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(1) Paragraph (1) of section 1400C(c) of the
1986 Code is amended to read as follows:
‘‘(1) IN GENERAL.—The term ‘first-time home-
buyer’ means any individual if such individual (and
if married, such individual’s spouse) had no present
ownership interest in a principal residence in the
District of Columbia during the 1-year period ending
on the date of the purchase of the principal resi-
dence to which this section applies.’’.
(2) Subparagraph (B) of section 1400C(e)(2) of
the 1986 Code is amended by inserting before the
period ‘‘on the date the taxpayer first occupies such
residence’’.
(3) Paragraph (3) of section 1400C(e) of the
1986 Code is amended by striking all that follows
‘‘principal residence’’ and inserting ‘‘on the date
such residence is purchased.’’.
(4) Subsection (i) of section 1400C of the 1986
Code is amended to read as follows:
‘‘(i) APPLICATION OF SECTION.—This section shall
apply to property purchased after August 4, 1997, and
before January 1, 2001.’’.
(5) Subsection (c) of section 23 of the 1986
Code is amended by inserting ‘‘and section 1400C’’
after ‘‘other than this section’’.
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(6) Subparagraph (C) of section 25(e)(1) of the
1986 Code is amended by striking ‘‘section 23’’ and
inserting ‘‘sections 23 and 1400C’’.
SEC. 608. AMENDMENTS RELATED TO TITLE IX OF 1997 ACT.
(a) AMENDMENT RELATED TO SECTION 901 OF 1997
ACT.—Section 9503(c)(7) of the 1986 Code is amended—
(1) by striking ‘‘resulting from the amendments
made by’’ and inserting ‘‘(and transfers to the Mass
Transit Account) resulting from the amendments
made by subsections (a) and (b) of section 901 of’’,
and
(2) by inserting before the period ‘‘and deposits
in the Highway Trust Fund (and transfers to the
Mass Transit Account) shall be treated as made
when they would have been required to be made
without regard to section 901(e) of the Taxpayer
Relief Act of 1997’’.
(b) AMENDMENT RELATED TO SECTION 907 OF 1997
ACT.—Paragraph (2) of section 9503(e) of the 1986 Code
is amended by striking the last sentence and inserting the
following new sentence: ‘‘For purposes of the preceding
sentence, the term ‘mass transit portion’ means, for any
fuel with respect to which tax was imposed under section
4041 or 4081 and otherwise deposited into the Highway
Trust Fund, the amount determined at the rate of—
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‘‘(A) except as otherwise provided in this
sentence, 2.86 cents per gallon,
‘‘(B) 1.77 cents per gallon in the case of
any partially exempt methanol or ethanol fuel
(as defined in section 4041(m)) none of the al-
cohol in which consists of ethanol,
‘‘(C) 1.86 cents per gallon in the case of
liquefied natural gas,
‘‘(D) 2.13 cents per gallon in the case of
liquefied petroleum gas, and
‘‘(E) 9.71 cents per MCF (determined at
standard temperature and pressure) in the case
of compressed natural gas.’’.
(c) AMENDMENT RELATED TO SECTION 976 OF 1997
ACT.—Section 6103(d)(5) of the 1986 Code is amended
by striking ‘‘section 967 of the Taxpayer Relief Act of
1997.’’ and inserting ‘‘section 976 of the Taxpayer Relief
Act of 1997. Subsections (a)(2) and (p)(4) and sections
7213 and 7213A shall not apply with respect to disclo-
sures or inspections made pursuant to this paragraph.’’.
SEC. 609. AMENDMENTS RELATED TO TITLE X OF 1997 ACT.
(a) AMENDMENTS RELATED TO SECTION 1001 OF
1997 ACT.—
(1) Paragraph (2) of section 1259(b) of the
1986 Code is amended—
146
(A) by striking ‘‘debt’’ each place it ap-
pears in clauses (i) and (ii) of subparagraph
(A) and inserting ‘‘position’’,
(B) by striking ‘‘and’’ at the end of sub-
paragraph (A), and
(C) by redesignating subparagraph (B) as
subparagraph (C) and by inserting after sub-
paragraph (A) the following new subparagraph:
‘‘(B) any hedge with respect to a position
described in subparagraph (A), and’’.
(2) Section 1259(d)(1) of the 1986 Code is
amended by inserting ‘‘(including cash)’’ after
‘‘property’’.
(3) Subparagraph (D) of section 475(f)(1) of
the 1986 Code is amended by adding at the end the
following new sentence: ‘‘Subsection (d)(3) shall not
apply under the preceding sentence for purposes of
applying sections 1402 and 7704.’’.
(4) Subparagraph (C) of section 1001(d)(3) of
the 1997 Act is amended by striking ‘‘within the 30-
day period beginning on’’ and inserting ‘‘before the
close of the 30th day after’’.
(b) AMENDMENTS RELATED TO SECTION 1012 OF
1997 Act.—
147
(1) Paragraph (1) of section 1012(d) of the
1997 Act is amended by striking ‘‘1997, pursuant’’
and inserting ‘‘1997; except that the amendment
made by subsection (a) shall apply to such distribu-
tions only if pursuant’’.
(2) Subparagraph (A) of section 355(e)(3) of
the 1986 Code is amended—
(A) by striking ‘‘shall not be treated as de-
scribed in’’ and inserting ‘‘shall not be taken
into account in applying’’, and
(B) by striking clause (iv) and inserting
the following new clause:
‘‘(iv) The acquisition of stock in the
distributing corporation or any controlled
corporation to the extent that the percent-
age of stock owned directly or indirectly in
such corporation by each person owning
stock in such corporation immediately be-
fore the acquisition does not decrease.’’.
(c) AMENDMENTS RELATED TO SECTION 1014 OF
1997 ACT.—
(1) Paragraph (1) of section 351(g) of the 1986
Code is amended by adding ‘‘and’’ at the end of sub-
paragraph (A) and by striking subparagraphs (B)
148
and (C) and inserting the following new subpara-
graph:
‘‘(B) if (and only if) the transferor receives
stock other than nonqualified preferred stock—
‘‘(i) subsection (b) shall apply to such
transferor, and
‘‘(ii) such nonqualified preferred stock
shall be treated as other property for pur-
poses of applying subsection (b).’’.
(2) Clause (ii) of section 354(a)(2)(C) of 1986
Code is amended by adding at the end the following
new subclause:
‘‘(III) EXTENSION
OF
STATUTE
OF LIMITATIONS.—The statutory pe-
riod for the assessment of any defi-
ciency attributable to a corporation
failing to be a family-owned corpora-
tion shall not expire before the expira-
tion of 3 years after the date the Sec-
retary is notified by the corporation
(in such manner as the Secretary may
prescribe) of such failure, and such
deficiency may be assessed before the
expiration of such 3-year period not-
withstanding the provisions of any
149
other law or rule of law which would
otherwise prevent such assessment.’’.
(d) AMENDMENT RELATED TO SECTION 1024 OF
1997 ACT.—Section 6331(h)(1) of the 1986 Code is
amended by striking ‘‘The effect of a levy’’ and inserting
‘‘If the Secretary approves a levy under this subsection,
the effect of such levy’’.
(e) AMENDMENTS RELATED TO SECTION 1031 OF
1997 ACT.—
(1) Subsection (l) of section 4041 of the 1986
Code is amended by striking ‘‘subsection (e) or (f)’’
and inserting ‘‘subsection (f) or (g)’’.
(2) Subsection (b) of section 9502 of the 1986
Code is amended by moving the sentence added at
the end of paragraph (1) to the end of such sub-
section.
(3) Subsection (c) of section 6421 of the 1986
Code is amended—
(A) by striking ‘‘(2)(A)’’ and inserting
‘‘(2)’’, and
(B) by adding at the end the following sen-
tence: ‘‘Subsection (a) shall not apply to gaso-
line to which this subsection applies.’’.
(f) AMENDMENTS RELATED TO SECTION 1032 OF
1997 ACT.—
150
(1) Section 1032(a) of the 1997 Act is amended
by striking ‘‘Subsection (a) of section 4083’’ and in-
serting ‘‘Paragraph (1) of section 4083(a)’’.
(2) Section 1032(e)(12)(A) of the 1997 Act
shall be applied as if ‘‘gasoline, diesel fuel,’’ were the
material proposed to be stricken.
(3) Paragraph (1) of section 4101(e) of the
1986 Code is amended by striking ‘‘dyed diesel fuel
and kerosene’’ and inserting ‘‘such fuel in a dyed
form’’.
(g) AMENDMENT RELATED TO SECTION 1055 OF
1997 ACT.—Section 6611(g)(1) of the 1986 Code is
amended by striking ‘‘(e), and (h)’’ and inserting ‘‘and
(e)’’.
(h) AMENDMENT RELATED TO SECTION 1083 OF
1997 ACT.—Section 1083(a)(2) of the 1997 Act is amend-
ed—
(1) by striking ‘‘21’’ and inserting ‘‘20’’, and
(2) by striking ‘‘22’’ and inserting ‘‘21’’.
(i) AMENDMENT RELATED
TO SECTION 1084 OF
1997 ACT.—
(1) Paragraph (3) of section 264(a) of the 1986
Code is amended by striking ‘‘subsection (c)’’ and
inserting ‘‘subsection (d)’’.
151
(2) Paragraph (4) of section 264(a) of the 1986
Code is amended by striking ‘‘subsection (d)’’ and
inserting ‘‘subsection (e)’’.
(3) Paragraph (4) of section 264(f) of the 1986
Code is amended by adding at the end the following
new subparagraph:
‘‘(E) MASTER
CONTRACTS.—If coverage
for each insured under a master contract is
treated as a separate contract for purposes of
sections 817(h), 7702, and 7702A, coverage for
each such insured shall be treated as a separate
contract for purposes of subparagraph (A). For
purposes of the preceding sentence, the term
‘master contract’ shall not include any group
life insurance contract (as defined in section
848(e)(2)).’’.
(4)(A) Clause (iv) of section 264(f)(5)(A) of the
1986 Code is amended by striking the second sen-
tence.
(B) Subparagraph (B) of section 6724(d)(1) of
the 1986 Code is amended by striking ‘‘or’’ at the
end of clause (xv), by striking the period at the end
of clause (xvi) and inserting ‘‘, or’’, and by adding
at the end the following new clause:
152
‘‘(xvii) section 264(f)(5)(A)(iv) (relat-
ing to reporting with respect to certain life
insurance and annuity contracts).’’.
(C) Paragraph (2) of section 6724(d) of the
1986 Code is amended by striking ‘‘or’’ at the end
of subparagraph (Y), by striking the period at the
end of subparagraph (Z) and inserting ‘‘or’’, and by
adding at the end the following new subparagraph:
‘‘(AA) section 264(f)(5)(A)(iv) (relating to
reporting with respect to certain life insurance
and annuity contracts).’’.
(j) AMENDMENT RELATED TO SECTION 1085 OF
1997 ACT.—Paragraph (5) of section 32(c) of the 1986
Code is amended—
(1) by inserting before the period at the end of
subparagraph (A) ‘‘and increased by the amounts
described in subparagraph (C)’’,
(2) by adding ‘‘or’’ at the end of clause (iii) of
subparagraph (B), and
(3) by striking all that follows subclause (II) of
subparagraph (B)(iv) and inserting the following:
‘‘(III) other trades or businesses.
For purposes of clause (iv), there shall not
be taken into account items which are at-
tributable to a trade or business which
153
consists of the performance of services by
the taxpayer as an employee.
‘‘(C) CERTAIN AMOUNTS INCLUDED.—An
amount is described in this subparagraph if it
is—
‘‘(i) interest received or accrued dur-
ing the taxable year which is exempt from
tax imposed by this chapter, or
‘‘(ii) amounts received as a pension or
annuity, and any distributions or payments
received from an individual retirement
plan, by the taxpayer during the taxable
year to the extent not included in gross in-
come.
Clause (ii) shall not include any amount which
is not includible in gross income by reason of
section 402(c), 403(a)(4), 403(b), 408(d) (3),
(4), or (5), or 457(e)(10).’’.
(k) AMENDMENT RELATED TO SECTION 1088 OF
1997 ACT.—Section 1088(b)(2)(C) of the 1997 Act is
amended by inserting ‘‘more than 1 year’’ before ‘‘after’’.
(l) AMENDMENT RELATED
TO SECTION 1089 OF
1997 ACT.—Paragraphs (1)(C) and (2)(C) of section
664(d) of the 1986 Code are each amended by adding ‘‘,
and’’ at the end.
154
SEC. 610. AMENDMENTS RELATED TO TITLE XI OF 1997 ACT.
(a) AMENDMENT RELATED TO SECTION 1103 OF
1997 ACT.—The paragraph (3) of section 59(a) added by
section 1103 of the 1997 Act is redesignated as paragraph
(4).
(b) AMENDMENT RELATED TO SECTION 1121 OF
1997 ACT.—Section 1298(a)(2)(B) of the 1986 Code is
amended by adding at the end the following new sentence:
‘‘Section 1297(e) shall not apply in determining whether
a corporation is a passive foreign investment company for
purposes of this subparagraph.’’.
(c) AMENDMENT RELATED TO SECTION 1122 OF
1997 ACT.—Section 672(f)(3)(B) of the 1986 Code is
amended by striking ‘‘section 1296’’ and inserting ‘‘sec-
tion 1297’’.
(d) AMENDMENT RELATED TO SECTION 1123 OF
1997 ACT.—The subsection (e) of section 1297 of the
1986 Code added by section 1123 of the 1997 Act is re-
designated as subsection (f).
(e) AMENDMENT RELATED TO SECTION 1144 OF
1997 ACT.—Paragraphs (1) and (2) of section 1144(c)
of the 1997 Act are each amended by striking ‘‘6038B(b)’’
and inserting ‘‘6038B(c) (as redesignated by subsection
(b))’’.
155
SEC. 611. AMENDMENTS RELATED TO TITLE XII OF 1997
ACT.
(a) AMENDMENT RELATED TO SECTION 1204 OF
1997 ACT.—The last sentence of section 162(a) of the
1986 Code is amended by striking ‘‘investigate’’ and all
that follows and inserting ‘‘investigate or prosecute, or
provide support services for the investigation or prosecu-
tion of, a Federal crime.’’.
(b) AMENDMENTS RELATED TO SECTION 1205 OF
1997 ACT.—
(1) Section 6311(e)(1) of the 1986 Code is
amended by striking ‘‘section 6103(k)(8)’’ and in-
serting ‘‘section 6103(k)(9)’’.
(2) Paragraph (8) of section 6103(k) of the
1986 Code (as added by section 1205(c)(1) of the
1997 Act) is redesignated as paragraph (9).
(3) The heading for section 7431(g) of the
1986 Code is amended by striking ‘‘(8)’’ and insert-
ing ‘‘(9)’’.
(4) Section 1205(c)(3) of the 1997 Act shall be
applied as if it read as follows:
‘‘(3) Section 6103(p)(3)(A), as amended by sec-
tion 1026(b)(1)(A), is amended by striking ‘‘or (8)’’
and inserting ‘‘(8), or (9)’’.
156
(5) Section 1213(b) of the 1997 Act is amended
by striking ‘‘section 6724(d)(1)(A)’’ and inserting
‘‘section 6724(d)(1)’’.
(c) AMENDMENT RELATED TO SECTION 1226 OF
1997 ACT.—Section 1226 of the 1997 Act is amended by
striking ‘‘ending on or’’ and inserting ‘‘beginning’’.
(d) AMENDMENT RELATED TO SECTION 1285 OF
1997 ACT.—Section 7430(b) of the 1986 Code is amended
by redesignating paragraph (5) as paragraph (4).
SEC. 612. AMENDMENTS RELATED TO TITLE XIII OF 1997
ACT.
(a) Section 646 of the 1986 Code is redesignated as
section 645.
(b) The item relating to section 646 in the table of
sections for subpart A of part I of subchapter J of chapter
1 of the 1986 Code is amended by striking ‘‘Sec. 646’’
and inserting ‘‘Sec. 645’’.
(c) Paragraph (1) of section 2652(b) of the 1986
Code is amended by striking ‘‘section 646’’ and inserting
‘‘section 645’’.
(d) Paragraph (3) of section 1(g) of the 1986 Code
is amended by striking subparagraph (C) and by redesig-
nating subparagraph (D) as subparagraph (C).