Page:United States Statutes at Large Volume 74.djvu/167

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[74 Stat. 127]
[74 Stat. 127]
PUBLIC LAW 86-000—MMMM. DD, 1960

74 S T A T. ]

PUBLIC LAW 86-459-MAY 13, 1960

SEC. 5. DEFINITIONS; SPECIAL RULES. (a) DEALER RESERVE INCOME.—For purposes of this Act, the term "dealer reserve income" means— (1) that part of the consideration derived by any person from the sale or other disposition of customers' sales contracts, notes, and other evidences of indebtedness (or derived from customers' iinance charges connected with such sales or other dispositions) which is— (A) attributable to the sale by such person to such customers, in the ordinary course of his trade or business, of real property or tangible personal property, and (B) held in a reserve account, by the financial institution to which such person disposed of such evidences of indebtedness, for the purpose of securing obligations of such person or of such customers, or both; and (2) that part of the consideration— (A) derived by any person from a sale described in paragraph (1)(A) in respect of which part or all of the purchase price of the property sold is provided by a financial institution to or for the customer to whom such property is sold, or (B) derived by such person from finance charges connected with the financing of such sale, which is held in a reserve account by such financial institution for the purpose of securing obligations of such person or of such customer, or both. (b) FINANCIAL INSTITUTION.—For purposes of this Act, the term "financial institution" means any person regularly engaged in the business of acquiring evidences of indebtedness of the kind described in subsection (a)(1), or of financing sales of the kind described in subsection (a)(2), or both. (c) OTHER TERMS; APPLICATION or OTHER LAWS.—Except where otherwise distinctly expressed or manifestly intended, terms used in this Act shall have the same meaning as when used in the Internal Revenue Code of 1954 and all provisions of law shall apply with respect to this Act as if this Act were a part of such Code. (d) ACQUIRING CORPORATION.—In the case of the acquisition of assets of a corporation by another corporation in a distribution or transfer described in section 381(a) of the Internal Revenue Code of 1954, the acquiring corporation shall, for purposes of this Act, be treated as if it were the distributor or transferor corporation.

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^6 USC 3si.

(e) STATUTES OP LIMITATIONS.— (1) EXTENSION OF PERIOD FOR ASSESSMENT AND REFUND OR

CREDIT.—For purposes of applying sections 8 and 4 of this Act, if the assessment of any deficiency, or the refund or credit of any overpayment, for any taxable year was not prevented on June 2i, 1959, by the operation of any law or rule of law, but would be so prevented prior to September 1, 1961, the period within which such assessment, or such refund or credit, may be made shall not expire prior to September 1, 1961. An election by a taxpayer under section 3 or 4 of this Act shall be considered as a consent to the application of the provisions of this subsection. (2)

YEARS CLOSED BY CLOSING AGREEMENT OR COMPROMISE.—For

purposes of this Act, if the assessment of any deficiency, or the refund or credit of any overpayment, for any taxable year is prevented on the date of an election under section 3 or 4 of this Act by the operation of the provisions of chapter 74 of the Internal Revenue Code of 1954 (relating to closing agreements and com-

^6 USC 7121-