Page:United States Statutes at Large Volume 92 Part 3.djvu/311

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2943

striking out "Secretary or his delegate" and inserting in lieu thereof "Secretary". (4) Paragraph (1) of section 7609(c) (defining summons to which 26 USC 7609. section applies) is amended by striking out "6427(e)(2)" and inserting in lieu thereof "6427(f)(2)". (m) INSPECTION BY COMMITTEE OF CONGRESS.—Paragraph (2) of

section 6104(a) (relating to inspection by committee of Congress) is 26 USC 6104. amended by striking out "Section 6103(d)" and inserting in lieu 26 USC 6103. thereof "Section 6103(f)". (n) AMENDMENT OF SECTION 6501.—Subsections (h), (j), and (o) of section 6501 are each amended by striking out "section 6213(b)(2)" 26 USC 6501. and inserting in lieu thereof "section 6213(b)(3)". (o) CONFORMING AMENDMENTS TO NEW DEFINITION OF TAXABLE INCOME.—

(1) Subparagraph (A) of section 443(b)(2) (relating to computa- 26 USC 443. tion based on 12-month period) is amended— (A) by striking out "taxable income" the second and third places it appears in clause (i) and inserting in lieu thereof "modified taxable income", and (B) by amending clause (ii) to read as follows: "(ii) the tax computed on the sum of the modified taxable income for the short period plus the zero bracket amount." (2) Paragraph (1) of section 443(b) is amended by striking out "gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions)" and inserting in lieu thereof "modified taxable income for such short period". (3) Subsection (b) of section 443 is amended by adding at the end thereof the following new paragraph: "(3) MODIFIED TAXABLE INCOME DEFINED.—For purposes of this subsection the term 'modified taxable income' means, with respect to any period, the gross income for such period minus the deductions allowed by this chapter for such period (but, in the case of a short period, only the adjusted amount of the deductions for personal exemptions).' (4) The amendments made by this subsection shall apply to 26 USC 443 note. taxable years beginning after December 31, 1976. (p) CONFORMING AMENDMENTS TO REPEAL OF SECTION 317 OF TRADE 26 USC 172. EXPANSION ACT OF 1962.— (1) AMENDMENTS OF SECTION 1 7 2. —

(A) Subparagraph (A) of section 172(b)(1) (relating to years 26 USC 172. to which loss may be carried) is amended to read as follows: "(A) Except as provided in subparagraphs (D), (E), (F), and (G), a net operating loss for any taxable year shall be a net operating loss carryback to each of the 3 taxable years preceding the taxable year of such loss." (B) Paragraph (3) of section 172(b) (relating to special rules) is amended by striking out subparagraphs (A) and (B) and by redesignating subparagraphs (C), (D), and (E) as subparagraphs (A), (B), and (C), respectively. (C) Subparagraph (B) of section 172(b)(3) (as redesignated by subparagraph (B)) is amended by striking out "subparagraph (C)(iii)" each place it appears and inserting in lieu thereof "subparagraph (A)(iii)".

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