67 S T A T. ]
PUBLIC LAW 2 8 7 - A U G. 16, 1958
in such taxable year after December 31, 1952, is of 365 days. The amendments made by subsections (a) and (b) shall not affect the liability of any employer to deduct and withhold the tax imposed by section 1622 in the case of any remuneration paid before the first day of the first month beginning more than ten days after the date of the enactment of this Act. SEC. 205. NET OPERATING LOSS CARRY-OVERS. (a)
AMENDMENT OF SECTION 122 (b)
(2).—
619
^6 USC 1622.
26 USC 122.
(1) Section 122(b)(2) (relating to net operating loss carryover) is hereby amended by adding after subparagraph (D) the following new subparagraphs: " (E) Loss For Taxable Years of Corporations Beginning I n 1947 And Ending In 1948.—If a corporation (other than a corporation which commenced business after December 31, 1945) has a net operating loss for a taxable year beginning in 1947 and ending in 1948, subparagraph (C) shall apply as if the taxable year began after December 31, 1947; except that the net operating loss carry-over for the third succeeding taxable year shall not exceed that amount which bears the same ratio to the net operating loss as the number of days in the taxable year after December 31, 1947, bears to the total number of days in the taxable year. " (F) Loss in Case of Corporations Whose First Taxable Year Began in 1949 and Ended in 1950.—If the first tax*' ' able year of a corporation began in 1949 and ended in 1950, and if the corporation had a net operating loss for such first taxable year, there shall be a net operating loss carryover for the fourth and fifth succeeding taxable years. The amount of such carry-over shall be determined in accordance r..! with the first sentence of subparagraph (B); except that— "(i) such carry-over for the fourth succeeding taxable year shall not exceed so much of such net operating loss as is allocable to 1950, and "(ii) such carry-over for the fifth succeeding taxable year shall not exce*. d the amount by which the carryover for the fourth succeeding taxable year (as limited by clause (i) of this sentence) exceeds the net income for the fourth succeeding taxable year computed as provided in clauses (i) and (ii) of the first sentence of subparagraph (B). For the purposes of the preceding sentence, the portion of the net operating loss which is allocable to 1950 shall be an amount which bears the same ratio to such loss as the number of days in the taxable year after December 31, 1949, bears to the total number of days in the taxable year." (2) Subparagraph (A) of section 122(b)(2) is hereby amended by striking out "subparagraph (D), " and inserting in lieu thereof "subparagraphs (D) and (E), ". (3) The amendment made by paragraph (2), and subparagraph (E) of section 122(b)(2) of the Internal Revenue C o ^ as added by paragraph (1), shall apply with respect to taxable years ending after December 31, 1947. Subparagraph (F) of section 122(b)(2) of the Internal Revenue Code as added by paragraph (1) shall apply with respect to taxable years ending after December 31, 1949. (b)
SUCCESSOR RAILROAD CORPORATIONS.—
(1) Subsection (c) of the first section of the Act of July 15, 1947 (61 Stat. 324), relating to allowance to successor railroad corporations of benefits of certain carry-overs of predecessor corporations, is hereby amended to read as follows:
26 USC i22note.
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