To amend section 355 of the Internal Revenue Code of 1986 to prevent the avoidance of corporate tax on prearranged sales of corporate stock, and for other purposes.

Amends the Internal Revenue Code to regulate the recognition of gain when there is a distribution of stock or securities that is part of a plan (or series of related transactions) pursuant to which a person acquires stock representing a 50 percent or greater interest in the distributing corporation or any controlled corporation (or any successor of either). Presumes the existence of such a plan in certain circumstances (unless disproved).