Sec. 122(a), RA of 1950, amended Sec. 26(b), IRC, to read as follows: "(b) DIVIDENDS RECEIVED.-An amount equal to the sum of "(1) IN GENERAL.-85 per centum of the amount received as dividends (other than dividends received in taxable years described in paragraph (2) on the preferred stock of a public utility) from a domestic corporation which is subject to taxation under this chapter; and "(2) CERTAIN PREFERRED STOCK.— "(A) TAXABLE YEARS BEGINNING AFTER JUNE 30, 1950.-In the case of taxable years beginning after June 30, 1950, 59 per centum of the amount received as dividends on the preferred stock of a public utility which is subject to taxation under this chapter. "(B) CALENDAR YEAR 1950.-In the case of a taxable year beginning on January 1, 1950, and ending on December 31, 1950, 57 per centum of the amount received as dividends on the preferred stock of a public utility which is subject to taxation under this chapter. For the purpose of this subsection (but not for the purposes of computing adjusted net income), if the whole or any part of a dividend is received after August 31, 1950, in property other than money, then, with respect to such property, the shareholder shall not be considered to have received as a dividend an amount in excess of the adjusted basis of such property in the hands of the distributing corporation at the time of distribution increased in the amount of gain or decreased in the amount of loss recognized to the distributing corporation by reason of such distribution. The credit allowed under this subsection shall not be allowed in respect of dividends received from a corporation organized under the China Trade Act, 1922, 42 Stat. 849 (U. S. C., title 15, c. 4), or from a corporation which under section 251 is taxable only on its gross income from sources within the United States by reason of its receiving a large percentage of its gross income from sources within a possession of the United States. In no event shall the credit allowed by this subsection exceed 85 per centum of the adjusted net income computed without regard to the deduction allowed by section 23 (s).' Sec. 122(b), RA of 1950, amended the first sentence of Sec. 26 (h) (1), IRC, to read as follows: 14 FEDERAL INCOME, ESTATE AND GIFT TAX LAWS 1 "In the case of a public utility, the amount of dividends paid during the taxable year on its preferred stock, except that (A) in the case of a taxable year beginning on January 1, 1950, and ending on December 31, 1950, only an amount equal to 33 per centum of the lower of (i) the amount of dividends paid during such taxable year on its preferred stock or (ii) the adjusted net income for such taxable year minus the credit for dividends received provided in subsection (b) for such year, and (B) in the case of any taxable year beginning after June 30, 1950, only an amount equal to 31 per centum of the lower of (i) the amount of dividends paid during such taxable year on its preferred stock or (ii) the adjusted net income for such taxable year minus the credit for dividends received provided in subsection (b) for such year.". Sec. 202(a), Excess Profits Tax Act of 1950, amended Sec. 26 (h)(1)(B), IRC, by striking out "31 per centum" and inserting in lieu thereof "30 per centum". Sec. 121(g) (1), RA of 1950, amended Sec. 26 (h) (2), IRC, by striking out "As used in this subsection and section 15(a)" and inserting in lieu thereof "As used in this subsection, subsection (b), and sections 13 and 15". Sec. 123, RA of 1950, makes amendment applicable to taxable years ending after Dec. 31, 1949. Sec. 122(c), RA of 1950, amended Sec. 26, IRC, by adding subsection (i), which reads as follows: "(i) WESTERN HEMISPHERE TRADE CORPORATIONS.-In the case of a western hemisphere trade corporation (as defined in section 109) "(1) TAXABLE YEARS BEGINNING AFTER JUNE 30, 1950.-In the case of any taxable year beginning after June 30, 1950, an amount equal to 31 per centum of its normal-tax net income computed without regard to the credit provided in this subsection. "(2) CALENDAR YEAR 1950.-In the case of a taxable year beginning on January 1, 1950, ånd ending on December 31, 1950, an amount equal to 33 per centum of its normal-tax net income computed without regard to the credit provided in this subsection." Sec. 202(b), Excess Profits Tax Act of 1950, amended Sec. 26(i) (1), IRC, by striking out "31 per centum" and inserting in lieu thereof "30 per centum". Sec. 202(c) of said Act makes amendment applicable to taxable years beginning on or after July 1, 1950. SECTION 31 - AMENDED. Sec. 208(d)(3), Social Security Act Amendments of 1950, amended Sec. 31, IRC, by inserting immediately after the words "the tax" the following: "(other than the tax imposed by subchapter E, relating to tax on self-employment income)". SECTION 51(b)(3). Sec. 103, RA of 1950, reads as follows: 16 FEDERAL INCOME, ESTATE AND GIFT TAX LAWS SEC. 103. COMPUTATION OF TAX IN CASE OF CERTAIN JOINT RETURNS. If a joint return of a husband and wife is filed under the provisions of section 51 (b) (3) of the Internal Revenue Code in a case where the husband and wife have different taxable years because of the death of either spouse, and the taxable year of the surviving spouse covered by such joint return began before October 1, 1950, and ended after September 30, 1950, the amendments made by this part shall be applicable in respect of such joint return as if the taxable years of both spouses covered by the joint return ended on the date of the closing of the surviving spouse's taxable year. For amendments referred to see Secs. 11, 12(b), 12(c), and 12(f), supra. SECTION 52. Sec. 305, Excess Profits Tax Act of 1950, reads as follows: SEC. 305. FILING OF RETURNS FOR TAXABLE YEARS ENDING AFTER In the case of a corporation subject to the tax imposed by subchapter D of chapter 1 of the Internal Revenue Code for a taxable year ending after June 30, 1950, but prior to December 31, 1950, such corporation shall after the date of the enactment of this Act and before March 15, 1951, make a return for such taxable year with respect to the tax imposed by chapter 1 of the Internal Revenue Code for such taxable year. The return required by this section for such taxable year. shall constitute the return for such taxable year for all purposes of the Internal Revenue Code; and no return for such taxable year, with respect to any tax imposed by chapter 1 of such code, filed on or before the date of the enactment of this Act shall be considered for any of such purposes as a return for such year. The taxes imposed by chapter 1 of such code (determined with the amendments made. by this Act) for such taxable year shall be paid on March 15, 1951, in lieu of the time prescribed in section 56 (a) of such code. All payments with respect to any tax for such taxable year imposed by chapter 1 of such code under the law in effect prior to the enactment of this Act, to the extent that such payments have not been credited or refunded, shall be deemed payments made at the time of the filing of the return required by this section on account of the tax for such taxable year under chapter 1 determined with the amendments made by this Act. SECTION 53(a) (1) - AMENDED. 53(a)(1), Sec. 205(b)(1), RA of 1950, amended Sec. 53(a) (1), IRC, to read as follows: TAX LAWS 1950 POCKET SUPPLEMENT 17 ERTAIN JOINT RETUR is filed under the pr e Secs, 11, "(1) GENERAL RULE.-Returns made on the basis of the calendar year shall be made on or before the fifteenth day of March following the close of the calendar year, except that in the case of the return of the fiduciary of an estate or trust, the return shall be made on or before the fifteenth day of April following the close of the calendar year. Returns made on the basis of a fiscal year shall be made on or before the fifteenth day of the third month following the close of the fiscal year, except that in the case of the return of the fiduciary of an estate or trust, the return shall be made on or before the fifteenth day of the fourth month following the close of the fiscal year." Sec. 205 (b) (3), RA of 1950, makes amendment applicable to taxable years ending after Sept. 23, 1950. 1950, reads ARS ENDING AFTER ax imposed by sub e amendments made D. 1 Sec. 53(a)(1 Sec. 205(b)(2), RA of 1950, amended Sec. 56(a), IRC, by inserting before the period at the end thereof the following: ", except that in the case of the tax imposed upon an estate or trust the tax shall be paid on the fifteenth day of April following the close of the calendar year, or, if the return should be made on the basis of a fiscal year, then on the fifteenth day of the fourth month following the close of the fiscal year". Sec. 205(a), RA of 1950, amended Sec. 56(b), IRC, to read as follows, and made amendment effective with respect to taxable years ending on or after December 31, 1950: "(b) INSTALLMENT PAYMENTS. "(1) ESTATES OF DECEDENTS.-In the case of the estate of a decedent, the fiduciary may elect to pay the tax in four equal installments. "(2) CORPORATIONS.-In the case of a corporation "(A) Taxable Years Ending Before December 31, 1954.The taxpayer may elect with respect to any taxable year ending before December 31, 1954, to pay the tax in four installments, and in such case the amount of the tax paid by each installment shall be determined as follows: |