Clarification of rules relating to payments to partners for property or services

(a) In general Section 707(a)(2) is amended by striking Under regulations prescribed by the Secretary— and inserting Except as provided by the Secretary—. (b) Effective date The amendment made by this section shall apply to services performed or property transferred after the date of the enactment of this Act. (c) No inference Nothing in this section or the amendments made by this section shall be construed to create any inference with respect to the proper treatment under section 707(a) of the Internal Revenue Code of 1986 with respect to payments from a partnership to a partner for property transferred or services performed on or before the date of the enactment of this Act.