Rev. Rul. 54-365

Inquiries have been received as to whether the enactment of the Internal Revenue Code of 1954, Public Law 591, Eighty-third Congress, approved August 16, 1954, will permit affiliated corporations a new election to file separate returns in lieu of consolidated returns and as to the year for which such new elections will be available.

The scope of the new Code and the nature of its provisions are deemed to be such that in the interests of sound tax administration the position of the Treasury Department in regard to these matters should be made known to the public as soon as possible.

The Secretary of the Treasury has authorized a new election to file separate returns for the first taxable year for which returns are due to be filed after the date of enactment of the new Code, and for the first taxable year ending after the date of such enactment. In this regard returns due to be filed after the date of enactment of the new Code (including any extensions of time granted by the Commissioner) will be considered as filed and the election exercised on such due date regardless of the actual previous date of filing.

Revised original returns may be filed on or before the last day prescribed by law for filing a return, including the last day of the period of any extension of time. The last return (original or revised) filed before the expiration of such extension will be considered the return filed on such date.

The foregoing does not affect any election available under Revenue Ruling 152, C.B. 1953-2, 184.