(2) CONFORMING AMENDMENT.—Subparagraph 
(B) of section 860(f)(2) is amended by inserting ‘‘or 
reported (as the case may be)’’ after ‘‘designated’’. 
(b) EXEMPT-INTEREST DIVIDENDS.—Subparagraph 
(A) of section 852(b)(5) is amended to read as follows: 
‘‘(A) DEFINITION
OF
EXEMPT-INTEREST 
DIVIDEND.— 
‘‘(i) IN GENERAL.—An exempt-inter-
est dividend is the excess of— 
‘‘(I) the portion of any dividend 
(other than a capital gain dividend) 
paid by a regulated investment com-
pany and reported by the company as 
an exempt-interest dividend in a writ-
ten statement furnished to its share-
holders (hereafter in this subpara-
graph referred to as the ‘reported ex-
empt-interest dividend amount’), over 
‘‘(II) the excess reported amount 
(if any) which is allocable to the re-
ported 
exempt-interest 
dividend 
amount. 
‘‘(ii) ALLOCATION
OF
EXCESS
RE-
PORTED AMOUNT.— 
VerDate Nov 24 2008 
02:04 Dec 22, 2009
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the excess 
reported amount (if any) which is al-
locable to the reported exempt-interest 
dividend amount is that portion of the 
excess reported amount which bears 
the same ratio to the excess reported 
amount as the reported exempt-inter-
est dividend amount bears to the ag-
gregate reported amount. 
‘‘(II) SPECIAL
RULE
FOR
NON-
CALENDAR YEAR TAXPAYERS.—In the 
case of any taxable year which does 
not begin and end in the same cal-
endar year, if the post-December re-
ported amount equals or exceeds the 
excess reported amount for such tax-
able year, subclause (I) shall be ap-
plied by substituting ‘post-December 
reported amount’ for ‘aggregate re-
ported amount’ and no excess re-
ported amount shall be allocated to 
any dividend paid on or before De-
cember 31 of such taxable year. 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(iii) DEFINITIONS.—For purposes of 
this subparagraph— 
‘‘(I) 
EXCESS
REPORTED 
AMOUNT.—The term ‘excess reported 
amount’ means the excess of the ag-
gregate reported amount over the ex-
empt interest of the company for the 
taxable year. 
‘‘(II) 
AGGREGATE
REPORTED 
AMOUNT.—The term ‘aggregate re-
ported amount’ means the aggregate 
amount of dividends reported by the 
company under clause (i)(I) as ex-
empt-interest dividends for the taxable 
year (including exempt-interest divi-
dends paid after the close of the tax-
able year described in section 855). 
‘‘(III) 
POST-DECEMBER
RE-
PORTED
AMOUNT.—The term ‘post- 
December reported amount’ means 
the aggregate reported amount deter-
mined by taking into account only 
dividends paid after December 31 of 
the taxable year. 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(IV) EXEMPT
INTEREST.—The 
term ‘exempt interest’ means, with re-
spect to any regulated investment 
company, the excess of the amount of 
interest excludable from gross income 
under 
section 
103(a) 
over 
the 
amounts disallowed as deductions 
under sections 265 and 171(a)(2).’’. 
(c) FOREIGN TAX CREDITS.—Subsection (c) of sec-
tion 853 is amended by striking ‘‘so designated by the 
company in a written notice mailed to its shareholders not 
later than 60 days after the close of the taxable year’’ and 
inserting ‘‘so reported by the company in a written state-
ment furnished to its shareholders’’. 
(d) CREDITS FOR TAX CREDIT BONDS.—Subsection 
(c) of section 853A is amended by striking ‘‘so designated 
by the regulated investment company in a written notice 
mailed to its shareholders not later than 60 days after 
the close of its taxable year’’ and inserting ‘‘so reported 
by the regulated investment company in a written state-
ment furnished to its shareholders’’. 
(e) DIVIDEND RECEIVED DEDUCTION, ETC.— 
(1) IN
GENERAL.—Paragraph (1) of section 
854(b) is amended— 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
(A) by striking ‘‘designated under this sub-
paragraph by the regulated investment com-
pany’’ in subparagraph (A) and inserting ‘‘re-
ported by the regulated investment company as 
eligible for such deduction in a written state-
ment furnished to its shareholders’’, 
(B) by striking ‘‘designated by the regu-
lated investment company’’ in subparagraph 
(B)(i) and inserting ‘‘reported by the regulated 
investment company as qualified dividend in-
come in a written statement furnished to its 
shareholders’’, 
(C) by striking ‘‘designated’’ in subpara-
graph (C)(i) and inserting ‘‘reported’’, and 
(D) by striking ‘‘designated’’ in subpara-
graph (C)(ii) and inserting ‘‘reported’’. 
(2) CONFORMING
AMENDMENTS.—Subsection 
(b) of section 854 is amended by striking paragraph 
(2) and by redesignating paragraphs (3), (4), and 
(5), as paragraphs (2), (3), and (4), respectively. 
(f) DIVIDENDS PAID TO CERTAIN FOREIGN PER-
SONS.— 
(1) INTEREST-RELATED DIVIDENDS.—Subpara-
graph (C) of section 871(k)(1) is amended to read 
as follows: 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(C) INTEREST-RELATED DIVIDEND.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘interest related 
dividend’ means the excess of— 
‘‘(I) the portion of any dividend 
which is reported by the company as 
an interest related dividend in a writ-
ten statement furnished to its share-
holders (hereafter in this subpara-
graph referred to as the ‘reported in-
terest related dividend amount’), over 
‘‘(II) the excess reported amount 
(if any) which is allocable to the re-
ported 
interest 
related 
dividend 
amount. 
‘‘(ii) ALLOCATION
OF
EXCESS
RE-
PORTED AMOUNT.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the excess 
reported amount (if any) which is al-
locable to the reported interest related 
dividend amount is that portion of the 
excess reported amount which bears 
the same ratio to the excess reported 
amount as the reported interest re-
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
lated dividend amount bears to the 
aggregate reported amount. 
‘‘(II) SPECIAL
RULE
FOR
NON-
CALENDAR YEAR TAXPAYERS.—In the 
case of any taxable year which does 
not begin and end in the same cal-
endar year, if the post-December re-
ported amount equals or exceeds the 
excess reported amount for such tax-
able year, subclause (I) shall be ap-
plied by substituting ‘post-December 
reported amount’ for ‘aggregate re-
ported amount’ and no excess re-
ported amount shall be allocated to 
any dividend paid on or before De-
cember 31 of such taxable year. 
‘‘(iii) DEFINITIONS.—For purposes of 
this subparagraph— 
‘‘(I) 
EXCESS
REPORTED 
AMOUNT.—The term ‘excess reported 
amount’ means the excess of the ag-
gregate reported amount over the 
qualified net interest income of the 
company for the taxable year. 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(II) 
AGGREGATE
REPORTED 
AMOUNT.—The term ‘aggregate re-
ported amount’ means the aggregate 
amount of dividends reported by the 
company under clause (i)(I) as inter-
est related dividends for the taxable 
year (including interest related divi-
dends paid after the close of the tax-
able year described in section 855). 
‘‘(III) 
POST-DECEMBER
RE-
PORTED
AMOUNT.—The term ‘post- 
December reported amount’ means 
the aggregate reported amount deter-
mined by taking into account only 
dividends paid after December 31 of 
the taxable year. 
‘‘(iv) TERMINATION.—The term ‘in-
terest related dividend’ shall not include 
any dividend with respect to any taxable 
year of the company beginning after De-
cember 31, 2009.’’. 
(2) SHORT-TERM CAPITAL GAIN DIVIDENDS.— 
Subparagraph (C) of section 871(k)(2) is amended 
to read as follows: 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(C) SHORT-TERM
CAPITAL
GAIN
DIVI-
DEND.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘short-term cap-
ital gain dividend’ means the excess of— 
‘‘(I) the portion of any dividend 
which is reported by the company as 
a short-term capital gain dividend in a 
written statement furnished to its 
shareholders (hereafter in this sub-
paragraph referred to as the ‘reported 
short-term 
capital 
gain 
dividend 
amount’), over 
‘‘(II) the excess reported amount 
(if any) which is allocable to the re-
ported short-term capital gain divi-
dend amount. 
‘‘(ii) ALLOCATION
OF
EXCESS
RE-
PORTED AMOUNT.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the excess 
reported amount (if any) which is al-
locable to the reported short-term cap-
ital gain dividend amount is that por-
tion of the excess reported amount 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
which bears the same ratio to the ex-
cess reported amount as the reported 
short-term 
capital 
gain 
dividend 
amount bears to the aggregate re-
ported amount. 
‘‘(II) SPECIAL
RULE
FOR
NON-
CALENDAR YEAR TAXPAYERS.—In the 
case of any taxable year which does 
not begin and end in the same cal-
endar year, if the post-December re-
ported amount equals or exceeds the 
excess reported amount for such tax-
able year, subclause (I) shall be ap-
plied by substituting ‘post-December 
reported amount’ for ‘aggregate re-
ported amount’ and no excess re-
ported amount shall be allocated to 
any dividend paid on or before De-
cember 31 of such taxable year. 
‘‘(iii) DEFINITIONS.—For purposes of 
this subparagraph— 
‘‘(I) 
EXCESS
REPORTED 
AMOUNT.—The term ‘excess reported 
amount’ means the excess of the ag-
gregate reported amount over the 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
qualified short-term gain of the com-
pany for the taxable year. 
‘‘(II) 
AGGREGATE
REPORTED 
AMOUNT.—The term ‘aggregate re-
ported amount’ means the aggregate 
amount of dividends reported by the 
company under clause (i)(I) as short- 
term capital gain dividends for the 
taxable year (including short-term 
capital gain dividends paid after the 
close of the taxable year described in 
section 855). 
‘‘(III) 
POST-DECEMBER
RE-
PORTED
AMOUNT.—The term ‘post- 
December reported amount’ means 
the aggregate reported amount deter-
mined by taking into account only 
dividends paid after December 31 of 
the taxable year. 
‘‘(iv) 
TERMINATION.—The 
term 
‘short-term capital gain dividend’ shall not 
include any dividend with respect to any 
taxable year of the company beginning 
after December 31, 2009.’’. 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions in taxable years 
beginning after the date of the enactment of this Act. 
(h) APPLICATION
OF JGTRRA SUNSET.—Section 
303 of the Jobs and Growth Tax Relief Reconciliation Act 
of 2003 shall apply to the amendments made by subpara-
graphs (B) and (D) of subsection (e)(1) to the same extent 
and in the same manner as section 303 of such Act applies 
to the amendments made by section 302 of such Act. 
SEC. 302. EARNINGS AND PROFITS OF REGULATED INVEST-
MENT COMPANIES. 
(a) IN GENERAL.—Paragraph (1) of section 852(c) 
is amended by inserting ‘‘(other than by reason of section 
265 or 171(a)(2))’’ after ‘‘not allowable as a deduction’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 303. PASS-THRU OF EXEMPT-INTEREST DIVIDENDS 
AND FOREIGN TAX CREDITS IN FUND OF 
FUNDS STRUCTURE. 
(a) IN GENERAL.—Section 852 is amended by adding 
at the end the following new subsection: 
‘‘(g) SPECIAL RULES FOR FUND OF FUNDS.— 
‘‘(1) IN GENERAL.—In the case of a qualified 
fund of funds— 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(A) such fund shall be qualified to pay 
exempt-interest dividends to its shareholders 
without regard to whether such fund satisfies 
the requirements of the first sentence of sub-
section (b)(5), and 
‘‘(B) such fund may elect the application 
of section 853 (relating to foreign tax credit al-
lowed to shareholders) without regard to the re-
quirement of subsection (a)(1) thereof. 
‘‘(2) QUALIFIED FUND OF FUNDS.—For pur-
poses of this subsection, the term ‘qualified fund of 
funds’ means a regulated investment company if (at 
the close of each quarter of the taxable year) at least 
95 percent of the value of its total assets is rep-
resented by— 
‘‘(A) cash and cash items (including receiv-
ables), and 
‘‘(B) interests in other regulated invest-
ment companies.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
SEC. 304. MODIFICATION OF RULES FOR SPILLOVER DIVI-
DENDS OF REGULATED INVESTMENT COMPA-
NIES. 
(a) DEADLINE FOR DECLARATION OF DIVIDEND.— 
Paragraph (1) of section 855(a) is amended to read as 
follows: 
‘‘(1) declares a dividend before the later of— 
‘‘(A) the 15th day of the 9th month fol-
lowing the close the taxable year, or 
‘‘(B) in the case of an extension of time 
for filing the company’s return for the taxable 
year, the due date for filing such return taking 
into account such extension, and’’. 
(b) DEADLINE FOR DISTRIBUTION OF DIVIDEND.— 
Paragraph (2) of section 855(a) is amended by striking 
‘‘the first regular dividend payment’’ and inserting ‘‘the 
first dividend payment of the same type of dividend’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions in taxable years 
beginning after the date of the enactment of this Act. 
SEC. 305. RETURN OF CAPITAL DISTRIBUTIONS OF REGU-
LATED INVESTMENT COMPANIES. 
(a) IN GENERAL.—Subsection (b) of section 316 is 
amended by adding at the end the following new para-
graph: 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(4) CERTAIN DISTRIBUTIONS BY REGULATED 
INVESTMENT COMPANIES IN EXCESS OF EARNINGS 
AND PROFITS.—In the case of a regulated invest-
ment company that has a taxable year other than a 
calendar year, if the distributions by the company 
with respect to any class of stock of such company 
for the taxable year (including distributions of prop-
erty after the close of the taxable year described in 
section 855) exceed the company’s current and accu-
mulated earnings and profits which may be used for 
the payment of dividends on such class of stock, the 
company’s current earnings and profits shall, for 
purposes of subsection (a), be allocated first to dis-
tributions with respect to such class of stock made 
during the portion of the taxable year which pre-
cedes January 1.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions made in taxable 
years beginning after the date of the enactment of this 
Act. 
SEC. 306. DISTRIBUTIONS IN REDEMPTION OF STOCK OF A 
REGULATED INVESTMENT COMPANY. 
(a) REDEMPTIONS TREATED AS EXCHANGES.— 
(1) IN
GENERAL.—Subsection (b) of section 
302 is amended by redesignating paragraph (5) as 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
paragraph (6) and by inserting after paragraph (4) 
the following new paragraph: 
‘‘(5) REDEMPTIONS
BY
CERTAIN
REGULATED 
INVESTMENT
COMPANIES.—Except to the extent 
provided in regulations prescribed by the Secretary, 
subsection (a) shall apply to any distribution in re-
demption of stock of a publicly offered regulated in-
vestment company (within the meaning of section 
67(c)(2)(B)) if— 
‘‘(A) such redemption is upon the demand 
of the stockholder, and 
‘‘(B) such company issues only stock which 
is redeemable upon the demand of the stock-
holder.’’. 
(2) CONFORMING AMENDMENT.—Subsection (a) 
of section 302 is amended by striking ‘‘or (4)’’ and 
inserting ‘‘(4), or (5)’’. 
(b) LOSSES ON REDEMPTIONS NOT DISALLOWED 
FOR FUND-OF-FUNDS REGULATED INVESTMENT COMPA-
NIES.—Paragraph (3) of section 267(f) is amended by 
adding at the end the following new subparagraph: 
‘‘(D) REDEMPTIONS
BY
FUND-OF-FUNDS 
REGULATED INVESTMENT COMPANIES.—Except 
to the extent provided in regulations prescribed 
by the Secretary, subsection (a)(1) shall not 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
apply to any distribution in redemption of stock 
of a regulated investment company if— 
‘‘(i) such company issues only stock 
which is redeemable upon the demand of 
the stockholder, and 
‘‘(ii) such redemption is upon the de-
mand of another regulated investment 
company.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions after the date of 
the enactment of this Act. 
SEC. 307. REPEAL OF PREFERENTIAL DIVIDEND RULE FOR 
PUBLICLY OFFERED REGULATED INVEST-
MENT COMPANIES. 
(a) IN GENERAL.—Subsection (c) of section 562 is 
amended by striking ‘‘The amount’’ and inserting ‘‘Except 
in the case of a publicly offered regulated investment com-
pany (as defined in section 67(c)(2)(B)), the amount’’. 
(b) CONFORMING AMENDMENT.—Section 562(c) is 
amended by inserting ‘‘(other than a publicly offered regu-
lated investment company (as so defined))’’ after ‘‘regu-
lated investment company’’ in the second sentence thereof. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions in taxable years 
beginning after the date of the enactment of this Act. 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
SEC. 308. ELECTIVE DEFERRAL OF CERTAIN LATE-YEAR 
LOSSES OF REGULATED INVESTMENT COM-
PANIES. 
(a) IN GENERAL.—Paragraph (8) of section 852(b) 
is amended to read as follows: 
‘‘(8) ELECTIVE DEFERRAL OF CERTAIN LATE- 
YEAR LOSSES.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided by the Secretary, a regulated invest-
ment company may elect for any taxable year to 
compute its taxable income, net capital gain, 
and earnings and profits without regard to any 
portion of any qualified late-year loss, and any 
such portion shall be treated as arising on the 
first day of the following taxable year for pur-
poses of such computations. 
‘‘(B) QUALIFIED
LATE-YEAR
LOSS.—For 
purposes of this paragraph, the term ‘qualified 
late-year loss’ means— 
‘‘(i) any post-October capital loss, and 
‘‘(ii) any late-year ordinary loss. 
‘‘(C) POST-OCTOBER CAPITAL LOSS.—For 
purposes of this paragraph, the term ‘post-Oc-
tober capital loss’ means the greatest of— 
VerDate Nov 24 2008 
02:04 Dec 22, 2009
Jkt 089200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(i) the net capital loss attributable to 
the portion of the taxable year after Octo-
ber 31, 
‘‘(ii) the net long-term capital loss at-
tributable to such portion of the taxable 
year, or 
‘‘(iii) the net short-term capital loss 
attributable to such portion of the taxable 
year. 
‘‘(D) LATE-YEAR
ORDINARY
LOSS.—For 
purposes of this paragraph, the term ‘late-year 
ordinary loss’ means the excess (if any) of— 
‘‘(i) the sum of— 
‘‘(I) the ordinary losses attrib-
utable to the portion of the taxable 
year after December 31, plus 
‘‘(II) the specified losses (as de-
fined in section 4982(e)(5)(B)(ii)) at-
tributable to the portion of the taxable 
year after October 31 (and before 
January 1), over 
‘‘(ii) the sum of— 
‘‘(I) the ordinary income attrib-
utable to the portion of the taxable 
year after December 31, plus 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to calendar years beginning after 
the date of the enactment of this Act. 
TITLE V—OTHER PROVISIONS 
SEC. 501. REPEAL OF ASSESSABLE PENALTY WITH RE-
SPECT TO LIABILITY FOR TAX OF REGU-
LATED INVESTMENT COMPANIES. 
(a) IN GENERAL.—Part I of subchapter B of chapter 
68 is amended by striking section 6697 (and by striking 
the item relating to such section in the table of sections 
of such part). 
(b) CONFORMING
AMENDMENT.—Section 860 is 
amended by striking subsection (j). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 502. MODIFICATION OF SALES LOAD BASIS DEFERRAL 
RULE FOR REGULATED INVESTMENT COMPA-
NIES. 
(a) IN GENERAL.—Subparagraph (C) of section 
852(f)(1) is amended by striking ‘‘subsequently acquires’’ 
and inserting ‘‘acquires, during the period beginning on 
the date of the disposition referred to in subparagraph (B) 
and ending on January 31 of the calendar year following 
VerDate Nov 24 2008 
01:48 Dec 20, 2009
Jkt 089200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H4337.IH
H4337
mstockstill on DSKH9S0YB1PROD with BILLS