Page:United States Statutes at Large Volume 72 Part 1.djvu/1671

 72 S T A T. ] (d)

PUBLIC LAW 85-866-SEPT. 2, 1958

1629

EFFECTIVB DATE.—

(1) IN GENERAL.—The amendments made by this section shall apply with respect to any change in a method of accounting where the year of the change (within the meaning of section 481 of the Internal Revenue Code of 1954) is a taxable year beginning after December 31, 1953, and ending after August 16, 1954. (2) EXCEPTION FOR CERTAIN AGREEMENTS.—The amendments made by subsections (a), (b)(1), and (c) shall not apply if before the date of the enactment of this Act— (A) the taxpayer applied for a change in the method of accounting in the manner provided by regulations prescribed by the Secretary of the Treasury or his delegate, and (B) the taxpayer and the Secretary of the Treasury or his delegate agreed to the terms and conditions for making the change. (e)

26 USC 481.

ELECTION To RETURN TO FORMER METHOD OF ACCOUNTING.—

(1) ELECTION.—Any taxpayer who for any taxable year beginning after December 31, 1953, and ending after August 16, 1954, and before the date of enactment of this Act, computed his taxable income under a method of accounting different from the method under which his taxable income for the preceding taxable year was computed, may elect to recompute his taxable income, beginning with the taxable year for which taxable income was computed under such different method of accounting, under the method of accounting under which taxable income was computed for such preceding taxable year. An election under this paragraph shall be made within 6 months after the date of the enactment of this Act, and shall be made in such manner as the Secretary of the Treasury or his delegate may provide. This paragraph shall not apply to any taxpayer— (A) to whom subsection (d)(2) applies, or (B) who was required, before the date of the enactment of this Act, by the Secretary of the Treasury or his delegate to change his method of accounting. (2) STATUTE OF LIMITATIONS,—If assessment of any deficiency for any taxable year resulting from an election under paragraph (1) is prevented on the date on which such election is made, or at any time within one year after such date, by the operation of any law or rule of law, such assessment may, nevertheless, be made if made within one year after such date. An election by a taxpayer under paragraph (1) shall be considered as a consent to the assessment pursuant to this paragraph of any such deficiency. If refund or credit of any overpayment of income tax resulting from an election under paragraph (1) is prevented on the date on which such election is made, or at any time within one year after such date, by the operation of any law or rule of law, refund or credit of such overpayment may, nevertheless, be made or allowed if claim therefor is filed within one year after such date. SEC. 30. DENIAL OF EXEMPTION TO ORGANIZATIONS ENGAGED IN PROHIBITED TRANSACTIONS. (a)

LENDING TO CERTAIN PERSONS.—Section 503

(relating to re-

quirements for exemption in the case of exempt organizations) is amended by adding at the end thereof the following new subsection: " (h) SPECIAL RULES RELATING TO LENDING BY SECTION 401 (a) TRUSTS TO CERTAIN PERSONS,—For purposes of subsection (c)(1), a

bond, debenture, note, or certificate or other evidence of indebtedness (hereinafter in this subsection referred to as 'obligation') acquired

26 USC 503.

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