SALES OF INSTALLMENT ACCOUNTS BY RETAILERS.

SEC. 104. SALES OF INSTALLMENT ACCOUNTS BY RETAILERS.Section 4053 (computation of tax on installment sales, etc.) is amended— (1) by striking out “In the case of—” and inserting in lieu thereof the following: “(a) General Rule.—In the case of—and (2) by adding at the end thereof the following new subsections: “(b) Sales of Installment Accounts.—If installment accounts, with respect to payments on which tax is being computed as provided in subsection (a), are sold or otherwise disposed of, then subsection (a) shall not apply with respect to any subsequent payments on such accounts (other than subsequent payments on returned accounts with 72 Stat. 1277 respect to which credit or refund is allowable by reason of section 6416 (b) (5)), but instead there shall be paid— “(1) an amount equal to the difference between (A) the tax previously paid on the payments on such installment accounts, and (B) the total tax; except that “(2) if any such sale is pursuant to the order of, or subject to the approval of, a court of competent jurisdiction in a bankruptcy or insolvency proceeding, the amount computed under paragraph (1) shall not exceed the amount computed by multiplying (A) the amount for which such accounts are sold, by (B) the rate of tax under this chapter which applied on the day on which the transaction giving rise to such installment accounts took place. “(c) Limitation.—The sum of the amounts payable under this section in respect to the sale of any article shall not exceed the total tax.”