57 STAT.] 78TH CONG., IST SESS.-CH. 120 -JUNE 9, 1943 (2) JOINT RETURNS.-I f the taxpayer either for the taxable year 1942 or for the taxable year 1943 makes a joint return with his spouse, the taxes of the spouses for the taxable year for which a joint return is not made shall be aggregated for the purposes of subsections (a), (b), and (c), and in case the taxable year for which a joint return is not made is the taxable year 1943, the liability for the increase in the tax for the taxable year 1943 under subsections (b) and (c), shall be joint and several. (3) FOREIGN TAX CREDIT AND APPLICATION OF SECTIONS 105, 106 , AND 107-The credit against the tax imposed by Chapter 1 of the Internal Revenue Code for the taxable year 1943 allowed by section 31 of such chapter (relating to taxes of foreign countries 53 St and of possessions of the United States), shall be determined . without regard to subsections (a), (b), and (c). Sections 105, 53 Stat. 36 , 878. 26 U. S. C. §§105, 106, and 107 of such chapter (relating to limitations on tax) 106; Supp. II, 107 . shall be applied without regard to subsections (a), (b), and (c). (4) SECTION 107 INCOME ATTRIBUTED TO BASE TEAR.-That por- tion of the compensation which is received or accrued in the tax- able year 1942 (if the tax for such year is not greater than that for the taxable year 1943), or in the taxable year 1943 (if the tax for such year is less than that for the taxable year 1942), and which under section 107 of the Internal Revenue Code is attrib- 83 Stt. 8 78. uted to the base year, shall for the purposes of subsection (c) be I. §107 excluded in computing the surtax net income for the taxable year 1942 or 1943, as the case may be, and be included in computing the surtax net income for the base year. (5) PARTNERSIIP BUSINESS FORMERLY OPERATED AS CORPORA- TION. -If, during the base year of any individual, such individual was a shareholder in a corporation and if substantially all of the assets of such corporation were at any time prior to May 1, 1943, acquired by such individual or a partnership of which he is a partner pursuant to the complete liquidation of such corporation, and if at all times after such liquidation up to and including the taxable year 1942 (if subsection (a) is applicable) or the taxable year 1943 (if subsection (b) is applicable) the trade or business of such corporation was carried on by such individual or partner- ship, for the purposes of subsection (c) such individual may compute his surtax net income for the base year as if the earn- ings and profits of the corporation for the taxable year ending with or within the base year had all been distributed as divi- dends at the end of such taxable year. If the interest of such individual in the partnership is proportionately less than his interest in the corporation, his distributive share of such divi- dends shall for the purposes of this paragraph be adjusted to reflect such difference. (6) CERTAIN PORTIONS OF INCREASE IN 1943 TAX NOT PART OF ESTIMATED TAX.- The amount by which the tax for the taxable year 1943 is increased under subsection (a), (b) (2), or (c) shall not be considered to be a part of the tax for such taxable year for the purposes of sections 58, 59, 60, and 294 (a) (3), (4), and Ate, pp. 141 -4U (5) of the Internal Revenue Code. (7) TAXPAYER DYING IN TAXABLE YEAR 1942.-If the individual dies during the taxable year 1942, subsections (a), (b), and (c) shall not apply. (e) EXTENSION OF TIME FOR PAYMENT OF PORTIONS OF INCREASE IN 1943 TAX.- (1) TWENTY-FrVE PER CENTUM INCREASE UNDER SUBSECTION (A) OR (B) -At the election of the taxpayer, made under regulations 147
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