Page:United States Statutes at Large Volume 90 Part 1.djvu/1563

 PUBLIC LAW 94-452—OCT. 2, 1976

90 STAT. 1513

" (b) LIMITATIONS.— " (1) TREATMENT NOT AVAILABLE TO TAXPAYER FOR BOTH BANK PROPERTY AND PROHIBITED PROPERTY. T h i s Sectioil s l i a l l IlGt a p p l y

to any sale of prohibited property if the taxpayer (or a corporation h a v i n g control of the taxpayer or a subsidiary of the taxpayer) has made an election under subsection (a) with respect to bank property or has made any distribution pursuant to section 1101 (b). T h i s section shall not apply to bank property if the taxpayer (or a corporation having control of the taxpayer or a subsidiary of the tax p a y e r) has made an election under subsection (a) with respect to prohibited property or has made any distribution pursuant to section 1101(a). 26 USC 1101. "(2)

TREATMENT NOT AVAILABLE FOR CERTAIN INSTALLMENT

SALES.—No election may be made under subsection (a) with respect to a sale if the income from such sale is being returned a t the time and in the manner provided in section 453 (relating to 26 USC 453. installment m e t h o d). " (c) ACCELERATION OF P A Y M E N T S. — I f a n election is m a d e under

subsection (a) and before the tax attributable to such sale is paid in full— " (1) any installment under this section is not paid on or before the date fixed by this section for its payment, or " (2) the Board fails to make a certification similar to the applicable certification provided in section 1101(e) within the time prescribed therein (for this purpose treating the last such sale as constituting the last distribution), then the extension of time for payment of tax provided in this section shall cease to apply, and any portion of the tax payable in installments shall be paid on notice and demand from the Secretary or his delegate. " (d) PRORATION OF D E F I C I E N C Y TO INSTALLMENTS.—If an election

is made under subsection (a) and a deficiency attributable to the sale has been assessed, the deficiency shall be prorated to such installments. The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid on notice and demand from the Secretary or his delegate. This subsection shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax. " (e) BOND M A Y B E REQUIRED.—If a n election is made under this section, section 6165 shall apply as though the Secretary were extending 26 USC 6165, the time for payment of the tax. " (f) DEFINITIONS. — For purposes of this section— " (1) T E R M S HAVE MEANINGS GIVEN TO TTI7.M BY SECTION i i o s. —

The terms 'qualified bank holding corporation', ' B a n k H o l d i n g Company Act', ' B o a r d '; 'control', and 'subsidiary' have the respective meanings given to such terms by section 1103. ''(2)

PROHIBITED PROPERTY.—The term ' p r o h i b i t e d

property'

means property held by a qualified bank holding corporation which could be distributed without recognition of gain under section 1 1 0 1 (a)(1). " (3) B A N K PROPERTY.—The term 'bank property' means property held by a qualified bank holding corporation which could be distributed without recognition of gain under section 1101(b)(1). " (g) CROSS REFERENCES.—

"(1) Security.—For authority of the Secretary or his delegate to require security in the case of an extension under this section, see section 6165.

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