Page:United States Statutes at Large Volume 68A.djvu/188

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INTERNAL EEVENUE CODE OF 1954

Subchapter E—Accounting Periods and Methods of Accounting Part I. Accounting periods. Part II. Methods of accounting. Part III. Adjustments.

PART I—ACCOUNTING PERIODS Sec. 441. Period for computation of taxable income. Sec. 442. Change of annual accounting period. Sec. 443. Returns for a period of less than 12 months.

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SEC. 441. PERIOD FOR COMPUTATION OF TAXABLE INCOME. (a) COMPUTATION OF TAXABLE INCOME.^—Taxable income shall be

computed on the basis of the taxpayer's taxable year. (b) TAXABLE Y E A R. — For purposes of this subtitle, the term "taxable year" means— (1) the taxpayer's annual accounting period, if it is a calendar year or a fiscal year; (2) the calendar year, if subsection (g) applies; or (3) the period for which the return is made, if a return is made for a period of less than 12 months. (c) ANNUAL ACCOUNTING PERIOD.—For purposes of this subtitle, the term "annual accounting period" means the annual period on the basis of which the taxpayer regularly computes his income in keeping his books, (d) CALENDAR Y E A R. — For purposes of this subtitle, the term "calendar year" means a period of 12 months ending on December 31. (e) FISCAL Y E A R. — For purposes of this subtitle, the term "fiscal year" means a period of 12 months ending on the last day of any month other than December. In the case of any taxpayer who has made the election provided by subsection (f), the term means the annual period (varying from 52 to 53 weeks) so elected. (f) ELECTION OF Y E A R CONSISTING OF 52-53 W E E K S. — (1) GENERAL RULE.—A taxpayer who, in keeping his books, regularly computes his income on the basis of an annual period which varies from 52 to 53 weeks and ends always on the same day of the week and ends always— (A) on whatever date such same day of the week last occurs in a calendar month, or (B) on whatever date such same day of the week falls which is nearest to the last day of a calendar month, may (in accordance with the regulations prescribed under paragraph (3)) elect to compute his taxable income for purposes of this subtitle on the basis of such annual period. This paragraph shall apply to taxable years ending after the date of the enactment of this title. §441

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