(B) Subsection (c) of section 772 is amended—
(i) in paragraph (2), by striking ‘‘para-
graphs (3)(A) and (5)(A)’’ and inserting ‘‘para-
graph (3)(A)’’, 
(ii) by striking paragraph (5), and 
(iii) by redesignating paragraph (6) as 
paragraph (5), and in that paragraph by strik-
ing ‘‘paragraph (6) of subsection (a)’’ and in-
serting ‘‘paragraph (5) of subsection (a)’’. 
(C) Subsection (d) of section 772 is amended—
(i) by striking paragraph (3) and redesig-
nating paragraphs (4), (5), and (6) as para-
graphs (3), (4), and (5), respectively, and 
(ii) in subparagraph (A) of paragraph (3), 
as so redesignated, by striking ‘‘subsection 
(a)(11)’’ and inserting ‘‘subsection (a)(10)’’. 
(28) Paragraph (2) of section 815(c) (relating 
to distributions to shareholders from pre-1984 pol-
icyholders surplus account) is amended by striking 
the last sentence. 
(29) Section 847 (relating to special estimated 
tax payments) is amended—
(A) in paragraph (9), by striking the last 
sentence; and
(B) in paragraph (10), by inserting ‘‘and’’ 
at the end of subparagraph (A), by striking 
subparagraph (B), and by redesignating sub-
paragraph (C) as subparagraph (B). 
(30) Section 848 (relating to capitalization of 
certain policy acquisition expenses) is amended by 
striking subsection (i) and by redesignating sub-
section (j) as subsection (i). 
(31) Subsection (a) of section 860E (relating to 
treatment of income in excess of daily accruals on 
residual interests) is amended by striking paragraph 
(4). 
(32) Section 860J (relating to non-FASIT 
losses not to offset certain FASIT inclusions) is 
amended by striking subsection (c) and redesig-
nating subsection (d) as subsection (c). 
(33) Paragraph (1) of section 871(b) (relating 
to tax on nonresident alien individuals) is amended 
by striking ‘‘or 55’’. 
(34) Subsection (b) of section 877 (relating to 
expatriation to avoid tax) is amended by striking ‘‘or 
55’’. 
(35) Paragraph (1) of section 882(a) (relating 
to tax on income of foreign corporations connected
with United States business) is amended by striking 
‘‘55,’’. 
(36) Subsection (a) of section 897 (relating to 
disposition of investment in United States real prop-
erty) is amended to read as follows: 
‘‘(a) TREATMENT
AS EFFECTIVELY CONNECTED 
WITH UNITED STATES TRADE OR BUSINESS.—For pur-
poses of this title, gain or loss of a nonresident alien indi-
vidual or a foreign corporation from the disposition of a 
United States real property interest shall be taken into 
account—
‘‘(1) in the case of a nonresident alien indi-
vidual, under section 871(b)(1), or 
‘‘(2) in the case of a foreign corporation, under 
section 882(a)(1), 
as if the taxpayer were engaged in a trade or business 
within the United States during the taxable year and as 
if such gain or loss were effectively connected with such 
trade or business.’’
(37) Subsection (k) of section 904 (relating to 
limitation on credit) is amended to read as follows:
‘‘(k) CROSS REFERENCE.—
‘‘For increase of limitation under subsection (a) 
for taxes paid with respect to amounts received 
which were included in the gross income of the tax-
payer for a prior taxable year as a United States 
shareholder with respect to a controlled foreign cor-
poration, see section 960(b).’’
(38) Paragraph (1) of section 962(a) (relating 
to election by individuals to be subject to tax at cor-
porate rates) is amended—
(A) by striking ‘‘sections 1 and 55’’ and 
inserting ‘‘section 1’’, and 
(B) by striking ‘‘sections 11 and 55’’ and 
inserting ‘‘section 11’’. 
(39) Paragraph (20) of section 1016(a) (relat-
ing to adjustments to basis) is amended by inserting 
‘‘, as in effect on the day before the date of the en-
actment of the Alternative Minimum Tax Repeal Act 
of 2003’’ after ‘‘preferences)’’. 
(40) Paragraph (4) of section 1260(b) (relating 
to gains from constructive ownership transactions) is 
amended by striking ‘‘for purposes’’ and all that fol-
lows and inserting ‘‘for purposes of determining the 
amount of any credit allowable under this chapter.’’
(41) Paragraph (1) of section 1397E(c) (relat-
ing to credit to holders of qualified zone academy 
bonds) is amended by striking ‘‘plus the tax imposed 
by section 55’’.