PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1637
ments of subsection (a)(2) with respect to such domestic corporation, and " (B) subsection (a) applies to the proceeds of the sale or exchange and also applied to all transactions described i n subsection (e)(1) which took place during the period or periods referred to in subparagraph (A). " (4) APPLICATION TO CASES DESCRIBED I N suBSECTioisr (e).—To
the extent that earnings and profits are taken into account under this subsection, they shall be excluded and not taken into account for purposes of subsection (e). ". (2) INTEREST I N PARTNERSHIP HOLDING STOCK I N CERTAIN FOR-
EIGN CORPORATIONS.—The last sentence of section 751(c) (relating 26 USC 751. to unrealized receivables) is amended— (A) by striking out " ( a s defined in section 1245(a)(3)), " and inserting in lieu thereof " a s defined in section 1245(a) (3)), stock in certain foreign corporations (as described i n section 1248)," and (B) by striking o u t " 1 2 4 5 (a), " and inserting in lieu thereof "1245(a), 1248(a),". (3) CONFORMING AMENDMENTS.—
(A) Subparagraph (A) of paragraph (2) of subsection (c) of section 1248 is amended by striking out "subsection (a) ^6 USC 1248. applies to a sale o r exchange" and inserting i n lieu thereof "subsection (a) or (f) applies to a sale, exchange, o r distribution". (B) Subparagraph (A) of paragraph (3) of subsection (g) (as redesignated by paragraph (1) of this subsection) of section 1248 is amended to read as follows: " (A) a dividend (other than an amount treated as a dividend under subsection (f)), ". (C) Subsection (h) (as redesignated by paragraph (1) of this subsection) of section 1248 is amended by striking o u t "subsection (a) " each place i t appears and inserting i n lieu thereof "subsection (a) or (f) ". (d) DECLARATORY J U D G M E N T PROCEDURE FOR R E VI E W B T THE T A X COURT o r SECTION 367 DETERMINATION S. — Ante, p. 1634.
(1) IN GENERAL.—Part IV of subchapter C of chapter 76 (relati n g to declaratory judgments) is amended by a d d i n g a t the end thereof the following new section: "SEC. 7477. DECLARATORY JUDGMENTS RELATING TO TRANSFERS OF 26 USC 7477. PROPERTY FROM THE UNITED STATES. " (a) CREATION o r R E M E D Y. —
" (1) IN GENERAL.—In a case of actual controversy involving— " (A) a determination by the Secretary— " (i) that an exchange described in section 367(a)(1) is in pursuance of a plan h a v i n g as one of its principal purposes the avoidance of Federal income taxes, o r " ( i i) of the terms and conditions pursuant to which an exchange described in section 367(a)(1) will be determined not to be i n pursuance of a plan having as one of its principal purposes the avoidance of Federal income taxes, or " (B) a failure by the Secretary to make a determination as to whether an exchange described in section 367(a)(1) is in pursuance of a plan having as one of i ts principal purposes the avoidance of Federal income taxes,
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