Page:United States Statutes at Large Volume 78.djvu/161

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

119

" (B) such corporation is a member of an affiliated group of corporations which makes a consolidated return under this 26 chapter (sec. 1501 and following) for such taxable year. seq. u s e 1501 et "(4) CONTROLLED GROUP NO LONGER I N EXISTENCE.—If such group is considered as no longer in existence with respect to any December 31. Such termination shall be effective with respect to the December 31 referred to in paragraph (1)(A), (2), (3), or (4), as the case may be. " (d) ELECTION AFTER TERMINATION.—If an election by a controlled group of corporations is terminated under subsection (c), such group (and any successor group) shall not be eligible to make an election under subsection (a) with respect to any December 31 before the sixth December 31 after the December 31 with respect to which such termination was effective. " (e) MANNER AND T I M E OF GIVING CONSENT AND MAKING ELECTION,

ETC.—An election under subsection (a)(1) or a termination under subsection (c)(1) (and the consent of each member of a controlled group of corporations which is required with respect to such election or termination) shall be made in such manner as the Secretary or his delegate shall by regulations prescribe, and shall be made at any time before the expiration of 3 years after— "(1) in the case of such an election, the date when the income tax return for the taxable year of the component member of the controlled group which has the taxable year ending first on or after the specified December 31 is required to be filed (without regard to any extensions of time), and " (2) in the case of such a termination, the specified December 31 with respect to which such termination was made. Any consent to such an election or termination, and a failure by a component member to file a statement that it does not consent to an election under this section, shall be deemed to be a consent to the application of subsection (g)(1) (relating to tolling of statute of limitations on assessment of deficiencies). " (f) SPECIAL RULES.—For purposes of this section— " (1) CONTINUING AND SUCCESSOR CONTROLLTJ) GROUPS.—The

determination of whether a controlled group of corpomtions— " (A) is considered as no longer in existence with respect to any December 31, or " (B) is a successor to another controlled group of corporations (and the effect of such determination with respect to any election or termination), shall be made under regulations prescribed by the Secretary or his delegate. For purposes of siibparagraph (B), such regulations shall be based on the continuation (or termination) of predominant equitable ownership. "(2) CERTAIN SHORT TAXABLE YEARS.—If one or more corporations have short taxable years which do not include a December 31 and are component members of a controlled group of corporations with respect to such taxable years (determined bjapplying section 1563(b) as if the last day of each such taxable ijf"*'' ^^' '^°' year were substituted for December 31), then an election by such group under this section shall apply with respect to such corporations with respect to such taxable years if— " (A) such election is in effect with respect to both the December 31 immediately preceding such taxable years and the December 31 immediatelj'- succeeding such taxable years, or " (B) such election is in effect with respect to the December 31 immediately preceding or succeeding such taxable 31-667 0-65—11

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