PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-513 "(xv) ELECTIONS.—Any election under this subparagraph (other than clauses (viii) and (ix)) shall be made on or before the date the bonds are issued; and, once made, shall be irrevocable. "(xvi) TIME FOR PAYMENT OF PENALTIES. —Any penalty under this subparagraph shall be paid to the United States not later than 90 days after the period to which the penalty relates." (4) Clause (iv) of section 148(f)(4)(B) is amended to read as follows: " (iv) PAYMENTS OF PRINCIPAL NOT TO AFFECT REQUIRE- MENTS.—For purposes of this subparagraph, payments of principal on the bonds which are part of an issue shall not be treated EIS expended for the governmental purposes of the issue." (5) Subparagraph (D) of section 148(c)(2) is amended— (A) by striking "subsection (f)(4)(B)(iv)(IV)" and inserting "subsection (f)(4)(C)(iv)", and (B) by striking "subsection (f)(4)(B)(iv)(VIII)" and inserting "subsection (f)(4)(C)(v)". (6) Subsection (c) of section 7652 of the 1989 Act is amended by 26 USC 148. striking "Subparagraph (A) of section 148(c)(2)" and inserting "Section 148(c)(2)". (7) In the case of a bond issued before the date of the enact- 26 USC 148 note, ment of this Act, the period for making the election under section 148(f)(4)(C)(viii) of the Internal Revenue Code of 1986 (as added by this subsection) shall not expire before the date which is 180 days after such date of enactment. (8) Section 148(f)(4)(C)(xiii)(II) of such Code (as added by this 26 USC 148 note, subsection) shall apply only to refunding bonds issued after August 3, 1990. (k) AMENDMENT RELATED TO SECTION 7811.— The second sentence of section 403(b)(12)(A) is amended by inserting "involving a onetime irrevocable election" after "similar arrangement". (1) AMENDMENTS RELATED TO SECTION 7815.— (1) Subsection (d) of section 2056 is amended by redesignating the paragraph relating to reformations permitted as paragraph (5). (2) The period during which a proceeding may be commenced 26 USC 2056 under section 2056(d)(5)(A)(ii) of the Internal Revenue Code of "°*®- 1986 (as redesignated by paragraph (1)) shall not expire before the date 6 months after the date of the enactment of this Act. (3) Paragraph (16) of section 7815(d) of the Revenue Reconciliation Act of 1989 is amended by inserting "(or would have been 26 USC 2040 so treated if the donor were a citizen of the United States)" after ^°^- "of such Code". (m) AMENDMENT RELATED TO SECTION 7881.— Paragraph (13) of section 4975(d) is amended by inserting before the semicolon at the end thereof the following: "or which is exempt from section 406 of such Act by reason of section 408(b) of such Act". (n) EFFECTIVE DATE. —Except as otherwise provided in this section, 26 USC 42 note, any amendment made by this section shall take effect as if included in the provision of the Revenue Reconciliation Act of 1989 to which such amendment relates.