Page:United States Statutes at Large Volume 94 Part 1.djvu/354

 94 STAT. 304

26 USC 472.

PUBLIC LAW 96-223—APR. 2, 1980 deficiency is mailed, or claim for refund is filed, within such period. "(2) INTEREST.—Solely for purposes of determining interest on any overpayment or underpayment attributable to an adjustment made under this section, such overpayment or underpayment shall be treated as an overpayment or underpa5mient (as the case may be) for the replacement year. "(g) COORDINATION WITH SECTION 472.—The Secretary shall prescribe such regulations as may be necessary to coordinate the provisions of this section with the provisions of section 472." (2) CLERICAL AMENDMENT.—The table of sections for subpart D of part II of subchapter E of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 473. Qualified liquidations of LIFO inventories."

26 USC 473 note. Ante, p. 302.

(3) EFFECTIVE DATE.—The amendments made by paragraphs (1) and (2) shall apply to qualified liquidations (within the meaning of section 473(c) of the Internal Revenue Code of 1954) in taxable years ending after October 31, 1979. (b) RECOGNITION OF GAIN ON CERTAIN DISPOSITIONS OF LIFO INVENTORIES.— (1) AMENDMENT OF SECTION 336.—Section 336 (relating to

26 USC 336. 26 USC 453.

general rule for liquidations) is amended to read as follows: "SEC. 336. DISTRIBUTIONS OF PROPERTY IN LIQUIDATION. "(a) GENERAL RULE.—Except as provided in subsection (b) of this section and in section 453(d) (relating to disposition of installment obligations), no gain or loss shall be recognized to a corporation on the distribution of property in partial or complete liquidation. "(b) LIFO INVENTORY.— "(1) IN GENERAL.—If a corporation inventorying goods under the LIFO method distributes inventory assets in partial or complete liquidation, then the LIFO recapture amount with respect to such assets shall be treated as gain to the corporation recognized from the sale of such inventory assets. "(2)

26 USC 334. 26 USC 332.

26 USC 471.

26 USC 472.

26 USC 311. 26 USC 337.

EXCEPTION WHERE BASIS DETERMINED UNDER SECTION

334(b)(1).—Paragraph (1) shall not apply to any liquidation under section 332 for which the basis of property received is determined under section 334(b)(1). "(3) LIFO RECAPTURE AMOUNT.—For purposes of this subsection, the term 'LIFO recapture amount' means the amount (if any) by which— "(A) the inventory amount of the inventory assets under the first-in, first-out method authorized by section 471, exceeds "(B) the inventory amount of such assets under the LIFO method. "(4) DEFINITIONS.—For purposes of this subsection— "(A) LIFO METHOD.—The term 'LIFO method' means the method authorized by section 472 (relating to last-in, firstout inventories). "(B) OTHER DEFINITIONS.—The term 'inventory assets' has the meaning given to such term by subparagraph (A) of section 311(b)(2), and the term 'inventory amount' has the meaning given to such term by subparagraph (B) of section 311(b)(2) (as modified by paragraph (3) of section 311(b))." (2) SECTION 337 UQUIDATIONS.—

(A) Section 337 (relating to gain or loss on sales or exchanges in connection with certain liquidations) is

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