112
PUBLIC LAW 89-389-APRIL 14, 1966
[80 STAT.
of such corporation at any time on or after the date of such first distribution and before the date on which the corporation files the election with the Secretary of the Treasury or his delegate consent to such election and to the application of this subsection. Pubu^c\'t°o"nm ^^^ ^ ^ election by a corporation under this subsection, and the Federal Regrster. couseut thereto of the persons who are or were shareholders of such corporation, shall be made in such manner and within such time as the Secretary of the Treasury or his delegate prescribes by regulations, but the period for making such election shall not expire l^fore one year after the date on which the regulations prescrioed under this subsection are published in the Federal Register. (3) I n applying paragraphs (1) and (2), the consent of a person (or his personal representative) slxall not be required if, under regulations prescribed under this subsection, it is shown to the satisfaction of the Secretary of the Treasury or his delegate that the liability of such person for Federal income tax for any taxable year cannot be affected by the election of the corporation of which he is or was.a shareholder. (4) I n applying this subsection, the reference in section 1375(f) Ante, p. 111. of the Internal Revenue Code of 1954 (as added by subsection (a)(1)) to the 15th day of the third month following the close of the taxable year shall be treated as referring to the 15th day of the fourth month following the close of the taxable year. (5) The statutory period for the assessment of any deficiency for any taxable year against the corporation filing the election or any person consenting thereto, to the extent such deficiency is attributable to an election under this subsection, shall not expire before the last day of the 2-year period beginning on the date on which the regulations prescribed under this subsection are published in the Federal Register; and such deficiency may be assessed at any time before the expiration of such 2-year period, notwithstanding any law or rule of law which would otherwise prevent such assessment. (6) I f (A) credit or refund of the amount of any overpayment for any taxable year attributable to an election under this subsection is not prevented, on the date of the enactment of this Act, by the operation of any.law or rule of law, and (B) credit or refund of the amount of such overpayment is prevented, by the operation of any law or rule of law (other 26 USC 7121 than chapter 74 of the Internal Revenue Code of 1954, relating 7123. to closing agreements and compromises), at any time on or before the expiration of the 2-year period beginning on the date on which the regulations prescribed under this subsection are published in the Federal Register, credit or refund of such overpayment may, nevertheless, be allowed or made, to the extent such overpayment is attributable to such election, if claim therefor is filed before the expiration of such 2-year period. (7) I f (A)(i) one or more consecutive distributions of money made by the corporation after the close of a taxable year and on or before the 15th day of the fourth month following the close of the taxable year were substantially the same in amount as the undistributed taxable income of such corporation for such year, or (ii) it is established to the satisfaction of the Secretary of the Treasury or his delegate that one or more distributions of money made by the corporation during the period described in clause (i) were intended to be distributions of the undistributed taxable income of such corporation for the taxable year preceding such period, and
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