[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2538 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2538

    To amend the Internal Revenue Code of 1986 to modify the active 
 business definition relating to distributions of stock and securities 
                      of controlled corporations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 1 (legislative day, September 29), 1998

  Mr. Breaux introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to modify the active 
 business definition relating to distributions of stock and securities 
                      of controlled corporations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATION OF ACTIVE BUSINESS DEFINITION.

    (a) In General.--Section 355(b)(2) of the Internal Revenue Code of 
1986 (defining active conduct of a trade or business) is amended by 
adding at the end the following: ``For purposes of subparagraph (A), 
all corporations that are members of the same affiliated group (as 
defined in section 1504(a)) shall be treated as a single corporation.''
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions or transfers after the date of the enactment of this 
Act.
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