Page:United States Statutes at Large Volume 68A.djvu/189

 CH. 1—NORMAL TAXES AND SURTAXES

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(2) S P E C I A L RULES FOR 5 2 - 5 3 - W E E K Y E A R, — (A) EFFECTIVE DATES.—In any case in which the effective date

or the applicabihty of any provision of this title is expressed in terms of taxable years beginning or ending with reference to a specified date which is the first or last day of a month, a taxable year described in paragraph (1) shall (except for purposes of the computation under section 21) be treated— (i) as beginning with the first day of the calendar month beginning nearest to the first day of such taxable year, or (ii) as ending with the last day of the calendar month ending nearest to the last day of such taxable year, as the case may be. (B) CHANGE IN ACCOUNTING PERIOD.—In the case of a change from or to a taxable year described in paragraph (1)— (i) if such change results in a short period (within the meaning of section 443) of 359 days or more, or of less than 7 days, section 443(b) (relating to alternative tax computation) shall not apply; (ii) if such change results in a short period of less than 7 days, such short period shall, for purposes of this subtitle, be added to and deemed a part of the following taxable year; and (iii) if such change results in a short period to which subsection (b) of section 443 applies, the taxable income for such short period shall be placed on an annual basis for purposes of such subsection by multiplying such income by 365 and dividing the result by the number of days in the short period, and the tax shall be the same part of the tax computed on the annual basis as the number of days in the short period is of 365 days. (3) KEGULATIONS.—The Secretary or his delegate shall prescribe such regulations as he deems necessary for the application of this subsection. (g) No BOOKS K E P T; N o ACCOUNTING PERIOD.—Except as provided in section 443 (relating to returns for periods of less than 12 months), the taxpayer's taxable year shall be the calendar year if— (1) the taxpayer keeps no books; (2) the taxpayer does not have an annual accounting period; or (3) the taxpayer has an annual accounting period, but such period does not qualify as a fiscal year. SEC. 442. CHANGE OF ANNUAL ACCOUNTING

PERIOD.

If a taxpayer changes his annual accounting period, the new accounting period shall become the taxpayer's taxable year only if the change is approved by the Secretary or his delegate. For purposes of this subtitle, if a taxpayer to whom section 441(g) applies adopts an annual accounting period (as defined in section 441(c)) other than a calendar year, the taxpayer shall be treated as having changed his annual accounting period. SEC. 443. RETURNS FOR A PERIOD OF LESS THAN 12 MONTHS. (a) R E T U R N S FOR SHORT P E R I O D. — A return for a period of less

than 12 months (referred to in this section as "short period") shall be made under any of the following circumstances: § 443(a)

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