Page 742

TITLE 26-INTERNAL REVENUE CODE (d) Payment period for each taxable year For purposes of subsections (b) and (c)(2), the payment period for any taxable year is the period beginning with the first day of such tax- able year and ending with the fifteenth day of the ninth month following the close of such year. For purposes of subsections (b)(1) and (c)(2)(A), a qualified check issued during the payment period shall be treated as an amount paid in money during such period if endorsed and cashed on or before the 90th day after the close of such period. (e) Products marketed under pooling arrangements For purposes of subsection (b), in the case of a pooling arrangement for the marketing of products- (1) the patronage shall (to the extent pro- vided in regulations prescribed by the Secre- tary) be treated as patronage occurring during the taxable year in which the pool closes, and (2) the marketing of products shall be treat- ed as occurring during any of the taxable years in which the pool is open. (f) Treatment of earnings received after patronage occurred If any portion of the earnings from business done with or for patrons is includible in the or- ganization's gross income for a taxable year after the taxable year during which the patron. age occurred, then for purposes of applying paragraphs (1) and (2) of subsection (b) to such portion the patronage shall, to the extent pro- vided in regulations prescribed by the Secre- tary, be considered to have occurred during the taxable year of the organization during which such earnings are includible in gross income. (Added Pub. L. 87-834, § 17(a), Oct. 16, 1962, 76 Stat. 1046, and amended Pub. L. 89-809, title II, § 211(a)(1)-(4), Nov. 13, 1966, 80 Stat. 1580, 1581; Pub. L. 91-172, title IX, § 911(a), Dec. 30, 1969, 83 Stat. 722; Pub. L. 94-455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) AMENDMENTS 1976-Pub. L. 94-455 struck out "or his delegate" fol- lowing "Secretary" wherever appearing. 1969-Subsec. (b)(3). Pub. L. 91-172 expanded the category of per-unit retain allocations that may not be taken into account in determining the taxable income of an organization, by including per-unit retain alloca- tions paid for in money or other property (except non- qualified per-unit retain certificates as defined in sec- tion 1388() of this section). 1966-Subsec. (a). Pub. L. 89-809. § 211(a)(1), insert- ed reference to amounts paid to patrons as a per-unit retain allocation as defined in section 1388(f). Subsec. (b). Pub. L. 89-809, § 211(a)(2), inserted "and per-unit retain allocations" in the subsec. catchline, added pars. (3) and (4), and, in the material following the pars., added provisions making the existing mate- rial applicable only to amounts described in pars. (1) and (2rand adding material covering the treatment of amounts described in pars. (3) and (4). Suosec, (e). Pub. L. 89-809, § 211(a)(3), added provi- sion that the marketing of products shall be treated as occurring during any of the taxable years in which the pool is open. Subsec. (f). Pub. L. 89-809. §211(a)(4), substituted "paragraphs (1) and (2) of subsection (b)" for "subsec- tion (b)". EFFEcTivE DATE OF 1969 AMENDMFNT Section 911(c) of Pub. L. 91-172 provided that: "The amendments made by this section [amending this sec- tion and section 1388 of this title] shall apply to per- unit retain allocations made after October 9, 1969." ErrzcTivE DATE OP 1966 AMENDMENT Section 211(e) of Pub. L. 89-809 provided that: "(1) The amendments made by subsections (a), (b), and (c) [amending sections 1382, 1383, 1385, and 1388 of this title] shall apply to per-unit retain allocations made during taxable years of an organization de- scribed in section 1381(a) [section 1381(a) of this title] (relating to organizations to which part I of sub- chapter T of chapter 1 applies) beginning after April 30, 1966, with respect to products delivered during such years. "(2) The amendments made by subsection (d) [amending section 6044 of this title] shall apply with respect to calendar years after 1966." EFFECTIVE DATE Except as otherwise provided, section applicable to taxable years of organizations described in section 1381(a) of this title beginning after Dec. 31, 1962, see section 17(c) of Pub. L. 87-834, set out as an Effective Date note under section 1381 of this title. SECTION REFERED TO IN OTHER SECTIONS This section Is referred to in sections 46, 1383, 1385, 1388, 6044 of this title. § 1383. Computation of tax where cooperative re- deems nonqualified written notices of allocation or nonqualified per-unit retain certificates (a) General rule If, under section 1382(b)(2) or (4), or (c)(2)(B), deduction is allowable to an organiza- tion for the taxable year for amounts paid in redemption of nonqualified written notices of allocation or non-qualified per-unit retain certi- ficates, then the tax imposed by this chapter on such organization for the taxable year shall be the lesser of the following: (1) the tax for the taxable year computed with such deduction; or (2) an amount equal to- (A) the tax for the taxable year computed without such deduction, minus (B) the decrease in tax under this chapter for any prior taxable year (or years) which would result solely from treating such non- qualified written notices of allocation or nonqualified per-unit retain certificates as qualified written notices of allocation or qualified per-unit retain certificates (as the case may be). (b) Special rules (1) If the decrease in tax ascertained under subsection (a)(2)(B) exceeds the tax for the taxable year (computed without the deduc- tion described in subsection (a)) such excess shall be considered to be a payment of tax on the last day prescribed by law for the pay- ment of tax for the taxable year, and shall be refunded or credited in the same manner as if it were an overpayment for such taxable year. (2) For purposes of determining the de- crease in tax under subsection (a)(2)(B), the stated dollar amount of any nonqualified written notice of allocation or nonqualified per-unit retain certificate which is to be treat- ed under such subsection as a qualified writ- ten notice of allocation or qualified per-unit § 1383 Page 742