Page:United States Statutes at Large Volume 85.djvu/581

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[85 STAT. 551]
[85 STAT. 551]
PUBLIC LAW 92-000—MMMM. DD, 1971

85 STAT. ]

PUBLIC LAW 92-178-DEC. 10, 1971

" (B) keep such records, as may be required by regulations prescribed by the Secretary or his delegate. "(2) RETURNS.—A D I S C shall file for the taxable year such returns as may be prescribed by the Secretary or his delegate by forms or regulations." (b) RETURNS or CORPORATIONS.—Section 6072(b) (relating to returns of corporations) is amended by adding at the end thereof the following: "Returns required for a taxable year by section 6011(e)(2) (relating to returns of a D I S C) shall be filedon or before the fifteenth clay of the ninth month following the close of the taxable year."

  • (c) CERTAIN INCOME TAX RETURNS OF DISC.—Section 6501(g)

(relating to certain income tax returns of corporations) is amended by adding at the end thereof the following new paragraph: " (3) DISC.—If a corporation determines in good faith that it is a D I S C (as defined in section 992(a)) and files a return as such under section 6011(e)(2) and if such corporation is thereafter held to be a corporation which is not a D I S C for the taxable year for which the return is filed, such return shall be deemed the return of a corporation which is not a D I S C for purposes of this section." (d) FAILURE OF D I S C To F I L E RETURNS.—Subchapter B of chapter 68 (relating; to assessable penalties) is amended by addins: at the end thereof the following new section:

  • SEC. 6686. FAILURE OF DISC TO FILE RETURNS.

" I n addition to the penalty imposed by section 7203 (relating to wailful failure to file return, supply information, or pay tax) any person required to supply information or to file a return under section 6011(e) who fails to supply such information or file such return at the time prescribed by the Secretary or his delegate, or who files a return which does not show the information required, shall pay a penalty of $100 for each failure to supply information (but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $25,000) or a penalty of $1,000 for each failure to file a return, unless it is shown that such failure is due to reasonable cause." SEC. 505. EXPORT TRADE CORPORATIONS. (a) U S E OF TERMS.—Except as otherwise expressly provided, whenever in this section a reference is made to a section, chapter, or other provision, the reference shall be considered to be made to a section, chapter, or other provision of the Internal Revenue Code of 1954, and terms used in this section shall have the same meaning as when used in such Code. (b) TRANSFER TO A D I S C OF ASSETS OF EXPORT TRADE CORPORA-

551

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TION.—

(1) IN GENERAL.—If a corporation (hereinafter in this section called "parent") owns all of the outstanding stock of an export trade corporation (as defined in section 971), and the export trade corporation, during a taxable year beginning before January 1, 1976, transfers property, without receiving consideration, to a D I S C (as defined in section 992(a)) all of whose outstanding stock is owned by the parent, and if the amount transferred by the export.trade corporation is not less than the amount of its untaxed subpart F income (as defined in paragraph (2) of this subsection) at the time of such transfer, then— (A) notwithstanding section 367 or any other provision of chapter 1, no gain or loss to the export trade corporation, the parent, or the D I S C shall be recognized by reason of such transfer;

Post, p. 553.

^'^ Stat. 2065,,