# 26 U.S.C. § 482: Allocation of income and deductions among taxpayers Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 482(a)(1). In any case of two or more organizations, trades, or businesses (whether or not incorporated, whether or not organized in the United States, and whether or not affiliated) owned or controlled directly or indirectly by the same interests, the Secretary may distribute, apportion, or allocate gross income, deductions, credits, or allowances between or among such organizations, trades, or businesses, if he determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades, or businesses. In the case of any transfer (or license) of intangible property (within the meaning of section 367(d)(4)), the income with respect to such transfer or license shall be commensurate with the income attributable to the intangible. For purposes of this section, the Secretary shall require the valuation of transfers of intangible property (including intangible property transferred with other property or services) on an aggregate basis or the valuation of such a transfer on the basis of the realistic alternatives to such a transfer, if the Secretary determines that such basis is the most reliable means of valuation of such transfers. ## Regulations - [Treas. Reg. § 1.482-0](/26/reg/1.482-0.md): Outline of regulations under section 482. (interprets § 482) - [Treas. Reg. § 1.482-1](/26/reg/1.482-1.md): Allocation of income and deductions among taxpayers. (interprets § 482) - [Treas. Reg. § 1.482-1T](/26/reg/1.482-1T.md): Allocation of income and deductions among taxpayers (temporary). (interprets § 482) - [Treas. Reg. § 1.482-2](/26/reg/1.482-2.md): Determination of taxable income in specific situations. (interprets § 482) - [Treas. Reg. § 1.482-3](/26/reg/1.482-3.md): Methods to determine taxable income in connection with a transfer of tangible property. (interprets § 482) - [Treas. Reg. § 1.482-4](/26/reg/1.482-4.md): Methods to determine taxable income in connection with a transfer of intangible property. (interprets § 482) - [Treas. Reg. § 1.482-5](/26/reg/1.482-5.md): Comparable profits method. (interprets § 482) - [Treas. Reg. § 1.482-6](/26/reg/1.482-6.md): Profit split method. (interprets § 482) - [Treas. Reg. § 1.482-7](/26/reg/1.482-7.md): Methods to determine taxable income in connection with a cost sharing arrangement. (interprets § 482) - [Treas. Reg. § 1.482-8](/26/reg/1.482-8.md): Examples of the best method rule. (interprets § 482) - [Treas. Reg. § 1.482-9](/26/reg/1.482-9.md): Methods to determine taxable income in connection with a controlled services transaction. (interprets § 482) - [Treas. Reg. § 1.482-1A](/26/reg/1.482-1A.md): Allocation of income and deductions among taxpayers. (interprets § 482) - [Treas. Reg. § 1.482-2A](/26/reg/1.482-2A.md): Determination of taxable income in specific situations. (interprets § 482) - [Treas. Reg. § 1.482-7A](/26/reg/1.482-7A.md): Methods to determine taxable income in connection with a cost sharing arrangement. (interprets § 482) ## Forms named in the regulations - [Form 5471](https://www.irs.gov/pub/irs-pdf/f5471.pdf) - [Form 1120](https://www.irs.gov/pub/irs-pdf/f1120.pdf) - [Form 5472](https://www.irs.gov/pub/irs-pdf/f5472.pdf) - [Form 8865](https://www.irs.gov/pub/irs-pdf/f8865.pdf) ## Final rules - [80 FR 55538](https://www.federalregister.gov/documents/2015/09/16/2015-23278/clarification-of-the-coordination-of-the-transfer-pricing-rules-with-other-code-provisions) (2015): Clarification of the Coordination of the Transfer Pricing Rules With Other Code Provisions - [78 FR 52854](https://www.federalregister.gov/documents/2013/08/27/2013-20786/use-of-differential-income-stream-as-an-application-of-the-income-method-and-as-a-consideration-in) (2013): Use of Differential Income Stream as an Application of the Income Method and as a Consideration in Assessing the Best Method - [78 FR 18234](https://www.federalregister.gov/documents/2013/03/26/2013-07103/section-482-methods-to-determine-taxable-income-in-connection-with-a-cost-sharing-arrangement) (2013): Section 482: Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement - [76 FR 80249](https://www.federalregister.gov/documents/2011/12/23/2011-32728/use-of-differential-income-stream-as-a-consideration-in-assessing-the-best-method) (2011): Use of Differential Income Stream as a Consideration in Assessing the Best Method - [76 FR 80082](https://www.federalregister.gov/documents/2011/12/22/2011-32458/section-482-methods-to-determine-taxable-income-in-connection-with-a-cost-sharing-arrangement) (2011): Section 482: Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement - [74 FR 38830](https://www.federalregister.gov/documents/2009/08/04/E9-18326/treatment-of-services-under-section-482-allocation-of-income-and-deductions-from-intangible-property) (2009): Treatment of Services Under Section 482; Allocation of Income and Deductions From Intangible Property; Stewardship Expense - [74 FR 8863](https://www.federalregister.gov/documents/2009/02/27/Z8-30715/section-482-methods-to-determine-taxable-income-in-connection-with-a-cost-sharing-arrangement) (2009): Section 482: Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement - [74 FR 340](https://www.federalregister.gov/documents/2009/01/05/E8-30715/section-482-methods-to-determine-taxable-income-in-connection-with-a-cost-sharing-arrangement) (2009): Section 482: Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement - [71 FR 44466](https://www.federalregister.gov/documents/2006/08/04/06-6497/treatment-of-services-under-section-482-allocation-of-income-and-deductions-from-intangibles) (2006): Treatment of Services Under Section 482; Allocation of Income and Deductions From Intangibles; Stewardship Expense - [68 FR 51171](https://www.federalregister.gov/documents/2003/08/26/03-21355/compensatory-stock-options-under-section-482) (2003): Compensatory Stock Options Under Section 482 - [66 FR 280](https://www.federalregister.gov/documents/2001/01/03/00-33170/credit-for-increasing-research-activities) (2001): Credit for Increasing Research Activities - [61 FR 21955](https://www.federalregister.gov/documents/1996/05/13/96-11781/revision-of-section-482-cost-sharing-regulations) (1996): Revision of Section 482 Cost Sharing Regulations - [FR Doc. 94-16456](https://www.federalregister.gov/documents/1994/07/08/94-16456/intercompany-transfer-pricing-regulations-under-section-482) (1994): Intercompany Transfer Pricing Regulations Under Section 482 ## Leading cases - [Commissioner v. First Security Bank of Utah, 405 U.S. 394 (1972)](https://www.courtlistener.com/opinion/108487/commissioner-v-first-security-bank-of-utah-n-a/) - [Peck v. Commissioner, 904 F.2d 525 (9th Cir. 1990)](https://www.courtlistener.com/opinion/542382/donald-a-peck-judith-w-peck-v-commissioner-of-internal-revenue/) - [Eli Lilly & Co. v. Commissioner, 856 F.2d 855 (7th Cir. 1988)](https://www.courtlistener.com/opinion/511638/eli-lilly-company-and-subsidiaries-cross-appellees-v-commissioner-of/) ## Proposed regulations (not in force) - [Prop. Treas. Reg. § 1.482-0](/26/prop/1.482-0_98-5674.md): (REG-208299-90, proposed 1998-03-06) - [Prop. Treas. Reg. § 1.482-8](/26/prop/1.482-8_98-5674.md): [Redesignated as Sec. 1.482-9] (REG-208299-90, proposed 1998-03-06) - [Prop. Treas. Reg. § 1.482-1](/26/prop/1.482-1_98-5674.md): (REG-208299-90, proposed 1998-03-06) - [Prop. Treas. Reg. § 1.482-2](/26/prop/1.482-2_98-5674.md): (REG-208299-90, proposed 1998-03-06) - [Prop. Treas. Reg. § 1.482-0](/26/prop/1.482-0_02-19126.md): Outline of regulations under section 482. (REG-106359-02, proposed 2002-07-29) - [Prop. Treas. Reg. § 1.482-1](/26/prop/1.482-1_2015-23279.md): Allocation of income and deductions among taxpayers. (REG-139483-13, proposed 2015-09-16) ## Connections Cites: § 367 Foreign corporations Cited by: § 51 Amount of credit; § 59A Tax on base erosion payments of taxpayers with substantial gross receipts; § 512 Unrelated business taxable income; § 845 Certain reinsurance agreements; § 857 Taxation of real estate investment trusts and their beneficiaries; § 901 Taxes of foreign countries and of possessions of United States; § 994 Inter-company pricing rules; § 1059A Limitation on taxpayer’s basis or inventory cost in property imported from related persons; § 1505 Cross references; § 6038A Information with respect to certain foreign-owned corporations; § 6038B Notice of certain transfers to foreign persons; § 6662 Imposition of accuracy-related penalty on underpayments; § 7874 Rules relating to expatriated entities and their foreign parents Derived from: 1939 § 45 ## Amendments - 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 162 - 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834 - 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2562 - 2017-12-22: [Pub. L. 115-97](/26/act/115-97.md), 131 Stat. 2219 - 2018-03-23: [Pub. L. 115-141](/26/act/115-141.md), 132 Stat. 1207