year, the Commissioner shall make a determination that—

(1) The corporation's taxable year is a permitted year, or

may, under

(2) The corporation §1.442-1(b)(1), change its taxable year to a taxable year ending on December 31, or

(3) The corporation may, under §1.442-1(b)(1), change its taxable year to a taxable year ending other than on December 31, which taxable year shall be a permitted year.

(e) Cross-reference to $1.442-2T and $1.442-3T. For special rules applicable to certain changes in annual accounting period where the short period involved in the change ends in 1986 or 1987, see §1.442-2T. For special rules applicable to certain adoptions and retentions of a taxable year ending in 1986 or 1987, see §1.442-3T.

[T.D. 7872, 48 FR 3590, Jan. 26, 1983; 48 FR 33481, July 22, 1983, as amended by T.D. 8123, 52 FR 3623, Feb. 5, 1987]

§ 18.1379-1 Transitional rules on actment.

en

(a) Prior elections. Any election that was made under section 1372(a) (as in effect before the enactment of the Subchapter S Revision Act of 1982), and that is still in effect as of the first day of a taxable year beginning in 1983, shall be treated as being an election made under section 1362(a). In addition, any election that was made under section 1371(g)(2) (as in effect before the enactment of that Act), and that is still in effect as of the first day of a taxable year beginning in 1983, shall be treated as being an election made under section 1362(d)(2).

(b) Prior terminations. For purposes of section 1362(g), any termination under section 1372(e) (as in effect before the enactment of the Subchapter S Revision Act of 1982) shall not be taken into account.

(c) Time and manner of making an election under section 6(c)(3)(B) of the Subchapter S Revision Act of 1982. In the case of a qualified oil corporation (as defined in section 6(c)(3)(B) of the Subchapter S Revision Act of 1982), the corporation may elect under that section of the Act to have the amendments made by the Act not apply and to have Subchapter S (as in effect on

July 1, 1982), Chapter I of the Internal Revenue Code of 1954 apply. The election shall be made by the corporation by filing a statement that

(1) Contains the name, address, and taxpayer identification number of the corporation and of each shareholder,

(2) Identifies the election as an election under section 6(c)(3)(B) of the Subchapter S Revision Act of 1982, and

(3) Provides all information necessary in the judgment of the district director to show that the corporation meets the requirements (other than the requirement of making this election) of a qualified oil corporation.

The statement shall be signed by any person authorized to sign the return required to be filed under section 6037 and by each person who is or was a shareholder in the corporation at any time during the taxable year beginning in 1983 and shall be filed with the return for that taxable year.

18.1379-2 Special rules for all elections, consents, and refusals. (a) Additional information required. If later regulations issued under the section of the Code or of the Subchapter S Revision Act of 1982 under which the election, consent, or refusal was made require the furnishing of information in addition to that which was furnished with the statement of election, consent, or refusal as provided by Part 18 of this title, and if an office of the Internal Revenue Service requests the taxpayer to provide the additional information, the taxpayer shall furnish the additional information in a statement filed with that office of the Internal Revenue Service within 60 days after the date on which the request is made. This statement shall also

(1) Contain the name, address, and taxpayer identification number of each party identified in connection with the election, consent, or refusal,

(2) Identify the election, consent, or refusal by reference to the section of the Code or Act under which the election, consent, or refusal was made, and

(3) Specify the scope of the election, consent, or refusal.

If the additional information is not provided within 60 days after the date on which the request is made, the election, consent, or refusal may, at the

AUTHORITY: 26 U.S.C. 7805.

$19.3-1 Interest on certain deferred payments; interest rate for use in determining whether there is total unstated interest under a contract. (a) In general. Section 224(a) of the Revenue Act of 1964 adds a new section 483 to the Internal Revenue Code of 1954. Section 483(a) provides, generally, that in the case of any contract for the sale or exchange of property (which is a capital asset or section 1231 property) there shall be treated as interest that part of a payment to which section 483 applies which bears the same ratio to the amount of such payment as the total unstated interest under such contract bears to the total of the payments to which such section applies which are due under the contract. Section 483(b) defines the term "total unstated interest", with respect to a contract for the sale or exchange of property, as an amount equal to the excess of

(1) The sum of the payments to which section 483 applies which are due under the contract, over

(2) The sum of the present values of such payments and the present values of any interest payments due under the contract.

Section 483(b) further provides that, for purposes of section 483(b)(2), the present value of a payment shall be determined, as of the date of the sale or exchange, by discounting such payment at the rate, and in the manner, provided in regulations prescribed by the Secretary or his delegate, and that such regulations shall provide for discounting on the basis of 6-month

brackets and shall provide that the present value of any interest payment due not more than 6 months after the date of the sale or exchange is an amount equal to 100 percent of such payment. Section 483(c) provides that, except as provided in section 483(f) (relating to exceptions and limitations), section 483 shall apply to any payment on account of the sale or exchange of property which constitutes part or all of the sales price and which is due more than 6 months after the date of such sale or exchange under a contract under which some or all of the payments are due more than one year after the date of such sale or exchange, and under which, using a rate provided by regulations (for purposes of section 483(c)(1)(B)), there is total unstated interest. Section 483(c) further provides that any rate prescribed for determining whether there is total unstated interest for purposes of section 483(c)(1)(B) shall be at least one percentage point lower than the rate prescribed for purposes of section 483(b)(2).

(b) Rate of interest and table of present values for purposes of section 483(c)(1)(B). For purposes of determining under section 483(c)(1)(B) whether there is total unstated interest under a contract (other than a contract of sale or exchange under which the purchaser is the United States, a State, or any other purchaser described in section 103) which provides for the payment of some interest, a rate of 4 percent per annum simple interest shall be used. As an illustration of the meaning of simple interest, if a contract provides for payments of $6,000 in 3 equal installments of $2,000 plus 4 percent per annum simple interest, such installments of principal and interest being due 1, 2, and 3 years, respectively, from the date of the sale, the amount of interest due with the first installment is $80 ($2,000×0.04×1), the amount of interest due with the second installment is $160 ($2,000×0.04x2), and the amount of interest due with the third installment is $240 ($2,000×0.04x3). Section 483 shall not apply if the interest payments specified in a contract are at a rate of at least 4 percent per annum, whether simple or compounded. In all other cases, for purposes of determining, under section 483(c)(1)(B), whether

20.2031-9 Valuation of other property. 20.2031-10 Valuation of annuities, life estates, terms for years, remainders, and reversions for estates of decedents dying after December 31, 1970 and before December 1, 1983.

20.2032-1 Alternate valuation. 20.2032A-3 Material participation requirements for valuation of certain farm and closely-held business real property. 20.2032A-4 Method of valuing farm real property.

20.2032A-8 Election and agreement to have certain property valued under section 2032A for estate tax purposes.

20.2033-1 Property in which the decedent had an interest.

20.2034-1 Dower or curtesy interests. 20.2035-1 Transactions in contemplation of death.

20.2036-1 Transfers with retained life estate. 20.2037-1 Transfers taking effect at death. Revocable transfers.

20.2038-1

20.2039-1T Limitations and repeal of estate tax exclusion for qualified plans and individual retirement plans (IRAs). (Temporary)

20.2039-2 Annuities under "qualified plans" and section 403(b) annuity contracts. 20.2039-3 Lump sum distributions under "qualified plans;" decedents dying after December 31, 1976 and before January 1, 1979.

20.2039-4 Lump sum distributions from "qualified plans;" decedents dying after December 31, 1978.

20.2039-5 Annuities under individual retirement plans.

20.2040-1 Joint interests.

20.2041-1 Powers of appointment; in general. 20.2041-2 Powers of appointment created on or before October 21, 1942.

20.2041-3 Powers of appointment created after October 21, 1942.

20.2042-1 Proceeds of life insurance. 20.2043-1 Transfers for insufficient consideration.

20.2044-1 Certain property for which marital deduction was previously allowed. 20.2044-2 Effective dates.

20.2045-1 Applicability to pre-existing transfers or interests.

20.2046-1 Disclaimed property.

TAXABLE ESTATE

20.2051-1 Definition of taxable estate. 20.2052-1 Exemption.

20.2053-1 Deductions for expenses, indebtedness, and taxes; in general.

20.2053-2 Deduction for funeral expenses. 20.2053-3 Deduction for expenses of administering estate.