Page:United States Statutes at Large Volume 76.djvu/938

 890

Ante, p. 6 ^9. 2$ use 172.

PUBLIC LAW 87-794-OCT. 11^ 1962

[76 STAT.

" (C) I n the case of a taxpayer which is a regulated transportation corporation (as denned in subsection (j)(l)), a j^g^ operating loss for any taxable year ending after Decern-, ber 31, 1955, shall (except as provided in subsection (j)) be! a net operating loss carryover to each of the 7 taxable years following the taxable year of such loss. " (2) AMOUNT OF CARRYBACKS AND CA'RRYGVERS.—Except as provided in subsections (i) and (j), the entire amount of the net operating loss for any taxable year (hereinafter in this section referred to as the 'loss year') shall be carried to the earliest of the taxable years to which (by reason of paragraph (1)) such loss may be carried. The portion of such loss which shall be carried to each of the other taxable years shall be the excess, if any, of the amount of such loss over the sum of the taxable income for each of the prior taxable years to which such loss may be carried. For purposes of the preceding sentence, the taxable income for any such prior taxable year shall be computed— " (A) with the modifications specified in subsection (d) other than paragraphs (1), (4), and (6) thereof; and " (B) by determining the amount of the net operating loss deduction without regard to the net operating loss for the loss year or for any taxable year thereafter, and the taxable income so computed shall not be considered to be less than zero. "(3)

SPECIAL RULES.—

" (A) Paragraph (1)(A) (ii) shall apply only if— " (i) there has been filed, at such time and in such manner EIS may be prescribed by the Secretary or his delegate, a notice of filing of the application under section 317 of the Trade Expansion Act of 1962 for tax assistance, and, after its issuance, a copy of the certification under such section, and "(ii) the taxpayer consents in writing to the assessment, within such period as may be agreed upon with the Secretary or his delegate, of any deficiency for any year to the extent attributable to the disallowance of a deduction previously allowed with respect to such net operating loss, even though at the time of filing such consent the assessment of such deficiency would otherwise be prevented by the operation of any law or rule of law. " (B) I n the case of— 5 " (i) a partnership and its partners, or "(ii) an electing small business corporation under subchapter S and its shareholders, paragraph (l)(A) ( i i) shall apply as determined under regulations prescribed by the Secretary or his delegate. Such paragraph shall apply to a net operating loss of a partner or such a shareholder only if it arose predominantly from losses in respect of which certifications under section 317 of the Trade Expansion Act of 1962 were filed under this section." (c) Subsection (h) of section 6501 of the Internal Revenue Code of f2 Slat. 1663. 1954 (relating to limitations on assessment and collection in the case 26 tjsc 6501. QJ j^g^ operating loss carrybacks) is amended by inserting before the period: ", or within 18 months after the date on which the taxpayer sstpra. files in accordance with section 172(b)(3) a copy of the certification (with respect to such taxable year) issued under section 317 of the Trade Expansion Act of 1962, whichever is later".

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