STANDARD DEDUCTION.

SEC. 308. STANDARD DEDUCTION. (a) Method of Election.—Subparagraphs (A) and (B) of section 23 (aa) (3) (relating to optional standard deduction for individuals) are hereby amended by striking out the word “only”; and subparagraph (C) of section 23 (aa) (3) is hereby amended to read as follows: “(C) If the taxpayer upon making his return fails to signify, in the manner provided by subparagraph (A) or (B). his election to take the standard deduction, such failure shall be considered his election not to take the standard deduction.” (b) Change of Election.—Section 23 (aa) is hereby amended by adding at the end thereof the following new paragraph: “(7) Change of election.— Under regulations prescribed by the Secretary, a change of an election to take, or not to take, the 65 Stat. 486 standard deduction for any taxable year may be made after the filing of the return for such year. If the spouse of the taxpayer filed a separate return for any taxable year corresponding, for the purposes of paragraph (4), to the taxable year of the taxpayer, the change shall not be allowed unless, in accordance with such regulations— “(A) the spouse makes a change of election with respect to the standard deduction for the taxable year covered in such separate return, consistent with the change of election sought by the taxpayer, and “(B) the taxpayer and his spouse consent in writing to the assessment, within such period as may be agreed upon with the Secretary, of any deficiency, to the extent attributable to such change of election, even though at the time of the filing of such consent the assessment of such deficiency would otherwise be prevented by the operation of any law or rule of law. This paragraph shall not apply if the tax liability of the taxpayer’s spouse, for the taxable year corresponding (for the purposes of paragraph (4)) to the taxable year of the taxpayer, has been compromised under the provisions of section 3761.” (c) Effective Date.—The amendments made by this section shall be applicable only with respect to taxable years beginning after December 31, 1949.