# Pub. L. 100-203: changes to the Internal Revenue Code 1987-12-22, 101 Stat. 1330. Source: . ## Legislative history - Bill: [H.R. 3545](https://www.congress.gov/bill/100th-congress/house-bill/3545) ## § 11: Tax imposed - § 11(b): Pub. L. 100–203 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The amount of the tax imposed by subsection (a) shall be the sum of— ## § 21: Expenses for household and dependent care services necessary for gainful employment - § 21(b)(2)(A): Pub. L. 100–203 inserted at end “Such term shall not include any amount paid for services outside the taxpayer’s household at a camp where the qualifying individual stays overnight.” ## § 40: Alcohol, etc., used as fuel - § 40(c): Pub. L. 100–203 substituted “, section 4081(c), or section 4091(c)” for “or section 4081(c)”. ## § 51: Amount of credit - § 51(c)(3), § 51(c)(4): Pub. L. 100–203 added par. (3) and redesignated former par. (3) as (4). ## § 56: Adjustments in computing alternative minimum taxable income - § 56(a)(6): Pub. L. 100–203, § 10202(d), amended par. (6) generally. Prior to amendment, par. (6) read as follows: “In the case of any— - § 56: Pub. L. 100–203, § 10243(a), added subpar. (H) and redesignated former subpar. (H) as (I). ## § 58: Denial of certain losses - § 58(b): Pub. L. 100–203 substituted “section 469(m)” for “section 469(l)”. ## § 90: Illegal Federal irrigation subsidies - Enacted 26 U.S.C. § 90. ## § 141: Private activity bond; qualified bond - § 141(d), § 141(e): Pub. L. 100–203 added subsec. (d) and redesignated former subsec. (d) as (e). ## § 146: Volume cap - § 146(f)(5)(A): Pub. L. 100–203 amended subpar. (A) generally, as amended by Pub. L. 100–647, § 1013(a)(9), restating it without change. See 1988 Amendment note above. ## § 163: Interest - § 163(d)(4): Pub. L. 100–203, § 10212(b), substituted “section 469(m)” for “section 469(l)”. - § 163(h)(3): Pub. L. 100–203, § 10102(a), amended par. (3) generally. Prior to amendment (see 1988 Amendment note above), par. (3) read as follows: “For purposes of this subsection— - § 163(h)(4), § 163(h)(5): Pub. L. 100–203, § 10102(b), redesignated par. (5) as (4) and struck out former par. (4) which defined “qualified indebtedness” for purposes of this subsection. ## § 170: Charitable, etc., contributions and gifts - § 170(c)(2)(D): Pub. L. 100–203 inserted “(or in opposition to)” after “on behalf of”. ## § 243: Dividends received by corporations - § 243(a)(1): Pub. L. 100–203, § 10221(a)(1), substituted “70 percent” for “80 percent”. - § 243(c), § 243(d), § 243(e): Pub. L. 100–203, § 10221(b), added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively. ## § 245: Dividends received from certain foreign corporations - § 245(c)(1)(B): Pub. L. 100–203 substituted “70 percent (80 percent in the case of dividends from a 20-percent owned corporation as defined in section 243(c)(2))” for “85 percent”. ## § 246: Rules applying to deductions for dividends received - § 246(b)(1): Pub. L. 100–203, § 10221(c)(1)(A), substituted “the percentage determined under paragraph (3)” for “80 percent”. - § 246(b)(3): Pub. L. 100–203, § 10221(c)(1)(B), added par. (3). ## § 246A: Dividends received deduction reduced where portfolio stock is debt financed - § 246A(a)(1): Pub. L. 100–203 substituted “70 percent (80 percent in the case of any dividend from a 20-percent owned corporation as defined in section 243(c)(2))” for “80 percent”. ## § 275: Certain taxes - § 275(a)(6): Pub. L. 100–203 substituted “46, and 54” for “and 46”. ## § 280H: Limitation on certain amounts paid to employee-owners by personal service corporations electing alternative taxable years - Enacted 26 U.S.C. § 280H. ## § 301: Distributions of property - § 301(f)(1): Pub. L. 100–203 substituted “subsections (k) and (n)” for “subsection (n)”. ## § 304: Redemption through use of related corporations - § 304(b)(4): Pub. L. 100–203 added par. (4). ## § 337: Nonrecognition for property distributed to parent in complete liquidation of subsidiary - § 337(c): Pub. L. 100–203 inserted at end “For purposes of this section, the determination of whether any corporation is an 80-percent distributee shall be made without regard to any consolidated return regulation.” ## § 355: Distribution of stock and securities of a controlled corporation - § 355(b)(2)(D): Pub. L. 100–203, § 10223(b)(3), inserted at end “For purposes of subparagraph (D), all distributee corporations which are members of the same affiliated group (as defined in section 1504(a) without regard to section 1504(b)) shall be treated as 1 distributee corporation.” - § 355(b)(2)(D)(i): Pub. L. 100–203, § 10223(b)(1), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “was not acquired directly (or through one or more corporations) by another corporation within the period described in subparagraph (B), or”. - § 355(b)(2)(D)(ii): Pub. L. 100–203, § 10223(b)(2), substituted “such distributee corporation” for “by another corporation”. ## § 381: Carryovers in certain corporate acquisitions - § 381(c)(8): Pub. L. 100–203 struck out “or 453A” after “section 453” in two places. ## § 382: Limitation on net operating loss carryforwards and certain built-in losses following ownership change - § 382(g)(4)(D): Pub. L. 100–203, § 10225(a), added subpar. (D). - § 382(h)(2)(B): Pub. L. 100–203, § 10225(b), inserted at end “Such term includes any amount allowable as depreciation, amortization, or depletion for any period within the recognition period except to the extent the new loss corporation establishes that the amount so allowable is not attributable to the excess described in clause (ii).” ## § 384: Limitation on use of preacquisition losses to offset built-in gains - Enacted 26 U.S.C. § 384. ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(a)(29): Pub. L. 100–203 added par. (29). ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(a)(1)(A)(iii): Pub. L. 100–203, § 9307(d), inserted “the unfunded costs attributable to” after “to amortize”. - § 404(a)(1)(D), § 404(a)(1)(E): Pub. L. 100–203, § 9307(c), added subpar. (D) and redesignated former subpar. (D) as (E). - § 404(a)(5): Pub. L. 100–203, § 10201(b)(3), inserted at end “For purposes of this section, any vacation pay which is treated as deferred compensation shall be deductible for the taxable year of the employer in which paid to the employee.” - § 404(b)(2)(B): Pub. L. 100–203, § 10201(b)(2), substituted “Exception” for “Exception for certain benefits” in heading and amended text generally. Prior to amendment, text read as follows: “Subparagraph (A) shall not apply to— ## § 411: Minimum vesting standards - § 411(c)(2)(C)(iii): Pub. L. 100–203, § 9346(b)(1), substituted “120 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of a plan year)” for “5 percent per annum”. - § 411(c)(2)(D): Pub. L. 100–203, § 9346(b)(2), struck out “, the rate of interest described in clause (iii) of subparagraph (C), or both” before “from time to time” in first sentence and struck out second sentence which read as follows: “The rate of interest described in clause (iii) of subparagraph (C), or both, from time to time as he may deem necessary. The rate of interest shall bear the relationship to 5 percent which the Secretary determines to be comparable to the relationship which the long-term money rates and investment yields for the last period of 10 calendar years ending at least 12 months before the beginning of the plan year bear to the long-term money rates and investment yields for the 10-calendar year period 1964 through 1973.” ## § 412: Minimum funding standards - § 412(b)(2): Pub. L. 100–203, § 9303(a)(2), inserted at end “For additional requirements in the case of plans other than multiemployer plans, see subsection (l).” - § 412(b)(2): Pub. L. 100–203, § 9307(a)(1)(A), substituted “5 plan years (15 plan years in the case of a multiemployer plan)” for “15 plan years”. - § 412(b)(2): Pub. L. 100–203, § 9307(a)(1)(B), substituted “10 plan years (30 plan years in the case of a multiemployer plan)” for “30 plan years”. - § 412(b)(2), § 412(b)(3): Pub. L. 100–203, § 9307(a)(1)(A), substituted “5 plan years (15 plan years in the case of a multiemployer plan)” for “15 plan years”. - § 412(b)(3): Pub. L. 100–203, § 9307(a)(1)(B), substituted “10 plan years (30 plan years in the case of a multiemployer plan)” for “30 plan years”. - § 412(b): Pub. L. 100–203, § 9307(e)(1), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “The funding standard account (and items therein) shall be charged or credited (as determined under regulations prescribed by the Secretary) with interest at the appropriate rate consistent with the rate or rates of interest used under the plan to determine costs.” - § 412(c)(2)(B): Pub. L. 100–203, § 9303(d)(1), inserted at end “In the case of a plan other than a multiemployer plan, this subparagraph shall not apply, but the Secretary may by regulations provide that the value of any dedicated bond portfolio of such plan shall be determined by using the interest rate under subsection (b)(5).” - § 412(c)(3): Pub. L. 100–203, § 9307(b)(1), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For purposes of this section, all costs, liabilities, rates of interest, and other factors under the plan shall be determined on the basis of actuarial assumptions and methods which, in the aggregate, are reasonable (taking into account the experience of the plan and reasonable expectations) and which, in combination, offer the actuary’s best estimate of anticipated experience under the plan.” - § 412(c)(7): Pub. L. 100–203, § 9301(a), substituted “Full-funding” for “Full funding” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of paragraph (6), the term full funding limitation means the excess (if any) of— - § 412(c): Pub. L. 100–203, § 9304(a)(1), amended par. (10) generally. Prior to amendment, par. (10) read as follows: “For purposes of this section, any contributions for a plan year made by an employer after the last day of such plan year, but not later than two and one-half months after such day, shall be deemed to have been made on such last day. For purposes of this paragraph, such two and one-half month period may be extended for not more than six months under regulations prescribed by the Secretary.” - § 412(c): Pub. L. 100–203, § 9305(b)(1), added par. (11). - § 412(d)(1): Pub. L. 100–203, § 9306(a)(1)(B), struck out “substantial” after “in case of” in heading, and substituted “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)” for “substantial business hardship” in text. - § 412(d)(1): Pub. L. 100–203, § 9306(b)(1), substituted “more than 3 of any 15 (5 of any 15 in the case of a multiemployer plan)” for “more than 5 of any 15”. - § 412(d)(1): Pub. L. 100–203, § 9306(c)(1)(A), substituted “The interest rate used for purposes of computing the amortization charge described in subsection (b)(2)(C) for any plan year shall be—” and subpars. (A) and (B) for “The interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection shall be the rate determined under section 6621(b).” - § 412(d)(2): Pub. L. 100–203, § 9306(a)(1)(B), struck out “substantial” after “Determination of” in heading, and substituted “temporary substantial business hardship (substantial business hardship in the case of a multiemployer plan)” for “substantial business hardship” in introductory provisions. - § 412(d): Pub. L. 100–203, § 9306(a)(1)(A), added par. (4). - § 412(d): Pub. L. 100–203, § 9306(a)(1)(C), added par. (5). - § 412(e): Pub. L. 100–203, § 9306(c)(1)(B), substituted last two sentences for “The interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the rate determined under section 6621(b).” - § 412: Pub. L. 100–203, § 9306(e)(1), substituted “$1,000,000” for “$2,000,000” at end. - § 412: Pub. L. 100–203, § 9306(d)(1), substituted “plan, and each participant, beneficiary, and alternate payee (within the meaning of section 414(p)(8)). Such notice shall include a description of the extent to which the plan is funded for benefits which are guaranteed under title IV of such Act and the benefit liabilities.” for “plan.” - § 412: Pub. L. 100–203, § 9303(a)(1), added subsec. (l). - § 412: Pub. L. 100–203, § 9304(b)(1), added subsec. (m). - § 412: Pub. L. 100–203, § 9304(e)(1), added subsec. (n). ## § 414: Definitions and special rules - § 414(b): Pub. L. 100–203 struck out “the minimum funding standard of section 412, the tax imposed by section 4971, and” after “one such corporation,”. ## § 419: Treatment of funded welfare benefit plans - § 419(e)(2): Pub. L. 100–203 struck out subpar. (D) which related to a benefit with respect to which an election under section 463 applies. ## § 444: Election of taxable year other than required taxable year - Enacted 26 U.S.C. § 444. ## § 447: Method of accounting for corporations engaged in farming - § 447(c): Pub. L. 100–203, § 10205(a), added subsec. (c), substituting “certain corporations” for “small business and family corporations” in heading and striking out former text which read as follows: “For purposes of subsection (a), a corporation shall be treated as not being a corporation if it is— - § 447(d): Pub. L. 100–203, § 10205(a), added subsec. (d). Former subsec. (d) redesignated (e). - § 447(e): Pub. L. 100–203, § 10205(c)(1), substituted “subsection (d)” for “subsection (c)(2)”. - § 447(e): Pub. L. 100–203, § 10205(a), redesignated former subsec. (d) as (e) and struck out former subsec. (e), “Corporation having gross receipts of $1,000,000 or less”, which read as follows: “A corporation meets the requirements of this subsection if, for each prior taxable year beginning after December 31, 1975, such corporation (and any predecessor corporation) did not have gross receipts exceeding $1,000,000. For purposes of the preceding sentence, all corporations which are members of a controlled group of corporations (within the meaning of section 1563(a)) shall be treated as one corporation.” - § 447: Pub. L. 100–203, § 10205(c)(2)(A), substituted “A corporation is described in this subsection” for “This section shall not apply to any corporation”. - § 447: Pub. L. 100–203, § 10205(c)(2)(B), (C), substituted “subsection (e)” for “subsection (d)” and “subsection (e)(1)” for “subsection (d)(1)” wherever appearing. - § 447: Pub. L. 100–203, § 10205(b), added subsec. (i). ## § 453: Installment method - § 453(b)(2)(A): Pub. L. 100–203, § 10202(b)(1), substituted “Dealer dispositions” for “Dealer disposition of personal property” in heading and amended text generally. Prior to amendment, text read as follows: “A disposition of personal property on the installment plan by a person who regularly sells or otherwise disposes of personal property on the installment plan.” - § 453(l): Pub. L. 100–203, § 10202(b)(2), added subsec. (l). ## § 453A: Special rules for nondealers - § 453A: Pub. L. 100–203 substituted “Special rules for nondealers of real property” for “Installment method for dealers in personal property” in section catchline and amended text generally, revising and restating as subsecs. (a) to (d) provisions of former subsecs. (a) to (c). ## § 460: Special rules for long-term contracts - § 460(a): Pub. L. 100–203 substituted “70 percent” for “40 percent” in par. (1)(A) and in heading and text of par. (2), and “30 percent” for “60 percent” in par. (1)(B). ## § 461: General rule for taxable year of deduction - § 461(h)(5): Pub. L. 100–203 substituted “items” for “cases to which other provisions of this title specifically apply” in heading and amended text generally. Prior to amendment, text read as follows: “This subsection shall not apply to any item to which any of the following provisions apply: ## § 469: Passive activity losses and credits limited - § 469(k), § 469(l), § 469: Pub. L. 100–203 added subsec. (k) and redesignated former subsecs. (k) and (l) as (l) and (m), respectively. ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(3): Pub. L. 100–203 inserted “(or in opposition to)” after “in behalf of”. ## § 504: Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities - § 504: Pub. L. 100–203, § 10711(b)(2)(A), substituted “substantial lobbying or because of political activities” for “substantial lobbying” in section catchline. - § 504(a)(2): Pub. L. 100–203, § 10711(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “is not an organization described in section 501(c)(3) by reason of carrying on propaganda, or otherwise attempting, to influence legislation,”. ## § 512: Unrelated business taxable income - § 512(c): Pub. L. 100–203 substituted “for partnerships” for “applicable to partnerships” in heading and amended text generally. Prior to amendment, text read as follows: “If a trade or business regularly carried on by a partnership of which an organization is a member is an unrelated trade or business with respect to such organization, such organization in computing its unrelated business taxable income shall, subject to the exceptions, additions, and limitations contained in subsection (b), include its share (whether or not distributed) of the gross income of the partnership from such unrelated trade or business and its share of the partnership deductions directly connected with such gross income. If the taxable year of the organization is different from that of the partnership, the amounts to be so included or deducted in computing the unrelated business taxable income shall be based upon the income and deductions of the partnership for any taxable year of the partnership ending within or with the taxable year of the organization.” ## § 514: Unrelated debt-financed income - § 514(c)(9)(B)(vi): Pub. L. 100–203, § 10214(a), amended cl. (vi) generally. Prior to amendment, cl. (vi) read as follows: “the real property is held by a partnership (which does not fail to meet the requirements of clauses (i) through (v)), and— - § 514(c)(9)(E): Pub. L. 100–203, § 10214(b), added subpar. (E). ## § 585: Reserves for losses on loans of banks - § 585(c)(3)(C): Pub. L. 100–203 substituted “section 6655(e)(2)(A)(i)” for “section 6655(d)(3)”. ## § 691: Recipients of income in respect of decedents - § 691(a)(4), § 691(a)(5)(A): Pub. L. 100–203 struck out “or 453A” after “section 453”. ## § 805: General deductions - § 805(a)(4)(B): Pub. L. 100–203 substituted “shall be the percentage determined under section 246(b)(3) of the life insurance company taxable income (and such limitation shall be applied as provided in section 246(b)(3))” for “shall be 80 percent of the life insurance company taxable income”. ## § 807: Rules for certain reserves - § 807(c): Pub. L. 100–203, § 10241(b)(2)(A), substituted “whichever of the following rates is the highest as of the time such obligation first did not involve life, accident, or health contingencies: the applicable Federal interest rate under subsection (d)(2)(B)(i), the prevailing State assumed interest rate under subsection (d)(2)(B)(ii), or the rate of interest assumed by the company in determining the guaranteed benefit.” for “the higher of the prevailing State assumed interest rate as of the time such obligation first did not involve life, accident, or health contingencies or the rate of interest assumed by the company (as of such time) in determining the guaranteed benefit.” in third to last sentence. - § 807(d)(2): Pub. L. 100–203, § 10241(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the prevailing State assumed interest rate, and”. - § 807(d)(4): Pub. L. 100–203, § 10241(b)(1), substituted “Applicable Federal interest rate; prevailing State assumed interest rate” for “Prevailing State assumed interest rate” in heading and amended text generally, revising and restating as subpars. (A) and (B) provisions of former subpars. (A) to (D). ## § 812: Definition of company’s share and policyholder’s share - § 812(b): Pub. L. 100–203 substituted “at the greater of the prevailing State assumed rate or the applicable Federal interest rate” for “at the prevailing State assumed rate or, where such rate is not used, another appropriate rate” in subpar. (A), and inserted provision at end that in any case where the prevailing State assumed rate is not used, another appropriate rate be treated as the prevailing State assumed rate for purposes of subpar. (A). ## § 816: Life insurance company defined - § 816(h): Pub. L. 100–203 substituted “section 842(c)(1)(A)” for “section 813(a)(4)(B)”. ## § 842: Foreign companies carrying on insurance business - § 842: Pub. L. 100–203 substituted “companies” for “corporations” in section catchline and amended text generally. Prior to amendment, text read as follows: “If a foreign corporation carrying on an insurance business within the United States would qualify under part I or II of this subchapter for the taxable year if (without regard to income not effectively connected with the conduct of any trade or business within the United States) it were a domestic corporation, such corporation shall be taxable under such part on its income effectively connected with its conduct of any trade or business within the United States. With respect to the remainder of its income, which is from sources within the United States, such a foreign corporation shall be taxable as provided in section 881.” ## § 854: Limitations applicable to dividends received from regulated investment company - § 854(b)(1)(A): Pub. L. 100–203 inserted “and such dividend shall be treated as received from a corporation which is not a 20-percent owned corporation” before period at end. ## § 861: Income from sources within the United States - § 861(a)(2): Pub. L. 100–203, § 10221(d)(4)(B), inserted at end “In the case of any dividend from a 20-percent owned corporation (as defined in section 243(c)(2)), subparagraph (B) shall be applied by substituting ‘100/80th’ for ‘100/70th’.” - § 861(a)(2)(B): Pub. L. 100–203, § 10221(d)(4)(A), which directed that subpar. (B) be amended by substituting “100/70th” for “100/85th”, was executed by substituting “100/70th” for “100/85ths” to reflect the probable intent of Congress. ## § 864: Definitions and special rules - § 864(c)(4)(C): Pub. L. 100–203 inserted “or part II” after “part I”. ## § 901: Taxes of foreign countries and of possessions of United States - § 901(j)(1): Pub. L. 100–203, § 10231(b), substituted “during which” for “to which” in subpar. (A) and “such country” for “any country so identified” in subpar. (B). - § 901(j)(2): Pub. L. 100–203, § 10231(a), added subpar. (C). ## § 1363: Effect of election on corporation - § 1363(d): Pub. L. 100–203 added subsec. (d) relating to recapture of LIFO benefits. ## § 1402: Definitions - § 1402(a): Pub. L. 100–203 inserted par. at end relating to income of an individual which results from or is attributable to the performance of services by such individual as a director of a corporation. ## § 1503: Computation and payment of tax - § 1503(e): Pub. L. 100–203 added subsec. (e). ## § 2001: Imposition and rate of tax - § 2001(b)(1): Pub. L. 100–203, § 10401(b)(2)(A)(i), substituted “under subsection (c)” for “in accordance with the rate schedule set forth in subsection (c)”. - § 2001(b)(2): Pub. L. 100–203, § 10401(b)(2)(A)(ii), substituted “the provisions of subsec. (c)” for “the rate schedule set forth in subsection (c)”. - § 2001(c): Pub. L. 100–203, § 10401(a)(1), substituted “1993” for “1988”. - § 2001(c): Pub. L. 100–203, § 10401(a)(2), (3), substituted in heading “After 1983 and before 1993” for “For 1984, 1985, 1986, or 1987”, and in text “after 1983 and before 1993” for “in 1984, 1985, 1986, or 1987”. - § 2001(c): Pub. L. 100–203, § 10401(b)(1), added par. (3). ## § 2036: Transfers with retained life estate - § 2036(c), § 2036: Pub. L. 100–203 added subsec. (c) and redesignated former subsec. (c) as (d). ## § 2055: Transfers for public, charitable, and religious uses - § 2055(a)(2), § 2055(a)(3): Pub. L. 100–203 inserted “(or in opposition to)” after “on behalf of”. ## § 2106: Taxable estate - § 2106(a)(2)(A)(ii), § 2106(a)(2)(A)(iii): Pub. L. 100–203 inserted “(or in opposition to)” after “on behalf of”. ## § 2502: Rate of tax - § 2502(a)(1): Pub. L. 100–203, § 10401(b)(2)(B)(i), substituted “under section 2001(c)” for “in accordance with the rate schedule set forth in section 2001(c)”. - § 2502(a)(2): Pub. L. 100–203, § 10401(b)(2)(B)(ii), substituted “under such section” for “in accordance with such rate schedule”. ## § 2522: Charitable and similar gifts - § 2522(a)(2), § 2522(b)(2), § 2522(b)(3): Pub. L. 100–203 inserted “(or in opposition to)” after “on behalf of”. ## § 3111: Rate of tax - § 3111(a), § 3111(b): Pub. L. 100–203, as amended by Pub. L. 100–647, struck out “and (t)” after “3121(a)” in introductory provisions. ## § 3121: Definitions - § 3121(a)(2)(C): Pub. L. 100–203, § 9003(a)(2), substituted “death, except that this paragraph does not apply to a payment for group-term life insurance to the extent that such payment is includible in the gross income of the employee” for “death”. - § 3121(a)(5)(F): Pub. L. 100–203, § 9023(d)(1), substituted a comma for semicolon before “or” at end. - § 3121(a)(5)(G): Pub. L. 100–203, § 9023(d)(2), substituted a semicolon for comma at end. - § 3121(a)(8)(B)(ii): Pub. L. 100–203, § 9002(b), added cl. (ii) and struck out former cl. (ii) which read as follows: “the employee performs agricultural labor for the employer on 20 days or more during such year for cash remuneration computed on a time basis;”. - § 3121(b)(3)(A): Pub. L. 100–203, § 9005(b)(1), substituted “18” for “21”. - § 3121(b)(3)(A): Pub. L. 100–203, § 9004(b)(1), struck out “performed by an individual in the employ of his spouse, and service” after “service”. - § 3121(b)(3)(B): Pub. L. 100–203, § 9005(b)(2), inserted “under the age of 21 in the employ of his father or mother, or performed by an individual” after first reference to “individual”. - § 3121(b)(3)(B): Pub. L. 100–203, § 9004(b)(2), inserted introductory provisions and struck out former introductory provisions which read as follows: “service not in the course of the employer’s trade or business, or domestic service in a private home of the employer, performed by an individual in the employ of his son or daughter; except that the provisions of this subparagraph shall not be applicable to such domestic service if—”. - § 3121(i)(2): Pub. L. 100–203, § 9001(b)(2), substituted “only (A) his basic pay as described in chapter 3 and section 1009 of title 37, United States Code, in the case of an individual performing service to which subparagraph (A) of such subsection (m)(1) applies, or (B) his compensation for such service as determined under section 206(a) of title 37, United States Code, in the case of an individual performing service to which subparagraph (B) of such subsection (m)(1) applies.” for “only his basic pay as described in chapter 3 and section 1009 of title 37, United States Code.” - § 3121(m)(1): Pub. L. 100–203, § 9001(b)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “The term ‘employment’ shall, notwithstanding the provisions of subsection (b) of this section, include service performed by an individual as a member of a uniformed service on active duty; but such term shall not include any such service which is performed while on leave without pay.” - § 3121(q): Pub. L. 100–203, § 9006(a), in heading substituted “both employee and employer taxes” for “employee taxes”, and in text struck out “other than for purposes of the taxes imposed by section 3111” after “of this chapter”, substituted “remuneration for such employment (and deemed to have been paid by the employer for purposes of subsections (a) and (b) of section 3111)” for “remuneration for employment”, and inserted before period at end “; except that, in determining the employer’s liability in connection with the taxes imposed by section 3111 with respect to such tips in any case where no statement including such tips was so furnished (or to the extent that the statement so furnished was inaccurate or incomplete), such remuneration shall be deemed for purposes of subtitle F to be paid on the date on which notice and demand for such taxes is made to the employer by the Secretary”. - § 3121(t): Pub. L. 100–203, § 9006(b)(2), struck out subsec. (t) which related to special rule for determining wages subject to employer tax in case of certain employers whose employees receive income from tips. ## § 3201: Rate of tax - § 3201(b): Pub. L. 100–203 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to the following percentage of the compensation received during any calendar year by such employee for services rendered by such employee: ## § 3221: Rate of tax - § 3221(b): Pub. L. 100–203 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “In addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the following percentage of compensation paid during any calendar year by such employer for services rendered to such employer: ## § 3301: Rate of tax - § 3301: Pub. L. 100–203 amended pars. (1) and (2) generally. Prior to amendment, pars. (1) and (2) read as follows: ## § 3402: Income tax collected at source - § 3402(f)(3)(B): Pub. L. 100–203 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “A withholding exemption certificate furnished the employer in cases in which a previous such certificate is in effect shall take effect with respect to the first payment of wages made on or after the first status determination date which occurs at least 30 days from the date on which such certificate is so furnished, except that at the election of the employer such certificate may be made effective with respect to any payment of wages made on or after the date on which such certificate is so furnished; but a certificate furnished pursuant to paragraph (2)(C) shall not take effect, and may not be made effective, with respect to any payment of wages made in the calendar year in which the certificate is furnished. For purposes of this subparagraph the term ‘status determination date’ means January 1, May 1, July 1, and October 1 of each year.” ## § 4041: Imposition of tax - § 4041(a)(1): Pub. L. 100–203, § 10502(b)(1), in heading substituted “Tax on diesel fuel where no tax imposed on fuel under section 4091” for “Diesel fuel” and in text inserted sentence at end that no tax be imposed by this paragraph on the sale or use of any liquid if there was a taxable sale of such liquid under section 4091. - § 4041(c)(1): Pub. L. 100–203, § 10502(b)(2), in heading substituted “Tax on nongasoline fuels where no tax imposed on fuel under section 4091” for “In general” and in text inserted sentence at end that no tax be imposed by this paragraph on the sale or use of any liquid if there was a taxable sale of such liquid under section 4091. - § 4041(d)(1): Pub. L. 100–203, § 10502(b)(3), added par. (1), substituting new heading for “Liquids other than gasoline, etc., used in motor vehicles, motorboats, or trains”, and struck out text of former par. (1) which read as follows: “In addition to the taxes imposed by subsection (a), there is hereby imposed a tax of 0.1 cents a gallon on benzol, benzene, naphtha, casing head and natural gasoline, or any other liquid (other than kerosene, gas oil, liquefied petroleum gas, or fuel oil, or any product taxable under section 4081)— - § 4041(d)(2): Pub. L. 100–203, § 10502(b)(3), added par. (2), substituting new heading for “Liquids used in aviation”, and struck out text of former par. (2) which read as follows: “In addition to the taxes imposed by subsection (c) and section 4081, there is hereby imposed a tax of 0.1 cents a gallon on any liquid— - § 4041(d)(3), § 4041(d)(4): Pub. L. 100–203, § 10502(b)(3), added par. (3) and redesignated former par. (3) as (4). - § 4041: Pub. L. 100–203, § 10502(b)(4), struck out subsec. (n) which related to tax on diesel fuel for highway vehicle use being imposed on sale to retailer. ## § 4081: Imposition of tax - § 4081(e): Pub. L. 100–203 substituted “net revenues are at least $500,000,000 from taxes imposed by section 4041(d) and taxes attributable to Leaking Underground Storage Tank Trust Fund financing rate imposed under this section and sections 4042 and 4091.” for “net revenues from the taxes imposed by this section (to the extent attributable to the Leaking Underground Storage Tank Trust Fund financing rate under subsection (d)(2)(B)), section 4041(d), and section 4042 (to the extent attributable to the Leaking Underground Storage Tank Trust Fund financing rate under section 4042(b)) are at least $500,000,000.” ## § 4101: Registration and bond - § 4101(a): Pub. L. 100–203 inserted “or 4091” after “section 4081”. ## § 4121: Imposition of tax - § 4121: Pub. L. 100–203 substituted “2014” for “1996”. ## § 4131: Imposition of tax - Enacted 26 U.S.C. § 4131. ## § 4132: Definitions and special rules - Enacted 26 U.S.C. § 4132. ## § 4221: Certain tax-free sales - § 4221(a): Pub. L. 100–203, § 10502(d)(4), substituted “(other than under section 4121, 4081, or 4091) on the sale by the manufacturer” for “(other than under section 4121 or section 4081 (at the Highway Trust Fund financing rate)) on the sale by the manufacturer” in introductory text. - § 4221(a): Pub. L. 100–203, § 9201(b)(1), inserted at end “In the case of the tax imposed by section 4131, paragraphs (3), (4), and (5) shall not apply and paragraph (2) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe.” ## § 4251: Imposition of tax - § 4251(b)(2): Pub. L. 100–203 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The term ‘applicable percentage’ means— ## § 4371: Imposition of tax - § 4371(2): Pub. L. 100–203 substituted “section 842(b)” for “section 813”. ## § 4912: Tax on disqualifying lobbying expenditures of certain organizations - Enacted 26 U.S.C. § 4912. ## § 4955: Taxes on political expenditures of section 501(c)(3) organizations - Enacted 26 U.S.C. § 4955. ## § 4962: Abatement of first tier taxes in certain cases - § 4962: Pub. L. 100–203, § 10712(b)(4), struck out “private foundation” before “first tier taxes” in section catchline. - § 4962(a): Pub. L. 100–203, § 10712(b)(2), substituted “any qualified first tier tax” for “any private foundation first tier tax” in closing provisions. - § 4962(b): Pub. L. 100–203, § 10712(b)(1), added subsec. (b) and struck out former subsec. (b) “Private foundation first tier tax” which read as follows: “For purposes of this section, the term ‘private foundation first tier tax’ means any first tier tax imposed by subchapter A of chapter 42, except that such term shall not include the tax imposed by section 4941(a) (relating to initial tax on self-dealing).” - § 4962(c): Pub. L. 100–203, § 10712(b)(1), added subsec. (c). ## § 4963: Definitions - § 4963(a), § 4963(b), § 4963(c): Pub. L. 100–203 inserted reference to section 4955 of this title. ## § 4971: Taxes on failure to meet minimum funding standards - § 4971(a): Pub. L. 100–203, § 9305(a)(2)(A), struck out at end “The tax imposed by this subsection shall be paid by the employer responsible for contributing to or under the plan the amount described in section 412(b)(3)(A).” - § 4971(a): Pub. L. 100–203, § 9304(c)(1), substituted “10 percent (5 percent in the case of a multiemployer plan)” for “5 percent”. - § 4971(b): Pub. L. 100–203, § 9305(a)(2)(B), struck out at end “The tax imposed by this subsection shall be paid by the employer described in subsection (a).” - § 4971(e), § 4971(f): Pub. L. 100–203, § 9305(a)(1), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 4978: Tax on certain dispositions by employee stock ownership plans and certain cooperatives - § 4978(b)(2): Pub. L. 100–203 substituted “(determined as if such securities were disposed of in the order described in section 4978A(e))” for “(determined as if such securities were disposed of before any other securities)”. ## § 4982: Excise tax on undistributed income of regulated investment companies - § 4982(b)(1)(B): Pub. L. 100–203 substituted “98 percent” for “90 percent”. ## § 5111: Eligibility - § 5111: Pub. L. 100–203 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The special tax imposed by subsection (a) shall be graduated in amount as follows: (1) for total annual use not exceeding 25 proof gallons, $25 a year; (2) for total annual use not exceeding 50 proof gallons, $50 a year; (3) for total annual use of more than 50 proof gallons, $100 a year.” ## § 5731: Imposition and rate of tax - Enacted 26 U.S.C. § 5731. ## § 5801: Imposition of tax - § 5801: Pub. L. 100–203 substituted “Imposition of tax” for “Tax” in section catchline and amended text generally. Prior to amendment, text read as follows: “On first engaging in business and thereafter on or before the first day of July of each year, every importer, manufacturer, and dealer in firearms shall pay a special (occupational) tax for each place of business at the following rates: ## § 5881: Greenmail - Enacted 26 U.S.C. § 5881. ## § 6033: Returns by exempt organizations - § 6033(b)(9), § 6033(b)(10): Pub. L. 100–203 added pars. (9) and (10). ## § 6091: Place for filing returns or other documents - § 6091(b)(1)(B)(v): Pub. L. 100–203 inserted reference to section 6852(a). ## § 6104: Publicity of information required from certain exempt organizations and certain trusts - § 6104: Pub. L. 100–203 added subsec. (e). ## § 6113: Disclosure of nondeductibility of contributions - Enacted 26 U.S.C. § 6113. ## § 6117: Cross reference ## § 6201: Assessment authority - § 6201(b)(1): Pub. L. 100–203 substituted “section 6654 or 6655” for “section 6154 or 6654”. ## § 6206: Special rules applicable to excessive claims under certain sections - § 6206: Pub. L. 100–203 substituted “or 4041 or 4091” for “or 4041”. ## § 6211: Definition of a deficiency - § 6211(b)(1): Pub. L. 100–203 inserted reference to section 6852. ## § 6212: Notice of deficiency - § 6212(c)(1): Pub. L. 100–203 inserted reference to section 6852. ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(a): Pub. L. 100–203, § 10713(b)(2)(D), inserted reference to section 6852. - § 6213(e): Pub. L. 100–203, § 10712(c)(1), inserted “4955 (relating to taxes on political expenditures),”. ## § 6408: State escheat laws not to apply - Enacted 26 U.S.C. § 6408. ## § 6416: Certain taxes on sales and services - § 6416(b)(2): Pub. L. 100–203, § 10502(d)(6), struck out “(other than coal taxable under section 4121)” after “of any article” in introductory provisions and inserted at end “This paragraph shall not apply in the case of any tax paid under section 4091 or 4121.” - § 6416(b)(2): Pub. L. 100–203, § 9201(b)(2), inserted at end “In the case of the tax imposed by section 4131, subparagraphs (B), (C), and (D) shall not apply and subparagraph (A) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe.” - § 6416(b)(3)(A): Pub. L. 100–203, § 10502(d)(7), inserted “and other than any fuel taxable under section 4091” after “section 4081”. - § 6416(b)(3)(B): Pub. L. 100–203, § 10502(d)(8), substituted “or any fuel taxable under section 4091, such gasoline or fuel” for “, such gasoline”. ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(e)(2)(C): Pub. L. 100–203, § 10502(d)(9), struck out subpar. (C) which specified section 4221(a)(3) and (d)(3), section 6416(b)(2)(B), and section 4041(g)(1) as provisions exempting from tax, gasoline and special motor fuels used for commercial fishing vessels. - § 6421(j): Pub. L. 100–203, § 10502(d)(10), redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which read as follows: “For rate of tax in case of special fuels used in noncommercial aviation or for nonhighway purposes, see section 4041.” ## § 6425: Adjustment of overpayment of estimated income tax by corporation - § 6425(c): Pub. L. 100–203 substituted “section 6655(h)” for “section 6655(g)”. ## § 6427: Fuels not used for taxable purposes - § 6427(b)(1): Pub. L. 100–203, § 10502(c)(2), substituted “section 4041(a) or 4091” for first reference to “subsection (a) of section 4041”, “section 4041(a) or 4091, as the case may be” for second reference to “subsection (a) of section 4041”. - § 6427(e)(1): Pub. L. 100–203, § 10502(c)(3), inserted “or 4091” after “section 4041”. - § 6427(f): Pub. L. 100–203, § 10502(c)(4), amended subsec. (f) generally, substituting new heading for “Gasoline used to produce certain alcohol fuels”, and revising and restating as pars. (1) to (3) provisions of former pars. (1) and (2). - § 6427(i)(1): Pub. L. 100–203, § 10502(c)(5)(A), substituted “(h), or (l)” for “or (h)”. - § 6427(i)(2)(A)(i): Pub. L. 100–203, § 10502(c)(5)(B), substituted “(h), and (l)” for “and (h)”. - § 6427(l), § 6427(m), § 6427(n): Pub. L. 100–203, § 10502(c)(1), added subsec. (l) and redesignated former subsecs. (l) to (n) as (m) to (o), respectively. - § 6427(o): Pub. L. 100–203, § 10502(c)(1), (6), redesignated subsec. (n) as (o) and amended it generally, substituting new heading for “Termination of subsections (a), (b), (c), (d), (g), and (h)” and amending text generally. Prior to amendment, text read as follows: “Except with respect to taxes imposed by section 4041(d) and section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate, subsections (a), (b), (c), (d), (g), and (h) shall only apply with respect to fuels purchased before October 1, 1993.” Former subsec. (o) redesignated (p). - § 6427(p): Pub. L. 100–203, § 10502(c)(1), redesignated subsec. (o) as (p). Former subsec. (p) redesignated (q). - § 6427: Pub. L. 100–203, § 10502(c)(1), redesignated subsec. (p), relating to cross references, as (q). ## § 6501: Limitations on assessment and collection - § 6501(l)(1): Pub. L. 100–203, § 10714(c), substituted “by section 4912, by chapter 42 (other than section 4940),” for “by chapter 42 (other than section 4940)”. - § 6501(l)(1): Pub. L. 100–203, § 10712(c)(2), substituted “plan, trust, or other organization” for “plan, or trust”. ## § 6503: Suspension of running of period of limitation - § 6503(g): Pub. L. 100–203 struck out “4951, 4952,” before “4971”. ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(h): Pub. L. 100–203 substituted “section 6654 or 6655” for “section 6154 or 6654”. ## § 6651: Failure to file tax return or to pay tax - § 6651(e): Pub. L. 100–203 substituted “section 6654 or 6655” for “section 6154 or 6654”. ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(c): Pub. L. 100–203, § 10704(a), amended subsec. (c) generally, revising and restating as pars. (1) to (4) provisions of former pars. (1) to (3). - § 6652(j): Pub. L. 100–203, § 10502(d)(11), struck out subsec. (j), as added by section 1702(b) of Pub. L. 99–514, which related to failure to give written notice to certain sellers of diesel fuel. - § 6652(k), § 6652(l): Pub. L. 100–203, § 10502(d)(11), redesignated subsec. (l), relating to information with respect to includible employee benefits, as (k), and directed the redesignation of a nonexistent subsec. (m) as (l). See Codification note above. ## § 6655: Failure by corporation to pay estimated income tax - § 6655: Pub. L. 100–203 amended section generally, revising and restating as subsecs. (a) to (j) provisions of former subsecs. (a) to (i). ## § 6684: Assessable penalties with respect to liability for tax under chapter 42 - § 6684: Pub. L. 100–203 inserted “and certain other tax-exempt organizations” after “private foundations” in parenthetical. ## § 6685: Assessable penalty with respect to public inspection requirements for certain tax-exempt organizations - § 6685: Pub. L. 100–203 substituted current section catchline for “Assessable penalties with respect to private foundation annual returns” and amended text generally. Prior to amendment, text read as follows: “In addition to the penalty imposed by section 7207 (relating to fraudulent returns, statements, or other documents), any person who is required to comply with the requirements of section 6104(d) (relating to private foundations’ annual returns) and who fails to so comply with respect to any return, if such failure is willful, shall pay a penalty of $1,000 with respect to each such return.” ## § 6710: Failure to disclose that contributions are nondeductible - Enacted 26 U.S.C. § 6710. ## § 6711: Failure by tax-exempt organization to disclose that certain information or service available from Federal Government - Enacted 26 U.S.C. § 6711. ## § 6852: Termination assessments in case of flagrant political expenditures of section 501(c)(3) organizations - Enacted 26 U.S.C. § 6852. ## § 6863: Stay of collection of jeopardy assessments - § 6863(a): Pub. L. 100–203, § 10713(b)(2)(E)(i), substituted “6851, 6852,” for “6851”. - § 6863(b)(3)(A): Pub. L. 100–203, § 10713(b)(2)(E)(ii), substituted “6851, 6852, or 6861” for “6851 or 6861”. - § 6863(b)(3)(A)(iii): Pub. L. 100–203, § 10713(b)(2)(E)(iii), as amended by Pub. L. 101–239, substituted “6851(a), 6852(a), nor 6861(a)” for “6851(a) nor 6861(a)”. ## § 7207: Fraudulent returns, statements, or other documents - § 7207: Pub. L. 100–203 inserted reference to subsec. (e) of section 6104. ## § 7409: Action to enjoin flagrant political expenditures of section 501(c)(3) organizations - Enacted 26 U.S.C. § 7409. ## § 7410: Cross references ## § 7422: Civil actions for refund - § 7422(g)(2), § 7422(g)(3): Pub. L. 100–203 inserted “4955,” after “4952,”. ## § 7429: Review of jeopardy levy or assessment procedures - § 7429(a)(1): Pub. L. 100–203, § 10713(b)(2)(F)(i), substituted “6851(a), 6852(a)” for “6851(a),”. - § 7429(a)(3)(A), § 7429(a)(3)(B), § 7429(b)(2)(A), § 7429(b)(2)(B), § 7429(g)(1), § 7429(g)(2): Pub. L. 100–203, § 10713(b)(2)(F)(ii), substituted “6851, 6852,” for “6851,” wherever appearing. ## § 7454: Burden of proof in fraud, foundation man­ager, and transferee cases - § 7454(b): Pub. L. 100–203, § 10714(b), substituted “, or whether an organization manager (as defined in section 4912(d)(2)) has ‘knowingly’ agreed to the making of disqualifying lobbying expenditures within the meaning of section 4912(b), the burden of proof” for “the burden of proof”. - § 7454(b): Pub. L. 100–203, § 10712(c)(6), substituted “or whether an organization manager (as defined in section 4955(e)(2)) has ‘knowingly’ agreed to the making of a political expenditure (within the meaning of section 4955), the burden of proof” for “the burden of proof”. ## § 7519: Required payments for entities electing not to have required taxable year - Enacted 26 U.S.C. § 7519. ## § 7611: Restrictions on church tax inquiries and examinations - § 7611(i)(3): Pub. L. 100–203, as amended by Pub. L. 101–239, substituted “, section 6852 (relating to termination assessments in case of flagrant political expenditures of section 501(c)(3) organizations), or section 6861 (relating to jeopardy assessments of income taxes, etc.),” for “or section 6861 (relating to jeopardy assessments of income taxes, etc.),”. ## § 7704: Certain publicly traded partnerships treated as corporations - Enacted 26 U.S.C. § 7704. ## § 7871: Indian tribal governments treated as States for certain purposes - § 7871(c)(2): Pub. L. 100–203, § 10632(b)(2), substituted “Except as provided in paragraph (3), subsection (a)” for “Subsection (a)”. - § 7871(c)(3): Pub. L. 100–203, § 10632(b)(1), added par. (3). - § 7871(e): Pub. L. 100–203, § 10632(a), added subsec. (e). ## § 9502: Airport and Airway Trust Fund - § 9502(b): Pub. L. 100–203, § 10502(g), substituted “January 1, 1991” for “January 1, 1988” in the par. (3) added by Pub. L. 100–203, § 10502(d)(12). - § 9502(b): Pub. L. 100–203, § 10502(d)(12), added par. (3). Former par. (3) redesignated (4). - § 9502(b): Pub. L. 100–203, § 10502(d)(12), redesignated former par. (3) as (4). ## § 9503: Highway Trust Fund - § 9503(b)(1): Pub. L. 100–203, § 10502(d)(13), added subpar. (F) and struck out former subpar. (F) which read as follows: “section 4091 (relating to tax on lubricating oil), and”. - § 9503(b)(4): Pub. L. 100–203, § 10502(d)(14), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “For purposes of paragraphs (1) and (2), there shall not be taken into account the taxes imposed by section 4041(d) and so much of the taxes imposed by section 4081 as is attributable to the Leaking Underground Storage Tank Trust Fund financing rate.” - § 9503(e)(2): Pub. L. 100–203, § 10502(d)(15), substituted “sections 4041, 4081, and 4091” for “sections 4041 and 4081” and “section 4041, 4081, or 4091” for “section 4041 or 4081”. ## § 9508: Leaking Underground Storage Tank Trust Fund - § 9508(b)(3), § 9508(b)(4), § 9508(b): Pub. L. 100–203, § 10502(d)(16), added par. (3) and redesignated former pars. (3) and (4) as (4) and (5), respectively. - § 9508(c)(2): Pub. L. 100–203, § 10502(d)(17), added cl. (ii) and closing provisions, and struck out former cl. (ii) which read as follows: “credits allowed under section 34, with respect to the taxes imposed by sections 4041(d) and 4081 (to the extent attributable to the Leaking Underground Storage Tank Trust Fund financing rate under section 4081).” ## § 9510: Vaccine Injury Compensation Trust Fund - Enacted 26 U.S.C. § 9510.