Page:United States Statutes at Large Volume 100 Part 3.djvu/564

 100 STAT. 2372

PUBLIC LAW 99-514—OCT. 22, 1986 (2) Section 453A is amended by adding at the end thereof the following new subsection: "(c) CROSS REFERENCE.— "For disallowance of use of installment method for certain obligations, see section 453(j)." (c) EFFECTIVE DATE.—

(1) IN GENERAL,—Except as provided in paragraph (2), the amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1986. (2) CHANGE IN METHOD OF ACCOUNTING.—In the case of any taxpayer who made sales under a revolving credit plan and was on the installment method under section 453 or 453A of the Internal Revenue Code of 1986 for such taxpayer's last taxable year beginning before January 1, 1987, the amendments made by this section shall be treated as a change in method of accounting for its 1st taxable year beginning after December 31, 1986, and— (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as having been made with the consent of the Secretary, and (C) the period for taking into account adjustments under section 481 of such Code by reason of such change shall not ' exceed 4 years.

Subtitle C—Other Provisions SEC. 821. INCOME ATTRIBUTABLE TO UTILITY SERVICES.

(a) IN GENERAL.—Section 451 (relating to general rule for taxable year of inclusion) is amended by adding at the end thereof the following new subsection: "(0 SPECIAL RULE FOR UTILITY SERVICES.—

"(1) IN GENERAL.—In the case of a taxpayer the taxable income of which is computed under an accrual method of accounting, any income attributable to the sale or furnishing of utility services to customers shall be included in gross income not later than the taxable year in which such services are provided to such customers. "(2) DEFINITION AND SPECIAL RULE.—For purposes of this subsection— "(A) UTIUTY SERVICES.—The term 'utility services' includes— "(i) the providing of electrical energy, water, or sewage disposal, "(ii) the furnishing of gas or steam through a local distribution system, "(iii) telephone or other communication services, and "(iv) the transporting of gas or steam by pipeline. "(B) YEAR IN WHICH SERVICES PROVIDED.—The taxable year in which services are treated as provided to customers shall not, in any manner, be determined by reference to— "(i) the period in which the customers' meters are read, or "(ii) the period in which the taxpayer bills (or may bill) the customers for such service.'

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