Page:United States Statutes at Large Volume 88 Part 2.djvu/795

 88 STAT. ]

PUBLIC LAW 93-625-JAN. 3, 1975

2111

of the amount in the account described in subsection (a)(1) at the close of the taxable year (after making the additions ,; and charges for such taxable year provided in subsection (a)) over the amount in the suspense account at the beginning of the taxable year. "(3) Section 381 ACQUISITIONS.—The application of this subsection to any acquisition to which section 381(a) applies shall be ^e use 38i. determined under regulations prescribed by the Secretary or his delegate. " (d) ELECTION.—An election under this section shall be made at such time and in such manner as the Secretary or his delegate may by regulations prescribe. " (e) CHANGES I N ACCOUNTING METHOD.— " (1) ESTABLISHMENT OF ACCOUNT NOT CONSIDERED CHANGE.—

The establishment of an account described in subsection (a)(1) shall not be considered a change in method of accounting for purposes of section 446(e) (relating to requirement respecting change of accounting method), and no adjustment shall be required under section 481 by reason of the establishment of such account. "(2)

CERTAIN

TAXPAYERS

TREATED

AS HAVING

26 USC 446 26 USC 481

INITIATED

CHANGE.—If the taxpayer treated vacation pay under section 97 26 USC 162 of the Technical Amendments Act of 1958, as amended, for his ote. last taxable year ending before January 1, 1973, and if such taxpayer fails to make an election under this section for his first taxable year ending after December 31, 1972, then, for purposes of section 481, such taxpayer shall be treated as having initiated 26 USC 481 a change in method of accounting with respect to vacation pay for his first taxable year ending after December 31, 1972." (b) CLERICAL AMENDMENT.—The table of sections for such subpart C is amended by adding at the end thereof the following: "Sec. ^63. Accrual of vacation pay." (c) CERTAIN INCREASES I N SUSPENSE ACCOUNT INCLUDED I N GROSS INCOME.—

(1) Section 81 is amended to read as follows: "SEC. 81. CERTAIN INCREASES IN SUSPENSE ACCOUNTS. "There shall be included in gross income for the taxable year for which an increase is required— " (1) CERTAIN DEALERS' RESERVES.—The amount of any increase in the suspense account required by paragraph (4)(B) (ii) of section 166(g) (relating to certain debt obligations guaranteed by dealers). "(2) VACATION PAY.—The amount of any increase in the suspense account required by paragraph (2)(B) of section 463(c) (relating to accrual of vacation p a y). " (2) The table of sections for part II of subchapter B of chapter 1 is amended by striking out the item relating to section 81 and inserting in lieu thereof the following: "Sec. 81. Certain increases in suspense accounts.". (d)

EFFECTIVE

DATES.—

(1) Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1973.

26 USC si.

26 USC i66. Ante, p. 2109.

26 USC 463 note.

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