S.Amdt. 3033

SA 3033. Mr. DAYTON submitted an amendment intended to be proposed by him to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows:

On page 179, after line 25, add the following:

SEC. __. REPEAL OF CHECK-THE-BOX RULES.

(a) In General.--Paragraph (3) of section 7701(a) (relating to corporation) is amended by inserting at the end the following new sentence: “The determination as to whether any foreign business entity is a corporation shall be made without regard to any election regarding the classification of the business form of such entity and shall be made under rules similar to the rules for determining the status of such entity on December 31, 1996 (except that any foreign business entity which is defined as a corporation under regulations on the date of the enactment of this sentence shall continue to be classified as a corporation).”.

(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning in calendar years beginning after the date of the enactment of this Act.