Page:United States Statutes at Large Volume 124.djvu/133

124 STAT. 107 PUBLIC LAW 111–147—MAR. 18, 2010 SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO REGISTERED BOND REQUIREMENTS. (a) REPEAL OF EXCEPTION TO DENIAL OF DEDUCTION FOR INTEREST ON NON-REGISTERED BONDS.— (1) IN GENERAL.—Paragraph (2) of section 163(f) is amended by striking subparagraph (B) and by redesignating subpara- graph (C) as subparagraph (B). (2) CONFORMING AMENDMENTS.— (A) Paragraph (2) of section 149(a) is amended by inserting ‘‘or’’ at the end of subparagraph (A), by striking ‘‘, or’’ at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C). (B) Subparagraph (A) of section 163(f)(2) is amended by inserting ‘‘or’’ at the end of clause (ii), by striking ‘‘, or’’ at the end of clause (iii) and inserting a period, and by striking clause (iv). (C) Subparagraph (B) of section 163(f)(2), as redesig- nated by paragraph (1), is amended— (i) by striking ‘‘, and subparagraph (B),’’ in the matter preceding clause (i), and (ii) by amending clause (i) to read as follows: ‘‘(i) such obligation is of a type which the Secretary has determined by regulations to be used frequently in avoiding Federal taxes, and’’. (D) Sections 165(j)(2)(A) and 1287(b)(1) are each amended by striking ‘‘except that clause (iv) of subpara- graph (A), and subparagraph (B), of such section shall not apply’’. (b) REPEAL OF TREATMENT AS PORTFOLIO DEBT.— (1) IN GENERAL.—Paragraph (2) of section 871(h) is amended to read as follows: ‘‘(2) PORTFOLIO INTEREST.—For purposes of this subsection, the term ‘portfolio interest’ means any interest (including original issue discount) which— ‘‘(A) would be subject to tax under subsection (a) but for this subsection, and ‘‘(B) is paid on an obligation— ‘‘(i) which is in registered form, and ‘‘(ii) with respect to which— ‘‘(I) the United States person who would other- wise be required to deduct and withhold tax from such interest under section 1441(a) receives a statement (which meets the requirements of para- graph (5)) that the beneficial owner of the obliga- tion is not a United States person, or ‘‘(II) the Secretary has determined that such a statement is not required in order to carry out the purposes of this subsection.’’. (2) CONFORMING AMENDMENTS.— (A) Section 871(h)(3)(A) is amended by striking ‘‘subparagraph (A) or (B) of’’. (B) Paragraph (2) of section 881(c) is amended to read as follows: ‘‘(2) PORTFOLIO INTEREST.—For purposes of this subsection, the term ‘portfolio interest’ means any interest (including original issue discount) which— 26 USC 163.