TITLE 
II—REFORMS 
RELATED 
TO 
REAL 
ESTATE 
INVEST-
MENT TRUSTS 
Subtitle A—Foreign Currency and 
Other Qualified Activities 
SEC. 201. REVISIONS TO REIT INCOME TESTS. 
(a) ADDITION
OF
PERMISSIBLE
INCOME
CAT-
EGORIES.—Section 856(c) (relating to limitations) is 
amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(2)(G) and by inserting after paragraph (2)(H) the 
following new subparagraphs: 
‘‘(I) passive foreign exchange gains; and 
‘‘(J) any other item of income or gain as 
determined by the Secretary;’’, and 
(2) by striking ‘‘and’’ at the end of paragraphs 
(3)(H) and (3)(I) and by inserting after paragraph 
(3)(I) the following new subparagraphs: 
‘‘(J) real estate foreign exchange gains; 
and 
‘‘(K) any other item of income or gain as 
determined by the Secretary; and’’. 
(b) RULES REGARDING FOREIGN CURRENCY TRANS-
ACTIONS.—Section 856 (defining real estate investment 
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trust) is amended by adding at the end the following new 
subsection: 
‘‘(n) RULES
REGARDING
FOREIGN
CURRENCY 
TRANSACTIONS.—With respect to any taxable year— 
‘‘(1) 
REAL
ESTATE
FOREIGN
EXCHANGE 
GAINS.—For purposes of subsection (c)(3)(J), the 
term ‘real estate foreign exchange gains’ means— 
‘‘(A) foreign currency gains (as defined in 
section 988(b)(1)) which are attributable to— 
‘‘(i) any item described in subsection 
(c)(3) (other than in subparagraph (J) 
thereof), 
‘‘(ii) the acquisition or ownership of 
obligations secured by mortgages on real 
property or on interests in real property 
(other than foreign currency gains attrib-
utable to any item described in clause (i)), 
or 
‘‘(iii) becoming or being the obligor 
under obligations secured by mortgages on 
real property or on interests in real prop-
erty (other than foreign currency gains at-
tributable to any item described in clause 
(i)), 
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‘‘(B) gains described in section 987 attrib-
utable to a qualified business unit (as defined 
by section 989) of the real estate investment 
trust, but only if such qualified business unit 
meets the requirements under— 
‘‘(i) subsection (c)(3) (without regard 
to subparagraph (J) thereof) for the tax-
able year, and 
‘‘(ii) subsection (c)(4)(A) at the close 
of each quarter that the real estate invest-
ment trust has directly or indirectly held 
the qualified business unit, and 
‘‘(C) any other foreign currency gains as 
determined by the Secretary. 
‘‘(2) PASSIVE FOREIGN EXCHANGE GAINS.—For 
purposes of subsection (c)(2)(I), the term ‘passive 
foreign exchange gains’ means— 
‘‘(A) real estate foreign exchange gains, 
‘‘(B) foreign currency gains (as defined in 
section 988(b)(1)) which are not described in 
subparagraph (A) and which are attributable to 
any item described in subsection (c)(2) (other 
than in subparagraph (I) thereof), and 
‘‘(C) any other foreign currency gains as 
determined by the Secretary.’’. 
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(c) ADDITION TO REIT HEDGING RULE.—Subpara-
graph (G) of section 856(c)(5) is amended to read as fol-
lows: 
‘‘(G) TREATMENT OF CERTAIN HEDGING 
INSTRUMENTS.—Except to the extent as deter-
mined by the Secretary— 
‘‘(i) any income of a real estate in-
vestment trust from a hedging transaction 
(as defined in clause (ii) or (iii) of section 
1221(b)(2)(A)) which is clearly identified 
pursuant to section 1221(a)(7), including 
gain from the sale or disposition of such a 
transaction, shall not constitute gross in-
come under paragraphs (2) and (3) to the 
extent that the transaction hedges any in-
debtedness incurred or to be incurred by 
the trust to acquire or carry real estate as-
sets, and 
‘‘(ii) any income of a real estate in-
vestment trust from a transaction entered 
into by the trust primarily to manage risk 
of currency fluctuations with respect to 
any item described in paragraph (2) or (3), 
including gain from the termination of 
such a transaction, shall not constitute 
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gross income under paragraphs (2) and 
(3), but only if such transaction is clearly 
identified as such before the close of the 
day on which it was acquired, originated, 
or entered into (or such other time as the 
Secretary may prescribe).’’. 
(d) AUTHORITY TO EXCLUDE ITEMS OF INCOME 
FROM
REIT INCOME
TESTS.—Section 856(c)(5) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(H) SECRETARIAL
AUTHORITY
TO
EX-
CLUDE OTHER ITEMS OF INCOME.—The Sec-
retary is authorized to determine whether any 
item of income or gain which does not otherwise 
qualify under paragraph (2) or (3) may be con-
sidered as not constituting gross income solely 
for purposes of this part.’’. 
SEC. 202. REVISIONS TO REIT ASSET TESTS. 
(a) CLARIFICATION OF VALUATION TEST.—The first 
sentence 
in 
the 
matter 
following 
section 
856(c)(4)(B)(iii)(III) is amended by inserting ‘‘(including 
a discrepancy caused solely by the change in the foreign 
currency exchange rate used to value a foreign asset)’’ 
after ‘‘such requirements’’. 
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(b) CLARIFICATION OF PERMISSIBLE ASSET CAT-
EGORY.—Section 856(c)(5), as amended by section 
301(d), is amended by adding at the end the following new 
subparagraph: 
‘‘(I) CASH.—The term ‘cash’ includes for-
eign currency if the real estate investment trust 
or its qualified business unit (as defined in sec-
tion 989) uses such foreign currency as its 
functional currency (as defined in section 
985(b)).’’. 
SEC. 203. CONFORMING FOREIGN CURRENCY REVISIONS. 
(a) NET INCOME FROM FORECLOSURE PROPERTY.— 
Clause (i) of section 857(b)(4)(B) is amended to read as 
follows: 
‘‘(i) gain (including any foreign cur-
rency gain, as defined in section 988(b)(1)) 
from the sale or other disposition of fore-
closure 
property 
described 
in 
section 
1221(a)(1) and the gross income for the 
taxable year derived from foreclosure prop-
erty (as defined in section 856(e)), but 
only to the extent such gross income is not 
described in (or, in the case of foreign cur-
rency gain, not attributable to gross in-
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come described in) section 856(c)(3) other 
than subparagraph (F) thereof, over’’. 
(b) NET
INCOME
FROM
PROHIBITED
TRANS-
ACTIONS.—Clause (i) of section 857(b)(6)(B) is amended 
to read as follows: 
‘‘(i) the term ‘net income derived from 
prohibited transactions’ means the excess 
of the gain (including any foreign currency 
gain, as defined in section 988(b)(1)) from 
prohibited transactions over the deductions 
(including any foreign currency loss, as de-
fined in section 988(b)(2)) allowed by this 
chapter which are directly connected with 
prohibited transactions;’’. 
Subtitle B—Taxable REIT 
Subsidiaries 
SEC. 211. CONFORMING TAXABLE REIT SUBSIDIARY ASSET 
TEST. 
Section 856(c)(4)(B)(ii) is amended by striking ‘‘20 
percent’’ and inserting ‘‘25 percent’’. 
Subtitle C—Dealer Sales 
SEC. 221. HOLDING PERIOD UNDER SAFE HARBOR. 
Section 857(b)(6) (relating to income from prohibited 
transactions) is amended— 
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(1) by striking ‘‘4 years’’ in subparagraphs 
(C)(i), (C)(iv), and (D)(i) and inserting ‘‘2 years’’, 
(2) by striking ‘‘4-year period’’ in subpara-
graphs (C)(ii), (D)(ii), and (D)(iii) and inserting ‘‘2- 
year period’’, and 
(3) by striking ‘‘real estate asset’’and all that 
follows through ‘‘if’’ in the matter preceding clause 
(i) of subparagraphs (C) and (D), respectively, and 
inserting ‘‘real estate asset (as defined in section 
856(c)(5)(B)) and which is described in section 
1221(a)(1) if’’. 
SEC. 222. DETERMINING VALUE OF SALES UNDER SAFE 
HARBOR. 
Section 857(b)(6) is amended— 
(1) by striking the semicolon at the end of sub-
paragraph (C)(iii) and inserting ‘‘, or (III) the fair 
market value of property (other than sales of fore-
closure property or sales to which section 1033 ap-
plies) sold during the taxable year does not exceed 
10 percent of the fair market value of all of the as-
sets of the trust as of the beginning of the taxable 
year;’’, and 
(2) by adding ‘‘or’’ at the end of subclause (II) 
of subparagraph (D)(iv) and by adding at the end 
of such subparagraph the following new subclause: 
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‘‘(III) the fair market value of prop-
erty (other than sales of foreclosure prop-
erty or sales to which section 1033 applies) 
sold during the taxable year does not ex-
ceed 10 percent of the fair market value of 
all of the assets of the trust as of the be-
ginning of the taxable year,’’. 
Subtitle D—Health Care REITs 
SEC. 231. CONFORMITY FOR HEALTH CARE FACILITIES. 
(a) RELATED PARTY RENTALS.—Subparagraph (B) 
of section 856(d)(8) (relating to special rule for taxable 
REIT subsidiaries) is amended to read as follows: 
‘‘(B) EXCEPTION FOR CERTAIN LODGING 
FACILITIES
AND
HEALTH
CARE
PROPERTY.— 
The requirements of this subparagraph are met 
with respect to an interest in real property 
which is a qualified lodging facility or a quali-
fied health care property (as defined in sub-
section (e)(6)(D)(i)) leased by the trust to a 
taxable REIT subsidiary of the trust if the 
property is operated on behalf of such sub-
sidiary by a person who is an eligible inde-
pendent contractor. For purposes of this sec-
tion, a taxable REIT subsidiary is not consid-
ered to be operating or managing a qualified 
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health care property or qualified lodging facility 
solely because it directly or indirectly possesses 
a license, permit or similar instrument enabling 
it to do so.’’. 
(b) ELIGIBLE INDEPENDENT CONTRACTOR.—Sub-
paragraphs (A) and (B) of section 856(d)(9) (relating to 
eligible independent contractor) are amended to read as 
follows: 
‘‘(A) IN
GENERAL.—The term ‘eligible 
independent contractor’ means, with respect to 
any qualified lodging facility or qualified health 
care 
property 
(as 
defined 
in 
subsection 
(e)(6)(D)(i)), any independent contractor if, at 
the time such contractor enters into a manage-
ment agreement or other similar service con-
tract with the taxable REIT subsidiary to oper-
ate such qualified lodging facility or qualified 
health care property, such contractor (or any 
related person) is actively engaged in the trade 
or business of operating qualified lodging facili-
ties or qualified health care properties, respec-
tively, for any person who is not a related per-
son with respect to the real estate investment 
trust or the taxable REIT subsidiary. 
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‘‘(B) SPECIAL RULES.—Solely for purposes 
of this paragraph and paragraph (8)(B), a per-
son shall not fail to be treated as an inde-
pendent contractor with respect to any qualified 
lodging facility or qualified health care property 
(as so defined) by reason of the following: 
‘‘(i) The taxable REIT subsidiary 
bears the expenses for the operation of 
such qualified lodging facility or qualified 
health care property pursuant to the man-
agement agreement or other similar service 
contract. 
‘‘(ii) The taxable REIT subsidiary re-
ceives the revenues from the operation of 
such qualified lodging facility or qualified 
health care property, net of expenses for 
such operation and fees payable to the op-
erator pursuant to such agreement or con-
tract. 
‘‘(iii) The real estate investment trust 
receives income from such person with re-
spect to another property that is attrib-
utable to a lease of such other property to 
such person that was in effect as of the 
later of— 
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‘‘(I) January 1, 1999, or 
‘‘(II) the earliest date that any 
taxable REIT subsidiary of such trust 
entered into a management agreement 
or other similar service contract with 
such person with respect to such 
qualified lodging facility or qualified 
health care property.’’. 
(c) TAXABLE REIT SUBSIDIARIES.—The last sen-
tence of section 856(l)(3) is amended— 
(1) by inserting ‘‘or a health care facility’’ after 
‘‘a lodging facility’’, and 
(2) by inserting ‘‘or health care facility’’ after 
‘‘such lodging facility’’. 
Subtitle E—Effective Dates 
SEC. 241. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided in 
this section, the amendments made by this title shall apply 
to taxable years beginning after the date of the enactment 
of this Act. 
(b) REIT INCOME TESTS.— 
(1) The amendment made by section 201(a) 
and (b) shall apply to gains and items of income rec-
ognized after the date of the enactment of this Act. 
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be determined without regard to section 
1091 (relating to loss from wash sales of 
stock or securities) unless the transactions 
occur in the same account with respect to 
identical securities. 
‘‘(3) COVERED
SECURITY.—For purposes of 
this subsection— 
‘‘(A) IN GENERAL.—The term ‘covered se-
curity’ means any specified security acquired on 
or after the applicable date if such security— 
‘‘(i) was acquired through a trans-
action in the account in which such secu-
rity is held, or 
‘‘(ii) was transferred to such account 
from an account in which such security 
was a covered security, but only if the 
broker received a statement under section 
6045A with respect to the transfer. 
‘‘(B) SPECIFIED
SECURITY.—The term 
‘specified security’ means— 
‘‘(i) any share of stock in a corpora-
tion, 
‘‘(ii) any note, bond, debenture, or 
other evidence of indebtedness, 
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‘‘(iii) any commodity, or contract or 
derivative with respect to such commodity, 
if the Secretary determines that adjusted 
basis reporting is appropriate for purposes 
of this subsection, and 
‘‘(iv) any other financial instrument 
with respect to which the Secretary deter-
mines that adjusted basis reporting is ap-
propriate for purposes of this subsection. 
‘‘(C) APPLICABLE DATE.—The term ‘appli-
cable date’ means— 
‘‘(i) January 1, 2010, in the case of 
any specified security which is stock in a 
corporation, and 
‘‘(ii) January 1, 2012, or such later 
date determined by the Secretary in the 
case of any other specified security. 
‘‘(4) TREATMENT OF S CORPORATIONS.—In the 
case of the sale of a covered security acquired by an 
S corporation (other than a financial institution) 
after December 31, 2011, such S corporation shall 
be treated in the same manner as a partnership for 
purposes of this section. 
‘‘(5) SPECIAL RULES FOR SHORT SALES.— 
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‘‘(A) IN GENERAL.—In the case of a short 
sale, reporting under this section shall be made 
for the year in which such sale is closed. 
‘‘(B) 
EXCEPTION
FOR
CONSTRUCTIVE 
SALES.—Subparagraph (A) shall not apply to 
any short sale which results in a constructive 
sale under section 1259 with respect to prop-
erty held in the account in which the short sale 
is entered into.’’. 
(2) BROKER INFORMATION REQUIRED WITH RE-
SPECT TO OPTIONS.—Section 6045, as amended by 
subsection (a), is amended by adding at the end the 
following new subsection: 
‘‘(h) APPLICATION TO OPTIONS ON SECURITIES.— 
‘‘(1) EXERCISE OF OPTION.—For purposes of 
this section, in the case of any exercise of an option 
on a covered security where the option was granted 
or acquired in the same account as the covered secu-
rity, the amount received or paid with respect to 
such exercise shall be treated as an adjustment to 
gross proceeds or as an adjustment to basis, as the 
case may be. 
‘‘(2) LAPSE OR CLOSING TRANSACTION.—For 
purposes of this section, in the case of the lapse (or 
closing 
transaction 
(as 
defined 
in 
section 
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1234(b)(2)(A))) of an option on a specified security 
where the taxpayer is the grantor of the option, this 
section shall apply as if the premium received for 
such option were gross proceeds received on the date 
of the lapse or closing transaction, and the cost (if 
any) of the closing transaction shall be taken into 
account as adjusted basis. In the case of an option 
on a specified security where the taxpayer is the 
grantee of such option, this section shall apply as if 
the grantee received gross proceeds of zero on the 
date of the lapse. 
‘‘(3) PROSPECTIVE APPLICATION.—Paragraphs 
(1) and (2) shall not apply to any option which is 
granted or acquired before January 1, 2012. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘covered security’ and ‘specified 
security’ shall have the meanings given such terms 
in subsection (g)(3).’’. 
(3) EXTENSION OF PERIOD FOR STATEMENTS 
SENT TO CUSTOMERS.— 
(A) IN GENERAL.—Subsection (b) of sec-
tion 6045 is amended by striking ‘‘January 31’’ 
and inserting ‘‘February 15’’. 
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(B) STATEMENTS
RELATED
TO
SUB-
STITUTE PAYMENTS.—Subsection (d) of section 
6045 is amended— 
(i) by striking ‘‘at such time and’’, 
and 
(ii) by inserting after ‘‘other item.’’ 
the following new sentence: ‘‘The written 
statement required under the preceding 
sentence shall be furnished on or before 
February 15 of the year following the cal-
endar year in which the payment was 
made.’’. 
(C) OTHER STATEMENTS.—Subsection (b) 
of section 6045 is amended by adding at the 
end the following: ‘‘In the case of a consolidated 
reporting statement (as defined in regulations) 
with respect to any account which includes the 
statement required by this subsection, any 
statement which would otherwise be required to 
be furnished on or before January 31 of a cal-
endar 
year 
under 
section 
6042(c), 
6049(c)(2)(A), or 6050N(b) with respect to any 
item in such account shall instead be required 
to be furnished on or before February 15 of 
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such calendar year if furnished as part of such 
consolidated reporting statement.’’. 
(b) DETERMINATION OF BASIS OF CERTAIN SECURI-
TIES
ON ACCOUNT
BY ACCOUNT
OR AVERAGE BASIS 
METHOD.—Section 1012 (relating to basis of property– 
cost) is amended— 
(1) by striking ‘‘The basis of property’’ and in-
serting the following: 
‘‘(a) IN GENERAL.—The basis of property’’, 
(2) by striking ‘‘The cost of real property’’ and 
inserting the following: 
‘‘(b) SPECIAL RULE FOR APPORTIONED REAL ES-
TATE TAXES.—The cost of real property’’, and 
(3) by adding at the end the following new sub-
sections: 
‘‘(c) DETERMINATIONS BY ACCOUNT.— 
‘‘(1) IN GENERAL.—In the case of the sale, ex-
change, or other disposition of a specified security 
on or after the applicable date, the conventions pre-
scribed by regulations under this section shall be ap-
plied on an account by account basis. 
‘‘(2) APPLICATION TO OPEN-END FUNDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any stock in an open-end 
fund acquired before January 1, 2010, shall be 
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treated as a separate account from any such 
stock acquired on or after such date. 
‘‘(B) ELECTION BY OPEN-END FUND FOR 
TREATMENT AS SINGLE ACCOUNT.—If an open- 
end fund elects to have this subparagraph apply 
with respect to one or more of its stock-
holders— 
‘‘(i) subparagraph (A) shall not apply 
with respect to any stock in such fund held 
by such stockholders, and 
‘‘(ii) all stock in such fund which is 
held by such stockholders shall be treated 
as covered securities described in section 
6045(g)(3) without regard to the date of 
the acquisition of such stock. 
A rule similar to the rule of the preceding sen-
tence shall apply with respect to a broker hold-
ing stock in an open-end fund as a nominee. 
‘‘(3) DEFINITIONS.—For purposes of this sec-
tion— 
‘‘(A) OPEN-END FUND.—The term ‘open- 
end fund’ means a regulated investment com-
pany (as defined in section 851) which is offer-
ing for sale or has outstanding any redeemable 
security of which it is the issuer and the shares 
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of which are not traded on an established secu-
rities exchange. 
‘‘(B) SPECIFIED
SECURITY; APPLICABLE 
DATE.—The terms ‘specified security’ and ‘ap-
plicable date’ shall have the meaning given such 
terms in section 6045(g). 
‘‘(d) AVERAGE BASIS FOR STOCK ACQUIRED PURSU-
ANT TO A DIVIDEND REINVESTMENT PLAN.— 
‘‘(1) IN GENERAL.—In the case of any stock ac-
quired after December 31, 2009, in connection with 
a dividend reinvestment plan, the basis of such stock 
shall be determined using one of the methods which 
may be used for determining the basis of stock in an 
open-end fund. 
‘‘(2) SEPARATE
ACCOUNTS; 
ELECTION
FOR 
TREATMENT AS SINGLE ACCOUNT.—Rules similar to 
the rules of subsection (c)(2) shall apply for pur-
poses of this subsection. 
‘‘(3) DIVIDEND
REINVESTMENT
PLAN.—For 
purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘dividend re-
investment plan’ means any arrangement under 
which dividends on any stock are reinvested in 
stock identical to the stock with respect to 
which the dividends are paid. 
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‘‘(B) INITIAL STOCK ACQUISITION TREAT-
ED
AS
ACQUIRED
IN
CONNECTION
WITH 
PLAN.—Stock shall be treated as acquired in 
connection with a dividend reinvestment plan if 
such stock is acquired pursuant to such plan or 
if the dividends paid on such stock are subject 
to such plan.’’. 
(c) INFORMATION BY TRANSFERORS T AID BRO-
KERS.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 is amended by inserting 
after section 6045 the following new section: 
‘‘SEC. 6045A. INFORMATION REQUIRED IN CONNECTION 
WITH TRANSFERS OF COVERED SECURITIES 
TO BROKERS. 
‘‘(a) FURNISHING OF INFORMATION.—Every applica-
ble person which transfers to a broker (as defined in sec-
tion 6045(c)(1)) a security which is a covered security (as 
defined in section 6045(g)(3)) in the hands of such appli-
cable person shall furnish to such broker a written state-
ment in such manner and setting forth such information 
as the Secretary may by regulations prescribe for purposes 
of enabling such broker to meet the requirements of sec-
tion 6045(g). 
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‘‘(b) APPLICABLE PERSON.—For purposes of sub-
section (a), the term ‘applicable person’ means— 
‘‘(1) any broker (as defined in section 
6045(c)(1)), and 
‘‘(2) any other person as provided by the Sec-
retary in regulations. 
‘‘(c) TIME FOR FURNISHING STATEMENT.—Except 
as otherwise provided by the Secretary, any statement re-
quired by subsection (a) shall be furnished on the date 
of the transfer described in such subsection.’’. 
(2) ASSESSABLE
PENALTIES.—Paragraph (2) 
of section 6724(d) (defining payee statement) is 
amended 
by 
redesignating 
subparagraphs 
(I) 
through (CC) as subparagraphs (J) through (DD), 
respectively, and by inserting after subparagraph 
(H) the following new subparagraph: 
‘‘(I) section 6045A (relating to information 
required in connection with transfers of covered 
securities to brokers).’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart B of part III of subchapter A of 
chapter 61 is amended by inserting after the item 
relating to section 6045 the following new item: 
‘‘Sec. 6045A. Information required in connection with transfers of covered se-
curities to brokers.’’. 
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(d) ADDITIONAL ISSUER INFORMATION TO AID BRO-
KERS.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 of the Internal Revenue 
Code of 1986, as amended by subsection (b), is 
amended by inserting after section 6045A the fol-
lowing new section: 
‘‘SEC. 6045B. RETURNS RELATING TO ACTIONS AFFECTING 
BASIS OF SPECIFIED SECURITIES. 
‘‘(a) IN GENERAL.—According to the forms or regu-
lations prescribed by the Secretary, any issuer of a speci-
fied security shall make a return setting forth— 
‘‘(1) a description of any organizational action 
which affects the basis of such specified security of 
such issuer, 
‘‘(2) the quantitative effect on the basis of such 
specified security resulting from such action, and 
‘‘(3) such other information as the Secretary 
may prescribe. 
‘‘(b) TIME FOR FILING RETURN.—Any return re-
quired by subsection (a) shall be filed not later than the 
earlier of— 
‘‘(1) 45 days after the date of the action de-
scribed in subsection (a), or 
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‘‘(2) January 15 of the year following the cal-
endar year during which such action occurred. 
‘‘(c) STATEMENTS TO BE FURNISHED TO HOLDERS 
OF SPECIFIED SECURITIES OR THEIR NOMINEES.—Ac-
cording to the forms or regulations prescribed by the Sec-
retary, every person required to make a return under sub-
section (a) with respect to a specified security shall furnish 
to the nominee with respect to the specified security (or 
certificate holder if there is no nominee) a written state-
ment showing— 
‘‘(1) the name, address, and phone number of 
the information contact of the person required to 
make such return, 
‘‘(2) the information required to be shown on 
such return with respect to such security, and 
‘‘(3) such other information as the Secretary 
may prescribe. 
The written statement required under the preceding sen-
tence shall be furnished to the holder on or before January 
15 of the year following the calendar year during which 
the action described in subsection (a) occurred. 
‘‘(d) SPECIFIED SECURITY.—For purposes of this 
section, the term ‘specified security’ has the meaning given 
such term by section 6045(g)(3)(B). No return shall be 
required under this section with respect to actions de-
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scribed in subsection (a) with respect to a specified secu-
rity which occur before the applicable date (as defined in 
section 6045(g)(3)(C)) with respect to such security. 
‘‘(e) PUBLIC REPORTING IN LIEU OF RETURN.—The 
Secretary may waive the requirements under subsections 
(a) and (c) with respect to a specified security, if the per-
son required to make the return under subsection (a) 
makes publicly available, in such form and manner as the 
Secretary determines necessary to carry out the purposes 
of this section— 
‘‘(1) the name, address, phone number, and 
email address of the information contact of such 
person, and 
‘‘(2) the information described in paragraphs 
(1), (2), and (3) of subsection (a).’’. 
(2) ASSESSABLE PENALTIES.— 
(A) 
Subparagraph 
(B) 
of 
section 
6724(d)(1) of such Code (defining information 
return) is amended by redesignating clauses (iv) 
through (xix) as clauses (v) through (xx), re-
spectively, and by inserting after clause (iii) the 
following new clause: 
‘‘(iv) section 6045B(a) (relating to re-
turns relating to actions affecting basis of 
specified securities),’’. 
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(B) Paragraph (2) of section 6724(d) of 
such Code (defining payee statement), as 
amended by subsection (c)(2), is amended by 
redesignating subparagraphs (J) through (DD) 
as subparagraphs (K) through (EE), respec-
tively, and by inserting after subparagraph (I) 
the following new subparagraph: 
‘‘(J) subsections (c) and (e) of section 
6045B (relating to returns relating to actions 
affecting basis of specified securities).’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart B of part III of subchapter A of 
chapter 61 of such Code, as amended by subsection 
(b)(3), is amended by inserting after the item relat-
ing to section 6045A the following new item: 
‘‘Sec. 6045B. Returns relating to actions affecting basis of specified securi-
ties.’’. 
(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect on January 1, 2010. 
(2) EXTENSION OF PERIOD FOR STATEMENTS 
SENT TO CUSTOMERS.—The amendments made by 
subsection (a)(3) shall apply to statements required 
to be furnished after December 31, 2008. 
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SEC. 302. DELAY IN APPLICATION OF WORLDWIDE ALLOCA-
TION OF INTEREST. 
(a) IN GENERAL.—Paragraphs (5)(D) and (6) of sec-
tion 864(f) are each amended by striking ‘‘December 31, 
2008’’ and inserting ‘‘December 31, 2009’’. 
(b) TRANSITIONAL RULE.—Subsection (f) of section 
864 is amended by adding at the end the following new 
paragraph: 
‘‘(7) TRANSITION.—In the case of the first tax-
able year to which this subsection applies, the in-
crease (if any) in the amount of the interest expense 
allocable to sources within the United States by rea-
son of the application of this subsection shall be 90 
percent of the amount of such increase determined 
without regard to this paragraph.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 303. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
(a) REPEAL OF ADJUSTMENT FOR 2012.—Subpara-
graph (B) of section 401(1) of the Tax Increase Preven-
tion and Reconciliation Act of 2005 is amended by striking 
the percentage contained therein and inserting ‘‘100 per-
cent’’. 
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(b) MODIFICATION OF ADJUSTMENT FOR 2013.— 
The percentage under subparagraph (C) of section 401(1) 
of the Tax Increase Prevention and Reconciliation Act of 
2005 in effect on the date of the enactment of this Act 
is increased by 13 percentage points. 
Æ 
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