66 "(B)_ Taxable Years Ending on or After December 31, 1954. The taxpayer may elect with respect to any taxable year ending on or after December 31, 1954, to pay the tax in two equal installments. "(3) DATES FOR INSTALLMENT PAYMENTS.— "(A) Four Installments.-In any case in which the tax may be paid in four installments, the first installment shall be paid on the date prescribed for the payment of the tax by the taxpayer, the second installment shall be paid on the 15th day of the third month, the third installment on the 15th day of the sixth month, and the fourth installment on the 15th day of the ninth month, after such date. "(B) Two Installments.-In any case in which the tax may be paid in two installments, the first installment shall be paid on the date prescribed for the payment of the tax by the taxpayer, and the second installment shall be paid on the 15th day of the third month after such date. "(4) REQUIREMENT FOR PAYMENT.-If any installment is not paid on or before the date fixed for its payment, the whole of the tax unpaid shall be paid upon notice and demand from the collector." Sec. 221 (g), RA of 1950, amended Sec. 58(a), IRC, by inserting after "Chapter 9 is not made applicable" the following: ", but including every alien individual who is a resident of Puerto Rico during the entire taxable year". Sec. 221(k), RA of 1950, makes amendment applicable to taxable years beginning after Dec. 31, 1950. SECTION 58(b) (1) - AMENDED. Sec. 208(d) (4), Social Security Act Amendments of 1950, amended Sec. 58(b)(1), IRC, by inserting immediately after the words "withheld at source" the following: I LAWS 1950 POCKET SUPPLEMENT 19 "and without regard to the tax imposed by subchapter E on self-employment income". Sec. 301(b), RA of 1950, amended Sec. 101, IRC, by adding at the end thereof the following paragraph: "An organization operated for the primary purpose of carrying on a trade or business for profit shall not be exempt under any paragraph of this section on the ground that all of its profits are payable to one or more organizations exempt under this section from taxation. For the purposes of this paragraph the term 'trade or business' shall not include the rental by an organization of its real property (including personal property leased with the real property)." Sec. 303, RA of 1950, provides that said amendment shall be applicable only with respect to taxable years beginning after December 31, 1950. The determination as to whether an organization is exempt under section 101 of the Internal Revenue Code from taxation for any taxable year beginning before January 1, 1951, shall be made as if section 301 (b) of this Act had not been enacted and without inferences drawn from the fact that the amendment made by such section is not expressly made applicable with respect to taxable years beginning before January 1, 1951. 1 who is a ire taxable ¡ amendment aning after J. t Amendments of inserting I at source" the SECTION 101 - AMENDED. Sec. 301(c)(1), RA of 1950, amended the introductory sentence of Sec. 101, IRC, by striking out "Except as provided in Supplement U, the following and by adding at the end of Sec. 101 (following the 20 FEDERAL INCOME, ESTATE AND GIFT TAX LAWS "Notwithstanding supplement U, an organization described in this section (other than in the preceding paragraph) shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes." Sec. 303, RA of 1950, provides that the Sec. 332(c), RA of 1950, amended Sec. 101(6), IRC, by striking out "legislation;" and inserting in lieu thereof "legislation. For loss of exemption under certain circumstances, see sections 3813 and 3814;". See footnote.# SECTION 107 (e) - NEW. Sec. 208(d)(5), Social Security Act Amendments of 1950, amended Sec. 107, IRC, by adding at the end thereof the following new subsection: Sec. 302, RA of 1950, reads as follows: SEC. 302. EXEMPTION OF CERTAIN ORGANIZATIONS FOR PAST YEARS. (a) TRADE OR BUSINESS NOT UNRELATED.-For any taxable year beginning prior to January 1, 1951, no organization shall be denied exemption under paragraph (1), (6), or (7) of section 101 of the Internal Revenue Code on the grounds that it is carrying on a trade or business for profit if the income from such trade or business would not be taxable as unrelated business income under the provisions of Supplement U of the Internal Revenue Code, as amended by this Act, or if such trade or business is the rental by such organization of its real property (including personal property leased with the real property). "(e) TAX ON SELF-EMPLOYMENT INCOME.-This section shall be applied without regard to, and shall not affect, the tax imposed by subchapter E, relating to tax on self-employment income." Sec. 131(a), RA of 1950, struck out subsection (e) and inserted in lieu thereof the following: "(e) CERTAIN TAXABLE YEARS OF INDIVIDUALS BEGINNING BEFORE OCTOBER 1, 1950, AND ENDING AFTER SEPTEMBER 30, 1950.-In the case of a taxable year (other than one beginning on January 1, 1950, and ending on December 31, 1950) of a taxpayer other than a corporation beginning before October 1, 1950, and ending after September 30, 1950, the tax imposed by sections 11, 12, and 400 shall be an amount equal to the sum of "(1) that portion of a tentative tax, computed under the provisions of sections 11 (b), 12 (b) (2), 12 (c) (2), and 12 (d), or Table III of section 400, applicable to such taxable year, which the number of calendar months in such taxable year prior to October 1, 1950, bears to the total number of calendar months in such taxable year, plus (Footnote continued from previous page.) (b) PERIOD OF LIMITATIONS.-In the case of an organization which would otherwise be exempt under section 101 of the Internal Revenue Code were it not carrying on a trade or business for profit, the filing of the information return required by section 54 (f) of the Internal Revenue Code (relating to returns by tax-exempt organizations) for any taxable year beginning prior to January 1, 1951, shall be deemed to be the filing of a return for the purposes of section 275 of the Internal Revenue Code (relating to period of limitation upon assessment and collection). In the case of such an organization which was, by the provisions of section 54 (f) of the Internal Revenue Code, specifically not required to file such information return, for the purposes of the preceding sentence a return shall be deemed to have been filed at the time when such return should have been filed had it been so required. The provisions of this subsection shall not apply to a taxable year of such an organization with respect to which, prior to September 20, 1950, (1) any amount of tax was assessed or paid, or (2) a notice of deficiency under section 272 of the Internal Revenue Code was sent to the taxpayer. (c) DENIAL OF DEDUCTIONS.-A gift or bequest to an organization prior to January 1, 1951, for religious, charitable, scientific, literary, or educational purposes (including the encouragement of art and the prevention of cruelty to children or animals) otherwise allowable as a deduction under section 23 (o) (2), 23 (q) (2), 162 (a), 505 (a) (2), 812 (d), 861 (a) (8), 1004 (a) (2) (B), or 1004 (b) (2) or (3) of the Internal Revenue Code, may not be denied under such sections if a denial of exemption to such organization for the taxable year of the organization in which such gift or bequest was made is prevented by the provisions of subsections (a) or (b) of this section. "(2) that portion of a tentative tax, computed under the provisions of sections 11 (a), 12 (b) (1), 12 (d), and 12 (f), or Table I of section 400, as if such provisions were applicable to such taxable year, which the number of calendar months in such taxable year after September 30, 1950, bears to the total number of calendar months in such taxable year. For the purposes of this subsection, a calendar month only part of which falls within the taxable year (A) shall be disregarded if less than 15 days of such month are included in such taxable year, and (B) shall be included as a calendar month within the taxable year if more than 14 days of such month fall within the taxable year. "(f) CERTAIN TAXABLE YEARS OF CORPORATIONS BEGINNING BEFORE JULY 1, 1950, AND ENDING AFTER JUNE 30, 1950.-In the case of a taxable year (other than one beginning on January 1, 1950, and ending on December 31, 1950) of a corporation beginning before July 1, 1950, and ending after June 30, 1950, the tax imposed by sections 13, 14, and 15 shall be an amount equal to the sum of— "(1) that portion of a tentative tax, computed under the provisions of sections 13 (b) (3), 14, and 15 (b) (3), applicable to such taxable year, which the number of days in such taxable year prior to July 1, 1950, bears to the total number of days in such taxable year, plus "(2) that portion of a tentative tax, computed under the provisions of sections 13 (b) (1) and 15 (b) (1), as if such provisions (and the provisions of sections 26 (b) (2) (A), 26 (h)(1). (B), and 26 (i) (1)) were applicable to such taxable year, which the number of days in such taxable year after June 30, 1950, bears to the total number of days in such taxable year. "(g) SPECIAL CLASSES OF TAXPAYERS.-This section shall not apply to an insurance company subject to Supplement G or an investment company subject to Supplement Q." Sec. 131(b), RA of 1950, provides that the amendment shall not apply to any taxable year described in Sec. 108(a), (b), or (c), IRC. SECTION 108(f) (2) - AMENDED. Sec. 203, Excess Profits Tax Act of 1950, amended Sec. 108(f)(2), IRC, by adding at the end thereof the following new sentence: "For the purposes of this paragraph, the provisions of sections 15 (b) (1), 26 (h) (1), and 26 (i) (1) shall be applied without regard to the amendments made to such provisions by Title II of the Excess Profits Tax Act of 1950.", |