AMENDMENTS RELATED TO TITLE VI OF THE 1988 ACT.

SEC. 7816. AMENDMENTS RELATED TO TITLE VI OF THE 1988 ACT. (a) Amendment Related to Section 6003 of the 1988 Act.—Paragraph (2) of section 274(n) is amended— (1) by striking so much of such paragraph as follows subparagraph (D) and precedes subparagraph (F) and inserting the following: “(E) in the case of an employer who pays or reimburses moving expenses of an employee, such expenses are includible in the income of the employee under section 82, or”, and (2) by adding at the end the following new sentence: “In the case of the employee, the exception of subparagraph (A) shall not apply to expenses described in subparagraph (E).” (b) Amendment Related to Section 6006 of the 1988 Act.—Subparagraph (A) of section l(i)(7) is amended by inserting “(other than for purposes of this paragraph)” after “shall be treated”. (c) Amendments Related to ¡Section 6009 of the 1988 Act.— (1) Paragraph (2) of section 6009(c) of the 1988 Act is amended by striking “Clause (i)” and inserting “Clause (ii)”. (2) Paragraph (1) of section 135(d) is amended by striking “subsection (a) respect to” and inserting “subsection (a) with respect to”. (d) Amendments Related to Section 6026 of the 1988 Act.— (1) Subparagraph (D) of section 263A(h)(3) is amended to read as follows: “(D) Treatment of certain corporations.— “(i) In general.—If— “(I) substantially all of the stock of a corporation is owned by a qualified employee-owner and members of his family (as defined in section 267(c)(4)), and “(II) the principal activity of such corporation is performance of personal services directly related to 103 STAT. 2421the activities of the qualified employee-owner and such services are substantially performed by the qualified employee-owner, this subsection shall apply to any expense of such corporation which directly relates to the activities of such employee-owner in the same manner as if such expense were incurred by such employee-owner. “(ii) Qualified employee-owner.—For purposes of this subparagraph, the term ‘qualified employee-owner’ means any individual who is an employee-owner of the corporation (as defined in section 269A(b)(2)) and who is a writer, photographer, or artist.” (2) Subparagraph (B) of section 6026(d)(2) of the 1988 Act is amended by striking “the taxpayer made” and inserting “a taxpayer engaged in a farming business involving the production of animals having a preproductive period of more than 2 years made”. (e) Amendments Related to Section 6028 of the 1988 Act.— (1) Paragraph (5) of section 168(b) is amended by striking “paragraph (2)(B)” and inserting “paragraph (2)(C)”. (2) Paragraph (2) of section 168(c) is amended by striking “subsection (b)(2)(B)” and inserting “subsection (b)(2)(C)”. (f) Amendment Related to Section 6029 of the 1988 Act.—The subparagraph (D) of section 168(b)(3) added by section 6029 of the 1988 Act is redesignated as subparagraph (E). (g) Amendment Related to Section 6033 of the 1988 Act.—Subsection (b) of section 6033 of the 1988 Act is amended by striking “paragraph (1)” and inserting “subsection (a)”. (h) Amendment Related to Section 6054 of the 1988 Act.—Paragraph (1) of section 6054(b) of the 1988 Act is amended by striking “subsection apply” and inserting “section shall apply”. (i) Amendment Related to Section 6061 of the 1988 Act.—Section 6061 of the 1988 Act is amended— (1) by striking “section 111B(h)(5)(A)” and inserting “section 1011B(h)(5)(A)”, and (2) by striking “section 1118(h)” and inserting “section 1011B(h)”. (j) Amendment Related to Section 6064 of the 1988 Act.—Paragraph (13) of section 457(e) is amended to read as follows: “(13) Special rule for churches.—The term ‘eligible employer’ shall not include a church (as defined in section 3121(w)(3)(A)) or qualified church-controlled organization (as defined in section 3121(w)(3)(B)).” (k) Amendment Related to Section 6067 of the 1988 Act.—Subsection (c) of section 6067 of the 1988 Act is amended by striking “section 205(c)” and inserting “section 2005(c)”. (l) Amendment Related to Section 6071 of the 1988 Act.—Paragraph (2) of section 6071(b) of the 1988 Act is amended by striking “electric plan” and inserting “electric cooperative plan”. (m) Provision Related to Section 6076 of the 1988 Act.—If, for the 1st taxable year beginning on or after January 1, 1987, a qualified group self-insurers’ fund changes its treatment of policyholder dividends to take into account such dividends no earlier than the date that the State regulatory authority determines the amount of the policyholder dividend that may be paid, then such change shall be treated as a change in a method of accounting and no adjustment under section 481(a) of the Internal Revenue Code of 103 STAT. 24221986 shall be made with respect to such change in method of accounting. (n) Amendments Related to Section 6077 of the 1988 Act.— (1) Paragraph (1) of section 847 is amended— (A) by striking “separate estimated tax” and inserting “special estimated tax”, and (B) by striking “after December 31, 1986” and inserting “in taxable years beginning after December 31, 1986”. (2) The first sentence of section 847(2) is amended to read as follows: “The deduction under paragraph (1) shall be allowed only to the extent that such deduction would result in a tax benefit for the taxable year for which such deduction is allowed or any carryback year and only to the extent that special estimated tax payments are made in an amount equal to the tax benefit attributable to such deduction on or before the due date (determined without regard to extensions) for filing the return for the taxable year for which the deduction is allowed.” (3) Paragraph (5) of section 847 is amended by adding at the end the following new sentence: “To the extent that any amount added to the special loss discount account is not subtracted from such account before the 15th year after the year for which the amount was so added, such amount shall be subtracted from such account for such 15th year and included in gross income for such 15th year.” (4) Paragraph (9) of section 847 is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following new subparagraph: “(C) providing for the application of this section in cases where the deduction allowed under paragraph (1) for any taxable year is less than the excess referred to in paragraph (1) for such year.” (5) Section 847 (as amended by paragraph (4)) is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph: “(9) Effect on earnings and profits.— In determining the earnings and profits— “(A) any special estimated tax payment made for any taxable year shall be treated as a payment of income tax imposed by this title for such taxable year, and “(B) any deduction or inclusion under this section shall not be taken into account. Nothing in the preceding sentence shall be construed to affect the application of section 56(g) (relating to adjustments based on adjusted current earnings).” (6) Paragraph (8) of section 847 is amended by adding at the end the following new sentence: “The limitations on consolidation contained in section 1503(c) shall not apply to the deduction allowed under paragraph (1).” (o) Amendments Related to Section 6105 of the 1988 Act.— (1) The subsection (c) of section 5276 added by section 6105 of the 1988 Act is amended— (A) by striking “(c) Exemption” and inserting “(d) Exception”, (B) by striking “section 5271(a)(2)” in paragraph (1) and inserting “section 5271”, and 103 STAT. 2423 (C) by striking “specially denatured distilled spirits” in paragraph (2) and inserting “distilled spirits free of tax”. (2) Subsection (a) of section 5276 is amended by striking “Except as provided in subsection (c),” and inserting “Except as otherwise provided in this section,”. (p) Amendment Related to Section 6135 or the 1988 Act.—Paragraph (3) of section 953(d) is amended by striking “(as defined in section 1503(d))” and inserting “for purposes of section 1503(d) without regard to paragraph (2)(B) thereof”. (q) Amendment Related to Section 6152 of the 1988 Act.—Subparagraph (C) of section 2056(b)(7) is amended by striking “an annuity” and inserting “an annuity included in the gross estate of the decedent under section 2039”. (r) Amendment Related to Section 6177 of the 1988 Act.—Subclause (III) of section 148(f)(4)(B)(iii) is amended by striking “such date of issuance, or the date” and inserting “such date of issuance or the date”. (s) Amendments Related to Section 6180 of the 1988 Act.— (1) Paragraph (1) of section 142(i) is amended by inserting “In general.—” after “(1)”. (2) The paragraph (3) of section 146(g) added by section 6180 of the 1988 Act is redesignated as paragraph (4). (3) Paragraph (3) of section 147(c) is amended by inserting a comma after “mass commuting facility” each place it appears. (t) Amendments Related to Section 6183 of the 1988 Act.—Subclause (II) of section 148(f)(4)(C)(ii) is amended by striking “on behalf of” and inserting “to make loans to”. (u) Amendments Related to Section 6228 of the 1988 Act.— (1) The section 7520 added by section 6228 of the 1988 Act is redesignated as section 7521. (2) The table of sections for chapter 77 is amended by striking the item added by section 6228 of the 1988 Act and inserting the following: “Sec. 7521. Procedures involving taxpayer interviews.” (v) Amendments Related to Section 6242 of the 1988 Act.— (1) The section 6712 added by section 6242 of the 1988 Act is redesignated as section 6713. (2) The table of sections for part I of subchapter B of chapter 68 is amended by striking the item added by section 6242 of the 1988 Act and inserting the following: “Sec. 6713. Disclosure or use of information by preparers of returns.” (w) Amendment Related to Section 6253 of the 1988 Act.—Section 6253 of the 1988 Act is amended by inserting “, as amended by title I of this Act,” after “1986 Code”.