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PUBLIC LAW 86-459-MAY 13, 1960
[74 S T A T.
Public Law 86-459 May_13tJ_96.0 R. S684]
AN ACT To provide transitional provisions for the income tax t r e a t m e n t of dealer reserve income.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. Dealer Reserve This Act may be cited OS the "Dealer Reserve Income Adjustment Incoine Adjustment ., < < n/^rv?? • Act 6f 1960. Act of 1960". SEC. 2. PERSONS TO WHOM THIS ACT APPLIES. This Act shall apply to any person who, for his most recent taxable year ending on or before June 22, 1959— (1) computed, or was required to compute, taxable income under an accrual method of accounting, (2) treated any dealer reserve income, which should have been taken into account (under the accrual method of accounting) for such taxable year, as accruable for a subsequent taxable year, and (3) before September 1, 1960, makes an election under section 3(a) or 4 (a) of this Act. SEC. 3. ELECTION TO HAVE SECTION 481 APPLY. (a) GENERAL RULE. — I f —
68A jtaft.^160.
26 USC 481. o« TTcr. 4a
(1) for the year of the change (determined under subsection (b)), the treatment of dealer reserve income by any person to whom this Act applies is changed to a method proper under the accrual method of accounting (whether or not such person initiated the change), (2) such person makes an election under this subsection, and (3) such person does not make the election provided by section 4(a), then, for purposes of section 481 of the Internal Revenue Code of 1954, ^^^ change described in paragraph (1) shall be treated as a change in method of accounting not initiated by the taxpayer. (b) YEAR OF CHANGE, E T C. — I n applying section 481 of t h a I n t e r n a l
Revenue Code of 1954 for purposes of this section, the "year of the change" in the case of any person is— (1) except as provided in paragraph (2), the first taxable year ending after June 22, 1959, or (2) the earliest taxable year (whether the Internal Revenue Code of 1954 or the Internal Revenue Code of 1939 applies to such year) for which— (A) on or before June 22, 1959— (i) the Secretary of the Treasury or his delegate issued a notice of deficiency, or a written notice of a proposed deficiency, with respect to dealer reserve income, or (ii) such person filed with the Secretary or his delegate a claim for refund or credit with respect to dealer reserve income, and (B) the assessment of any deficiency, or the refund or credit of any overpayment, whichever is applicable, was not, on June 21, 1959, prevented by the operation of any law or rule of law. • For purposes of this section, section 481 of such Code shall be treated as applying to any year of the change to which the Internal Revenue Code of 1939 applies.
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