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26 USC 1347.

PUBLIC LAW 8 6 - 8 6 6 - S E P T. 2, 1958

[72 S T A T.

31, 1957. N o i n t e r e s t s h a l l be allowed o r p a i d on any o v e r payment r e s u l t i n g from the application of the amendment m a d e by subsection (c). SEC. 61. CLAIMS AGAINST UNITED STATES INVOLVING ACQUISITIONS OF PROPERTY. (a) L I M I T ON S U R T A X. — S e c t i o n 1347 ( r e l a t i n g to claims a g a i n s t United States i n v o l v i n g acquisitions of property) is amended — (1) by striking o u t " the tax i m p o s e d by section 1" and inserting i n lieu thereof " the s u r tax i m p o s e d by section 1 "; and (2) by a d d i n g a t the e n d thereof the following new s e n t e n c e: " T h i s section s h a l l a p p l y only if c l a i m w a s filed w i t h the United States before January 1, 1958." (b) EFFECTIVE D A T E. — The amendment m a d e by subsection (a)(1) s h a l l a p p l y only w i t h respect to tax a b l e year s b e g i n n i n g after December 31, 1957. SEC. 62. MITIGATION OF EFFECT OF PRICE REDETERMINATIONS OF SUBCONTRACTS SUBJECT TO RENEGOTIATION. (a)

KEADJUSTMENT OF T A X FOR PRIOR Y E A R S. — Subchapter B

of

chapter 4 ( r e l a t i n g to m i t i g a t i o n of effect of r e n e g o t i a t i o n of Government contracts) is amended by a d d i n g a t the end thereof the following new s e c t i o n: "SEC. 1482. READJUSTMENT FOR REPAYMENTS MADE PURSUANT TO PRICE REDETERMINATIONS. " (a) GENERAL RULE. — I f, pursuant to a p r i c e r e determination p r o vision in a s u b contract to which t h i s section a p p l i e s, a r e payment w i t h respect to a n a m o u n t p a i d under the s u b contract is m a d e by one party to the s u b contract ( h e r e i n after r e f e r r e d to as the ' p a y o r ') to a n other party to the s u b contract ( h e r e i n after r e f e r r e d to as the 'payee'), then— " (1) the tax of the p a y o r for p r i o r tax a b l e year s shall be rec o m p u t e d as if the a m o u n t received o r accrued by h i m w i t h respect to which the r e payment is m a d e d i d not include a n a m o u n t equal to the a m o u n t of the r e payment, and " (2) the tax of the p a y e e for p r i o r tax a b l e year s s h a l l be recomp u t e d as if the a m o u n t p a i d or i n c u r r e d by h i m w i t h respect to which the r e payment is m a d e d i d not include a n a m o u n t e q u a l to the a m o u n t of the r e payment. "(b)

26 USC 1481.

SUBCONTRACTS

TO W H I C H

SECTION

APPLIES.—Subsection

(a)

shall a p p l y only to a s u b contract which is subject to r e n e g o t i a t i o n under the applicable Federal r e n e g o t i a t i o n act. " (c) L I M I T A T I O N. — S u b s e c t i o n (a) shall not a p p l y to any r e payment to the e x t e n t that section 1481 a p p l i e s to the a m o u n t r e p a i d. "(d)

T R E A T M E N T I N Y E A R OF R E P A Y M E N T. — The a m o u n t of

any

r e payment to which subsection (a) a p p l i e s shall not be t a k e n i n to account by the p a y o r or p a y e e for the tax a b l e year in which the r e payment is m a d e; b u t any o v e r payment or under payment of tax r e s u l t i n g from the application of subsection (a) shall be t r e a t e d as if it were a n o v e r payment or under payment for the tax a b l e year i n which the r e payment is m a d e. " (b) TABLE OF C O N T E N T S. — The table of sections for such subchapter is amended by a d d i n g a t the end thereof the following: "Sec. 1482. Readjustment for repayments made pursuant to price redeterminations." (c) EFFECTIVE D A T E. — The amendments m a d e by subsections (a) and (b) shall a p p l y only w i t h respect to s u b contracts entered i n to after December 31, 1957.

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