Page:United States Statutes at Large Volume 58 Part 1.djvu/54

 PUBLIC LAWS-OH. 63-FEB. 25, 1944 SEC. 110. LAST-IN FIRST-OUT INVENTORY. 56 Stat. 814 . 26U.S.C Supp. III, 22 (d) (65 (A). Infra. Supra. 53 Stat. 104 . 26U.S. . §§ 500- 752; Supp. III, § 500 et seq. Post, pp. 43,53-58,74. 56 Stat. 815 . 26 U. .S. C., Supp. III, 622 (d) (65 (0). Supra. 56 Stat. 816. 26 U. S. C. Supp. III, §22 (d) (6)(D). 56 Stat. 816. 26 U. S. C. Supp. III, 22 (d) (65 (B). 53 Stat. 12. 26 U. S. C., Supp. HII, 23 (a). 55 8tat. 700 . 26U.. ., Supp. m, 123 (1) (D), (E. (a) IN GENERAL.- - (1) RETROACTIVE EFFECT. -Section 22 (d) (6) (A) (relating to involuntary liquidation and replacement of goods subject to elective inventory) is amended (A) by striking out "December 31, 1941" and inserting in lieu thereof "December 31, 1940", and (B) by inserting after "taxpayer's income tax return for such year" the following: "(or, with respect to taxable years beginning in 1941, at any time within the six months period following the date of the enactment of the Revenue Act of 1943) ". (2) EFFECT OF ADJUSTMENT ON CARRY-OVERS AND CARRY-BACKS. - The next to the last sentence of section 22 (d) (6) (A) is amended to read as follows: "The taxes imposed by this chapter and by chapter 2 for the year of such liquidation, for preceding taxable years, and for all taxable years intervening between the year of liquidation and the year of replacement shall be redetermined, giving effect to such adjustments." (3) TECHNICAL AMENDMENT RELATING TO REPLACEMENTS.--Sec- tion 22 (d) (6) (C) (relating to replacements) is amended to read as follows: "(C) Replacements. -If, in the case of any taxpayer sub- ject to the provisions of subparagraph (A), the closing inven- tory of the taxpayer for a taxable year, subsequent to the year of involuntary liquidation but prior to the complete replacement of the goods so liquidated, reflects an increase over the opening inventory of such goods for the taxable year, the goods reflecting such increase shall be considered, in the order of their acquisition, as having been acquired in replacement of the goods most recently liquidated (whether or not in a year of involuntary liquidation) and not pre- viously replaced, and if the liquidation was an involuntary liquidation shall be taken into purchases and included in the closing inventory of the taxpayer for the year of replace- ment at the inventory cost basis of the goods replaced." (4) EFFECT OF ELECTION.- Section 22 (d) (6) (D) (relating to irrevocable effect of election) is amended by striking out "for subsequent taxable years" and inserting in lieu thereof 'for prior and subsequent taxable years". (5) TAXES AFFECTED BY ADJUSTMENT.-Section 22 (d) (6) (E) (relating to adjustment with respect to closed years) is amended by striking out "Subchapter E of". (b) EFFECrrVE DATE.-The amendments Made by this section shall be applicable with respect to taxable years beginning after December 31, 1940. SEC. 111. DENIAL OF DEDUCTION FOR FEDERAL EXCISE TAXES NOT DEDUCTIBLE UNDER SECTION 23 (a). Section 23 (c) (1) (relating to deduction of taxes in computing net income) is amended (a) by striking out "and" at the end of subparagraph (D); (b) by striking out the period at the end of subparagraph (E) and inserting in lieu thereof "; and"; and (c) by inserting at the end thereof the following: "(F) Federal import duties, and Federal excise and stamp taxes (not described in subparagraph (A), (B), (D), or (E)), but this subsection shall not prevent such duties and taxes from being deducted under subsection (a)." [58 STAT.

�