AMENDMENTS RELATED TO TITLE XV OF THE REFORM ACT.

SEC 1015. AMENDMENTS RELATED TO TITLE XV OF THE REFORM ACT. (a) Amendment Related to Section 1501 of the Reform Act.—Subparagraph (B) of section 6724(d)(2) of the 1986 Code is amended by striking out “6031(b)” and inserting in lieu thereof “6031(b) or (c)”. (b) Amendments Related to Section 1503 of the Reform Act.— (1) Subparagraph (A) of section 6013(b)(5) of the 1986 Code is amended to read as follows: “(A) Coordination with section 6653.—For purposes of section 6653, where the sum of the amounts shown as tax on the separate returns of each spouse is less than the amount shown as tax on the joint return made under this subsection— 102 STAT. 3569 “(i) such sum shall be treated as the amount shown on the joint return, “(ii) any negligence (or disregard of rules or regulations) on either separate return shall be treated as negligence (or such disregard) on the joint return, and “(iii) any fraud on either separate return shall be treated as fraud on the joint return.” (2) (A) Paragraph (1) of section 6653(a) of the 1986 Code is amended to read as follows: “(1) In general.—If any part of any underpayment (as defined in subsection (c)) of tax required to be shown on a return is due to negligence (or disregard of rules or regulations), there shall be added to the tax an amount equal to 5 percent of the underpayment.” (B) Paragraph (1) of section 6653(b) of the 1986 Code is amended to read as follows: “(1) In general.— If any part of any underpayment (as defined in subsection (c)) of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 75 percent of the portion of the underpayment which is attributable to fraud.” (C) Paragraph (2) of section 6601(e) of the 1986 Code is amended by striking out “6659” each place it appears and inserting in lieu thereof “6653,6659”. (3) Subsection (g) of section 6653 of the 1986 Code is amended by adding at the end thereof the following new sentence: “If any penalty is imposed under subsection (a) by reason of the preceding sentence, only the portion of the underpayment which is attributable to the failure described in the preceding sentence shall be taken into account in determining the amount of the penalty under subsection (a).” (4) The amendments made by this subsection (other than paragraph (3)) shall apply to returns the due date for which (determined without regard to extensions) is after December 31, 1988. (c) Amendment Related to Section 1504 of the Reform Act.—The repeal made by section 8002(c) of the Omnibus Budget Reconciliation Act of 1986 shall take effect as if the Tax Reform Act of 1986 had been enacted on the day before the date of the enactment of the Omnibus Budget Reconciliation Act of 1986. (d) Amendments Related to Section 1511 of the Reform Act.—Section 6621 of the 1986 Code is amended— (1) by striking out “short-term Federal rate” each place it appears in subsections (a) and (b)(1) and inserting in lieu thereof “Federal short-term rate”, and (2) by striking out “Short-Term Federal Rate” in the heading of subsection (b) and inserting in lieu thereof “Federal Short-Term Rate”. (e) Amendments Related to Section 1521 of the Reform Act.— (1) (A) Paragraph (1) of section 6045(c) of the 1986 Code is amended by adding at the end thereof the following new sentence: “A person shall not be treated as a broker with respect to activities consisting of managing a farm on behalf of another person.” 102 STAT. 3570 (B) The amendment made by subparagraph (A) shall take effect as if included in the amendments made by section 311(a)(1) of the Tax Equity and Fiscal Responsibility Act of 1982. (2) (A) Subsection (e) of section 6045 of the 1986 Code is amended by adding at the end thereof the following new paragraph: “(3) Prohibition of separate charge for filing return.—It shall be unlawful for any real estate reporting person to separately charge any customer for complying with any requirement of paragraph (1).” (B) The amendment made by subparagraph (A) shall take effect on the date of the enactment of this Act. (3) Subsection (e) of section 6045 of the 1986 Code is amended— (A) by striking out “real estate broker” each place it appears in the text and inserting in lieu thereof “real estate reporting person”, and (B) by striking out “Real estate broker” in the heading of paragraph (2) and inserting in lieu thereof “Real estate reporting person”. (f) Amendment Related to Section 1522 of the Reform Act.—Section 6050M of the 1986 Code is amended by adding at the end thereof the following new subsection: “(e) Exception for Certain Classified or Confidential Contracts.— “(1) In general.—Except as provided in paragraph (2), this section shall not apply in the case of a contract described in paragraph (3). “(2) Reporting requirement.— Each Federal executive agency which has entered into a contract described in paragraph (3) shall, upon a request of the Secretary which identifies a particular person, acknowledge whether such person has entered into such a contract with such agency and, if so, provide to the Secretary— “(A) the information required under this section with respect to such person, and “(B) such other information with respect to such person which the Secretary and the head of such Federal executive agency agree is appropriate. “(3) Description of contract.— For purposes of this subsection, a contract between a Federal executive agency and an-other person is described in this paragraph if— “(A) the fact of the existence of such contract or the subject matter of such contract has been designated and clearly marked or clearly represented, pursuant to the provisions of Federal law or an Executive order, as requiring a specific degree of protection against unauthorized disclosure for reasons of national security, or “(B) the head of such Federal executive agency (or his designee) pursuant to regulations issued by such agency determines, in writing, that filing the required return under this section would interfere with the effective con-duct of a confidential law enforcement or foreign counter-intelligence activity.” (g) Amendments Related to Section 1523 of the Reform Act.—Section 6676 of the 1986 Code is amended— (1) by striking out “6049, or 6050N” in subsection (a)(3) and inserting in lieu thereof “or 6049”, 102 STAT. 3571 (2) by striking out “6049, or 6050N” in subsection (b)(1)(A) and inserting in lieu thereof “or 6049”, and (3) by striking out “, Dividends, and Royalties” in the heading for subsection (b) and inserting in lieu thereof “and Dividend”. (h) Amendments Related to Section 1542 of the Reform Act.—Subsection (h) of section 6154 of the 1986 Code (as in effect before its repeal by the Revenue Act of 1987) is amended— (1) by striking out “subject to the tax imposed by section 4940” in paragraph (1), (2) by amending paragraph (2) to read us follows: “(2) any tax imposed by section 511, and any tax imposed by section 1 or 4940 on a private foundation, shall be treated as a tax imposed by section 11, and”, and (3) by adding at the end thereof the following new sentence: “In the case of an organization described in paragraph (1), subsection (c) of section 6655 shall be applied by substituting ‘5th month’ for ‘third month’ and subsection (d)(3)(A) of section 6655 shall be applied by substituting ‘2 months’ for ‘3 months’ in clause (i), by substituting ‘4 months’ for ‘5 months, in clause (ii), by substituting ‘7 months’ for ‘8 months’ in clause (iii), and by substituting to months’ for ‘11 months’ in clause (iv).” (i) Amendment Related to Section 1551 of the Reform Act.—Clause (iii) of section 7430(c)(2)(A) of the 1986 Code is amended to read as follows: “(iii) meets the requirements of the 1st sentence of section 2412(d)(1)(B) of title 28, United States Code (as in effect on October 22, 1986) and meets the requirements of section 2412(d)(2)(B) of such title 28 (as so in effect).” (j) Provision Related to Section 1556 of the Reform Act.—To the extent the salary recommendations submitted by the President on January 5, 1987, are inconsistent with the provisions of section 7443A(d)(1) of the 1986 Code, such recommendations shall not be effective for any period. (k) Amendment Related to Section 1557 of the Reform Act.— (1) Subsection (d) of section 7447 of the 1986 Code is amended by adding at the end thereof the following new sentence: “In computing the rate of the retired pay under paragraph (1) of this subsection for any individual who is entitled thereto, any period during which such individual performs services under subsection (c) on a substantially full-time basis shall be treated as a period during which he has served as a judge.” (2) The amendment made by paragraph (1) shall apply for purposes of determining the amount of retired pay for months beginning after the date of the enactment of this Act regardless of when the services under section 7447(c) of the 1986 Code were performed. (l) Subsection (d) of section 7447 of the 1986 Code is amended by adding at the end thereof the following new sentence: “In computing the rate of the retired pay under paragraph (1) of this subsection for any individual who is entitled thereto, any period during which such individual performs services under subsection (c) on a substantially full-time basis shall be treated as a period during which he has served as a judge.” (m) The amendment made by paragraph (1) shall apply for purposes of determining the amount of retired pay for months beginning after the date of the enactment of this Act regardless of when the services under section 7447(c) of the 1986 Code were performed. (l) Amendments Related to Section 1561 of the Reform Act.— (1) Subsection (e)(2) of section 7609 of the 1986 Code is amended— (A) by inserting “or the summoned party’s response to a summons described in subsection (f),” after “the summons described in subsection (c),”, and (B) by striking out “the summons is issued other” and inserting in lieu thereof “the summons is issued”. 102 STAT. 3572 (2) Subsection (i) of section 7609 of the 1986 Code is amended— (A) by striking out “the third-party recordkeeper” in paragraph (4) and inserting in lieu thereof “the summoned party”, and (B) by inserting “and Summoned Party” after “Record-keeper” in the subsection heading. (3) The amendments made by this subsection shall take effect on the date of the enactment of this Act. (m) Amendment Related to Section 1562 of the Reform Act.—Subsection (d) of section 6212 of the 1986 Code is amended by adding at the end thereof the following new sentence: “Nothing in this subsection shall affect any suspension of the running of any period of limitations during any period during which the rescinded notice was outstanding.” (n) Amendment Related to Section 1563 of the Reform Act.—Subparagraph (B) of section 6404(e)(1) of the 1986 Code is amended— (1) by inserting “error or” before “delay”, and (2) by inserting “erroneous or” before “dilatory”. (o) Amendment Related to Section 1565 of the Reform Act.—Effective with respect to levies made after December 31, 1988, paragraph (10) of section 6334(a) of the 1986 Code is amended— (1) in subparagraph (A)— (A) by striking out “IV” and inserting in lieu thereof “III, IV, V,” and (B) by adding “or” at the end thereof, (2) in subparagraph (C) by striking out “21,” and inserting in lieu thereof “13, 21, 23,” and (3) by striking out subparagraph (B) and redesignating subparagraph (C) as subparagraph (B). (p) Amendment Related to Section 1581 of the Reform Act.—Subsection (c) of section 1581 of the Reform Act is amended by adding at the end thereof the following new sentence: “The preceding sentence shall not apply if its application would result in an increase in the number of withholding allowances for the employee.” (q) General Requirement of Return, Statement, or List.— (1) Subsection (a) of section 6011 of the 1986 Code is amended by striking out “for the collection thereof’ and inserting in lieu thereof “with respect to the collection thereof’. (2) The amendment made by paragraph (1) shall take effect on the date of the enactment of this Act. (r) Certain Refundable Credits To Be Assessed Under Deficiency Procedures.— (1) Subsection (a) of section 6201 of the 1986 Code is amended by striking out paragraph (4). (2) Paragraph (4) of section 6211(b) is amended to read as follows: “(4) For purposes of subsection (a)— “(A) any excess of the sum of the credits allowable under sections 32 and 34 over the tax imposed by subtitle A (determined without regard to such credits), and “(B) any excess of the sum of such credits as shown by the taxpayer on his return over the amount shown as the tax by the taxpayer on such return (determined without regard to such credits), shall be taken into account as negative amounts of tax.” 102 STAT. 3573 (3) Subsection (h) of section 6211 of the 1986 Code is amended by striking out paragraph (3) and by redesignating paragraph (4) as paragraph (3). (4) The amendments made by this subsection shall apply to notices of deficiencies mailed after the date of the enactment of this Act. (s) Notice of Lien on Personal Property.— (1) Subsection (0 of section 6323 of the 1986 Code is amended— (A) by inserting “, except that State law merely conforming to or reenacting Federal law establishing a national filing system does not constitute a second office for filing as designated by the laws of such State” after “situated” in paragraph (1)(A)(ii), and (B) by adding at the end thereof the following new paragraph: “(5) National filing systems.—The filing of a notice of lien shall be governed solely by this title and shall not be subject to any other Federal law establishing a place or places for the filing of liens or encumbrances under a national filing system.” (2) The amendments made by this subsection shall take effect on the date of the enactment of this Act. (t) Effect of Honoring Levy.— (1) Subsection (d) of section 6332 of the 1986 Code is amended— (A) by inserting “and any other person” after “delinquent taxpayer”, and (B) by striking out the last sentence thereof. (2) The amendment made by this subsection shall apply to levies issued after the date of the enactment of this Act. (u) Collection After Commencement of Judicial Proceedings.— (1) The last sentence of section 6502(a) of the 1986 Code is amended to read as follows: “If a timely proceeding in court for the collection of a tax is commenced, the period during which such tax may be collected by levy shall be extended and shall not expire until the liability for the tax (or a judgment against the taxpayer arising from such liability) is satisfied or becomes enforceable.” (2) The amendment made by this subsection shall apply to levies issued after the date of the enactment of this Act.