76 STAT. ]
PUBLIC LAW 87-403-FEB. 2, 1962
I
" (C) fixes the period of time within which the distributing corporation must divest itself of all stock to be disposed of by it by reason of the suit, and such period expires not later than 3 years from the date on which such order becomes final (appeal time having run or appeal having been completed); and "(2) the court finds— " (A) that the divestiture of such stock, in the manner described in paragraph (1)(A), is necessary or appropriate to effectuate the policies of the Sherman Act, or the Clayton Act, or both; is use i-?, 12" (B) that the application of subsection (a) is required to 27reach an equitable antitrust order in such suit or proceeding; and " (C) that the period of time for the complete divestiture fixed in the order is the shortest period within which such divestiture can be executed with due regard to the circumstances of the particular case; but no stock shall be divested stock if the court finds that its divestiture is required because of an intentional violation of the Sherman Act, or the Clayton Act, or both." (b) The table of parts for subchapter O of chapter 1 of the Internal Revenue Code of 1954 is amended by adding at the end thereof the following: "Part IX. Distributions pursuant to orders enforcing the antitrust laws."
(c) The amendments made by this section shall apply only with respect to distributions made after the date of the enactment of this Act. SEC. 2. (a) Section 301 of the Internal Revenue Code of 1954 (relating to distributions of property) is amended by redesignating subsection (f) as subsection (g) and inserting after subsection (e) the following new subsection:
Effective date, 26 USC 301.
" (f) SPECIAL RULES FOR DISTRIBUTIONS OF ANTITRUST STOCK TO CORPORATIONS.— "(1) DEFINITION OF ANTITRUST STOCK.—For purposes of this
subsection, the term 'antitrust stock' means stock received, by a ••Antitrust corporation which is a party to a suit described in section 1111(d) ^*^'^ie!p. 4. (relating to definition of antitrust order), in a distribution made after September 6, 1961, either pursuant to the terms of, or in anticipation of, an antitrust order (as defined in subsection (d) of section 1111). "(2) AMOUNT DISTRIBUTED.—Notwithstanding subsection (b)(1) (but subject to subsection (b)(2)), for purposes of this section the amount of a distribution of antitrust stock received by a corporation shall be the fair market value of such stock. "(3) BASIS.—Notwithstanding subsection (d), the basis of antitrust stock received by a corporation in a distribution to which subsection (a) applies shall be the fair market value of such stock decreased by so much of the deduction for dividends received under the provisions of section 243, 244, or 245 as is, 26 USC 243-245 under regulations prescribed by the Secretary or his delegate, attributable to the excess, if any, of— " (A) the fair market value of the stock, over " (B) the adjusted basis (in the hands of the distributing corporation immediately before the distribution) of the stock, increased by the amount of gain which is recognized to the distributing corporation by reason of the distribution."
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