PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3601
(4)(A) Paragraph (2) of section 75190)) of the 1986 Code is amended to read as follows: "(2) the net required payment balance." (B) Subsection (e) of section 7519 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(4) NET REQUIRED PAYMENT BALANCE.—The term 'net required payment balance' means the excess (if any) of— "(A) the aggr^ate of the required payments under this section for all preceding applicable election years, over "(B) the aggr^ate amount allowable as a refund to the entity under subsection (c) for all preceding applicable election years." (5) Subsection (c) of section 7519 of the 1986 Code is amended to read as follows: "(c) REFUND OF PAYBCENTS.—
"(1) IN GENERAL.—If, for any applicable election year, the amount determined under subsection (b)(2) exceeds the amount determined under subsection (b)(l), the entity shall be entitled to a refund of such excess for such year. "(2) TERMINATION OF ELECTIONS, ETC.—If^
"(A) an election under section 444 is terminated effective with respect to any year, or "(B) the entity is liquidated during any year, the entity shall be entitled to a refund of the net required payment balance. "(3) DATE ON WHICH REFUND PAYABLE.—Any refund under this subsection shall be payable on later of— "(A) April 15 of the calendar year following— "(i) in the case of the year referred to in paragraph (1), the calendar year in which it b ^ n s, "(ii) in the case of the year referred to in paragraph (2), the calendar year in which it ends, or "(B) the day 90 days after the day on which claim therefor is filed with the Secretary." (6) Subsection (g) of section 7519 of the 1986 Code is amended by striking out "including r^ulations" and all that follows down through the period at the end thereof and inserting in lieu thereof "including regulations providing for appropriate adjustments in the application of this section and sections 280H and 444 in cases where— "(1) 2 or more applicable election years b ^ ^ in the same calendar year, or "(2) the base year is a taxable year of less than 12 months." (7) Subparagraph (B) of section 7519(d)(2) of the 1986 Code is amended by inserting before the period at the end thereof the following: "(and such corporation shall be treated as an S corporation for such taxable year for purposes of paragraph
(3))r
(8) Subsection (d) of section 7519 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(5) TREATMENT OF GUARANTEED PAYMENTS.—
"(A) IN GENERAL.—Any guaranteed payment by a partnership shall not be treated as an applicable payment, and the amount of the net income of the partnership shall be determined by not taking such guaranteed payment into account.
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