# 26 U.S.C. § 4373: Exemptions

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s4373>. Cite pinpoints as 26 U.S.C. § 4373(a)(1).

The tax imposed by section 4371 shall not apply to—

## § 4373(1) Effectively connected items

Any amount which is effectively connected with the conduct of a trade or business within the United States unless such amount is exempt from the application of section 882(a) pursuant to a treaty obligation of the United States.

## § 4373(2) Indemnity bond

Any indemnity bond required to be filed by any person to secure payment of any pension, allowance, allotment, relief, or insurance by the United States, or to secure a duplicate for, or the payment of, any bond, note, certificate of indebtedness, war-saving certificate, warrant or check, issued by the United States.

## Leading cases

- [Validus Reinsurance v. United States, 786 F.3d 1039 (D.C. Cir. 2015)](https://www.courtlistener.com/opinion/2803245/validus-reinsurance-ltd-v-united-states/)
- [Medi-Trust Reinsurance v. United States, 37 Fed. Cl. 428 (Fed. Cl. 1997)](https://www.courtlistener.com/opinion/6763569/medi-trust-reinsurance-co-v-united-states/)

## Connections

Cites: § 882 Tax on income of foreign corporations connected with United States business; § 4371 Imposition of tax

Cited by: none

Derived from: 1939 § 1804; 1939 § 1808

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 522
- 1958-09-02: [Pub. L. 85-859](/26/act/85-859.md), 72 Stat. 1301
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1813
- 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3525