74 S T A T. ]
PUBLIC LAW 86-459-MAY 13, 1960
SEC. 4. ELECTION TO HAVE SECTION 481 NOT APPLY; PAYMENT IN INSTALLMENTS. (a) GENERAL RULE. — I f a person to whom this Act applies makes an election under this subsection, then for purposes of chapter 1 of the Internal Revenue Code of 1954 (and the corresponding provisions of prior law) a change in the treatment of dealer reserve income to a method proper under the accrual method of accounting shall be treated as not a change in method of accounting in respect of which section 481 of the Internal Revenue Code of 1954 applies. Any election under this subsection shall apply to all taxable years ending on or before June 22, 1959 (whether the provisions of the Internal Revenue Code of 1954 or the corresponding provisions of prior law apply), for which the assessment of any deficiency, or for which 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.
fl^icfV ei seq.
26 USC 481.
(b) ELECTION To P A Y TAX I N INSTALLMENTS.—
(1) ELIGIBILITY.—If the net increase in tax (as defined in paragraph (2)) which results solely from the effect of the election provided by subsection (a) exceeds $2,500, then the taxpayer may elect (at the time the election is made under subsection (a)) to pay in two or more (but not to exceed 10) equal annual installments any portion of such net increase which (on the date of such election) is unpaid. (2) N E T INCREASE IN TAX DEFINED.—For purposes of this section, the term "net increase in tax" means the amount (if any) by which— (A) the sum of the increases in tax (including interest) for all taxable years to which the election applies and which is attributable to the election, exceeds (B) the sum of the decreases in tax (including interest) for all taxable years to which the election applies and which is attributable to the election. For purposes of this paragraph, interest for the period before the date of the election shall be computed as provided in chapter 26 67 of the Internal Revenue Code of 1954 (or the corresponding 6602. u s e 6 6 0 1, provisions of prior revenue laws). (c) D U E DATE FOR INSTALLMENTS.—If an election is made under subsection (b), the first installment shall be paid on or before the date prescribed by section 6151(a) of the Internal Revenue Code of 26 USC 6151. 1954 for payment of the tax for the taxable year in which the election was made, and each succeeding installment shall be paid on or before the date which is one year after the date prescribed by this subsection for payment of the preceding installment. (d)
EFFECT OF SUBSEQUENT REDETERMINATION OF T A X. — (1) REDETERMINATION.—If—
(A) the taxpayer makes an election under subsection (b), and (B) there is a redetermination of the taxpayer's tax for any taxable year to which the election provided by subsection (a) applies, then the net increase in tax (as defined in subsection (b)(2)) shall be redetermined. (2) EFFECT OF INCREASE.—If the redetermination described in
paragraph (1)(B) results in an increase in the net increase in tax (as defined in subsection (b)(2)), the resulting increase shall be prorated to all the installments. The part of such resulting increase so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of such resulting increase