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 §§ 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 respecting 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
SS 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 income, 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 §§ 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 39-Con.
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 Part 39—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, insurance 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 corporations.

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
Alimony 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 Part 39—Con.
Computation of net income, 26 §§ 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 (h)-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 deficiency 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 §§ 39.23 (m)-1-39.23 (m)-28

Depreciation:

See also Depletion

Allowances for exhaustion, wear and tear, and obsolescence 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)