Page:United States Statutes at Large Volume 68A.djvu/172

 132

INTERNAL REVENUE CODE OF 1954

section 337(b) to be made by reference to the date of the adoption of the plan of Hquidation shall be made by reference to January 1, 1954; and (B) the limitations of section 337(c) shall apply. For purposes of section 453(d)(4)(B) (relating to disposition of installment obligations), nonrecognition of gain or loss under paragraph (1) of this subsection shall be treated as nonrecognition of gain or loss under section 337. (3) PLANS OF LIQUIDATION ADOPTED AFTER DECEMBER 31,

1953,

AND BEFORE JUNE 22, 1954.—If the plan of complete liquidation was adopted after December 31, 1953, and before June 22, 1954, then, at the election of the corporation (made at such time and in such manner as the Secretary or his delegate may by regulations prescribe)— (A) the 12-month period beginning on the date of the adoption of such plan shall be (i) the period for distribution (in lieu of the requirement in paragraph (1)(A) of this subsection that the assets be distributed before January 1, 1955), and (ii) the period during which, by reason of paragraph (1) of this subsection, gain or loss to the corporation is not recognized (in lieu of nonrecognition of gain or loss during the calendar year 1954); and (B) notwithstanding paragraph (2)(A) of this subsection, any determination required by section 337(b) to be made by reference to the date of the adoption of the plan of liquidation shall be made by reference to such date (and not by reference to January 1, 1954). SEC. 393. EFFECTIVE DATES OF PARTS III AND IV. (a) GENERAL RULE.—Except as otherwise provided in this subchapter, parts III and IV shall take effect on June 22, 1954. (b)

SPECIAL RULES FOR PLANS OF REORGANIZATION.—

(1) IN GENERAL.—Except as provided in paragraphs (2) and (3), parts III and IV shall apply only in respect of plans of reorganization adopted on or after June 22, 1954. For purposes of this paragraph and paragraphs (2) and (3), a plan to make a transfer to a controlled corporation described in section 351, or a plan to make an exchange or distribution which is described in section 355 (or so much of section 356 as relates to section 355) shall be treated as a plan of reorganization. (2) ELECTION TO HAVE 1939 CODE APPLY.—If—

(A) a plan of reorganization was submitted to the Secretary or his delegate before June 22, 1954, but such plan was not adopted before such date, (B) the Secretary or his delegate issues (whether before, on, or after such date) a ruling with respect to such plan, and (C) the corporations which are parties to the reorganization elect (at such time and in such manner as the Secretary or his delegate may by regulations prescribe) to have this paragraph then, if such reorganization is completed in accordance with the plan so submitted, the tax treatment of such reorganization (as to the corporations which are parties to the reorganization and as to 1392(b)(2)(A)

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