12 2 STA T . 1 647PUBLIC LA W 11 0– 24 5—J U NE 17 , 200 8(f)CLERICA L AM E ND MEN T.—Thetabl e o f s e c t i o n sfo r s u b p art A of part I I of subchapter N of chapter 1 isa m en d edb y insertin g after the item relating to section 87 7 the follo w ing new item
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‘ Sec.87 7 A . Taxr e spon s ib i l i t ies o f expatriation. ’ ’. (g) EF FECTI V E D ATE.— (1) IN G ENERAL.—E x cept as pro v ided in this subsection , the amendments made by this section shall apply to any indi - vidual whose expatriation date (as so defined) is on or after the date of the enactment of this Act. ( 2 ) G IFT S AND B E QU ESTS.—Chapter 1 5 of the Internal R ev- enue Code of 1 9 8 6 (as added by subsection (b)) shall apply to covered gifts and be q uests (as defined in section 28 0 1of such Code, as so added) received on or after the date of the enactment of this Act from transferors (or from the estates of transferors) whose expatriation date is on or after such date of enactment. SEC.302 .CE RTAINDOM ESTICA L L Y CONTROLLED F OREI G N P ERSONS PERFORMING SER V ICES U NDER CONTRACT W IT H UNITED STATES GOVERNMENT TREATED AS AMERICAN EMPLOYERS. (a) F ICA TA X ES.— S ection 3 121 (relating to definitions) is amended by adding at the end the following new subsection: ‘ ‘( z ) TREATMENT O F CERTAIN FOREIGN P ERSONS AS AMERICAN EM P LO Y ERS.— ‘‘(1) IN GENERAL.—If any employee of a foreign person is performing services in connection with a contract between the U nited States Government (or any instrumentality thereof) and any member of any domestically controlled group of entities which includes such foreign person, such foreign person shall be treated for purposes of this chapter as an American employer with respect to such services performed by such employee. ‘‘(2) DOMESTICALLY CONTROLLED GROUP OF ENTITIES.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘domestically controlled group of entities ’ means a controlled group of entities the common parent of which is a domestic corporation. ‘‘( B ) CONTROLLED GROUP OF ENTITIES.—The term ‘con- trolled group of entities’ means a controlled group of cor- porations as defined in section 1563(a)(1), except that— ‘‘(i) ‘more than 50 percent’ shall be substituted for ‘at least 80 percent’ each place it appears therein, and ‘‘(ii) the determination shall be made without regard to subsections (a)( 4 ) and (b)(2) of section 1563. A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence). ‘‘(3) L IABILITY OF COMMON PARENT.—In the case of a foreign person who is a member of any domestically controlled group of entities, the common parent of such group shall be j ointly and severally liable for any tax under this chapter for which such foreign person is liable by reason of this subsection, and 26USC31 21 .Ap p licab ili ty . 26USC2 80 1 no t e .
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