Page:United States Statutes at Large Volume 55 Part 1.djvu/51

 PUBLIC LAWS--CH. 10-MAR. 7, 1941 54 Stat. 975, 991. Ante, pp. 18, 21, 23. 54 Stat. 986. 26U.S .. § 721, 722. Ante, pp. 18, 21, 23. 54 Stat. 975, 991. SEC. 9. PROCEDURAL PROVISIONS. Part 1 of subchapter E of chapter 2 of the Internal Revenue Code is amended by inserting at the end thereof the following new section: "SEC. 732. REVIEW OF ABNORMALITIES BY BOARD OF TAX APPEALS. "(a) PETITION TO THE BoARD.- I f a claim for refund of tax under this subchapter for any taxable year is disallowed in whole or in part by the Commissioner, and the disallowance relates to the application of section 711 (b) (1) (H), (I), (J), or (K), section 721, or section 722, relating to abnormalities, the Commissioner shall send notice of such disallowance to the taxpayer by registered mail. Within ninety days after such notice is mailed (not counting Sunday or a legal holiday in the District of Columbia as the ninetieth day) the taxpayer may file a petition with the Board of Tax Appeals for a redetermination of the tax under this subchapter. If such petition is so filed, such notice of disallowance shall be deemed to be a notice of deficiency for all purposes relating to the assessment and collection of taxes or the refund or credit of overpayments. "(b) DEFICIENC FouIND B OARD IN CASE OF CLAIM.- If the Board finds that there is no overpayment of tax in respect of any taxable year in respect of which the Commissioner has disallowed, in whole or in part, a claim for refund described in subsection (a) and the Board further finds that there is a deficiency for such year, the Board shall have jurisdiction to determine the amount of such deficiency and such amount shall, when the decision of the Board becomes final, be assessed and shall be paid upon notice and demand from the collector. "(c) FINALITY OF DETERMINATION. -If in the determination of the tax liability under this subchapter the determination of any ques- tion is necessary solely by reason of section 711 (b) (1) (H), (I), (J), or (K), section 721, or section 722, the determination of such question shall not be reviewed or redetermined by any court or agency except the Board." SEC. 10. CAPITALIZATION OF ADVERTISING, ETC., EXPENDITURES. (a) Part 1 of subchapter E of chapter 2 of the Internal Revenue Code is amended by inserting at the end thereof the following new section: "SEC. 733. CAPITALIZATION OF ADVERTISING, ETC., EXPENDITURES. "(a) ELECTION TO CHARGE TO CAPITAL ACCOUNT.-For the purpose of computing the excess profits credit, a taxpayer may elect, within six months after the date prescribed by law for filing its return for its first taxable year under this subchapter, to charge to capital account so much of the deductions for taxable years in its applicable base period on account of expenditures for advertising or the promo- tion of good will, as, under rules and regulations prescribed by the Commissioner with the approval of the Secretary, may be regarded as capital investments. Such election must be the same for all such taxable years, and must be for the total amount of such expenditures which may be so regarded as capital investments. In computing the excess profits credit, no amount on account of such expenditures shall be charged to capital account: "(1) For taxable years in the base period unless the election authorized in subsection (a) is exercised, or "(2) For any taxable year prior to the beginning of the base period. 26 [55 STAT.

�