4393343-933. Alternative computation of short period income
A. If the taxpayer establishes the amount of his taxable income for the period of twelve months beginning with the first day of the short period, computed as if the twelve-month period were a taxable year, under the law applicable to that year, then the tax for the short period shall be reduced to an amount which is that part of the tax computed on the taxable income for the twelve-month period as the taxable income computed on the basis of the short period is of the taxable income for the twelve-month period.
B. If the taxpayer, other than a corporation, was not in existence at the end of the twelve-month period, then in lieu of the taxable income for the twelve-month period there shall be used for the purposes of subsection A the taxable income for the twelve-month period ending with the last day of the short period.
C. The tax computed under subsection A shall in no case be less than the tax computed on the taxable income for the short period without placing the taxable income on an annual basis. The benefits of subsection A shall not be allowed unless the taxpayer makes application therefor in accordance with and at such time as regulations prescribed for the filing of the return for the first taxable year which ends on or after twelve months after the beginning of the short period.
D. The application, in case the return was filed without regard to subsection A, shall be considered a claim for credit or refund with respect to the amount by which the tax is reduced under subsection A. The department shall prescribe such regulations as it may deem necessary. 43933