52 STAT.] 75TH CONG. , 3D SESS.-CH. 289--MAY 28, 1938 nection with a reorganization, and immediately after the transfer an interest or control in such property of 50 per centum or more remained in the same persons or any of them, or "(B) in a taxable year beginning after December 31, 1935, by a corporation in connection with a reorganization, then the basis shall be the same as it would be in the hands of the transferor, increased in the amount of gain or decreased in the amount of loss recognized to the transferor upon such transfer under the law applicable to the year in which the transfer was made. This paragraph shall not apply if the property acquired consists of stock or securities in a corporation a party to the reorganization, unless acquired by the issuance of stock or securities of the transferee as the consideration in whole or in part for the transfer." (b) The amendment made by subsection (a) shall be applied in the computation of net income for taxable years beginning after December 31, 1935, and before January 1, 1938. SEC. 808 . BASIS OF PROPERTY ACQUIRED IN CONNECTION WITH LIQUIDATION. (a) Section 113 (a) (15) of the Revenue Act of 1936 is amended by inserting at the end thereof the following: "If upon the com- plete liquidation of a corporation within the meaning of section 112 (b) (6) of the Revenue Act of 1934, as amended, in case the first of the series of distributions in liquidation was made after August 29, 1935, and the last of the series of distributions was made before June 23, 1936, if with respect to all the property (other than money) received by a corporation prior to June 23, 1936, and in a taxable year beginning after December 31, 1935, no gain or loss would have been recognized on the receipt of such property under such section 112 (b) (6), the basis of such property in the hands of such cor- poration shall be the basis prescribed by the Revenue Act of 1934, as amended, if such corporation (within 180 days after the date of the enactment of the Revenue Act of 1938) elects, under regulations prescribed by the Commissioner, to have such basis apply.' SEC. 809. OVERPAYMENTS FOUND BY BOARD OF TAX APPEALS. (a) The last sentence of section 322 (d) of the Revenue Act of 1936 and of the Revenue Act of 1934, are amended to read as follows: "No such credit or refund shall be made of any portion of the tax unless the Board determines as part of its decision that such portion was paid within three years before the filing of the claim or the filing of the petition, whichever is earlier, or that such portion was paid after the mailing of the notice of deficiency; except that where the decision of the Board is rendered before the expiration of thirty days after the date of the enactment of the Revenue Act of 1938, the credit or refund may be made of any portion paid after the mailing of the notice of deficiency." (b) The last sentence of section 528 (d) of the Revenue Act of 1932, as amended, is amended to read as follows: "No such credit or refund shall be made of any portion of the tax unless the Board determines as part of its decision that such portion was paid within three years before the filing of the claim or the filing of the petition, whichever is earlier, or that such portion was paid after the mailing of the notice of deficiency; except that where the decision of the Board is rendered before the expiration of thirty days after the date of the enactment of the Revenue Act of 1938, the credit or 575 Application of amendment. Basis of property ac- quired in connection with liquidation. 49 Stat. 1684. 26 U. S. C., Supp. II, § 113 (15). 49 Stat. 1020. 26 U. S. C., Supp. III, § 112 (b) (6). Overpayments found by Board. 48 Stat. 761; 49 Stat. 1731. 26U. S. C. §322(d); Supp. III, § 322 (d). Time provisions. 47 Stat. 258 . 26U.S . C. 1 577(d).
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