# Pub. L. 101-239: changes to the Internal Revenue Code 1989-12-19, 103 Stat. 2411. Source: . ## Legislative history - Bill: [H.R. 3299](https://www.congress.gov/bill/101st-congress/house-bill/3299) ## § 1: Tax imposed - § 1(f)(6)(B): Pub. L. 101–239, § 7831(a), substituted “subsection (c)(4) of section 63 (as it applies to subsections (c)(5)(A) and (f) of such section) and section 151(d)(3)” for “section 63(c)(4)”. - § 1(i)(3)(C), § 1(i)(3): Pub. L. 101–239, § 7811(j)(1), redesignated subpar. (C), relating to special rule where parent has different taxable year, as (D). - § 1(i): Pub. L. 101–239, § 7816(b), inserted “(other than for purposes of this paragraph)” after “shall be treated” in concluding provisions. ## § 25: Interest on certain home mortgages - § 25(h): Pub. L. 101–239 substituted “for any period after September 30, 1990” for “for any calendar year after 1989”. ## § 26: Limitation based on tax liability; definition of tax liability - § 26(b)(2)(C), § 26(b)(2)(D): Pub. L. 101–239, § 7811(c)(1), amended subpars. (C) and (D) generally. Prior to amendment, subpars. (C) and (D) read as follows: - § 26(b)(2)(K): Pub. L. 101–239, § 7811(c)(2), added subpar. (K) and struck out former subpar. (K) which was identical. - § 26(b)(2)(L), § 26(b)(2)(M): Pub. L. 101–239, § 7811(c)(2), added subpars. (L) and (M) and struck out former subpars. (L) and (M) which read as follows: - § 26(b)(2)(N): Pub. L. 101–239, § 7821(a)(4)(A), which directed amendment of subsec. (b)(2) of this section “as amended by section 11811” by adding subpar. (N), was executed as if it directed amendment of subsec. (b)(2) of this section “as amended by section 7811”, to reflect the probable intent of Congress and the renumbering of section 11811 of H.R. 3299 as section 7811 prior to the enactment of H.R. 3299 into law as Pub. L. 101–239. ## § 41: Credit for increasing research activities - § 41(a)(1)(B): Pub. L. 101–239, § 7110(b)(2)(A), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the base period research expenses, and”. - § 41(b)(4): Pub. L. 101–239, § 7110(b)[(c)], added par. (4). - § 41(c): Pub. L. 101–239, § 7110(b)(1), substituted “Base amount” for “Base period research expenses” in heading and amended text generally, substituting pars. (1) to (5) for former pars. (1) to (3) which defined “base period research expenses” and “base period” and prescribed minimum base period research expenses. - § 41(e)(7)(C)(ii): Pub. L. 101–239, § 7110(b)(2)(B), substituted “base amount” for “base period research expenses”. - § 41(f)(1): Pub. L. 101–239, § 7110(b)(2)(C), substituted “proportionate shares of the qualified research expenses and basic research payments” for “proportionate share of the increase in qualified research expenses” in subpars. (A)(ii) and (B)(ii). - § 41(f)(3)(A): Pub. L. 101–239, § 7110(b)(2)(D), substituted “December 31, 1983” for “June 30, 1980” and inserted before period at end “, and the gross receipts of the taxpayer for such periods shall be increased by so much of the gross receipts of such predecessor with respect to the acquired trade or business as is attributable to such portion”. - § 41(f)(3)(B): Pub. L. 101–239, § 7110(b)(2)(E), substituted “December 31, 1983” for “June 30, 1980” in introductory provisions and inserted before period at end “, and the gross receipts of the taxpayer for such periods shall be decreased by so much of the gross receipts as is attributable to such portion”. - § 41(f)(3)(C): Pub. L. 101–239, § 7110(b)(2)(F), substituted “Certain reimbursements taken into account in determining fixed-base percentage” for “Increase in base period” in heading, “for the taxable years taken into account in computing the fixed-base percentage shall be increased by the lesser of” for “for the base period for such taxable year shall be increased by the lesser of” in introductory provisions, and new cls. (i) and (ii) for former cls. (i) and (ii) which read as follows: - § 41(f)(4): Pub. L. 101–239, § 7110(b)(2)(G), inserted “and gross receipts” after “qualified research expenses”. - § 41(h): Pub. L. 101–239, § 7814(e)(2)(C), redesignated subsec. (i) as (h) and struck out former subsec. (h) which related to election, time for election, and manner of election by taxpayer to have research credit not apply for a taxable year. - § 41(h)(1): Pub. L. 101–239, § 7110(a)(1)(A), substituted “December 31, 1990” for “December 31, 1989”. - § 41(h)(2): Pub. L. 101–239, § 7110(a)(1), substituted “January 1, 1991” for “January 1, 1990” in two places and substituted “December 31, 1990” for “December 31, 1989”. - § 41(h)(2): Pub. L. 101–239, § 7110(b)(2)(H), substituted “base amount” for “base period expenses” in heading and “the base amount with respect to such taxable year shall be the amount which bears the same ratio to the base amount for such year (determined without regard to this paragraph)” for “any amount for any base period with respect to such taxable year shall be the amount which bears the same ratio to such amount for such base period” in text. - § 41: Pub. L. 101–239, § 7814(e)(2)(C), redesignated subsec. (i) as (h). ## § 42: Low-income housing credit - § 42(b)(1): Pub. L. 101–239, § 7108(h)(5), inserted at end “A building shall not be treated as described in subparagraph (B) if, at any time during the credit period, moderate rehabilitation assistance is provided with respect to such building under section 8(e)(2) of the United States Housing Act of 1937.” - § 42(b)(3): Pub. L. 101–239, § 7108(c)(2), which directed amendment of subpar. (C) by substituting “subsection (h)(7)” for “subsection (h)(6))”, was executed by substituting “subsection (h)(7)” for “subsection (h)(6)”, as the probable intent of Congress. - § 42(c)(1)(E): Pub. L. 101–239, § 7108(i)(2), added subpar. (E). - § 42(d)(1): Pub. L. 101–239, § 7108(l)(1), inserted “as of the close of the 1st taxable year of the credit period” before period at end. - § 42(d)(2)(A): Pub. L. 101–239, § 7108(l)(2), substituted “subparagraph (B), its adjusted basis as of the close of the 1st taxable year of the credit period, and” for “subparagraph (B), the sum of— - § 42(d)(2)(B)(iv): Pub. L. 101–239, § 7108(d)(1), added cl. (iv). - § 42(d)(2)(C): Pub. L. 101–239, § 7108(l)(3)(A), substituted “Adjusted basis” for “Acquisition cost” in heading and “adjusted basis” for “cost” in text. - § 42(d)(5): Pub. L. 101–239, § 7108(l)(3)(B), substituted “Special rules for determining eligible basis” for “Eligible basis determined when building placed in service” in heading. - § 42(d)(5)(A): Pub. L. 101–239, § 7108(l)(3)(B), redesignated subpar. (B) as (A) and struck out former subpar. (A) which read as follows: “Except as provided in subparagraphs (B) and (C), the eligible basis of any building for the entire compliance period for such building shall be its eligible basis on the date such building is placed in service (increased, in the case of an existing building which meets the requirements of paragraph (2)(B), by the amounts described in paragraph (2)(A)(i)(II)).” - § 42(d)(5)(B): Pub. L. 101–239, § 7108(l)(3)(B), redesignated subpar. (C) as (B). Former subpar. (B) redesignated (A). - § 42(d)(5): Pub. L. 101–239, § 7108(l)(3)(B), redesignated subpar. (D) as (C). Former subpar. (C) redesignated (B). - § 42(d)(5): Pub. L. 101–239, § 7811(a)(1), inserted “section” before “167(k)” in heading. - § 42(d)(5): Pub. L. 101–239, § 7108(l)(3)(B), redesignated subpar. (D) as (C). - § 42(d)(5): Pub. L. 101–239, § 7108(g), added subpar. (D). - § 42(d)(6)(A): Pub. L. 101–239, § 7841(d)(13), substituted “Farmers Home Administration” for “Farmers’ Home Administration”. - § 42(d)(6)(C), § 42(d)(6): Pub. L. 101–239, § 7108(f), added subpars. (C) and (D) and redesignated former subpar. (C) as (E). - § 42(d)(7)(A): Pub. L. 101–239, § 7831(c)(6), inserted “(or interest therein)” after “subparagraph (B)” in introductory provisions. - § 42(d)(7)(A)(ii): Pub. L. 101–239, § 7841(d)(14), substituted “under subsection (a)” for “under sebsection (a)”. - § 42(e)(2)(A): Pub. L. 101–239, § 7841(d)(15), substituted “to capital account” for “to captial account”. - § 42(e)(3): Pub. L. 101–239, § 7108(d)(3), substituted “Minimum expenditures to qualify” for “Average of rehabilitation expenditures must be $2,000 or more” in heading, added subpars. (A) and (B), redesignated former subpar. (B) as (C), and struck out former subpar. (A) which read as follows: “Paragraph (1) shall apply to rehabilitation expenditures with respect to any building only if the qualified basis attributable to such expenditures incurred during any 24-month period, when divided by the low-income units in the building, is $2,000 or more.” - § 42(e)(5): Pub. L. 101–239, § 7108(l)(3)(C), substituted “subsection (d)(2)(A)(i)” for “subsection (d)(2)(A)(i)(II)”. - § 42(f)(4): Pub. L. 101–239, § 7831(c)(4), added par. (4). - § 42(f)(5): Pub. L. 101–239, § 7108(d)(2), added par. (5). - § 42(g)(2)(A): Pub. L. 101–239, § 7108(e)(2), inserted at end “For purposes of the preceding sentence, the amount of the income limitation under paragraph (1) applicable for any period shall not be less than such limitation applicable for the earliest period the building (which contains the unit) was included in the determination of whether the project is a qualified low-income housing project.” - § 42(g)(2)(A): Pub. L. 101–239, § 7108(e)(1)(B), substituted “the imputed income limitation applicable to such unit” for “the income limitation under paragraph (1) applicable to individuals occupying such unit”. - § 42(g)(2)(B): Pub. L. 101–239, § 7108(h)(2), added cl. (iii) and concluding provisions which defined “supportive service”. - § 42(g)(2)(C), § 42(g)(2)(D), § 42(g)(2)(E): Pub. L. 101–239, § 7108(e)(1)(A), added subpars. (C) and (D) and redesignated former subpar. (C) as (E). - § 42(g)(3)(D): Pub. L. 101–239, § 7108(m)(3), added subpar. (D). - § 42(g)(4): Pub. L. 101–239, § 7108(n)(2), struck out “(other than section 142(d)(4)(B)(iii))” after “in applying such provisions”. - § 42(g)(7): Pub. L. 101–239, § 7108(h)(3), added par. (7). - § 42(h)(1)(B): Pub. L. 101–239, § 7108(m)(2), substituted “(E), or (F)” for “or (E)”. - § 42(h)(1)(F): Pub. L. 101–239, § 7108(m)(1), added subpar. (F). - § 42(h)(3)(C), § 42(h)(3)(D), § 42(h)(3)(E), § 42(h)(3)(F), § 42(h)(3)(G): Pub. L. 101–239, § 7108(b)(1), added subpars. (C) and (D), redesignated former subpars. (D) to (F) as (E) to (G), respectively, and struck out former subpar. (C) which read as follows: “The State housing credit ceiling applicable to any State for any calendar year shall be an amount equal to $1.25 multiplied by the State population.” - § 42(h)(4)(B): Pub. L. 101–239, § 7108(j), substituted “50 percent” for “70 percent” in heading and in text. - § 42(h)(5)(D)(ii): Pub. L. 101–239, § 7811(a)(2), substituted “clause (i)” for “clause (ii)”. - § 42(h)(5)(E): Pub. L. 101–239, § 7108(b)(2)(A), substituted “subparagraph (F)” for “subparagraph (E)”. - § 42(h)(6): Pub. L. 101–239, § 7108(c)(1), added par. (6). Former par. (6) redesignated (7). - § 42(h)(6)(B), § 42(h)(6)(C), § 42(h)(6)(D), § 42(h)(6)(E): Pub. L. 101–239, § 7108(b)(2)(B), redesignated subpars. (C) to (E) as (B) to (D), respectively, and struck out former subpar. (B) which provided that the housing credit dollar amount could not be carried over to any other calendar year. - § 42(h)(7), § 42(h)(8): Pub. L. 101–239, § 7108(c)(1), redesignated pars. (6) and (7) as (7) and (8), respectively. - § 42(i)(2): Pub. L. 101–239, § 7108(k), inserted at end “Such term shall not include any loan which would be a below market Federal loan solely by reason of assistance provided under section 106, 107, or 108 of the Housing and Community Development Act of 1974 (as in effect on the date of the enactment of this sentence).” - § 42(i)(3)(B): Pub. L. 101–239, § 7108(i)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “A unit shall not be treated as a low-income unit unless the unit is suitable for occupancy (as determined under regulations prescribed by the Secretary taking into account local health, safety, and building codes) and used other than on a transient basis. For purposes of the preceding sentence, a single-room occupancy unit shall not be treated as used on a transient basis merely because it is rented on a month-by-month basis.” - § 42(i)(3)(B): Pub. L. 101–239, § 7831(c)(1), inserted “(as determined under regulations prescribed by the Secretary taking into account local health, safety, and building codes)” after “suitable for occupancy”. - § 42(i)(3)(B): Pub. L. 101–239, § 7108(h)(1), inserted at end “For purposes of the preceding sentence, a single-room occupancy unit shall not be treated as used on a transient basis merely because it is rented on a month-by-month basis.” - § 42(i)(3)(D): Pub. L. 101–239, § 7831(c)(2), added subpar. (D). - § 42(i)(3)(E): Pub. L. 101–239, § 7108(h)(4), added subpar. (E). - § 42(i)(6): Pub. L. 101–239, § 7831(c)(3), added par. (6). - § 42(i)(8): Pub. L. 101–239, § 7108(q), added par. (8). - § 42(k)(2)(D): Pub. L. 101–239, § 7108(o), added provision at end relating to the applicability of cl. (ii) to qualified nonprofit organizations not described in section 46(c)(8)(D)(iv)(II) with respect to a building. - § 42(l)(1): Pub. L. 101–239, § 7108(p), in introductory provisions, substituted “Following” for “Not later than the 90th day following” and inserted “at such time and” before “in such form”. - § 42(m): Pub. L. 101–239, § 7108(o), added subsec. (m). Former subsec. (m) redesignated (n). - § 42(m): Pub. L. 101–239, § 7831(c)(5), added par. (4). - § 42(n): Pub. L. 101–239, § 7108(o), redesignated subsec. (m) as (n). Former subsec. (n) redesignated (o). - § 42(n): Pub. L. 101–239, § 7108(a)(1), amended subsec. (n) generally. Prior to amendment, subsec. (n) read as follows: “The State housing credit ceiling under subsection (h) shall be zero for any calendar year after 1989 and subsection (h)(4) shall not apply to any building placed in service after 1989.” - § 42: Pub. L. 101–239, § 7108(o), redesignated subsec. (n) as (o). ## § 45C: Clinical testing expenses for certain drugs for rare diseases or conditions - § 45C(b)(1): Pub. L. 101–239 substituted “1990” for “1989”. ## § 46: Amount of credit - § 46: Pub. L. 101–239, § 7106, substituted “Sept. 30, 1990” for “Dec. 31, 1989” in table items (viii) C., (ix) B., and (x). - § 46: Pub. L. 101–239, § 7814(d), made technical correction to language of Pub. L. 100–647, § 4006, see 1988 Amendment note below. ## § 51: Amount of credit - § 51(c)(4): Pub. L. 101–239, § 7103(a), substituted “September 30, 1990” for “December 31, 1989”. - § 51(d): Pub. L. 101–239, § 7103(c)(1), added subpar. (C). ## § 53: Credit for prior year minimum tax liability - § 53(d)(1)(B)(i)(II): Pub. L. 101–239, § 7811(d)(2), inserted before period at end “and if section 59(a)(2) did not apply”. - § 53(d)(1)(B)(ii): Pub. L. 101–239, § 7612(a)(2), substituted “subsection (b)(1)” for “subsections (b)(1) and (c)(3)” in subcl. (I) and struck out at end “In the case of taxable years beginning after 1989, the adjustments provided in section 56(g) shall be treated as specified in this clause to the extent attributable to items which are excluded from gross income for any taxable year for purposes of the regular tax, or are not deductible for any taxable year under the adjusted current earnings method of section 56(g).” - § 53(d)(1)(B)(iii): Pub. L. 101–239, § 7612(b)(1), which directed amendment of cl. (iii) by inserting “or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B)” after “section 29(d)(5)(B)”, was executed by making the insertion after “section 29(b)(5)(B)”, as the probable intent of Congress. - § 53(d)(1)(B): Pub. L. 101–239, § 7612(b)(1), which directed amendment of cl. (iv) by inserting “or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B)” after “section 29(d)(5)(B)”, was executed by making the insertion after “section 29(b)(5)(B)” in subcl. (II), as the probable intent of Congress. - § 53(d)(1)(B): Pub. L. 101–239, § 7612(a)(1), added cl. (iv). ## § 56: Adjustments in computing alternative minimum taxable income - § 56(a)(3): Pub. L. 101–239, § 7815(e)(2)(B), substituted “The first sentence of this paragraph shall not” for “The preceding sentence shall not”. - § 56(a)(3): Pub. L. 101–239, § 7815(e)(2)(A), made clarifying amendment to directory language of Pub. L. 100–647, § 5041(b)(4), see 1988 Amendment note below. - § 56(a)(3): Pub. L. 101–239, § 7612(c)(1), struck out “with respect to which the requirements of clauses (i) and (ii) of section 460(e)(1)(B) are met” after “section 460(e)(6))”. - § 56(b)(2): Pub. L. 101–239, § 7612(d)(1), added subpar. (D). - § 56(b)(3): Pub. L. 101–239, § 7811(d)(3), inserted after first sentence “Section 422A(c)(2) shall apply in any case where the disposition and the inclusion for purposes of this part are within the same taxable year and such section shall not apply in any other case.” and substituted “this paragraph” for “the preceding sentence” in last sentence. - § 56: Pub. L. 101–239, § 7611(a)(1)(A), amended cl. (i) generally. Prior to amendment cl. (i) read as follows: “The depreciation deduction with respect to any property placed in service in a taxable year beginning after 1989 shall be determined under whichever of the following methods yields deductions with a smaller present value: - § 56: Pub. L. 101–239, § 7611(a)(2), inserted “and which is placed in service in a taxable year beginning before 1990” after “thereof) applies”. - § 56: Pub. L. 101–239, § 7611(a)(1)(B), redesignated cl. (vii) as (v), and struck out former cl. (v), which related to use of slower method if used for book purposes, and cl. (vi), which related to election to have cumulative limitation. - § 56: Pub. L. 101–239, § 7611(f)(2), inserted at end “The preceding sentence shall not apply in the case of any amount excluded from gross income under section 108 (or the corresponding provisions of prior law).” - § 56: Pub. L. 101–239, § 7611(f)(3), repealed cl. (iii) which read as follows: “In the case of any annuity contract, the income on such contract (as determined under section 72(u)(2)) shall be treated as includible in gross income for such year. The preceding sentence shall not apply to any annuity contract which is held under a plan described in section 403(a) or which is described in section 72(u)(3)(C).” - § 56: Pub. L. 101–239, § 7611(d), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “Clause (i) shall not apply to any deduction allowable under section 243 or 245 for a 100-percent dividend— - § 56: Pub. L. 101–239, § 7611(e), added cl. (iv). - § 56: Pub. L. 101–239, § 7611(b), amended subpar. (D) generally, in cl. (i), substituting provisions directing that adjustments in section 312(n)(2)(A) be applied, for provisions directing adjustments in section 312(n) be applied, with certain exceptions, in cl. (ii), substituting provisions directing that sections 173 and 248 not apply to expenditures paid or incurred in taxable years beginning after December 31, 1989, for material relating to special rule for intangible drilling costs and mineral exploration and development costs, and adding cls. (iii) and (iv). - § 56: Pub. L. 101–239, § 7815(e)(4), added subcl. (IV) relating to inapplicability of pars. (6) to (8) and struck out former subcls. (IV) and (V), which read as follows: - § 56: Pub. L. 101–239, § 7611(c), amended subpar. (G) generally. Prior to amendment, subpar. (G) read as follows: “The allowances for depletion with respect to any property placed in service in a taxable year beginning after 1989, shall be determined under whichever of the following methods yields deductions with a smaller present value: - § 56: Pub. L. 101–239, § 7205(b), added cl. (ii) and concluding provision and struck out former cl. (ii) and concluding provision which read as follows: - § 56: Pub. L. 101–239, § 7611(f)(1), substituted “in a taxable year beginning after 1989” for “after the date of the enactment of the Tax Reform Act of 1986”. - § 56: Pub. L. 101–239, § 7611(f)(4), redesignated subpar. (B) as (A) and struck out former subpar. (A) which defined “book purposes”. - § 56: Pub. L. 101–239, § 7611(f)(4), redesignated subpar. (D) as (B). Former subpar. (B) redesignated (A). - § 56: Pub. L. 101–239, § 7611(f)(4), struck out subpar. (C) which read as follows: “Present value.—Present value shall be determined as of the time the property is placed in service (or, if later, as of the beginning of the first taxable year beginning after 1989) and under regulations prescribed by the Secretary.” - § 56: Pub. L. 101–239, § 7611(f)(4), redesignated subpar. (D) as (B). ## § 59: Other definitions and special rules - § 59(a)(2): Pub. L. 101–239, § 7612(e)(1), added subpar. (C). - § 59(e)(1): Pub. L. 101–239, § 7611(f)(5)(B), inserted before period at end “(or, in the case of a qualified expenditure described in paragraph (2)(C), over the 60-month period beginning with the month in which such expenditure was paid or incurred)”. - § 59(g): Pub. L. 101–239, § 7811(d)(1)(A), substituted “for the taxable year for which the item is taken into account or for any other taxable year” for “for any taxable year”. - § 59(i): Pub. L. 101–239, § 7611(f)(6), substituted “amounts” for “interest” in heading and “any amount shall” for “interest shall” in text. - § 59(j)(2): Pub. L. 101–239, § 7811(j)(7), substituted “Other rules” for “Others rules” in heading. ## § 66: Treatment of community income - § 66(d)(1): Pub. L. 101–239 substituted “section 911(d)(2)” for “section 911(b)”. ## § 67: 2-percent floor on miscellaneous itemized deductions - § 67(c): Pub. L. 101–239 struck out par. (4) which read as follows: “Termination.—This subsection shall not apply to any taxable year beginning after December 31, 1989.” ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(e)(11)(A): Pub. L. 101–239, § 7815(a)(3), (5), substituted “calendar year” for “12-month period” in cls. (i) and (ii), and inserted at end “The preceding sentence shall not apply to any contract described in paragraph (5)(D).” - § 72(q)(2)(B): Pub. L. 101–239, § 7811(m)(4), inserted an additional closing parenthesis after “subsection (s)(6)(B))”. ## § 104: Compensation for injuries or sickness - § 104(a): Pub. L. 101–239 inserted at end “Paragraph (2) shall not apply to any punitive damages in connection with a case not involving physical injury or physical sickness.” ## § 106: Contributions by employer to accident and health plans - § 106(b)(2): Pub. L. 101–239 amended subsec. (b)(2) as it existed prior to general amendment by Pub. L. 100–647 by striking out the last sentence which read as follows: “Under regulations, rules similar to the rules of subsections (a) and (b) of section 52 (relating to employers under common control) shall apply for purposes of subparagraph (A).” See Effective Date of 1989 Amendment note below. ## § 125: Cafeteria plans - § 125(e)(2): Pub. L. 101–239 substituted “includible only because” for “includable only because”, see Codification note above. ## § 127: Educational assistance programs - § 127(c): Pub. L. 101–239, § 7814(a), struck out par. (8) which read as follows: “Coordination with section 117(d).—In the case of the education of an individual who is a graduate student at an educational organization described in section 170(b)(1)(A)(ii) and who is engaged in teaching or research activities for such organization, section 117(d)(2) shall be applied as if it did not contain the phrase ‘(below the graduate level)’.” - § 127(d): Pub. L. 101–239, § 7101(a)(1), substituted “September 30, 1990” for “December 31, 1988”. ## § 129: Dependent care assistance programs - § 129(a): Pub. L. 101–239 struck out at end “For purposes of the preceding sentence, marital status shall be determined under the rules of paragraphs (3) and (4) of section 21(e).” ## § 132: Certain fringe benefits - § 132(f)(2)(B): Pub. L. 101–239, § 7841(d)(19), substituted “section 151(c)(3)” for “section 151(e)(3)” in introductory provisions. - § 132(h)(1): Pub. L. 101–239, § 7841(d)(7), substituted “to highly compensated employees” for “to officers, etc.,” in heading. - § 132(h): Pub. L. 101–239, § 7101(b), added par. (9). ## § 135: Income from United States savings bonds used to pay higher education tuition and fees - § 135(d)(1): Pub. L. 101–239 substituted “subsection (a) with respect to” for “subsection (a) respect to”. ## § 142: Exempt facility bond - § 142(d)(2)(B): Pub. L. 101–239, § 7108(e)(3), inserted at end “Section 7872(g) shall not apply in determining the income of individuals under this subparagraph.” - § 142(d)(4)(B)(iii): Pub. L. 101–239, § 7108(n)(1), substituted “exceed ½” for “exceed ⅓”. - § 142(i)(1): Pub. L. 101–239, § 7816(s)(1), inserted heading “In general”. ## § 143: Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond - § 143(a)(1): Pub. L. 101–239 substituted “September 30, 1990” for “December 31, 1989” in heading and in text. ## § 144: Qualified small issue bond; qualified student loan bond; qualified redevelopment bond - § 144(a)(12)(B): Pub. L. 101–239 substituted “by substituting ‘September 30, 1990’ for ‘December 31, 1986’ ” for “by substituting ‘1989’ for ‘1986’ ”. ## § 145: Qualified 501(c)(3) bond - § 145(d)(3), § 145(d)(4): Pub. L. 101–239 added par. (3) and redesignated former par. (3) as (4). ## § 146: Volume cap - § 146(g)(3), § 146(g)(4): Pub. L. 101–239 redesignated par. (3), relating to exempt facility bonds issued as part of an issue described in par. (11) of section 142(a), as (4). ## § 147: Other requirements applicable to certain private activity bonds - § 147(c)(3): Pub. L. 101–239 inserted a comma after “mass commuting facility” in introductory provisions and in subpar. (A). ## § 148: Arbitrage - § 148(c)(2)(D), § 148(c)(2): Pub. L. 101–239, § 7652(c), as amended by Pub. L. 101–508, § 11701(j)(6), added subpar. (D) and redesignated former subpar. (D) as (E). - § 148(d): Pub. L. 101–239, § 7814(c)(2), struck out “a qualified mortgage bond or” after “in the case of”. - § 148(f)(4)(B)(i): Pub. L. 101–239, § 7652(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “An issue shall, for purposes of this subsection, be treated as meeting the requirements of paragraph (2) if the gross proceeds of such issue are expended for the governmental purpose for which the issue was issued by no later than the day which is 6 months after the date of issuance of such issue. Gross proceeds which are held in a bona fide debt service fund shall not be considered gross proceeds for purposes of this subparagraph only.” - § 148(f)(4)(B)(ii)(I): Pub. L. 101–239, § 7652(d), inserted “each place it appears” after “ ‘6 months’ ”. - § 148(f)(4)(B)(iii)(III): Pub. L. 101–239, § 7816(r), substituted “such date of issuance or the date” for “such date of issuance. or the date”. - § 148(f)(4)(B)(iv): Pub. L. 101–239, § 7652(b), added cl. (iv). - § 148(f)(4)(C)(ii)(II): Pub. L. 101–239, § 7816(t), substituted “to make loans to” for “on behalf of”. ## § 149: Bonds must be registered to be tax exempt; other requirements - § 149(g): Pub. L. 101–239 added subsec. (g). ## § 162: Trade or business expenses - § 162(i): Pub. L. 101–239, § 6202(b)(3)(A), struck out subsec. (i) which read as follows: - § 162(k)(2)(B): Pub. L. 101–239, § 7862(c)(3)(A), amended cl. (iv) as it existed prior to repeal of subsec. (k) by Pub. L. 100–647, by substituting “entitlement” for “eligibility” in heading and inserting “which does not contain any exclusion or limitation with respect to any preexisting condition of such beneficiary” after “or otherwise)” in subclause (I). - § 162(l)(5): Pub. L. 101–239, § 7107(b), added par. (5). Former par. (5) redesignated (6). - § 162(l)(5): Pub. L. 101–239, § 7107(a)(1), substituted “September 30, 1990” for “December 31, 1989”. - § 162(l): Pub. L. 101–239, § 7107(b), redesignated former par. (5) as (6). ## § 163: Interest - § 163(e)(5), § 163(e)(6): Pub. L. 101–239, § 7202(a), added par. (5) and redesignated former par. (5) as (6). - § 163(i): Pub. L. 101–239, § 7202(b), added subsec. (i). Former subsec. (i) redesignated (j). - § 163(j): Pub. L. 101–239, § 7210(a), added subsec. (j). Former subsec. (j) redesignated (k). - § 163(j): Pub. L. 101–239, § 7202(b), redesignated subsec. (i) as (j). - § 163(k): Pub. L. 101–239, § 7210(a), redesignated subsec. (j) as (k). ## § 167: Depreciation - § 167: Pub. L. 101–239, § 7645(a), added subsec. (r). - § 167: Pub. L. 101–239, § 7622(b)(1) [(d)(1)], repealed subsec. (r) which provided that trademark or trade name expenditures were not depreciable. ## § 168: Accelerated cost recovery system - § 168(b)(3)(D), § 168(b)(3)(E): Pub. L. 101–239, § 7816(f), redesignated subpar. (D), relating to property described in subsec. (e)(3)(D)(ii), as (E). - § 168(b)(5): Pub. L. 101–239, § 7816(e)(1), substituted “paragraph (2)(C)” for “paragraph (2)(B)”. - § 168(c): Pub. L. 101–239, § 7816(e)(2), substituted “subsection (b)(2)(C)” for “subsection (b)(2)(B)”. - § 168(i)(1): Pub. L. 101–239, § 7816(w), made clarifying amendment to directory language of Pub. L. 100–647, § 6253, see 1988 Amendment note below. ## § 172: Net operating loss deduction - § 172(b)(1): Pub. L. 101–239, § 7211(a), added subpar. (M). - § 172: Pub. L. 101–239, § 7211(b), added subsec. (m) and redesignated former subsec. (m) as (n). ## § 174: Amortization of research and experimental expenditures - § 174: Pub. L. 101–239 added subsec. (e) and redesignated former subsec. (e) as (f). ## § 196: Deduction for certain unused business credits - § 196(c)(4): Pub. L. 101–239, § 7814(e)(2)(D), inserted “(other than such credit determined under section 280C(c)(3))” after “section 41(a)”. - § 196(d): Pub. L. 101–239, § 7814(e)(1), substituted “substituting ‘an amount equal to 50 percent of’ for ‘an amount equal to’ in the case of” for “substituting an amount equal to 50 percent of for an amount equal to in the case of” in introductory provisions. - § 196(d): Pub. L. 101–239, § 7110(c)(2), inserted “for a taxable year beginning before January 1, 1990” after “under section 41(a)”. ## § 219: Retirement savings - § 219(f)(1): Pub. L. 101–239, § 7841(c)(1), inserted at end “For purposes of this paragraph, section 401(c)(2) shall be applied as if the term trade or business for purposes of section 1402 included service described in subsection (c)(6).” - § 219(g)(3)(A)(ii): Pub. L. 101–239, § 7816(c)(1), made technical correction to directory language of Pub. L. 100–647, § 6009(c)(2), see 1988 Amendment note below. ## § 245: Dividends received from certain foreign corporations - § 245(a)(8): Pub. L. 101–239 made clarifying amendment to directory language of Pub. L. 100–647, § 1012(l)(2)(A), see 1988 Amendment note below. ## § 263A: Capitalization and inclusion in inventory costs of certain expenses - § 263A(h)(3)(D): Pub. L. 101–239 substituted “corporations” for “personal service corporations” in heading and amended text generally. Prior to amendment, text read as follows: ## § 274: Disallowance of certain entertainment, etc., expenses - § 274(n)(2): Pub. L. 101–239, § 7816(a), added a new subpar. (E), substantially identical to former subpar. (E), and moved sentence formerly appearing between subpars. (E) and (F) to end of concluding provisions after subpar. (F). - § 274(n)(2): Pub. L. 101–239, § 7841(d)(18), inserted “any” before “Federal law”. ## § 280C: Certain expenses for which credits are allowable - § 280C(c)(1), § 280C(c)(2)(A): Pub. L. 101–239, § 7110(c)(1), struck out “50 percent of” before “the amount of the credit”. - § 280C(c)(3): Pub. L. 101–239, § 7814(e)(2)(A), added par. (3). Former par. (3) redesignated (4). - § 280C(c)(3): Pub. L. 101–239, § 7110(c)(1), struck out “50 percent of” before “the amount described”. - § 280C(c): Pub. L. 101–239, § 7814(e)(2)(A), redesignated par. (3) as (4). ## § 280F: Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes - § 280F(d)(4)(A): Pub. L. 101–239 added cl. (v) and redesignated former cl. (v) as (vi). ## § 312: Effect on earnings and profits - § 312(b): Pub. L. 101–239, § 7811(m)(2), made clarifying amendment to directory language of Pub. L. 100–647, § 1018(d)(4), see 1988 Amendment note below. - § 312(n)(2)(A)(ii): Pub. L. 101–239, § 7611(f)(5)(A), substituted “in which such amount was paid or incurred” for “in which the production from the well begins”. ## § 351: Transfer to corporation controlled by transferor - § 351(a): Pub. L. 101–239, § 7203(a), struck out “or securities” after “stock”. - § 351(b), § 351(d), § 351(e)(2): Pub. L. 101–239, § 7203(b)(1), struck out “or securities” after “stock”. - § 351(g)(2): Pub. L. 101–239, § 7203(b)(2), substituted “stock or property” for “stock, securities, or property”. ## § 381: Carryovers in certain corporate acquisitions - § 381(c)(26), § 381(c): Pub. L. 101–239, as amended by Pub. L. 104–188, redesignated par. (27) as (26). ## § 382: Limitation on net operating loss carryforwards and certain built-in losses following ownership change - § 382(h)(3)(B)(i): Pub. L. 101–239, § 7205(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “If the amount of the net unrealized built-in gain or net unrealized built-in loss (determined without regard to this subparagraph) of any old loss corporation is not greater than 25 percent of the amount determined for purposes of subparagraph (A)(i)(I), the net unrealized built-in gain or net unrealized built-in loss shall be zero.” - § 382(h)(6)(B): Pub. L. 101–239, § 7811(c)(5)(A)(i), inserted “(determined without regard to any carryover)” after “during the recognition period”. - § 382(h)(6)(C): Pub. L. 101–239, § 7811(c)(5)(A)(ii), substituted “which would be treated as recognized built-in gains or losses under this paragraph if such amounts were properly taken into account (or allowable as a deduction) during the recognition period” for “treated as recognized built-in gains or losses under this paragraph”. - § 382(l)(3)(B)(i)(III): Pub. L. 101–239, § 7841(d)(11), substituted “incident to divorce),” for “incident to divorce,”. - § 382(l)(3)(C): Pub. L. 101–239, § 7304(d)(1), redesignated subpar. (D) as (C) and struck out former subpar. (C) which related to special rule for employee stock ownership plans. - § 382(l)(3)(C): Pub. L. 101–239, § 7815(h), substituted “For purposes of subclause (III),” for “for purposes of subclause (III),” in concluding provisions. - § 382(l)(3): Pub. L. 101–239, § 7304(d)(1), redesignated subpar. (D) as (C). ## § 384: Limitation on use of preacquisition losses to offset built-in gains - § 384(e)(1): Pub. L. 101–239 substituted “built-in gain” for “build-in gain”. ## § 385: Treatment of certain interests in corporations as stock or indebtedness - § 385(a): Pub. L. 101–239 inserted “(or as in part stock and in part indebtedness)” before period at end. ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(a)(28)(B)(ii)(II): Pub. L. 101–239, § 7811(h)(3), made technical correction to directory language of Pub. L. 100–647, § 1011B(j)(1), see 1988 Amendment note below. - § 401(a)(29): Pub. L. 101–239, § 7881(i)(4)(A), substituted “multiemployer plan) to which the requirements of section 412 apply” for “multiemployer plan)”. - § 401(a)(29): Pub. L. 101–239, § 7881(i)(1)(A), substituted “plan amendment and any other plan amendments adopted after December 22, 1987, and before such plan amendment” for “plan amendment”. - § 401(a)(30): Pub. L. 101–239, § 7811(g)(1), moved par. (30) from a position after the undesignated closing par. to a position immediately after par. (29). - § 401(h): Pub. L. 101–239, § 7311(a), inserted at end “In no event shall the requirements of paragraph (1) be treated as met if the aggregate actual contributions for medical benefits, when added to actual contributions for life insurance protection under the plan, exceed 25 percent of the total actual contributions to the plan (other than contributions to fund past service credits) after the date on which the account is established.” - § 401(k)(4)(B): Pub. L. 101–239, § 7816(l), amended Pub. L. 100–647, § 6071(b)(2), see 1988 Amendment note below. ## § 402: Taxability of beneficiary of employees’ trust - § 402(e): Pub. L. 101–239, § 7811(i)(13), added par. (7). - § 402(g)(3): Pub. L. 101–239, § 7811(g)(2), inserted “involving a one-time irrevocable election” after “similar arrangement” in last sentence. ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(g)(1): Pub. L. 101–239, § 7841(b)(1), inserted “4041(b),” after “under section”. - § 404(k): Pub. L. 101–239, § 7302(a), amended subsec. (k) generally, substituting “Deduction for dividends paid on certain employer securities” for “Dividends paid deductions” in heading and pars. (1) to (6) for former pars. (1) and (2) and concluding provisions. ## § 406: Employees of foreign affiliates covered by section 3121(l) agreements - § 406(a): Pub. L. 101–239, § 10201(b)(1), substituted “3121(l)(6)” for “3121(l)(8)”. - § 406(b)(1)(A): Pub. L. 101–239, § 7831(f), made technical correction to Pub. L. 99–514, § 1114(b)(9)(A), see 1986 Amendment note below. - § 406(c): Pub. L. 101–239, § 7811(g)(3), substituted “purposes of limitation” for “purposes limitation” in heading. - § 406(c): Pub. L. 101–239, § 10201(b)(2), substituted “3121(l)(6)(B)” for “3121(l)(8)(B)”. ## § 407: Certain employees of domestic subsidiaries engaged in business outside the United States - § 407(b)(1)(A): Pub. L. 101–239, § 7831(f), made technical correction to Pub. L. 99–514, § 1114(b)(9)(B), see 1986 Amendment note below. - § 407(c): Pub. L. 101–239, § 7811(g)(3), substituted “purposes of limitation” for “purposes limitation” in heading. ## § 408: Individual retirement accounts - § 408(a)(6), § 408(b)(3): Pub. L. 101–239, § 7811(m)(7), struck out “(without regard to subparagraph (C)(ii) thereof)” after “section 401(a)(9)”. - § 408(d)(6): Pub. L. 101–239, § 7841(a)(1), substituted “his spouse or former spouse under a divorce or separation instrument described in subparagraph (A) of section 71(b)(2)” for “his former spouse under a divorce decree or under a written instrument incident to such divorce”. ## § 409: Qualifications for tax credit employee stock ownership plans - § 409(l)(5): Pub. L. 101–239, § 7811(h)(1), substituted “the second sentence” for “the last sentence”. - § 409(n)(1): Pub. L. 101–239, § 7304(a)(2)(A)(i), struck out “or section 2057” after “section 1042” in two places in introductory provisions. - § 409(n)(1)(A)(i): Pub. L. 101–239, § 7304(a)(2)(A)(ii), struck out “or any decedent if the executor of the estate of such decedent makes a qualified sale to which section 2057 applies” after “employer securities,”. - § 409(n)(1)(A)(ii): Pub. L. 101–239, § 7304(a)(2)(A)(iii), struck out “or the decedent” after “the taxpayer”. - § 409(n)(2)(C)(i), § 409(n)(3)(A)(ii): Pub. L. 101–239, § 7304(a)(2)(B), struck out “or section 2057” after “section 1042”. ## § 410: Minimum participation standards - § 410(a)(2): Pub. L. 101–239 struck out comma before period at end. ## § 411: Minimum vesting standards - § 411(a)(3)(G): Pub. L. 101–239, § 7861(a)(5)(A), added subpar. (G). - § 411(a)(4)(A): Pub. L. 101–239, § 7861(a)(6)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “years of service before age 18, except that in the case of a plan which does not satisfy subparagraph (A) or (B) of paragraph (2), the plan may not disregard any such year of service during which the employee was a participant;”. - § 411(a)(7)(D): Pub. L. 101–239, § 7881(m)(1)(D), added subpar. (D). - § 411(a)(8)(B): Pub. L. 101–239, § 7871(b)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the latest of— - § 411(b)(2)(B): Pub. L. 101–239, § 7871(a)(1), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “Disregard of subsidized portion of early retirement benefit.—A plan shall not be treated as failing to meet the requirements of subparagraph (A) solely because the subsidized portion of any early retirement benefit is disregarded in determining benefit accruals.” - § 411(b)(2)(C), § 411(b)(2): Pub. L. 101–239, § 7871(a)(1), (2), redesignated subpar. (D) as (C) and substituted “this paragraph” for “this subparagraph”. Former subpar. (C) redesignated (B). - § 411(c)(2)(B): Pub. L. 101–239, § 7881(m)(1)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: - § 411(c)(2)(C)(iii): Pub. L. 101–239, § 7881(m)(1)(A), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “interest on the sum of the amounts determined under clauses (i) and (ii) compounded annually at the rate of 120 percent of the Federal mid-term rate (as in effect under section 1274 for the 1st month of a plan year) from the beginning of the first plan year to which subsection (a)(2) applies (by reason of the applicable effective date) to the date upon which the employee would attain normal retirement age.” - § 411(c)(2): Pub. L. 101–239, § 7881(m)(1)(C), struck out subpar. (E) which read as follows: “Limitation.—The accrued benefit derived from employee contributions shall not exceed the greater of— ## § 412: Minimum funding standards - § 412(b): Pub. L. 101–239, § 7881(d)(1)(A), struck out “for purposes of this section and for purposes of determining current liability,” before “the interest rate” in introductory provisions. - § 412(c): Pub. L. 101–239, § 7881(a)(6)(A), substituted “Annual” for “3-year” in heading and “every year” for “every 3 years” in text. - § 412(c): Pub. L. 101–239, § 7881(b)(1)(A), substituted “Defined benefit plans” for “Plans” in heading and “defined benefit plan other” for “plan other” in introductory provisions. - § 412(c): Pub. L. 101–239, § 7881(b)(2)(A), substituted “Other” for “Multiemployer” in heading and “plan not described in subparagraph (A)” for “multiemployer plan” in text. - § 412(d)(1): Pub. L. 101–239, § 7881(b)(6)(A)(ii), substituted “costs (including adjustments under subsection (b)(5)(B))” for “costs”. - § 412: Pub. L. 101–239, § 7881(c)(1), substituted “for benefit liabilities” for “the benefit liabilities”. - § 412: Pub. L. 101–239, § 7881(a)(1)(A), substituted “reducing (but not below zero)” for “reducing”. - § 412: Pub. L. 101–239, § 7881(a)(2)(A), substituted “liability and the unamortized portion of the unfunded existing benefit increase liability” for “liability”. - § 412: Pub. L. 101–239, § 7881(a)(3)(A), substituted “the first plan year beginning after December 31, 1988” for “October 17, 1987”. - § 412: Pub. L. 101–239, § 7881(a)(4)(A)(i), added subcl. (III). - § 412: Pub. L. 101–239, § 7881(a)(4)(A)(ii), added cl. (iv). - § 412: Pub. L. 101–239, § 7881(a)(5)(A)(i), struck out “reduced by any credit balance in the funding standard account” after “under subsection (c)(2)”. - § 412: Pub. L. 101–239, § 7881(a)(5)(A)(ii), added subpar. (E). - § 412: Pub. L. 101–239, § 7881(b)(3)(A), substituted “defined benefit plan (other than” for “plan (other than” in introductory provisions. - § 412: Pub. L. 101–239, § 7881(b)(6)(A)(i), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the rate under subsection (b)(5).” - § 412: Pub. L. 101–239, § 7881(b)(4)(A), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “In the case of a plan with any unpredictable contingent event benefit liabilities— ## § 414: Definitions and special rules - § 414(n)(3)(C): Pub. L. 101–239, § 7813(b), amended directory language of Pub. L. 100–647, § 3011(b)(4), see 1988 Amendment note below. - § 414(p)(10): Pub. L. 101–239, § 7811(m)(5), inserted “section” before “403(b)”. - § 414(p)(11): Pub. L. 101–239, § 7841(a)(2), added par. (11) and redesignated former par. (11) as (12). - § 414(t)(2): Pub. L. 101–239, § 7813(b), amended directory language of Pub. L. 100–647, § 3011(b)(5), see 1988 Amendment note below. ## § 415: Limitations on benefits and contribution under qualified plans - § 415(c)(6): Pub. L. 101–239 substituted “Special rule for employee stock ownership plans” for “Special limitation for employee stock ownership plan” in heading and amended text generally, substituting introductory provisions and subpars. (A) and (B) for former subpars. (A) to (C). ## § 417: Definitions and special rules for purposes of minimum survivor annuity requirements - § 417(a)(3)(B)(ii): Pub. L. 101–239 added sentence at end and struck out former subcl. (V) which read as follows: “A reasonable period after separation from service in case of a participant who separates before attaining age 35.” ## § 424: Definitions and special rules - § 424(c)(1): Pub. L. 101–239 made technical correction to Pub. L. 100–647, § 1018(l)(2), see 1988 Amendment note below. ## § 453A: Special rules for nondealers - § 453A(b)(2)(B): Pub. L. 101–239, § 7821(a)(1), substituted “such obligations held by the taxpayer” for “obligations of the taxpayer described in paragraph (1)”. - § 453A(b)(3): Pub. L. 101–239, § 7815(g), substituted “Exception for personal use and farm property” for “Exception for farm property” in heading and amended text generally. Prior to amendment, text read as follows: “An installment obligation shall not be treated as described in paragraph (1) if it arises from the disposition of any property used or produced in the trade or business of farming (within the meaning of section 2032A(e)(4) or (5).” - § 453A(b)(3): Pub. L. 101–239, § 7812(c)(2), substituted “(5)).” for “(5).” - § 453A(c)(5), § 453A(c)(6): Pub. L. 101–239, § 7821(a)(4)(B), added par. (5) and redesignated former par. (5) as (6). - § 453A(d)(1)(B): Pub. L. 101–239, § 7821(a)(3), substituted “the time the proceeds” for “the proceeds”. - § 453A(d)(2)(B): Pub. L. 101–239, § 7821(a)(2), substituted “the later of the times referred to in subparagraph (A) or (B) of paragraph (1)” for “such secured indebtedness was incurred”. ## § 457: Deferred compensation plans of State and local governments and tax-exempt organizations - § 457(d)(1)(A)(iii): Pub. L. 101–239, § 7811(g)(4), substituted “, and” for period at end. - § 457(d)(2): Pub. L. 101–239, § 7811(g)(5), inserted “and” at end. - § 457(e)(13): Pub. L. 101–239, § 7816(j), substituted “Special rule for churches” for “Exception for church plans” in heading and amended text generally. Prior to amendment, text read as follows: “The term ‘eligible deferred compensation plan’ shall not include a plan maintained by a church for church employees. For purposes of this paragraph, the term ‘church’ has the meaning given such term by section 3121(w)(3)(A), including a qualified church-controlled organization (as defined in section 3121(w)(3)(B)).” ## § 460: Special rules for long-term contracts - § 460(a): Pub. L. 101–239, § 7621(a), substituted “Requirement that percentage of completion method be used” for “Percentage of completion-capitalized cost method” in heading and amended text generally. Prior to amendment, text read as follows: - § 460(a): Pub. L. 101–239, § 7811(e)(1), inserted “(or, with respect to any amount properly taken into account after completion of the contract, when such amount is so properly taken into account)” after “any long-term contract”. - § 460(b)(1): Pub. L. 101–239, § 7621(c)(2)(A), substituted “paragraph (3)” for “paragraph (4)”. - § 460(b)(1): Pub. L. 101–239, § 7621(c)(2)(B), which directed the amendment of par. (1) by substituting “paragraph (2)” for “paragraph (3)”, was executed by making the substitution in subpar. (B) and concluding provisions to reflect the probable intent of Congress. - § 460(b)(1): Pub. L. 101–239, § 7621(c)(1), redesignated par. (2) as (1) and struck out former par. (1) which read as follows: “Subsection (a) not to apply where percentage of completion method used.—Subsection (a) shall not apply to any long-term contract with respect to which amounts includible in gross income are determined under the percentage of completion method.” - § 460(b)(2): Pub. L. 101–239, § 7621(c)(1), redesignated par. (3) as (2). Former par. (2) redesignated (1). - § 460(b)(2): Pub. L. 101–239, § 7811(e)(4), (6), inserted two sentences at end. - § 460(b)(2)(B): Pub. L. 101–239, § 7811(e)(2), substituted “any amount properly taken into account” for “any amount received or accrued” and “is so properly taken into account” for “is so received or accrued”. - § 460(b)(3): Pub. L. 101–239, § 7621(c)(1), redesignated par. (4) as (3). Former par. (3) redesignated (2). - § 460(b)(3): Pub. L. 101–239, § 7811(e)(3), in concluding provisions, substituted “any amount properly taken into account” for “any amount received or accrued” and “such amount was properly taken into account” for “such amount was received or accrued”. - § 460(b)(3)(B): Pub. L. 101–239, § 7621(c)(3), substituted “Paragraph (1)(B)” for “Paragraph (2)(B) and subsection (a)(2)” in introductory provisions. - § 460(b)(4): Pub. L. 101–239, § 7621(c)(1), redesignated par. (5) as (4). Former par. (4) redesignated (3). - § 460(b)(4)(A)(i): Pub. L. 101–239, § 7621(c)(4)(A), substituted “paragraph (2)” for “paragraph (3)”. - § 460(b)(4)(A)(ii): Pub. L. 101–239, § 7621(c)(4)(B), substituted “paragraph (2)(B)” for “paragraph (3)(B)” in introductory provisions. - § 460(b)(4)(A)(ii)(I): Pub. L. 101–239, § 7621(c)(4)(C), substituted “paragraph (2)(A)” for “paragraph (3)(A)”. - § 460(b)(4)(A)(iii): Pub. L. 101–239, § 7621(c)(4)(A), substituted “paragraph (2)” for “paragraph (3)” in two places. - § 460(b)(5): Pub. L. 101–239, § 7621(b), added par. (5). - § 460(b)(5): Pub. L. 101–239, § 7621(c)(1), redesignated former par. (5) as (4). - § 460(e)(2): Pub. L. 101–239, § 7811(e)(5), added subpar. (C). - § 460(e): Pub. L. 101–239, § 7621(c)(5), inserted introductory provisions and struck out former introductory provisions which read as follows: “In the case of any residential construction contract which is not a home construction contract, subsection (a) shall be applied—”. - § 460(e): Pub. L. 101–239, § 7815(e)(1)(A), substituted “activities referred to in paragraph (4) with respect to” for “the building, construction, reconstruction, or rehabilitation of”. - § 460(e): Pub. L. 101–239, § 7815(e)(1)(B), added cl. (i) and struck out former cl. (i) which read as follows: “dwelling units contained in buildings containing 4 or fewer dwelling units, and”. ## § 461: General rule for taxable year of deduction - § 461(i)(3)(C): Pub. L. 101–239, as amended by Pub. L. 104–188, § 1704(t)(24), substituted “section 6662(d)(2)(C)(ii)” for “section 6661(b)(2)(C)(ii)”. ## § 469: Passive activity losses and credits limited - § 469(i)(3)(B), § 469(i)(3)(C): Pub. L. 101–239 added subpars. (B) and (C) and struck out former subpars. (B) and (C) which read as follows: - § 469(i)(3)(D), § 469(i)(3)(E): Pub. L. 101–239 added subpar. (D) and redesignated former subpar. (D) as (E). ## § 514: Unrelated debt-financed income - § 514(c)(9)(E), § 514(c)(9)(F): Pub. L. 101–239 redesignated the subpar. (E), relating to special rules for organizations described in section 501(c)(25), as (F). ## § 563: Rules relating to dividends paid after close of taxable year - § 563(c): Pub. L. 101–239, § 7401(b)(1), added subsec. (c). Former subsec. (c) redesignated (d). - § 563: Pub. L. 101–239, § 7401(b)(2), substituted “subsection (a), (b), or (c)” for “subsection (a) or (b)”. - § 563: Pub. L. 101–239, § 7401(b)(1), redesignated former subsec. (c) as (d). ## § 597: Treatment of transactions in which Federal financial assistance provided - § 597(b)(2): Pub. L. 101–239 substituted “in connection with such assistance” for “to reflect such treatment”. ## § 642: Special rules for credits and deductions - § 642(g): Pub. L. 101–239 inserted after first sentence “Rules similar to the rules of the preceding sentence shall apply to amounts which may be taken into account under 2621(a)(2) or 2622(b).” ## § 643: Definitions applicable to subparts A, B, C, and D - § 643(a)(6)(A): Pub. L. 101–239, § 7811(f)(1), substituted “section 265(a)(1)” for “section 265(1)”. - § 643(a)(6)(C): Pub. L. 101–239, § 7811(b)(1), struck out “(i)” after “such a trust,” and “, and (ii) the deduction under section 1202 (relating to deduction for excess of capital gains over capital losses) shall not be taken into account” before period at end. - § 643(a)(6): Pub. L. 101–239, § 7811(b)(2), struck out subpar. (D) which read as follows: “Effective for distributions made in taxable years beginning after December 31, 1975, the undistributed net income of each foreign trust for each taxable year beginning on or before December 31, 1975, remaining undistributed at the close of the last taxable year beginning on or before December 31, 1975, shall be redetermined by taking into account the deduction allowed by section 1202.” ## § 691: Recipients of income in respect of decedents - § 691(c): Pub. L. 101–239 substituted “paragraph (1)(C)” for “paragraph (1)(D)”. ## § 704: Partner’s distributive share - § 704(c): Pub. L. 101–239 amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Under regulations prescribed by the Secretary, income, gain, loss, and deduction with respect to property contributed to the partnership by a partner shall be shared among partners so as to take account of the variation between the basis of the property to the partnership and its fair market value at the time of contribution. Under regulations prescribed by the Secretary, rules similar to the rules of the preceding sentence shall apply to contributions by a partner (using the cash receipts and disbursements method of accounting) of accounts payable and other accrued but unpaid items.” ## § 842: Foreign companies carrying on insurance business - § 842(c): Pub. L. 101–239 substituted “yields” for “yeilds” in heading. ## § 852: Taxation of regulated investment companies and their shareholders - § 852(b)(9): Pub. L. 101–239, § 7204(c)(1), added par. (9). - § 852(f): Pub. L. 101–239, § 7204(b)(1), added subsec. (f). ## § 860G: Other definitions and special rules - § 860G(a)(3): Pub. L. 101–239 substituted “subparagraph (A)” for “this subparagraph” in last sentence. ## § 861: Income from sources within the United States - § 861(a)(6): Pub. L. 101–239, § 7811(i)(2), substituted “865(i)(1)” for “865(h)(1)”. - § 861(e): Pub. L. 101–239, § 7841(d)(9), substituted “section 862(a)” for “section 826(a)” in introductory provisions. ## § 862: Income from sources without the United States - § 862(a)(6): Pub. L. 101–239 substituted “865(i)(1)” for “865(h)(1)”. ## § 863: Special rules for determining source - § 863(b)(2), § 863(b)(3): Pub. L. 101–239 substituted “865(i)(1)” for “865(h)(1)”. ## § 864: Definitions and special rules - § 864(f): Pub. L. 101–239 added subsec. (f). ## § 872: Gross income - § 872(b)(7): Pub. L. 101–239 added par. (7). ## § 883: Exclusions from gross income - § 883(a)(4): Pub. L. 101–239, § 7811(i)(8)(D), substituted “(5), (6), and (7)” for “(5) and (6)”. - § 883(a)(5): Pub. L. 101–239, § 7811(i)(10), added par. (5). ## § 887: Imposition of tax on gross transportation income of nonresident aliens and foreign corporations - § 887(b)(1): Pub. L. 101–239, § 7811(i)(8)(B), substituted “paragraphs (2) and (3)” for “paragraph (2)”. - § 887(b)(3): Pub. L. 101–239, § 7811(i)(8)(A), added par. (3). Former par. (3) redesignated (4). - § 887(b)(4): Pub. L. 101–239, § 7811(i)(8)(A), (9), redesignated former par. (3) as (4) and substituted “United States source gross transportation income” for “transportation income” in introductory provisions and in subpar. (A). ## § 898: Taxable year of certain foreign corporations - Enacted 26 U.S.C. § 898. ## § 904: Limitation on credit - § 904(d)(1): Pub. L. 101–239, § 7811(i)(1), substituted “interest or carrying charges (as defined in section 927(d)(1)) derived from a transaction which results in foreign trade income (as defined in section 923(b))” for “qualified interest and carrying charges (as defined in section 245(c))”. - § 904(i), § 904(j): Pub. L. 101–239, § 7402(a), added subsec. (i) and redesignated former subsec. (i) as (j). ## § 953: Insurance income - § 953(d)(3): Pub. L. 101–239 substituted “for purposes of section 1503(d) without regard to paragraph (2)(B) thereof” for “(as defined in section 1503(d))”. ## § 954: Foreign base company income - § 954(c)(3)(A): Pub. L. 101–239, § 7811(i)(3)(C), inserted at end “To the extent provided in regulations, payments made by a partnership with 1 or more corporate partners shall be treated as made by such corporate partners in proportion to their respective interests in the partnership.” - § 954(c)(3)(A)(i): Pub. L. 101–239, § 7811(i)(3)(A), as amended by Pub. L. 104–188, substituted “is a corporation created” for “is created” after “person which (I)”. - § 954(c)(3)(A)(ii): Pub. L. 101–239, § 7811(i)(3)(B), substituted “from a corporation which is a related person” for “from a related person”. ## § 988: Treatment of certain foreign currency transactions - § 988(a): Pub. L. 101–239 inserted introductory provision “Notwithstanding any other provision of this chapter—”. ## § 995: Taxation of DISC income to shareholders - § 995(g): Pub. L. 101–239 substituted “section 511 (or any other person otherwise subject to tax under section 511)” for “section 511” in introductory provisions. ## § 1031: Exchange of real property held for productive use or investment - § 1031(f), § 1031(g), § 1031(h): Pub. L. 101–239 added subsecs. (f) to (h). ## § 1042: Sales of stock to employee stock ownership plans or certain cooperatives - § 1042(b)(4): Pub. L. 101–239 added par. (4). ## § 1059: Corporate shareholder’s basis in stock reduced by nontaxed portion of extraordinary dividends - § 1059(f), § 1059(g): Pub. L. 101–239 added subsecs. (f) and (g) and struck out former subsec. (f) which read as follows: “Regulations.—The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations providing for the application of this section in the case of stock dividends, stock splits, reorganizations, and other similar transactions and in the case of stock held by pass-thru entities.” ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a)(2)(C): Pub. L. 101–239, § 7622(b)(2)(A)[(d)(2)(A)], substituted “193, or 1253(d)(2) or (3)” for “or 193”. - § 1245(a)(3): Pub. L. 101–239, § 7622(b)(2)(B)[(d)(2)(B)], substituted “section 185 or 1253(d)(2) or (3)” for “section 185” in introductory provisions. ## § 1250: Gain from dispositions of certain depreciable realty - § 1250(b)(5)(A): Pub. L. 101–239, § 7831(b)(1), substituted “of property to which section 168 applies” for “of recovery property”. - § 1250(b)(5)(B): Pub. L. 101–239, § 7831(b)(2), substituted “to which section 168 does not apply” for “which is not recovery property”. ## § 1253: Transfers of franchises, trademarks, and trade names - § 1253(d)(1): Pub. L. 101–239, § 7622(a), substituted “serial payments” for “payments” in heading and amended text generally. Prior to amendment, text read as follows: “Amounts paid or incurred during the taxable year on account of a transfer, sale, or other disposition of a franchise, trademark, or trade name which are contingent on the productivity, use, or disposition of the franchise, trademark, or trade name transferred shall be allowed as a deduction under section 162(a) (relating to trade or business expenses).” - § 1253(d)(2): Pub. L. 101–239, § 7622(b), designated existing provisions as subpar. (A), inserted subpar. heading, redesignated former subpars. (A) to (C) as cls. (i) to (iii), respectively, and former cls. (i) and (ii) of former subpar. (B) as subcls. (I) and (II), respectively, of cl. (ii), and added subpar. (B). - § 1253(d)(3), § 1253(d): Pub. L. 101–239, § 7622(c), added pars. (3) to (5). ## § 1274: Determination of issue price in the case of certain debt instruments issued for property - § 1274(b)(3)(B)(i): Pub. L. 101–239 substituted “section 6662(d)(2)(C)(ii)” for “section 6661(b)(2)(C)(ii)”. ## § 1298: Special rules - § 1298(b)(5): Pub. L. 101–239, § 7811(i)(4)(A), substituted “where stock held” for “where held” in heading. - § 1298(b)(5)(A): Pub. L. 101–239, § 7811(i)(4)(C), substituted “treated as a disposition by, or distribution to” for “treated as a disposition to” in concluding provisions. - § 1298(b)(5)(A)(ii): Pub. L. 101–239, § 7811(i)(4)(B), substituted “any distribution of” for “any disposition of”. ## § 1361: S corporation defined - § 1361(b)(2)(B): Pub. L. 101–239 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “a financial institution which is a bank (as defined in section 585(a)(2)) or to which section 593 applies,”. ## § 1366: Pass-thru of items to shareholders - § 1366(f)(2): Pub. L. 101–239 substituted “Treatment of tax imposed on built-in gains” for “Reduction in pass-thru for tax imposed on built-in gains” in heading and amended text generally. Prior to amendment, text read as follows: “If any tax is imposed under section 1374 for any taxable year on an S corporation, for purposes of subsection (a), the amount of each recognized built-in gain (within the meaning of section 1374) for such taxable year shall be reduced by its proportionate share of such tax.” ## § 1374: Tax imposed on certain built-in gains - § 1374(b)(3)(B): Pub. L. 101–239, § 7811(c)(8), inserted at end “A similar rule shall apply in the case of the minimum tax credit under section 53 to the extent attributable to taxable years for which the corporation was a C corporation.” - § 1374(d)(2)(A)(i): Pub. L. 101–239, § 7811(c)(4), struck out “(except as provided in subsection (b)(2))” after “taxable year if”. - § 1374(d)(5)(B): Pub. L. 101–239, § 7811(c)(5)(B)(i), inserted “(determined without regard to any carryover)” after “during the recognition period”. - § 1374(d)(5)(C): Pub. L. 101–239, § 7811(c)(5)(B)(ii), substituted “which would be treated as recognized built-in gains or losses under this paragraph if such amounts were properly taken into account (or allowable as a deduction) during the recognition period” for “treated as recognized built-in gains or losses under this paragraph”. ## § 1402: Definitions - § 1402(g)(3): Pub. L. 101–239 substituted “to apply” for “not to apply” in heading and “shall apply” for “shall not apply” in text. ## § 1446: Withholding of tax on foreign partners’ share of effectively connected income - § 1446(b)(2)(B): Pub. L. 101–239, § 7811(i)(6)(A), substituted “section 11(b)(1)” for “section 11(b)”. - § 1446(d)(2): Pub. L. 101–239, § 7811(i)(6)(B), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “A foreign partner’s share of any withholding tax paid by the partnership under this section shall be treated as distributed to such partner by such partnership on the last day of the partnership’s taxable year (for which such tax was paid).” - § 1446(f): Pub. L. 101–239, § 7811(i)(6)(C), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section, including regulations providing for the application of this section in the case of publicly traded partnerships.” ## § 1463: Tax paid by recipient of income - § 1463: Pub. L. 101–239 amended section generally. Prior to amendment, section read as follows: “If any tax required under this chapter to be deducted and withheld is paid by the recipient of the income, it shall not be re-collected from the withholding agent; nor in cases in which the tax is so paid shall any penalty be imposed on or collected from the recipient of the income or the withholding agent for failure to return or pay the same, unless such failure was fraudulent and for the purpose of evading payment.” ## § 1503: Computation and payment of tax - § 1503(e)(2)(A)(ii): Pub. L. 101–239, § 7821(c), substituted “another corporation which is or was a member” for “another member”. - § 1503(e)(4): Pub. L. 101–239, § 7207(a), added par. (4). - § 1503(f): Pub. L. 101–239, § 7201(a), added subsec. (f). ## § 2002: Liability for payment - § 2002: Pub. L. 101–239 substituted “The” for “Except as provided in section 2210, the”. ## § 2056: Bequests, etc., to surviving spouse - § 2056(b)(7)(C): Pub. L. 101–239, § 7816(q), inserted “included in the gross estate of the decedent under section 2039” after “an annuity”. - § 2056(d)(2)(B): Pub. L. 101–239, § 7815(d)(4)(A), substituted “Special rule” for “Property passing outside of probate estate” in heading and amended text generally. Prior to amendment, text read as follows: “If any property passes from the decedent to the surviving spouse of the decedent outside of the decedent’s probate estate, for purposes of subparagraph (A), such property shall be treated as passing to such spouse in a qualified domestic trust if such property is transferred to such a trust before the day on which the return of the tax imposed by section 2001 is made.” - § 2056(d)(3): Pub. L. 101–239, § 7815(d)(6), substituted “this chapter” for “section 2001” in subpar. (C) and inserted “and without regard to subsection (d)(3) of such section” after “first decedent died” in concluding provisions. - § 2056(d)(4): Pub. L. 101–239, § 7815(d)(8), added par. (4) relating to reformations permitted. - § 2056(d)(4): Pub. L. 101–239, § 7815(d)(5), added par. (4) relating to special rule where resident spouse becomes citizen. ## § 2056A: Qualified domestic trust - § 2056A(a)(1): Pub. L. 101–239, § 7815(d)(7)(A)(i), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “the trust instrument requires that all trustees of the trust be individual citizens of the United States or domestic corporations,”. - § 2056A(a)(2), § 2056A(a)(3), § 2056A(a): Pub. L. 101–239, § 7815(d)(7)(A)(ii), redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which read as follows: “the surviving spouse of the decedent is entitled to all the income from the property in such trust, payable annually or at more frequent intervals,”. - § 2056A(b)(1)(A): Pub. L. 101–239, § 7815(d)(7)(C), struck out “other than a distribution of income required under subsection (a)(2)” after “qualified domestic trust”. - § 2056A(b)(2)(B)(ii): Pub. L. 101–239, § 7815(d)(11), inserted “(with interest)” after “credit or refund”. - § 2056A(b)(2)(C): Pub. L. 101–239, § 7815(d)(12), added subpar. (C). - § 2056A(b)(3): Pub. L. 101–239, § 7815(d)(7)(B), added par. (3). Former par. (3) redesignated (4). - § 2056A(b)(4): Pub. L. 101–239, § 7815(d)(7)(D), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “If any person other than an individual citizen of the United States or a domestic corporation becomes a trustee of a qualified domestic trust (or such trust ceases to meet the requirements of subsection (a)(3)), the tax imposed by paragraph (1) shall apply as if the surviving spouse died on the date on which such person became such a trustee or the date of such cessation, as the case may be.” - § 2056A(b)(4): Pub. L. 101–239, § 7815(d)(7)(B), redesignated par. (3) as (4). Former par. (4) redesignated (5). - § 2056A(b)(5): Pub. L. 101–239, § 7815(d)(15), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “The estate tax imposed by paragraph (1) shall be due and payable on the 15th day of the 4th month following the calendar year in which the taxable event occurs.” - § 2056A(b)(5): Pub. L. 101–239, § 7815(d)(7)(B), redesignated par. (4) as (5). Former par. (5) redesignated (6). - § 2056A(b)(6), § 2056A(b)(7), § 2056A(b)(8), § 2056A(b)(9): Pub. L. 101–239, § 7815(d)(7)(B), redesignated pars. (5) to (8) as (6) to (9), respectively. - § 2056A(b)(10), § 2056A(b)(11), § 2056A(b)(12), § 2056A(b)(13): Pub. L. 101–239, § 7815(d)(9), added pars. (10) to (13). - § 2056A(c)(2): Pub. L. 101–239, § 7815(d)(10), substituted “Except as provided in regulations, the term” for “The term”. - § 2056A(e): Pub. L. 101–239, § 7815(d)(13), added subsec. (e). ## § 2101: Tax imposed - § 2101(b): Pub. L. 101–239 inserted at end “For purposes of the preceding sentence, there shall be appropriate adjustments in the application of section 2001(c)(3) to reflect the difference between the amount of the credit provided under section 2102(c) and the amount of the credit provided under section 2010.” ## § 2106: Taxable estate - § 2106(a)(3): Pub. L. 101–239 struck out “allowed where spouse is citizen” after “deduction” in heading. ## § 2503: Taxable gifts - § 2503(f), § 2503(g): Pub. L. 101–239 redesignated subsec. (f), relating to treatment of certain loans of artworks, as (g). ## § 2523: Gift to spouse - § 2523(a): Pub. L. 101–239, § 7815(d)(2), struck out “who is a citizen or resident” after “Where a donor”. - § 2523(i)(2): Pub. L. 101–239, § 7815(d)(1)(A), substituted “which are made by the donor to such spouse and with respect to which a deduction would be allowable under this section but for paragraph (1)” for “made by the donor to such spouse”. ## § 2642: Inclusion ratio - § 2642(b)(1), § 2642(b)(3): Pub. L. 101–239 substituted “a gift tax return filed on or before the date prescribed by section 6075(b)” for “a timely filed gift tax return required by section 6019” in introductory provisions. ## § 2654: Special rules - § 2654(a)(1): Pub. L. 101–239 inserted at end “The preceding shall be applied after any basis adjustment under section 1015 with respect to the transfer.” ## § 3121: Definitions - § 3121(l)(1): Pub. L. 101–239, § 10201(b)(3), substituted “paragraph (6)” for “paragraph (8)” in introductory provisions. - § 3121(l)(2): Pub. L. 101–239, § 10201(a)(1), inserted at end “Notwithstanding any other provision of this subsection, the period for which any such agreement is effective with respect to any foreign entity shall terminate at the end of any calendar quarter in which the foreign entity, at any time in such quarter, ceases to be a foreign affiliate as defined in paragraph (6).” - § 3121(l)(3): Pub. L. 101–239, § 10201(a)(2), (3), added par. (3) and struck out former par. (3) relating to termination of period by American employer. - § 3121(l)(4): Pub. L. 101–239, § 10201(a)(2), (4), redesignated par. (6) as (4) and struck out former par. (4) relating to termination of period by Secretary. - § 3121(l)(5): Pub. L. 101–239, § 10201(a)(2), (4), redesignated par. (7) as (5) and struck out former par. (5) relating to no renewal of agreement. - § 3121(l)(6), § 3121(l)(7), § 3121(l)(8), § 3121(l): Pub. L. 101–239, § 10201(a)(4), redesignated pars. (6) to (10) as (4) to (8), respectively. ## § 3127: Exemption for employers and their employees where both are members of religious faiths opposed to participation in Social Security Act programs - § 3127(a): Pub. L. 101–239, § 10204(b)(1)(B), substituted “the employees thereof” for “his employees” in concluding provisions. - § 3127(a)(1): Pub. L. 101–239, § 10204(b)(1)(A), inserted “(or, if the employer is a partnership, each partner therein)” after “an employer”. - § 3127(b): Pub. L. 101–239, § 10204(b)(1)(C), inserted “(or a partner)” after “an employer” in introductory provisions. - § 3127(c): Pub. L. 101–239, § 10204(b)(1)(D), substituted “the employees thereof” for “his employees” in introductory provisions. - § 3127(c)(1): Pub. L. 101–239, § 10204(b)(1)(E), inserted “(or, if the employer is a partnership, each partner therein)”. - § 3127(c)(2): Pub. L. 101–239, § 10204(b)(1)(F), substituted “such employer (or, if the employer is a partnership, any partner therein) or the employee involved does not meet” for “such employer or the employee involved ceases to meet” in cl. (A) and inserted “(or, if the employer is a partnership, any partner therein)” after “such employer” in cl. (B). ## § 3231: Definitions - § 3231(e)(1): Pub. L. 101–239, § 10207(b), inserted at end “Nothing in the regulations prescribed for purposes of chapter 24 (relating to wage withholding) which provides an exclusion from ‘wages’ as used in such chapter shall be construed to require a similar exclusion from ‘compensation’ in regulations prescribed for purposes of this chapter.” - § 3231(e)(1): Pub. L. 101–239, § 10206(a), substituted “(iii)” for “or (iii)” and inserted “, or (iv) any remuneration which would not (if chapter 21 applied to such remuneration) be treated as wages (as defined in section 3121(a)) by reason of section 3121(a)(5)”. - § 3231(e)(1): Pub. L. 101–239, § 10205(a), inserted “or death, except that this clause 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” before “, (ii) tips”. - § 3231(e)(9): Pub. L. 101–239, § 10206(b), added par. (9). - § 3231(e)(10): Pub. L. 101–239, § 10207(a), added par. (10). ## § 3401: Definitions - § 3401(a)(2): Pub. L. 101–239, § 7631(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “for agricultural labor (as defined in section 3121(g)); or”. - § 3401(h): Pub. L. 101–239, § 7631(b), added subsec. (h). ## § 4221: Certain tax-free sales - § 4221(c): Pub. L. 101–239 struck out “or 4083” after “4053(a)(6)”. ## § 4261: Imposition of tax - § 4261(c): Pub. L. 101–239 substituted “$6” for “$3”. ## § 4371: Imposition of tax - § 4371(2): Pub. L. 101–239 struck out “, unless the insurer is subject to tax under section 842(b)” after “or annuity contract”. ## § 4471: Imposition of tax - Enacted 26 U.S.C. § 4471. ## § 4472: Definitions - Enacted 26 U.S.C. § 4472. ## § 4611: Imposition of tax - § 4611(c)(2)(B): Pub. L. 101–239, § 7505(b), substituted “5 cents” for “1.3 cents”. - § 4611(f): Pub. L. 101–239, § 7505(a)(1), amended subsec. (f) generally, substituting pars. (1) and (2) for former pars. (1) general applicability, (2) commencement date, and (3) limit on tax of $300,000,000. ## § 4612: Definitions and special rules - § 4612(d): Pub. L. 101–239 inserted at end “The preceding sentence shall also apply to amounts paid by the taxpayer into the Trans-Alaska Pipeline Liability Fund to the extent of amounts transferred from such Fund into the Oil Spill Liability Trust Fund. Amounts may be transferred from the Trans-Alaska Pipeline Liability Fund into the Oil Spill Liability Trust Fund only to the extent the administrators of the Trans-Alaska Pipeline Liability Fund determine that such amounts are not needed to satisfy claims against such Fund.” ## § 4681: Imposition of tax - Enacted 26 U.S.C. § 4681. ## § 4682: Definitions and special rules - Enacted 26 U.S.C. § 4682. ## § 4978: Tax on certain dispositions by employee stock ownership plans and certain cooperatives - § 4978(b)(2): Pub. L. 101–239 substituted “determined as if such securities were disposed of—”, subpars. (A) to (D), and concluding provision for “(determined as if such securities were disposed of in the order described in section 4978A(e))”. ## § 4979A: Tax on certain prohibited allocations of qualified securities - § 4979A(b)(1): Pub. L. 101–239, § 7304(a)(2)(D)(i), struck out “or section 2057” after “section 1042”. - § 4979A(c): Pub. L. 101–239, § 7304(a)(2)(D)(ii), as amended by Pub. L. 104–188, struck out “or section 2057(d)” after “section 1042(b)(3)(B)” in concluding provisions. ## § 4980B: Failure to satisfy continuation coverage requirements of group health plans - § 4980B(f)(2)(B)(i): Pub. L. 101–239, § 6701(a)(1), as amended by Pub. L. 104–188, § 1704(t)(21), inserted at end “In the case of a qualified beneficiary who is determined, under title II or XVI of the Social Security Act, to have been disabled at the time of a qualifying event described in paragraph (3)(B), any reference in subclause (I) or (II) to 18 months with respect to such event is deemed a reference to 29 months, but only if the qualified beneficiary has provided notice of such determination under paragraph (6)(C) before the end of such 18 months.” - § 4980B(f)(2)(B)(i)(V): Pub. L. 101–239, § 7862(c)(5)(A), added subcl. (V). - § 4980B(f)(2)(B)(iv): Pub. L. 101–239, § 7862(c)(3)(C), substituted “entitlement” for “eligibility” in heading and inserted “which does not contain any exclusion or limitation with respect to any preexisting condition of such beneficiary” after “or otherwise)” in subcl. (I). - § 4980B(f)(2)(B)(v): Pub. L. 101–239, § 6701(a)(2), added cl. (v). - § 4980B(f)(2)(C): Pub. L. 101–239, § 7862(c)(4)(B), amended last sentence generally. Prior to amendment, last sentence read as follows: “If an election is made after the qualifying event, the plan shall permit payment for continuation coverage during the period preceding the election to be made within 45 days of the date of the election.” - § 4980B(f)(2)(C): Pub. L. 101–239, § 6701(b), inserted at end “In the case of an individual described in the last sentence of subparagraph (B)(i), any reference in clause (i) of this subparagraph to ‘102 percent’ is deemed a reference to ‘150 percent’ for any month after the 18th month of continuation coverage described in subclause (I) or (II) of subparagraph (B)(i).” - § 4980B(f)(6): Pub. L. 101–239, § 7891(d)(1)(B)(ii), inserted after and below subpar. (D) the following new flush sentence “The requirements of subparagraph (B) shall be considered satisfied in the case of a multiemployer plan in connection with a qualifying event described in paragraph (3)(B) if the plan provides that the determination of the occurrence of such qualifying event will be made by the plan administrator.” - § 4980B(f)(6): Pub. L. 101–239, § 7891(d)(1)(B)(i)(II), inserted “(or, in the case of a group health plan which is a multiemployer plan, such longer period of time as may be provided in the terms of the plan)” after “14 days” in last sentence. - § 4980B(f)(6)(B): Pub. L. 101–239, § 7891(d)(1)(B)(i)(I), inserted “(or, in the case of a group health plan which is a multiemployer plan, such longer period of time as may be provided in the terms of the plan)” after “30 days”. - § 4980B(f)(6)(C): Pub. L. 101–239, § 6701(c), inserted before period at end “and each qualified beneficiary who is determined, under title II or XVI of the Social Security Act, to have been disabled at the time of a qualifying event described in paragraph (3)(B) is responsible for notifying the plan administrator of such determination within 60 days after the date of the determination and for notifying the plan administrator within 30 days of the date of any final determination under such title or titles that the qualified beneficiary is no longer disabled”. - § 4980B(f)(7): Pub. L. 101–239, § 7862(c)(2)(B), substituted “the performance of services by the individual for 1 or more persons maintaining the plan (including as an employee defined in section 401(c)(1))” for “the individual’s employment or previous employment with an employer”. - § 4980B(f)(8): Pub. L. 101–239, § 7891(d)(2)(A), added par. (8). - § 4980B(g)(2): Pub. L. 101–239, § 6202(b)(3)(B), substituted “section 5000(b)(1)” for “section 162(i)”. ## § 4982: Excise tax on undistributed income of regulated investment companies - § 4982(b)(1)(A): Pub. L. 101–239 substituted “98 percent” for “97 percent”. ## § 5000: Certain group health plans - § 5000: Pub. L. 101–239, § 6202(b)(2)(A), struck out “large” after “Certain” in section catchline. - § 5000(a): Pub. L. 101–239, § 6202(b)(2)(B), substituted “group health plan” for “large group health plan” in two places. - § 5000(b): Pub. L. 101–239, § 6202(b)(2)(C), substituted “Group health plan and large” for “Large” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘large group health plan’ means a plan of, or contributed to by, an employer or employee organization (including a self-insured plan) to provide health care (directly or otherwise) to the employees, former employees, the employer, others associated or formerly associated with the employer in a business relationship, or their families, that covers employees of at least one employer that normally employed at least 100 employees on a typical business day during the previous calendar year.” - § 5000(c): Pub. L. 101–239, § 6202(b)(2)(C), substituted “group” for “large group” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘nonconforming large group health plan’ means a large group health plan that at any time during a calendar year does not comply with the requirements of section 1862(b)(4)(A)(i) of the Social Security Act.” ## § 5684: Penalties relating to the payment and collection of liquor taxes - § 5684(b): Pub. L. 101–239 substituted “6665” for “6662” in heading and “6665(a)” for “6662(a)” in text. ## § 5704: Exemption from tax - § 5704(c): Pub. L. 101–239 inserted “or to a manufacturer of tobacco products or cigarette papers and tubes if such articles are not put up in packages,” after “export warehouse,”. ## § 5761: Civil penalties - § 5761(a): Pub. L. 101–239, § 7721(c)(4), inserted “or part II of subchapter A of chapter 68” after “or 6653”. - § 5761(c): Pub. L. 101–239, § 7721(c)(5), substituted “6665” for “6662” in heading and “6665(a)” for “6662(a)” in text. ## § 6011: General requirement of return, statement, or list - § 6011(e): Pub. L. 101–239 substituted “magnetic media” for “magnetic tape” in heading and amended text generally, revising the content and structure of pars. (1) and (2). ## § 6013: Joint returns of income tax by husband and wife - § 6013(b)(5)(A): Pub. L. 101–239 substituted “part II of subchapter A of chapter 68” for “section 6653” in heading and in text. ## § 6018: Estate tax returns - § 6018: Pub. L. 101–239 struck out subsec. (c) which read as follows: ## § 6038: Information reporting with respect to certain foreign corporations and partnerships - § 6038(a)(1): Pub. L. 101–239, § 7712(a)(2), inserted before period at end “or which the Secretary determines to be appropriate to carry out the provisions of this title.” - § 6038(a)(4): Pub. L. 101–239, § 7712(a)(1), added par. (4). ## § 6038A: Information with respect to certain foreign-owned corporations - § 6038A(a): Pub. L. 101–239, § 7403(b), inserted before period at end “and such corporation shall maintain (in the location, in the manner, and to the extent prescribed in regulations) such records as may be appropriate to determine the correct treatment of transactions with related parties as the Secretary shall by regulations prescribe (or shall cause another person to so maintain such records)”. - § 6038A(a)(2): Pub. L. 101–239, § 7403(a)(1), amended par. (2) generally, substituting “is 25-percent foreign-owned,” for “is controlled by a foreign person,”. - § 6038A(c): Pub. L. 101–239, § 7403(a)(2), amended subsec. (c) generally, substituting pars. (1) to (6) for former pars. (1) to (3) defining “control”, “related party”, and “foreign person”. - § 6038A(d): Pub. L. 101–239, § 7403(c), inserted “or maintain records” after “information” in heading and amended text generally, making changes in substance and structure of pars. (1) to (3). - § 6038A(e), § 6038A(f): Pub. L. 101–239, § 7403(d), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 6043: Liquidating, etc., transactions - § 6043: Pub. L. 101–239, § 7208(b)(3)(B), substituted “Liquidating; etc., transactions” for “Returns regarding liquidation, dissolution, termination, or contraction” in section catchline. - § 6043(a): Pub. L. 101–239, § 7208(b)(3)(A), substituted “Corporate liquidating, etc., transactions” for “Corporations” in heading. - § 6043(c), § 6043(d): Pub. L. 101–239, § 7208(b)(1), added subsecs. (c) and (d) and struck out former subsec. (c) which read as follows: “Cross Reference.—For provisions relating to penalties for failure to file a return required by subsection (b), see section 6652(c).” ## § 6045: Returns of brokers - § 6045(e)(3), § 6045(e)(4): Pub. L. 101–239 redesignated par. (3), relating to whether seller’s financing was federally-subsidized indebtedness, as (4). ## § 6047: Information relating to certain trusts and annuity plans - § 6047(e), § 6047(f): Pub. L. 101–239 added subsec. (e) and redesignated former subsec. (e) as (f). ## § 6050H: Returns relating to mortgage interest received in trade or business from individuals - § 6050H(b)(2)(B): Pub. L. 101–239, § 7646(b)(1), as amended by Pub. L. 104–188, inserted “(other than points)” after “such interest”. ## § 6091: Place for filing returns or other documents - § 6091(b)(6): Pub. L. 101–239 inserted “section 4181 or” before “subtitle E”. ## § 6103: Confidentiality and disclosure of returns and return information - § 6103(a)(3): Pub. L. 101–239, § 6202(a)(1)(B)(i), inserted “(l)(12),” after “subsection (e)(1)(D)(iii),”. - § 6103(d)(1): Pub. L. 101–239, § 7841(d)(1), struck out “45,” after “32, 44,”. - § 6103(l)(12): Pub. L. 101–239, § 6202(a)(1)(A), added par. (12). - § 6103(p)(3)(A): Pub. L. 101–239, § 6202(a)(1)(B)(ii), substituted “(11), or (12)” for “or (11)”. - § 6103(p)(4): Pub. L. 101–239, § 6202(a)(1)(B)(v), inserted “or which receives any information under subsection (l)(12)(B) and which discloses any such information to any agent” after “address to any agency” in penultimate sentence. - § 6103(p)(4): Pub. L. 101–239, § 6202(a)(1)(B)(iii), substituted “(9), or (12) shall” for “or (9) shall” in introductory provisions. - § 6103(p)(4)(F)(ii): Pub. L. 101–239, § 6202(a)(1)(B)(iv), substituted “(11), or (12)” for “or (11)”. ## § 6157: Payment of Federal unemployment tax on quarterly or other time period basis - § 6157(a): Pub. L. 101–239 substituted “subsection (c)” for “subsections (c) and (d)” in last sentence. ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(h)(3), § 6213(h): Pub. L. 101–239 made technical correction to directory language of Pub. L. 100–647, § 1015(r)(3), see 1988 Amendment note below. ## § 6302: Mode or time of collection - § 6302(e): Pub. L. 101–239, § 7502(a), added subsec. (e). Former subsec. (e) redesignated (f). - § 6302(f): Pub. L. 101–239, § 7507(a), added subsec. (f). Former subsec. (f) redesignated (g). - § 6302(f): Pub. L. 101–239, § 7502(a), redesignated former subsec. (e) as (f). - § 6302(g): Pub. L. 101–239, § 7632(a), added subsec. (g). Former subsec. (g) redesignated (h). - § 6302(g): Pub. L. 101–239, § 7507(a), redesignated former subsec. (f) as (g). - § 6302(h): Pub. L. 101–239, § 7632(a), redesignated former subsec. (g) as (h). ## § 6420: Gasoline used on farms - § 6420(e)(2): Pub. L. 101–239 substituted “section 7602(a)” for “section 7602”. ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(g)(2): Pub. L. 101–239 substituted “section 7602(a)” for “section 7602”. ## § 6427: Fuels not used for taxable purposes - § 6427(f): Pub. L. 101–239, § 7812(a), made technical correction to directory language of Pub. L. 100–647, § 2001(d)(7)(C), see 1988 Amendment note below. - § 6427(i)(1): Pub. L. 101–239, § 7822(b)(1), substituted “subsection (a), (b), (c), (d), (e), (g), (h), (l), or (q) by any person” for “subsection (a), (b), (c), (d), (e),, (g), (h), or (l) by any person”. - § 6427(i)(2)(A)(i): Pub. L. 101–239, § 7822(b)(2), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “$1,000 or more is payable under subsections (a), (b), (d), (e), (g), (h), and or”. - § 6427(i)(2)(B): Pub. L. 101–239, § 7822(b)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “If the requirements of clause (ii) of subparagraph (A) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in the clause of subparagraph (A) the requirements of which are met by such person for such quarter.” - § 6427(j)(2): Pub. L. 101–239, § 7841(d)(20), substituted “section 7602(a)” for “section 7602”. - § 6427(p): Pub. L. 101–239, § 7822(b)(4), redesignated subsec. (q), relating to payments for taxes imposed by section 4041(d), as (p). - § 6427: Pub. L. 101–239, § 7501(b)(3), substituted “1991” for “1990” in pars. (2) and (3). - § 6427: Pub. L. 101–239, § 7822(b)(4), redesignated subsec. (q), relating to payments for taxes imposed by section 4041(d), as (p). ## § 6501: Limitations on assessment and collection - § 6501(n): Pub. L. 101–239 struck out “, 41(h),” after “section 40(f)”. ## § 6502: Collection after assessment - § 6502(a): Pub. L. 101–239 substituted “unenforceable” for “enforceable” in last sentence. ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(e)(2): Pub. L. 101–239 substituted “section 6651(a)(1) or 6653 or under part II of subchapter A of chapter 68” for “section 6651(a)(1), 6653, 6659, 6660, or 6661” in subpars. (A) and (B). ## § 6621: Determination of rate of interest - § 6621(c): Pub. L. 101–239 repealed subsec. (c) which related to attribution of interest on substantial underpayments to tax motivated transactions. ## § 6651: Failure to file tax return or to pay tax - § 6651(f): Pub. L. 101–239 added subsec. (f). ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(k): Pub. L. 101–239, § 7841(d)(5)(B), redesignated the subsec. (k), relating to alcohol and tobacco taxes, as (l). - § 6652(k): Pub. L. 101–239, § 7841(d)(5)(A), redesignated the subsection relating to information with respect to includible employee benefits as (k), see Codification note above. - § 6652(l): Pub. L. 101–239, § 7208(b)(2), added subsec. (l) and redesignated former subsec. (l) as (m). - § 6652(l): Pub. L. 101–239, § 7841(d)(5)(B), redesignated subsec. (k), relating to alcohol and tobacco taxes, as (l). - § 6652(m): Pub. L. 101–239, § 7208(b)(2), redesignated subsec. (l) as (m). ## § 6653: Failure to pay stamp tax - § 6653: Pub. L. 101–239 substituted “Failure to pay stamp tax” for “Additions to tax for negligence and fraud” in section catchline and amended text generally, substituting a single par. for former subsecs. (a) to (g). ## § 6654: Failure by individual to pay estimated income tax - § 6654(l)(1): Pub. L. 101–239, § 7811(j)(5), substituted “this section shall” for “this subsection shall”. - § 6654(l)(2)(B)(ii): Pub. L. 101–239, § 7811(j)(6), inserted before period at end “(or, if no will is admitted to probate, which is the trust primarily responsible for paying debts, taxes, and expenses of administration)”. ## § 6655: Failure by corporation to pay estimated income tax - § 6655(e)(1): Pub. L. 101–239, § 7822(a), substituted “under subsection (d)(1)” for “under section (d)(1)”. - § 6655(g)(4): Pub. L. 101–239, § 7209(a), added par. (4). ## § 6656: Failure to make deposit of taxes - § 6656: Pub. L. 101–239 substituted “taxes” for “taxes or overstatement of deposits” as section catchline and amended text generally, revising substance and structure. ## § 6662: Imposition of accuracy-related penalty on underpayments - Enacted 26 U.S.C. § 6662. ## § 6663: Imposition of fraud penalty - Enacted 26 U.S.C. § 6663. ## § 6664: Definitions and special rules - Enacted 26 U.S.C. § 6664. ## § 6665: Applicable rules - Enacted 26 U.S.C. § 6665. ## § 6672: Failure to collect and pay over tax, or attempt to evade or defeat tax - § 6672(a): Pub. L. 101–239, § 7721(c)(9), inserted “or part II of subchapter A of chapter 68” after “under section 6653”. - § 6672(b)(1): Pub. L. 101–239, § 7737(a), inserted at end “Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).” ## § 6673: Sanctions and costs awarded by courts - § 6673: Pub. L. 101–239 substituted “Sanctions and costs awarded by courts” for “Damages assessable for instituting proceedings before the Court primarily for delay, etc.” in section catchline and amended text generally, making changes in substance and structure of subsecs. (a) and (b). ## § 6694: Understatement of taxpayer’s liability by tax return preparer - § 6694(a): Pub. L. 101–239, § 7732(a), substituted “Understatements due to unrealistic positions” for “Negligent or intentional disregard of rules and regulations” in heading and amended text generally. Prior to amendment, text read as follows: “If any part of any understatement of liability with respect to any return or claim for refund is due to the negligent or intentional disregard of rules and regulations by any person who is an income tax return preparer with respect to such return or claim, such person shall pay a penalty of $100 with respect to such return or claim.” - § 6694(b): Pub. L. 101–239, § 7732(a), substituted “Willful or reckless conduct” for “Willful understatement of liability” in heading and amended text generally. Prior to amendment, text read as follows: “If any part of any understatement of liability with respect to any return or claim for refund is due to a willful attempt in any manner to understate the liability for a tax by a person who is an income tax return preparer with respect to such return or claim, such person shall pay a penalty of $500 with respect to such return or claim. With respect to any return or claim, the amount of the penalty payable by any person by reason of this subsection shall be reduced by the amount of the penalty paid by such person by reason of subsection (a).” - § 6694(c)(1): Pub. L. 101–239, § 7737(a), inserted at end “Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).” ## § 6695: Other assessable penalties with respect to the preparation of tax returns for other persons - § 6695(a), § 6695(b), § 6695(c): Pub. L. 101–239, § 7733(a)–(c), substituted “$50” for “$25” and inserted at end “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.” - § 6695(e): Pub. L. 101–239, § 7733(d), substituted “returns” for “return” in heading and amended text generally. Prior to amendment, text read as follows: “Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of— ## § 6700: Promoting abusive tax shelters, etc. - § 6700(a): Pub. L. 101–239, § 7734(a)(3), added concluding provision and struck out former concluding provision which read as follows: “shall pay a penalty equal to the greater of $1,000 or 20 percent of the gross income derived or to be derived by such person from such activity.” - § 6700(a)(1)(B): Pub. L. 101–239, § 7734(a)(1), inserted “(directly or indirectly)” after “participates”. - § 6700(a)(2): Pub. L. 101–239, § 7734(a)(2), inserted “or causes another person to make or furnish” after “makes or furnishes” in introductory provisions. ## § 6701: Penalties for aiding and abetting understatement of tax liability - § 6701(a)(1): Pub. L. 101–239, § 7735(a)(1), struck out “in connection with any matter arising under the internal revenue laws” after “other document”. - § 6701(a)(2): Pub. L. 101–239, § 7735(a)(2), inserted “(or has reason to believe)” after “who knows”. - § 6701(a)(3): Pub. L. 101–239, § 7735(a)(3), substituted “would result” for “will result”. - § 6701(f)(1): Pub. L. 101–239, § 7735(b)(2), substituted “paragraphs (2) and (3)” for “paragraph (2)”. - § 6701(f)(3): Pub. L. 101–239, § 7735(b)(1), added par. (3). ## § 6703: Rules applicable to penalties under sections 6700, 6701, and 6702 - § 6703(c)(1): Pub. L. 101–239, § 7737(a), inserted at end “Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).” - § 6703(c)(1): Pub. L. 101–239, § 7736(a), substituted “section 6700 or 6701” for “section 6700, 6701, or 6702”. - § 6703(c)(2): Pub. L. 101–239, § 7736(a), substituted “section 6700 or 6701” for “section 6700, 6701, or 6702”. ## § 6713: Disclosure or use of information by preparers of returns ## § 6721: Failure to file correct information returns - § 6721: Pub. L. 101–239 substituted “correct” for “certain” in section catchline and amended text generally, substituting subsecs. (a) to (e) for former subsec. (a) stating general rule and subsec. (b) relating to penalty in case of intentional disregard. ## § 6722: Failure to furnish correct payee statements - § 6722: Pub. L. 101–239 substituted “correct” for “certain” in section catchline and amended text generally, substituting subsecs. (a) to (c) for former subsec. (a) stating general rule and subsec. (b) relating to failure to notify partnership of exchange of partnership interest. ## § 6723: Failure to comply with other information reporting requirements - § 6723: Pub. L. 101–239 substituted “comply with other information reporting requirements” for “include correct information” in section catchline and amended text generally, substituting a single par. for former subsec. (a) stating general rule, subsec. (b) relating to penalty in case of intentional disregard, and subsec. (c) relating to coordination with former section 6676 of this title. ## § 6724: Waiver; definitions and special rules - § 6724: Pub. L. 101–239, § 7711(a), amended section generally, substituting subsecs. (a) to (d) for former subsec. (a) relating to reasonable cause waivers, subsec. (b) relating to payment of penalty, subsec. (c) relating to special rules for failure to file interest and dividend returns or statements, and subsec. (d) relating to definitions. - § 6724(d)(1)(B)(viii), § 6724(d)(1)(B)(ix), § 6724(d)(1)(B)(x), § 6724(d)(1)(B)(xi): Pub. L. 101–239, § 7811(c)(3), amended cls. (viii) to (xi) generally. Prior to amendment, cls. (viii) to (xi) read as follows: - § 6724(d)(2): Pub. L. 101–239, § 7813(a), struck out “or” after “insurance),” in subpar. (Q), substituted “tips), or” for “tips).” in subpar. (R), and redesignated subpar. (U) as (S). ## § 6863: Stay of collection of jeopardy assessments - § 6863(b)(3)(A)(iii): Pub. L. 101–239 made technical correction to Pub. L. 100–203, § 10713(b)(2)(E)(iii), see 1987 Amendment note below. ## § 6871: Claims for income, estate, gift, and certain excise taxes in receivership proceedings, etc. - § 6871: Pub. L. 101–239 substituted “or 44” for “44, or 45” in subsecs. (a), (b), and (c). ## § 7205: Fraudulent withholding exemption certificate or failure to supply information - § 7205(b): Pub. L. 101–239 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “If any individual willfully makes— ## § 7213: Unauthorized disclosure of information - § 7213(a)(2): Pub. L. 101–239 substituted “(10), or (12)” for “or (10)”. ## § 7216: Disclosure or use of information by preparers of returns - § 7216(b)(3): Pub. L. 101–239 inserted at end “Such regulations shall permit (subject to such conditions as such regulations shall provide) the disclosure or use of information for quality or peer reviews.” ## § 7407: Action to enjoin tax return preparers - § 7407(a): Pub. L. 101–239, § 7738(b), substituted “A civil” for “Except as provided in subsection (c), a civil”. - § 7407: Pub. L. 101–239, § 7738(a), struck out subsec. (c) relating to bonds to stay injunctions. ## § 7482: Courts of review - § 7482(c)(4): Pub. L. 101–239 substituted “penalties” for “damages” in heading and amended text generally. Prior to amendment, text read as follows: “The United States Court of Appeals and the Supreme Court shall have power to impose damages in any case where the decision of the Tax Court is affirmed and it appears that the notice of appeal was filed merely for delay.” ## § 7519: Required payments for entities electing not to have required taxable year - § 7519(d)(4): Pub. L. 101–239, § 7821(b), struck out “for taxable years beginning after 1987,” before “the applicable percentage” and substituted “unless more than 50 percent” for “if more than 50 percent” and “who would have been entitled” for “who would not have been entitled”. - § 7519(f)(4)(B): Pub. L. 101–239, § 7721(c)(12), substituted “part II of subchapter A of chapter 68” for “section 6653”. ## § 7521: Procedures involving taxpayer interviews ## § 7611: Restrictions on church tax inquiries and examinations - § 7611(i)(3): Pub. L. 101–239 made technical correction to directory language of Pub. L. 100–203, see 1987 Amendment note below. ## § 7702A: Modified endowment contract defined - § 7702A(c)(3)(B): Pub. L. 101–239, § 7815(a)(1), substituted “benefit increases” for “increases in future benefits” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of subparagraph (A), the term ‘material change’ includes any increase in future benefits under the contract. Such term shall not include— - § 7702A(c)(4): Pub. L. 101–239, § 7815(a)(4), substituted “of $10,000 or less” for “under $10,000” in heading and “the same policyholder” for “the same insurer” in concluding provisions. - § 7702A(c)(6): Pub. L. 101–239, § 7647(a), added par. (6). ## § 9502: Airport and Airway Trust Fund - § 9502(b): Pub. L. 101–239 substituted “; and” for “, and” at end. ## § 9503: Highway Trust Fund - § 9503(b)(4)(A): Pub. L. 101–239 substituted “by section 4041(d)” for “by sections 4041(d)”. ## § 9508: Leaking Underground Storage Tank Trust Fund - § 9508(b)(3), § 9508(c)(2): Pub. L. 101–239 substituted “Storage Tank Trust Fund financing” for “Storage Trust Fund financing”. ## § 9509: Oil Spill Liability Trust Fund - § 9509(b)(3): Pub. L. 101–239, § 7811(m)(3), made technical correction to directory language of Pub. L. 100–647, see 1988 Amendment note below. - § 9509(b)(3): Pub. L. 101–239, § 7505(d)(2)(B), substituted “(on January 1, 1990)” for “(on the 1st day the Oil Spill Liability Trust Fund financing rate under section 4611(c) applies)”. - § 9509(c)(1)(A): Pub. L. 101–239, § 7505(d)(2)(C), which directed amendment of subsec. (c)(1) by striking the last sentence, was executed by striking out the last sentence of subsec. (c)(1)(A), as the probable intent of Congress. Such sentence read as follows: “For purposes of this subparagraph, references to the Comprehensive Oil Pollution Liability and Compensation Act shall be treated as references to qualified authorizing legislation (as defined in section 4611).” - § 9509(f): Pub. L. 101–239, § 7505(d)(2)(A), added subsec. (f). ## § 9510: Vaccine Injury Compensation Trust Fund - § 9510(c)(1): Pub. L. 101–239 inserted before period at end “, or for the payment of all expenses of administration (but not in excess of $6,000,000 for any fiscal year) incurred by the Federal Government in administering such subtitle”.