which, if it were a partnership, would be an investment partnership. (f) Exception for domestic C corporations Except as otherwise provided by the Secretary, in the case of a domestic C corporation— (1) subsections (a) and (b) shall not apply to any item allocated to such corporation with respect to any investment services partnership interest (or to any gain or loss with respect to the disposition of such an interest), and (2) subsection (e) shall not apply. (g) Regulations The Secretary shall prescribe such regulations or other guidance as is necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to— (1) require such reporting and recordkeeping by any person in such manner and at such time as the Secretary may prescribe for purposes of enabling the partnership to meet the requirements of section 6031 with respect to any item described in section 702(a)(9), (2) provide modifications to the application of this section (including treating related persons as not related to one another) to the extent such modification is consistent with the purposes of this section, (3) prevent the avoidance of the purposes of this section (including through the use of qualified family partnerships), and (4) coordinate this section with the other provisions of this title. (h) Cross reference For 40 percent penalty on certain underpayments due to the avoidance of this section, see section 6662. . (b) Application of section 751 to indirect dispositions of investment services partnership interests (1) In general Subsection (a) of section 751 is amended by striking or at the end of paragraph (1), by inserting or at the end of paragraph (2), and by inserting after paragraph (2) the following new paragraph: (3) investment services partnership interests held by the partnership, . (2) Certain distributions treated as sales or exchanges Subparagraph (A) of section 751(b)(1) is amended by striking or at the end of clause (i), by inserting or at the end of clause (ii), and by inserting