SHORT TITLE; ETC.

SEC. 7001. SHORT TITLE; ETC. (a) Short Title.—This title may be cited as the “Revenue Reconciliation Act of 1989”. (b) Amendment of 1986 Code.—Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or 103 STAT. 2302other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of Contents.— TITLE VII— REVENUE MEASURES Sec. 7001. Short title; etc. Subtitle A— Extension of Expiring Tax Provisions Sec. 7101. Employer-provided educational assistance. Sec. 7102. Employer-provided group legal services. Sec. 7103. Extension and modification of targeted jobs credit. Sec. 7104. Extension of qualified mortgage bonds. Sec. 7105. Extension of qualified small issue bonds. Sec. 7106. Extension of energy investment credit for solar, geothermal, and ocean thermal property. Sec. 7107. Extension of special rules for health insurance costs of self-employed individuals. Sec. 7108. Extension and modification of low-income housing credit Sec. 7109. Low-income housing credit exempt from income phaseout of $25,000 exemption from passive loss rules. Sec. 7110. Extension and modification of research credit Sec. 7111. Allocation of research and experimental expenditures. Subtitle B— Corporate Provisions Sec. 7201. Limitation on use of group losses to offset income of subsidiary paying preferred dividends. Sec. 7202. Treatment of certain high yield original issue discount obligations. Sec. 7203. Securities treated as boot under section 351. Sec. 7204. Provisions related to regulated investment companies. Sec. 7205. Limitation on threshold requirement under section 382 built-in gain and loss provisions. Sec. 7206. Distributions on certain preferred stock treated as extraordinary dividends. Sec. 7207. Repeal of election to reduce excess loss account recapture by reducing basis of indebtedness. Sec. 7208. Other provisions relating to treatment of stock and debt; etc. Sec. 7209. Estimated tax payments required for S corporations. Sec. 7210. Limitation on deduction for certain interest paid to related person. Sec. 7211. Limitations on refunds due to net operating loss carrybacks or excess interest allocable to corporate equity reduction transactions. Subtitle C— Employee Benefit Provisions Part I— Employee Stock Ownership Plan Provisions Sec. 7301. Limitations on partial exclusion of interest on loans used to acquire employer securities. Sec. 7302. Limitations on deductions for dividends paid on employer securities. Sec. 7303. 3-year holding period required before section 1042 sale. Sec. 7304. Repeal of certain provisions relating to employee stock ownership plans. Part II— Section 401(h) Accounts Sec. 7311. Limitation on contributions to section 401(h) accounts. Subtitle D— Foreign Provisions Sec. 7401. Taxable year of certain foreign corporations. Sec. 7402. Limitation on use of deconsolidation to avoid foreign tax credit limitations. Sec. 7403. Information with respect to certain foreign-owned corporations. Sec. 7404. Repeal of special treatment of interest on certain foreign loans. Subtitle E— Excise Tax Provisions Sec. 7501. 1-year suspension of automatic reduction in aviation-related taxes. Sec. 7502. Acceleration of deposit requirements for airline ticket tax. Sec. 7503. Increase in international air passenger departure tax. Sec. 7504. Ship passengers international departure tax. Sec. 7505. Oil Spill Liability Trust Fund tax to take effect on January 1, 1990. Sec. 7506. Excise tax on sale of chemicals which deplete the ozone layer and of products containing such chemicals. Sec. 7507. Acceleration of deposit requirements for gasoline excise tax. 103 STAT. 2303 Sec. 7508. Taxation of bulk cigar imports. Subtitle F— Miscellaneous Provisions Part I— Limitation on Nonrecognition for Certain Exchanges Sec. 7601. Like kind exchanges between related persons. Part II— Minimum Tax Provisions Sec. 7611. Simplification of adjusted current earnings preference. Sec. 7612. Other modifications to minimum tax. Part III— Accounting Provisions Sec. 7621. Repeal of completed contract method of accounting for long-term contracts. Sec. 7622. Changes in treatment of transfers of franchises, trademarks, and trade names. Part IV— Employment Tax Provisions Sec. 7631. Treatment of agricultural workers under wage withholding. Sec. 7632. Acceleration of deposit requirements. Part V— Other Provisions Sec. 7641. Limitation on section 104 exclusion. Sec. 7642. Treatment of distributions by partnerships of contributed property. Sec. 7643. Depreciation treatment of cellular telephones. Sec. 7644. Elimination of retroactive certification of employees for work incentive jobs credit. Sec. 7645. Disallowance of depreciation for certain term interests. Sec. 7646. Reporting of points on mortgage loans. Sec. 7647. Treatment of certain investment-oriented life insurance contracts. Part VI— Tax-Exempt Bond Provisions Sec. 7651. Treatment of hedge bonds. Sec. 7652. Exceptions from arbitrage rebate requirement. Subtitle G— Revision of Civil Penalties Sec. 7701. Short title. Part I— Document and Information Return Penalties Sec. 7711. Uniform penalties for failures to comply with certain information reporting requirements. Sec. 7712. Information required with respect to certain foreign corporations. Sec. 7713. Uniform requirements for returns on magnetic media. Sec. 7714. Study of procedures to prevent mismatching. Sec. 7715. Study of service bureaus. Part II— Revision or Accuracy-Related Penalties Sec. 7721. Revision of accuracy-related penalties. Part III— Preparer, Promoter, and Protester Penalties Sec. 7731. Penalty for instituting proceedings before tax court primarily for delay, etc. Sec. 7732 , Modifications to penalties on return preparers for certain understatements. Sec. 7733. Modifications to other assessable penalties with respect to return preparers. Sec. 7734. Modifications to penalty for promoting abusive tax shelters, etc. Sec. 7735. Modifications to penalties for aiding and abetting understatement of tax liability. Sec. 7736. Modification to penalty for frivolous income tax return. Sec. 7737. Authority to counterclaim for balance of penalty in partial refund suite. Sec. 7738. Repeal of bonding requirement under section 7407. Sec. 7739. Certain disclosures of information by preparers permitted. Part IV— Failures To File or Pay Sec. 7741. Increase in penalty for fraudulent failure to file. Sec. 7742. Failure to make deposit of taxes. Sec. 7743. Effect of payment of tax by recipient on certain penalties. 103 STAT. 2304 Subtitle H— Technical Corrections Sec. 7801. Definitions; coordination with other subtitles. Part I— Amendments Related to Technical and Miscellaneous Revenue Act or 1988 Sec. 7811. Amendments related to title I of the 1988 Act Sec. 7812. Amendments related to title II of the 1988 Act Sec. 7813. Amendments related to title III of the 1988 Act Sec. 7814. Amendments related to title IV of the 1988 Act Sec. 7815. Amendments related to title V of the 1988 Act Sec. 7816. Amendments related to title VI of the 1988 Act Sec. 7817. Effective date. Part II— Amendments Related to Revenue Act of 1987 Sec. 7821. Amendments related to subtitle B. Sec. 7822. Amendments related to subtitle C and following subtitles. Sec. 7823. Effective date. Part III— Amendments Related to Tax Reform Act or 1986 Sec. 7831. Amendments related to Tax Reform Act of 1986. Part IV— Miscellaneous Changes Sec. 7841. Miscellaneous changes. Part V— Amendments Related to Pension Provisions Sec. 7851. Definitions. subpart a— amendments related to tax reform act of 1986 Sec. 7861. Amendments related to title XI of the Reform Act. Sec. 7862. Amendments related to title X VIII of the Reform Act Sec. 7863. Effective date. subpart b— amendments related to omnibus budget reconciliation act of 1986 Sec. 7871. Amendments related to Omnibus Budget Reconciliation Act of 1986. subpart c— amendments related to pension protection act Sec. 7881. Amendments related to Pension Protection Act Sec. 7882. Effective date. subpart d— additional pension provisions Sec. 7891. Amendments relating to the Tax Reform Act of 1986. Sec. 7892. Amendments relating to the Pension Protection Act Sec. 7893. Amendments relating to the Single-Employer Pension Plan Amendments Act of 1986 Sec. 7894. Other amendments to ERISA.