with respect to which such contribution is 
made, 
‘‘(ii) the last date on which any part-
ner in the partnership that made such con-
tribution acquired any interest in such 
partnership, and 
‘‘(iii) if the interest in the partnership 
that made such contribution is held 
through one or more partnerships— 
‘‘(I) the last date on which any 
such partnership acquired any interest 
in any other such partnership, and 
‘‘(II) the last date on which any 
partner in any such partnership ac-
quired any interest in such partner-
ship. 
‘‘(D) EXCEPTION FOR FAMILY PARTNER-
SHIPS.— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply with respect to any con-
tribution made by any partnership if sub-
stantially all of the partnership interests in 
such partnership are held, directly or indi-
rectly, by an individual and members of 
the family of such individual. 
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‘‘(ii) MEMBERS OF THE FAMILY.—For 
purposes of this subparagraph, the term 
‘members of the family’ means, with re-
spect to any individual— 
‘‘(I) the spouse of such indi-
vidual, and 
‘‘(II) any individual who bears a 
relationship to such individual which 
is described in subparagraphs (A) 
through (G) of section 152(d)(2). 
‘‘(E) 
APPLICATION
TO
OTHER
PASS- 
THROUGH ENTITIES.—Except as may be other-
wise provided by the Secretary, the rules of this 
paragraph shall apply to S corporations and 
other pass-through entities in the same manner 
as such rules apply to partnerships. 
‘‘(F) REGULATIONS.—The Secretary shall 
prescribe such regulations or other guidance as 
may be necessary or appropriate to carry out 
the purposes of this paragraph, including regu-
lations or other guidance— 
‘‘(i) to require reporting, including re-
porting related to tiered partnerships and 
the modified basis of partners, and 
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‘‘(ii) to prevent the avoidance of the 
purposes of this paragraph.’’. 
(b) APPLICATION
OF
ACCURACY-RELATED
PEN-
ALTIES.— 
(1) IN
GENERAL.—Section 6662(b) of such 
Code is amended by inserting after paragraph (9) 
the following new paragraph: 
‘‘(10) Any disallowance of a deduction by rea-
son of section 170(h)(7).’’. 
(2) 
TREATMENT
AS
GROSS
VALUATION 
MISSTATEMENT.—Section 6662(h)(2) of such Code 
is amended by striking ‘‘and’’ at the end of subpara-
graph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, and’’, and by adding 
at the end the following new subparagraph: 
‘‘(D) any disallowance of a deduction de-
scribed in subsection (b)(10).’’. 
(3) NO REASONABLE CAUSE EXCEPTION.—Sec-
tion 6664(c)(2) of such Code is amended by insert-
ing ‘‘or to any disallowance of a deduction described 
in section 6662(b)(10)’’ before the period at the end. 
(4) APPROVAL
OF
ASSESSMENT
NOT
RE-
QUIRED.—Section 6751(b)(2)(A) of such Code is 
amended by striking ‘‘subsection (b)(9)’’ and insert-
ing ‘‘paragraph (9) or (10) of subsection (b)’’. 
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(c) APPLICATION OF STATUTE OF LIMITATIONS ON 
ASSESSMENT AND COLLECTION.— 
(1) EXTENSION
FOR
CERTAIN
ADJUSTMENTS 
MADE UNDER PRIOR LAW.—In the case of any dis-
allowance of a deduction by reason of section 
170(h)(7) of the Internal Revenue Code of 1986 (as 
added by this section) or any penalty imposed under 
section 6662 of such Code with respect to such dis-
allowance, section 6229(d)(2) of such Code (as in ef-
fect before its repeal) shall be applied by sub-
stituting ‘‘2 years’’ for ‘‘1 year’’. 
(2) EXTENSION FOR LISTED TRANSACTIONS.— 
Any contribution described in section 170(h)(7)(A) 
of the Internal Revenue Code of 1986 (as added by 
this section) shall be treated for purposes of sections 
6501(c)(10) and 6235(c)(6) of such Code as a 
transaction specifically identified by the Secretary on 
December 23, 2016, as a tax avoidance transaction 
for purposes of section 6011 of such Code. 
(d) APPLICATION TO CERTAIN TRANSACTIONS DIS-
ALLOWED UNDER OTHER PROVISIONS OF LAW.—In the 
case of any disallowance of a deduction under section 170 
of the Internal Revenue Code of 1986 with respect to a 
transaction described in Internal Revenue Service Notice 
2017–10 with respect to a taxable year ending before the 
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date of the enactment of this Act, such disallowance shall 
be treated for purposes of section 6662(b)(10) of such 
Code (as added by this section) and subsection (c)(1) as 
being by reason of section 170(h)(7) of such Code (as 
added by this section). 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to contributions made after December 
23, 2016, in taxable years ending after such date. 
(2) CERTIFIED HISTORIC STRUCTURES.—In the 
case of contributions the conservation purpose (as 
defined in section 170(h)(4) of the Internal Revenue 
Code of 1986) of which is the preservation of a cer-
tified historic structure (as defined in section 
170(h)(4)(C) of such Code), the amendments made 
by this section shall apply to contributions made in 
taxable years beginning after December 31, 2018. 
(3) NO INFERENCE.—No inference is intended 
as to the appropriate treatment of contributions 
made in taxable years ending on or before the date 
specified in paragraph (1) or (2), whichever is appli-
cable, or as to any activity not described in section 
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170(h)(7) of the Internal Revenue Code of 1986, as 
added by this section. 
Æ 
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