[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1562-4]

[Page 33]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
RELATED RULES--Table of Contents
 
Sec. 1.1562-4  Election after termination.

    (a) In general. Under section 1562(d), if a controlled group of 
corporations has made a valid election under section 1562(a)(1), and 
such election is terminated by any one of the occurrences described in 
paragraph (b) of Sec. 1.1562-2, then such group (or any controlled group 
which is a successor to such group within the meaning of paragraph (c) 
of Sec. 1.1562-5) is not eligible to make an election under section 
1562(a)(1) with respect to any December 31 before the sixth December 31 
after the particular December 31 with respect to which such termination 
was effective. For the particular December 31 with respect to which a 
termination is effective, see paragraph (c) of Sec. 1.1562-2.
    (b) Example. The provisions of this section may be illustrated by 
the following example:

    Example. In 1965, a controlled group of corporations makes a valid 
election under section 1562(a)(1) with respect to December 31, 1964. In 
1967, the election is terminated with respect to December 31, 1964, by 
consent pursuant to paragraph (b)(1) of Sec. 1.1562-2. The group (or any 
successor group) is not eligible to make another election with respect 
to any December 31 before December 31, 1970 (i.e., the sixth December 31 
after December 31, 1964, the particular December 31 with respect to 
which such termination was effective). If in this example the election 
had been terminated with respect to December 31, 1965, instead of 
December 31, 1964, the group (or any successor group) would not be 
eligible to make another election with respect to any December 31 before 
December 31, 1971.

[T.D. 6845, 30 FR 9747, Aug. 5, 1965]