78 STAT. ]
PUBLIC LAW 88-272-FEB. 26, 1964
following the close of a taxable year with re«pect to which it was an electing small business corporation, and " (B) such distribution is made pursuant to a resolution of the board of directors of the corporation, adopted before the close of such taxable year, to distribute to its shareholders all or a part of the proceeds of one or more sales of capital assets, or of property described in section 1231(b), made during such taxable year, such distnbution shall, at the election of the corporation, be treated as a distribution of money made on the last day of such taxable year. "(2) SHAREHOLDERS.—An election under paragraph (1) with respect to any distribution may be made by a corporation only if each person who is a shareholder on the day the distribution is received— " (A) owns the same proportion of the stock of the corporation on such day as he owned on the last day of the taxable year of the corporation preceding the distribution, and " (B) consents to such election at such time and in such manner as the Secretary or his delegate shall prescribe by regulations. "(3) MANNER AND TIME or ELECITON.—An election under paragraph (1) shall be made in such manner as the Secretary or his delegate shall prescribe by regulations. Such election shall be made not later than the time prescribed by law for filing the return for the taxable year during which the sale was made (including extensions thereof) except that, with respect to any taxable year ending on or before the date of the enactment of the Revenue Act of 1964, such election shall l^e made within 120 days after such date." (c) EFFECTIVE DATES.—The amendment made by subsection (a) shall apply with respect to taxable years of corporations beginning after December 31, 1962. The amendment made by subsection (b) shall apply with respect to taxable years of corporations beginning after December 31,195Y. SEC. 234. REPEAL OF ADDITIONAL 2-PERCENT TAX FOR CORPORATIONS FILING CONSOLIDATED RETURNS. (a) REPEAL OF TAX.—Subsection (a) of section 1503 (relating to computation and payment of tax in case of consolidated returns) is S mended to read as follows: I " (a) GENERAL RULE.—In any case in which a consolidated return is made or is required to be made, the tax shall be determined, computed, assessed, collected, and adjusted in accordance with the regulations under section 1602 prescribed before the last day prescribed by law for the filing of such return." (b)
113
68 A Stat. 325. 26 USC 1231.
26 USC 1503.
^^ "^^ ^5°2.
TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 1603 is amended by striking out subsections (b) and (c) and by relettering subsection (d) as subsection (b). (2) Paragraph (3) of section 1503(b) (as relettered by paragraph (1)) IS amended to read as follows: "(3)
SPECIAL RULES.—
" (A) For purposes of p a r a ^ a p h (2), a corporation is a regulated public utility only if it is a regulated public utility within the meaning of subparagraph (A) (other than clauses (ii) and (iii) thereof) or (D) of section 7701(a) (33). For purposes of the preceding sentence, the limitation contamed m the last two sentences of section 7701(a) (33) shall be applied as if subparagraphs (A) through (F), inclusive, of section 7701(a) (33) were limited to subparagraphs (A)(i) and (D) thereof.
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