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301.9100-15T Election to use retroactive effective date.
(a) Scope. The regulations prescribed in this section provide rules for making the election to use a retroactive effective date under section 7(f) of the Bankruptcy Tax Act of 1980.
(b) Availability of election. The election is available to the debtor (or debtors) in a case under title 11 of the United States Code (or a receivership, foreclosure, or similar proceeding in a Federal or State court) that commences after September 30, 1979, and before January 1, 1981. The court must approve the election. For purposes of this paragraph (b), a receivership, foreclosure, or similar proceeding before a Federal or State agency involving a financial institution to which section 585 or 593 applies shall be treated as a proceeding before a court.
(c) Effect of election—(1) In general. An election under this section changes the effective date of certain amendments to the Code made by the Bankruptcy Tax Act of 1980. The amendments affected by an election under this section are listed in paragraph (c) (2) and (3) of this section. If the election is made, all of the amendments listed in paragraph (c) (2) and (3) of this section apply to all transactions in the case (or similar proceeding) and to all parties in respect of all transactions in the case (or similar proceeding). Thus, the debtor may not elect to have only certain of the amendments apply to transactions in the case (or similar proceeding) and may not elect to have the amendments apply only to certain transactions in the case (or similar proceeding). An election under this section will not make the amendments listed in paragraph (c) (2) and (3) applicable to transactions occurring prior to commencement of the case (or similar proceeding) or transactions not in the case (or similar proceeding).
(2) Amendments affected. An election under this section changes the effective date of the amendments to the following sections:
(i) 111, relating to recovery of bad debts, prior taxes, and delinquency amounts,
(ii) 302, relating to the repeal of special treatment for certain railroad redemptions,
(iii) 312, relating to the effect of debt discharge on earnings and profits,
(iv) 337, relating to the application of the 12-month liquidation rule,
(v) 351, relating to certain transfers to controlled corporations,
(vi) 354 (other than the amendment made by section 6(i)(2) of the Bankruptcy Tax Act of 1980), 355, 357, 368, and 381, relating to corporate reorganizations,
(vii) 382, relating to special limitations on net operating loss carryover,
(viii) 542, relating to the personal holding company tax, and
(ix) 703, relating to elections of partnerships.
(3) Other amendments affected in part. Subject to the transitional rule of section 7(a)(2) of the Bankruptcy Tax Act of 1980, an election under this section changes the effective date of the amendments to sections 108 and 1017, relating to the tax treatment of discharge of indebtedness.
(4) Substitution of effective dates. The election under this section changes the effective date of the amendments listed in paragraph (c) (2) and (3) of this section by substituting “September 30, 1979” for “December 31 1980” wherever it appears in section 7(a), (c), and (d) of the Bankruptcy Tax Act of 1980.
(d) Time and manner—(1) Time and place. A debtor makes the election under this section by filing the written statement and evidence of court approval required under paragraph (d) (2) and (3) of this section on or before November 2, 1981, with the District Director or the Director of the Internal Revenue Service Center with whom an income tax return for the debtor would be filed if it were due on the date the election is filed. The election shall be considered to be made on the date on which the written statement and evidence of court approval is filed. The debtor should attach a copy of the statement and evidence of court approval to the next income tax return filed on or after the date the election is made.
(2) Statement. The written statement must be signed by the debtor (or a person duly authorized to sign the income tax return of the debtor) and must contain the following:
(i) The name, address, and taxpayer identification number of the debtor,
(ii) A statement that the debtor is making the election under section 7(f) of the Bankruptcy Tax Act of 1980, and
(iii) Information (including the date of commencement) sufficient to identify the bankruptcy case or similar proceeding.
(3) Evidence of court approval. The evidence of court approval (or of approval of an agency in certain proceedings described in paragraph (b) of this section) must be a copy of an order or other document properly signed by the judge or other presiding officer. In addition to information identifying the debtor and the case or proceeding over which the officer presides, the order or other document must state that the court (or agency, as the case may be) approves the election of the debtor under section 7(f) of the Bankruptcy Tax Act of 1980.
(e) Revocability. An election under this section may be revoked only with the consent of the Commissioner. A request for revocation can be made only with approval of the court (or agency).
[T.D. 7775, 46 FR 25292, May 6, 1981. Redesignated by T.D. 8435, 57 FR 43896, Sept. 23, 1992]