76 STAT.]
PUBLIC
LAW 87-834-OCT. 16, 1%2
1051
" (d) NONQUALIFIED WRITTEN NOTICE OF ALLOCATION.—For purposes of this subchapter, the term 'nonqualified written notice of allocation' means a written notice of allocation which is not described in subsection (c) or a qualified check which is not cashed on or before the 90th day after the close of the payment period for the taxable year for which the distribution of which it is a part is paid. "(e) DETERMINATION OF AMOUNT PAID OR EECEIVED.—For purposes
of this subchapter, in determining amounts paid or received— "(1) property (other than a written notice of allocation) shall be taken into account at its fair market value, and "(2) a qualified written notice of allocation shall be taken into account at its stated dollar amount." (b)
TECHNICAL AMENDMENTS.—
(1) Section 521(a) (relating to exemption of farmers' cooperatives from tax) is amended by striking out "section 522" each place it appears therein and inserting in lieu thereof "part I of subchapter T (sec. 1381 and following)". (2) Section 522 (relating to tax on farmers' cooperatives) is hereby repealed. (3) Section 6072(d) (relating to time for filing income tax returns of exempt cooperative associations) is amended to read as follows: " (d) RETURNS OF COOPERATIVE ASSOCIATIONS.—In the case of an income tax return of— "(1) an exempt cooperative association described in section 1 3 8 1 (a)(1), or
"(2) an organization described in section 1381(a)(2) which is under an obligation to pay patronage dividends (as defined in section 1388(a)) in an amount equal to at least 50 percent of its net earnings from business done with or for its patrons, or which paid patronage dividends in such an amount out of the net earnings from business done with or for patrons during the most recent taxable year for which it had such net earnings, a return made on the basis of a calendar year shall be filed on or before the 15th day of September following the close of the calendar year, and a return made on the basis of a fiscal year shall be filed on or before the 15th day of the 9th month following the close of the fiscal year." (4) The table of subchapters for chapter 1 is amended by adding at the end thereof the following:
26 USC 521. Ante, p. i04s. Repeal. ^^ "^^ ^^ 26 USC 6072.
Ante, p. 104S.
Ante, p. 1049.
"SUBCHAPTER T. Cooperatives and their patrons."
(5) The table of sections for part III of subchapter F of chapter 1 is amended by striking out the last line thereof. (c)
EFFECTIVE DATES.—
(1) FOR THE ct)OPERATivES,—Except as provided in paragraph (3), the amendments made by subsections (a) and (b) shall apply to taxable years of organizations described in section 1381(a) of the Internal Revenue Code of 1954 (as added by subsection (a)) beginning after December 31, 1962. (2) FOR THE PATRONS.—Except as provided in paragraph (3), section 1385 of the Internal Revenue Code of 1954 (as added by subsection (a)) shall apply with respect to any amount received from any organization described in section 1381(a) of such Code, to the extent that such amount is paid by such organization in a taxable year of such organization beginning after December 31, 1962. (3) APPLICATION or EXISTING LAW.—In the case of any money, written notice of allocation, or other property paid by any organization described in section 1381(a) —
Ante, p. io48.
�
