ter) prescribed prior to the date ter) prescribed prior to the date Taxable Years Beginning before 1939 Sec. 141. (d) Definition of “af- Sec. 141. (d) Definition of " "affiliated group".-As used in this filiated group'.-As used in this section an "affiliated group" means section an "affiliated group' one or more chains of corporations means one or more chains of corconnected through stock ownership porations connected through stock with a common parent corporation ownership with a common parent ifcorporation if Sec. 141. (d) (1) At least 95 per centum of the stock of each of the corporations (except the common parent corporation) is owned directly by one or more of the other corporations; and Sec. 141. (d) (1) At least 95 per centum of the stock of each of the corporations (except the common parent corporation) is owned directly by one or more of the other corporations; and Sec. 141. (d) Definition of “affiliated group." See p. 240, Eighth Edition. Sec. 141. (d) (2) The common parent corporation owns directly at least 95 per centum of the stock of at least one of the other corporations; and Sec. 141. (d) (2) The common parent corporation owns directly at least 95 per centum of the stock of at least one of the other corporations; and Sec. 141. (d) (3) Each of the Sec. 141. (d) (3) Each of the corporations is either (A) a cor- corporations is either (A) a corporation whose principal business poration whose principal business. is that of a common carrier by is that of a common carrier by railroad or (B) a corporation the railroad or (B) a corporation the assets of which consist principally assets of which consist principally of stock in such corporations and of stock in such corporations and which does not itself operate a which does not itself operate a business other than that of a com- business other than that of a mon carrier by railroad. For the common carrier by railroad. For purpose of determining whether the purpose of determining whether the principal business of a cor- the principal business of a corporation is that of a common car-poration is that of a common carrier by railroad, if a common car- rier by railroad, if a common rier by railroad has leased its carrier by railroad has leased its railroad properties and such prop- railroad properties and such properties are operated as such by another common carrier by railroad, the business of receiving rents for such railroad properties shall be erties are operated as such by an Taxable Years Taxable Years Taxable Years considered as the business of a common carrier by, railroad. As used in this paragraph, the term "railroad" includes a street, suburban, or interurban electric railway, or a street or suburban trackless trolley system of transportation, or a street or suburban bus system of transportation operated as part of a street or suburban electric railway or trackless trolley system. As used in this subsection (except in paragraph (3)) the term "stock" does not include nonvoting stock which is limited and preferred as to dividends. Sec. 141. (e) Foreign corporations.-A foreign corporation shall Sec. 141. (e) Definition of “in- Sec. 141. (e) Definition of "includible corporation."— As used cludible corporation."-As used in this section, the term "includible in this section, the term "includible not be deemed to be affiliated with corporation" means any corporation corporation" means any corporation except Sec. 141. (e) (1) Corporations exempt under section 101 from the tax imposed by this chapter. Sec. 141. (e) (2) Insurance companies subject to taxation under section 201 or 207. Sec. 141. (e) (3) Foreign corporations. except Sec. 141. (e) (1) Corporations exempt under section 101 from the tax imposed by this chapter. Sec. 141. (e) (2) Insurance companies subject to taxation under section 201 or 207. Sec. 141. (e) (3) Foreign corporations. any other corporation within the meaning of this section. Sec. 141. (f) China Trade Act Corporations.-A corporation organized under the China Trade Act, 1922, 42 Stat. 849 (U. S. C., Title 15, c. 4), shall not be deemed to be affiliated with any other corporation within the meaning of this section. Sec. 141. (g) Corporations deSec. 141. (e) (4) Corporations Sec. 141. (e) (4) Corporations riving income from possessions of entitled to the benefits of section entitled to the benefits of section United States. For the purposes 251, by reason of receiving a large of this section a corporation entitled to the benefits of section 251, by reason of receiving a large percentage of its income from possessions of the United States, shall be treated as a foreign corporation. 251, by reason of receiving a large Sec. 141. (e) (5) Corporations organized under the China Trade Act, 1922. Sec. 141. (e) (6) Regulated investment companies subject to tax under Supplement Q. sources within possessions of the United States. Sec. 141. (e) (5) Corporations organized under the China Trade Act, 1922. Sec. 141. (e) (6) Regulated investment companies subject to tax under Supplement Q. Sec. 141. (f) Includible insur- Sec. 141. (f) Includible insurance companies.-Despite the pro-ance companies.-Despite the provisions of paragraph (2) of subsec- visions of paragraph (2) of subsection (e), two or more domestic tion (e), two or more domestic insurance companies each of which insurance companies each of which is subject to taxation under the is subject to taxation under the same section of this chapter shall be same section of this chapter shall be considered as includible corpora- considered as includible corporations for the purpose of the appli- tions for the purpose of the application of subsection (d) to such cation of subsection (d) to such insurance companies alone. insurance companies alone. Sec. 141. (g) Subsidiary formed Sec. 141. (g) Subsidiary formed Sec. 141. (h) Subsidiary formed to comply with foreign law. In to comply with foreign law. In to comply with foreign law.—In the case of a domestic corporation the case of a domestic corporation the case of a domestic corporation owning or controlling, directly or owning or controlling, directly or owning or controlling, directly or indirectly, 100 per centum of the indirectly, 100 per centum of the indirectly, 100 per centum of the considered as the business of a considered as the business of a common carrier by railroad. As common carrier by railroad. As used in this paragraph, the term used in this paragraph, the term "railroad" includes a street, subur- "railroad" includes a street, suburban, or interurban electric railway, ban, or interurban electric railway, or a street or suburban track-or a street or suburban trackless trolley system of transporta- less trolley system of transportation, or a street or suburban bus tion, or a street or suburban bus system of transportation operated system of transportation operated as part of a street or suburban as part of a street or suburban electric railway or trackless trolley electric railway or trackless trolley system. As used in this subsection system. As used in this subsection (except in paragraph (3)) the (except in paragraph (3)) the term "stock" does not include term "stock" does not include nonvoting stock which is limited nonvoting stock which is limited and preferred as to dividends. and preferred as to dividends. Sec. 141. (e) Foreign corporations. A foreign corporation shall not be deemed to be affiliated with any other corporation within the meaning of this section. Taxable Years Sec. 141. (e) Foreign corpora Sec. 141. (e) Foreign corpora- Sec. 141. (f) China Trade Act Sec. 141. (f) China Trade Act Sec. 141. (g) Corporations de- Sec. 141. (g) Corporations deriving income from possessions of riving income from possessions of United States. For the purposes United States. For the purposes of this section a corporation en- of this section a corporation entitled to the benefits of section 251, titled to the benefits of section 251, by reason of receiving a large per- by reason of receiving a large percentage of its income from posses- centage of its income from possessions of the United States, shall sions of the United States, shall be treated as a foreign corporation. be treated as a foreign corporation. See p. 242, Eighth Edition. Sec. 141. (f) China Trade Act corporations. See p. 244, Eighth Edition. Sec. 141. (g) Corporations deriving income from possessions of United States. See p. 244, Eighth Edition. Sec. 141. (h) Subsidiary formed Sec. 141. (h) Subsidiary formed Sec. 141. (h) Subsidiary formed to comply with foreign law. In to comply with foreign law. In to comply with foreign law. the case of a domestic corporation the case of a domestic corporation owning or controlling, directly or owning or controlling, directly or indirectly, 100 per centum of the indirectly, 100 per centum of the See p. 244, Eighth Edition. Taxable Years Taxable Years Taxable Years capital stock (exclusive of directors' capital stock (exclusive of directors' capital stock (exclusive of direcqualifying shares) of a corporation qualifying shares) of a corporation tors' qualifying shares) of a cororganized under the laws of a con- organized under the laws of a con-poration organized under the laws tiguous foreign country and main- tiguous foreign country and main- of a contiguous foreign country tained solely for the purpose of tained solely for the purpose of and maintained solely for the purcomplying with the laws of such complying with the laws of such pose of complying with the laws country as to title and operation of country as to title and operation of of such country as to title and opproperty, such foreign corporation property, such foreign corporation eration of property, such foreign may, at the option of the domestic may, at the option of the domestic corporation may, at the option of corporation, be treated for the pur- corporation, be treated for the pur-the domestic corporation, be pose of this chapter and of Sub-pose of this chapter and of Sub-treated for the purpose of this chapter E of Chapter 2 as a domes- chapter E of Chapter 2 as a domes- chapter as a domestic corporation. tic corporation. tic corporation. Sec. 141. (h) Suspension of runSec. 141. (h) Suspension of run- Sec. 141. (i) Suspension of running of statute of limitations.-If ning of statute of limitations.—If ning of statute of limitations.— a notice under section 272 (a) in a notice under section 272 (a) in If a notice under section 272 (a) respect of a deficiency for any tax-respect of a deficiency for any tax-in respect of a deficiency for any able year is mailed to a corporation, able year is mailed to a corporation, taxable year is mailed to a corpothe suspension of the running of the suspension of the running of ration, the suspension of the runthe statute of limitations, provided the statute of limitations, provided ning of the statute of limitations, in section 277, shall apply in the in section 277, shall apply in the provided in section 277, shall case of corporations with which case of corporations with which apply in the case of corporations such corporation made a consoli- such corporation made a consoli- with which such corporation made dated return for such taxable year. dated return for such taxable year. a consolidated return for such taxable year. Bee. 141. (j) Receivership cases Sec. 210 (b), R. A. of 1939, provides that Sec. 141 (j), I. R. C., supra, shall not apply to a taxable year beginning after Dec. 31, 1939. For Sec. 141 (j), I. R. C., before repeal, see 1939 column. Sec. 141. (i) Allocation of in Sec. 141. (i) Allocation of income and deductions.-For alloca- come and deductions.-For allocation of income and deductions of tion of income and deductions of related trades or businesses, see related trades or businesses, see section 45. section 45. Sec. 141, I. R. C., supra, amended to read as above by Sec. 159 (a), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. See 1941 column for Sec. 141, I. R. C., prior to amendment. Sec. 142. Fiduciary returns. Sec. 141, I. R. C., supra, amended to read as above by Sec. 159 (a), R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. See 1941 column for Sec. 141, I. R. C., prior to amendment. Sec. 142. Fiduciary returns. Sec. 142. (a) Requirement of re- Sec. 142. (a) Requirement of return.-Every fiduciary (except a turn.-Every fiduciary (except a receiver appointed by authority of receiver appointed by authority of Sec. 141. (k) Allocation of income and deductions.— For allocations of income and deductions of related trades or businesses, see section 45. Sec. 142. Fiduciary returns. Sec. 142. (a) Requirement of return.-Every fiduciary (except a receiver appointed by authority of capital stock (exclusive of direc- capital stock (exclusive of direc- Sec. 141. (i) Suspension of run- Sec. 141. (i) Suspension of running of statute of limitations.-ning of statute of limitations.If a notice under section 272 (a) If a notice under section 272 (a) in respect of a deficiency for any in respect of a deficiency for any taxable year is mailed to a corpo- taxable year is mailed to a corporation, the suspension of the run- ration, the suspension of the running of the statute of limitations, ning of the statute of limitations, provided in section 277, shall provided in section 277, shall apply in the case of corporations apply in the case of corporations with which such corporation made with which such corporation made a consolidated return for such tax- a consolidated return for such taxable year. able year. Sec. 141. (j) Receivership cases, Sec. 141. (j) Receivership cases. -If the common parent corpora--If the common parent corporation of an affiliated group making tion of an affiliated group making a consolidated return would, if a consolidated return would, if filing a separate return, be en filing a separate return, be entitled to the benefits of section 13 titled to the benefits of section 13 (e), the affiliated group shall be en (e), the affiliated group shall be entitled to the benefits of such subtitled to the benefits of such subsection. In all other cases the af section. In all other cases the affiliated group making a consoli-filiated group making a consolidated return shall not be entitled dated return shall not be entitled to the benefits of such subsection, regardless of the fact that one or more of the corporations in the group are in bankruptcy or in re ceivership. Sec. 210 (b), R. A. of 1939, provides that Sec. 141 (j),. I. R. C., supra, shall not apply to a taxable year beginning after Dec. 31, 1939. Sec. 141. (k) Allocation of income and deductions. For allocations of income and deductions of related trades or businesses, see section 45. to the benefits of such subsection, Sec. 141. (k) Allocation of income and deductions.— For allocation of income and deductions of related trades or businesses, see section 45. Taxable Years 393 Sec. 141. (i) Suspension of running of statute of limitations. See p. 244, Eighth Edition. Sec. 141. (j) Receivership cases. See p. 244, Eighth Edition. Sec. 141. (k) Allocation of income and deductions. See p. 246, Eighth Edition. Sec. 142. Fiduciary returns. See p. 246, Eighth Edition. Sec. 142. Fiduciary returns. Sec. 142. Fiduciary returns. Sec. 142. (a) Requirement of reSec. 142. (a) Requirement of return.-Every fiduciary (except a turn.-Every fiduciary (except a receiver appointed by authority of receiver appointed by authority of turn. |