Page:United States Statutes at Large Volume 84 Part 1.djvu/1399

 84 STAT. ]

PUBLIC LAW 91-518-OCT. 30, 1970

deem necessary to inform Congress of the financial operations and condition of the Corporation, together with such recommendations with respect thereto as he may deem advisable. The report shall also show specifically any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made without authority of law. A copy of each report shall be furnished to the President, to the Secretary, and to the Corporation at the time submitted to the Congress.

1341

copies,

TITLE IX—TAX DEDUCTION FOR CERTAIN PAYMENTS TO THE N A T I O N A L R A I L R O A D P A S S E N G E R CORPORATION SEC. 901. (a) Part VIII of subchapter B of chapter 1 of the Internal Revenue Code of 1954 (relating to special deductions for esA Stat. 72; corporations) is amended by adding at the end thereof the following ^ \ r u s c 24'i-249. new section: "SEC. 250. CERTAIN PAYMENTS TO THE NATIONAL RAILROAD PASSEN<1ER CORPORATION. "(a)

GENERAL RULE.—If—

"(1) any corporation which is a common carrier by railroad (as defined in section 1(3) of the Interstate Commerce Act (49 U.S.C. 1 (3))) makes a payment in cash, rail passenger equip- '*^ Stat. 474; ment, or services to the National Railroad Passenger Corporation ^'^ ^'°'* *^^* (hereinafter in this section referred to as the 'Passenger Corporation') pursuant to a contract entered into under section 401(a) of the Rail Passenger Service Act of 1970, and "(2) no stock in the Passenger Corporation is issued at any time to such corporation in connection with any contract entered into under such section 401(a), then the amount of such payment shall (subject to subsection (c)) be allowed as a deduction for the taxable year in which it is made. "(b) W H E N PAYMENT Is MADE.—Under regulations prescribed by the Secretary or his delegate, a payment in rail passenger equipment shall be treated as made when title to the equipment is transferred, and a payment in services shall be treated as made when the services are rendered. "(c)

EFFECT OF CERTAIN SUBSEQUENT ACQUISITIONS OF STOCK.— " (1) DISALLOWANCE OF DEDUCTIONS.—If any deduction has been

allowed under subsection (a) to a corporation and such corporation (or a successor corporation) acquires any stock in the Passenger Corporation (other than m a transaction described in section 374 or 381) before the close of the 36-month period which eg A* lutV m. ' begins with the day on which the last payment is made to the 26 USC 374i38i. Passenger Corporation pursuant to the contract entered into under such section 401(a), then such deduction shall be disallowed (as of the close of the taxable year for which it was allowed under subsection (a)). " (2) COLLECTION or DEFICIENCY.—If any deduction is disal-

lowed by reason of paragraph (1), then the periods of limitation provided in sections 6501 and 6502 on the making of an assess- seljsc^esS^* ment and the collection by levy or a proceeding m court shall, 6502. with respect to any deficiency (including interest and additions to the tax) resulting from such a disallowance, include one year following the date on which the person acquiring the stock which results in the disallowance (in accordance with regulations prescribed by the Secretary or his delegate) notifies the Secretary or his delegate of such acquisition; and such assessment and col-

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