§1453

104-188, § 1453(a), 110 Stat.

Section 7430(c)(4)(D)(i)(II) modifies the general rule and provides that the trust's net worth "shall be determined as ofthe last day ofthe taxable year involved in the proceeding".

he taxable period. Sec. 4975(a). For prohibited transactions occurring before August 21, 1996, the rate of the first-tier tax is 5 percent. See sec. 4975(a) before amendment by the Small Business Job Protection Act of 1996 (SBJPA), Pub. L. 104-188, sec. 1453, 110 Stat. 1817. For prohibited transactions occurring after August 20, 1996, and before August 6, 1997, the rate of the first-tier tax is 10 percent. See sec. 4975(a) after amendment by SBJPA sec. 1453 (first-tier tax rate increased from 5

1453(a), 111 Stat. 788, 1055 (effective with respect to proceedings commenced after Aug. 5, 1997), amended sec. 7430 to adopt this rule. See sec. 7430(c)(4)(D)(ii), as amended. The petition in this case, however, was filed on Nov. 4, 1996; therefore, this amendment is not applicable herein. Cf. Maggie Management Co. v. Commissioner, 108 T.C. 4

1453, 111 Stat. 788, 1055; emphasis added.] On August 5, 1997, paragraph (c)(4) of section 7430 contained no such “subparagraph (A)(iii)”. An earlier version of paragraph (c)(4) of section 7430, prior to its amendment on July 30, 1996, did contain such a reference, reading as follows: (c) Definitions. For purposes of this section-- * * * * * *