548
PUBLIC LAW 91-172-DEC. 30, 1969
[83 STAT.
(3) T E C H N I C A L AND CONFORMING AMENDMENTS. —
irusc^si'/^'
68A Stat. 169; ^"'^' P- ^^^-
(A) Subsections (b), (c), and (d) of section 514 (relating to business leases) are relettered as subsections (f), (g), and (h), respectively. (B) New subsection (f)(1) (old subsection (b)(1), relating to general rule for definition of business lease) is amended by striking out "subsection (c) " and inserting in lieu thereof "subsection (g) ". (C) The table of sections for part III of subchapter F of chapter 1 (as redesignated by section 101(a) of this Act) is amended by striking out— "Sec. 514. Business leases." and inserting in lieu thereof the following: "Sec. 514. Unrelated debt-financed income." (e) RETURNS.—
68A Stat. 745.
Ante, p. 536.
(1) IN GENERAL.—Subpart B of part III of subchapter A of chapter 61 is amended by adding at the end thereof the following new section: "SEC. 6050. RETURNS RELATING TO CERTAIN TRANSFERS TO EXEMPT ORGANIZATIONS. " (a) GENERAL RULE.—On or before the 90th day after the transfer of income producing property, the transferor shall make a return in compliance with the provisions of subsection (b) if the transferee is known by the transferor to be an organization referred to in section ^n (a) Or (b) and the property (without regard to any lien) has a fair market value in excess of $50,000. "(b) FORM AND CONTENTS OF RETURNS.—The return required by subsection (a) shall be in such form and shall set forth, in respect of the transfer, such information as the Secretary or his delegate prescribes by regulations as necessary for carrying out the provisions of the income tax laws." (2) TECHNICAL AMENDMENT.—The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by adding at the end thereof the following: "Sec. 6050. Returns relating to certain transfers to exempt organizations." (f) RESTRICTION ON EXAMINATION OF CHURCHES.—Section 7605
(relating to time and place of examination) is amended by adding at the end thereof the following new subsection: " (c) RESTRICTION ON EXAMINATION OF CHURCHES.—No examina-
tion of the books of account of a church or convention or association of churches shall be made to determine whether such organization may be engaged in the carrying on of an unrelated trade or business or may be otherwise engaged in activities which may be subject to tax under part III of subchapter F of chapter 1 of this title (sec. 511 and following, relating to taxation of business income of exempt organizations) unless the Secretary or his delegate (such officer being no lower than a principal internal revenue officer for an internal revenue region) believes that such organization may be so engaged and so notifies the organization in advance of the examination. No examination of the religious activities of such an organization shall be made except to the extent necessary to determine whether such organization is a church or a convention or association of churches, and no examination of the books of account of such an organization shall be made other than to the extent necessary to determine the amount of tax imposed by this title."
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