II 111th CONGRESS 1st Session S. 2916 IN THE SENATE OF THE UNITED STATES December 18, 2009 Mr. Bunning introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide that Internal Revenue Service Notice 2010–2 shall have no force and effect and to amend the Internal Revenue Code of 1986 to restrict the authority of the Secretary of the Treasury to prescribe regulations under section 382 of such Code.

1.

Limitation on regulatory authority relating to limitation on losses following ownership change

(a)

Repeal of Notice 2010–2

Internal Revenue Service Notice 2010–2 shall have no force and effect. (b)

Modification of regulatory authority under section 382

Section 382(m) of the Internal Revenue Code of 1986 is amended by adding at the end the following flush sentence: Notwithstanding the preceding sentence or any other provision of law, the Secretary may not prescribe any regulation after December 18, 2009, which provides an exemption or special rule under this section which is restricted to dispositions of instruments acquired by the Secretary unless such exemption or special rule is specifically authorized by Congress.. (c)

No inference

Nothing in subsection (a) or in the amendment made by subsection (b) shall be construed to create any inference with respect to the authority of the Secretary of the Treasury on or before December 18, 2009, to provide exceptions to the application of the rules of section 382 of the Internal Revenue Code of 1986 with respect to certain classes of taxpayers.