Rev. Rul. 65-93

Pending issuance of final regulations under sections 1561 through 1563 of the Internal Revenue Code of 1954, controlled groups of corporations may rely on the rules in the proposed regulations, published in the Federal Register for February 25, 1965, to:

(1) Elect multiple surtax exemptions under section 1562(a)(1) of the Code;

(2) Terminate a multiple surtax exemption election under section 1562(c) of the Code; or

(3) Apportion a single surtax exemption under section 1561(a)(2) of the Code.

If the final regulations contain additional requirements, they will also contain a provision recognizaing as valid these prior actions. Also, multiple surtax exemption elections and apportionment plans with respect to December 31, 1963, made in the manner and within the time prescribed in Temporary Regulations, Treasury Decision 6733, C.B. 1964-1 (Part 1), 635, approved May 11, 1964, are valid.

For purposes of returns filed before a multiple surtax exemption election is made or before a plan apportioning a single $25,000 surtax exemption is adopted (that is, before the required consents are filed), the surtax exemption will be determined under section 1561(a)(1) of the Code. This section relates to equal apportionment of a surtax exemption among the members of a controlled group. If a valid election is subsequently made, or a valid apportionment plan subsequently adopted, the return should be amended, or a claim for refund should be made, to reflect the election or plan, as the case may be.

¹ Based on Technical Information Release 700, dated Feb. 25, 1965.