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TITLE 26-INTERNAL REVENUE CODE quired to be included in his gross income under section 1373(b) as a shareholder of such corporation for his taxable year in which or with which the taxable year of the corporation ends. (Added Pub. L. 85-866, title I, § 64(a), Sept. 2, 1958, 72 Stat. 1654, and amended Pub. L. 88- 272, title II, §§ 201(d)(13), 233(b), Feb. 26, 1964, 78 Stat. 32, 112; Pub. L. 89-389, §§ 1(a), (b), 2(b)(4), Apr. 14, 1966, 80 Stat. 111, 114; Pub. L. 91-172, title III, § 301(b)(11), Dec. 30, 1969, 83 Stat. 586; Pub. L. 94-455, title XIX, §§ 1901(a)(151), (b)(33)(Q), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1788, 1802, 1834.) AMENDMNTS 1976-Subsec. (a)(1). Pub. L. 94-455, § 1901(b)(33)(Q) (1), (ii), substituted "the corporation's net capital gain" for "the excess of the corporation's net long-term cap- ital gain over its short-term capital loss" and "such net capital gain" for "such excess". Subsec. (a)(3). Pub. L. 94-455, § 1901(b)(33)CQ)(iii), substituted "an electing small business corporation's net capital gain" for "the excess of an electing small business corporation's net long-term capital gain over Its net short-term capital loss". Subsec. (b). Pub. L. 94-455. § 1901(a)(151)(A), substi- tuted in subsec. catchline "Dividends not treated as such for certain purposes" for "Dividends received credit not allowed". Subsec. (c). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (d)(l). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (f)(3). Pub. L. 94-455, § 1901(a)(151)(B), struck out subsec. (f)(3) which limited the applicabil- ity of subsec. (f)(l) where elections as to certain distri- butions of the proceeds of a sale of capital assets, which were treated as having been made on the last day of the taxable year within which the sale oc- curred, were concerned. 1969--Subsec. (a)(3). Pub. L. 91-172 substituted "taxes imposed" for "tax imposed by section 1378" in the heading and "taxes imposed by sections 56 and 1378(a) on" for "tax Imposed by section 1378(a) on the income of" in the text, respectively. 1966-Sibsec. (a). P'ib. L. 89-389, § 2(b)(4), added par. (3). Subsec. (d)(2)(B)(ii). Pub. L. 89-389, § 1(b). substitut- ed "under subsection (f) or paragraph (1) of this sub- section" for "under paragraph (1)". Subsec. (e). Pub. L. 89-389, § 1(a)(2), repealed subsec. (e) which permitted distributions of the proceeds of a sale of capital assets to be treated as having been made on the last day of the taxable year within which the sale occurred, if the distributions were made within two and one-half months after the end of that taxable year and were made pursuant to a resolution of the board of directors adopted before the end of the year in question and if each shareholder owned the same proportion of the corporation's stock on the dis- tribution date as he did on the last days of the corpo- ration's last taxable year. Subsec. (f). Pub. L. 89-389, § l(a)(1), added subsec. (f). 1964-Subsec. (b). Pub. L. 88-272, § 201(d)(13), de- leted "section 34," preceding "section 37." Subsec. (e). Pub. L. 88-272, § 233(b), added subsec. (e). EFFECTIVE DATE OF 1978 AMENDMENT Amendment of subsecs. (a)(1), (3). (b). (f)(3) by sec- tion 1901(a)(151), (b)(33)(Q) of Pub. L. 94-455 applica- ble with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. E rncTivE DATE or 1969 AMENDMENT Amendment by Pub. L. 91-172 applicable to taxable years ending after Dec. 31. 1969, see section 301(c) of Pub. L. 91-172, set out as an Effective Date note under section 56 of this title. EFFECTIVE DATE O 1966 AMENDMENT Amendment of subsec. (a) by Pub. L. 89-389 applica- ble with respect to taxable years of electing small busi- ness corporations beginning after April 14, 1966, but not applicable with respect to sales or exchanges oc- curring before February 24, 1966, see section 2(c) of Pub. L. 89-389, set out as an Effective Date note under section 1378 of this title. Section 1(a)(2) of Pub. L. 89-389 provided in part that the repeal of subsec. (e) was effective "with re- spect to distributions made after the close of any tax- able year of the corporation beginning after the date of the enactment of this Act [Apr. 14, 1966]." Section lc) of Pub. L. 89-389 provided that: "Except as provided by subsection (d) [set out as a note under this section], the amendments made by subsections (a) (1) and (b) [adding subsec. (f) and amending subsec. (d)(2)(B)(ii) of this section] shall apply only with re- spect to distributions made after the date of the enact- ment of this Act (Apr. 14, 1966]." EFFECTIVE DATE OF 1964 AMENDMENT Amendment of subsec. (b) by Pub. L. 88-272 applica- ble with respect to dividends received after Dec. 31, 1964, in taxable years ending after such date, see sec- tion 201(e) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 37 of this title. Amendment of subsec. (e) by Pub. L. 88-272 applica- ble to taxable years of corporations beginning after Dec. 31, 1957, see section 233(c) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 1371 of this title. EFFETIvE DATE Section applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 64(e) of Pub. L. 85-866, set out as an Effective Date of 1958 Amend- ment note under section 172 of this title. DISTRIBUTIONS OF MONEY BY CORPORATIONS ON OR BEFORE APRIL 14. 1966; ELECTION BY CORPORATIONS AND CONSENT OF SHAREHoLDERS; EXTENSION OF FILING PERIOD; DEFICIENCY ASSESSMENT Section l(d) of Pub. L. 89-389 provided that the ad- dition of subsec. (f) and amendment of subsec. (d)(2)(B)(ii) by section 1(a)(1), (b) of Pub. L. 89-389 was to apply with respect to distributions of money, other than distributions with respect to which an elec- tion under subsec. (e) of this section applied, made by a corporation on or before Apr. 14, 1966, and on or after the date of the first distribution of money during the taxable year designated by the corporation under certain conditions, that an election by a corporation under this subsection, and the consent thereto of the persons who are or were shareholders of such corpora- tion, was to be made in such manner and within such time as the Secretary of the Treasury or his delegate prescribed by regulations, but that the period for making such election was not to expire before one year after the date on which the regulations pre- scribed under this subsection were published in the Federal Register, and included special provisions relat- ing to consent, credit, or refund of overpayments, in- terest, and certain other related matters. SECTION REFERRED TO IN OTT=R SECTIONS This section is referred to in sections 1372, 1377 of this title. Page 737 § 1375