52 STAT.] 75TH CONG., 3D SESS. -CH. 289-MAY 28, 1938 section (a), or the credit or refund under subsection (b), or both, are allowed) shall be subtracted from the basic surtax credit for such year, but only for the purpose of computing the tax under this title for such year and succeed- ing years. (B) FOR PRIOR TAXABLE YEAR. -Deficiency dividends paid in any taxable year (to the extent of the portion thereof with respect to which the credit under subsection (a), or the credit or refund under subsection (b), or both, are allowed) shall not be allowed under section 405 (c) in the computa- tion of the tax under this title for any taxable year preced- ing the taxable year in which paid. (d) CLAIM REQUIRED.- No deficiency dividends credits shall be allowed under subsection (a) and no credit or refund shall be made under subsection (b) unless (under regulations prescribed by the Commissioner with the approval of the Secretary) claim therefor is filed within sixty days after the date of the closing agreement, or the date upon which the decision of the Board or judgment becomes final, as the case may be. (e) SUSPENSION OF STATUTE OF LIMITATIONS AND STAY OF COLLECTION.- (1) SUSPENSION OF RUNNING OF STATUTE.- If the corporation files a notification, as provided in subsection (c), to have divi- dends considered as deficiency dividends, the running of the stat- ute of limitations provided in section 275 or 276 on the making of assessments and the bringing of distraint or a proceeding in court for collection, in respect of the deficiency and all interest, additional amounts, and additions to the tax provided by law, shall be suspended for a period of two years after the date of the filing of such notification. (2) STAY OF COLLECTION.-In the case of any deficiency with respect to the tax imposed by this title established as provided in subsection (a)- (A) The collection of the deficiency and all interest, additional amounts, and additions to the tax provided for by law shall, except in cases of jeopardy, be stayed until the expiration of thirty days after the date of the closing agreement, or the date upon which the decision of the Board or judgment becomes final, as the case may be. (B) If notification has been filed, as provided in subsec- tion (c), the collection of such part of the deficiency as is not in excess of either the credit allowable under subsec- tion (a) or the amount which, in the notification, is speci- fied as intended to be claimed as credit, shall, except in cases of jeopardy, be stayed until the expiration of sixty days after the date of the closing agreement, or the date upon which the decision of the Board or judgment becomes final, as the case may be. (C) If claim for deficiency dividend credit is filed under subsection (d), the collection of such part of the deficiency as is not in excess of either the credit allowable under subsection (a) or the amount claimed, shall be stayed until the date the claim for credit is disallowed (in whole or in part), and if disallowed in part collection shall be made only of the part disallowed. No distraint or proceeding in court shall be begun for the collection of an amount the collection of which is stayed under subparagraph (A), (B), or (C) during the period for which the collection of such amount is stayed. 563 For prior taxable year. Ante, p. SW . Claim required. Suspension of run- ning of statute of limi- tations. Ante, pp. 539, 50. Stay of collection.
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