Page:United States Statutes at Large Volume 90 Part 2.djvu/320

 90 STAT. 1788 26 USC 1311. 26 USC 1315. 26 USC 1321.

26 USC 1331-1337. Effective date. 26 USC 1331 note. 26 USC 1341, 26 USC 1342.

PUBLIC LAW 94-455—OCT. 4, 1976 (142) AMENDMENT OF SECTION isii.—Paragraphs (2)(A), (2) (B), and (3) of section 1311(b) (relating to mitigation of effect of limitations) are each amended by striking out "Tax Court of the United States" and inserting in lieu thereof "Tax Court"'. (143) REPEAL OF SECTION isis.—Section 1315 (relating to effective date of part II of subchapter Q of chapter 1) is repealed. (144) REPEAL OF SECTION 1321.—Part III of subchapter Q of chapter 1 (relating to involuntary liquidation of L I F O inventories) is repealed. (145) REPEAL OF SECTIONS 1331 THROUGH 1337.—

(A) Part IV of subchapter Q of chapter 1 (relating to war loss recoveries) is repealed. (B) The repeal by subparagraph (A) shall apply with respect to war loss recoveries in taxable years beginning after December 31, 1976. (146) AMENDMENT OF SECTION 1341.—Section 1341(b)(2) (relating to claim of right) is amended by striking out the last sentence. (147) REPEAL OF SECTION 1342.—Section 1342 (relating to computation of tax on certain amounts recovered as a result of a patent infringement suit) is repealed. (148) REPEAL OF SECTION 134 6.—Section 1346 (relating to

26 USC 1346. 26 USC 1372.

Regulations.

recovery of unconstitutional Federal taxes) is repealed. (149) AMENDMENTS OF SECTION 1372.— (A) Section 1372(b)(1) (relating to effect of election under subchapter S) is amended by striking out "(other than the tax imposed by section 1378)" and inserting in lieu thereof "(other than as provided by section 58(d)(2) and by section 1378)". (B) Section 1372(c) (relating to subchapter S elections by small business corporations) is amended to read as follows: "(c) WHERE AND How MADE.—An election under subsection (a) may be made by a small business corporation for any taxable year at any time during the first month of such taxable year, or at any time during the month preceding such first month. Such election shall be made in such manner as the Secretary shall prescribe by regulations." (C) Section 1372 is amended by striking out subsection (g) (relating to certain elections for years beginning before 1961). (150) AMENDMENTS OF SECTION 1374.—

26 USC 1374.

(A) Section 1374(b) (relating to net operating losses of subchapter S corporations) is amended by adding at the end thereof the following new sentence: "The deduction allowed by this subsection shall, for purposes of this chapter, be considered as a deduction attributable to a trade or business carried on by the shareholder." (B) Subsection (d) of section 1374 (relating to treatment of net operating losses of subchapter S corporations) is repealed. (151) AMENDMENTS OF SECTION 1375.—

26 USC 1375.

(A) The heading of subsection (b) of section 1375 is amended by striking^ out "RECEIVED CREDIT NOT ALLOWED" and inserting in lieu thereof " N O T TREATED AS SUCH FOR CERTAIN PURPOSES".

(B) Section 1375(f) (relating to elections as to certain distributions) is amended by striking out paragraph (3).

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