Page:United States Statutes at Large Volume 52.djvu/622

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 289-MAY 28, 1938 (f) The amendments made by this section shall be effective only with respect to jeopardy assessments made after the date of the enactment of this Act. SEC. 820. MITIGATION OF EFFECT OF LIMITATION AND OTHER PRO- VISIONS IN INCOME TAX CASES. (a) DEFINrrITON. -For the purpose of this section- (1) DETERMINATION.-T he term "determination under the income tax laws" means- (A) A closing agreement made under section 606 of the Revenue Act of 1928, as amended; (B) A decision by the Board of Tax Appeals or a judg- ment, decree, or other order by any court of competent jurisdiction, which has become final; or (C) A final disposition by the Commissioner of a claim for refund. For the purposes of this section a claim for refund shall be deemed finally disposed of by the Commissioner- (i) as to items with respect to which the claim was allowed, upon the date of allowance of refund or credit or upon the date of mailing notice of disallowance (by reason of offsetting items) of the claim for refund, and (ii) as to items with respect to which the claim was disallowed, in whole or in part, or as to items applied by the Commissioner in reduction of the refund or credit, upon expiration of the time for instituting suit with respect thereto (unless suit is instituted prior to the expiration of such time). Such term shall not include any such agreement made, or decision, judgment, decree, or order which has become final, or claim for refund finally disposed of, prior to ninety days after the date of the enactment of this Act. (2) TAXPAYER. - Notwithstanding the provisions of section 901, the term "taxpayer" means any person subject to a tax under the applicable Revenue Act. (3) RELATED TAXPAYER. -T he term "related taxpayer" means a taxpayer who, with the taxpayer with respect to whom a deter- mination specified in subsection (b) (1), (2), (3) or (4) is made, stood, in the taxable year with respect to which the erroneous inclusion, exclusion, omission, allowance, or disallowance therein referred to was made, in one of the following relationships: (A) husband and wife; (B) grantor and fiduciary; (C) grantor and beneficiary; (D) fiduciary and beneficiary, legatee, or heir; (E) decedent and decedent's estate; or (F) partner. (b) CIRCUMSTANCES OF ADJUSTMENT. - When a determination under the income tax laws- (1) Requires the inclusion in gross income of an item which was erroneously included in the gross income of the taxpayer for another taxable year or in the gross income of a related tax- payer; or (2) Allows a deduction or credit which was erroneously allowed to the taxpayer for another taxable year or to a related taxpayer; or (3) Requires the exclusion from gross income of an item with respect to which tax was paid and which was erroneously excluded or omitted from the gross income of the taxpayer for another taxable year or from the gross income of a related tax- payer; or (4) Allows or disallows any of the additional deductions allow- able in computing the net income of estates or trusts, or requires 581 Application. Mitigation of effect of limitation and other provisions in income tax cases. Definitions. "Determination under the income tax laws. " 45 Stat. 874. "Taxpayer." Pos, p. 583. "Related taxpayer." Circumstancesof ad- justment.

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