Page:United States Statutes at Large Volume 85.djvu/588

 558

PUBLIC LAW 92-178-DEC. 10, 1971 "(24)

Ante, p. 553.

84 Stat, 1846.

Post, p. 560.

^68A Stat.^803; 83 Stat. 525.

" °'°' "^^

68A Stat, 7 7 1.

78 Stat. 858.

[85 STAT.

CREDIT UNDER SECTION 4O FOR WORK INCENTIVE PROGRAM

EXPENSES.—The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 40, and under such regulations as may be prescribed by the Secretary or his delegate) the items required to be taken into account for purposes of section 40 in respect of the distributor or transferor corporation." (4) Section 56(a)(2) (relating to imposition of minimum tax for tax preferences) is amended— (A) by striking out "and" at the end of clause (ii), (B) by striking out "; and" at the end of clause (iii) and inserting in lieu thereof a comma, and (C) by inserting after clause (iii) the following new clauses: "(iv) section 40 (relating to expenses of work incentive program), and "("^) section 41 (relating to contributions to candidates for public office); and". (5) Section 56(c)(1) (relating to tax carryovers) is amended— (A) by striking out "and" at the end of subparagraph (B), (B) by striking out "exceed" at the end of subparagraph (C), and (C) by inserting after subparagraph (C) the following new subparagraphs: " (D) section 40 (relating to expenses of work incentive program), and " (E) section 41 (relating to contributions to candidates for public office), exceed", (d) STATUTES OF LIMITATIONS AND INTEREST RELATING TO WORK INCENTIVE CREDIT CARRYBACKS.— (1) ASSESSMENT AND COLLECTION. S c c t i o U 6 5 0 1 ( r e l a t i n g tO

limitation on assessment and collection) is amended by adding at the end thereof the following new subsection: "(o) WORK INCENTIVE PROGRAM CREDIT CARRYBACKS.—In the case of a deficienc}^ attributable to the application to the taxpayer of a work incentive program credit carryback (including deficiencies which may be assessed pursuant to the provisions of section 6213(b) (2)), such deficiency may be assessed at any time before the expiration of the period withm which a deficiency for the taxable year of the unused work incentive program credit which results in such carryback may be assessed, or, with respect to any portion of a work incentive program credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, at any time before the expiration of the period within which a deficiency for such subsequent taxable year may be assessed." (^2) CREDIT O REFUND.—Section 6511(d) (relating to limitaR tions on credit or refund) is amended by adding at the end thereof the following new paragraph: "(7) SPECIAL PERIOD OF LIMITATION WITH RESPECT TO WORK INCENTIVE P R O G R A M CREDIT CARRYBACKS. " (A) PERIOD OF LIMITATION.—If the claim for credit or

refund relates to an overpayment attributable to a work incentive program credit carryback, 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 40th month (or 39th month, in the case of a corporation) following the end of the taxable year of the unused work incentive program credit which results in such carry-

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