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‘‘(B) in the case of an S corporation, the
shares of stock in the corporation (whether vot-
ing or nonvoting).
‘‘(3) OWNER.—The term ‘owner’ means a part-
ner in a partnership or a shareholder in an S cor-
poration, whichever is applicable.
‘‘(4) COMMON CONTROL.—
‘‘(A) IN GENERAL.—For purposes of sub-
sections (c)(2), (c)(4)(B), and (d)(2)(B), enti-
ties under common control shall be treated as
1 entity.
‘‘(B) COMMON
CONTROL.—Entities shall
be treated as under common control under sub-
paragraph (A) if they are treated as a single
employee under subsection (a) or (b) of section
52.
‘‘(5) WAIVER.—No penalty shall be imposed
under 
subsection 
(a) 
with 
respect 
to 
any
underpayment to the extent the Secretary deter-
mines that by reason of casualty, disaster, or other
unusual circumstances the imposition of the penalty
would be against equity and good conscience.’’
(c) MODIFICATION OF ELECTIONS.—
(1) TIME FOR MAKING.—Paragraph (1) of sec-
tion 444(d) is amended by adding at the end the fol-
1171
lowing new sentence: ‘‘Such election may be made at
any time on or before the 15th day of the 3d month
of the first taxable year of 12 months under the
election.’’
(2) TERMINATIONS.—Paragraph (2) of section
444(d) is amended by striking subparagraph (B)
and inserting:
‘‘(B) TERMINATIONS.—
‘‘(i) REVOCATION.—An election under
subsection (a) may be terminated by rev-
ocation but only if owners of more than
one-half of the equity interests in the en-
tity on the date of the revocation consent
to it.
‘‘(ii) ENTITY TERMINATIONS.—In the
case of a partnership or S corporation, an
election under subsection (a) terminates
when the partnership terminates under
section 708(b)(1) or the corporation ceases
to be an S corporation.
‘‘(C) SUBSEQUENT
ELECTIONS.—If an
election under subsection (a) has been termi-
nated, no such election may be made with re-
spect to such entity or any successor entity for
any taxable year before its 5th taxable year be-
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ginning after the 1st taxable year for which the
termination was effective, unless the Secretary
consents to the election.’’
(d) CONFORMING AMENDMENTS.—
(1) Section 6665(b) is amended—
(A) by inserting ‘‘6654A,’’ after ‘‘6654,’’,
and
(B) by striking ‘‘6654 or’’ and inserting
‘‘6654, 6654A, or’’.
(2) The table of sections for part I of sub-
chapter A of chapter 68 is amended by inserting
after the item relating to section 6654 the following
new item:
‘‘Sec. 6654A. Failure by electing partnership or S corporation to
pay estimated tax.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1996.
SEC. 14555. SPECIAL RULE FOR CROP INSURANCE PRO-
CEEDS AND DISASTER PAYMENTS.
(a) IN GENERAL.—Section 451(d) of the Internal
Revenue Code of 1986 (relating to special rule for crop
insurance proceeds and disaster payments) is amended to
read as follows:
‘‘(d) SPECIAL RULE FOR CROP INSURANCE PRO-
CEEDS AND DISASTER PAYMENTS.—
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‘‘(1) GENERAL RULE.—In the case of any pay-
ment described in paragraph (2), a taxpayer report-
ing on the cash receipts and disbursements method
of accounting—
‘‘(A) may elect to treat any such payment
received in the taxable year of destruction or
damage of crops as having been received in the
following taxable year if the taxpayer estab-
lishes that, under the taxpayer’s practice, in-
come from such crops involved would have been
reported in a following taxable year, or
‘‘(B) may elect to treat any such payment
received in a taxable year following the taxable
year of the destruction or damage of crops as
having been received in the taxable year of de-
struction or damage, if the taxpayer establishes
that, under the taxpayer’s practice, income
from such crops involved would have been re-
ported in the taxable year of destruction or
damage.
‘‘(2) PAYMENTS DESCRIBED.—For purposes of
this subsection, a payment is described in this para-
graph if such payment—
‘‘(A) is insurance proceeds received on ac-
count of destruction or damage to crops, or
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‘‘(B) is disaster assistance received under
any Federal law as a result of—
‘‘(i) destruction or damage to crops
caused by drought, flood, or other natural
disaster, or
‘‘(ii) inability to plant crops because
of such a disaster.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies to payments received after Decem-
ber 31, 1995, as a result of destruction or damage occur-
ring after such date.
PART V—TAX-EXEMPT BOND PROVISIONS
SEC. 14561. REPEAL OF $100,000 LIMITATION ON UNSPENT
PROCEEDS UNDER 1-YEAR EXCEPTION FROM
REBATE.
Subclause (I) of section 148(f)(4)(B)(ii) (relating to
additional period for certain bonds) is amended by striking
‘‘the lesser of 5 percent of the proceeds of the issue or
$100,000’’ and inserting ‘‘5 percent of the proceeds of the
issue’’.
SEC. 14562. EXCEPTION FROM REBATE FOR EARNINGS ON
BONA FIDE DEBT SERVICE FUND UNDER
CONSTRUCTION BOND RULES.
Subparagraph (C) of section 148(f)(4) is amended by
adding at the end the following new clause: