56 STAT.] 77TH CONG., 2 D SESS.-CH. 619--OCT. 21, 1942 SEC. 139. COMPENSATION FOR SERVICES RENDERED FOR A PERIOD OF THIRTY-SIX MONTHS OR MORE. (a) Section 107 is amended to read as follows: "SEC. 107. COMPENSATION FOR SERVICES RENDERED FOR A PERIOD OF THIRTY-SIX MONTHS OR MORE. "(a) PERSONAL SERVICES.-If at least 80 per centum of the total compensation for personal services covering a period of thirty-six calendar months or more (from the beginning to the completion of such services) is received or accrued in one taxable year by an indi- vidual or a partnership, the tax attributable to any part thereof which is included in the gross income of any individual shall not be greater than the aggregate of the taxes attributable to such part had it been included in the gross income of such individual ratably over that part of the period which precedes the date of such receipt or accrual. "(b) PATENT, COPYRIGHT, ETC.-For the purposes of this subsec- tion, the term 'artistic work or invention', in the case of an individual, means a literary, musical, or artistic composition of such individual or a patent or copyright covering an invention of or a literary, musi- cal, or artistic composition of such individual, the work on which by such individual covered a period of thirty-six calendar months or more from the beginning to the completion of such composition or invention. If, in the taxable year, the gross income of any individual from a particular artistic work or invention by him is not less than 80 per centum of the gross income in respect of such artistic work or invention in the taxable year plus the gross income therefrom in previous taxable years and the twelve months immediately succeeding the close of the taxable year, the tax attributable to the part of such gross income of the taxable year which is not taxable as a gain from the sale or exchange of a capital asset held for more than 6 months shall not be greater than the aggregate of the taxes attributable to such part had it been received ratably over that part of the period preceding the close of the taxable year but not more than thirty-six calendar months. "(c) FRACTIONAL PARTS OF A MONTH.-For the purposes of this sec- tion a fractional part of a month shall be disregarded unless it amounts to more than half a month in which case it shall be considered as a month." (b) The amendment made by subsection (a) shall be applicable to taxable years beginning after December 31, 1940, but with respect to a taxable year beginning after December 81, 1940, and not beginning after December 31, 1941, the period specified in such subsection shall be sixty months in lieu of thirty-six months, and the percentage specified in such subsection shall be 75 per centum in lieu of 80 per centum. SEC. 140. CERTAIN FISCAL YEAR TAXPAYERS. (a) COMPUTATION OF TAX FOR YEAR ENDING IN 1942. -The Internal Revenue Code is amended by inserting after section 107 the following new section: "SEC. 108. TAXABLE YEARS BEGINNING IN 1941 AND ENDING AFTER JUNE 30, 1942. "(a) GENERAL RULE. - In the case of a taxable year beginning in 1941 and ending after June 30, 1942, the tax imposed by sections 11, 12, 13, 14, and 15 shall be- "(1) CoRPORATIoNs. -In the case of a corporation an amount equal to the sum of- "(A) that portion of a tentative tax, computed without regard to section 140 of the Revenue Act of 1942, which the 837 53 Stat. 878. 26U. . o.O107. "Artistic work or invention. " Suprt. 53 Stat. 5. 26 U. S. C. i114; Snpp. I , i 12-14. Ante, pp. 802 86. Pot, pp. 84, 86. 881.
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