124 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 403. BROKER REPORTING OF CUSTOMER’S BASIS IN 
SECURITIES TRANSACTIONS. 
(a) IN GENERAL.— 
(1) BROKER
REPORTING
FOR
SECURITIES 
TRANSACTIONS.—Section 6045 is amended by add-
ing at the end the following new subsection: 
‘‘(g) ADDITIONAL INFORMATION REQUIRED IN THE 
CASE OF SECURITIES TRANSACTIONS, ETC.— 
‘‘(1) IN GENERAL.—If a broker is otherwise re-
quired to make a return under subsection (a) with 
respect to the gross proceeds of the sale of a covered 
security, the broker shall include in such return the 
information described in paragraph (2). 
‘‘(2) ADDITIONAL INFORMATION REQUIRED.— 
‘‘(A) IN GENERAL.—The information re-
quired under paragraph (1) to be shown on a 
return with respect to a covered security of a 
customer shall include the customer’s adjusted 
basis in such security and whether any gain or 
loss with respect to such security is long-term 
or short-term (within the meaning of section 
1222). 
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125 
‘‘(B) 
DETERMINATION
OF
ADJUSTED 
BASIS.—For purposes of subparagraph (A)— 
‘‘(i) IN
GENERAL.—The customer’s 
adjusted basis shall be determined— 
‘‘(I) in the case of any security 
(other than any stock for which an av-
erage basis method is permissible 
under section 1012), in accordance 
with the first-in first-out method un-
less the customer notifies the broker 
by means of making an adequate 
identification of the stock sold or 
transferred, and 
‘‘(II) in the case of any stock for 
which an average basis method is per-
missible under section 1012, in ac-
cordance with the broker’s default 
method unless the customer notifies 
the broker that he elects another ac-
ceptable method under section 1012 
with respect to the account in which 
such stock is held. 
‘‘(ii) EXCEPTION FOR WASH SALES.— 
Except as otherwise provided by the Sec-
retary, the customer’s adjusted basis shall 
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126 
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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127 
‘‘(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, 2011, in the case of 
any specified security which is stock in a 
corporation (other than any stock de-
scribed in clause (ii)), 
‘‘(ii) January 1, 2012, in the case of 
any stock for which an average basis meth-
od is permissible under section 1012, and 
‘‘(iii) January 1, 2013, 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 
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128 
be treated in the same manner as a partnership for 
purposes of this section. 
‘‘(5) SPECIAL RULES FOR SHORT SALES.—In 
the case of a short sale, reporting under this section 
shall be made for the year in which such sale is 
closed.’’. 
(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, if a covered security is acquired or dis-
posed of pursuant to the exercise of an option that 
was granted or acquired in the same account as the 
covered security, the amount received with respect to 
the grant or paid with respect to the acquisition of 
such option 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.—In the 
case of the lapse (or closing transaction (as defined 
in section 1234(b)(2)(A))) of an option on a speci-
fied security or the exercise of a cash-settled option 
on a specified security, reporting under subsections 
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129 
(a) and (g) with respect to such option shall be 
made for the calendar year which includes the date 
of such lapse, closing transaction, or exercise. 
‘‘(3) PROSPECTIVE APPLICATION.—Paragraphs 
(1) and (2) shall not apply to any option which is 
granted or acquired before January 1, 2013. 
‘‘(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’’. 
(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-
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130 
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 customer, any statement 
which would otherwise be required to be fur-
nished on or before January 31 of a calendar 
year with respect to any item reportable to the 
taxpayer shall instead be required to be fur-
nished on or before February 15 of such cal-
endar year if furnished with such consolidated 
reporting statement.’’. 
(b) DETERMINATION OF BASIS OF CERTAIN SECURI-
TIES
ON ACCOUNT
BY ACCOUNT
OR AVERAGE BASIS 
METHOD.—Section 1012 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 
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131 
(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 CERTAIN REGULATED IN-
VESTMENT COMPANIES.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any stock for which an aver-
age basis method is permissible under section 
1012 which is acquired before January 1, 2012, 
shall be treated as a separate account from any 
such stock acquired on or after such date. 
‘‘(B) ELECTION FOR TREATMENT AS SIN-
GLE ACCOUNT.—If a regulated investment com-
pany 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 company 
held by such stockholders, and 
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132 
‘‘(ii) all stock in such company which 
is held by such stockholders shall be treat-
ed as covered securities described in sec-
tion 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 such stock as a nominee. 
‘‘(3) DEFINITIONS.—For purposes of this sec-
tion, the terms ‘specified security’ and ‘applicable 
date’ shall have the meaning given such terms in 
section 6045(g). 
‘‘(d) AVERAGE BASIS FOR STOCK ACQUIRED PURSU-
ANT TO A PERIODIC STOCK INVESTMENT PLAN.— 
‘‘(1) IN GENERAL.—In the case of any stock ac-
quired after December 31, 2010, in connection with 
a periodic stock investment plan, the basis of such 
stock while held as part of such plan shall be deter-
mined using one of the methods which may be used 
for determining the basis of stock in a regulated in-
vestment company. 
‘‘(2) TREATMENT
AFTER
TRANSFER.—In the 
case of the transfer to another account of stock to 
which paragraph (1) applies, such stock shall have 
a cost basis in such other account equal to its basis 
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133 
in the periodic stock investment plan immediately 
before such transfer (properly adjusted for any fees 
or other charges taken into account in connection 
with such transfer). 
‘‘(3) 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. 
‘‘(4) PERIODIC
STOCK
INVESTMENT
PLAN.— 
For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘periodic 
stock investment plan’ means— 
‘‘(i) any stock purchase plan, and 
‘‘(ii) any dividend reinvestment plan. 
‘‘(B) STOCK PURCHASE PLAN.—The term 
‘stock purchase plan’ means any arrangement 
under which identical stock is periodically pur-
chased pursuant to a written plan. 
‘‘(C) DIVIDEND REINVESTMENT PLAN.— 
‘‘(i) IN
GENERAL.—The term ‘divi-
dend reinvestment plan’ means any ar-
rangement under which dividends on any 
stock are reinvested in stock identical to 
the stock with respect to which the divi-
dends are paid. 
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134 
‘‘(ii) INITIAL
STOCK
ACQUISITION 
TREATED
AS
ACQUIRED
IN
CONNECTION 
WITH PLAN.—Stock shall be treated as ac-
quired in connection with a dividend rein-
vestment 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 TO 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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135 
‘‘(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 not later than 
15 days after the date of the transfer described in such 
subsection.’’. 
(2) ASSESSABLE
PENALTIES.—Paragraph (2) 
of section 6724(d) is amended by redesignating sub-
paragraphs (I) through (DD) as subparagraphs (J) 
through (EE), 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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136 
(d) ADDITIONAL ISSUER INFORMATION TO AID BRO-
KERS.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61, as amended by sub-
section (b), is amended by inserting after section 
6045A the following 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 
‘‘(2) January 15 of the year following the cal-
endar year during which such action occurred. 
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137 
‘‘(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-
scribed in subsection (a) with respect to a specified secu-
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138 
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) is amended by redesignating clause 
(iv) and each of the clauses which follow as 
clauses (v) through (xxiii), respectively, 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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139 
(B) Paragraph (2) of section 6724(d), as 
amended by subsection (c)(2), is amended by 
redesignating subparagraphs (J) through (EE) 
as subparagraphs (K) through (FF), 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, as amended by subsection (b)(3), is 
amended by inserting after the item relating to sec-
tion 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, 2011. 
(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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140 
SEC. 404. 0.2 PERCENT FUTA SURTAX. 
(a) IN GENERAL.—Section 3301 (relating to rate of 
tax) is amended— 
(1) by striking ‘‘through 2008’’ in paragraph 
(1) and inserting ‘‘through 2009’’, and 
(2) by striking ‘‘calendar year 2009’’ in para-
graph (2) and inserting ‘‘calendar year 2010’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to wages paid after December 31, 
2008. 
SEC. 405. INCREASE AND EXTENSION OF OIL SPILL LIABIL-
ITY TRUST FUND TAX. 
(a) INCREASE IN RATE.— 
(1) IN GENERAL.—Section 4611(c)(2)(B) (re-
lating to rates) is amended by striking ‘‘is 5 cents 
a barrel.’’ and inserting ‘‘is— 
‘‘(i) in the case of crude oil received 
or petroleum products entered before Jan-
uary 1, 2017, 8 cents a barrel, and 
‘‘(ii) in the case of crude oil received 
or petroleum products entered after De-
cember 31, 2016, 9 cents a barrel.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply on and after the first 
day of the first calendar quarter beginning more 
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141 
than 60 days after the date of the enactment of this 
Act. 
(b) EXTENSION.— 
(1) IN GENERAL.—Section 4611(f) (relating to 
application of Oil Spill Liability Trust Fund financ-
ing rate) is amended by striking paragraphs (2) and 
(3) and inserting the following new paragraph: 
‘‘(2) TERMINATION.—The Oil Spill Liability 
Trust Fund financing rate shall not apply after De-
cember 31, 2017.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
4611(f)(1) is amended by striking ‘‘paragraphs (2) 
and (3)’’ and inserting ‘‘paragraph (2)’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
SEC. 
406. 
NONQUALIFIED 
DEFERRED 
COMPENSATION 
FROM CERTAIN TAX INDIFFERENT PARTIES. 
(a) IN GENERAL.—Subpart B of part II of sub-
chapter E of chapter 1 is amended by inserting after sec-
tion 457 the following new section: 
‘‘SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION 
FROM CERTAIN TAX INDIFFERENT PARTIES. 
‘‘(a) IN GENERAL.—Any compensation of a service 
provider which is deferred under a nonqualified deferred 
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142 
compensation plan of a nonqualified entity shall be includ-
ible in gross income when there is no substantial risk of 
forfeiture of the rights to such compensation. 
‘‘(b) NONQUALIFIED ENTITY.—For purposes of this 
section, the term ‘nonqualified entity’ means— 
‘‘(1) any foreign corporation unless substan-
tially all of its income is— 
‘‘(A) effectively connected with the conduct 
of a trade or business in the United States, or 
‘‘(B) subject to a comprehensive foreign in-
come tax, and 
‘‘(2) any partnership unless substantially all of 
its income is, directly or indirectly, allocated to— 
‘‘(A) United States persons (other than 
persons exempt from tax under this title), 
‘‘(B) foreign persons with respect to whom 
such income is subject to a comprehensive for-
eign income tax, 
‘‘(C) foreign persons with respect to 
whom— 
‘‘(i) such income is effectively con-
nected with the conduct of a trade or busi-
ness within the United States, and 
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144 
graph for any taxable year is the amount of interest 
at the underpayment rate under section 6621 plus 
1 percentage point on the underpayments that would 
have occurred had the deferred compensation been 
includible in gross income for the taxable year in 
which first deferred or, if later, the first taxable year 
in which such deferred compensation is not subject 
to a substantial risk of forfeiture. 
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) SUBSTANTIAL RISK OF FORFEITURE.— 
‘‘(A) IN GENERAL.—The rights of a person 
to compensation shall be treated as subject to 
a substantial risk of forfeiture only if such per-
son’s rights to such compensation are condi-
tioned upon the future performance of substan-
tial services by any individual. 
‘‘(B) 
EXCEPTION
FOR
COMPENSATION 
BASED ON GAIN RECOGNIZED ON AN INVEST-
MENT ASSET.— 
‘‘(i) IN GENERAL.—To the extent pro-
vided in regulations prescribed by the Sec-
retary, if compensation of a service pro-
vider is determined solely by reference to 
the amount of gain recognized on the dis-
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145 
position of an investment asset, such com-
pensation shall be treated as subject to a 
substantial risk of forfeiture until the date 
of such disposition. 
‘‘(ii) INVESTMENT ASSET.—For pur-
poses of clause (i), the term ‘investment 
asset’ means any single asset (other than 
an investment fund or similar entity)— 
‘‘(I) acquired directly by an in-
vestment fund or similar entity, 
‘‘(II) with respect to which such 
entity does not (nor does any person 
related to such entity) participate in 
the active management of such asset 
(or if such asset is an interest in an 
entity, in the active management of 
the activities of such entity), and 
‘‘(III) substantially all of any 
gain on the disposition of which (other 
than such deferred compensation) is 
allocated to investors in such entity. 
‘‘(iii) COORDINATION
WITH
SPECIAL 
RULE.—Paragraph (3)(B) shall not apply 
to any compensation to which clause (i) 
applies. 
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146 
‘‘(2) COMPREHENSIVE FOREIGN INCOME TAX.— 
The term ‘comprehensive foreign income tax’ means, 
with respect to any foreign person, the income tax 
of a foreign country if— 
‘‘(A) such person is eligible for the benefits 
of a comprehensive income tax treaty between 
such foreign country and the United States, or 
‘‘(B) such person demonstrates to the sat-
isfaction of the Secretary that such foreign 
country has a comprehensive income tax. 
‘‘(3) NONQUALIFIED
DEFERRED
COMPENSA-
TION PLAN.— 
‘‘(A) 
IN
GENERAL.—The 
term 
‘non-
qualified deferred compensation plan’ has the 
meaning 
given 
such 
term 
under 
section 
409A(d), except that such term shall include 
any plan that provides a right to compensation 
based on the appreciation in value of a specified 
number of equity units of the service recipient. 
‘‘(B) 
EXCEPTION.—Compensation 
shall 
not be treated as deferred for purposes of this 
section if the service provider receives payment 
of such compensation not later than 12 months 
after the end of the taxable year of the service 
recipient during which the right to the payment 
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147 
of such compensation is no longer subject to a 
substantial risk of forfeiture. 
‘‘(4) SERVICE
PROVIDER.—The term ‘service 
provider’ has the meaning given such term in the 
regulations under section 409A, determined without 
regard to method of accounting. 
‘‘(5) EXCEPTION FOR CERTAIN COMPENSATION 
WITH
RESPECT
TO
EFFECTIVELY
CONNECTED
IN-
COME.—In the case of a foreign corporation with in-
come which is taxable under section 882, this section 
shall not apply to compensation payable by such for-
eign corporation which, had such compensation been 
paid in cash on the date that such compensation 
ceased to be subject to a substantial risk of for-
feiture, would have been deductible by such foreign 
corporation against such income. 
‘‘(6) EXCEPTION WITH RESPECT TO EMPLOY-
EES OF CERTAIN SUBSIDIARIES.—This section shall 
not apply to compensation deferred under a non-
qualified deferred compensation plan of a non-
qualified entity if— 
‘‘(A) such compensation is payable to an 
employee of a domestic subsidiary of such enti-
ty, and 
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148 
‘‘(B) such compensation is reasonably ex-
pected to be deductible by such subsidiary 
under section 404(a)(5) when such compensa-
tion is includible in income by such employee. 
‘‘(7) APPLICATION OF RULES.—Rules similar to 
the rules of paragraphs (5) and (6) of section 
409A(d) shall apply. 
‘‘(e) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section, including regula-
tions— 
‘‘(1) disregarding a substantial risk of for-
feiture in cases where necessary to carry out the 
purposes of this section, and 
‘‘(2) providing appropriate treatment where an 
individual who was employed by an employer which 
is not a nonqualified entity is temporarily employed 
by a nonqualified entity which is related to such em-
ployer.’’. 
(b) CONFORMING AMENDMENT.—Section 26(b)(2) is 
amended by striking ‘‘and’’ at the end of subparagraph 
(V), by striking the period at the end of subparagraph 
(W) and inserting ‘‘, and’’, and by adding at the end the 
following new subparagraph: 
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149 
‘‘(X) section 457A(c)(1)(B) (relating to de-
terminability of amounts of compensation).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
of subpart B of part II of subchapter E of chapter 1 is 
amended by inserting after the item relating to section 
457 the following new item: 
‘‘Sec. 457A. Nonqualified deferred compensation from certain tax indifferent 
parties.’’. 
(d) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to amounts deferred which 
are attributable to services performed after Decem-
ber 31, 2008. 
(2) APPLICATION TO EXISTING DEFERRALS.— 
In the case of any amount deferred to which the 
amendments made by this section do not apply solely 
by reason of the fact that the amount is attributable 
to services performed before January 1, 2009, to the 
extent such amount is not includible in gross income 
in a taxable year beginning before 2018, such 
amounts shall be includible in gross income in the 
later of— 
(A) the last taxable year beginning before 
2018, or 
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150 
(B) the taxable year in which there is no 
substantial risk of forfeiture of the rights to 
such compensation (determined in the same 
manner as determined for purposes of section 
457A of the Internal Revenue Code of 1986, as 
added by this section). 
(3) ACCELERATED PAYMENTS.—No later than 
120 days after the date of the enactment of this Act, 
the Secretary shall issue guidance providing a lim-
ited period of time during which a nonqualified de-
ferred compensation arrangement attributable to 
services performed on or before December 31, 2008, 
may, without violating the requirements of section 
409A(a) of the Internal Revenue Code of 1986, be 
amended to conform the date of distribution to the 
date the amounts are required to be included in in-
come. 
(4) CERTAIN BACK-TO-BACK ARRANGEMENTS.— 
If the taxpayer is also a service recipient and main-
tains one or more nonqualified deferred compensa-
tion arrangements for its service providers under 
which any amount is attributable to services per-
formed on or before December 31, 2008, the guid-
ance issued under paragraph (4) shall permit such 
arrangements to be amended to conform the dates of 
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151 
distribution under such arrangement to the date 
amounts are required to be included in the income 
of such taxpayer under this subsection. 
(5) ACCELERATED PAYMENT NOT TREATED AS 
MATERIAL
MODIFICATION.—Any amendment to a 
nonqualified deferred compensation arrangement 
made pursuant to paragraph (4) or (5) shall not be 
treated as a material modification of the arrange-
ment for purposes of section 409A of the Internal 
Revenue Code of 1986. 
(6) CERTAIN PREEXISTING ARRANGEMENTS.— 
If, pursuant to a written binding contract entered 
into on or before December 31, 2007, any portion of 
compensation payable under such contract for a pe-
riod is determined as a portion of the amount of 
gain recognized on the disposition during such pe-
riod of a specified asset, the amendments made by 
this section shall not apply to the portion of com-
pensation attributable to such disposition notwith-
standing the fact that such portion of compensation 
may be reduced by realized losses or depreciation in 
the value of other assets during such period or a 
prior period or be attributable in part to services 
performed after December 31, 2008, but only if— 
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152 
(A) payment of such portion of compensa-
tion is received by the service provider and in-
cluded in its gross income no later than the ear-
lier of— 
(i) 12 months after the end of the 
taxable year of the service recipient during 
which the disposition of the specified asset 
occurs, or 
(ii) the last taxable year of the service 
provider beginning before January 1, 
2018; and 
(B) the specified asset is held by the serv-
ice recipient on the date of the enactment of 
this section. 
SEC. 407. 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, 
2010’’ and inserting ‘‘December 31, 2016’’. 
(b) TRANSITION.—Paragraph (7) of section 864(f) is 
amended by striking ‘‘30 percent’’ and inserting ‘‘55 per-
cent’’. 
(c) COORDINATION WITH OTHER LEGISLATION.—If 
H.R. 6983 of the 110th Congress is enacted into law— 
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153 
(1) such law shall be treated, solely for pur-
poses of carrying out the amendments made by this 
section, as having been enacted immediately before 
the enactment of this Act, and 
(2) in lieu of the amendments made by sub-
sections (a) and (b): 
(A) Paragraphs (5)(D) and (6) of section 
864(f), as amended by such law, are each 
amended by striking ‘‘December 31, 2012’’ and 
inserting ‘‘December 31, 2018’’. 
(B) Subsection (f) of section 864, as 
amended by such law, is amended by striking 
paragraph (7). 
SEC. 408. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
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 58 percentage points. 
Æ 
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