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TITLE 26-INTERNAL REVENUE CODE (b) Method of adjustment The adjustment authorized in section 1311(a) shall be made by assessing and collecting, or re- funding or crediting, the amount thereof in the same manner as if it were a deficiency deter- mined by the Secretary with respect to the tax- payer as to whom the error was made or an overpayment claimed by such taxpayer, as the case may be, for the taxable year or years with respect to which an amount is ascertained under subsection (a), and as if on the date of the determination one year remained before the expiration of the periods of limitation upon assessment or filing claim for refund for such taxable year or years. If, as a result of a deter- mination described in section 1313(a)(4), an ad- justment has been made by the assessment and collection of a deficiency or the refund or credit of an overpayment, and subsequently such de- termination is altered or revoked, the amount of the adjustment ascertained under subsection (a) of this section shall be redetermined on the basis of such alteration or revocation and any overpayment or deficiency resulting from such redetermination shall be refunded or credited, or assessed and collected, as the case may be, as an adjustment under this part. In the case of an adjustment resulting from an increase or de- crease in a net operating loss or net capital loss which is carried back to the year of adjustment, interest shall not be collected or paid for any period prior to the close of the taxable year in which the net operating loss or net capital loss arises. (c) Adjustment unaffected by other items The amount to be assessed and collected in the same manner as a deficiency, or to be re- funded or credited in the same manner as an overpayment, under this part, shall not be di- minished by any credit or set-off based upon any item other than the one which was the sub- Ject of the adjustment. The amount of the ad- justment under this part, if paid, shall not be recovered by a claim or suit for refund or suit for erroneous refund based upon any item other than the one which was the subject of the adjustment. (d) Periods for which adjustments may be made No adjustment shall be made under this part in respect of any taxable year beginning prior to January 1, 1932. (e) Taxes imposed by subtitle C This part shall not apply to any tax imposed by subtitle C (sec. 3101 and following relating to employment taxes). (Aug. 16, 1954, ch. 736, 68A Stat. 340; Sept. 2, 1958, Pub. L. 85-866, title I, §59(b), 72 Stat. 1647; June 21, 1965, Pub. L. 89-44, title VIII, § 809(d)(5)(B), 79 Stat. 168; Dec. 30, 1969, Pub. L. 91-172, title V, § 512(f)(7), (8), 83 Stat. 641, 642; Oct. 4, 1976, Pub.. L. 94-455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834.) AMENDMENTS 1976-Subsec. (b). Pub. L.,494-455 struck out "or his delegate" following "Secretary". 1969-Subsec. (a). Pub. L.' 91-172, § 512(f)(7), substi- tuted "capital loss carryback or carryover" for "capital loss carryover". Subsec. (b). Pub. L. 91-172, § 512(f)(8), added refer- ence to net capital loss. 1965--Subsec. (a)(1)(A). Pub. L. 89-44 struck out "(b)(1) and (3)" and inserted in lieu thereof "(b)(1), (3), and (4)". 1958-Subsec. (c). Pub. L. 85-866 substituted in the second sentence "The" for "Other than in the case of an adjustment resulting from a determination under section 1313(a)(4), the". EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 applicable with re- spect to net capital losses sustained in taxable years beginning after Dec. 31, 1969, see section 512(g) of Pub. L. 91-172, set out as an Effective Date of 1969 Amendment note under section 1212 of this title. EFFECTIVE DATE OF 1965 AMENDMENT Amendment of subsec. (a)(1)(A) by Pub. L. 89-44 ap- plicable to taxable years beginning on or after July 1, 1965, see section 809(f) of Pub. L. 89-44, set out as an Effective Date of 1965 Amendment note under section 6420 of this title. EFFECTIVE DATE OF 1958 AmENDMENT Amendment by Pub. L. 85-866 effective with respect to determinations made after Nov. 14, 1954, see section 59(c) of Pub. L. 85-866, set out as an Effective Date of 1958 Amendment note unider section 1312 of this title. SECTION REFERM TO IN OTHER SECTIONS This section is referred to in sections 481, 1311, 1333, 1351, 6164, 6411 of this title. [§ 1315. Repealed. Pub. L. 94-455, title XIX, § 1901(a) (143), Oct. 4, 1976, 90 Stat. 1788] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 341, re- lated to the effective date of this part. EFFECTIVE DATE OF REPEAL Repeal by section 1901(a)(143) of Pub. L. 94-455 ef- fcctive for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Ef- fective Date of 1976 Amendment note under section 2 of this title. [PART III-REPEALED] [§ 1321. Repealed. Pub. L. 94-455, title XIX, § 1901(a) (144), Oct. 4, 1976, 90 Stat. 1788] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 342, re- lated to involuntary liquidation of LIFO inventories. EFFECTIVE DATE OF REPEAL Repeal by section 1901(a)(144) of Pub. L. 94-455 ef- fective for taxable years beginning after Dec. 31, 1976. see section 1901(d) of Pub. L. 94-455, set out as an Ef- fective Date of 1976 Amendment note under section 2 of this title. [PART IV-REPEALED] [§§ 1331 to 1337. Repealed. Pub. L. 94-455, title XIX, § 1901(a)(145)(A), Oct. 4, 1976, 90 Stat. 1788] Section 1331, act Aug. 16, 1954, ch. 736, 68A Stat. 343, related to war loss recoveries. Section 1332, act Aug. 16, 1054, ch. 736, 68A Stat. 343, related to inclusion in gross income of war loss re- coveries. Section 1333, act Aug. 16, 1954, ch. 736, 68A Stat. 344, related to tax adjustment measured by prior benefits. Section 1334, act Aug. 16, 1954, ch. 736, 68A Stat. 346, related to restoration of value of investments re- ferable to destroyed or seized property. Section 1335, act Aug. 16, 1954, ch. 736, 68A Stat. 346, related to election by taxpayer for application of section 1333. Section 1336, act Aug. 16, 1954, ch. 736, 68A Stat. 347, related to basis of recovered property. 71-999 0 - 78 - 48 (Vol. 7) Page 725 H§ 1331 to 1337