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forms or regulations prescribed by the Secretary) setting
forth—
‘‘(1) a description of the acquisition,
‘‘(2) the name and address of each shareholder of
the acquired corporation who is required to recognize
gain (if any) as a result of the acquisition,
‘‘(3) the amount of money and the fair market
value of other property transferred to each such share-
holder as part of such acquisition, and
‘‘(4) such other information as the Secretary
may prescribe.
To the extent provided by the Secretary, the requirements
of this section applicable to the acquiring corporation shall
be applicable to the acquired corporation and not to the
acquiring corporation.
‘‘(b) NOMINEE REPORTING.—Any person who holds
stock as a nominee for another person shall furnish in the
manner prescribed by the Secretary to such other person
the information provided by the corporation under sub-
section (d).
‘‘(c) TAXABLE ACQUISITION.—For purposes of this sec-
tion, the term ‘taxable acquisition’ means any acquisition
by a corporation of stock in or property of another corpora-
tion if any shareholder of the acquired corporation is re-
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quired to recognize gain (if any) as a result of such acquisi-
tion.
‘‘(d) STATEMENTS TO BE FURNISHED TO SHARE-
HOLDERS.—Every person required to make a return under
subsection (a) shall furnish to each shareholder whose name
is required to be set forth in such return a written statement
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 shareholder, and
‘‘(3) such other information as the Secretary
may prescribe.
The written statement required under the preceding sen-
tence shall be furnished to the shareholder on or before Jan-
uary 31 of the year following the calendar year during
which the taxable acquisition occurred.’’.
(b) ASSESSABLE PENALTIES.—
(1) Subparagraph (B) of section 6724(d)(1) (de-
fining information return) is amended by redesig-
nating clauses (ii) through (xviii) as clauses (iii)
through (xix), respectively, and by inserting after
clause (i) the following new clause:
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‘‘(ii) section 6043A(a) (relating to re-
turns relating to taxable mergers and acqui-
sitions),’’.
(2) Paragraph (2) of section 6724(d) (relating to
definitions) is amended by redesignating subpara-
graphs (F) through (BB) as subparagraphs (G)
through (CC), respectively, and by inserting after sub-
paragraph (E) the following new subparagraph:
‘‘(F) subsections (b) and (d) of section
6043A (relating to returns relating to taxable
mergers and acquisitions).’’.
(c) CLERICAL AMENDMENT.—The table of sections for
subpart B of part III of subchapter A of chapter 61 is
amended by inserting after the item relating to section 6043
the following new item:
‘‘Sec. 6043A. Returns relating to taxable mergers and acquisitions.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to acquisitions after the date of the en-
actment of this Act.
SEC. 642. MODIFICATION OF DEFINITION OF CONTROLLED
GROUP OF CORPORATIONS.
(a) IN GENERAL.—Section 1563(a)(2) (relating to
brother-sister controlled group) is amended by striking
‘‘possessing—’’ and all that follows through ‘‘(B)’’ and in-
serting ‘‘possessing’’.
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(b) APPLICATION
OF EXISTING RULES
TO OTHER
CODE PROVISIONS.—Section 1563(f) (relating to other defi-
nitions and rules) is amended by adding at the end the
following new paragraph:
‘‘(5) BROTHER-SISTER CONTROLLED GROUP DEF-
INITION FOR PROVISIONS OTHER THAN THIS PART.—
‘‘(A) IN GENERAL.—Except as specifically
provided in an applicable provision, subsection
(a)(2) shall be applied to an applicable provision
as if it read as follows:
‘‘‘(2) BROTHER-SISTER CONTROLLED GROUP.—
Two or more corporations if 5 or fewer persons who
are individuals, estates, or trusts own (within the
meaning of subsection (d)(2) stock possessing—
‘‘‘(A) at least 80 percent of the total com-
bined voting power of all classes of stock entitled
to vote, or at least 80 percent of the total value
of shares of all classes of stock, of each corpora-
tion, and
‘‘‘(B) more than 50 percent of the total com-
bined voting power of all classes of stock entitled
to vote or more than 50 percent of the total value
of shares of all classes of stock of each corpora-
tion, taking into account the stock ownership of
each such person only to the extent such stock
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ownership is identical with respect to each such
corporation.’
‘‘(B) APPLICABLE
PROVISION.—For pur-
poses of this paragraph, an applicable provision
is any provision of law (other than this part)
which incorporates the definition of controlled
group of corporations under subsection (a).’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after the date
of the enactment of this Act.
Attest:
Secretary.