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TITLE 26-INTERNAL REVENUE CODE ty. In the case of stock includible in the gross estate of a decedent for which an election is made under section 2032 (relating to alter- nate valuation), this paragraph shall not apply to any distribution made after the date of the decendent's death and before the alter- nate valuation date provided by section 2032. (f) Definition of divisions of earnings and profits For purposes of this part: (1) DISC Income The earnings and profits derived by a cor- poration during a taxable year in which such corporation is a DISC, before reduction for any distributions during the year, but re- duced by amounts deemed distributed under section 995(b)(1), shall constitute the DISC income for such year. The earnings and prof- its of a DISC for a taxable year include any amounts includible in such DISC's gross income pursuant to section 951(a) for such year. Accumulated DISC income shall be re- duced by deemed distributions under section 995(b)(2). (2) Previously taxed Income Earnings and profits deemed distributed under section 995(b) for a taxable year shall constitute previously taxed income for such year. (3) Other earnings and profits The earnings and profits for a taxable year which are described in neither paragraph (1) nor (2) shall constitute the other earnings and profits for such year. (g) Effectively connected Income In the case of a shareholder who is a nonresi- dent alien individual or a foreign corporation, trust, or estate, gains referred to in section 995(c) and all distributions out of accumulated DISC income including deemed distributions shall be treated as gains and distributions which are effectively connected with the con- duct of a trade or business conducted through a permanent establishment of such shareholder within the United States. (Added Pub. L. 92-178, title V, § 501 Dec. 10, 1971, 85 Stat. 547, and amended Pub. L. 94-455, title XI, § 1101(e), title XIX, §§ 1901(b)(3)(I), Oct. 4, 1976, 90 Stat. 1659, 1793.) AMENDMmErs 1976-Subsec. (a)(2). Pub. L. 94455, § 1101(e), added "In the case of any amount of any actual distribution made pursuant to section 992(c) which is required to satisy the condition of section 992(a)(1)(A), the pre- ceding sentence shall apply to one-half of such amount, and paragraph (1) shall apply to the remain- ing one-half of such amount" following subpar. (C). Subsec. d). Pub. L. 94-455, § 1901(b)(3)(I), substitut- ed "ordinary income" for "gain from the sale or ex- change of property which is not a capital asset" in par. (1)(A) following "dividend or as" and, in par. (2), fol- lowing "treated as". EFcTvE DATE or 1976 A IswmomEr Amendment of subsec. (a)(2) by section 1101(e) of Pub. L. 94455 applicable to taxable years beginning after Dec. 31, 1975, see section 1101(g)(1) of Pub. L. 94455, set out as an Effective Date of 1976 Amend- ment note under section 905 of this title. Amendment of subsec. d) by section 1901(b)(3)(I) of Pub. L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. § 997. Special subchapter C rules For purposes of applying the provisions of subchapter C of chapter 1, any distribution in property to a corporation by a DISC or former DISC which is made out of previously taxed income or accumulated DISC income shall- (1) be treated as a distribution in the same amount as if such distribution of property were made to an individual, and (2) have a basis, in the hands of the recipi- ent corporation, equal to the amount deter- mined under paragraph (1). (Added Pub. L. 92-178, title V, § 501, Dec. 10, 1971, 85 Stat. 549.) PART V-INTERNATIONAL BOYCOTT DETERMINATIONS sec. 999. Reports by taxpayers; determinations. AMmmuMETs 1976-Pub. L. 94-455, title X, § 1084(a), Oct. 4, 1976, 90 Stat. 1650, added Part heading and analysis of sec- tions. § 999. Reports by taxpayers; determinations (a) International boycott reports by taxpayers (1) Report required If any person, or a member of a controlled group (within the meaning of section 993(a)(3)) which includes that person, has op. erations in, or related to- (A) a country (or with the government, a company, or a national of a country) which is on the list maintained by the Secretary under paragraph (3), or (B) any other country (or with the gov- ernment, a company, or a national of that country) in which such person or such member had operations during the taxable year if such person (or, if such person is a foreign corporation, any United States shareholder of that corporation) knows or has reason to know that participation in or cooperation with an international boycott is required as a condition of doing business within such country or with such govern- ment, company, or national, that person or shareholder (within the mean- ing of section 951(b)) shall report such oper- ations to the Secretary at such time and in such manner as the Secretary prescribes, except that in the case of a foreign corpora- tion such report shall be required only of a United States shareholder (within the mean- ing of such section) of such corporation. (2) Participation and cooperation; request therefor A taxpayer shall report whether he, a for- eign corporation of which he is a United States shareholder, or any member of a con- trolled group which includes the taxpayer or such foreign t. rporation has participated in or cooperated with an international boycott at any time during the taxable year, or has been requested to participate in or cooperate with such a boycott, and, if so, the nature of any operation in connection with which there Page 630