PUBLIC LAW 87-312-SEPT. 26, 1961
[75 S T A T.
Public Law 87-312 September 26, 1961 [H. R. 7057]
AN ACT Relating to the determination of gross income from the property for taxable years prior to 1961 in the case of certain clays and shale which were used in the manufacture of certain clay products.
Be it enacted by the Senate and House of Representatives of the Income tax. United States of America in Congress assembled. That (a) ELECTION Clay products. FOR PAST YEARS.—In the case of brick and tile clay, fire clay, or shale used by the mineowner or operator in the manufacture of building or paving brick, drainage and roofing tile, sewer pipe, flower pots, and kindred products (without regard to the applicable rate of percentage depletion), if an election is made under subsection (c), for the stff^29*1^*'^°^'^* purpose of applying section 613(c) of the Internal Revenue Code of 1964 (and corresponding provision of the Internal Revenue Code of 26 USC 613. 1939) for each of the taxable years with respect to which the election is effective— (1) gross income from the property shall be 50 per centum of the amount for which the manufactured products are sold during the taxable year except that with respect to such manufactured products, gross income from the property shall not exceed an amount equal to $12.50 multiplied by the number of short tons used in the manufactured products sold during the taxable year, and (2) for purposes of computing the 50 per centum limitation under section 613(a) of the Internal Revenue Code of 1954 (or the corresponding provision of the Internal Revenue Code of 1939), the taxable income from the property (computed without allowance for depletion) shall be 50 per centum of the taxable income from the manufactured products sold during the taxable year (computed without allowance for depletion). (b) YEARS TO W H I C H APPLICABLE.—An election made under subsection (c) to have the provisions of this section apply shall be effective for all * axable years beginning before January 1, 1961, in respect of which— (1) the assessment of a deficiency, (2) the refund or credit of an overpayment, or (3) the commencement of a suit for recovery of a refund under 68A Stat. 874. section 7405 of the Internal Revenue Code of 1954, 26 USC 7405. is not prevented on the date of the enactment of this Act by the operation of any law- or rule of law. Such election shall also be effective for any taxable year beginning before January 1, 1961, in respect of which an assessment of a deficiency has been made but not collected on or before the date of the enactment of this Act. P u b l i c ation in (c) T I M E AND MANNER OF ELECTION.—An election to have the proF. R. visions of this section apply shall be made by the taxpayer on or before the sixtieth day after the date of publication in the Federal Register of final regulations issued under authority of subsection (f), and shall be made in such form and manner as the Secretary of the Treasury or his delegate shall prescribe by regulations. Such election, if made, may not be revoked. (d) STATUTES OF LIMITATION.—Notwithstanding any other law, the period within which an assessment of a deficiencv attributable to the election under subsection (c) may be made with respect to any taxable year for which such election is effective, and the period within which a claim for refund or credit of an overpayment attributable to the election under such subsection may be made with respect to any such taxable year, shall not expire prior to one year after the last day for making an election under subsection (c). An election by