Page:United States Statutes at Large Volume 53 Part 2.djvu/402

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PUBLIC LAWS-CH. 247-JUNE 29, 1939 Taxable years to which applicable. Inventories in cer- tain industries. 52 Stat. 459. 26 U. S. C., Supp. IV, § 22 (d). Ante, p.877. I. R. C. §22(d) (1). Ante, p. 877 . I. R. C. §22(d)(2). Ante, p. 36. Cases where com- pensation is paid only on completion of serv- ices. Inclusion in gross income forany taxable year after 1938. Taxable years to which applicable. In either of the above cases, the change to, and the use of, the different method shall be in accordance with such regulations as the Commis- sioner, with the approval of the Secretary, may prescribe as necessary in order that the use of such method may clearly reflect income." (b) TAXABLE YEARS TO WHICH APPLICABLE. -The amendment made by subsection (a) shall be applicable to taxable years beginning after December 31, 1938. (c) AMENDMENT TO 1938 ACT.-Section 22 (d) of the Revenue Act of 1938 (relating to inventories in certain industries) is amended to read as follows: "(d) If the inventory method described in section 22 (d) (1), as amended, of the Internal Revenue Code is used for the first taxable year beginning after December 31, 1938, then, in determining income for the preceding taxable year, the closing inventory of such year of the goods specified in the application under section 22 (d) (2), as amended, of such Code shall be at cost." SEC. 220 . COMPENSATION FOR SERVICES RENDERED FOR A PERIOD OF FIVE YEARS OR MORE. (a) The Internal Revenue Code is amended by inserting after section 106 the following new section: "SEC. 107. COMPENSATION FOR SERVICES RENDERED FOR A PERIOD OF FIVE YEARS OR MORE. "In the case of compensation (a) received, for personal services rendered by an individual in his individual capacity, or as a member of a partnership, and covering a period of five calendar years or more from the beginning to the completion of such services, (b) paid (or not less than 95 per centum of which is paid) only on completion of such services, and (c) required to be included in gross income of such individual for any taxable year beginning after December 31, 1938, the tax attributable to such compensation shall not be greater than the aggregate of the taxes attributable to such compensation had it been received in equal portions in each of the years included in such period." (b) The amendment made by subsection (a) shall be applicable to taxable years beginning after December 31, 1938. SEC. 221. EXTENSION OF TIME OF ORDERS OF SECURITIES AND EXCHANGE COMMISSION. Securities anmd x- (a) Section 373 (a) of the Internal Revenue Code relating to oriers. the definition of orders of the Securities and Exchange Commission Ante,p. 102. I. R. c . 373(a). with respect to which Supplement R applies) is amended to read as follows: Term defined. "(a) The term 'order of the Securities and Exchange Commission' means an order (1) issued after May 28, 1938, and prior to January 1, 1941, by the Securities and Exchange Commission to effectuate the provisions of section 11 (b) of the Public Utility Holding Company 49 Stt. 2. upp Act of 1935, 49 Stat. 820 (U. S . C., Supp. III, Title 15, § 79 (b)), IV, 79k (b). or (2) issued by the Commission subsequent to December 31, 1940, in which it is expressly stated that an order of the character specified in clause (1) is amended or supplemented, and (3) which has become final in accordance with law." Taxabli years to (b) The amendment made by subsection (a) shall be applicable to taxable years beginning after December 31, 1938. 878 [53 STAT.