Page:United States Statutes at Large Volume 76.djvu/1095

 76 STAT.]

PUBLIC LAW 8 7 - 8 3 4 - O C T. 16, 1 % 2

1047

qualified check issued during the payment period shall be treated as an amount paid in money during such period if endorsed and cashed on or before the 90th day after the close of such period. "(e)

PRODUCTS MARKETED UNDER POOLING ARRANGEMENTS.—For

purposes of subsection (b), in the case of a pooling arrangement for the marketing of products, the patronage shall (to the extent provided in regulations prescribed by the Secretary or his delegate) be treated as patronage occurring during the taxable year in which the pool closes. "(f)

TREATMENT

OF

EARNINGS

RECEIVED

AFTER

PATRONAGE

OCCURRED.—If any portion of the earnings from business done with or for patrons is includible in the organization's gross income for a taxable year, after the taxable year during which the patronage occurred, then for purposes of applying subsection (b) to such portion the patronage shall, to the extent provided in regulations prescribed by the Secretary or his delegate, be considered to have occurred during the taxable year of the organization during which such earnings are includible in gross income. '*SEC. 1383. COMPUTATION OF TAX WHERE COOPERATIVE REDEEMS NONQUALIFIED WRITTEN NOTICES OF ALLOCATION. " (a) GENERAL RULE.—If, under section 1382(b)(2) or (c)(2)(B), a deduction is allowable to an organization for the taxable year for amounts paid in redemption of nonqualified written notices of allocation, then the tax imposed by this chapter on such organization for the taxable year shall be the lesser of the following: "(1) the tax for the taxable year computed with such deduction; or "(2) an amount equal to— " (A) the tax for the taxable year computed without such deduction, minus " (B) the decrease in tax under this chapter for any prior taxable year (or years) which would result solely from treating such nonqualified written notices of allocation as qualified written notices of allocation. "(b)

SPECIAL RULES.—

"(1) If the decrease in tax ascertained under subsection (a) (2)(B) exceeds the tax for the taxable year (computed without the deduction described in subsection (a)) such excess shall be considered to be a payment of tax on the last day prescribed by law for the payment of tax for the taxable year, and shall be refunded or credited in the same manner as i l it were an overpayment for such taxable year. "(2) For purposes of determining the decriease in tax under subsection (a)(2)(B), the stated dollar amount of any nonqualified written notice of allocation which is to be treated under such subsection as a qualified written notice of allocation shall be the amount paid in redemption of such written notice of allocation which is allowable as a deduction under section 1382(b)(2) or (c)(2)(B) for the taxable year. " (3) If the tax imposed fcy this chapter for the taxable year is the amount determined under subsection (a)(2), then the deduction described in subsection (a) shall not be taken into account for any purpose of this subtitle other than for purposes of this section.

Ante, p. io46.

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