Page:United States Statutes at Large Volume 56 Part 1.djvu/945

 77TH CONG. , 2D SESS.-CH. 619-OCT. 21, 1942 amount in excess of the amount of the deficiency finally determined under this subchapter without the application of this section. If a constructive average base period net income has been determined under the provisions of this section for any taxable year, the Com- missioner may, by regulations approved by the Secretary, prescribe the extent to which the limitations prescribed by this subsection may be waived for the purpose of determining the tax under this sub- chapter for a subsequent taxable year. "(e) RULES FOR APPLICATION OF SECTION. -For the purposes of this section- "(1) the tax imposed by this subchapter shall be the tax before the allowance of the foreign tax credit pursuant to section 729 -(c) and (d); "(2) in the case of a taxpayer, the average base period net income of which is computed under Supplement A, for the period for which the income of any other person is included in the com- putation of the average base period net income of the taxpayer, the taxpayer shall be treated as if such other person's business were a part of the business of the taxpayer. "(f) MINING CORPORATIONS.- In the case of a taxpayer to which section 711 (a) (1) (I) or section 711 (a) (2) (K) applies, if its con- structive average base period net income is established under this section, there shall also be determined a fair and just amount to be used as normal output and normal unit profit for the purposes of section 735." (b) DEFERMENT OF PAYMENT OF TAx.-Section 710 (a) is amended by inserting at the end thereof the following new paragraph: "(5) DEFERMENT OF PAYMENT IN CASE OF ABNORMALITY. -- If the adjusted excess profits net income (computed without reference to section 722) for the taxable year of a taxpayer which claims on its return, in accordance with regulations prescribed by the Commis- sioner with the approval of the Secretary, the benefits of section 722, is in excess of 50 per centum of its normal tax net income for such year, computed without the credit provided in section 26 (e) (relating to adjusted excess profits net income), the amount of tax payable at the time prescribed for payment may be reduced by an amount equal to 33 per centum of the amount of the reduction in the tax so claimed. For the purposes of section 271, if the tax payable is the tax so reduced, the tax so reduced shall be considered the amount shown on the return." (c) REVIEW OF ABNORMALITIES BY A DIVISION OF THE BoARD. -Section 732 (relating to review of abnormalities by the Board) is amended by inserting at the end thereof the following new subsection: "(d) REVIEW BY SPECIAL DIVISION OF BoARD.- The determinations and redeterminations by any division of the Board involving any question arising under section 721 (a) (2) (C) or section 722 shall be reviewed by a special division of the Board which shall be con- stituted by the Chairman and consist of not less than three members of the Board. The decisions of such special division shall not be reviewable by the Board, and shall be deemed decisions of the Board." (d) INSTALLMENT BASIS AND OTHER TAxPAYERs.- Subchapter E of Chapter 2 is amended by inserting after section 735 the following new section: "SEC. 736. RELIEF FOR INSTALLMENT BASIS TAXPAYERS AND TAX- PAYERS WITH INCOME FROM LONG-TERM CONTRACTS. "(a) ELEcrION TO ACCRUE INCOME.- In the case of any taxpayer computing income from installment sales under the method provided 917 54 Stat. 989. 26 U.S. C. §729(c), (d). 54 Stat. 991. 26U. .C.. 740- 744; Supp. I, §§ 740- 743. Post, pp. 920, 923, 925,930. Ante, p. 901 Ante, p. 905. Ante, p. 901. Ante, p. 914. Ante, p. 80 53 Stat. 82 . 26U. .C.. 271. M5Stat. 26 . 26 U.S. C., Supp. I, 65 Stat. 22 . 26U. S. C., Supp. I, 6 721 (a) (2) (C). Ante, p. 914. Ante, p. 905. 56 STAT.]

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