Internal Revenue Service-Continued
Income and excess profits taxes regulations (1939 IRC)-Continued
Excess profits tax, 26 Part 40-Continued
Rate and computation of tax, 26 $$ 40.430–1–40.459 (e)-1

Foreign personal holding companies; exemption, 26 $ 40.454-1
Industries, depressed; average base period net income for depressed

industry subgroups, 26 $$ 40.446–1–40.446–3
Determinations of various industries, 26 $ 40.446–2 (c)
Industry base period rates of return, 26 38 40.447–1-40.447–3

Classification of various industries, 26 $ 40.447-2
Installment basis taxpayers; election to accrue income, 26 $$ 40.-

455–1–40.455-5
Investment companies, regulated; exemption, 26 $ 40.454_1
Long-term contracts, taxpayers with income from; election re-

specting accounting, 26 $$ 455-1–40.455-5 Merchant Marine Act, corporations completing contracts under,

26 $$ 40.457-1, 40.457-2
Mining corporations:

Nontaxable income. See Nontaxable income.
Strategic minerals; exemption of corporations mining, 26

§ 450–1
Natural gas operations; nontaxable income. See Nontaxable in-

come.
Net income for taxable years, computation of:
Average base period net income:
Abnormalities during base period, 26 $$ 40.442–1–40.442–3

Special rules, 26 $ 40.435–6 (d)
Alternative average base period net income, 26 $ 40.442-4
Basis of assets, 26 $ 40.459 (e)-1
Catastrophe by fire, storm, explosion, etc., during base

period, 26 $ 40.459 (b)-1
Change in products or services, 26 $$ 40.443–1–40.443-3
Depressed industry subgroups, 26 $$ 40.446–1–40.446–3
Determination of 26 $$ 40.435–1–40.435–7
Increase in capacity for production or operation, 26

$$ 40.444-1-40.444-3
New corporations, 26 $$ 40.445–1, 40.445–2
Newspaper operations, consolidation of, 26 $ 0.459 (c)-1
Strategic and critical materials, companies manufactur-

ing peacetime products from, 26 § 40.459 (f)-1 Television broadcasting companies, 26 $ $ 40.459 (d)-1

40.459 (d)-6 Transition from war production and increase in peace

time capacity, 26 § 40.459 (a)-1 Excess profits net income: For taxable years ending after June 30, 1950, 26 $$ 40.433

(a)-1-40.433 (a)-3 For taxable years in base period, 26 $$ 40.433 (b)-1

40.433 (b)-4 Newspaper operations, consolidation of; computation of net in

come, 26 $ 40.459 (c)-1
Nontaxable income, from certain mining and timber operations,

and from natural gas properties, 26 $$ 40.453–1–40.453–7
Personal holding companies; exemption, 26 $ 40.454-1
Personal service corporations; taxability, 26 $$ 40.449–1-40.449-3
Public utilities, regulated; excess profits credit, 26 $$ 40.448–1–

40.448-3
Rates of tax, 26 $ 40.430-2
Strategic and critical materials:
Companies manufacturing peacetime products from 26 § 40.-

459 (f)-1
Corporations mining, 26 § 40.450–1
Tax liability; adjustments in case of position inconsistent with

prior income tax liability, 26 $$ 40.452–1–40.452-5

Internal Revenue Service-Continued
Income and excess profits taxes regulations (1939 IRC)-Continued
Excess profits tax, 26 Part 40—Continued
Rate and computation of tax-Continued
Television broadcasting companies; computation of net income,

26 88 40.459 (d)-1—40.459 (d)-6
Timber operations, certain; nontaxable income. See Nontaxable

income.
Foreign corporations:

Income tax provisions respecting. See Income tax.
Returns of information with respect to; form, contents, place of filing,

etc., 26 Part 20
Foreign countries, certain, taxation pursuant to treaties with. See Treaties

and tax conventions.
Husband and wife, income tax regulations affecting. See Income tax.
Income tax; taxable years beginning after December 31, 1951, 26 Part 39
For taxable years beginning after December 31, 1953, see Income tax

regulations (1954 IRC), below.
Accounting; methods and periods (fiscal year, calendar year, etc.),

26 $$ 39.41-39.48 Change of accounting period, 26 % 39.46_1 Computation of net income; bases and accounting methods and

periods in general, 26 $$ 39.41-1-39.41-4 Controlled taxpayer; determination of net income of, 26 § 39.45–1 Deductions and credits, period for which taken, 26 $$ 39.43–1,

39.43-2
Definitions, 26 $ 39.48
Gross income, period for inclusion of items of, 26 $$ 39.42–1-

39.42-7
Long-term contracts, 26 $ 39.42-4
Non-interest-bearing obligations issued at discount, 26 $ 39.42–6
Possession, income not reduced to, 26 $ 39.42-2
Receipt, constructive, 26 $ 39.42–3
Short-term obligations issued on discount basis, 26 § 39.42–7

Trading stamps, redemption of; subtraction for, 26 § 39.42–5
Returns for periods of less than twelve months, 26 $$ 39.47–1,

39.47-2 Sales of personal or real property; installment sales of property,

obligations, etc., 26 $$ 39.44–1–39.44-5
Gain or loss upon disposition of installment obligations, 26

$ 39.44-5
Addition to tax; penalty for delinquency. See Penalties
Adjusted gross income. See Gross income.
Adjustments pursuant to determinations under income tax laws, 26

$$ 39.3801 (a) (1)-39.3801 (g)
Ascertainment of amount of, 26 § 39.3801 (d)-1
Circumstances of, 26 $ 39.3801 (b)
Correlative deductions and inclusions in net income of estates

and trusts specified in revenue acts, 26 $ 39.3801 (b)-4 Determination of basis of property in case of erroneous treat

ment of transaction relating to acquisition thereof, 26

$ 39.3801 (b)-5
Disallowed deductions or credits, 26 39.3801 (b)-9
Double allowance of a deduction or credit, 26 $ 39.3801 (b)-2
Double inclusion of item of gross income, 26 § 39.3801 (b)-1
Erroneous exclusion of item of gross income with respect to

which tax was paid, 26 $ 39.3801 (b)-3
Exclusions, required, 26 $ 39.3801 (b)-10
Inconsistent position:
Existence of status of related taxpayer at time of first

maintenance of, 26 $ 39.3801 (b)-8
Operation dependent upon maintenance of, 26 $ 39.3801

(b)-7 Law applicable in determination of error, 26 § 39.3801 (b)-6

Internal Revenue Service-Continued
Income and excess profits taxes regulations (1939 IRC)-Continued
Income tax; taxable years beginning after December 31, 1951, 26 Part 39Con.
Adjustments pursuant to determinations under income tax laws Con.
Definitions:

Determinations, 26 $$ 39.3801 (a) (1)-2-39.3801 (a) (1)-4

Taxpayer and related taxpayer, 26 $ 39.3801 (a) (3)-1
Effect of other items on amount of, 26 § 39.3801 (e)-1
Employment taxes, provisions not applicable to, 26 § 39.3801 (g)
Method of, 26 § 39.3801 (c)-1

Years prior to 1932, no adjustment for, 26 § 39.3801 (f)
Administrative provisions, 26 $$ 39.3604–39.3795

See also Adjustments; and Definitions.
Authority to administer oaths, take testimony, and certify, 26

$ 39.3632
Carrybacks:
Extension of time for corporations expecting carrybacks, 26

§ 39.3779
Tentative carryback adjustments, 26 $$ 39.3780, 39.3781
Closing agreements and compromises, 26 $$ 39.3760, 39.3761
Collections:

Fractional parts of a cent, 26 $ 39.3658
General provisions; payment of tax by check, United States

notes, certificates, bills, etc., 26 $$ 39.3653–39.3657
Compromises, 26 $ 39.3761
Credits, abatements, refunds, 26 $$ 39.3770–39.3777
Distraint proceedings; proceedings, disposition of distrained prop-

erty, etc., 26 $$ 39.3690–39.3725
Enforcement of liability for taxes collected or withheld, 26 $ 39.3661
Examination of taxpayers, 26 § 39.3631
Expenses of detection and punishment of frauds, 26 $ 39.3792
Foreign corporations, returns of; information returns respecting,

by attorneys, etc., 26 § 39.3604
Interest on delinquent taxes; 6%, 26 $ 39.3794
Laws made applicable, 26 § 39.61
Liability, tax. See Tax liability.
Liens for taxes; release, partial discharge of property, etc., 26

$$ 39.3670–39.3680
Oaths, authority to administer, 26 § 39.3632
Penalties:
Concealment of property, withholding of records, etc.; pen-

alties, 26 $ 39.3762
Disclosure of information by officers and employees of United

States; penalties, $ 39,4047 (a)
Fraudulent bonds, permits, and entries; penalties and for-

feitures, 26 $ 39.3793
Perjury in returns; penalties, 26 § 39.3809
Real estate acquired by United States, administration of, 26

$ 39.3795 Refunds, abatements, credits, 26 $$ 39.3770–39.3777 Review, administrative, of Commissioner's decisions, prohibition of,

26 § 39.3790
Rules and regulations; Commissioner to prescribe and publish, 26

$$ 39.62, 39.3791, 39.4041
Statistics, publication of, 26 $ 39.63
Suits by United States, 26 $$ 39.3740–39.3748
Summons, jurisdiction of district courts to enforce, etc., 26

$ 39.3633
Tax liability:

Determination of, 26 $$ 39.3612-39.3617
Discovery of, 26 $$ 39.3604-39.3604-3
Enforcement of liability for taxes collected or withheld, 26

$ 39.3661
Testimony, authority to take, 26 § 39.3632

Internal Revenue Service—Continued
Income and excess profits taxes regulations (1939 IRC)-Continued
Income tax; taxable years beginning after December 31, 1951, 26 Part39 Con.

Affiliated corporations, consolidated returns for, 26 $ 39.141
Aliens, nonresident. See Nonresident alien individuals.
Alimony, etc., payments. See Husband and wife, special provisions

affecting.
Applicability of regulations, scope, etc.; introductory provisions, 26

$$ 39.1-39.4 Special classes of taxpayers (estates and trusts, partnerships, in

surance companies, foreign corporations, investment companies, personal service companies, etc.), application of

regulations to, 26 $ 39.4_1 Armed forces: Abatement of tax for certain members of armed forces, on death,

26 $ 39.154 Definitions, 26 $ 39.3797-11 Exclusion of certain allowances and payments from gross income,

26 $$ 39.22 (b) (13), 39.22 (b) (14) Residence; gain from sale or exchange of, 26 $$ 39.112 (n),

39.112 (n)-1 (f)
Banks and trust companies, etc.:

Deductions, etc. See Computation of net income.
Joint-stock land banks; obligations and mortgages issued by, not

tax-exempt, 26 § 39.3799
Rates of tax, 26 $$ 39.104-1, 39.104–2, 39.110–1
Blind individuals:

Deductions for (repealed), 26 $ 39.23 (y), note

Exemptions for, 26 $ 39.25-2 (d)
Bridges acquired by States or political subdivisions; exclusion of certain

income from gross income, 26 $ 39.116 (e)
Carry-backs:

Extension of time for corporations expecting, 26 § 39.3779
Overestimate of substantial; penalties, 26 § 39.294–2

Tentative carry-back adjustments, 26 $ 39.3780
Charitable organizations; tax exemption. See Tax-exempt corpo-

rations.
Child, income from services of; computation of income, 26 § 39.22

(m)-1 China Trade Act corporations, 26 $$ 39.261-39.265 Dividends of; exclusion from gross income, 26 $$ 39.22 (b) (8),

39.116 (f)
Postponement of income tax due dates in case of, 26 § 39.3805
Claims:

Against transferees and fiduciaries, 26 $ $ 39.311-1, 39.312–1
Against United States, involving acquisition of property; surtax on,

26 § 39.106-1
Closing agreements and compromises, 26 $ 39.3760–1
Collections:

See also Returns and payment of tax.

General provisions, 26 $$ 39.3653-39.3661
Computation of net income, 26 $$ 39.21-39.28, 39.111—39.130A-5

Acquisitions to avoid tax, 26 $$ 39.129_39.129-4
Ali ny and separate maintenance payments:

Income to former wife, 26 $ 39.22 (k)-1

Periodic; deduction for, 26 § 39.23 (u)-1
Child; income from services of, 26 $ 39.22 (m)-1
Commodity Credit loans; election to include loans in income, etc.,

26 $$ 39.123-1, 39.123-2
Credits against net income, 26 $$ 39.25–39.28 (j)
Corporations:

Bank affiliates, earnings or profits of, 26 $ 39.26 (d)
Consent dividends credit, 26 $$ 39.28 (a)-39.28 (j)

Dividends paid credit, 26 $$ 39.26–5, 39.27 (a)-39.27 (i)-1

Internal Revenue Service-Continued
Income and excess profits taxes regulations (1939 IRC)—Continued
Income tax; taxable years beginning after December 31, 1951, 26 Part39—Con.
Computation of net income, 26 $8 39.21-39.28, 39.111-39.130A-5
Credits against net income-Continued
Corporations—Continued
Dividends paid on preferred stock of public utilities, etc.,

26 § 39.26 (h)-1
Dividends received, 26 $ 39.26 (b)
Interest on obligations of United States, 26 $ 39.26 (a)
Operating loss, net, of preceding year, 26 § 39.26 (c)
Public utilities; dividends paid on preferred stock, 26

$ 39.26 (h)-1
Western Hemisphere trade corporations; percentage of

normal-tax net income, 26 § 39.26 (i) Individuals; credits for purpose of normal tax and surtax

(credit for dependents, personal exemption, etc.), 26

$$ 39.25-1, 39.25-2 Public utilities; credit for dividends paid on preferred stock,

26 $ 39.26 (1)-1
Withholding of tax on wages at source, credit for, 26

$$ 39.35-1, 39.35–2
Decedents, income in respect of, 26 $$ 39.126 (a)_39.126 (c)-1
Deductions, 26 $$ 39.23 (a)-39.24 (f)-1, 39.120–39.130
Acquisitions to evade or avoid income or excess profits tax,

26 $$ 39.129–1–39.129-4
Alimony; periodic payments, 26 § 39.23 (u)-1
Bad debts; securities, nonbusiness debts, uncollectible defi-

ciency upon sale of mortgaged property, etc., 26

$$ 39.23 (k)-1–39.23 (k)-6
Recovery, 26 $ 39.22 (b) (12)
Banks, building and loan associations, etc.:

Dividends paid, 26 § 39.23 (r)

Repayment of certain loans, 26 § 39.23 (dd)
Blind individuals; special deduction for, 26 § 39.23 (y)-1
Bond premium, amortization deduction, 26 $$ 39.125 (a)-

39.125 (e)
Capital expenditures, not deductible, 26 § 39.24 (a)-2
Circulation expenditures, 26 $ 39.23 (bb)
Contributions, 26 $$ 39.23 (n)-39.23 (q)-1
Charitable and other contributions:

By corporations, 26 $ 39.23 (q)-1
By individuals, 26 $ 39.23 (0)-1
To religious, scientific, charitable, etc., organizations;

deductibility, 26 $$ 39.3813–39.3813-3
Unlimited deduction, 26 § 39.120-1
Employers contributions to employees' trusts, pension and

annuity plans, etc., 26 $$ 39.23 (p)-1-39.23 (p)-12 Cooperative apartment corporation; amounts representing

taxes and interest paid to, 26 $ 39.23 (z)-1 Dental expenses, 26 $ 39.23 (x)-1 Depletion, of mines, oil and gas wells, timber, etc. (including

improvements), 26 8.8 39.23 (m)-1-39.23 (m)_28
Depreciation:

See also Depletion
Allowances for exhaustion, wear and tear, and obsoles-

cence of various types of property (trade or business
property, patents, copyrights, farm property, livestock,
investment property, etc.), 26 $$ 39.23 (1)-1—39.23

(1)-10
Dividends:

On preferred stock of certain corporations, 26 § 39.121
Paid by banking corporations (mutual savings banks,

savings and loan associations, cooperative banks, and
others), 26 $ 39.23 (r)