Taxable Years Beginning in 1940 Taxable Years Beginning in 1939 Taxable Years Beginning before 1939 Sec. 732. Review of abnormalities by Board of Tax Appeals. Sec. 732. (a) Petition to the Board. If a claim for refund of tax under this subchapter for any taxable year is disallowed in whole or in part by the Commissioner, and the disallowance relates to the application of section 711 (b) (1) (H), (1), (J), or (K), section 721, or section 722, relating to abnormalities, the Commissioner shall send notice of such disallowance to the taxpayer by registered mail. Within ninety days after such notice is mailed (not counting Sunday or a legal holiday in the District of Columbia as the ninetieth day) the taxpayer may file a petition with the Board of Tax Appeals for a redetermination of the tax under this subchapter. If such petition is so filed, such notice of disallowance shall be deemed to be a notice of deficiency for all purposes relating to the assessment and collection of taxes or the refund or credit of overpayments. Sec. 732. (b) Deficiency found by Board in case of claim.-If the Board finds that there is no overpayment of tax in respect of any taxable year in respect of which the Commissioner has disallowed, in whole or in part, a claim for refund described in subsection (a) and the Board further finds that there is a deficiency for such year, the Board shall have jurisdiction to determine the amount of such deficiency and such amount shall, when the decision of the Board becomes final, be assessed and shall be paid upon notice and demand from the collector. Sec. 732. (c) Finality of determination. If in the determination of the tax liability under this subchapter the determination of any question is necessary solely by reason of section 711 (b) (1) (H), (1), (J), or (K), section 721, or section 722, the determination of Taxable Years Beginning in 1943 such question shall not be reviewed or redetermined by any court or agency except the Board. Sec. 732. (d) Review by special division of Board. The determinations and redeterminations by any division of the Board involving any question arising under section 721 (a) (2) (C) or section 722 shall be reviewed by a special division of the Board which shall be constituted by the Chairman and consist of not less than three members of the Board. The decisions of such special division shall not be reviewable by the Board, and shall be deemed decisions of the Board. Sec. 732 (d), I. R. C., supra, See note following Sec. 733, Sec. 733. Capitalization of advertising, etc., expenditures. Sec. 733. (a) Election to charge to capital account. For the purpose of computing the excess profits credit, a taxpayer may elect, within six months after the date prescribed by law for filing its return for its first taxable year under this subchapter, to charge to capital account so much of the deductions for taxable years in its applicable base period on account of expenditures for advertising or the promotion of good will, as, under rules and regulations prescribed by the Commissioner with the approval of the Secretary, may be regarded as capital investments. Such election must be the same for all such taxable years, and must be for the total amount of such expenditures which may be so regarded as capital investments. In computing the excess profits credit, no amount on account of such expenditures shall be charged to capital account: such question shall not be reviewed such question shall not be reviewed Sec. 732. (d) Review by special division of Board.-The determinations and redeterminations by any division of the Board involving any question arising under section 721 (a) (2) (C) or section 722 shall be reviewed by a special division of the Board which shall be constituted by the Chairman and consist of not less than three members of the Board. The decisions of such special division shall not be reviewable by the Board, and shall be deemed decisions of the Board. Sec. 732 (d), I. R. C., supra, added to I. R. C. by Sec. 222 (c), R. A. of 1942. Sec. 201 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. See note following Sec. 733, I. R. C., infra. Sec. 733. Capitalization of advertising, etc., expenditures. Sec. 733. (a) Election to charge to capital account. For the purpose of computing the excess profits credit, a taxpayer may elect, within six months after the date prescribed by law for filing its return for its first taxable year under this subchapter, to charge to capital account so much of the deductions for taxable years in its applicable base period on account of expenditures for advertising or the promotion of good will, as, under rules and regulations prescribed by the Commissioner with the approval of the Secretary, may be regarded as capital investments. Such election must be the same for all such taxable years, and must be for the total amount of such expenditures which may be so regarded as capital investments. In computing the excess profits credit, no amount on account of such expenditures shall be charged to capital account: Sec. 733. (a) (1) For taxable Sec. 733. (a) (1) For taxable years in the base period unless the years in the base period unless the election authorized in subsection | election authorized in subsection (a) is exercised, or (a) is exercised, or Sec. 733. (a) (2) For any taxable year prior to the beginning of the base period. Sec. 733. (b) Effect of election. -If the taxpayer exercises the election authorized under subsection (a) Sec. 733. (a) (2) For any taxable year prior to the beginning of the base period. Sec. 733. (b) Effect of election. If the taxpayer exercises the election authorized under subsection (a)— See note following Sec. 733, I. R. C., infra. Sec. 733. Capitalization of advertising, etc., expenditures. Sec. 733. (a) Election to charge to capital account.-For the purpose of computing the excess profits credit, a taxpayer may elect, within six months after the date prescribed by law for filing its return for its first taxable year under this subchapter, to charge to capital account so much of the deductions for taxable years in its applicable base period on account of expenditures for advertising or the promotion of good will, as, under rules and regulations prescribed by the Commissioner with the approval of the Secretary, may be regarded as capital investments. Such election must be the same for all such taxable years, and must be for the total amount of such expenditures which may be so regarded as capital investments. In computing the excess profits credit, no amount on account of such expenditures shall be charged to capital account: Sec. 733. (a) (1) For taxable years in the base period unless the election authorized in subsection (a) is exercised, or Sec. 733. (a) (2) For any taxable year prior to the beginning of the base period. Sec. 733. (b) Effect of election. If the taxpayer exercises the election authorized under subsection (a)— Taxable Years Beginning in 1940 such question shall not be reviewed or redetermined by any court or agency except the Board. See note following Sec. 733, Taxable Years Beginning in 1939 Taxable Years Beginning before 1939 Sec. 733. Capitalization of advertising, etc., expenditures. Sec. 733. (a) Election to charge to capital account.-For the purpose of computing the excess profits credit, a taxpayer may elect, within six months after the date prescribed by law for filing its return for its first taxable year under this subchapter, to charge to capital account so much of the deductions for taxable years in its applicable base period on account of expenditures for advertising or the promotion of good will, as, under rules and regulations prescribed by the Commissioner with the approval of the Secretary, may be regarded as capital investments. Such election must be the same for all such taxable years, and must be for the total amount of such expenditures which may be so regarded as capital investments. In computing the excess profits credit, no amount on account of such expenditures shall be charged to capital account: Sec. 733. (a) (1) For taxable years in the base period unless the election authorized in subsection (a) is exercised, or Sec. 733. (a) (2) For any taxable year prior to the beginning of the base period. Sec. 733. (b) Effect of election. -If the taxpayer exercises the election authorized under subsection (a) Taxable Years Taxable Years Taxable Years Sec. 733. (b) (1) The net income Sec. 733. (b) (1) The net income Sec. 733. (b) (1) The net income for each taxable year in the base for each taxable year in the base for each taxable year in the base period shall be considered to be the period shall be considered to be the period shall be considered to be the net income computed with such de- net income computed with such de- net income computed with such deductions disallowed, and such de- ductions disallowed, and such de- ductions disallowed, and such deductions shall not be considered as ductions shall not be considered as ductions shall not be considered as having diminished earnings and having diminished earnings and having diminished earnings and profits. This paragraph shall be profits. This paragraph shall be profits. This paragraph shall be retroactively applied as if it were retroactively applied as if it were retroactively applied as if it were a part of the law applicable to each a part of the law applicable to each a part of the law applicable to each taxable year in the base period; and taxable year in the base period; and taxable year in the base period; and Sec. 733. (b) (2) The treatment Sec. 733. (b) (2) The treatment of such expenditures as deductions of such expenditures as deductions of such expenditures as deductions for a taxable year in the base pe- for a taxable year in the base pe- for a taxable year in the base period shall, for the purposes of riod shall, for the purposes of riod shall, for the purposes of section 734 (b) (2), be considered section 734 (b) (2), be considered section 734 (b) (2), be considered treatment which was not correct treatment which was not correct treatment which was not correct under the law applicable to such under the law applicable to such under the law applicable to such year. Sec. 732 (a), (b) and (c), and Sec. 733, I. R. C., supra, added to I. R. C. by Secs. 9 and 10 (a), respectively, of Excess Profits Tax Amendments of 1941. Sec. 17 of said Act makes amendments applicable to taxable years beginning after Dec. 31, 1939. Sec. 734. Adjustment in case of position inconsistent with prior income tax liability. Sec. 734. (a) Definitions.-For the purposes of this section Sec. 734. (a) (1) Taxpayer.— The term "taxpayer" means any person subject to a tax under the applicable revenue Act. Sec. 734. (a) (2) Income tax.The term "income tax" means an income tax imposed by Chapter 1 or Chapter 2A of this title; Title I and Title IA of the Revenue Acts of 1938, 1936, and 1934; Title I of the Revenue Acts of 1932 and 1928; Title II of the Revenue Acts of 1926 and 1924; Title II of the Revenue Acts of 1921 and 1918; Title I of the Revenue Act of 1917; Title I of the Revenue Act of 1916; or section II of the Act of October 3, 1913; a war profits or excess profits tax imposed by Title III of the Revenue Acts of 1921 and 1918; or Title II of the Revenue Act of 1917; or an income, war profits, or excess profits tax imposed by any of the foregoing provisions, as amended or supplemented. Sec. 733. (b) (2) The treatment year. Sec. 732 (a), (b) and (c), and Sec. 733, I. R. C., supra, added to I. R. C. by Secs. 9 and 10 (a), respectively, of Excess Profits Tax Amendments of 1941. Sec. 17 of said Act makes amendments applicable to taxable years beginning after Dec. 31, 1939. Sec. 734. Adjustment in case of position inconsistent with prior income tax liability. Sec. 734. (a) Definitions.-For the purposes of this section Sec. 734. (a) (1) Taxpayer.— The term "taxpayer" means any person subject to a tax under the applicable revenue Act. Sec. 734. (a) (2) Income tax.The term "income tax" means an income tax imposed by Chapter 1 or Chapter 2A of this title; Title I and Title IA of the Revenue Acts of 1938, 1936, and 1934; Title I of the Revenue Acts of 1932 and 1928; Title II of the Revenue Acts of 1926 and 1924; Title II of the Revenue Acts of 1921 and 1918; Title I of the Revenue Act of 1917; Title I of the Revenue Act of 1916; or section II of the Act of October 3, 1913; a war profits or excess profits tax imposed by Title III of the Revenue Acts of 1921 and 1918; or Title II of the Revenue Act of 1917; or an income, war profits, or excess profits tax imposed by any of the foregoing provisions, as amended or supplemented. Sec. 734. (a) (3) Prior taxable Sec. 734. (a) (3) Prior taxable year. A taxable year beginning year.-A taxable year beginning after December 31, 1939, shall not after December 31, 1939, shall not be considered a prior taxable year. be considered a prior taxable year. year. Sec. 732 and Sec. 733, I. R. C., supra, added to I. R. C. by Secs. 9 and 10 (a), respectively, of Excess Profits Tax Amendments of 1941. Sec. 17 of said Act makes amendments applicable to taxable years beginning after Dec. 31, 1939. Sec. 734. Adjustment in case of position inconsistent with prior income tax liability. Sec. 734. (a) Definitions.-For the purposes of this section any Sec. 734. (a) (1) Taxpayer.— The term "taxpayer" means person subject to a tax under the applicable revenue Act. Sec. 734. (a) (2) Income tax.The term "income tax" means an income tax imposed by Chapter 1 or Chapter 2A of this title; Title I and Title IA of the Revenue Acts of 1938, 1936, and 1934; Title I of the Revenue Acts of 1932 and 1928; Title II of the Revenue Acts of 1926 and 1924; Title II of the Revenue Acts of 1921 and 1918; Title I of the Revenue Act of 1917; Title I of the Revenue Act of 1916; or section II of the Act of October 3, 1913; a war profits or excess profits tax imposed by Title III of the Revenue Acts of 1921 and 1918; or Title II of the Revenue Act of 1917; or an income, war profits, or excess profits tax imposed by any of the foregoing provisions, amended or supplemented. as Sec. 734. (a) (3) Prior taxable year.-A taxable year beginning after December 31, 1939, shall not be considered a prior taxable year. Taxable Years Beginning in 1940 Sec. 733. (b) (1) The net income for each taxable year in the base period shall be considered to be the net income computed with such deductions disallowed, and such deductions shall not be considered as having diminished earnings and profits. This paragraph shall be retroactively applied as if it were a part of the law applicable to each taxable year in the base period; and Sec. 733. (b) (2) The treatment of such expenditures as deductions for a taxable year in the base period shall, for the purposes of section 734 (b) (2), be considered treatment which was not correct under the law applicable to such year. Sec. 732 and Sec. 733, I. R. C., supra, added to I. R. C. by Secs. 9 and 10 (a), respectively, of Excess Profits Tax Amendments of 1941. Sec. 17 of said Act makes amendments applicable to taxable years beginning after Dec. 31, 1939. Sec. 734. Adjustment in case of position inconsistent with prior income tax liability. Sec. 734. (a) Definitions.-For the purposes of this section Sec. 734. (a) (1) Taxpayer.— The term "taxpayer" means any person subject to a tax under the applicable revenue Act. Sec. 734. (a) (2) Income tax.The term "income tax" means an income tax imposed by Chapter 1 or Chapter 2A of this title; Title I and Title IA of the Revenue Acts of 1938, 1936, and 1934; Title I of the Revenue Acts of 1932 and 1928; Title II of the Revenue Acts of 1926 and 1924; Title II of the Revenue Acts of 1921 and 1918; Title I of the Revenue Act of 1917; Title I of the Revenue Act of 1916; or section II of the Act of October 3, 1913; a war profits or excess profits tax imposed by Title III of the Revenue Acts of 1921 and 1918; or Title II of the Revenue Act of 1917; or an income, war profits, or excess profits tax imposed by any of the foregoing provisions, as amended or supplemented. Sec. 734. (a) (3) Prior taxable year. A taxable year beginning after December 31, 1939, shall not be considered a prior taxable year. |