An Act to amend the Internal Revenue Code of 1939 with respect to the period of limitation for filing claims by certain transferees and fiduciaries for credit or refund of income taxes
PL 84-397 (H.R.5428), enacted 01/28/1956

70 
S T A T . ] 
PUBLIC LAW 397-JAN. 28, 1956 
of the Agricultural Act of 1049, as amended, is amended by adding 
at the end of such section the following: "For the purposes of this 
section, sales for export shall not only include sales made on condi-
tion that the identical commodities sold be exported, but shall also 
include sales made on condition that commodities of the same kind 
and of comparable value or quantity be exported, either in raw or 
processed form." 
Approved January 28, 1956. 
68 Stat. 583. 
7 u s e 142 7. 
Public Law 396 
CHAPTER 15 
AN ACT 
To amend the Internal Revenue Code of 1954 with respect to deductions from 
gross income of amounts contributed to employees trusts. 
January 28, 1956 
[H. R. 4582] 
Be it enacted hy the Senate and Flouse of Representatives 
of the 
United States of America in Congress assembled^ That a new para-
graph be added to section 381 (c) of the Internal Revenue Code of 
1954 to read as follows: 
"(20) 
CARRY-OVER OF UNUSED PENSION TRUST DEDUCTIONS IN 
CERTAIN CASES.—Notwithstanding the other provisions of this 
section, or section 394 (a), a corporation which has acquired the 
properties and assumed the liabilities of a wholly owned sub-
sidiary shall be considered to have succeeded to and to be entitled 
to take into account contributions of the subsidiary to a pension 
plan, and shall be considered to be the distributor or transferor 
corporation after the date of distribution or transfer (but not 
for taxable years with respect to which this paragraph does not 
apply) for the purpose of determining the amounts deductible 
under section 404 with respect to contributions to a pension 
plan if— 
"(A) the corporate laws of the State of incorporation of 
the subsidiary required the surviving corporation in the case 
of merger to be incorporated under the laws of the State of 
incorporation of the subsidiary; and 
"(B) the properties were acquired in a liquidation of the 
subsidiary in a transaction subject to section 112 (b) (6) 
of the Internal Revenue Code of 1939." 
SEC. 2. The amendments made by the first section of this Act shall 
apply with respect to taxable years beginning after December 31, 
1953, and ending after August 16, 1954. 
Approved January 28, 1956. 
Int e r nal Reve-
nue Code of 1954, 
amendment. 
68A Stat. 129. 
26 u s e 381. 
Effective date. 
Public Law 397 
CHAPTER 16 
AN ACT 
To amend the Internal Revenue Code of 1939 with respect to the period of 
limitation for filing claims by certain transferees and fiduciaries for credit or 
refund of income taxes. 
January 28, 1956 
[H. R. 5428] 
Be it enacted hy the Senate and House of Representatives 
of the 
United, States of America in Congress assembled. That section 311 (b) 
(4) of the Internal Revenue Code of 1939 is hereby amended by 
inserting " ( A ) " after "(4)" and by adding at the end thereof the 
following: 
"(B) For the purpose of determining the period of limitation 
on credit or refund to the transferee or fiduciary of— 
Int e r n a l Reve-
nue Code of 1939, 
amendment. 
53 Stat. 90. 
PUBLIC LAW 398-JAN. 28, 1966 
[70 ST A T . 
Effective date. 
"(i) overpayments of tax made by such transferee or 
fiduciary, or 
" (ii) overpayments of tax made by the transferor of which 
the transferee or fiduciary is legally entitled to credit or 
refund, 
the agreement referred to in subparagraph (A) and any extension 
thereof shall be deemed an agreement and extension thereof 
referred to in section 322 (b) (3). 
"(C) If the agreement referred to in subparagraph (A) is 
executed after the expiration of the period of limitation for assess-
ment against the taxpayer with reference to whom the liability of 
such transferee or fiduciary arises, then, in applying the limita-
tions under section 322 (b) (3) on the amount of the credit or 
refund, the periods specified in section 322 (b) (3) shall be 
increased by the period from the date of such expiration to the 
date of the agreement." 
SEC. 2. This Act shall be effective in all circumstances in which it 
would have been effective if it had been enacted on August 17,1954. 
Approved January 28, 1956. 
January 28, 1956 
[H. R. 7036] 
Public Law 398 
CHAPTER 17 
AN ACT 
To amend section 37 of the Internal Revenue Code of 1954 witli respect to the 
earned income limitation on retirement income. 
R e t i r e ment in-
come-tax c r e d i t . 
68A Stat. IS. 
26 u s e 37. 
Effective date. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 37 (d) 
(2) of the Internal Revenue Code of 1954 (relating to limitation on 
retirement income) is hereby amended to read as follows: 
" (2) in the case of any individual who has not attained the age 
of 72 before the close of the taxable year, any amount of earned 
income (as defined in subsection (g))— 
"(A) in excess of $900 received by the individual in the 
taxable year if such individual has not attained the age of 
65 before the close of the taxable year, or 
"(B) in excess of $1,200 received by the individual in 
the taxable year if such individual has attained the age of 
65 before the close of the taxable year." 
SEC. 2. The amendment made by the first section of tliis Act shall 
apply only with respect to taxable years beginning after December 31, 
1955. 
Approved January 28, 1956. 
January 28, 1956 
[H. R. 7282] 
Public Law 399 
CHAPTER 18 
AN ACT 
Relating to the allowance of the credits for dividends received, for dividends 
paid, and for a Western Hemisphere trade corporation in computing the 
alternative tax of a corporation with respect to its capital gains. 
65 Stat. 470. 
Be it enacted &y the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 117 
(c) (1) (A) of the Internal Revenue Code of 1939 is hereby amended 
by inserting after the word "reduced" the following: "(except for 
the purposes of determining the credits allowable under subsections 
(b), (h), and (i) of section 26)".