Page:United States Statutes at Large Volume 85.djvu/566

 536 Post, p. 538.

PUBLIC LAW 92-178-DEC. 10, 1971

[85 STAT.

ijj section 993(f)) of such corporation consist of qualified export receipts (as defined in section 993(a)), " (B) the adjusted basis of the qualified export assets (as defined in section 993(b)) of the corporation at the close of of the taxable year equals or exceeds 95 percent of the sum of the adjusted basis of all assets of the corporation at the close of the taxable year, " (C) such corporation does not have more than one class of stock and the par or stated value of its outstanding stock is at least $2,500 on each day of the taxable year, and " (D) the corporation has made an election pursuant to subsection (b) to be treated as a D I S C and such election is in effect for the taxable year, "(2) STATUS AS D I S C AFTER HAVING FILED A EETURN AS A DISC.—The Secretary or his delegate shall prescribe regulations setting forth the conditions under and the extent to which a corporation which has filed a return as a D I S C for a taxable year shall be treated as a D I S C for such taxable year for all purposes of this title, notwithstanding the fact that the corporation has failed to satisfy the conditions of paragraph (1). "(3) 'FORMER D I S C. — For purposes of this title, the term 'former D I S C means, with respect to any taxable year, a corporation which is not a D I S C for such year but was a D I S C in a preceding taxable year and at the beginning of the taxable year has undistributed previously taxed income or accumulated D I S C income. "(b)

ELECTION.— "(1) ELECTION.—

" (A) An election by a corporation to be treated as a D I S C shall be made by such corporation for a taxable year at any time during the 90-day period immediately preceding the beginning of the taxable year, except that the Secretary or his delegate may give his consent to the making of an election at such other times as he may designate. " (B) Such election shall be made in such manner as the Secretary or his delegate shall prescribe and shall be valid only if all persons who are shareholders in such corporation on the first day of the first taxable year for which such election is effective consent to such election. "(2) EFFECT OF ELECTION.—If a corporation makes an election under paragraph (1), then the provisions of this part shall apply to such corporation for the taxable year of the corporation for which made and for all succeeding taxable years and shall apply to each person who at any time is a shareholder of such corporation for all periods on or after the first day of the first taxable year of the corporation for which the election is effective. "(S) TERMINATION OF ELECTION.—

" (A) REVOCATION.—An election under this subsection made by any corporation may be terminated by revocation of such election for any taxable year of the corporation after the first taxable year of the corporation for which the election is effective. A termination under this paragraph shall be effective with respect to such election— "(i) for the taxable year in which made, if made at any time during the first 90 days of such taxable year, or "(ii) for the taxable year following the taxable year in which made, if made after the close of such 90 days, and for all succeeding taxable years of the corporation. Such termination shall be made in such manner as the Secretary or his delegate shall prescribe by regulations.

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