Sec. 2122. SOURCE RULES FOR INCOME ON GUARANTEES

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## SEC. 2122 SOURCE RULES FOR INCOME ON GUARANTEES ###

(a)Amounts Sourced Within the United States Subsection

(a)of section 861 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: > > #### “(9) Guarantees > > Amounts received, directly or indirectly, from— > > > ##### “(A) > > a noncorporate resident or domestic corporation for the provision of a guarantee of any indebtedness of such resident or corporation, or > > > ##### “(B) > > any foreign person for the provision of a guarantee of any indebtedness of such person, if such amount is connected with income which is effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States.” > . ###

(b)Amounts Sourced Without the United States Subsection

(a)of section 862 of the Internal Revenue Code of 1986 is amended by striking “ and ” at the end of paragraph (7), by striking the period at the end of paragraph

(8)and inserting “ ; and ”, and by adding at the end the following new paragraph: > > #### “(9) > > amounts received, directly or indirectly, from a foreign person for the provision of a guarantee of indebtedness of such person other than amounts which are derived from sources within the United States as provided in section 861(a)(9).” > . ###

(c)Conforming Amendment Clause

(ii)of section 864(c)(4)(B) of the Internal Revenue Code of 1986 is amended by striking “dividends or interest” and inserting “dividends, interest, or amounts received for the provision of guarantees of indebtedness”. ###

(d)Effective Date The amendments made by this section shall apply to guarantees issued after the date of the enactment of this Act. ### PART IV TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES