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TITLE 26-INTERNAL REVENUE CODE (4) In applying subsection (d)(3) of section 1101, the date of the enactment of this sub- section shall be treated as being the date of the enactment of this part. (5) In applying subsection (b)(2)(A) of sec- tion 1103, the reference to the Bank Holding Company Act of 1956 shall be treated as re- ferring to such Act as amended by Public Law 89-485. (Added May 9, 1956, ch. 240, § 10(a), 70 Stat. 143, and amended Dec. 27, 1967, Pub. L. 90-225, § 1, 81 Stat. 730; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834.) SECTION EFFECTIVE OCTOER 1, 1977 Pub. L. 94-452, § 2(a), (d)(1), Oct 2, 1976, 90 Stat. 1503, 1512, provided that, effective on Oct. 1, 1977, with respect to distributions after July 7, 1970, in taxable years ending after July 7, 1970, section 1102 will read as follows: § 1102. Special rules (a) Basis of property acquired in distributions If, by reason of section 1101, gain is not recog- nized with respect to the receipt of any proper- ty, then, under regulations prescribed by the Secretary or his delegate- (1) if the property is received by a share- holder with respect to stock without the sur- render by such shareholder of stock, the basis of the property received and of the stock with respect to which it is distributed shall, in the distributee's hands, be determined by allocat- ing between such property and such stock the adjusted basis of such stock or (2) if the property is received by a share- holder in exchange for stock or by a security holder in exchange for securities, the basis of the property received shall, in the distributee's hands, be the same as the adjusted basis of the stock or securities exchanged, increased by the amount of gain to the taxpayer recognized on the property received. (b) Periods of limitation The periods of limitation provided in section 6501 (relating to limitations on assessment and collection) shall not expire, with respect to any deficiency (including interest and additions to the tax) resulting solely from the receipt of property by shareholders in a distribution which is certified by the Board under subsec- tion (a), (b), or (c) of section 1101, until 5 years after the distributing corporation notifies the Secretary or his delegate (in such manner and with such accompanying information as the Secretary or his delegate may by regulations prescribe)- (1) that the final certification required by subsection (e) of section 1101 has been made, or (2) that such final certification will not be made; and such assessment may be made notwith- standing any provision of law or rule of law which would otherwise prevent such assess- ment. () Allocation of earnings and profits (1) Distribution of stock in a controlled corpora- tion In the case of a distribution by a qualified bank holding corporation under section 1101 (a)(1) or (b)(1) of stock in a controlled corpo- ration, proper allocation with respect to the earnings and profits of the distributing corpo- ration and the controlled corporation shall be made under regulations prescribed by the Sec- retary or his delegate. (2) Exchanges described in section 1101(c)(2) or (3) In the case of any exchange described in sec- tion 1101(c)(2) or (3), proper allocation with respect to the earnings and profits of the cor- poration transferring the property and the corporation receiving such property shall be made under regulations prescribed by the Sec- retary or his delegate. (3) Definition of controlled corporation For purposes of paragraph (1), the term "controlled corporation" means a corporation with respect to which at least 80 percent of the total combined voting power of all classes of stock entitled to vote and at least 80 per- cent of the total number of shares of all other cl,tsses of stock is owned by the distributing qualified bank holding corporation. (d) Itemization of property In any certification under this part, the Board shall make such specification and item- ization of property as may be necessary to carry out the provisions of this part. REFERENCES IN TEXT The Bank Holding Company Act of 1956, referred to in subsecs. (b) and (e)(5), Is act May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is classified principally to chapter 17 (§ 1841 et seq.) of Title 12, Banks and Bank. ing. Section 4(a) of such Act referred to In subsec. (b), is classified to section 1843(a) of Title 12. For complete classification of this Act to the Code, see Short Title note set out under section 1841 of Title 12 and Tables volume. The Act entitled "An Act to amend the Bank Hold- ing Company Act of 1956", approved July 1, 1966 (Public Law 89-485), referred to in subsec. (e) is Pub. L. 89-485, July 1, 1966, 80 Stat. 236, which amended sections 61, 161, 221a, 304, 334, 371c. 601, 1828, 1841, 1842, 1843, 1848 and 1849 of Title 12, Banks and Bank- Ing, and sections 80a-3, 80b-2 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Tables volume. The date of enactment of this part, referred to in subsec. (e)(4), Is May 9, 1956. AMENDMENTS 1976-Pub. L. 94-455 struck out "or his delegate" fol- lowing "Secretary" wherever appearing. 1967-Subsee. (e). Pub. L. 90-225 added subsec. (e). EFFECTIVE DATE OF 1967 AMENDMENT Section 1 of Pub. L. 90-225 provided in part that: "The amendment made by this section (which added subsec. (e) of this section] shall apply with respect to distributions made after the date of the enactment of this Act [Dec. 27, 1967] in taxable years ending after such date." SAVINGS CLAUSE See section 11 of act May 9, 1956, set out as a Sav- ings Clause note under section 1841 of Title 12, Banks and Banking. Page 671 § 1102