CH. 1
NORMAL TAXES AND SURTAXES
133
their shareholders and security holders) shall be determined under the Internal Revenue Code of 1939 (in accordance with the contents of such ruhng) and not under this Code. (3) ELECTION TO HAVE 1954 CODE APPLY.—If—
(A) a plan of reorganization— (i) was adopted after March 1, 1954, and before June 22, 1954, or (ii) was adopted before June 22, 1954, in pursuance of a court order and all distributions under the plan occur after March 1, 1954, and before July 1, 1954, and (B) the corporations which are parties to the reorganization elect (at such time and in such manner as the Secretary or his delegate may by regulations prescribe) to have this paragraph apply, - then the tax treatment of such reorganization (as to the corporations which are parties to the reorganization and as to their shareholders and security holders) shall be determined under this Code and not under the Internal Revenue Code of 1939. SEC. 394. EFFECTIVE DATE OF PART V. (a) SECTION 381.—Except as otherwise provided in this subchapter,
section 381 shall apply to liquidations and reorganizations, the tax treatment of which is determined under this Code. (b) SECTION 382 (a).—For purposes of applying the special limitation on net operating loss carryovers in section 382(a), the beginning of the taxable years specified in clauses (i) and (ii) of section 382 (a)(1)(A) shall be considered to be the beginning of such taxable years or June 22, 1954, whichever occurs later. (c) SECTION 382 (b).^—Section 382(b) shall apply to reorganizations, the tax treatment of which is determined under this Code, SEC. 395. SPECIAL RULES FOR APPLICATION OF THIS SUBCHAPTER. (a) TAXABLE YEARS AFFECTED.^—Any provision of this subchapter
the applicability of which is stated in terms of a specific date shall apply with respect to taxable years ending after such date. Each provision shall, in the case of a taxable year subject to the Internal Revenue Code of 1939, be deemed to be included in the Internal Revenue Code of 1939, b u t shall apply only to taxable years ending after such specific date. (b) R E P E A L AND CONTINUANCE OF INTERNAL R E V E N U E CODE OF
1939.—To the extent that the provisions of this subchapter supersede the provisions of the Internal Revenue Code of 1939, such provisions of the Internal Revenue Code of 1939 are hereby repealed. The provisions of the Internal Revenue Code of 1939 shall continue to apply with respect to transactions for which rules are provided in this subchapter until such rules take effect.
§ 395(b)
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