Page:United States Statutes at Large Volume 95.djvu/360

 95 STAT. 334

Ante, p. 327.

PUBLIC LAW 97-34—AUG. 13, 1981 have this section apply to all regulated futures contracts held during such taxable year. (2) APPLICATION OF SECTION 1256.—If a taxpayer elects to have the provisions of this section apply to the taxable year described in paragraph (1).— (A) the provisions of section 1256 of the Internal Revenue Code of 1954 (other than section 1256(e)(2)(C)) shall apply to regulated futures contracts held by the taxpayer at any time during such taxable year, and (B) for purposes of determining the rate of tax applicable to gains and losses from regulated futures contracts held at any time during such year, such gains and losses shall be treated as gain or loss from a sale or exchange occurring in a taxable year beginning in 1982. (3) DETERMINATION OF DEFERRED TAX LIABILITY.—If the taxpayer makes an election under this subsection.— (A) the taxpayer may pay part or all of the tax for such year in two or more (but not exceeding five) equal installments; (B) the maximum amount of tax which may be paid in installments under this section shall be the excess of— (i) the tax for such year, determined by taking into account paragraph (2), over (ii) the tax for such year, determined by taking into account paragraph (2) and by treating all regulated futures contracts which were held by the taxpayer on the first day of the taxable year described in paragraph (1), and which were acquired before the first day of such taxable year, as having been acquired for a purchase price equal to their fair market value on the last business day of the preceding taxable year. (4) DATE FOR PAYMENT OF INSTALLMENT.—

26 USC 6601.

(A) If an election is made under this subsection, the first installment under subsection (a)(3)(A) shall be paid on or before the due date for filing the return for the taxable year described in paragraph (1), and each succeeding installment shall be paid on or before the date which is one year after the date prescribed for payment of the preceding installment. (B) If a bankruptcy case or insolvency proceeding involving the taxpayer is commenced before the final installment is paid, the total amount of any unpaid installments shall be treated as due and payable on the day preceding the day on which such case or proceeding is commenced. (5) INTEREST IMPOSED.—For purposes of section 6601 of the Internal Revenue Code of 1954, the time for payment of any tax with respect to which an election is made under this subsection shall be determined without regard to this subsection, (b) FORM OF ELECTION,—An election under this section shall be made not later than the time for filing the return for the taxable year described in subsection (a)(1) and shall be made in the manner and form required by regulations prescribed by the Secretary. The election shall set forth— (1) the amount determined under subsection (a)(3)(B) and the number of installments elected by the taxpayer, (2) each regulated futures contract held by the taxpayer on the first day of the taxable year described in subsection (a)(1), and the date such contract was acquired, (3) the fair market value on the last business day of such taxable year for each regulated futures contract described in subparagraph (B), and

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