Page:United States Statutes at Large Volume 110 Part 3.djvu/114

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no STAT. 1844 PUBLIC LAW 104-188—AUG. 20, 1996 held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph. (B) EXEMPT FUEL. —For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4). (C) CONTROLLED GROUPS.— For purposes of this paragraph— (i) CORPORATIONS. — (I) IN GENERAL. —All persons treated as a controlled group shall be treated as 1 person. (II) CONTROLLED GROUP.— The term "controlled group" has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase "more than 50 percent" shall be substituted for the phrase "at least 80 percent" each place it appears in such subsection. (ii) NONINCORPORATED PERSONS UNDER COMMON CONTROL.— Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. (6) OTHER LAW APPLICABLE.—^AU provisions of law, including penalties, applicable with respect to the taxes imposed by section 4091 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4091. 26 USC 4041 (i) EFFECTIVE DATE. —The amendments made by this section note. shall take effect on the 7th calendar day after the date of the enactment of this Act, except that the amendments made by subsection (b) shall not apply to any amount paid before such date. SEC. 1610. BASIS ADJUSTMENT TO PROPERTY HELD BY CORPORA- TION WHERE STOCK IN CORPORATION IS REPLACEMENT PROPERTY UNDER INVOLUNTARY CONVERSION RULES. (a) IN GENERAL.—Subsection (b) of section 1033 is amended to read as follows: " (b) BASIS OF PROPERTY ACQUIRED THROUGH INVOLUNTARY CONVERSION.— "(1) CONVERSIONS DESCRIBED IN SUBSECTION (a)(1).— I f the property was acquired as the result of a compulsory or involuntary conversion described in subsection (a)(1), the basis shall be the same as in the case of the property so converted— "(A) decreased in the amount of any money received by the taxpayer which was not expended in accordance with the provisions of law (applicable to the year in which such conversion was made) determining the taxable status of the gain or loss upon such conversion, and "(B) increased in the amount of gain or decreased in the amount of loss to the taxpayer recognized upon