83 STAT. ]
PUBLIC LAW 91-172-DEC. 30, 1969
as greater than the amount of such loss which can be carried back to such preceding taxable year upon the application of such clause (ii)." ^ (b) SPECIAL RULES.—Section 1212(a) (relating to net capital losses of corporations) is amended by adding at the end thereof the following new paragraphs: "(3) ELECTING
SMALL
BUSINESS
639
^"'®' P- ^^S. ^^ "^^ ^^^^"
CORPORATIONS.—Paragraph
(1)(A) shall not apply to the net capital loss of a corporation for any taxable year for which it is an electing small business corporation under subchapter S, and a net capital loss of a corporation ^°^^' P- 654. (for a year for which it is not such an electing small business corporation) shall not be carried back under paragraph (1)(A) to a taxable year for which it is an electing small business corporation. "(4) SPECIAL RULES ON CARRYBACKS.—A net capital loss of a corporation shall not be carried back under paragraph (1)(A) to a taxable year— " (A) for which it is a foreign personal holding company (as defined in section 552); 68A Stat. 195. " (B) for which it is a regulated investment company (as 26 USC 851. defined in section 851); "(C) for which it is a real estate investment trust (as defined in section 856); or 74 Stat. ioo4. " (D) for which an election made by it under section 1247 is applicable (relating to election by foreign investment companies to distribute income currently)." (c) CERTAIN CORPORATE ACQUISITIONS.—Section 381(b)(3) (relating to operating rules for carryovers in certain corporate acquisitions) is amended by striking out "a net operating loss" and inserting in lieu thereof "a net operating loss or a net capital loss". (d) TENTATIVE CARRYBACK ADJUSTMENTS.—Section 6411 (relating g^^stat^^yaV^*^' to quick refunds in respect of tentative carryback adjustments) is amended— (1) by striking out the first two sentences of subsection (a) and inserting in lieu thereof "A taxpayer may file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by a net operating loss carryback provided in section ? lT2(b), by an investment credit carryback provided in section yg^gtalr'^v^^^' 46(b), or by a capital loss carryback provided in section 1212(a) Post, p. eee. (1), from any taxable year. The application shall be verified in 26 USC 6065. the manner prescribed by section 6065 in the case of a return of such taxpayer, and shall be filed, on or after the date of filing of the return for the taxable year of the net operating loss, net capital loss, or unused investment credit from which the carryback results and within a period of 12 months from the end of such taxable year (or, with respect to any portion of an investment credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, within a period of 12 months from the end of such subsequent taxable year), in the manner and form required by regulations prescribed by the Secretary or his delegate.", and (2) by striking out "net operating loss or unused investment credit", wherever such term appears in subsections (a)(1), (b), and, (c), and inserting in lieu thereof "net operating loss, net capital loss, or unused investment credit". (e) STATUTES OF LIMITATIONS AND INTEREST RELATING TO CAPITAL
Loss CARRYBACKS.— O H * >",3>J> f'l'
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