(A) except to the extent otherwise provided by the Secretary. . (b) Conforming amendments (1) Section 6225(a) (a) In general In the case of any adjustments by the Secretary to any partnership-related items with respect to any reviewed year of a partnership— (1) if such adjustments result in an imputed underpayment, the partnership shall pay an amount equal to such imputed underpayment in the adjustment year as provided in section 6232, and (2) if such adjustments do not result in an imputed underpayment, such adjustments shall be taken into account by the partnership in the adjustment year. . (2) Section 6225(c) (9) Modification of adjustments not resulting in an imputed underpayment The Secretary shall establish procedures under which the adjustments described in subsection (a)(2) may be modified in such manner as the Secretary determines appropriate. . 203. Alternative procedure to filing amended returns for purposes of modifying imputed underpayment (a) In general Section 6225(c)(2) (2) Procedures for partners to take adjustments into account (A) Amended returns of partners Such procedures shall provide that if— (i) one or more partners file returns for the taxable year of the partners which includes the end of the reviewed year of the partnership (and for any taxable year with respect to which any tax attribute is affected by reason of any adjustment referred to in clause (ii)), (ii) such returns take into account all adjustments under subsection (a) properly allocable to such partners (and the effect of such adjustments on any tax attributes), and (iii) payment of any tax due is included with such returns, then the imputed underpayment amount shall be determined without regard to the portion of the adjustments so taken into account. (B) Alternative procedure to filing amended returns Such procedures shall provide that, with respect to any partner referred to in subparagraph (A), the requirements of subparagraph (A) shall be treated as satisfied with respect to adjustments properly allocable to such partner if, in lieu of filing the returns described in such subparagraph— (i) the amounts described in subparagraph (A)(iii) are paid by the partner, (ii) the adjustments to the tax attributes of such partner referred to in subparagraph (A)(ii) are binding with respect to all subsequent taxable years of the partner, and (iii) such partner provides, in the form and manner specified by the Secretary (including, if the Secretary so specifies, in the same form as on an amended return), such information as the Secretary may require to carry out this subparagraph. (C) Reallocation of distributive share In the case of any adjustment which reallocates the distributive share of any item from one partner to another, this paragraph shall apply with respect to any such partner only if the requirements of subparagraph (A) or (B) are satisfied with respect to all partners affected by such adjustment. (D) Application of statute of limitations Sections 6501 and 6511 shall not apply with respect to any return filed for purposes of subparagraph (A)(i) or any amount paid under subparagraph (A)(iii) or (B)(i), but only with respect to adjustments referred to in subparagraph (A)(ii). (E) Application to tiered partnerships In the case of any partnership any partner of which is a partnership, except as otherwise provided by the Secretary, subparagraph (B) shall apply with respect to any partner in the chain of ownership of such partnerships. For purposes of applying the preceding sentence, an S corporation and its shareholders shall be treated in the same manner as a partnership and its partners. . (b) Conforming amendment Section 6201(a)(1) (or payments under section 6225(c)(2)(B)(i)) returns or lists 204. Treatment of passthrough partners in tiered structures (a) In general Section 6226(b) (4) Treatment of partnerships in tiered structures (A) In general If a partner which receives a statement under subsection (a)(2) is a partnership or an S corporation, such partner shall, with respect to the partner’s share of the adjustment— (i) file with the Secretary a partnership adjustment tracking report which includes such information as the Secretary may require, and (ii) either— (I) pay the imputed underpayment under rules similar to the rules of section 6225 (other than paragraphs (2)(A), (6), (7), and (9) of subsection (c) thereof), or (II) furnish statements under rules similar to the rules of subsection (a)(2). (B) Due date For purposes of subparagraph (A), with respect to a partner’s share of the adjustment, the partnership adjustment tracking report shall be filed, and the imputed underpayment shall be paid or statements shall be furnished, not later than the due date for the return for the taxable year of the audited partnership which includes the date the final determination was made with respect to such partnership. (C) Partnership payment of tax not permitted if elected out of subchapter In the case of a partnership which has elected the application of section 6221(b) with respect to the taxable year of the partnership which includes the end of the reviewed year of the audited partnership, this paragraph shall apply notwithstanding such election, except that subparagraph (A) shall be applied without regard to clause (ii)(I) thereof. (D) Audited partnership For purposes of this paragraph, the term audited partnership . (b) Conforming amendments (1) Section 6226(b)(1) Each partner’s Except as provided in paragraph (4), each partner’s (2) Section 6226(c)(2) or which is described in subsection (b)(4)(A)(ii)(I), is elected, 205. Treatment of failure of partnership To pay imputed underpayment Section 6232 (f) Failure To pay imputed underpayment (1) In general If any amount of any imputed underpayment to which section 6225 applies or which is described in section 6226(b)(4)(A)(ii)(I) (or any interest or penalties with respect to any such amount) has not been paid by the date which is 10 days after the date on which the Secretary provides notice and demand for such payment— (A) section 6621(a)(2)(B) shall be applied by substituting 5 percentage points 3 percentage points (B) the Secretary may assess upon each partner of the partnership (determined as of the close of the adjustment year) a tax equal to such partner’s proportionate share of such amount (including any such interest or penalties, determined after application of subparagraph (A)). (2) Proportionate share For purposes of paragraph (1), a partner’s proportionate share is such percentage as the Secretary may determine on the basis of such partner’s distributive share of items under section 702. The Secretary shall make determinations under the preceding sentence such that the aggregate proportionate shares so determined total 100 percent. (3) Coordination with partnership liability The liability of the partnership for any amount with respect to which a partner is made liable under paragraph (1) shall be reduced upon payment by the partner of such amount. Paragraph (1)(B) shall not apply with respect to any amount after the date on which such amount is paid by the partnership. (4) S corporations For purposes of this subsection, an S corporation and its shareholders shall be treated in the same manner as a partnership and its partners. (5) Rules related to assessment and collection (A) Deficiency procedures not applicable Subchapter B shall not apply to any assessment or collection under this paragraph. (B) Limitation on assessment Except as otherwise provided in this chapter, no assessment may be made with respect to any partner with respect to an amount under paragraph (1) (and no levy or proceeding in any court for the collection of such amount may begin) after the date which is 2 years after the date on which the Secretary provides notice and demand to the partnership with respect to such amount. . 206. Other technical corrections related to partnership audit rules (a) Limitation on amendment of statements furnished to partners not applicable to partnerships electing out of partnership audit rules Section 6031(b) Information required to be furnished by the partnership under this subsection may not be amended after the due date of the return under subsection (a) to which such information relates, except— (1) in the case of a partnership which has elected the application of section 6221(b) for the taxable year, (2) as provided in the procedures under section 6225(c), (3) with respect to statements under section 6226, or (4) as otherwise provided by the Secretary. . (b) Administrative adjustment request and partnership adjustment tracking report not treated as amended return for purposes of modification of imputed underpayments Section 6225(c)(2), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph: (F) Adjustments not treated as amended return An administrative adjustment request under section 6227 and a partnership adjustment tracking report under section 6226(b)(4)(A) shall not be treated as a return for purposes of this paragraph. . (c) Clarification of final determination with respect to partnership adjustment (1) In general Section 6226(a)(2) in the notice of final partnership adjustment by reference to the final determination with respect to such adjustment (2) Final determination Section 6225(d) (3) Final determination The final determination is made with respect to an adjustment on the date on which— (A) in the case of an adjustment pursuant to the decision of a court in a proceeding brought under section 6234, such decision becomes final, (B) in the case of an administrative adjustment request under section 6227, such administrative adjustment request is filed, or (C) in any other case, 90 days after the date on which the notice of the final partnership adjustment is mailed under section 6231. . (3) Conforming amendments (A) Section 6225(d)(2) in which— in which the final determination is made with respect to the adjustment. (B) Section 6227(b) is made is filed (d) Clarification of assessment authority Section 6226(a) (and no assessment of tax, levy, or proceeding in any court for the collection of such underpayment shall be made against such partnership) section 6225 shall not apply with respect to such underpayment (e) Treatment of partnership adjustments that result in decrease in tax in case of election To push out adjustments Section 6226(b) (1) by striking increased adjusted (2) by striking adjustment amounts correction amounts (3) by striking increase increase or decrease (4) by striking plus and (5) by striking Adjustment amounts Correction amounts (f) Time limitation for notice of proposed adjustment (1) In general Section 6231 (b) Timing of notices (1) Notice of proposed partnership adjustment Any notice of a proposed partnership adjustment shall not be mailed later than the date determined under section 6235 (determined without regard to paragraphs (2) and (3) of subsection (a) thereof). (2) Notice of final partnership adjustment (A) In general Except to the extent that the partnership elects to waive the application of this subparagraph, any notice of a final partnership adjustment shall not be mailed earlier than 270 days after the date on which the notice of the proposed partnership adjustment is mailed. (B) Statute of limitations on adjustment For the period of limitations on making adjustments, see section 6235. . (2) Conforming amendment Section 6231(a) Any notice of a final partnership adjustment Such notices Any notice of a final partnership adjustment (g) Deposit To suspend interest on imputed underpayment Section 6233 (c) Deposit To suspend interest For rules allowing deposits to suspend running of interest on potential underpayments, see section 6603. . (h) Treatment of special enforcement matters Section 6241 (10) Treatment of special enforcement matters (A) In general In the case of partnership-related items which involve special enforcement matters, the Secretary may prescribe regulations pursuant to which— (i) this subchapter (or any portion thereof) does not apply to such items, and (ii) such items are subject to such special rules (including rules related to assessment and collection) as the Secretary determines to be necessary for the effective and efficient enforcement of this title. (B) Special enforcement matters For purposes of subparagraph (A), the term special enforcement matters (i) failure to comply with the requirements of section 6226(b)(4)(A)(ii), (ii) assessments under section 6851 (relating to termination assessments of income tax) or section 6861 (relating to jeopardy assessments of income, estate, gift, and certain excise taxes), (iii) criminal investigations, (iv) indirect methods of proof of income, (v) foreign partnerships, and (vi) other matters that the Secretary determines by regulation present special enforcement considerations. . (i) Penalties related to administrative adjustment requests and partnership adjustment tracking reports (1) Failure to pay Section 6651 (i) Application to imputed underpayment For purposes of this section, any failure to comply with section 6226(b)(4)(A)(ii) shall be treated as a failure to pay the amount described in subclause (I) thereof and such amount shall be treated for purposes of this section as an amount shown as tax on a return specified in subsection (a)(1). . (2) Failure to file partnership adjustment tracking report Section 6698(a) (A) in the matter preceding paragraph (1) by inserting , or a partnership adjustment tracking report under section 6226(b)(4)(A), under section 6031 (B) in paragraph (1) by inserting , or such report, such return (C) in paragraph (2)— (i) by inserting or a report a return (ii) by inserting or 6226(b)(4)(A), respectively (3) Tax return preparer related penalties Section 6696(e)(1) , any administrative adjustment request under section 6227, and any partnership adjustment tracking report under section 6226(b)(4)(A) (4) Frivolous tax submissions Section 6702 (f) Partnership adjustments An administrative adjustment request under section 6227 and a partnership adjustment tracking report under section 6226(b)(4)(A) shall be treated as a return for purposes of this section. . (j) Adjusted Schedule K–1 treated as payee statement Section 6724(d)(2) or , or (JJ) section 6226(a)(2) (relating to statements relating to alternative to payment of imputed underpayment by partnership) or under any other provision of this title which provides for the application of rules similar to such section. . (k) Clerical corrections (1) Section 6232(d)(1)(A) a item an item (2) Section 6232(e) thereof (3) Section 6235(a) subpart subchapter (4) Section 6235(a)(3) section 6225(c)(7) section 6225(c)(7)) (5) Section 6241(5) sections 6234 section 6234 (6) The heading of the first part of subchapter C of chapter 63 I In general . (7) The heading of the second part of subchapter C of chapter 63 II Partnership adjustments . (8) The heading of the third part of subchapter C of chapter 63 III Procedure . (9) The heading of the fourth part of subchapter C of chapter 63 IV Definitions and special rules . 207. Effective date The amendments made by this title shall take effect as if included in section 1101 of the Bipartisan Budget Act of 2015. III Other corrections 301. Amendments relating to the Bipartisan Budget Act of 2015 (a) Amendments relating to section 1101 (1) Section 6011(e) (5) Special rules for partnerships (A) Partnerships permitted to be required to file on magnetic media In the case of a partnership, paragraph (2)(A) shall be applied by substituting for 250 (i) In the case of returns and statements relating to calendar year 2018, 200 (ii) In the case of returns and statements relating to calendar year 2019, 150 (iii) In the case of returns and statements relating to calendar year 2020, 100 (iv) In the case of returns and statements relating to calendar year 2021, 50 (v) In the case of returns and statements relating to calendar years after 2021, 20 (B) Partnerships required to file on magnetic media Notwithstanding subparagraph (A) and paragraph (2)(A), the Secretary shall require partnerships having more than 100 partners to file returns on magnetic media. . (2) Section 6011(e)(2) (b) Effective date The amendments made by this section shall take effect as if included in section 1101 of the Bipartisan Budget Act of 2015. 302. Amendments relating to the Energy Policy Act of 2005 (a) Amendments relating to section 1253 (1) Subclause (II) of section 168(e)(3)(B)(vi) is a qualifying small power production facility has a power production capacity of not greater than 80 megawatts, or (2) The last sentence of section 168(e)(3)(B) clause (vi)(I) subclause (I) or (II) of clause (vi) by reason of being public utility property. (b) Effective date The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. IV Clerical corrections and deadwood 401. Clerical corrections and deadwood-related provisions (a) Clerical corrections (1) The table of subchapters for chapter 1 (2) (A) Sections 22(c)(3)(A)(i)(III), 104(b)(2)(D), 140(a)(3), and 149(b)(3)(A)(i) are each amended by striking Veterans’ Administration Department of Veterans Affairs (B) The heading of section 4980H(c)(2)(F) Veterans Administration Department of Veterans Affairs (C) Section 6050H(h)(3)(B)(i) Veterans Administration Department of Veterans Affairs (3) Section 24(d) (4) Section 25C(b)(2) subsection (c)(2)(B) subsection (c)(3)(B) (5) Section 25C(d)(3) (A) by striking the period at the end of subparagraph (B) and inserting a comma, and (B) by striking the period at the end of subparagraph (D) and inserting , and (6) Section 25C(g)(2) 2016.. 2016. (7) The table of sections for subpart D of part IV of subchapter A of chapter 1 (A) by striking the item relating to section 41 which relates to the employee stock ownership credit, and (B) by moving the item relating to section 45K after the item relating to section 45J. (8) Section 38(b)(34) (9) The heading of section 40(g)(2) Aggregration Aggregation (10) The heading of section 42(e)(2)(B) etc, etc., (11) (A) Section 42(d)(4)(C)(i) as defined in paragraph (5)(C) as defined in paragraph (5)(B)(ii) (B) Section 42(f)(5)(B)(ii)(I) (d)(6)(C) (d)(6)(B) (C) Section 42(k)(2)(B) (i) by striking (d)(6)(B) (d)(6)(C) (ii) by striking building.. building. (D) Section 42(m)(1)(B)(ii)(III) as defined in subsection (d)(5)(C) as defined in subsection (d)(5)(B)(ii) (12) Section 42(h)(5)(C)(ii) ; and , and (13) Section 42(i)(3)(D)(ii)(I) (14) Section 45(c)(6) section 2(27) section 1004(27) (15) Section 45(c)(7)(A)(i)(II) for purpose for the purpose (16) Section 45(c)(7)(A)(i)(III) , or (17) Section 45C(b)(2)(A)(ii)(II) ; and , and (18) Section 45D(f)(1)(F) , and (19) Section 45H(d) purposes this purposes of this (20) Section 48(a)(1) (3)(B), and (4)(B) and (3)(B) (21) Section 48(a)(6)(B) property energy property energy property (22) Section 48(c)(2)(B) equal $200 equal to $200 (23) Section 48(d)(3) (A) by striking shall (B) by inserting shall not (24) Section 49(a)(1)(D)(iii) share-holder shareholder (25) Section 50(b)(2)(A) (26) Section 51(c)(4) (27) Section 51(d)(3)(A)(ii)(II) (28) Section 51(d)(8) food stamp recipient supplemental nutrition assistance program benefits recipient (29) Section 51(i)(1)(A) entity, entity (30) The item relating to section 54C in the table of sections for subpart I of part IV of subchapter A of chapter 1 Sec. 54C. New clean renewable energy bonds. . (31) Section 58(a)(2)(A) 461(j) 461(k) (32) Section 62(a)(20) United States Code (33) Section 62(e)(1) ( 2 U.S.C. 1202 ( 42 U.S.C. 2000e–16b (34) Section 68(b)(2) shall be shall be shall be (35) The heading of section 82 for expenses of moving of moving expenses (36) The heading of section 84 political organization political organizations (37) Section 105(h)(7)(B) subparagraph (A) subparagraph (A)) (38) Section 125(e)(2) subparagraphs subparagraph (39) Section 132(c)(4) peforming performing (40) Section 134(b)(6) an combat a combat (41) Section 139(c)(2) federally a federally (42) Section 139E(c)(1) ( 43 U.S.C. 1601 ( 43 U.S.C. 1601 et seq. (43) Section 139E(c)(3) 2013 2014 (44) The item relating to section 143 in the table of sections for subpart A of part IV of subchapter B of chapter 1 Sec. 143. Mortgage revenue bonds; qualified mortgage bond and qualified veterans’ mortgage bond. . (45) Section 141(e)(2) , and (46) Section 142(d)(2)(C) section 42(i)(3)(D) (47) Section 148(f)(4)(C)(xiv) subpargraph subparagraph (48) Section 163(e)(5)(C)(ii) in subsection (i)(1)(B) (49) Section 168(d)(3)(B)(i) real property (50) Section 168(e)(3)(C)(i) and (51) Section 169(d)(5)(B) a facility (52) Section 170(b)(1)(A)(ix) National Agricultural (53) Section 172(d)(5) section 243 sections 243 (54) Section 179D(d)(1)(B) which such that (55) Section 199 There shall be allowed (a) Allowance of deduction. (56) Section 219(f)(1) term compensation includes term compensation (57) Section 219(g)(8) shall each be shall be (58) Section 223(d)(2)(A) section 213(d) section 213(d)) (59) The item relating to section 280H in the table of sections for part IX of subchapter B of chapter 1 Sec. 280H. Limitation on certain amounts paid to employee-owners by personal service corporations electing alternative taxable years. . (60) Subparagraphs (F) and (G) of section 263(a)(1) are each amended by striking the semicolon at the end and inserting a comma. (61) Section 263(a)(1) (62) Section 280C(a) and 1396(a), 1396(a), (63) Section 280F(d)(4)(A)(iv) and and (64) The heading of section 331 shareholders shareholder (65) Section 338(h)(3)(A)(iii) paragaraph paragraph (66) The second sentence of section 355(h)(2)(B) of assets (67) The heading of subpart C of part III of subchapter C of chapter 1 corporation corporations (68) Section 362(a) acquired (69) Section 368(a)(2)(F)(vii) ( 15 U.S.C. 80a-2(36) ( 15 U.S.C. 80a–2(a)(36) (70) Section 401(a)(2) determination).; determination)); (71) Section 401(a)(15) a trust A trust (72) Section 401(a)(32)(A) section section section (73) Section 401(c)(2)(A)(iii) sections 3121(d)(3)(A), (C), or (D), without regard to paragraph (2) of section 1402(c) subparagraph (A), (C), or (D) of section 3121(d)(3), without regard to section 1402(c)(2) (74) Section 402(i) subparagraph (A) of subsection (d)(4) subsection (e)(4)(D)(i) (75) Section 404A(c)(4)(B) and (76) Section 408(a)(1) or subsection (d)(3) (77) Section 408(m)(3)(B) section 7 section 5 (78) Section 408A(d)(3)(B) (79) Section 408A(e)(2)(B) the subparagraph (A) subparagraph (A) (80) Section 409(n)(1)(A)(i) securities,,, securities, (81) Section 409A(b)(3)(B)(i) (82) The item relating to section 413 in the table of sections for subpart B of part I of subchapter D of chapter 1 Sec. 413. Collectively bargained plans, etc. . (83) Section 411(a)(4)(A) (84) Section 411(b)(5)(B)(iv) similar amount similar account (85) Section 412(c)(1)(A) (86) Section 412(c)(4)(B) section 433(d) (87) Section 412(c)(7)(B)(iii) subchapter D (88) Section 414(l)(2)(G) banks depository institutions (89) Section 414(u)(6) section 403(b) section 403(b)) (90) Section 414(x)(1) are is (91) Section 414(y)(1)(C)(i) of such Code (92) Section 414(y)(2) subparagraph subparagraphs (93) Section 418E subsection 432(b)(2) section 432(b)(2) (94) Section 418E(d)(1), as amended by the preceding paragraph, is amended— (A) by striking section 432(b)(2),, section 432(b)(2), (B) by striking section 432(b)(2),) section 432(b)(2)) (95) Section 418E(e)(1)(A) (A) notify the Secretary and the parties described in section 101(f)(1) of the Employee Retirement Income Security Act of 1974 of that determination, and . (96) Section 419A(c)(6)(B) ( 42 U.S.C. 300gg-91(d)(3) ( 42 U.S.C. 300gg–91(d)(3) (97) Section 420(c)(1)(A) subsection (e)(1)(D) subsection (e)(1)(E) (98) Section 424(g) section 422(a)(2) sections 422(a)(2) (99) Section 430(c)(7)(E)(v)(II) the title I of (100) Section 430(h)(2)(F) section 417(e)(3)(D)(i) section 417(e)(3)(D) (101) Section 431(d)(2)(B)(i) this Act the Pension Protection Act of 2006 (102) Section 432(b)(3)(A)(i) paragraph (5),, paragraph (5), (103) Section 432(b)(3)(B) (104) Section 432(b)(3)(D)(iv) Labor (105) Section 432(e)(8)(C)(iii) the Secretary shall The Secretary shall (106) Section 432(g)(1) subsection (e)(9)) subsection (e)(9) (107) Section 433(c)(5)(C)(ii)(II) of such Act title IV (108) The item relating to section 436 in the table of sections for subpart B of part III of subchapter D of chapter 1 Sec. 436. Funding-based limits on benefits and benefit accruals under single-employer plans. . (109) Section 447(h)(2)(A) employes employees (110) Section 447(i)(5)(B) (111) The heading of section 453B loss disposition loss on disposition (112) Section 457(f)(4)(C)(i) (A) by striking section 9101 section 8101 (B) by striking 7801), 7801)), (113) Section 457A(d)(4) (A) by striking case a foreign case of a foreign (B) by striking had been been (114) Section 458(b)(9) Repurchased Repurchase (115) Section 458(c)(1) regulations prescribed regulations prescribe (116) Section 460(b)(2)(A) first (117) (A) Section 461 (B) Section 461(i)(4) subsection (j) subsection (k) (118) The heading of section 464 expenses farming (119) Section 464(d)(2)(B)(iii) subsection (c)(2)(E) section 461(k)(2)(E) (120) Section 470(d)(2)(B) clause (ii) subparagraph (A)(ii) (121) The item relating to part VIII in the table of parts for subchapter F of chapter 1 Part VIII. Certain savings entities . (122) Section 501(c)(14)(B)(iv) (123) Section 501(c)(19)(B) widows,, widows, (124) Section 501(f)(3)(B) section 115(a) section 115 (125) The item relating to section 511 in the table of sections for part III of subchapter F of chapter 1 Sec. 511. Imposition of tax on unrelated business income of charitable, etc., organizations. . (126) Section 512(b)(19)(H)(iii) clause (i)(II) clause (i) (127) Section 529(c)(6) an Coverdell a Coverdell (128) Section 529(e)(3)(A) (A) by striking the semicolon at the end of clause (i) and inserting a comma, and (B) by adding , and (129) Section 529A(d)(4) Achieving a Better Life Experience Act of 2014 Stephen Beck, Jr., ABLE Act of 2014 (130) Section 529A(e)(4) subparagraph section section (131) Section 530(d)(9)(B) by the by (132) Section 542(c)(5) (133) Section 542(c)(7) A small a small (134) Section 543(a)(2)(B)(ii) section 563(d) section 563(c) (135) Section 543(d)(5)(A)(ii) section 563(d) section 563(c) (136) Section 613A(c)(7)(B) taxpayers taxpayer’s (137) Section 642(c)(1) other then other than (138) The item relating to section 661 in the table of sections for subpart C of part I of subchapter J of chapter 1 Sec. 661. Deduction for estates and trusts accumulating income or distributing corpus. . (139) Section 706(b)(5) section 584(h) section 584(i) (140) Section 751(c) and, sections and sections (141) Section 807(e)(7)(A)(i) subparagraph (C) subparagraph (B) (142) Section 810(c)(2)(B) corporations), corporations) (143) Section 810(d)(1) paragraphs (2) and (3) of section 804) or paragraph (2) of section 804) for (144) Section 810(f) section 805(b)(5) section 805(b)(4) (145) Section 831(c) section 816(a)). section 816(a). (146) Section 832(b)(7)(E)(ii)(II) (147) Section 852(a)(1)(B) 265, 265 and (148) Section 852(b)(2)(D) the deduction The deduction (149) Subparagraphs (A) and (B) of section 856(c)(7) are each amended by striking paragraph (4)(B)(iii) paragraph (4)(B)(iv) (150) Paragraphs (1), (3), (4), and (5) of section 856(m) are each amended by striking subsection (c)(4)(B)(iii) subsection (c)(4)(B)(iv) (151) Section 857(b)(6)(J) section 856(c)(8) section 856(c)(10) (152) Section 860(f)(2)(A)(ii) decreased decrease (153) Section 860(i) willfull willful (154) Section 860G(a)(3)(A)(iii)(III) (155) Section 864(d)(8) section 956(b)(3) section 956(c)(3) (156) Section 877(d)(4)(B)(i) in 957 in section 957 (157) Section 877A(g)(6) 220(e)(4) 220(f)(4) (158) Section 897(a)(1)(A) section 871(B)(1) section 871(b)(1) (159) The heading of section 897(k)(2) usrpi united states real property interest (160) Section 904(d)(2)(B)(ii) subparagraph (E)(iii) or paragraph (3)(I) subparagraph (E)(ii) or paragraph (3)(H) (161) Section 907(c)(3)(C) partnerships (162) Section 907(f)(1) year, years, (163) Section 911(d)(8)(B)(i) (50 U.S.C. App. 1 et seq.) ( 50 U.S.C. 4301 et seq. (164) Section 912(1)(B) (50 U.S.C., sec. 403e) ( 50 U.S.C. 3505 (165) Section 936(h)(5)(C)(i)(III)(a) corporations corporation’s (166) Section 954(b)(5) income,, income, (167) Section 954(b)(6) paragraph (2) (168) Section 956(c)(2)(E) section 953(a)(1) section 953(e)(2) (169) Section 956(e) provisons provisions (170) Section 957(b) section 953(a)(1) section 953(e)(2) (171) Section 960(b)(3) Reconcilation Reconciliation (172) The heading of section 993 and special rules Definitions (173) Section 1016(a)(3)(D) as in effect prior to its repeal by the Tax Reform Act of 1986 (or the corresponding provisions of prior income tax laws) (174) Section 1033(h)(2) is located (175) Section 1035(a)(1) ; or (176) Section 1059(d)(3) ; except that and there shall not be taken into account any day which is more than 2 years after the date on which such share becomes ex-dividend. (177) Section 1092(a)(2)(B) with respect other with respect to other (178) Section 1092(c)(4)(E) (other than subparagraph (B) thereof) (179) The item relating to section 1222 in the table of sections for part III of subchapter P of chapter 1 Sec. 1222. Other terms relating to capital gains and losses. . (180) The item relating to section 1252 in the table of sections for part IV of subchapter P of chapter 1 Sec. 1252. Gain from disposition of farm land. . (181) Section 1250(d)(3) paragraph (9) paragraph (6) (182) Section 1255(b)(2) 170(e), 170(e) (183) (A) Subparagraphs (B) and (C) of section 1256(e)(3) are each amended by striking section 464(e)(2) section 461(k)(4) (B) Section 1258(d)(5)(C) section 464(e)(2) section 461(k)(4) (184) Section 1257(c)(1) (A) by striking section 1201(4) section 1201(a)(7) (B) by striking 16 U.S.C. 3801(4) 16 U.S.C. 3801(7) (185) Section 1257(c)(2) (A) by striking section 1201(6) section 1201(a)(10) (B) by striking 16 U.S.C. 3801(6) 16 U.S.C. 3801(10) (186) Section 1274(b)(3)(B)(i) section 6662(d)(2)(C)(iii) section 6662(d)(2)(C)(ii) (187) Section 1276(a)(4) 871(a),, 871(a), (188) Section 1278(b)(1) 871(a),, 871(a), (189) Section 1286(f) and 305(e), and section 305(e), (190) Section 1291(e) subsections (c) and (d) (e), subsections (c), (d), and (e) (191) Section 1298(b)(5)(B) section 951(f) section 951(c) (192) Section 1298(d)(2)(A) section 1296(a)(2) section 1297(a)(2) (193) Section 1298(e)(2)(B)(ii) provisons provisions (194) Section 1355(f)(3) of which on which (195) Section 1358(b)(1) section 1352(a)(2) section 1352(2) (196) Section 1358(c)(2) an person’s a person’s (197) Sections 1361(f)(2), 1362(d)(3)(C)(v), and 4975(d)(16)(A) are each amended by striking 1813(w)(1)), 1813(w)(1))), (198) Section 1362(f) may be during may be, during (199) Section 1366(e) section 704(e)(3) section 704(e)(2) (200) Section 1368(f)(2) in included is included (201) Section 1391(g)(3)(E)(ii) Interior the Interior (202) Section 1394(b)(3)(B)(i)(II) subsection subsections (203) Section 1397C(d)(5)(B) subparagraphs (A) or (B) subparagraph (A) or (B) (204) Section 1402(a)(1) (A) by striking section 1233(2) section 1233(a)(2) (B) by striking 16 U.S.C. 3833(2) 16 U.S.C. 3833(a)(2) (205) Section 1402(b) 3211,. 3211. (206) The heading of section 1446 Withholding tax Withholding of tax (207) Section 2031(c)(1) (B) $500,000. . (208) Section 2031(c)(2) paragraph (5)). paragraph (5))). (209) Section 2055(e)(3)(G) subparagraph (J) subparagraph (J)) (210) Section 2106(a)(4) section 2058(a) (211) Section 2522(c)(1) to of for to or for (212) Section 2523(g)(1) noncharitable beneficiary beneficiary who is not a charitable beneficiary (213) Section 2523(g)(2) noncharitable charitable (214) Section 3101(a) (215) Section 3111(e)(5)(B) the meaning (216) Section 3121(b)(5)(B)(i)(V) section 105(e)(2) section 104(e)(2) (217) Section 3121(b)(5)(H)(i) 1997 1997, (218) Section 3304(a)(4)(G)(ii) section 6402(f)(4)(B) section 6402(f)(4)(C) (219) Section 3306(b)(5)(F) (220) Section 3306(c)(19) Service service (221) Section 3306(u) 25 U.S.C. 450b(e) 25 U.S.C. 5304(e) (222) Section 3306(v) this part this section (223) Section 3309(d) 25 U.S.C. 450b(e) 25 U.S.C. 5304(e) (224) (A) Paragraphs (1), (2), (3), (4)(B), (5), (6), (8)(A)(ii), (8)(B), (8)(D), (9), (10)(B), (11), (12)(A), (12)(B), (12)(C), (13), (14), and (15) of section 3401(a) are each amended by striking ; or (B) Paragraphs (4)(A), (8)(A)(i), (8)(C), (10)(A), (12)(D), and (22) of section 3401(a) are each amended by striking ; or , or (C) Section 3401(a)(12)(E) , or (D) Paragraphs (16)(A), (16)(B), (17), (18), (19), (20), and (21) of section 3401(a) are each amended by striking the semicolon at the end and inserting a comma. (225) Section 3509(d)(1)(C) sections section (226) Section 4051(a)(3) Secretary. Secretary). (227) Section 4104(a)(1) section sections (228) Section 4221(a) section 4051, section 4051 (229) The item relating to part III in the table of parts for subchapter C of chapter 33 relating applicable (230) Section 4612(e)(2)(B)(ii)(I) tranferred transferred (231) Section 4958(f)(1)(D) (232) Section 4971(c)(3) applicable and applicable, and (233) Section 4971(f) applicable for applicable, for (234) Section 4971(g)(4)(C)(ii) section 432(i)(9) section 432(j)(9) (235) Section 4975(d)(3) an leveraged a leveraged (236) Section 4975(d)(17) Any any (237) Section 4975(d)(21) person person person (238) Section 4975(f)(8)(C)(iv)(II) subsection (d)(17)(A)(ii) (239) Section 4975(f)(8)(F)(i)(I) adviser, adviser (240) Section 4975(f)(8)(F)(i)(V) of the manner (241) Section 4980B(f)(1) section 2162 of the Public Health Service Act section 1928(h)(6) of the Social Security Act ( 42 U.S.C. 1396s(h)(6) (242) Section 4980B(f)(5)(C)(iii) section 2701(c)(2) section 2704(c)(2) (243) Section 4980I(b)(3)(C)(iv) (244) Section 4980I(b)(3)(C)(v) for for for (245) Section 5054(a)(3)(B) sections section (246) Section 5066(d) section 5001(a)(5) section 5001(a)(4) (247) The item relating to subpart C in the table of subparts for part II of subchapter A of chapter 51 Subpart C. Recordkeeping and registration by dealers . (248) The item relating to section 5178 in the table of sections for subchapter B of chapter 51 Sec. 5178. Premises of distilled spirits plants. . (249) Section 5182 section 5112 section 5121 (250) Section 5273(e)(2) section 5001(a)(6) section 5001(a)(5) (251) Section 5314(a)(2) section 5001(a)(10) section 5001(a)(9) (252) Section 5392(f) section 17(a)(5) section 117(a)(5) (253) Section 5512 section 5001(a)(7) section 5001(a)(6) (254) Section 5601(a)(15) Withdraws, withdraws, (255) The heading of section 5603 returns (256) Section 5701(e) manufacturered manufactured (257) The item relating to section 5847 in the table of sections for part I of subchapter B of chapter 53 Sec. 5847. Effect on other laws. . (258) Section 5847 section 414 of the Mutual Security Act of 1954 section 38 of the Arms Export Control Act ( 22 U.S.C. 2778 (259) The item relating to section 5852 in the table of sections for part II of subchapter B of chapter 53 Sec. 5852. General transfer and making tax exemption. . (260) The item relating to section 5853 in the table of sections for part II of subchapter B of chapter 53 Sec. 5853. Transfer and making tax exemption available to certain governmental entities. . (261) Section 6012(a)(6) and (262) Section 6012(a)(7) ; and (263) Section 6012(a)(8) section 63(c)(2)(D). section 63(c)(2)(C); (264) Section 6033(b)(15) , and (265) Section 6039(d)(2) (2) the term employee stock purchase plan . (266) The table of sections for subpart B of part III of subchapter A of chapter 61 Sec. 6041A. Returns regarding payments of remuneration for services and direct sales. . (267) The item relating to section 6050I in the table of sections for subpart B of part III of subchapter A of chapter 61 Sec. 6050I. Returns relating to cash received in trade or business, etc. . (268) The item relating to section 6050W in the table of sections for subpart B of part III of subchapter A of chapter 61 Sec. 6050W. Returns relating to payments made in settlement of payment card and third party network transactions. . (269) Section 6050H(h)(3)(B)(i) Rural Housing Administration Rural Housing Service (270) Section 6058(e) (271) Section 6059(b)(3)(B) (A) by striking the requirements that the requirements (B) by striking the period at the end and inserting a comma. (272) Section 6091(b)(2)(B)(ii) and (273) Section 6103(l)(7) of 1977 (274) Section 6103(l)(10)(A) request made under subsection (f)(5) notice submitted under subsection (f)(5)(C) (275) Section 6103(l)(10) Any (B) Restriction on use of disclosed information (i) . (276) Section 6103(l)(16)(A) subsection 6103(b)(6) section 6103(b)(6) (277) Section 6103(p)(3)(A) subsections subsection (278) Section 6103(p)(3)(C)(ii) (279) Section 6103(p)(4) 7(a)(ii) (7)(A)(ii) (280) Section 6103(p)(4)(F)(ii) (A) by striking subsections subsection (B) by striking subsection (l)(21),,, subsection (l)(21), (281) Section 6103(p)(4) subsection (l)(21),, subsection (l)(21), (282) Section 6109(f) of 1977 (283) Section 6213(g)(2)(O) (284) Section 6213(g)(2)(P) (A) by striking section 24(h)(2) section 24(g)(2) (B) by striking subsection (h)(1) subsection (g)(1) (285) Section 6302(e)(2)(A) sections section (286) Section 6311(d)(3)(D) (A) by striking section 103(f) section 103(g) (B) by striking 1602(f) 1602(g) (287) Section 6330(d)(2) , and (288) Section 6334(a)(10)(A) V,, V, (289) Section 6342(a) subsection (c)(2) subsection (d)(2) (290) Section 6402(a) (f) refund (f), refund (291) Section 6402(c) of of of (292) Section 6402(d)(2) section 402(a)(26) of the Social Security Act section 408(a)(3) of the Social Security Act ( 42 U.S.C. 608(a)(3) (293) Section 6404(g)(2)(E) section 6664(d)(2)(A) section 6664(d)(3)(A) (294) Section 6420(i)(4) State and State (and (295) Section 6421(c) (4) (5) (4), (5) (296) Section 6421(j)(3) State and State (and (297) Section 6422 (A) by striking paragraph (7), (B) by redesignating paragraphs (8) through (12) as paragraphs (7) through (11), respectively, and (C) by striking for credit For credit (298) Section 6425(c)(1)(A) The sum the sum (299) Section 6426(b)(2)(A)(ii) cents.. cents. (300) Section 6501(m) any election (or any any election under section 30B(h)(9), 30C(e)(4), 30D(e)(4), 35(g)(11), 40(f), 43, 45B, 45C(d)(4), 45H(g), or 51(j) (or any (301) Section 6503(a)(1) section 6230(a)). section 6230(a)) (302) Section 6612(c) (A) by inserting sections 2014(e) (B) by striking and 6420 6420 (303) The item relating to section 6651 in the table of sections for part I of subchapter A of chapter 68 Sec. 6651. Failure to file tax return or to pay tax. . (304) Each of the following sections are amended by inserting an amount equal to increased by for the calendar year section 1(f)(3) (A) Section 6651(i). (B) Section 6652(c)(7)(A). (C) Section 6695(h)(1). (D) Section 6698(e)(1). (E) Section 6699(e)(1). (F) Section 6721(f)(1). (G) Section 6722(f)(1). (305) Section 6654(a) chapter 1 the tax chapter 1, the tax (306) Section 6654(f)(3) taxes tax (307) Section 6662(d)(3) section 6664(d)(2) section 6664(d)(3) (308) Section 6662 (309) The heading of section 6676(c) reasonable basis reasonable cause (310) The item relating to section 6684 in the table of sections for part I of subchapter B of chapter 68 Sec. 6684. Assessable penalties with respect to liability for tax under chapter 42. . (311) The item relating to section 6686 in the table of sections for part I of subchapter B of chapter 68 Sec. 6686. Failure to file returns or supply information by DISC or former FSC. . (312) Section 6679(a)(1) section 6046 and 6046A section 6046 or 6046A (313) Section 6695(h)(2) subparagraph (A) paragraph (1) (314) Section 6695(h)(2)(B) clause (i) subparagraph (A) (315) Section 6696(a) section 6694, sections 6694, (316) Section 6696(d)(1) section 6695, 6695, (317) Section 6698(b)(2) (318) Section 6700(a) the $1,000 $1,000 (319) Section 6724(d)(1)(B)(xx) or (320) Section 6724(d)(1)(B)(xxi) and (321) Section 6724(d)(1) Such term also includes Such term also includes . (322) Section 6724(d)(2)(F) (323) Section 6724(d)(2)(M) (h)(2) relating (h)(2) (relating (324) Section 6724(d)(2)(DD) (325) Section 6863(a) 6852,, 6852, (326) Section 6901(a)(1)(B) Code in Code, in (327) Section 7275(b)(2) taxes, shall taxes, (328) Section 7421(b)(2) Code in Code, in (329) (A) Subsections (e) and (i) of section 7422 and sections 3121(b)(5)(E), 6110(j)(1)(B), 7428(a), and 7430(c)(6) are each amended by striking United States Claims Court United States Court of Federal Claims (B) Subsections (a), (b), and (c)(1)(C)(iii) of section 7428 are each amended by striking Claims Court Court of Federal Claims (C) The heading of section 4961(c)(1) united states claims court united states court of federal claims (D) Section 6672(c)(2) Court of Claims Court of Federal Claims (330) The item relating to section 7448 in the table of sections for part I of subchapter C of chapter 76 Sec. 7448. Annuities to surviving spouses and dependent children of judges and special trial judges. . (331) Section 7448(j)(1)(A) Code,), Code), (332) Section 7448(m) Code, Code), (333) Section 7454(b) 4955),, 4955), (334) Section 7654(d)(1) 50 App. U.S.C. 501 et seq. 50 U.S.C. 3901 et seq. (335) Section 7701(a)(36)(B) an ‘tax a ‘tax (336) Section 7701(e)(5)(B) Reconcilation Reconciliation (337) Section 7801(a)(2)(B) (A) by striking this Act the Homeland Security Act of 2002 (B) by striking effective date of the Homeland Security Act of 2002 effective date of such Act (338) Section 7809(c)(1) Work work (339) Section 7851(a)(1)(A) , 4 (340) Section 7851(a)(1)(B) Chapters 3 and 5 Chapter 3 (341) Section 7871(c)(3)(D)(ii)(II) calender calendar (342) Section 9003(b)(2) section 9006(d) section 9006(c) (343) Section 9011(b)(1) contrue construe (344) Section 9502(d)(2) farms, farms), (345) Section 9503(c)(5) and before October 1, 2011, (346) Section 9508(c)(1) the Public Public (347) Section 9701(a)(4) section 9713A section 9712 (348) Section 9704(d)(2)(B) 1232)), 1232), (349) Section 9704(h) Secretary Commissioner (350) Section 9705(b)(1) 1232(h) 1232 (351) Section 9705(b)(2) Acts Act (352) Section 9711(c)(4)(B) paragraph (4)(C) paragraph (3)(C) (353) Section 9712(a)(4)(A) section 402 of subsections (h) and (i) of (354) Section 9812(a)(3)(B)(i) (355) Section 302 of division P of the Consolidated Appropriations Act, 2016 is amended— (A) in subsection (a), by inserting of the Internal Revenue Code of 1986 section 48(a)(5)(C) (B) in subsection (b), by inserting of such Code section 48(a) (356) Section 32103(a) of the Fixing America’s Surface Transportation Act is amended by striking section 52106 section 32102 (b) General deadwood-Related provisions (1) Section 25A(c)(1) ($5,000 in the case of taxable years beginning before January 1, 2003) (2) Section 26(b)(2) (3) Section 32(l) , and any payment made to such individual (or such spouse) by an employer under section 3507, (4) (A) Section 38(c)(5) (i) by striking all that precedes subparagraph (C) thereof and inserting the following: (5) Rules related to eligible small businesses , (ii) by redesignating subparagraphs (C) and (D) as subparagraphs (A) and (B), respectively, and (iii) by amending subparagraph (B) (as so redesignated) to read as follows: (B) Treatment of partners and S corporation shareholders For purposes of paragraph (4)(B)(ii), any credit determined under section 41 with respect to a partnership or S corporation shall not be treated as a specified credit by any partner or shareholder unless such partner or shareholder meets the gross receipts test under subparagraph (A) for the taxable year in which such credit is treated as a current year business credit. . (B) Section 38(c)(2)(A)(ii)(II) the eligible small business credits, (C) Section 38(c)(4)(A)(ii)(II) the eligible small business credits and (D) Section 38(c)(4)(B)(ii) (as defined in paragraph (5)(C), after application of rules similar to the rules of paragraph (5)(D)) (as defined in paragraph (5)(A) after application of the rules of paragraph (5)(B)) (5) Section 56(d)(1)(A)(ii)(I) (as in effect before its repeal by the Tax Increase Prevention Act of 2014) section 172(b)(1)(H) (6) (A) Section 139(c)(2) section 165(h)(3)(C)(i) section 165(i)(5)(A) (B) Section 7508A(a) section 165(h)(3)(C)(i) section 165(i)(5)(A) (7) Section 140(a) (8) Section 163(d)(4) (9) Section 168 (10) Section 172(b)(1)(D)(iv) subsection (h) subsection (g) (11) Section 246A(b)(1) without regard to section 243(d)(4) (12) Section 409 (13) Section 411(a)(3)(F)(i) under section 418D or (14) Section 413(b)(6) and the last sentence of section 4971(a) (15) Section 415(g) subsection (f)(3) subsection (f)(2) (16) (A) Section 419(e)(3)(A) (17), or (20) or (17) (B) Section 419A(g)(1) (17), or (20) or (17) (C) Section 419A(g)(2) (17), or (20) or (17) (D) Section 505 (i) in the heading thereof, by striking paragraph (9), (17), or (20) paragraph (9) or (17) (ii) in the heading of subsection (a), by striking paragraph (9) (20) 501(c) section 501(c)(9) (iii) in subsection (a)(1), by striking paragraph (9) or (20) of subsection (c) of section 501 section 501(c)(9) (iv) in subsection (c)(1), by striking paragraph (9), (17), or (20) paragraph (9) or (17) (E) Subparagraphs (A), (C), and (D) of section 512(a)(3) are each amended in the text thereof by striking (17), or (20) or (17) (F) Subparagraphs (B)(ii) and (E) of section 512(a)(3) are each amended in the text thereof by striking , (17), or (20) or (17) (G) The heading of section 512(a)(3) (17), or (20) or (17) (H) The heading of section 512(a)(3)(E) , (17), or (20) or (17) (I) The item relating to section 505 in the table of sections for part I of subchapter F of chapter 1 Sec. 505. Additional requirements for organizations described in paragraph (9) or (17) of section 501(c). . (17) Section 501(p)(4) , 556(b)(2) (18) Section 530(b)(3) (A) by striking (as defined in section 170(e)(6)(F)(i)) (B) by adding at the end the following new subparagraph: (C) Computer technology or equipment The term computer technology or equipment . (19) Section 593(b)(2)(D)(iv) (determined without regard to section 596) (20) Section 597(c)(1) or section 21A of the Federal Home Loan Bank Act (21) Section 664(g)(3)(E) limitations under sections 415(c) and (e) limitation under section 415(c) (22) Section 810(b) (23) Section 856(m) (24) Section 871(a)(3) (25) Section 992(d) (26) Section 1245(a)(3)(C) , 185 (27) (A) Section 1252(a)(1) during a taxable year beginning (B) Section 1252(a)(1)(A) (i) by striking sections section (ii) by striking and 182 for expenditures for expenditures (C) Section 1252(a)(2) (i) by striking sections section (ii) by striking or 182 (28) Section 3111 (29) Section 3127(b)(3) or 222(b) (30) Section 3221 (31) Section 4481(d) (d) One tax liability per period To the extent that the tax imposed by this section is paid with respect to any highway motor vehicle for any taxable period, no further tax shall be imposed by this section for such taxable period with respect to such vehicle. . (32) Section 4971(d) (33) Section 6050G(a)(2) (to the extent not previously taken into account under section 72(d)(1)) (34) Section 6215(b) (35) Section 6601(b) (36) Section 6654(d)(1)(C)(i) by substituting by substituting 110 percent 100 percent (37) Section 6654(d)(1) (38) Part II of subchapter C of chapter 75 (39) Section 7448(a)(5) , whether or not performing judicial duties under section 7443B (40) Section 7448(a)(6) , and compensation received under section 7443B (41) Section 7448(d) at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter at 3 percent per annum (42) Section 7701(a)(19)(A) either (i) (ii) (43) Section 7701(a)(32)(A) (A) is subject by law to supervision and examination by State or Federal authority having supervision over such institutions, and . (c) Repeal of certain obsolete bond provisions (1) Certain rules with respect to bonds issued before July 2, 1982 (A) Section 1271 (i) by striking subsection (c) and by redesignating subsection (d) as subsection (c), and (ii) by striking (and paragraph (2) of subsection (c)) (B) Section 1272 (C) Section 163(e)(1) In the case of any debt instrument issued after July 1, 1982, the portion of the original issue discount with respect to such debt instrument which is The portion of the original issue discount with respect to any debt instrument which is (D) Section 163(j)(2)(C)(ii) or (b)(4) (E) Section 1271(a)(2)(A)(ii) subsection (a)(7) or (b)(4) of section 1272 section 1272(a)(7) (F) Section 1271(b)(1) (1) In general This section shall not apply to any obligation issued by a natural person before June 9, 1997. . (G) Section 1272(a) (i) by striking on debt instruments issued after July 1, 1982, (ii) by striking issued after July 1, 1982 (H) Section 1278(a)(4)(B) or (b)(4) (I) The amendments made by this paragraph shall apply to debt instruments issued on or after July 2, 1982. (2) Certain rules with respect to stripped bonds purchased before July 2, 1982 (A) Section 1286 (B) Subsections (a) and (b) of section 1286 are each amended by striking after July 1, 1982, (C) Section 1286(e)(5) (D) The amendments made by this paragraph shall apply to bonds purchased on or after July 2, 1982. (3) Certain rules with respect to obligations issued before March 2, 1984 (A) Section 1272(a)(2) (B) Section 163(e)(4) (4) Exception This subsection shall not apply to any debt instrument described in section 1272(a)(2)(D) (relating to loans between natural persons). . (C) The amendments made by this paragraph shall apply to obligations issued on or after March 2, 1984. (d) Deadwood provisions involving repeal of one or more sections (1) Energy efficient appliance credit (A) In general Subpart D of part IV of subchapter A of chapter 1 (B) Conforming amendment Section 38(b), as amended by the preceding provisions of this Act, is amended by striking paragraph (24) and by redesignating paragraphs (25) through (36) as paragraphs (24) through (35), respectively. (2) Qualifying therapeutic discovery project credit (A) In general Subpart E of part IV of subchapter A of chapter 1 (B) Conforming amendments (i) Section 49(a)(1)(C) and , and (ii) Section 50(a)(2)(E) 48C(b)(2), or 48D(b)(4) or 48C(b)(2) (iii) Section 280C (C) Savings provision In the case of the repeal of section 48D(e)(1) (3) DC Zone provisions (A) In general Chapter 1 (B) Conforming amendments (i) Section 23(c)(1) sections 25D and 1400C section 25D (ii) Section 25(e)(1)(C) sections 23, 25D, and 1400C sections 23 and 25D (iii) Section 45D(h) sections 1202, 1400B, and 1400F section 1202 (iv) Section 1016(a) (v) Section 1202(a)(2)(B) (as in effect before its repeal) 1400B(b) (vi) Section 1223(13) sections 1202(a)(2), 1202(c)(2)(A), 1400B(b), and 1400F(b) subsections (a)(2) and (c)(2)(A) of section 1202 (vii) Section 1397B(b)(1) (C) Savings provisions The amendments made by this paragraph shall not apply to— (i) in the case of the repeal of section 1400A (ii) in the case of the repeal of section 1400B of such Code, DC Zone assets (as defined in such section, as in effect before its repeal) which were acquired by the taxpayer before January 1, 2012, and (iii) in the case of the repeal of section 1400C of such Code, principal residences acquired before January 1, 2012. (4) Renewal community provisions (A) In general Chapter 1 (B) Conforming amendments (i) (I) Section 469(i)(3) (II) Section 469(i)(3)(D), as so redesignated, is amended to read as follows: (D) Ordering rule Paragraph (1) shall be applied for any taxable year— (i) first, to the passive activity loss, (ii) second, to the portion of the passive activity credit to which subparagraph (B) and (C) does not apply, (iii) third, to the portion of such credit to which subparagraph (B) applies, and (iv) then, to the portion of such credit to which subparagraph (C) applies. . (III) Section 469(i)(6)(B) (aa) by striking , rehabilitation credit, or commercial revitalization deduction or rehabilitation credit (bb) by adding or (cc) by striking , or (dd) by striking clause (iii). (IV) Section 1397B(b)(1), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph: (B) References Any reference in this paragraph to section 1400F shall be treated as reference to such section before its repeal. . (C) Savings provisions The amendments made by this paragraph shall not apply to— (i) in the case of the repeal of section 1400F (ii) in the case of the repeal section 1400H of such Code, wages paid or incurred before January 1, 2010, (iii) in the case of the repeal of section 1400I of such Code, qualified revitalization buildings (as defined in such section, as in effect before its repeal) which were placed in service before January 1, 2010, and (iv) in the case of the repeal of section 1400J of such Code, property acquired before January 1, 2010. (5) Short-term regional benefits (A) In general Chapter 1 (B) Conforming amendments (i) Section 38(b), as amended by the preceding provisions of this Act, is amended by striking paragraphs (26), (27), (28), and (29) and by redesignating paragraphs (30) through (35) as paragraphs (26) through (31), respectively. (ii) Section 38(c)(2)(A)(ii)(II), as amended by the preceding provisions of this Act, is amended by striking , the New York Liberty Zone business employee credit, (iii) Section 38(c) (iv) Section 54(c)(2) section 1400N(l), (v) Section 280C(a), as amended by the preceding provisions of this Act, is amended by striking 1396(a), 1400P(b), and 1400R and 1396(a) (vi) Section 6033(b)(14) including the amount and use of qualified contributions to which section 1400S(a) applies, (vii) Section 6049(d)(8)(A) (I) by striking or 1400N(l)(6) (II) by striking or 1400N(l)(2)(D), as the case may be (C) Savings provisions The amendments made by this paragraph shall not apply to— (i) in the case of the repeal of section 1400L(a) (ii) in the case of the repeal of subsections (b) and (f) of section 1400L of such Code, qualified New York Liberty Zone property (as defined in section 1400L(b) of such Code, as in effect before its repeal) placed in service before January 1, 2010, (iii) in the case of the repeal of section 1400L(c) of such Code, qualified New York Liberty Zone leasehold improvement property (as defined in such section, as in effect before its repeal) placed in service before January 1, 2007, (iv) in the case of the repeal of section 1400L(d) of such Code, qualified New York Liberty bonds (as defined in such section, as in effect before its repeal) issued before January 1, 2014, (v) in the case of the repeal of section 1400L(e) of such Code, advanced refundings before January 1, 2006, (vi) in the case of the repeal of section 1400L(g) of such Code, property which is compulsorily or involuntarily converted as a result of the terrorist attacks on September 11, 2001, (vii) in the case of the repeal of section 1400N(a) of such Code, obligations issued before January 1, 2012, (viii) in the case of the repeal of section 1400N(b) of such Code, advanced refundings before January 1, 2011, (ix) in the case of the repeal of section 1400N(d) of such Code, property placed in service before January 1, 2012, (x) in the case of the repeal of section 1400N(e) of such Code, property placed in service before January 1, 2009, (xi) in the case of the repeal of subsections (f) and (g) of section 1400N of such Code, amounts paid or incurred before January 1, 2008, (xii) in the case of the repeal of section 1400N(h) of such Code, amounts paid or incurred before January 1, 2012, (xiii) in the case of the repeal of section 1400N(k)(1)(B) of such Code, losses arising in taxable years beginning before January 1, 2008, (xiv) in the case of the repeal of section 1400N(l) of such Code, bonds issued before January 1, 2007, (xv) in the case of the repeal of section 1400Q(a) of such Code, distributions before January 1, 2007, (xvi) in the case of the repeal of section 1400Q(b) of such Code, contributions before March 1, 2006, (xvii) in the case of the repeal of section 1400Q(c) of such Code, loans made before January 1, 2007, (xviii) in the case of the repeal of section 1400R of such Code, wages paid or incurred before January 1, 2006, (xix) in the case of the repeal of section 1400S(a) of such Code, contributions paid before January 1, 2006, (xx) in the case of the repeal of section 1400T of such Code, financing provided before January 1, 2011, and (xxi) in the case of the repeal of part III of subchapter Y of chapter 1 of such Code, obligations issued before January 1, 2011. (6) Provisions related to COBRA premium assistance (A) In general Subchapter B of chapter 65 (B) Notification requirement Part I of subchapter B of chapter 68 (C) Exclusion from gross income Part III of subchapter B of chapter 1 (e) General savings provision with respect to deadwood provisions If— (1) any provision amended or repealed by the amendments made by subsection (b) or (d) applied to— (A) any transaction occurring before the date of the enactment of this Act, (B) any property acquired before such date of enactment, or (C) any item of income, loss, deduction, or credit taken into account before such date of enactment, and (2) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by such subsection) affect the liability for tax for periods ending after such date of enactment, nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.

Summary: Tax Technical Corrections Act of 2016 This bill makes technical and clerical amendments to: the Protecting Americans From Tax Hikes Act of 2015; the Consolidated Appropriations Act, 2016; the Fixing America's Surface Transportation Act; the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015; the Stephen Beck, Jr., ABLE Act of 2014; the American Taxpayer Relief Act of 2012; the United States-Korea Free Trade Agreement Implementation Act; the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU); the American Jobs Creation Act of 2004; provisions of the Internal Revenue Code related to partnership audit rules; the Bipartisan Budget Act of 2015; the Energy Policy Act of 2005; and other specified provisions of the Internal Revenue Code. The bill also amends various provisions in the Internal Revenue Code that are not used in computing current tax liabilities (referred to as deadwood provisions).