Page:United States Statutes at Large Volume 92 Part 3.djvu/234

 92 STAT. 2866

PUBLIC LAW 95-600—NOV. 6, 1978

Ante, p. 2863.

«'r \ 26 CFR 1.451-4. 1 26 USC 1.

(i) the taxpayer makes an election under section 466 of the Internal Revenue Code of 1954 for his first taxable year ending after December 31, 1978, and (ii) for a continuous period of 1 or more taxable years each of which ends on or before December 31, 1978, the taxpayer used the method of accounting with respect to any type of discount coupons which was reasonably similar to the method of accounting provided by section 1.451-4 of the Income Tax Regulations, then the taxpayer may make an election under this paragraph to have the method of accounting which he used for such continuous period treated as a valid method of accounting with respect to each such type of discount coupons for such period for purposes of the Internal Revenue Code of 1954. A taxpayer may make an election under this paragraph with respect to only one such continuous period. (B) CERTAIN AMOUNTS TO WHICH METHOD OF ACCOUNTING

APPLIES.—An accounting method which the taxpayer used for the period described in subparagraph (A) may include— (i) costs of the type permitted by section 1.451-4 of the Income Tax Regulations to be included in the estimated average cost of redeeming coupons, plus (ii) any amount designated or referred to on the coupon payable by the taxpayer to the person who allowed the discount on a sale by such person to the user of the coupon. (C) SUSPENSE ACCOUNT NOT REQUIRED IN CERTAIN CASES.—A

taxpayer whose election under this paragraph applies to all types of discount coupons which he issued during the continuous period referred to in subparagraph (A)(ii) shall not be required to establish a suspense account under section 466(e) of the Internal Revenue Code of 1954. (D) RULES RELATING TO ELECTION UNDER THIS SUBSECTION.—

26 USC 1. '

An election under this paragraph may be made only before the expiration of the period for making an election under section 466 of the Internal Revenue Code of 1954 for the taxpayer's first taxable year ending after December 31, 1978. An election under this paragraph shall be made in such a manner and form as the Secretary of the Treasury or his delegate may by regulations prescribe. For purposes of the Internal Revenue Code of 1954, such an election shall be treated as a method of accounting, except that the approval of the Secretary of the Treasury or his delegate to the making of the election may not be required.

TITLE IV—CAPITAL GAINS; MINIMUM TAX; MAXIMUM TAX Subtitle A—Capital Gains SEC. 401. REPEAL OF ALTERNATIVE TAX ON CAPITAL GAINS OF INDIVIDUALS.

26 USC 1201.

(a) GENERAL RULE.—Section 1201 (relating to alternative tax) is amended— (1) by striking out subsections (b) and (c),._.

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