Page:United States Statutes at Large Volume 78.djvu/900

 858

fa'sta^ iS: 26 USC 812.* 76^sut!*891-^°^' Ante^p. 128'. 26 USC 6511.

PUBLIC LAW 88-571-SEPT. 2, 1964

[78 STAT.

for certain unused deductions), such deficiency may be assessed at any time before the expiration of the period within which a deficiency for the last taxable year to which the loss described in section 815(d)(5) ('^) ^^ carried under section 812(b)(2) may be assessed." (c) Section 6511(d) of such Code (relating to special rules applicable to income taxes with regard to limitations on credit or refund) J^ amended by adding at the end thereof the following new paragraph: "(6) SPECIAL PERIOD or LIMITATION WITH RESPECT TO REDUCTION OP POLICYHOLDERS SURPLUS ACCOUNT OF LIFE INSURANCE COMPANIES. " (A) PERIOD OF LIMITATION.—If the claim for credit or

refund relates to an overpayment arising by operation of section 815(d)(5) (relating to reduction of policyholders surplus account of life insurance companies for certain unused deductions), in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends with the expiration of the 15th day of the 39th month following the end of the last taxable year to which the loss described in section 8 1 5 (d)(5)(A) is carried under section 812(b)(2), or the period prescribed in subsection (c), in respect of such taxable year, whichever expires later. I n the case of such a claim, the amount of the credit or refund may exceed the portion of the tax paid within the period provided in subsection (b)(2) or (c), whichever is applicable, to the extent of the amount of overpayment arising by operation of section 815(d)(5). " (B) APPLICABLE RULES.—If the allowance of a credit or

26 USC 7122.

26 USC 660^1

refund of an overpayment arising by operation of section 815(d)(5) is otherwise prevented by operation of any law Qj. j.y]g Qjf lo^y^^ other than section 7122 (relating to compromises), such credit or refund may be allowed or made, if claim therefor is filed within the period provided in subparagraph (A) of this paragraph. I n the case of any such claim for credit or refund, the determination by any court, including the Tax Court, in any proceeding in which the decision of the court has become final, shall be conclusive except with respect to the effect of the operation of section 815(d)(5), to the extent such effect of the operation of section 815(d)(5) was not in issue in such proceeding.*' (^^ Section 6601(e) of such Code (relating to income tax reduced by carryback with regard to interest on underpayment, nonpayment, or extensions of time for payment of tax) is amended— (1) by striking out the heading and inserting in lieu thereof the following: " (e) INCOME TAX REDUCED BY CARRYBACK OR ADJUSTMENT FOR CERTAIN UNUSED DEDUCTIONS.—"; and

(2) by adding at the end thereof the following new paragraph: " (3) ADJUSTMENT FOR CERTAIN UNUSED DEDUCTIONS OF LIFE INSURANCE COMPANIES.—If the amount of any tax imposed by

26 USC 6611.

subtitle A is reduced by operation of section 815(d)(5) (relating to reduction of policyholders surplus account of life insurance companies for certain unused deductions), such reduction in tax shall not affect the computation of interest under this section for the period ending with the last day of the last taxable year to which the loss described in section 815(d)(5)(A) is carried under section 812(b)(2). " ^gj Section 6611(f) of such Code (relating to interest on refunds of income tax caused by carryback) is amended—

�