# Pub. L. 105-34: changes to the Internal Revenue Code 1997-08-05, 111 Stat. 831. Source: . ## Legislative history - Bill: [H.R. 2014](https://www.congress.gov/bill/105th-congress/house-bill/2014) - House report: [H. Rept. 105-148](https://www.govinfo.gov/content/pkg/CRPT-105hrpt148/html/CRPT-105hrpt148.htm) - Conference report: [H. Rept. 105-220](https://www.govinfo.gov/content/pkg/CRPT-105hrpt220/html/CRPT-105hrpt220.htm) - Bluebook: [JCT general explanation (1997)](https://www.govinfo.gov/app/details/CPRT-105JPRT45107) ## § 1: Tax imposed - § 1(h): Pub. L. 105–34 amended heading and text of subsec. (h) generally. Prior to amendment, text read as follows: “If a taxpayer has a net capital gain for any taxable year, then the tax imposed by this section shall not exceed the sum of— ## § 23: Adoption expenses - § 23(a)(2): Pub. L. 105–34, § 1601(h)(2)(A), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The credit under paragraph (1) with respect to any expense shall be allowed— - § 23(b)(2)(B): Pub. L. 105–34, § 1601(h)(2)(B), substituted “determined without regard to sections 911, 931, and 933.” for “determined— ## § 24: Child tax credit - Enacted 26 U.S.C. § 24. ## § 25: Interest on certain home mortgages - § 25(e)(7): Pub. L. 105–34 substituted “section 121” for “section 1034”. ## § 25A: American Opportunity and Lifetime Learning credits - Enacted 26 U.S.C. § 25A. ## § 26: Limitation based on tax liability; definition of tax liability - § 26(b)(2)(E), § 26(b)(2)(F), § 26(b)(2)(G), § 26(b)(2)(H), § 26(b)(2)(I), § 26(b)(2)(J), § 26(b)(2)(K), § 26(b)(2)(L), § 26(b)(2)(M), § 26(b)(2)(N), § 26(b)(2)(O): Pub. L. 105–34, § 213(e)(1), added subpar. (E) and redesignated former subpars. (E) to (N) as (F) to (O), respectively. Former subpar. (O) redesignated (P). - § 26(b)(2)(P): Pub. L. 105–34, § 213(e)(1), redesignated subpar. (P) as (Q). - § 26(b)(2)(P): Pub. L. 105–34, § 1602(a)(1), added subpar. (P). - § 26(b)(2)(Q): Pub. L. 105–34, § 213(e)(1), redesignated subpar. (P) as (Q). ## § 32: Earned income - § 32(c)(2)(B)(v): Pub. L. 105–34, § 1085(c), added cl. (v). - § 32(c)(4): Pub. L. 105–34, § 312(d)(2), struck out “(as defined in section 1034(h)(3)” after “serving on extended active duty” and inserted at end “For purposes of the preceding sentence, the term ‘extended active duty’ means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.” - § 32(c): Pub. L. 105–34, § 1085(d)(4), inserted at end of concluding provisions “Clause (vi) shall not include any amount which is not includible in gross income by reason of section 402(c), 403(a)(4), 403(b), 408(d)(3), (4), or (5), or 457(e)(10).” - § 32(c): Pub. L. 105–34, § 1085(b), substituted “75 percent” for “50 percent” in introductory provisions. - § 32(c): Pub. L. 105–34, § 1085(d)(1)–(3), added cls. (v) and (vi). - § 32(k): Pub. L. 105–34, § 1085(a)(1), added subsec. (k). Former subsec. (k) redesignated (l). - § 32(l): Pub. L. 105–34, § 1085(a)(1), redesignated subsec. (k) as (l). Former subsec. (l) redesignated (m). - § 32(m): Pub. L. 105–34, § 1085(a)(1), redesignated subsec. (l) as (m) relating to identification numbers. - § 32(m): Pub. L. 105–34, § 101(b), added subsec. (m) relating to supplemental child credit. ## § 39: Carryback and carryforward of unused credits - § 39(a)(1): Pub. L. 105–34, § 1083(a)(1), substituted “1-year” for “3-year” and “20-year” for “15-year” in heading, “1 taxable” for “3 taxable” in subpar. (A), and “20 taxable” for “15 taxable” in subpar. (B). - § 39(a)(2): Pub. L. 105–34, § 1083(a)(2), as amended by Pub. L. 105–206, § 6010(n), in subpar. (A), substituted “21 taxable” for “18 taxable”, and in subpar. (B), substituted “20 years” for “17 years” in heading and “20 taxable” for “17 taxable” in text. - § 39(d): Pub. L. 105–34, § 701(b)(1), added par. (8). ## § 41: Credit for increasing research activities - § 41(c)(4)(B): Pub. L. 105–34, § 601(b)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “An election under this paragraph may be made only for the first taxable year of the taxpayer beginning after June 30, 1996. Such an election shall apply to the taxable year for which made and all succeeding taxable years unless revoked with the consent of the Secretary.” - § 41(h)(1): Pub. L. 105–34, § 601(a), substituted “June 30, 1998” for “May 31, 1997” in subpar. (B) and “during the 24-month period beginning with the first month of such year. The 24 months referred to in the preceding sentence shall be reduced by the number of full months after June 1996 (and before the first month of such first taxable year) during which the taxpayer paid or incurred any amount which is taken into account in determining the credit under this section.” for “during the first 11 months of such taxable year.” in concluding provisions. ## § 45C: Clinical testing expenses for certain drugs for rare diseases or conditions - § 45C(b)(1): Pub. L. 105–34, § 601(b)(2), substituted “June 30, 1998” for “May 31, 1997”. - § 45C: Pub. L. 105–34, § 604(a), struck out subsec. (e) which read as follows: ## § 51: Amount of credit - § 51(a): Pub. L. 105–34, § 603(d)(1), substituted “40 percent” for “35 percent”. - § 51(c)(4): Pub. L. 105–34, § 603(a), substituted “June 30, 1998” for “September 30, 1997”. - § 51(d)(1)(H): Pub. L. 105–34, § 603(c)(1), added subpar. (H). - § 51(d)(2)(A): Pub. L. 105–34, § 603(b)(1), substituted “for any 9 months during the 18-month period ending on the hiring date” for “for at least a 9-month period ending during the 9-month period ending on the hiring date”. - § 51(d)(3)(A): Pub. L. 105–34, § 603(b)(2), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘qualified veteran’ means any veteran who is certified by the designated local agency as being— - § 51(d)(9): Pub. L. 105–34, § 603(c)(2), added par. (9). Former par. (9) redesignated (10). - § 51(d)(10), § 51(d)(11), § 51(d)(12): Pub. L. 105–34, § 603(c)(2), redesignated pars. (9) to (11) as (10) to (12), respectively. - § 51(i)(3): Pub. L. 105–34, § 603(d)(2), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “No wages shall be taken into account under subsection (a) with respect to any individual unless such individual either— ## § 52: Special rules - § 52(c): Pub. L. 105–34 substituted “work opportunity credit” for “targeted jobs credit”. ## § 55: Alternative minimum tax imposed - § 55(b)(1)(A)(ii): Pub. L. 105–34, § 311(b)(2)(A), substituted “this subsection” for “clause (i)”. - § 55(b)(3): Pub. L. 105–34, § 311(b)(1), added par. (3). - § 55(c)(1): Pub. L. 105–34, § 1601(f)(1)(C), substituted “Puerto Rico” for “Puerto Rican”. - § 55: Pub. L. 105–34, § 401(a), added subsec. (e). ## § 56: Adjustments in computing alternative minimum taxable income - § 56(a)(1)(A)(i): Pub. L. 105–34, § 402(a), inserted at end “In the case of property placed in service after December 31, 1998, the preceding sentence shall not apply but clause (ii) shall continue to apply.” - § 56(a)(5): Pub. L. 105–34, § 402(b), inserted at end “In the case of such a facility placed in service after December 31, 1998, such deduction shall be determined under section 168 using the straight line method.” - § 56(a)(6), § 56(a)(7), § 56(a): Pub. L. 105–34, § 403(a), redesignated pars. (7) and (8) as (6) and (7), respectively, and struck out former par. (6) which read as follows: - § 56(e)(1)(A), § 56(e)(3)(B)(i): Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”. - § 56: Pub. L. 105–34, § 1212(a), inserted at end of concluding provisions “In the case of any insurance company taxable under section 831(b), this clause shall not apply to any amount not described in section 834(b).” ## § 57: Items of tax preference - § 57(a)(7): Pub. L. 105–34 substituted “42 percent” for “one-half”. ## § 59: Other definitions and special rules - § 59(a)(2): Pub. L. 105–34, § 1057(a), struck out subpar. (C) which read as follows: - § 59(a)(3): Pub. L. 105–34, § 1103(a), added par. (3) relating to election to use simplified section 904 limitation. - § 59(j): Pub. L. 105–34, § 1201(b)(1), amended subsec. (j) generally, restating limitation on exemption amount, adding provisions for inflation adjustment of such amount, and deleting provisions relating to limitation based on parental minimum tax and unused parental minimum tax exemption. ## § 62: Adjusted gross income defined - § 62(a)(2)(C): Pub. L. 105–34, § 975(a), added subpar. (C). - § 62(a)(17): Pub. L. 105–34, § 202(b), added par. (17). ## § 63: Taxable income defined - § 63(c)(4): Pub. L. 105–34, § 1201(a)(2), in introductory provisions, substituted “(5)” for “(5)(A)” and, in subpar. (B), substituted “by substituting for ‘calendar year 1992’ in subparagraph (B) thereof—” for “by substituting ‘calendar year 1987’ for ‘calendar year 1992’ in subparagraph (B) thereof” and added cls. (i) and (ii). - § 63(c)(5)(B): Pub. L. 105–34, § 1201(a)(1), substituted “the sum of $250 and such individual’s earned income” for “such individual’s earned income”. ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(d)(1)(B)(iii): Pub. L. 105–34, § 1075(b), inserted “If the annuity is payable over the life of a single individual, the number of anticipated payments shall be determined as follows:” before table and struck out “primary” after “If the age of the” in table. - § 72(d)(1)(B)(iv): Pub. L. 105–34, § 1075(a), added cl. (iv). - § 72(t)(2)(E): Pub. L. 105–34, § 203(a), added subpar. (E). - § 72(t)(2)(F): Pub. L. 105–34, § 303(a), added subpar. (F). - § 72(t)(7): Pub. L. 105–34, § 203(b), added par. (7). - § 72(t)(8): Pub. L. 105–34, § 303(b), added par. (8). ## § 101: Certain death benefits - § 101(a)(2): Pub. L. 105–34, § 1084(b)(2), inserted at end “The term ‘other amounts’ in the first sentence of this paragraph includes interest paid or accrued by the transferee on indebtedness with respect to such contract or any interest therein if such interest paid or accrued is not allowable as a deduction by reason of section 264(a)(4).” - § 101(h): Pub. L. 105–34, § 1528(a), added subsec. (h). ## § 108: Income from discharge of indebtedness - § 108(f)(2): Pub. L. 105–34, § 225(a)(1), added subpar. (D) and concluding provisions and struck out former subpar. (D) which read as follows: “any educational organization so described pursuant to an agreement with any entity described in subparagraph (A), (B), or (C) under which the funds from which the loan was made were provided to such educational organization.” - § 108(f)(2)(B): Pub. L. 105–34, § 225(a)(1), struck out “or” at end. - § 108(f)(3): Pub. L. 105–34, § 225(a)(2), added par. (3). ## § 110: Qualified lessee construction allowances for short-term leases - Enacted 26 U.S.C. § 110. ## § 121: Exclusion of gain from sale of principal residence - § 121: Pub. L. 105–34 amended section catchline and text generally. Prior to amendment, section related to one-time exclusion of gain from sale of principal residence by individual who had attained age 55. ## § 127: Educational assistance programs - § 127(d): Pub. L. 105–34 amended heading and text of subsec. (d) generally. Prior to amendment, text read as follows: “This section shall not apply to taxable years beginning after May 31, 1997. In the case of any taxable year beginning in 1997, only expenses paid with respect to courses beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.” ## § 130: Certain personal injury liability assignments - § 130(c): Pub. L. 105–34, § 962(a)(1), inserted “, or as compensation under any workmen’s compensation act,” after “(whether by suit or agreement)” in introductory provisions. - § 130(c)(1): Pub. L. 105–34, § 962(a)(2), inserted “or the workmen’s compensation claim,” after “agreement,”. - § 130(c)(2)(D): Pub. L. 105–34, § 962(a)(3), substituted “paragraph (1) or (2) of section 104(a)” for “section 104(a)(2)”. ## § 132: Certain fringe benefits - § 132(e)(2): Pub. L. 105–34, § 970(a), inserted at end of concluding provisions “For purposes of subparagraph (B), an employee entitled under section 119 to exclude the value of a meal provided at such facility shall be treated as having paid an amount for such meal equal to the direct operating costs of the facility attributable to such meal.” - § 132(f)(4): Pub. L. 105–34, § 1072(a), inserted at end “This paragraph shall not apply to any qualified parking provided in lieu of compensation which otherwise would have been includible in gross income of the employee, and no amount shall be included in the gross income of the employee solely because the employee may choose between the qualified parking and compensation.” ## § 135: Income from United States savings bonds used to pay higher education tuition and fees - § 135(c)(2)(C): Pub. L. 105–34, § 213(e)(2), inserted “, or to an education individual retirement account (as defined in section 530) on behalf of an account beneficiary,” after “(as defined in such section)”. - § 135(c)(2)(C): Pub. L. 105–34, § 211(c), added subpar. (C). - § 135(d)(2), § 135(d)(3), § 135(d)(4): Pub. L. 105–34, § 201(d), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively. ## § 137: Adoption assistance programs - § 137(b)(1): Pub. L. 105–34 substituted “of the amounts paid or expenses incurred which may be taken into account” for “amount excludable from gross income”. ## § 143: Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond - § 143(i)(1)(C)(i)(I): Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”. - § 143(k)(11): Pub. L. 105–34, § 914, added par. (11). - § 143(m)(6)(A): Pub. L. 105–34, § 312(d)(3), inserted “(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)” after “1034(e)”. ## § 145: Qualified 501(c)(3) bond - § 145(b)(5): Pub. L. 105–34 added par. (5). ## § 148: Arbitrage - § 148(c)(2)(B), § 148(c)(2)(C), § 148(c)(2)(D), § 148(c)(2): Pub. L. 105–34, § 1444(a), redesignated subpars. (C) to (E) as (B) to (D), respectively, and struck out heading and text of former subpar. (B). Text read as follows: “In the case of the proceeds of an issue to be used to make or finance loans under a program described in section 144(b)(1)(A), subparagraph (A) shall be applied by substituting ‘18 months’ for ‘6 months’. The preceding sentence shall not apply to any bond issued after December 31, 1988.” - § 148(d): Pub. L. 105–34, § 1443, struck out par. (3) which related to limitations on investment in nonpurpose investments. - § 148(f)(4)(B)(ii)(I): Pub. L. 105–34, § 1441, substituted “5 percent of the proceeds of the issue” for “the lesser of 5 percent of the proceeds of the issue or $100,000”. - § 148(f)(4)(C): Pub. L. 105–34, § 1442, added cl. (xvii). - § 148(f)(4)(D)(vii): Pub. L. 105–34, § 223(a), added cl. (vii). - § 148(f)(4): Pub. L. 105–34, § 1444(b), struck out subpar. (E) which related to exception for certain qualified student loan bonds. ## § 162: Trade or business expenses - § 162(a): Pub. L. 105–34, § 1204(a), inserted at end of concluding provisions “The preceding sentence shall not apply to any Federal employee during any period for which such employee is certified by the Attorney General (or the designee thereof) as traveling on behalf of the United States in temporary duty status to investigate, or provide support services for the investigation of, a Federal crime.” - § 162(l)(1)(B): Pub. L. 105–34, § 934(a), amended table generally. Prior to amendment, table read as follows: - § 162(l)(2)(B): Pub. L. 105–34, § 1602(c), inserted “The preceding sentence shall be applied separately with respect to—” at end and added cls. (i) and (ii). - § 162(o), § 162(p): Pub. L. 105–34, § 1203(a), added subsec. (o) and redesignated former subsec. (o) as (p). ## § 163: Interest - § 163(h)(2)(E): Pub. L. 105–34, § 503(b)(2)(B), struck out “or 6166 or under section 6166A (as in effect before its repeal by the Economic Recovery Tax Act of 1981)” after “section 6163”. - § 163(h)(4)(A): Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”. - § 163(j)(2): Pub. L. 105–34, § 1604(g)(1), substituted “clause (ii)” for “clause (i)” in introductory provisions. - § 163(k): Pub. L. 105–34, § 503(b)(2)(A), added subsec. (k). Former subsec. (k) redesignated (l). - § 163(l): Pub. L. 105–34, § 1005(a), added subsec. (l). Former subsec. (l) redesignated (m). - § 163(l): Pub. L. 105–34, § 503(b)(2)(A), redesignated subsec. (k) as (l). - § 163(m): Pub. L. 105–34, § 1005(a), redesignated subsec. (l) as (m). ## § 165: Losses - § 165(i)(4): Pub. L. 105–34 added par. (4). ## § 167: Depreciation - § 167(g)(6): Pub. L. 105–34 added par. (6). ## § 168: Accelerated cost recovery system - § 168(e)(3)(A)(iii): Pub. L. 105–34, § 1086(b)(1), added cl. (iii). - § 168(g)(3)(B): Pub. L. 105–34, § 1086(b)(2), inserted table item relating to subpar. (A)(iii). - § 168(i)(8)(C): Pub. L. 105–34, § 1213(c), added subpar. (C). - § 168(i)(14): Pub. L. 105–34, § 1086(b)(3), added par. (14). - § 168(j)(6): Pub. L. 105–34, § 1604(c)(1), inserted concluding provisions “For purposes of the preceding sentence, such section 3(d) shall be applied by treating the term ‘former Indian reservations in Oklahoma’ as including only lands which are within the jurisdictional area of an Oklahoma Indian tribe (as determined by the Secretary of the Interior) and are recognized by such Secretary as eligible for trust land status under 25 CFR Part 151 (as in effect on the date of the enactment of this sentence).” ## § 170: Charitable, etc., contributions and gifts - § 170(e)(5): Pub. L. 105–34, § 602(a), substituted “June 30, 1998” for “May 31, 1997”. - § 170(e)(6): Pub. L. 105–34, § 224(a), added par. (6). - § 170(h)(5)(B)(ii): Pub. L. 105–34, § 508(d), amended heading and text of cl. (ii) generally. Prior to amendment, text read as follows: “With respect to any contribution of property in which the ownership of the surface estate and mineral interests were separated before June 13, 1976, and remain so separated, subparagraph (A) shall be treated as met if the probability of surface mining occurring on such property is so remote as to be negligible.” - § 170(i): Pub. L. 105–34, § 973(a), amended heading and text of subsec. (i) generally. Prior to amendment, text read as follows: “For purposes of computing the deduction under this section for use of a passenger automobile the standard mileage rate shall be 12 cents per mile.” ## § 172: Net operating loss deduction - § 172(b)(1)(A)(i): Pub. L. 105–34, § 1082(a)(1), substituted “2” for “3”. - § 172(b)(1)(A)(ii): Pub. L. 105–34, § 1082(a)(2), substituted “20” for “15”. - § 172(b)(1): Pub. L. 105–34, § 1082(b), added subpar. (F). ## § 198: Expensing of environmental remediation costs - Enacted 26 U.S.C. § 198. ## § 216: Deduction of taxes, interest, and business depreciation by cooperative housing corporation tenant-stockholder - § 216(e): Pub. L. 105–34 substituted “such dwelling unit is used as his principal residence (within the meaning of section 121)” for “such exchange qualifies for nonrecognition of gain under section 1034(f)”. ## § 219: Retirement savings - § 219(c)(1)(B)(ii): Pub. L. 105–34, § 302(c), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the compensation includible in the gross income of such individual’s spouse for the taxable year reduced by the amount allowed as a deduction under subsection (a) to such spouse for such taxable year.” - § 219(g)(1): Pub. L. 105–34, § 301(b)(1), struck out “or the individual’s spouse” after “an individual”. - § 219(g)(2)(A)(ii): Pub. L. 105–34, § 301(a)(2), as amended by Pub. L. 105–206, § 6005(a)(2), inserted “($20,000 in the case of a joint return for a taxable year beginning after December 31, 2006)” after “$10,000”. - § 219(g)(3)(B): Pub. L. 105–34, § 301(a)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “The term ‘applicable dollar amount’ means— - § 219(g)(7): Pub. L. 105–34, § 301(b)(2), added par. (7). ## § 220: Archer MSAs - § 220(c)(3): Pub. L. 105–34, § 1602(a)(2), redesignated subpars. (B) to (D) as (A) to (C), respectively, and struck out former subpar. (A) which read as follows: “Medicare supplemental insurance,”. - § 220(d)(2)(C): Pub. L. 105–34, § 1602(a)(3), substituted “described in clauses (i) and (ii) of subsection (c)(1)(A)” for “an eligible individual”. ## § 221: Interest on education loans - Enacted 26 U.S.C. § 221. ## § 226: Cross reference - § 226: Pub. L. 105–34 renumbered section 221 of this title as this section. ## § 246: Rules applying to deductions for dividends received - § 246(c)(1)(A): Pub. L. 105–34, § 1015(a), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “which is held by the taxpayer for 45 days or less, or”. - § 246(c)(2): Pub. L. 105–34, § 1015(b)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “In the case of any stock having preference in dividends, the holding period specified in paragraph (1)(A) shall be 90 days in lieu of 45 days if the taxpayer receives dividends with respect to such stock which are attributable to a period or periods aggregating in excess of 366 days.” - § 246(c)(3): Pub. L. 105–34, § 1015(b)(2), inserted “and” at end of subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: “there shall not be taken into account any day which is more than 45 days (or 90 days in the case of stock to which paragraph (2) applies) after the date on which such share becomes ex-dividend, and”. ## § 263: Capital expenditures - § 263(a)(1)(H): Pub. L. 105–34 added subpar. (H). ## § 264: Certain amounts paid in connection with insurance contracts - § 264(a)(1): Pub. L. 105–34, § 1084(a)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Premiums paid on any life insurance policy covering the life of any officer or employee, or of any person financially interested in any trade or business carried on by the taxpayer, when the taxpayer is directly or indirectly a beneficiary under such policy.” - § 264(a)(4): Pub. L. 105–34, § 1602(f)(1), added subpars. (A) and (B) and concluding provisions and struck out former subpars. (A) and (B) and concluding provisions which read as follows: - § 264(a)(4): Pub. L. 105–34, § 1084(b)(1), substituted “individual.” for “individual, who— - § 264(b), § 264(c): Pub. L. 105–34, § 1084(a)(2), added subsec. (b) and redesignated former subsec. (b) as (c). Former subsec. (c) redesignated (d). - § 264(d): Pub. L. 105–34, § 1084(a)(2), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e). - § 264(d)(2): Pub. L. 105–34, § 1602(f)(2), amended concluding provisions generally. Prior to amendment, concluding provisions read as follows: “For purposes of subclause (II), the taxpayer shall elect an applicable period for such contract on its return of tax imposed by this chapter for its first taxable year ending on or after October 13, 1995. Such applicable period shall be for any number of months (not greater than 12) specified in the election and may not be changed by the taxpayer without the consent of the Secretary.” - § 264(d)(4): Pub. L. 105–34, § 1602(f)(3), substituted “interest in the taxpayer” for “interest in the employer”. - § 264(e): Pub. L. 105–34, § 1084(a)(2), redesignated subsec. (d) as (e). - § 264(f): Pub. L. 105–34, § 1084(c), added subsec. (f). ## § 265: Expenses and interest relating to tax-exempt income - § 265(b)(4)(A): Pub. L. 105–34 inserted “, section 264,” before “and section 291”. ## § 267: Losses, expenses, and interest with respect to transactions between related taxpayers - § 267(b)(13): Pub. L. 105–34, § 1308(a), added par. (13). - § 267(f)(4): Pub. L. 105–34, § 1604(e)(1), added par. (4). ## § 274: Disallowance of certain entertainment, etc., expenses - § 274(n)(3): Pub. L. 105–34 added par. (3). ## § 280A: Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc. - § 280A(c)(1): Pub. L. 105–34, § 932(a), inserted at end “For purposes of subparagraph (A), the term ‘principal place of business’ includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business.” - § 280A(d)(4)(A): Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”. ## § 280F: Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes - § 280F(a)(1): Pub. L. 105–34 added subpar. (C). ## § 304: Redemption through use of related corporations - § 304(a)(1): Pub. L. 105–34, § 1013(a), amended last sentence generally. Prior to amendment, last sentence read as follows: “To the extent that such distribution is treated as a distribution to which section 301 applies, the stock so acquired shall be treated as having been transferred by the person from whom acquired, and as having been received by the corporation acquiring it, as a contribution to the capital of such corporation.” - § 304(b)(5): Pub. L. 105–34, § 1013(c), added par. (5). ## § 312: Effect on earnings and profits - § 312(k)(3)(B): Pub. L. 105–34, in heading substituted “179 or 179A” for “179” and in text substituted “section 179 or 179A shall” for “section 179 shall” and “section 179 or 179A, as the case may be)” for “section 179)”. ## § 318: Constructive ownership of stock - § 318(b)(8): Pub. L. 105–34 substituted “6038(d)(2)” for “6038(d)(1)”. ## § 351: Transfer to corporation controlled by transferor - § 351(c): Pub. L. 105–34, § 1012(c)(1), amended heading and text of subsec. (c) generally. Prior to amendment, text read as follows: “In determining control, for purposes of this section, the fact that any corporate transferor distributes part or all of the stock which it receives in the exchange to its shareholders shall not be taken into account.” - § 351(e)(1): Pub. L. 105–34, § 1002(a), inserted last two sentences. - § 351(g), § 351(h): Pub. L. 105–34, § 1014(a), added subsec. (g) and redesignated former subsec. (g) as (h). ## § 354: Exchanges of stock and securities in certain reorganizations - § 354(a)(2)(B): Pub. L. 105–34, § 1014(e)(1), inserted “(including nonqualified preferred stock, as defined in section 351(g)(2))” after “stock”. - § 354(a)(2)(C): Pub. L. 105–34, § 1014(b), added subpar. (C). - § 354(a)(3)(A): Pub. L. 105–34, § 1014(e)(2), inserted “nonqualified preferred stock and” after “subsection (including”. ## § 355: Distribution of stock and securities of a controlled corporation - § 355(a)(3)(C): Pub. L. 105–34, § 1014(e)(1), inserted “(including nonqualified preferred stock, as defined in section 351(g)(2))” after “stock”. - § 355(a)(3)(D): Pub. L. 105–34, § 1014(c), added subpar. (D). - § 355(a)(4)(A): Pub. L. 105–34, § 1014(e)(2), inserted “nonqualified preferred stock and” after “subsection (including”. - § 355(e): Pub. L. 105–34, § 1012(a), added subsec. (e). - § 355(f): Pub. L. 105–34, § 1012(b)(1), added subsec. (f). ## § 356: Receipt of additional consideration - § 356(e), § 356(f), § 356(g): Pub. L. 105–34 added subsec. (e) and redesignated former subsecs. (e) and (f) as (f) and (g), respectively. ## § 358: Basis to distributees - § 358(g): Pub. L. 105–34 added subsec. (g). ## § 367: Foreign corporations - § 367(d)(2)(C): Pub. L. 105–34, § 1131(b)(4), amended heading and text of subpar. (C) generally. Prior to amendment, text read as follows: “For purposes of this chapter, any amount included in gross income by reason of this subsection shall be treated as ordinary income from sources within the United States.” - § 367(d)(3): Pub. L. 105–34, § 1131(b)(5)(A), added par. (3). - § 367(f): Pub. L. 105–34, § 1131(b)(2), added subsec. (f). ## § 368: Definitions relating to corporate reorganizations - § 368(a)(2)(H): Pub. L. 105–34 amended heading and text of subpar. (H) generally. Prior to amendment, text read as follows: “In the case of any transaction with respect to which the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met, for purposes of determining whether such transaction qualifies under subparagraph (D) of paragraph (1), the term ‘control’ has the meaning given to such term by section 304(c).” ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(a)(1): Pub. L. 105–34, § 1530(c)(1), inserted “or by a charitable remainder trust pursuant to a qualified gratuitous transfer (as defined in section 664(g)(1)),” after “stock bonus plans),”. - § 401(a)(5)(G): Pub. L. 105–34, § 1505(a)(1), added subpar. (G). - § 401(a)(13)(C), § 401(a)(13)(D): Pub. L. 105–34, § 1502(b), added subpars. (C) and (D). - § 401(a)(26)(H): Pub. L. 105–34, § 1505(a)(2), amended heading and text of subpar. (H) generally. Prior to amendment, text read as follows: - § 401(k)(3)(G): Pub. L. 105–34, § 1505(b), added subpar. (G). - § 401(k)(7)(B)(iii), § 401(k)(7)(B)(iv), § 401(k)(7)(B)(v): Pub. L. 105–34, § 1525(a), struck out “and” at end of cl. (iii), added cl. (iv), redesignated former cl. (iv) as (v), and in cl. (v), substituted “, (iii), or (iv)” for “or (iii)”. - § 401(k)(11)(B)(iii): Pub. L. 105–34, § 1601(d)(2)(D), added cl. (iii). - § 401(k)(11)(D)(ii): Pub. L. 105–34, § 1601(d)(2)(A), inserted “if such plan allows only contributions required under this paragraph” before period at end. - § 401(k)(11)(E): Pub. L. 105–34, § 1601(d)(2)(B), added subpar. (E). - § 401(m)(11): Pub. L. 105–34, § 1601(d)(3), substituted “Additional alternative” for “Alternative” in heading. ## § 402: Taxability of beneficiary of employees’ trust - § 402(g): Pub. L. 105–34 added par. (9). ## § 403: Taxation of employee annuities - § 403(b)(1)(A)(iii): Pub. L. 105–34, § 1601(d)(6)(B), added cl. (iii). - § 403(b)(3): Pub. L. 105–34, § 1504(a)(1), inserted at end “Such term includes—” and subpars. (A) and (B). - § 403(b)(12)(C): Pub. L. 105–34, § 1505(c), added subpar. (C). ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(a)(3)(A)(i): Pub. L. 105–34, § 1601(d)(2)(C)(i), substituted “not in excess of the greater of—” and subcls. (I) and (II) for “not in excess of 15 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under the stock bonus or profit-sharing plan.” - § 404(a)(3)(A)(ii): Pub. L. 105–34, § 1601(d)(2)(C)(ii), substituted “the amount described in subclause (I) or (II) of clause (i), whichever is greater, with respect to such taxable year.” for “15 percent of the compensation otherwise paid or accrued during such taxable year to the beneficiaries under the plan.” - § 404(a)(9)(C): Pub. L. 105–34, § 1530(c)(2), added subpar. (C) relating to qualified gratuitous transfers. ## § 408: Individual retirement accounts - § 408(i): Pub. L. 105–34, § 1601(d)(1)(A), substituted “31 days” for “30 days” in concluding provisions. - § 408(i): Pub. L. 105–34, § 302(d), struck out “under regulations” after “may require” in introductory provisions and struck out “in such regulations” after “prescribes” in pars. (1) and (2)(B). - § 408(k)(6)(H): Pub. L. 105–34, § 1601(d)(1)(B), substituted “of an employer if the terms of simplified employee pensions of such employer” for “if the terms of such pension”. - § 408(l)(2)(B): Pub. L. 105–34, § 1601(d)(1)(C)(i), inserted “and the issuer of an annuity established under such an arrangement” after “under subsection (p)” in introductory provisions and “or issuer” after “trustee” in cl. (i). - § 408(m)(3): Pub. L. 105–34, § 304(a), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “In the case of an individual retirement account, paragraph (2) shall not apply to— - § 408(p)(2)(D)(i): Pub. L. 105–34, § 1601(d)(1)(E), inserted at end “If only individuals other than employees described in subparagraph (A) or (B) of section 410(b)(3) are eligible to participate in such arrangement, then the preceding sentence shall be applied without regard to any qualified plan in which only employees so described are eligible to participate.” - § 408(p)(2)(D): Pub. L. 105–34, § 1601(d)(1)(F), added cl. (iii). - § 408(p)(5): Pub. L. 105–34, § 1601(d)(1)(G), substituted “simple” for “simplified” in introductory provisions. - § 408(p)(8): Pub. L. 105–34, § 1601(d)(1)(D), added par. (8) relating to coordination with maximum limitation under subsection (a). - § 408(p)(8): Pub. L. 105–34, § 1501(b), added par. (8) relating to matching contributions on behalf of self-employed individuals not treated as elective employer contributions. ## § 408A: Roth IRAs - Enacted 26 U.S.C. § 408A. ## § 409: Qualifications for tax credit employee stock ownership plans - § 409(h)(2): Pub. L. 105–34 designated existing provisions as subpar. (A), inserted subpar. heading, struck out “In the case of an employer whose charter or bylaws restrict the ownership of substantially all outstanding employer securities to employees or to a trust described in section 401(a), a plan which otherwise meets the requirements of this subsection or section 4975(e)(7) shall not be considered to have failed to meet the requirements of this subsection or of section 401(a) merely because it does not permit a participant to exercise the right described in paragraph (1)(A) if such plan provides that participants entitled to a distribution from the plan shall have a right to receive such distribution in cash, except that such plan may distribute employer securities subject to a requirement that such securities may be resold to the employer under terms which meet the requirements of paragraph (1)(B).” after “employer securities.”, and added subpar. (B). ## § 410: Minimum participation standards - § 410(c)(2): Pub. L. 105–34 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “A plan described in paragraph (1) shall be treated as meeting the requirements of this section, for purposes of section 401(a), if such plan meets the requirements of section 401(a)(3) as in effect on September 1, 1974.” ## § 411: Minimum vesting standards - § 411(a)(7)(B)(i): Pub. L. 105–34, § 1071(a)(2)(A), substituted “the dollar limit under section 411(a)(11)(A)” for “$3,500”. - § 411(a)(11)(A): Pub. L. 105–34, § 1071(a)(1), substituted “$5,000” for “$3,500”. ## § 412: Minimum funding standards - § 412(b)(2): Pub. L. 105–34, § 1521(c)(1), added subpar. (E). - § 412(c)(7)(A): Pub. L. 105–34, § 1521(a)(A), substituted “the applicable percentage” for “150 percent”. - § 412(c)(7): Pub. L. 105–34, § 1521(c)(3)(A), inserted “and” at end of cl. (i), substituted a period for “, and” at end of cl. (ii), and struck out cl. (iii) which read as follows: “for the treatment under this section of contributions which would be required to be made under the plan but for the provisions of subparagraph (A)(i)(I).” - § 412(c)(7): Pub. L. 105–34, § 1521(a)(B), added subpar. (F). - § 412: Pub. L. 105–34, § 1604(b)(2)(A), substituted “subclause (I)” for “clause (i)”. ## § 414: Definitions and special rules - § 414(e)(5)(A): Pub. L. 105–34, § 1601(d)(6)(A), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “For purposes of this part— - § 414(e)(5)(C): Pub. L. 105–34, § 1522(a)(1), substituted “not otherwise participating” for “not eligible to participate”. - § 414(e)(5)(E): Pub. L. 105–34, § 1522(a)(2), added subpar. (E). - § 414(n)(3)(C): Pub. L. 105–34, § 1601(h)(2)(D)(i), inserted “137,” after “132,”. - § 414(q)(7), § 414(q)(9): Pub. L. 105–34, § 1601(d)(7), redesignated par. (7), relating to certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans, as (9). - § 414(t)(2): Pub. L. 105–34, § 1601(h)(2)(D)(ii), inserted “137,” after “132,”. ## § 415: Limitations on benefits and contribution under qualified plans - § 415(b)(2)(G): Pub. L. 105–34, § 1527(a), substituted “participant, subparagraph (C) of this paragraph shall not apply.” for “participant— - § 415(c)(6): Pub. L. 105–34, § 1530(c)(3), inserted concluding provisions “The amount of any qualified gratuitous transfer (as defined in section 664(g)(1)) allocated to a participant for any limitation year shall not exceed the limitations imposed by this section, but such amount shall not be taken into account in determining whether any other amount exceeds the limitations imposed by this section.” - § 415(e): Pub. L. 105–34, § 1530(c)(4), added par. (6) and redesignated former par. (6) as (7). - § 415(k)(3): Pub. L. 105–34, § 1526(b), added par. (3). - § 415(n): Pub. L. 105–34, § 1526(a), added subsec. (n). ## § 417: Definitions and special rules for purposes of minimum survivor annuity requirements - § 417(e)(1), § 417(e)(2): Pub. L. 105–34 substituted “dollar limit” for “$3,500” in headings of pars. (1) and (2) and “the dollar limit under section 411(a)(11)(A)” for “$3,500” in text of pars. (1) and (2)(A). ## § 447: Method of accounting for corporations engaged in farming - § 447: Pub. L. 105–34 redesignated par. (5) as (3) and struck out heading and text of former par. (3). Text read as follows: “If— - § 447: Pub. L. 105–34 redesignated par. (6) as (4) and struck out heading and text of former par. (4). Text read as follows: “Any reduction in the suspense account under paragraph (3) shall be included in gross income for the taxable year of the reduction.” - § 447: Pub. L. 105–34 added par. (5) and redesignated former pars. (5) and (6) as (3) and (4), respectively. ## § 451: General rule for taxable year of inclusion - § 451(e): Pub. L. 105–34 inserted “, flood, or other weather-related conditions” after “drought” in heading and substituted “drought, flood, or other weather-related conditions, and that such conditions” for “drought conditions, and that these drought conditions” in par. (1). ## § 457: Deferred compensation plans of State and local governments and tax-exempt organizations - § 457(e)(9)(A): Pub. L. 105–34 substituted “dollar limit” for “$3,500” in heading and “the dollar limit under section 411(a)(11)(A)” for “$3,500” in cl. (i). ## § 460: Special rules for long-term contracts - § 460(b)(2)(C): Pub. L. 105–34, § 1211(b)(1), substituted “the adjusted overpayment rate (as defined in paragraph (7))” for “the overpayment rate established by section 6621”. - § 460(b)(6): Pub. L. 105–34, § 1211(a), added par. (6). - § 460(b)(7): Pub. L. 105–34, § 1211(b)(2), added par. (7). ## § 464: Limitations on deductions for certain farming expenses - § 464: Pub. L. 105–34 substituted “section 121” for “section 1034”. ## § 471: General rule for inventories - § 471(b), § 471(c): Pub. L. 105–34 added subsec. (b) and redesignated former subsec. (b) as (c). ## § 475: Mark to market accounting method for dealers in securities - § 475(e), § 475(f), § 475(g): Pub. L. 105–34 added subsecs. (e) and (f) and redesignated former subsec. (e) as (g). ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(26): Pub. L. 105–34, § 101(c), inserted concluding provisions “A spouse and any qualifying child (as defined in section 24(c)) of an individual described in subparagraph (B) (without regard to this sentence) shall be treated as described in subparagraph (B).” - § 501(c)(27): Pub. L. 105–34, § 963(a), (b), designated existing provisions as subpar. (A), redesignated former subpar. (A) as cl. (i), redesignated subpar. (B) as cl. (ii) and former cls. (i) and (ii) of subpar. (B) as subcls. (I) and (II), respectively, of cl. (ii), redesignated subpar. (C) as cl. (iii) and former cls. (i) and (ii) of subpar. (C) as subcls. (I) and (II), respectively, of cl. (iii), and added subpar. (B). - § 501(e)(1)(A): Pub. L. 105–34, § 974(a), inserted “(including the purchase of patron accounts receivable on a recourse basis)” after “billing and collection”. ## § 512: Unrelated business taxable income - § 512(a)(3)(D): Pub. L. 105–34, § 312(d)(5), inserted “(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)” after “1034”. - § 512(b)(13): Pub. L. 105–34, § 1041(a), amended par. (13) generally. Prior to amendment, par. (13) related to inclusion in gross income of controlling organization of amounts of interest, annuities, royalties, and rents derived from a controlled organization. - § 512(e)(1): Pub. L. 105–34, § 1601(c)(4)(D), substituted “section 1361(c)(6)” for “section 1361(c)(7)”. - § 512(e)(2): Pub. L. 105–34, § 1601(c)(4)(A), substituted “as defined in section 1361(e)(1)(C)” for “within the meaning of section 1012”. - § 512(e)(3): Pub. L. 105–34, § 1523(a), added par. (3). ## § 513: Unrelated trade or business - § 513(i): Pub. L. 105–34 added subsec. (i). ## § 528: Certain homeowners associations - § 528(b): Pub. L. 105–34, § 966(d), which directed amendment of subsec. (b) by inserting before the period “(32 percent of such income in the case of a timeshare association)”, was executed by making the insertion before the period at end to reflect the probable intent of Congress. - § 528(c)(1): Pub. L. 105–34, § 966(a)(1)(A), substituted “, a residential real estate management association, or a timeshare association” for “or a residential real estate management association” in introductory provisions. - § 528(c)(1)(B)(iii): Pub. L. 105–34, § 966(a)(1)(B), added cl. (iii). - § 528(c)(1)(C): Pub. L. 105–34, § 966(a)(1)(C), inserted before comma at end “and, in the case of a timeshare association, for activities provided to or on behalf of members of the association”. - § 528(c)(4): Pub. L. 105–34, § 966(a)(2), added par. (4). Former par. (4) redesignated (5). - § 528(c)(5): Pub. L. 105–34, § 966(c), inserted concluding provisions “In the case of a timeshare association, such term includes property in which the timeshare association, or members of the association, have rights arising out of recorded easements, covenants, or other recorded instruments to use property related to the timeshare project.” - § 528(c)(5): Pub. L. 105–34, § 966(a)(2), redesignated par. (4) as (5). - § 528(d)(3)(C): Pub. L. 105–34, § 966(b), added subpar. (C). ## § 529: Qualified tuition programs - § 529(b)(5): Pub. L. 105–34, § 211(b)(4), inserted “directly or indirectly” after “may not”. - § 529(c)(2): Pub. L. 105–34, § 211(b)(3)(A)(i), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “In no event shall a contribution to a qualified State tuition program on behalf of a designated beneficiary be treated as a taxable gift for purposes of chapter 12.” - § 529(c)(3)(A): Pub. L. 105–34, § 211(d), substituted “section 72(b)” for “section 72”. - § 529(c)(4): Pub. L. 105–34, § 211(b)(3)(B), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “The value of any interest in any qualified State tuition program which is attributable to contributions made by an individual to such program on behalf of any designated beneficiary shall be includible in the gross estate of the contributor for purposes of chapter 11.” - § 529(c)(5): Pub. L. 105–34, § 211(b)(3)(A)(ii), amended heading and text of par. (5) generally. Prior to amendment, text read as follows: “For purposes of section 2503(e), the waiver (or payment to an educational institution) of qualified higher education expenses of a designated beneficiary under a qualified State tuition program shall be treated as a qualified transfer.” - § 529(d): Pub. L. 105–34, § 211(e)(2)(A), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: - § 529(e)(1)(B): Pub. L. 105–34, § 1601(h)(1)(A), substituted “subsection (c)(3)(C)” for “subsection (c)(2)(C)”. - § 529(e)(1)(C): Pub. L. 105–34, § 1601(h)(1)(B), inserted “(or agency or instrumentality thereof)” after “local government”. - § 529(e)(2): Pub. L. 105–34, § 211(b)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘member of the family’ has the same meaning given such term as section 2032A(e)(2).” - § 529(e)(3): Pub. L. 105–34, § 211(a), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution (as defined in section 135(c)(3)).” - § 529(e)(5): Pub. L. 105–34, § 211(b)(2), added par. (5). ## § 530: Coverdell education savings accounts - Enacted 26 U.S.C. § 530. ## § 532: Corporations subject to accumulated earnings tax - § 532(b): Pub. L. 105–34 substituted “section 1297” for “section 1296”. ## § 542: Definition of personal holding company - § 542(c): Pub. L. 105–34 substituted “section 1297” for “section 1296”. ## § 593: Reserves for losses on loans - § 593(e)(1)(A): Pub. L. 105–34 inserted “(and, in the case of an S corporation, the accumulated adjustments account, as defined in section 1368(e)(1))” after “1951,”. ## § 613A: Limitations on percentage depletion in case of oil and gas wells - § 613A(c)(6): Pub. L. 105–34 added subpar. (H). ## § 641: Imposition of tax - § 641(b): Pub. L. 105–34 inserted at end “For purposes of this subsection, a foreign trust or foreign estate shall be treated as a nonresident alien individual who is not present in the United States at any time.” ## § 644: Taxable year of trusts - § 644: Pub. L. 105–34 renumbered section 645 of this title as this section. ## § 645: Certain revocable trusts treated as part of estate - Enacted 26 U.S.C. § 645. ## § 663: Special rules applicable to sections 661 and 662 - § 663(b): Pub. L. 105–34, § 1306(a), inserted “an estate or” before “a trust” in pars. (1) and (2). - § 663(b)(2): Pub. L. 105–34, § 1306(b), substituted “the executor of such estate or the fiduciary of such trust (as the case may be)” for “the fiduciary of such trust”. - § 663(c): Pub. L. 105–34, § 1307(a), (b), inserted “estates or” before “trusts” in heading, “Rules similar to the rules of the preceding provisions of this subsection shall apply to treat substantially separate and independent shares of different beneficiaries in an estate having more than 1 beneficiary as separate estates.” before last sentence, and “or estates” after “trusts” in last sentence. ## § 664: Charitable remainder trusts - § 664(d)(1)(A): Pub. L. 105–34, § 1089(a)(1), inserted “nor more than 50 percent” after “not less than 5 percent”. - § 664(d)(1)(B): Pub. L. 105–34, § 1530(c)(5), inserted “and other than qualified gratuitous transfers described in subparagraph (C)” after “subparagraph (A)”. - § 664(d)(1)(B): Pub. L. 105–34, § 1089(b)(1), struck out “and” at end. - § 664(d)(1)(C): Pub. L. 105–34, § 1530(a), which directed amendment of subpar. (C) by striking period at end and inserting “or, to the extent the remainder interest is in qualified employer securities (as defined in subsection (g)(4)), all or part of such securities are to be transferred to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined by subsection (g)).”, was executed by making the insertion after “for such a use” to reflect the probable intent of Congress. Subpar. (C) did not contain a period after amendment by Pub. L. 105–34, § 1089(b)(1). See below. - § 664(d)(1)(C): Pub. L. 105–34, § 1089(b)(1), struck out period after “for such a use”. - § 664(d)(1)(D): Pub. L. 105–34, § 1089(b)(1), added subpar. (D). - § 664(d)(2)(A): Pub. L. 105–34, § 1089(a)(1), inserted “nor more than 50 percent” after “not less than 5 percent”. - § 664(d)(2)(B): Pub. L. 105–34, § 1530(c)(5), inserted “and other than qualified gratuitous transfers described in subparagraph (C)” after “subparagraph (A)”. - § 664(d)(2)(B): Pub. L. 105–34, § 1089(b)(2), struck out “and” at end. - § 664(d)(2)(C): Pub. L. 105–34, § 1530(a), which directed amendment of subpar. (C) by striking period at end and inserting “or, to the extent the remainder interest is in qualified employer securities (as defined in subsection (g)(4)), all or part of such securities are to be transferred to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined by subsection (g)).”, was executed by making the insertion after “for such a use” to reflect the probable intent of Congress. Subpar. (C) did not contain a period after amendment by Pub. L. 105–34, § 1089(b)(2). See below. - § 664(d)(2)(C): Pub. L. 105–34, § 1089(b)(2), struck out period after “for such a use”. - § 664(d)(2)(D): Pub. L. 105–34, § 1089(b)(2), added subpar. (D). - § 664(d)(4): Pub. L. 105–34, § 1089(b)(4), added par. (4). - § 664(g): Pub. L. 105–34, § 1530(b), added subsec. (g). ## § 665: Definitions applicable to subpart D - § 665(b): Pub. L. 105–34, § 507(a)(2), inserted “except as provided in subsection (c),” after “subpart,” in introductory provisions. - § 665(c): Pub. L. 105–34, § 507(a)(1), added subsec. (c). - § 665(d)(1): Pub. L. 105–34, § 1604(g)(2), struck out “or 669(d) and (e)” after “666(b) and (c)”. ## § 674: Power to control beneficial enjoyment - § 674(b)(4): Pub. L. 105–34 inserted before period “or to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined in section 664(g)(1))”. ## § 679: Foreign trusts having one or more United States beneficiaries - § 679(a)(3)(C)(ii), § 679(a)(3)(C)(iii): Pub. L. 105–34 inserted “, owner,” after “grantor”. ## § 684: Recognition of gain on certain transfers to certain foreign trusts and estates - Enacted 26 U.S.C. § 684. ## § 685: Treatment of funeral trusts - Enacted 26 U.S.C. § 685. ## § 691: Recipients of income in respect of decedents - § 691(c)(1): Pub. L. 105–34 struck out heading and text of subpar. (C). Text read as follows: “For purposes of this subsection, no deduction shall be allowed for the portion of the estate tax attributable to the increase in such tax under section 4980A(d).” ## § 704: Partner’s distributive share - § 704(c)(1)(B): Pub. L. 105–34 substituted “7 years” for “5 years” in introductory provisions. ## § 706: Taxable years of partner and partnership - § 706(b)(5): Pub. L. 105–34, § 507(b)(2), substituted “section 644” for “section 645”. - § 706(c)(2): Pub. L. 105–34, § 1246(b), substituted “Treatment of dispositions” for “Partner who retires or sells interest in partnership” as heading. - § 706(c)(2)(A): Pub. L. 105–34, § 1246(a), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “The taxable year of a partnership shall close— ## § 721: Nonrecognition of gain or loss on contribution - § 721(c): Pub. L. 105–34, § 1131(b)(3), added subsec. (c). - § 721(d): Pub. L. 105–34, § 1131(b)(5)(B), added subsec. (d). ## § 724: Character of gain or loss on contributed unrealized receivables, inventory items, and capital loss property - § 724(d)(2): Pub. L. 105–34 substituted “section 751(d)” for “section 751(d)(2)”. ## § 731: Extent of recognition of gain or loss on distribution - § 731(a)(2)(B), § 731(c)(6): Pub. L. 105–34 substituted “section 751(d)” for “section 751(d)(2)”. ## § 732: Basis of distributed property other than money - § 732(c): Pub. L. 105–34, § 1061(a), amended heading and text of subsec. (c) generally. Prior to amendment, text read as follows: “The basis of distributed properties to which subsection (a)(2) or subsection (b) is applicable shall be allocated— - § 732(c)(1)(A)(i): Pub. L. 105–34, § 1062(b)(3), substituted “section 751(d)” for “section 751(d)(2)”. ## § 735: Character of gain or loss on disposition of distributed property - § 735(a)(2), § 735(c)(1): Pub. L. 105–34 substituted “section 751(d)” for “section 751(d)(2)”. ## § 737: Recognition of precontribution gain in case of certain distributions to contributing partner - § 737(b)(1): Pub. L. 105–34 substituted “7 years” for “5 years”. ## § 751: Unrealized receivables and inventory items - § 751(a)(2): Pub. L. 105–34, § 1062(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “inventory items of the partnership which have appreciated substantially in value,”. - § 751(b)(1): Pub. L. 105–34, § 1062(b)(1)(A), added subpars. (A) and (B) and struck out former subpars. (A) and (B) which read as follows: - § 751(b)(3): Pub. L. 105–34, § 1062(b)(1)(B), added par. (3). - § 751(d): Pub. L. 105–34, § 1062(b)(2), amended heading and text of subsec. (d) generally. Prior to amendment, subsec. (d) consisted of pars. (1) and (2) relating to inventory items which have appreciated substantially in value. ## § 805: General deductions - § 805(a)(4)(C)(ii): Pub. L. 105–34, § 1084(b)(1)(A), inserted “, or out of the increase for the taxable year in policy cash values (within the meaning of subparagraph (F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies,” after “tax-exempt interest”. - § 805(a)(4)(D)(iii): Pub. L. 105–34, § 1084(b)(1)(B), substituted “, the increase for the taxable year in policy cash values (within the meaning of subparagraph (F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies, and” for “and”. - § 805(a)(4)(F): Pub. L. 105–34, § 1084(b)(1)(C), added subpar. (F). ## § 807: Rules for certain reserves - § 807(a)(2)(B): Pub. L. 105–34, § 1084(b)(2)(A), substituted “interest and the amount of the policyholder’s share of the increase for the taxable year in policy cash values (within the meaning of section 805(a)(4)(F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies,” for “interest,”. - § 807(b)(1)(B): Pub. L. 105–34, § 1084(b)(2)(B), substituted “interest and the amount of the policyholder’s share of the increase for the taxable year in policy cash values (within the meaning of section 805(a)(4)(F)) of life insurance policies and annuity and endowment contracts to which section 264(f) applies,” for “interest,”. ## § 812: Definition of company’s share and policyholder’s share - § 812: Pub. L. 105–34 added subpar. (D). ## § 814: Contiguous country branches of domestic life insurance companies - § 814(h): Pub. L. 105–34 struck out “or 1491” after “section 367”. ## § 817: Treatment of variable contracts - § 817(h)(2)(A): Pub. L. 105–34, § 1271(b)(8)(A), substituted “851(b)(3)” for “851(b)(4)”. - § 817(h)(2)(B): Pub. L. 105–34, § 1271(b)(8)(B), substituted “851(b)(3)(A)(i)” for “851(b)(4)(A)(i)”. ## § 832: Insurance company taxable income - § 832(b)(5)(B)(iii): Pub. L. 105–34, which directed amendment of subpar. (B) by adding cl. (iii) at the end, was executed by adding cl. (iii) after cl. (ii) to reflect the probable intent of Congress. ## § 833: Treatment of Blue Cross and Blue Shield organizations, etc. - § 833(b)(1)(A)(i): Pub. L. 105–34, § 1604(d)(2)(A)(i), inserted “and liabilities incurred during the taxable year under cost-plus contracts” before the comma. - § 833(b)(1)(A)(ii): Pub. L. 105–34, § 1604(d)(2)(A)(ii), inserted “or in connection with the administration of cost-plus contracts” before the last comma. ## § 851: Definition of regulated investment company - § 851(b): Pub. L. 105–34, § 1271(b)(1), in concluding provisions, substituted “paragraph (2), amounts excludable” for “paragraphs (2) and (3), amounts excludable” and struck out “In the case of the taxable year in which a regulated investment company is completely liquidated, there shall not be taken into account under paragraph (3) any gain from the sale, exchange, or distribution of any property after the adoption of the plan of complete liquidation.” at end. - § 851(b)(2): Pub. L. 105–34, § 1271(a), inserted “and” at end. - § 851(b)(3), § 851(b): Pub. L. 105–34, § 1271(a), redesignated par. (4) as (3) and struck out former par. (3) which read as follows: “less than 30 percent of its gross income is derived from the sale or disposition of any of the following which was held for less than 3 months: - § 851(c): Pub. L. 105–34, § 1271(b)(2), substituted “subsection (b)(3)” for “subsection (b)(4)” in heading and introductory provisions. - § 851(d): Pub. L. 105–34, § 1271(b)(3), substituted “subsections (b)(3)” for “subsections (b)(4)”. - § 851(e)(1): Pub. L. 105–34, § 1271(b)(4), substituted “subsection (b)(3)” for “subsection (b)(4)”. - § 851(e)(4): Pub. L. 105–34, § 1271(b)(5), substituted “subsections (b)(3)” for “subsections (b)(4)”. - § 851(g): Pub. L. 105–34, § 1271(b)(6), redesignated subsec. (h) as (g) and struck out former subsec. (g) which provided for treatment of certain hedging transactions. - § 851(g): Pub. L. 105–34, § 1271(b)(7), struck out par. (3) which provided special rule for abnormal redemptions. - § 851(h): Pub. L. 105–34, § 1271(b)(6), redesignated subsec. (h) as (g). ## § 852: Taxation of regulated investment companies and their shareholders - § 852(b)(3)(D)(iii): Pub. L. 105–34, § 1254(b)(2), substituted “by the difference between the amount of such includible gains and the tax deemed paid by such shareholder in respect of such shares under clause (ii).” for “by 65 percent of so much of such amounts as equals the amount subject to tax in accordance with section 1201(a).” - § 852(b): Pub. L. 105–34, § 1122(c)(2), added par. (10). - § 852(c)(2): Pub. L. 105–34, § 1122(c)(3), inserted “, without regard to any net reduction in the value of any stock of a passive foreign investment company with respect to which an election under section 1296(k) is in effect occurring after October 31 of such year,” after “October 31 of such year”. ## § 853: Foreign tax credit allowed to shareholders - § 853(c): Pub. L. 105–34 inserted at end “Such notice shall also include the amount of such taxes which (without regard to the election under this section) would not be allowable as a credit under section 901(a) to the regulated investment company by reason of section 901(k).” ## § 856: Definition of real estate investment trust - § 856(a)(6): Pub. L. 105–34, § 1251(b)(2), inserted “subject to the provisions of subsection (k),” before “which is not”. - § 856(c)(3)(I): Pub. L. 105–34, § 1255(a)(1), inserted “and” at end. - § 856(c)(4): Pub. L. 105–34, § 1255(a)(2), (3), redesignated par. (5) as (4) and struck out former par. (4) which read as follows: “less than 30 percent of its gross income is derived from the sale or other disposition of— - § 856(c)(5): Pub. L. 105–34, § 1255(a)(3), redesignated par. (6) as (5). Former par. (5) redesignated (4). - § 856(c)(5)(G): Pub. L. 105–34, § 1258, amended heading and text of subpar. (G) generally. Prior to amendment, text read as follows: “Except to the extent provided by regulations, any— - § 856(c)(5)(G): Pub. L. 105–34, § 1255(b)(1), struck out “and such agreement shall be treated as a security for purposes of paragraph (4)(A)” after “under paragraph (2)” in concluding provisions. - § 856(c)(6), § 856(c)(7): Pub. L. 105–34, § 1255(a)(3), redesignated par. (7) as (6). Former par. (6) redesignated (5). - § 856(c)(8): Pub. L. 105–34, § 1255(a)(2), struck out heading and text of par. (8). Text read as follows: “In the case of the taxable year in which a real estate investment trust is completely liquidated, there shall not be taken into account under paragraph (4) any gain from the sale, exchange, or distribution of any property after the adoption of the plan of complete liquidation.” - § 856(d)(2): Pub. L. 105–34, § 1252(a), added subpar. (C) and struck out former subpar. (C) and concluding provisions which read as follows: - § 856(d)(5): Pub. L. 105–34, § 1253, substituted “except that—” and subpars. (A) and (B) for “except that ‘10 percent’ shall be substituted for ‘50 percent’ in subparagraph (C) of section 318(a)(2) and 318(a)(3).” - § 856(d)(7): Pub. L. 105–34, § 1252(b), added par. (7). - § 856(e)(2): Pub. L. 105–34, § 1257(a)(1), which directed amendment of par. (2) by substituting “as of the close of the 3d taxable year following the taxable year in which the trust acquired such property” for “on the date which is 2 years after the date the trust acquired such property”, was executed by making the substitution for “on the date which is 2 years after the date such trust acquired such property” to reflect the probable intent of Congress. - § 856(e)(3): Pub. L. 105–34, § 1257(a)(2), substituted “grant one extension” for “grant one or more extensions” and “Any such extension shall not extend the grace period beyond the close of the 3d taxable year following the last taxable year in the period under paragraph (2).” for “Any such extension shall not extend the grace period beyond the date which is 6 years after the date such trust acquired such property.” - § 856(e)(4): Pub. L. 105–34, § 1257(c), inserted concluding provisions “For purposes of subparagraph (C), property shall not be treated as used in a trade or business by reason of any activities of the real estate investment trust with respect to such property to the extent that such activities would not result in amounts received or accrued, directly or indirectly, with respect to such property being treated as other than rents from real property.” - § 856(e)(5): Pub. L. 105–34, § 1257(b), substituted “A real estate investment trust may revoke any such election for a taxable year by filing the revocation (in the manner provided by the Secretary) on or before the due date (including any extension of time) for filing its return of tax under this chapter for the taxable year. If a trust revokes an election for any property, no election may be made by the trust under this paragraph with respect to the property for any subsequent taxable year.” for “Any such election shall be irrevocable.” - § 856(i)(2): Pub. L. 105–34, § 1262, struck out “at all times during the period such corporation was in existence” after “real estate investment trust”. - § 856(j)(4): Pub. L. 105–34, § 1261(a), added par. (4). Former par. (4) redesignated (5). - § 856(j)(5): Pub. L. 105–34, § 1261(a), redesignated par. (4) as (5). - § 856(j)(5)(A)(ii): Pub. L. 105–34, § 1261(b), inserted before period at end “or appreciation in value as of any specified date”. - § 856(k): Pub. L. 105–34, § 1251(b)(1), added subsec. (k). ## § 857: Taxation of real estate investment trusts and their beneficiaries - § 857(a)(2), § 857(a): Pub. L. 105–34, § 1251(a)(1), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “the real estate investment trust complies for such year with regulations prescribed by the Secretary for the purpose of ascertaining the actual ownership of the outstanding shares, or certificates of beneficial interest, of such trust, and”. - § 857(b)(3)(D), § 857(b)(3)(E): Pub. L. 105–34, § 1254(a), added subpar. (D) and redesignated former subpar. (D) as (E). - § 857(b)(5): Pub. L. 105–34, § 1255(b)(2), substituted “section 856(c)(6)” for “section 856(c)(7)” in introductory provisions. - § 857(b)(6)(C): Pub. L. 105–34, § 1255(b)(3), substituted “section 856(c)(5)(B)” for “section 856(c)(6)(B)” in introductory provisions. - § 857(b)(6)(C)(iii): Pub. L. 105–34, § 1260, substituted “(other than sales of foreclosure property or sales to which section 1033 applies)” for “(other than foreclosure property)” in subcls. (I) and (II). - § 857(b)(7)(A): Pub. L. 105–34, § 1254(b)(1), substituted “subparagraph (B) or (D)” for “subparagraph (B)”. - § 857(d)(3): Pub. L. 105–34, § 1256, added par. (3). - § 857(e)(2)(B), § 857(e)(2)(C), § 857(e)(2)(D): Pub. L. 105–34, § 1259, redesignated subpar. (C) as (B) and substituted a comma for period at end, added subpars. (C) and (D), and struck out former subpar. (B) which read as follows: “in the case of a real estate investment trust using the cash receipts and disbursements method of accounting, the amount (if any) by which— - § 857(f), § 857(g): Pub. L. 105–34, § 1251(a)(2), added subsec. (f) and redesignated former subsec. (f) as (g). ## § 861: Income from sources within the United States - § 861(a)(3): Pub. L. 105–34 inserted concluding provisions “In addition, except for purposes of sections 79 and 105 and subchapter D, compensation for labor or services performed in the United States shall not be deemed to be income from sources within the United States if the labor or services are performed by a nonresident alien individual in connection with the individual’s temporary presence in the United States as a regular member of the crew of a foreign vessel engaged in transportation between the United States and a foreign country or a possession of the United States.” ## § 863: Special rules for determining source - § 863(c)(2)(B): Pub. L. 105–34 inserted concluding provisions “In the case of transportation income derived from, or in connection with, a vessel, this subparagraph shall only apply if the taxpayer is a citizen or resident alien.” ## § 864: Definitions and special rules - § 864(b)(2)(A)(ii): Pub. L. 105–34 struck out “, or in the case of a corporation (other than a corporation which is, or but for section 542(c)(7), 542(c)(10), or 543(b)(1)(C) would be, a personal holding company) the principal business of which is trading in stocks or securities for its own account, if its principal office is in the United States” after “dealer in stocks or securities”. ## § 877: Expatriation to avoid tax - § 877(d)(2)(B): Pub. L. 105–34, § 1602(g)(1), substituted “the 10-year period beginning on the date the individual loses United States citizenship” for “the 10-year period described in subsection (a)” in introductory provisions. - § 877(d)(2)(D): Pub. L. 105–34, § 1602(g)(2), inserted at end “In the case of any exchange occurring during such 5 years, any gain recognized under this subparagraph shall be recognized immediately after such loss of citizenship.” - § 877(d)(3): Pub. L. 105–34, § 1602(g)(3), inserted “and the period applicable under paragraph (2)” after “subsection (a)” in introductory provisions. - § 877(d)(4)(A): Pub. L. 105–34, § 1602(g)(4)(C), struck out “during the 10-year period referred to in subsection (a),” before “any income or gain” in concluding provisions. - § 877(d)(4)(A)(i): Pub. L. 105–34, § 1602(g)(4)(A), inserted “during the 10-year period beginning on the date the individual loses United States citizenship” after “contributes property”. - § 877(d)(4)(A)(ii): Pub. L. 105–34, § 1602(g)(4)(B), inserted “immediately before such contribution” after “from such property”. - § 877(e)(1): Pub. L. 105–34, § 1602(h)(3), substituted “6039G” for “6039F” in concluding provisions. ## § 894: Income affected by treaty - § 894(c): Pub. L. 105–34 added subsec. (c). ## § 901: Taxes of foreign countries and of possessions of United States - § 901(k): Pub. L. 105–34, § 1053(a), added subsec. (k). Former subsec. (k) redesignated (l). - § 901(l): Pub. L. 105–34, § 1053(a), redesignated subsec. (k) as (l). - § 901(l)(4): Pub. L. 105–34, § 1142(e)(4), which directed amendment of subsec. (k)(4) by substituting “foreign corporation or partnership” for “foreign corporation”, was executed to subsec. (l)(4) to reflect the probable intent of Congress and the redesignation of subsec. (k) as (l) by Pub. L. 105–34, § 1053(a). See above. ## § 904: Limitation on credit - § 904(b)(2)(C): Pub. L. 105–34, § 311(c)(3), added subpar. (C). - § 904(d)(1): Pub. L. 105–34, § 1105(a)(1), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “in the case of a corporation, dividends from each noncontrolled section 902 corporation,”. - § 904(d)(2)(C)(i)(II): Pub. L. 105–34, § 1163(b), substituted “subclauses (I) and (III)” for “subclause (I)”. - § 904(d)(2)(C)(iii): Pub. L. 105–34, § 1105(a)(3), inserted “out of earnings and profits accumulated in taxable years beginning before January 1, 2003” after “corporation”. - § 904(d)(2)(E)(i): Pub. L. 105–34, § 1111(b), struck out “and except as provided in regulations, the taxpayer was a United States shareholder in such corporation” after “was a controlled foreign corporation”. - § 904(d)(2)(E): Pub. L. 105–34, § 1105(a)(2), added cl. (iv). - § 904(d)(4), § 904(d)(5), § 904(d)(6): Pub. L. 105–34, § 1105(b), added par. (4) and redesignated former pars. (4) and (5) as (5) and (6), respectively. - § 904(j), § 904(k): Pub. L. 105–34, § 1101(a), added subsec. (j) and redesignated former subsec. (j) as (k). ## § 905: Applicable rules - § 905(c): Pub. L. 105–34 amended heading and text of subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “If accrued taxes when paid differ from the amounts claimed as credits by the taxpayer, or if any tax paid is refunded in whole or in part, the taxpayer shall notify the Secretary, who shall redetermine the amount of the tax for the year or years affected. The amount of tax due on such redetermination, if any, shall be paid by the taxpayer on notice and demand by the Secretary, or the amount of tax overpaid, if any, shall be credited or refunded to the taxpayer in accordance with subchapter B of chapter 66 (sec. 6511 and following). In the case of such a tax accrued but not paid, the Secretary, as a condition precedent to the allowance of this credit, may require the taxpayer to give a bond, with sureties satisfactory to and to be approved by the Secretary, in such sum as the Secretary may require, conditioned on the payment by the taxpayer of any amount of tax found due on any such redetermination; and the bond herein prescribed shall contain such further conditions as the Secretary may require. In such redetermination by the Secretary of the amount of tax due from the taxpayer for the year or years affected by a refund, the amount of the taxes refunded for which credit has been allowed under this section shall be reduced by the amount of any tax described in section 901 imposed by the foreign country or possession of the United States with respect to such refund; but no credit under this subpart, and no deduction under section 164 (relating to deduction for taxes) shall be allowed for any taxable year with respect to such tax imposed on the refund. No interest shall be assessed or collected on any amount of tax due on any redetermination by the Secretary, resulting from a refund to the taxpayer, for any period before the receipt of such refund, except to the extent interest was paid by the foreign country or possession of the United States on such refund for such period.” ## § 911: Citizens or residents of the United States living abroad - § 911(b)(2)(A): Pub. L. 105–34, § 1172(a)(1), substituted “equal to the exclusion amount for the calendar year in which such taxable year begins” for “of $70,000”. - § 911(b)(2)(D): Pub. L. 105–34, § 1172(a)(2), added subpar. (D). ## § 951: Amounts included in gross income of United States shareholders - § 951(a)(2): Pub. L. 105–34 inserted concluding provisions “For purposes of subparagraph (B), any gain included in the gross income of any person as a dividend under section 1248 shall be treated as a distribution received by such person with respect to the stock involved.” ## § 952: Subpart F income defined - § 952(b): Pub. L. 105–34 inserted at end “For purposes of this subsection, any exemption (or reduction) with respect to the tax imposed by section 884 shall not be taken into account.” ## § 954: Foreign base company income - § 954(c)(1)(B): Pub. L. 105–34, § 1051(a)(2), in concluding provisions, struck out “In the case of any regular dealer in property, gains and losses from the sale or exchange of any such property or arising out of bona fide hedging transactions reasonably necessary to the conduct of the business of being a dealer in such property shall not be taken into account under this subparagraph.” before “Gains and losses” and “also” after “section 1221(1)”. - § 954(c)(1)(F), § 954(c)(1)(G): Pub. L. 105–34, § 1051(a)(1), added subpars. (F) and (G). - § 954(c)(2)(C): Pub. L. 105–34, § 1051(b), added subpar. (C). - § 954(e)(2): Pub. L. 105–34, § 1175(b), added subpar. (C). - § 954(h): Pub. L. 105–34, § 1175(a), added subsec. (h). ## § 956: Investment of earnings in United States property - § 956(b)(1)(A): Pub. L. 105–34, § 1601(e), inserted “to the extent such amount was accumulated in prior taxable years” after “section 316(a)(1)”. - § 956(c)(2): Pub. L. 105–34, § 1173(a), added subpars. (J) and (K) and concluding provisions. ## § 960: Deemed paid credit for subpart F inclusions - § 960(a): Pub. L. 105–34 amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “For purposes of subpart A of this part, if there is included, under section 951(a), in the gross income of a domestic corporation any amount attributable to earnings and profits— ## § 961: Adjustments to basis of stock in controlled foreign corporations and of other property - § 961(c): Pub. L. 105–34 added subsec. (c). ## § 964: Miscellaneous provisions - § 964(e): Pub. L. 105–34 added subsec. (e). ## § 986: Determination of foreign taxes and foreign corporation’s earnings and profits - § 986(a): Pub. L. 105–34, § 1102(a)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: - § 986(a)(3), § 986(a)(4): Pub. L. 105–34, § 1102(b)(1), added par. (3) and redesignated former par. (3) as (4). ## § 988: Treatment of certain foreign currency transactions - § 988(e): Pub. L. 105–34 amended heading and text of subsec. (e) generally. Prior to amendment, text read as follows: “This section shall apply to section 988 transactions entered into by an individual only to the extent expenses properly allocable to such transactions meet the requirements of section 162 or 212 (other than that part of section 212 dealing with expenses incurred in connection with taxes).” ## § 989: Other definitions and special rules - § 989(b)(3), § 989(b)(4): Pub. L. 105–34, § 1102(b)(3), struck out “weighted” before “average exchange rate”. - § 989(c)(6): Pub. L. 105–34, § 1102(b)(2), added par. (6). ## § 1014: Basis of property acquired from a decedent - § 1014(a): Pub. L. 105–34 struck out “or” at end of pars. (1) and (2), struck out the period at end of par. (3) and inserted “, or”, and added par. (4). ## § 1016: Adjustments to basis - § 1016(a)(7): Pub. L. 105–34, § 312(d)(6), inserted “(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)” after “section 1034” and “(as so in effect)” after “section 1034(e)”. - § 1016(a)(23): Pub. L. 105–34, § 313(b)(1), substituted “, 1044, or 1045” for “or 1044” and “, 1044(d), or 1045(b)(4)” for “or 1044(d)”. - § 1016(a)(27): Pub. L. 105–34, § 701(b)(2), added par. (27). ## § 1031: Exchange of real property held for productive use or investment - § 1031(h): Pub. L. 105–34 amended heading and text of subsec. (h) generally. Prior to amendment, text read as follows: “For purposes of this section, real property located in the United States and real property located outside the United States are not property of a like kind.” ## § 1033: Involuntary conversions - § 1033(e): Pub. L. 105–34, § 913(b), inserted “, flood, or other weather-related conditions” after “drought” in heading and “, flood, or other weather-related conditions” before period at end of text. - § 1033(h)(4): Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”. - § 1033(i): Pub. L. 105–34, § 1087(a), amended heading and text of subsec. (i) generally. Prior to amendment, text read as follows: - § 1033(k)(3): Pub. L. 105–34, § 312(d)(7), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “For one-time exclusion from gross income of gain from involuntary conversion of principal residence by individual who has attained age 55, see section 121.” ## § 1035: Certain exchanges of insurance policies - § 1035(c), § 1035(d): Pub. L. 105–34 added subsec. (c) and redesignated former subsec. (c) as (d). ## § 1036: Stock for stock of same corporation - § 1036(b), § 1036(c): Pub. L. 105–34 added subsec. (b) and redesignated former subsec. (b) as (c). ## § 1038: Certain reacquisitions of real property - § 1038(e): Pub. L. 105–34 amended heading and text of subsec. (e) generally. Prior to amendment, text read as follows: “If— ## § 1042: Sales of stock to employee stock ownership plans or certain cooperatives - § 1042(g): Pub. L. 105–34 added subsec. (g). ## § 1045: Rollover of gain from qualified small business stock to another qualified small business stock - Enacted 26 U.S.C. § 1045. ## § 1059: Corporate shareholder’s basis in stock reduced by nontaxed portion of extraordinary dividends - § 1059(a)(2): Pub. L. 105–34, § 1011(a), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “In addition to any gain recognized under this chapter, there shall be treated as gain from the sale or exchange of any stock for the taxable year in which the sale or disposition of such stock occurs an amount equal to the aggregate nontaxed portions of any extraordinary dividends with respect to such stock which did not reduce the basis of such stock by reason of the limitation on reducing basis below zero.” - § 1059(d)(1): Pub. L. 105–34, § 1011(c), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: - § 1059(d)(3): Pub. L. 105–34, § 1604(d)(1), substituted “subsection (a)” for “subsection (a)(2)”. - § 1059(e)(1): Pub. L. 105–34, § 1011(b), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “Except as otherwise provided in regulations, in the case of any redemption of stock which is— - § 1059(e)(1)(A)(iii): Pub. L. 105–34, § 1013(b), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “which would not have been treated (in whole or in part) as a dividend if any options had not been taken into account under section 318(a)(4).” ## § 1092: Straddles - § 1092(f)(2): Pub. L. 105–34 substituted “The” for “Except for purposes of section 851(b)(3), the”. ## § 1223: Holding period of property - § 1223(7): Pub. L. 105–34, § 312(d)(9), inserted “(as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997)” after “section 1034”. - § 1223(15), § 1223: Pub. L. 105–34, § 313(b)(2), added par. (15) and redesignated former par. (15) as (16). ## § 1233: Gains and losses from short sales - § 1233(h): Pub. L. 105–34 added subsec. (h). ## § 1234A: Gains or losses from certain terminations - § 1234A(1): Pub. L. 105–34 substituted “property” for “personal property (as defined in section 1092(d)(1))”. ## § 1239: Gain from sale of depreciable property between certain related taxpayers - § 1239(b)(3): Pub. L. 105–34 added par. (3). ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a)(2)(C), § 1245(a)(3)(C): Pub. L. 105–34 inserted “179A,” after “179,”. ## § 1250: Gain from dispositions of certain depreciable realty - § 1250(d)(7), § 1250(d): Pub. L. 105–34, § 312(d)(10)(A), redesignated pars. (9) and (10) as (7) and (8), respectively, and struck out heading and text of former par. (7). Text read as follows: “Subsection (a) shall not apply to a disposition of— - § 1250(e): Pub. L. 105–34, § 312(d)(10)(B), struck out heading and text of par. (3). Text read as follows: “If the basis of property acquired in a transaction described in paragraph (7) of subsection (d) is determined by reference to the basis in the hands of the taxpayer of other property, then the holding period of the property acquired shall include the holding period of such other property.” ## § 1259: Constructive sales treatment for appreciated financial positions - Enacted 26 U.S.C. § 1259. ## § 1271: Treatment of amounts received on retirement or sale or exchange of debt instruments - § 1271(b): Pub. L. 105–34 amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “This section shall not apply to— ## § 1272: Current inclusion in income of original issue discount - § 1272(a)(6)(C): Pub. L. 105–34 added cl. (iii) and concluding provisions. ## § 1274: Determination of issue price in the case of certain debt instruments issued for property - § 1274(c)(3)(B): Pub. L. 105–34 substituted “section 121” for “section 1034”. ## § 1291: Interest on tax deferral - § 1291(a)(3)(A): Pub. L. 105–34, § 1122(b)(3), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “The taxpayer’s holding period shall be determined under section 1223; except that, for purposes of applying this section to an excess distribution, such holding period shall be treated as ending on the date of such distribution.” - § 1291(d): Pub. L. 105–34, § 1122(b)(2), substituted “subparts B and C” for “subpart B” in heading. - § 1291(d)(1): Pub. L. 105–34, § 1122(b)(1), inserted concluding provisions. ## § 1293: Current taxation of income from qualified electing funds - § 1293(a)(1), § 1293(d): Pub. L. 105–34 substituted “section 1298(a)” for “section 1297(a)”. ## § 1296: Election of mark to market for marketable stock - Enacted 26 U.S.C. § 1296. ## § 1297: Passive foreign investment company - § 1297: Pub. L. 105–34, § 1122(a), renumbered section 1296 of this title as this section. - § 1297(a): Pub. L. 105–34, § 1123(b)(2), struck out concluding provisions which read as follows: “In the case of a controlled foreign corporation (or any other foreign corporation if such corporation so elects), the determination under paragraph (2) shall be based on the adjusted bases (as determined for purposes of computing earnings and profits) of its assets in lieu of their value. Such an election, once made, may be revoked only with the consent of the Secretary.” - § 1297(a)(2): Pub. L. 105–34, § 1123(b)(1), substituted “(as determined in accordance with subsection (e))” for “(by value)”. - § 1297(b): Pub. L. 105–34, § 1122(d)(4), struck out par. (3) which consisted of subpars. (A) to (C) relating to treatment of certain dealers in securities. - § 1297(e): Pub. L. 105–34, § 1123(a), added subsec. (e) relating to methods for measuring assets. - § 1297(e): Pub. L. 105–34, § 1121, added subsec. (e) relating to exception for United States shareholders of controlled foreign corporations. ## § 1298: Special rules - § 1298: Pub. L. 105–34, § 1122(a), renumbered section 1297 of this title as this section. - § 1298(b)(1): Pub. L. 105–34, § 1122(e), inserted “(determined without regard to the preceding sentence)” after “investment company” in last sentence. ## § 1301: Averaging of farm income - Enacted 26 U.S.C. § 1301. ## § 1361: S corporation defined - § 1361(b)(1)(B): Pub. L. 105–34, § 1601(c)(4)(C), substituted “subsection (c)(6)” for “subsection (c)(7)”. - § 1361(b)(3)(A): Pub. L. 105–34, § 1601(c)(3), substituted “Except as provided in regulations prescribed by the Secretary, for purposes of this title” for “For purposes of this title”. - § 1361(c)(6), § 1361(c): Pub. L. 105–34, § 1601(c)(4)(B), redesignated par. (7) as (6). - § 1361(e)(1)(B)(iii): Pub. L. 105–34, § 1601(c)(1), added cl. (iii). ## § 1374: Tax imposed on certain built-in gains - § 1374(d)(7): Pub. L. 105–34 inserted at end “For purposes of applying this section to any amount includible in income by reason of section 593(e), the preceding sentence shall be applied without regard to the phrase ‘10-year’.” ## § 1391: Designation procedure - § 1391(b)(2): Pub. L. 105–34, § 951(a)(3), substituted “1,000,000” for “750,000”. - § 1391(b)(2): Pub. L. 105–34, § 951(a)(2), which directed substitution of “8” for “6”, was executed by making the substitution both places “6” appeared, to reflect the probable intent of Congress. - § 1391(b)(2): Pub. L. 105–34, § 951(a)(1), substituted “11” for “9”. - § 1391(c): Pub. L. 105–34, § 952(d)(2), substituted “subsection (a)” for “this section”. - § 1391(e), § 1391(f): Pub. L. 105–34, § 952(d)(1), substituted “this section” for “subsection (a)” in introductory provisions. - § 1391(g): Pub. L. 105–34, § 952(a), added subsec. (g). ## § 1392: Eligibility criteria - § 1392(d): Pub. L. 105–34 added subsec. (d). ## § 1394: Tax-exempt enterprise zone facility bonds - § 1394(b)(2): Pub. L. 105–34, § 955(b), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘qualified zone property’ has the meaning given such term by section 1397C; except that the references to empowerment zones shall be treated as including references to enterprise communities.” - § 1394(b)(3): Pub. L. 105–34, § 955(b), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The term ‘enterprise zone business’ has the meaning given to such term by section 1397B, except that— - § 1394(f): Pub. L. 105–34, § 953(a), added subsec. (f). ## § 1396: Empowerment zone employment credit - § 1396(b): Pub. L. 105–34 substituted “For purposes of this section— - § 1396: Pub. L. 105–34, § 952(b), added subsec. (e). ## § 1397A: Increase in expensing under section 179 - § 1397A(c): Pub. L. 105–34 added subsec. (c). ## § 1397C: Enterprise zone business defined - § 1397C(b)(2): Pub. L. 105–34, § 956(a)(1), substituted “50 percent” for “80 percent”. - § 1397C(b)(3): Pub. L. 105–34, § 956(a)(2), substituted “a substantial portion” for “substantially all”. - § 1397C(b)(4): Pub. L. 105–34, § 956(a)(2), (3), substituted “a substantial portion” for “substantially all” and struck out “, and exclusively related to,” after “entity is used in”. - § 1397C(b)(5): Pub. L. 105–34, § 956(a)(2), substituted “a substantial portion” for “substantially all”. - § 1397C(c)(1): Pub. L. 105–34, § 956(a)(1), substituted “50 percent” for “80 percent”. - § 1397C(c)(2): Pub. L. 105–34, § 956(a)(2), substituted “a substantial portion” for “substantially all”. - § 1397C(c)(3): Pub. L. 105–34, § 956(a)(2), (3), substituted “a substantial portion” for “substantially all” and struck out “, and exclusively related to,” after “business is used in”. - § 1397C(c)(4): Pub. L. 105–34, § 956(a)(2), substituted “a substantial portion” for “substantially all”. - § 1397C(d)(2): Pub. L. 105–34, § 956(a)(4), inserted concluding provisions. - § 1397C(d)(3): Pub. L. 105–34, § 956(a)(5), substituted “at least 50 percent” for “substantially all”. - § 1397C(f): Pub. L. 105–34, § 956(a)(6), added subsec. (f). ## § 1397F: Regulations - § 1397F: Pub. L. 105–34, § 226(a), as amended by Pub. L. 105–206, renumbered section 1397D of this title as this section. ## § 1402: Definitions - § 1402(k): Pub. L. 105–34 added subsec. (k). ## § 1441: Withholding of tax on nonresident aliens - § 1441(g): Pub. L. 105–34 substituted “85 percent” for “one-half”. ## § 1445: Withholding of tax on dispositions of United States real property interests - § 1445(e)(1): Pub. L. 105–34 substituted “20 percent” for “28 percent” in introductory provisions. ## § 2001: Imposition and rate of tax - § 2001(c): Pub. L. 105–34, § 501(a)(1)(D), substituted “the amount at which the average tax rate under this section is 55 percent” for “$21,040,000”. - § 2001(f): Pub. L. 105–34, § 506(a), added subsec. (f). ## § 2010: Unified credit against estate tax - § 2010(a): Pub. L. 105–34, § 501(a)(1)(A), substituted “the applicable credit amount” for “$192,800”. - § 2010(c), § 2010(d): Pub. L. 105–34, § 501(a)(1)(B), added subsec. (c) and redesignated former subsec. (c) as (d). ## § 2013: Credit for tax on prior transfers - § 2013: Pub. L. 105–34 struck out heading and text of subsec. (g). Prior to amendment, text read as follows: “For purposes of this section, the estate tax paid shall not include any portion of such tax attributable to section 4980A(d).” ## § 2031: Definition of gross estate - § 2031(c), § 2031(d): Pub. L. 105–34 added subsec. (c) and redesignated former subsec. (c) as (d). ## § 2032A: Valuation of certain farm, etc., real property - § 2032A(a)(3): Pub. L. 105–34, § 501(b), added par. (3). - § 2032A(b)(5)(A): Pub. L. 105–34, § 504(b), struck out at end “For purposes of subsection (c), such surviving spouse shall not be treated as failing to use such property in a qualified use solely because such spouse rents such property to a member of such spouse’s family on a net cash basis.” - § 2032A(c)(7)(E): Pub. L. 105–34, § 504(a), added subpar. (E). - § 2032A(c)(8): Pub. L. 105–34, § 508(c), added par. (8). - § 2032A(d)(3): Pub. L. 105–34, § 1313(a), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The Secretary shall prescribe procedures which provide that in any case in which— ## § 2035: Adjustments for certain gifts made within 3 years of decedent’s death - § 2035: Pub. L. 105–34 amended section catchline and text generally. Prior to amendment, section consisted of subsecs. (a) to (d) relating to adjustments for gifts made within 3 years of decedent’s death. ## § 2053: Expenses, indebtedness, and taxes - § 2053(c)(1)(B): Pub. L. 105–34, § 1073(b)(3), struck out at end “This subparagraph shall not apply to any increase in the tax imposed by this chapter by reason of section 4980A(d).” - § 2053(c)(1)(D): Pub. L. 105–34, § 503(b)(1), added subpar. (D). ## § 2055: Transfers for public, charitable, and religious uses - § 2055(a)(5): Pub. L. 105–34, § 1530(c)(7), added par. (5). - § 2055(e)(3)(G): Pub. L. 105–34, § 1089(b)(5), inserted “(or other proceeding pursuant to subparagraph (J)” after “reformation”. - § 2055(e)(3)(J): Pub. L. 105–34, § 1089(b)(3), added subpar. (J). ## § 2056: Bequests, etc., to surviving spouse - § 2056(b)(7)(C): Pub. L. 105–34, § 1311(a), inserted “(or, in the case of an interest in an annuity arising under the community property laws of a State, included in the gross estate of the decedent under section 2033)” after “section 2039”. - § 2056(b)(8): Pub. L. 105–34, § 1530(c)(8), amended par. (8) generally. Prior to amendment, par. (8) read as follows: ## § 2056A: Qualified domestic trust - § 2056A(a)(1)(A): Pub. L. 105–34, § 1314(a), inserted “except as provided in regulations prescribed by the Secretary,” before “requires”. - § 2056A(c)(3): Pub. L. 105–34, § 1312(a), added par. (3). ## § 2102: Credits against tax - § 2102: Pub. L. 105–34 substituted “the applicable credit amount in effect under section 2010(c) for the calendar year which includes the date of death” for “$192,800”. ## § 2105: Property without the United States - § 2105(b)(4): Pub. L. 105–34 added par. (4). ## § 2107: Expatriation to avoid tax - § 2107(c)(2)(B)(i): Pub. L. 105–34, § 1602(g)(6)(A), substituted “such foreign country as the value of the property subjected to such taxes by such foreign country and” for “such foreign country in respect of property included in the gross estate as the value of the property”. - § 2107(c)(2)(C): Pub. L. 105–34, § 1602(g)(6)(B), amended heading and text of subpar. (C) generally. Prior to amendment, text read as follows: “For purposes of subparagraph (B), a property’s proportionate share is the percentage of the value of the property which is included in the gross estate solely by reason of subsection (b) bears to the total value of the gross estate.” ## § 2207A: Right of recovery in the case of certain marital deduction property - § 2207A(a)(2): Pub. L. 105–34 amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “Paragraph (1) shall not apply if the decedent otherwise directs by will.” ## § 2207B: Right of recovery where decedent retained interest - § 2207B(a)(2): Pub. L. 105–34 amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “Paragraph (1) shall not apply if the decedent otherwise directs in a provision of his will (or a revocable trust) specifically referring to this section.” ## § 2501: Imposition of tax - § 2501(a)(3): Pub. L. 105–34 substituted “donor” for “decedent”. ## § 2503: Taxable gifts - § 2503(b): Pub. L. 105–34 designated existing provisions as par. (1), inserted par. heading, realigned margins, and added par. (2). ## § 2504: Taxable gifts for preceding calendar periods - § 2504(c): Pub. L. 105–34 struck out “, and if a tax under this chapter or under corresponding provisions of prior laws has been assessed or paid for such preceding calendar period” after “as defined in section 2502(b)”. ## § 2505: Unified credit against gift tax - § 2505(a)(1): Pub. L. 105–34 substituted “the applicable credit amount in effect under section 2010(c) for such calendar year” for “$192,800”. ## § 2523: Gift to spouse - § 2523(g)(1): Pub. L. 105–34 substituted “qualified charitable remainder trust” for “qualified remainder trust”. ## § 2612: Taxable termination; taxable distribution; direct skip - § 2612(c)(2): Pub. L. 105–34, § 511(b)(2), substituted “section 2651(f)(2)” for “section 2651(e)(2)”. - § 2612(c)(2): Pub. L. 105–34, § 511(b)(1), redesignated par. (3) as (2) and struck out heading and text of former par. (2). Text read as follows: “For purposes of determining whether any transfer is a direct skip, if— - § 2612(c): Pub. L. 105–34, § 511(b)(1), redesignated par. (3) as (2). ## § 2631: GST exemption - § 2631(c): Pub. L. 105–34 added subsec. (c). ## § 2651: Generation assignment - § 2651(e), § 2651(f): Pub. L. 105–34 added subsec. (e) and redesignated former subsec. (e) as (f). ## § 2652: Other definitions - § 2652(b)(1): Pub. L. 105–34 inserted at end “Such term shall not include any trust during any period the trust is treated as part of an estate under section 646.” ## § 3301: Rate of tax - § 3301: Pub. L. 105–34, § 1035(1), substituted “2007” for “1998”. - § 3301: Pub. L. 105–34, § 1035(2), substituted “2008” for “1999”. ## § 4041: Imposition of tax - § 4041(a)(1)(A): Pub. L. 105–34, § 902(b)(1), substituted “or a diesel-powered train” for “, a diesel-powered train, or a diesel-powered boat” in cls. (i) and (ii) and “vehicle or train” for “vehicle, train, or boat” in cl. (i). - § 4041(a)(1): Pub. L. 105–34, § 902(b)(2), struck out heading and text of subpar. (D). Text read as follows: “In the case of any sale for use, or use, of fuel in a diesel-powered motorboat— - § 4041(a)(2): Pub. L. 105–34, § 907(a)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “There is hereby imposed a tax on benzol, benzene, naphtha, liquefied petroleum gas, casing head and natural gasoline, or any other liquid (other than kerosene, gas oil, or fuel oil, or any product taxable under section 4081)— - § 4041(a)(2): Pub. L. 105–34, § 1601(f)(4)(B), substituted “section 4081(a)(2)(A)(i)” for “section 4081(a)(2)(A)” in concluding provisions. - § 4041(a)(2)(A): Pub. L. 105–34, § 1032(e)(1), struck out “kerosene,” after “(other than” in introductory provisions. - § 4041(c)(1): Pub. L. 105–34, § 1032(e)(2), substituted “kerosene and any other liquid” for “any liquid” in introductory provisions. - § 4041(c)(2): Pub. L. 105–34, § 1435(b), inserted “or by reason of section 4261(h)” before period at end. - § 4041(c)(3): Pub. L. 105–34, § 1031(a)(3), substituted “September 30, 2007” for “September 30, 1997”. - § 4041(d)(1): Pub. L. 105–34, § 907(a)(2), inserted “and other than liquefied natural gas” after “liquefied petroleum gas”. - § 4041(l): Pub. L. 105–34, § 1601(f)(4)(A), struck out “helicopter” after “certain” in heading and inserted “or a fixed-wing aircraft” after “helicopter” in text. - § 4041(m)(1)(A): Pub. L. 105–34, § 907(b), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the rate of the tax imposed by subsection (a)(2) shall be— ## § 4051: Imposition of tax on heavy trucks and trailers sold at retail - § 4051(b)(2)(B): Pub. L. 105–34, § 1401(a), substituted “$1,000” for “$200”. - § 4051(d): Pub. L. 105–34, § 1432(a), redesignated subsec. (e) as (d) and struck out former subsec. (d) which provided for a temporary reduction in tax on certain piggyback trailers. - § 4051: Pub. L. 105–34, § 1432(a), redesignated subsec. (e) as (d). - § 4051: Pub. L. 105–34, § 1401(a), amended heading and text of subsec. (e) generally. Prior to amendment, text read as follows: “In the case of any article taxable under subsection (a) on which tax was imposed under section 4061(a), subsection (a) shall be applied by substituting ‘2 percent’ for ‘12 percent’.” ## § 4052: Definitions and special rules - § 4052(b)(1)(B)(ii), § 4052(b)(1)(B)(iii), § 4052(b)(1)(B): Pub. L. 105–34, § 1402(b), inserted “and” at end of cl. (ii), redesignated cl. (iv) as (iii), and struck out former cl. (iii) which read as follows: “the fair market value (including any tax imposed by section 4071) at retail of any tires (not including any metal rim or rim base), and”. - § 4052(d): Pub. L. 105–34, § 1434(b)(1), substituted “rules of subsections (c) and (d) of section 4216 (relating to partial payments) shall apply” for “rules of— - § 4052(e): Pub. L. 105–34, § 1434(a), redesignated subsec. (f) as (e). - § 4052(f): Pub. L. 105–34, § 1434(a), added subsec. (f). Former subsec. (f) redesignated (e). - § 4052(g): Pub. L. 105–34, § 1434(b)(2), added subsec. (g). ## § 4081: Imposition of tax - § 4081(a)(2)(A)(iii): Pub. L. 105–34, § 1032(b), inserted “or kerosene” after “diesel fuel”. - § 4081(d)(2)(B): Pub. L. 105–34, § 1031(a)(2), substituted “September 30, 2007” for “September 30, 1997”. - § 4081(d)(3): Pub. L. 105–34, § 1033, substituted “shall apply after September 30, 1997, and before April 1, 2005” for “shall not apply after December 31, 1995”. ## § 4082: Exemptions for diesel fuel and kerosene - § 4082: Pub. L. 105–34, § 1032(e)(3)(A), inserted “and kerosene” after “diesel fuel” in section catchline. - § 4082(a), § 4082(c): Pub. L. 105–34, § 1032(c)(1), substituted “diesel fuel and kerosene” for “diesel fuel” in introductory provisions. - § 4082(d): Pub. L. 105–34, § 1032(c)(2), added subsec. (d). Former subsec. (d) redesignated (e). - § 4082(d): Pub. L. 105–34, § 1032(c)(1), substituted “diesel fuel and kerosene” for “diesel fuel”. - § 4082(e), § 4082(f): Pub. L. 105–34, § 1032(c)(2), redesignated subsecs. (d) and (e) as (e) and (f), respectively. ## § 4083: Definitions; special rule; administrative authority - § 4083(a)(1)(C): Pub. L. 105–34, § 1032(a), as amended by Pub. L. 105–206, § 6010(h)(1), added subpar. (C). - § 4083(a)(3): Pub. L. 105–34, § 902(b)(3), substituted “or a diesel-powered train” for “, a diesel-powered train, or a diesel-powered boat”. - § 4083(b): Pub. L. 105–34, § 1032(e)(4), substituted “taxable fuels” for “gasoline, diesel fuel,”. ## § 4101: Registration and bond - § 4101: Pub. L. 105–34 added subsec. (e). ## § 4131: Imposition of tax - § 4131(b): Pub. L. 105–34 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: ## § 4132: Definitions and special rules - § 4132(a)(1): Pub. L. 105–34, § 904(b), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “The term ‘taxable vaccine’ means any vaccine— - § 4132(a)(2), § 4132(a)(3), § 4132(a)(4), § 4132(a): Pub. L. 105–34, § 904(c), redesignated pars. (6) to (8) as (2) to (4), respectively, and struck out former pars. (2) to (5) which read as follows: ## § 4161: Imposition of tax - § 4161(b): Pub. L. 105–34 amended subsec. (b) generally. Prior to amendment, subsec. (b) consisted of pars. (1) to (3) imposing taxes on bows and arrows and parts and accessories and providing for coordination of taxes under subsecs. (a) and (b). ## § 4222: Registration - § 4222(b)(2): Pub. L. 105–34 substituted “Under regulations” for “Export” in heading and struck out “in the case of any sale or resale for export,” after “this paragraph,” in text. ## § 4251: Imposition of tax - § 4251(d): Pub. L. 105–34 added subsec. (d). ## § 4261: Imposition of tax - § 4261(a): Pub. L. 105–34, § 1031(c)(1), added subsec. (a) and struck out heading and text of former subsec. (a). Text read as follows: “There is hereby imposed upon the amount paid for taxable transportation (as defined in section 4262) of any person a tax equal to 10 percent of the amount so paid. In the case of amounts paid outside of the United States for taxable transportation, the tax imposed by this subsection shall apply only if such transportation begins and ends in the United States.” - § 4261(b): Pub. L. 105–34, § 1031(c)(1), added subsec. (b) and struck out heading and text of former subsec. (b). Text read as follows: “There is hereby imposed upon the amount paid for seating or sleeping accommodations in connection with transportation and with respect to which a tax is imposed by subsection (a), a tax equal to 10 percent of the amount so paid.” - § 4261(c): Pub. L. 105–34, § 1031(c)(1), added subsec. (c) and struck out heading and text of former subsec. (c). Text read as follows: “There is hereby imposed a tax of $6 upon any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins in the United States. This subsection shall not apply to any transportation all of which is taxable under subsection (a) (determined without regard to sections 4281 and 4282).” - § 4261(e), § 4261(f): Pub. L. 105–34, § 1031(c)(2), added subsec. (e) and redesignated former subsec. (e) as (f). Former subsec. (f) redesignated (g). - § 4261(g): Pub. L. 105–34, § 1031(c)(2), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h). - § 4261(g)(1): Pub. L. 105–34, § 1031(b)(1), substituted “September 30, 2007” for “September 30, 1997”. - § 4261(g)(2): Pub. L. 105–34, § 1601(f)(4)(D), inserted “on that flight” after “dedicated”. - § 4261(h): Pub. L. 105–34, § 1435(a), added subsec. (h). Former subsec. (h) redesignated (i). - § 4261(h): Pub. L. 105–34, § 1031(c)(2), redesignated subsec. (g) as (h). - § 4261(i): Pub. L. 105–34, § 1435(a), redesignated subsec. (h) as (i). ## § 4263: Special rules - § 4263(c): Pub. L. 105–34 substituted “subchapter, such tax shall be paid by the carrier providing the initial segment of such transportation which begins or ends in the United States.” for “subchapter— ## § 4271: Imposition of tax - § 4271(d)(1)(A)(ii): Pub. L. 105–34 substituted “September 30, 2007” for “September 30, 1997”. ## § 4681: Imposition of tax - § 4681(b)(1)(B): Pub. L. 105–34 added subpar. (B) and struck out heading and text of former subpar. (B). Text read as follows: “The base tax amount for purposes of subparagraph (A) with respect to any sale or use during a calendar year before 1996 with respect to any ozone-depleting chemical is the amount determined under the following table for such calendar year: - § 4681(b)(1): Pub. L. 105–34 struck out heading and text of subpar. (C). Text read as follows: “The base tax amount for purposes of subparagraph (A) with respect to any sale or use of an ozone-depleting chemical during a calendar year after the last year specified in the table under subparagraph (B) applicable to such chemical shall be the base tax amount for such last year increased by 45 cents for each year after such last year.” ## § 4682: Definitions and special rules - § 4682(d)(1): Pub. L. 105–34, § 903(a), substituted “recycled Halon-1301 or recycled Halon-2402” for “recycled halon”. - § 4682(g): Pub. L. 105–34, § 1432(c)(2), amended subsec. (g) generally. Prior to amendment, subsec. (g) consisted of pars. (1) to (5) relating to taxes imposed during 1990 to 1993 on halons, chemicals used in rigid foam insulation, and methyl chloroform and taxes imposed on chemicals used as propellants in metered-dose inhalers. ## § 4947: Application of taxes to certain nonexempt trusts - § 4947(b)(4): Pub. L. 105–34 added par. (4). ## § 4962: Abatement of first tier taxes in certain cases - § 4962(b): Pub. L. 105–34 substituted “subchapter A, C, or D” for “subchapter A or C”. ## § 4972: Tax on nondeductible contributions to qualified employer plans - § 4972(c)(6)(B): Pub. L. 105–34 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “contributions to 1 or more defined contribution plans which are not deductible when contributed solely because of section 404(a)(7), but only to the extent such contributions do not exceed 6 percent of compensation (within the meaning of section 404(a)) paid or accrued (during the taxable year for which the contributions were made) to beneficiaries under the plans.” ## § 4973: Tax on excess contributions to certain tax-favored accounts and annuities - § 4973(a)(4): Pub. L. 105–34, § 213(d)(1), added par. (4). - § 4973(e): Pub. L. 105–34, § 213(d)(2), added subsec. (e). - § 4973(f): Pub. L. 105–34, § 302(b), as amended by Pub. L. 105–206, § 6005(b)(8)(C), added subsec. (f). ## § 4975: Tax on prohibited transactions - § 4975(a): Pub. L. 105–34, § 1074(a), substituted “15 percent” for “10 percent”. - § 4975(c)(4): Pub. L. 105–34, § 1602(a)(5), substituted “if section 220(e)(2) applies to such transaction.” for “if, with respect to such transaction, the account ceases to be a medical savings account by reason of the application of section 220(e)(2) to such account.” - § 4975(c)(5): Pub. L. 105–34, § 213(b)(2), added par. (5). - § 4975(d): Pub. L. 105–34, § 1506(b)(1)(B)(ii), struck out concluding provisions which read as follows: “The exemptions provided by this subsection (other than paragraphs (9) and (12)) shall not apply to any transaction with respect to a trust described in section 401(a) which is part of a plan providing contributions or benefits for employees some or all of whom are owner-employees (as defined in section 401(c)(3)) in which a plan directly or indirectly lends any part of the corpus or income of the plan to, pays any compensation for personal services rendered to the plan to, or acquires for the plan any property from or sells any property to, any such owner-employee, a member of the family (as defined in section 267(c)(4)) of any such owner-employee, or a corporation controlled by any such owner-employee through the ownership, directly or indirectly, of 50 percent or more of the total combined voting power of all classes of stock entitled to vote or 50 percent or more of the total value of shares of all classes of stock of the corporation. For purposes of the preceding sentence, a shareholder-employee (as defined in section 1379, as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982), a participant or beneficiary of an individual retirement account or an individual retirement annuity (as defined in section 408), and an employer or association of employees which establishes such an account or annuity under section 408(c) shall be deemed to be an owner-employee.” - § 4975(d): Pub. L. 105–34, § 1506(b)(1)(B)(i), substituted “Except as provided in subsection (f)(6), the prohibitions” for “The prohibitions” in introductory provisions. - § 4975(e)(1)(D), § 4975(e)(1)(E), § 4975(e)(1)(F): Pub. L. 105–34, § 213(b)(1), struck out “or” at end of subpar. (D), added subpar. (E), and redesignated former subpar. (E) as (F). - § 4975(e)(7): Pub. L. 105–34, § 1530(c)(10), inserted “and section 664(g)” after “section 409(n)” in concluding provisions. - § 4975(f)(6): Pub. L. 105–34, § 1506(b)(1)(A), added par. (6). ## § 4978: Tax on certain dispositions by employee stock ownership plans and certain cooperatives - § 4978(a): Pub. L. 105–34, § 1530(c)(11)(A), inserted “or acquired any qualified employer securities in a qualified gratuitous transfer to which section 664(g) applied” after “section 1042 applied” in introductory provisions. - § 4978(a)(2): Pub. L. 105–34, § 1530(c)(11)(B), inserted before comma at end “60 percent of the total value of all employer securities as of such disposition in the case of any qualified employer securities acquired in a qualified gratuitous transfer to which section 664(g) applied)”. - § 4978(b)(2): Pub. L. 105–34, § 1530(c)(12)(A), inserted “or acquired in the qualified gratuitous transfer to which section 664(g) applied” after “section 1042 applied” in introductory provisions. - § 4978(b)(2)(A): Pub. L. 105–34, § 1530(c)(12)(B), inserted “or to which section 664(g) applied” after “section 1042 applied”. - § 4978(c): Pub. L. 105–34, § 1530(c)(13), substituted “written statement described in section 664(g)(1)(E) or in section 1042(b)(3) (as the case may be)” for “written statement described in section 1042(b)(3)”. - § 4978(e)(2): Pub. L. 105–34, § 1530(c)(14), inserted before period at end “; except that such section shall be applied without regard to subparagraph (B) thereof for purposes of applying this section and section 4979A with respect to securities acquired in a qualified gratuitous transfer (as defined in section 664(g)(1))”. ## § 4979A: Tax on certain prohibited allocations of qualified securities - § 4979A(a): Pub. L. 105–34, § 1530(c)(15), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “If there is a prohibited allocation of qualified securities by any employee stock ownership plan or eligible worker-owned cooperative, there is hereby imposed a tax on such allocation equal to 50 percent of the amount involved.” - § 4979A(c): Pub. L. 105–34, § 1530(c)(16), amended heading and text of subsec. (c) generally. Prior to amendment, text read as follows: “The tax imposed by this section shall be paid by— - § 4979A(d), § 4979A(e): Pub. L. 105–34, § 1530(c)(17), added subsec. (d) and redesignated former subsec. (d) as (e). ## § 4980D: Failure to meet certain group health plan requirements - § 4980D(a): Pub. L. 105–34, § 1531(b)(2)(A), substituted “plans” for “plan portability, access, and renewability”. - § 4980D(c)(3)(B)(i)(I): Pub. L. 105–34, § 1531(b)(2)(B), substituted “9832(d)(3)” for “9805(d)(3)”. - § 4980D(d)(1): Pub. L. 105–34, § 1531(b)(2)(C), inserted “(other than a failure attributable to section 9811)” after “on any failure”. - § 4980D(d)(3): Pub. L. 105–34, § 1531(b)(2)(D), substituted “section 9832” for “section 9805”. - § 4980D(f)(1): Pub. L. 105–34, § 1531(b)(2)(E), substituted “section 9832(a)” for “section 9805(a)”. ## § 4982: Excise tax on undistributed income of regulated investment companies - § 4982(e)(6): Pub. L. 105–34 added par. (6). ## § 5008: Abatement, remission, refund, and allowance for loss or destruction of distilled spirits - § 5008(c)(1): Pub. L. 105–34 substituted “on which tax has been determined or paid” for “withdrawn from bonded premises on payment or determination of tax”. ## § 5041: Imposition and rate of tax - § 5041(b)(6): Pub. L. 105–34, § 908(a), added par. (6). - § 5041(c)(1): Pub. L. 105–34, § 908(b), inserted at end “In the case of wine described in subsection (b)(6), the preceding sentence shall be applied by substituting ‘5.6 cents’ for ‘90 cents’.” ## § 5044: Refund of tax on wine - § 5044: Pub. L. 105–34, § 1416(b)(2), struck out “unmerchantable” after “tax on” in section catchline. - § 5044(a): Pub. L. 105–34, § 1416(a), struck out “as unmerchantable” after “to bond” in introductory provisions. ## § 5053: Exemptions - § 5053(f): Pub. L. 105–34, § 1414(b), added subsec. (f). Former subsec. (f) redesignated (i). - § 5053(g): Pub. L. 105–34, § 1418(a), added subsec. (g). - § 5053(h): Pub. L. 105–34, § 1419(a), added subsec. (h). - § 5053(i): Pub. L. 105–34, § 1414(b), redesignated subsec. (f) as (i). ## § 5055: Drawback of tax - § 5055: Pub. L. 105–34 substituted “paid on such beer if there is such proof of exportation as the Secretary may by regulations require.” for “found to have been paid on such beer, to be paid on submission of such evidence, records and certificates indicating exportation, as the Secretary may by regulations prescribe.” ## § 5056: Refund and credit of tax, or relief from lia­bility - § 5056(c): Pub. L. 105–34, § 1414(c)(1), added subsec. (c). Former subsec. (c) redesignated (d). - § 5056(d): Pub. L. 105–34 redesignated subsec. (c) as (d) and substituted “rendering unmerchantable, or receipt on the bonded premises of a distilled spirits plant” for “or rendering unmerchantable”. ## § 5175: Export bonds - § 5175(c): Pub. L. 105–34 substituted “if there is such proof of exportation as the Secretary may by regulations require.” for “on the submission of such evidence, records, and certification indicating exportation as the Secretary may by regulations prescribe.” ## § 5207: Records and reports - § 5207(c): Pub. L. 105–34 struck out “shall be kept on the premises where the operations covered by the record are carried on and” after “required by subsection (b)”. ## § 5222: Production, receipt, removal, and use of distilling materials - § 5222(b)(2): Pub. L. 105–34 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “conveyed without payment of tax from contiguous brewery premises where produced; or”. ## § 5361: Bonded wine cellar operations - § 5361: Pub. L. 105–34 struck out “unmerchantable” after “premises receive”. ## § 5364: Wine imported in bulk - Enacted 26 U.S.C. § 5364. ## § 5384: Amelioration and sweetening limitations for natural fruit and berry wines - § 5384(b)(2)(D): Pub. L. 105–34 substituted “any fruit or berry with a natural fixed acid of 20 parts per thousand or more (before any correction of such fruit or berry)” for “loganberries, currants, or gooseberries,”. ## § 5388: Designation of wines - § 5388(c): Pub. L. 105–34 added subsec. (c). ## § 5418: Beer imported in bulk - Enacted 26 U.S.C. § 5418. ## § 5681: Penalty relating to signs - § 5681(a): Pub. L. 105–34, § 1415(b)(1), struck out “, and every wholesale dealer in liquors,” after “spirits operations” and “section 5115(a) or” after “sign required by”. - § 5681(c): Pub. L. 105–34, § 1415(b)(2), substituted “on which no sign required by” for “or wholesale liquor establishment, on which no sign required by section 5115(a) or” and substituted “or who” for “or wholesale liquor establishment, or who”. ## § 6011: General requirement of return, statement, or list - § 6011(e)(2): Pub. L. 105–34 inserted at end “Notwithstanding the preceding sentence, the Secretary shall require partnerships having more than 100 partners to file returns on magnetic media.” ## § 6012: Persons required to make returns of income - § 6012(b)(6): Pub. L. 105–34, § 1225, added par. (6). - § 6012(c): Pub. L. 105–34, § 312(d)(11), substituted “(relating to gain from sale of principal residence)” for “(relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55)”. ## § 6018: Estate tax returns - § 6018(a)(1): Pub. L. 105–34, § 501(a)(1)(C), substituted “the applicable exclusion amount in effect under section 2010(c) for the calendar year which includes the date of death” for “$600,000”. - § 6018(a): Pub. L. 105–34, § 1073(b)(4), struck out par. (4) which read as follows: ## § 6019: Gift tax returns - § 6019(3): Pub. L. 105–34 added par. (3). ## § 6031: Return of partnership income - § 6031(b): Pub. L. 105–34, § 1223(a), inserted at end “In the case of an electing large partnership (as defined in section 775), such information shall be furnished on or before the first March 15 following the close of such taxable year.” - § 6031(e): Pub. L. 105–34, § 1141(a), added subsec. (e). ## § 6033: Returns by exempt organizations - § 6033(b)(10): Pub. L. 105–34, § 1603(b)(1)(A), in introductory provisions, substituted “the respective amounts (if any) of the taxes imposed on the organization, or any organization manager of the organization, during the taxable year under any of the following provisions (and the respective amounts (if any) of reimbursements paid by the organization during the taxable year with respect to taxes imposed on any such organization manager under any of such provisions):” for “the respective amounts (if any) of the taxes paid by the organization during the taxable year under the following provisions:”. - § 6033(b)(10)(C): Pub. L. 105–34, § 1603(b)(1)(B), inserted at end “except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded,”. - § 6033(b)(11): Pub. L. 105–34, § 1603(b)(2), amended par. (11) generally. Prior to amendment, par. (11) read as follows: “the respective amounts (if any) of the taxes paid by the organization, or any disqualified person with respect to such organization, during the taxable year under section 4958 (relating to taxes on private excess benefit from certain charitable organizations),”. ## § 6034A: Information to beneficiaries of estates and trusts - § 6034A(c): Pub. L. 105–34 added subsec. (c). ## § 6038: Information reporting with respect to certain foreign corporations and partnerships - § 6038: Pub. L. 105–34, § 1142(a), inserted “reporting” after “Information” and “and partnerships” after “corporations” in section catchline. - § 6038(a): Pub. L. 105–34, § 1142(a), reenacted heading without change. - § 6038(a)(1): Pub. L. 105–34, § 1142(a), reenacted heading without change and amended text generally. Prior to amendment, par. (1) consisted of subpars. (A) to (E) relating to general requirements of information with respect to foreign corporations. - § 6038(a)(2), § 6038(a)(3): Pub. L. 105–34, § 1142(e)(1)(A), substituted “foreign business entity” for “foreign corporation” in pars. (2) and (3). - § 6038(a)(5): Pub. L. 105–34, § 1142(d), added par. (5). - § 6038(b): Pub. L. 105–34, § 1142(c), (e)(1)(B), substituted “foreign business entity” for “foreign corporation” in par. (1), substituted “$10,000” for “$1,000” in pars. (1) and (2), and substituted “$50,000” for “$24,000” in par. (2). - § 6038(c)(1): Pub. L. 105–34, § 1142(e)(1)(C), (2), substituted “foreign business entity” for “foreign corporation” in introductory provisions and inserted “in the case of a foreign business entity which is a foreign corporation,” after “(B)” in subpar. (B). - § 6038(c)(2): Pub. L. 105–34, § 1142(e)(1)(C), substituted “foreign business entity” for “foreign corporation” in introductory provisions and in subpar. (B). - § 6038(d): Pub. L. 105–34, § 1142(e)(1)(D), substituted “foreign business entity” for “foreign corporation”. - § 6038(e): Pub. L. 105–34, § 1142(b), added pars. (1) and (3), redesignated former pars. (1) and (2) as (2) and (4), respectively, inserted “of corporation” after “Control” in par. (2) heading, and substituted “foreign business entity” for “foreign corporation” in two places in par. (4). ## § 6038B: Notice of certain transfers to foreign persons - § 6038B(a)(1): Pub. L. 105–34, § 1144(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “transfers property to a foreign corporation in an exchange described in section 332, 351, 354, 355, 356, or 361, or”. - § 6038B(b): Pub. L. 105–34, § 1144(b), added subsec. (b). Former subsec. (b) redesignated (c). - § 6038B(c): Pub. L. 105–34, § 1144(c), as amended by Pub. L. 105–206, § 6011(g), substituted “equal to 10 percent of the fair market value of the property at the time of the exchange (and, in the case of a contribution described in subsection (a)(1)(B), such person shall recognize gain as if the contributed property had been sold for such value at the time of such contribution)” for “equal to 25 percent of the amount of the gain realized on the exchange” in par. (1) and added par. (3). - § 6038B(c): Pub. L. 105–34, § 1144(b), redesignated subsec. (b) as (c). ## § 6039D: Returns and records with respect to certain fringe benefit plans - § 6039D(d)(1): Pub. L. 105–34 substituted “129, or 137” for “or 129”. ## § 6039G: Information on individuals losing United States citizenship - § 6039G: Pub. L. 105–34 renumbered section 6039F as this section. ## § 6041A: Returns regarding payments of remuneration for services and direct sales - § 6041A(d)(3): Pub. L. 105–34 added par. (3). ## § 6045: Returns of brokers - § 6045(e)(5): Pub. L. 105–34, § 312(c), added par. (5). - § 6045(f): Pub. L. 105–34, § 1021(a), added subsec. (f). ## § 6046: Returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock - § 6046(a): Pub. L. 105–34 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “A return complying with the requirements of subsection (b) shall be made by— ## § 6046A: Returns as to interests in foreign partnerships - § 6046A(a): Pub. L. 105–34, § 1143(a)(1), inserted at end “Paragraphs (1) and (2) shall apply to any acquisition or disposition only if the United States person directly or indirectly holds at least a 10-percent interest in such partnership either before or after such acquisition or disposition, and paragraph (3) shall apply to any change only if the change is equivalent to at least a 10-percent interest in such partnership.” - § 6046A(d), § 6046A(e): Pub. L. 105–34, § 1143(a)(2), added subsec. (d) and redesignated former subsec. (d) as (e). ## § 6048: Information with respect to certain foreign trusts - § 6048(b): Pub. L. 105–34, § 1601(i)(1), substituted “owner” for “grantor” in heading. - § 6048(d)(5): Pub. L. 105–34, § 1027(b), added par. (5). ## § 6050Q: Certain long-term care benefits - § 6050Q(b)(1): Pub. L. 105–34 inserted “, address, and phone number of the information contact” after “name”. ## § 6050R: Returns relating to certain purchases of fish - § 6050R: Pub. L. 105–34, § 1601(a)(2), provided that amendment made by section 1116(b)(1) of Pub. L. 104–188, shall be applied as if reference to chapter 68 were a reference to chapter 61. Section 1116(b)(1) of Pub. L. 104–188 directed amendment of subpart B of part III of subchapter A of chapter 68 by adding this section. - § 6050R(c)(1): Pub. L. 105–34, § 1601(a)(1), substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6050S: Returns relating to higher education tuition and related expenses - Enacted 26 U.S.C. § 6050S. - § 6050S(a)(2): Pub. L. 105–34, § 202(c)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “which is engaged in a trade or business and which, in the course of such trade or business, makes payments during any calendar year to any individual which constitute reimbursements or refunds (or similar amounts) of qualified tuition and related expenses of such individual,”. - § 6050S(b)(2)(A): Pub. L. 105–34, § 202(c)(2)(A), inserted “or interest” after “payments”. - § 6050S(b)(2)(C): Pub. L. 105–34, § 202(c)(2)(B), added cl. (iii). - § 6050S(e): Pub. L. 105–34, § 202(c)(3), inserted at end “, and except as provided in regulations, the term ‘qualified education loan’ has the meaning given such term by section 221(e)(1)”. ## § 6103: Confidentiality and disclosure of returns and return information - § 6103(d)(5): Pub. L. 105–34, § 976(c), added par. (5). - § 6103(e)(1)(A): Pub. L. 105–34, § 1201(b)(2), struck out “or 59(j)” after “section 1(g)”. - § 6103(h)(5), § 6103(h)(6): Pub. L. 105–34, § 1283(a), redesignated par. (6) as (5) and struck out heading and text of former par. (5). Text read as follows: “In connection with any judicial proceeding described in paragraph (4) to which the United States is a party, the Secretary shall respond to a written inquiry from an attorney of the Department of Justice (including a United States attorney) involved in such proceeding or any person (or his legal representative) who is a party to such proceeding as to whether an individual who is a prospective juror in such proceeding has or has not been the subject of any audit or other tax investigation by the Internal Revenue Service. The Secretary shall limit such response to an affirmative or negative reply to such inquiry.” - § 6103(k)(8): Pub. L. 105–34, § 1205(c)(1), added par. (8) relating to disclosure of information to administer section 6311. - § 6103(k)(8): Pub. L. 105–34, § 1026(a), added par. (8) relating to levies on certain government payments. - § 6103(l)(7)(D): Pub. L. 105–34, § 1023(a), which directed amendment of subsec. (l)(7)(D)(viii) by striking “1998” and inserting “2003”, was executed by substituting “2003” for “1998” after “Clause (viii) shall not apply after September 30,” in concluding provisions to reflect the probable intent of Congress. The word “1998” did not appear in subsec. (l)(7)(D)(viii). - § 6103(p)(3)(A): Pub. L. 105–34, § 1205(c)(3), which directed the substitution of “(6), or (8)” for “or (6)” was executed by substituting “(8), or (9)” for “or (8)”. See 1998 Amendment note above. - § 6103(p)(3)(A): Pub. L. 105–34, § 1026(b)(1)(A), substituted “(6), or (8)” for “or (6)”. - § 6103(p)(4): Pub. L. 105–34, § 1283(b), substituted “(h)(5)” for “(h)(6)” in introductory provisions and in subpar. (F)(ii). - § 6103(p)(4): Pub. L. 105–34, § 1026(b)(1)(B), inserted “(k)(8),” after “(j)(1) or (2),” in introductory provisions and in subpar. (F)(ii). ## § 6111: Disclosure of reportable transactions - § 6111: Pub. L. 105–34 added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively. ## § 6166: Extension of time for payment of estate tax where estate consists largely of interest in closely held business - § 6166(b)(7)(A)(iii): Pub. L. 105–34 substituted “2-percent” for “4-percent”. - § 6166(b)(8)(A)(iii): Pub. L. 105–34 substituted “2-percent” for “4-percent” in heading and text. ## § 6211: Definition of a deficiency - § 6211(c): Pub. L. 105–34 added subsec. (c). ## § 6212: Notice of deficiency - § 6212(c)(2)(C), § 6212(c)(2): Pub. L. 105–34, which directed the amendment of par. (2) by striking out subpar. (C) and redesignating succeeding subpars. accordingly, was executed by redesignating subpar. (E) as (C) and striking out former subpar. (C). Prior to amendment, subpar. (C) read as follows: “Deficiency attributable to gain on sale or exchange of principal residence, see section 1034(j).” Former subpar. (D) was repealed previously. ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(g)(2)(I): Pub. L. 105–34, § 101(d)(2), added subpar. (I). - § 6213(g)(2)(J): Pub. L. 105–34, § 201(b), added subpar. (J). - § 6213(g)(2)(K): Pub. L. 105–34, § 1085(a)(3), as amended by Pub. L. 105–206, § 6010(p)(3), added subpar. (K). ## § 6311: Payment of tax by commercially acceptable means - § 6311: Pub. L. 105–34 amended section catchline and text generally, substituting provisions relating to payment of tax by commercially acceptable means for provisions consisting of subsecs. (a) and (b) relating to payment by check or money order and liability if a check or money order received is not duly paid. ## § 6331: Levy and distraint - § 6331(h), § 6331(i): Pub. L. 105–34 added subsec. (h) and redesignated former subsec. (h) as (i). ## § 6334: Property exempt from levy - § 6334(a)(13): Pub. L. 105–34, § 312(d)(1), substituted “section 121” for “section 1034”. - § 6334(f), § 6334(g): Pub. L. 105–34 added subsec. (f) and redesignated former subsec. (f) as (g). ## § 6416: Certain taxes on sales and services - § 6416(a)(4)(B): Pub. L. 105–34, § 905(a), inserted at end “Such term includes any person who makes retail sales of gasoline at 10 or more retail motor fuel outlets.” - § 6416(b)(2): Pub. L. 105–34, § 1032(e)(6), inserted “or kerosene” after “diesel fuel” in concluding provisions. - § 6416(d): Pub. L. 105–34, § 1436(b), inserted before period at end “or to the tax imposed by section 4091 in the case of refunds described in section 4091(d)”. ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(e)(2)(B): Pub. L. 105–34 struck out cls. (iii) and (iv) which read as follows: ## § 6422: Cross references - § 6422(5), § 6422(6), § 6422(7), § 6422(8), § 6422(9), § 6422(10), § 6422: Pub. L. 105–34 struck out par. (5) and redesignated pars. (6) to (13) as (5) to (12), respectively. Prior to amendment, par. (5) read as follows: “For abatement or refund of tax on transfers to avoid income tax, see section 1494(b).” ## § 6427: Fuels not used for taxable purposes - § 6427(f): Pub. L. 105–34, § 1032(e)(7), inserted “kerosene,” after “diesel fuel,” in subsec. heading and in text of par. (1). - § 6427(f): Pub. L. 105–34, § 1032(e)(8), substituted “, diesel fuel, or kerosene” for “or diesel fuel”. - § 6427(f): Pub. L. 105–34, § 1032(e)(7), inserted “kerosene,” after “diesel fuel,”. - § 6427(i)(3)(A): Pub. L. 105–34, § 1032(e)(9), substituted “, diesel fuel, or kerosene” for “or diesel fuel” in introductory provisions. - § 6427(i)(4): Pub. L. 105–34, § 1032(e)(10), amended heading generally. Prior to amendment, heading read as follows: “Special rule for nontaxable uses of diesel fuel and aviation fuel taxed under section 4081 or 4091”. - § 6427(i): Pub. L. 105–34, § 1032(c)(3)(E), inserted “($100 or more in the case of kerosene)” after “$200 or more”. - § 6427(l): Pub. L. 105–34, § 1032(c)(3)(D), inserted “, kerosene,” after “diesel fuel” in heading. - § 6427(l)(1), § 6427(l)(2): Pub. L. 105–34, § 1032(c)(3)(A), inserted “or kerosene” after “diesel fuel”. - § 6427(l)(5): Pub. L. 105–34, § 1032(c)(3)(A), inserted “or kerosene” after “diesel fuel” in heading. - § 6427(l)(5)(A): Pub. L. 105–34, § 1032(c)(3)(A), inserted “or kerosene” after “diesel fuel” in introductory provisions. - § 6427(l)(5)(B): Pub. L. 105–34, § 1032(c)(3)(B), added subpar. (B) and redesignated former subpar. (B) as (C). - § 6427(l)(5)(C): Pub. L. 105–34, § 1032(c)(3)(B), (C), redesignated subpar. (B) as (C) and substituted “subparagraph (A) or (B)” for “subparagraph (A)” in introductory provisions. ## § 6501: Limitations on assessment and collection - § 6501(a): Pub. L. 105–34, § 1284(a), inserted at end “For purposes of this chapter, the term ‘return’ means the return required to be filed by the taxpayer (and does not include a return of any person from whom the taxpayer has received an item of income, gain, loss, deduction, or credit).” - § 6501(c)(8): Pub. L. 105–34, § 1145(a), amended heading and text of par. (8) generally. Prior to amendment, text read as follows: “In the case of any tax imposed on any exchange or distribution by reason of subsection (a), (d), or (e) of section 367, the time for assessment of such tax shall not expire before the date which is 3 years after the date on which the Secretary is notified of such exchange or distribution under section 6038B(a).” - § 6501(c)(9): Pub. L. 105–34, § 506(b), reenacted par. (9) heading without change and amended text of par. (9) generally. Prior to amendment, text read as follows: “If any gift of property the value of which is determined under section 2701 or 2702 (or any increase in taxable gifts required under section 2701(d)) is required to be shown on a return of tax imposed by chapter 12 (without regard to section 2503(b)), and is not shown on such return, any tax imposed by chapter 12 on such gift may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time. The preceding sentence shall not apply to any item not shown as a gift on such return if such item is disclosed in such return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature of such item.” - § 6501(m): Pub. L. 105–34, § 1601(g)(2), provided that sections 1703(n)(8) and 1704(j)(4)(B) of Pub. L. 104–188 shall be applied as if the reference in the directory language to the redesignation by section 1602 referred to the redesignation by section 1702. See 1996 Amendment note below. - § 6501(n): Pub. L. 105–34, § 1239(e)(2), which directed the addition of par. (3) to subsec. (o), was executed by adding par. (3) to subsec. (n) to reflect the probable intent of Congress and the redesignation of subsec. (o) as (n) by Pub. L. 104–188, § 1702(e)(3)(A). See 1996 Amendment note below. ## § 6503: Suspension of running of period of limitation - § 6503(a)(1): Pub. L. 105–34 substituted “paragraph (2)(A) or (3) of section 6230(a)” for “section 6230(a)(2)(A)”. ## § 6504: Cross references - § 6504(4), § 6504(5), § 6504(6), § 6504(7), § 6504(8), § 6504(9), § 6504(10), § 6504: Pub. L. 105–34 redesignated pars. (5) to (12) as (4) to (11), respectively, and struck out former par. (4) which read as follows: “Gain upon sale or exchange of principal residence, see section 1034(j).” ## § 6511: Limitations on credit or refund - § 6511(d)(3)(A): Pub. L. 105–34, § 1056(a), substituted “for the year in which such taxes were actually paid or accrued” for “for the year with respect to which the claim is made”. - § 6511(d)(7): Pub. L. 105–34, § 1454(b)(1), added par. (7). ## § 6512: Limitations in case of petition to Tax Court - § 6512(b)(2): Pub. L. 105–34, § 1451(a), inserted at end “An order of the Tax Court disposing of a motion under this paragraph shall be reviewable in the same manner as a decision of the Tax Court, but only with respect to the matters determined in such order.” - § 6512(b)(3): Pub. L. 105–34, § 1282(a), inserted concluding provisions “In a case described in subparagraph (B) where the date of the mailing of the notice of deficiency is during the third year after the due date (with extensions) for filing the return of tax and no return was filed before such date, the applicable period under subsections (a) and (b)(2) of section 6511 shall be 3 years.” - § 6512(b)(3): Pub. L. 105–34, § 1239(c)(2), inserted concluding provisions “In the case of a credit or refund relating to an affected item (within the meaning of section 6231(a)(5)), the preceding sentence shall be applied by substituting the periods under sections 6229 and 6230(d) for the periods under section 6511(b)(2), (c), and (d).” - § 6512(b)(4): Pub. L. 105–34, § 1451(b), added par. (4). ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(c): Pub. L. 105–34, § 1242(a), inserted at end “In the case of a settlement under section 6224(c) which results in the conversion of partnership items to nonpartnership items pursuant to section 6231(b)(1)(C), the preceding sentence shall apply to a computational adjustment resulting from such settlement in the same manner as if such adjustment were a deficiency and such settlement were a waiver referred to in the preceding sentence.” - § 6601(d)(2), § 6601(d)(3), § 6601(d)(4): Pub. L. 105–34, § 1055(a), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively. - § 6601(j): Pub. L. 105–34, § 503(c)(3), substituted “2-percent” for “4-percent” in heading. - § 6601(j)(1): Pub. L. 105–34, § 503(a), reenacted par. heading without change and amended text generally. Prior to amendment, text read as follows: “If the time for payment of an amount of tax imposed by chapter 11 is extended as provided in section 6166, interest on the 4-percent portion of such amount shall (in lieu of the annual rate provided by subsection (a)) be paid at the rate of 4 percent. For purposes of this subsection, the amount of any deficiency which is prorated to installments payable under section 6166 shall be treated as an amount of tax payable in installments under such section.” - § 6601(j)(2): Pub. L. 105–34, § 503(a), amended heading and text generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘4-percent portion’ means the lesser of— - § 6601(j)(3): Pub. L. 105–34, § 501(e), added par. (3). Former par. (3) redesignated (4). - § 6601(j)(4): Pub. L. 105–34, § 503(c)(2), substituted “2-percent” for “4-percent” wherever appearing. - § 6601(j)(4): Pub. L. 105–34, § 501(e), redesignated par. (3) as (4). ## § 6611: Interest on overpayments - § 6611(f)(2), § 6611(f)(3): Pub. L. 105–34, § 1055(b)(1), added par. (2) and redesignated former par. (2) as (3). Former par. (3) redesignated (4). - § 6611(f)(4): Pub. L. 105–34, § 1055(b)(1), (2)(A)(i), redesignated par. (3) as (4) and substituted “paragraphs (1), (2), and (3)” for “paragraphs (1) and (2)” in heading. - § 6611(f)(4)(B)(i)(I): Pub. L. 105–34, § 1055(b)(2)(A), substituted “paragraph (1), (2), or (3)” for “paragraph (1) or (2)”. - § 6611(f)(4)(B)(ii)(II): Pub. L. 105–34, § 1055(b)(2)(B), added subcl. (II). Former subcl. (II) redesignated (III). - § 6611(f)(4)(B)(ii)(III): Pub. L. 105–34, § 1055(b)(2)(B), (C), redesignated subcl. (II) as (III) and inserted “(as defined in paragraph (3)(B))” after “case of a credit carryback”. - § 6611(f)(4)(C)(i): Pub. L. 105–34, § 1055(b)(2)(A), substituted “paragraph (1), (2), or (3)” for “paragraph (1) or (2)”. - § 6611(g), § 6611(h), § 6611: Pub. L. 105–34, § 1055(b)(2)(D), redesignated subsecs. (h) and (i) as (g) and (h), respectively, and struck out former subsec. (g) which read as follows: ## § 6621: Determination of rate of interest - § 6621(a)(1): Pub. L. 105–34, § 1604(b)(1), substituted “subsection (c)(3), applied by substituting ‘overpayment’ for ‘underpayment’)” for “subsection (c)(3))” in concluding provisions. - § 6621(c)(2)(B)(iii): Pub. L. 105–34, § 1463(a), added cl. (iii). ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(e): Pub. L. 105–34, § 1602(d)(2)(B), substituted “section 6724(d)(2)(Y)” for “section 6724(d)(2)(X)”. - § 6652(g): Pub. L. 105–34, § 1281(a), inserted at end “No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect.” - § 6652(k): Pub. L. 105–34, § 1281(b), inserted at end “No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect.” ## § 6654: Failure by individual to pay estimated income tax - § 6654(d)(1)(C)(i): Pub. L. 105–34, § 1091(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “If the adjusted gross income shown on the return of the individual for the preceding taxable year exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting ‘110 percent’ for ‘100 percent’.” - § 6654(e)(1): Pub. L. 105–34, § 1202(a), substituted “$1,000” for “$500”. ## § 6655: Failure by corporation to pay estimated income tax - § 6655(g)(3): Pub. L. 105–34 inserted at end “In the case of a private foundation, subsection (c)(2) shall be applied by substituting ‘May 15’ for ‘April 15’.” ## § 6662: Imposition of accuracy-related penalty on underpayments - § 6662(d)(2)(B): Pub. L. 105–34, § 1028(c)(1), inserted concluding provisions. - § 6662(d)(2)(C): Pub. L. 105–34, § 1028(c)(2), substituted “a significant purpose” for “the principal purpose” in concluding provisions. ## § 6679: Failure to file returns, etc., with respect to foreign corporations or foreign partnerships - § 6679(a): Pub. L. 105–34 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “In addition to any criminal penalty provided by law, any person required to file a return under section 6035, 6046, or 6046A who fails to file such return at the time provided in such section, or who files a return which does not show the information required pursuant to such section, shall pay a penalty of $1,000, unless it is shown that such failure is due to reasonable cause.” ## § 6693: Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions - § 6693: Pub. L. 105–34, § 211(e)(2)(C), substituted “certain tax-favored” for “individual retirement” in section catchline. - § 6693(a): Pub. L. 105–34, § 1602(a)(4), inserted concluding provisions. - § 6693(a)(2)(C): Pub. L. 105–34, § 211(e)(2)(B), added subpar. (C). - § 6693(a)(2)(D): Pub. L. 105–34, § 213(c), added subpar. (D). - § 6693(c)(2): Pub. L. 105–34, § 1601(d)(1)(C)(ii), inserted “and issuer” before “penalties” in heading and “or issuer” before “who fails” in introductory provisions. ## § 6695: Other assessable penalties with respect to the preparation of tax returns for other persons - § 6695(g): Pub. L. 105–34 added subsec. (g). ## § 6707: Failure to furnish information regarding reportable transactions - § 6707(a)(1): Pub. L. 105–34, § 1028(d)(2), which directed the substitution of “paragraph (2) or (3), as the case may be” for “paragraph (2)” in subpar. (A) of par. (1), was executed by making the substitution in the concluding provisions of par. (1) to reflect the probable intent of Congress. - § 6707(a)(2): Pub. L. 105–34, § 1028(d)(1), substituted “Except as provided in paragraph (3), the penalty” for “The penalty”. - § 6707(a): Pub. L. 105–34, § 1028(b), added par. (3). ## § 6715: Dyed fuel sold for use or used in taxable use, etc. - § 6715(c)(1): Pub. L. 105–34 inserted “or kerosene” after “diesel fuel”. ## § 6724: Waiver; definitions and special rules - § 6724(d)(1)(A)(ix): Pub. L. 105–34, § 1213(b), as amended by Pub. L. 105–206, § 6012(b)(5), added cl. (ix). - § 6724(d)(1)(B)(x), § 6724(d)(1)(B)(xi), § 6724(d)(1)(B)(xii), § 6724(d)(1)(B)(xiii), § 6724(d)(1)(B)(xiv), § 6724(d)(1)(B)(xv), § 6724(d)(1)(B)(xvi): Pub. L. 105–34, § 201(c)(2)(A), as amended by Pub. L. 105–206, § 6004(a)(3), added cl. (x) and redesignated former cls. (x) to (xv) as (xi) to (xvi), respectively. - § 6724(d)(2)(R), § 6724(d)(2)(S), § 6724(d)(2)(T), § 6724(d)(2)(U), § 6724(d)(2)(V), § 6724(d)(2)(W), § 6724(d)(2)(X), § 6724(d)(2)(Y): Pub. L. 105–34, § 1602(d)(2)(A), added subpars. (R) to (Y) and struck out former subpars. (R) to (X) which read as follows: - § 6724(d)(2)(Z): Pub. L. 105–34, § 201(c)(2)(B), added subpar. (Z). - § 6724(e): Pub. L. 105–34, § 1223(b), added subsec. (e). ## § 7232: Failure to register or reregister under section 4101, false representations of registration status, etc. - § 7232: Pub. L. 105–34, § 1032(e)(12)(B), amended section catchline generally. Prior to amendment, catchline read as follows: “Failure to register, or false statement by manufacturer or producer of gasoline, diesel fuel, or aviation fuel”. - § 7232: Pub. L. 105–34, § 1032(e)(12)(A), which directed the substitution of “any taxable fuel (as defined in section 4083)” for “gasoline, lubricating oil, diesel fuel”, was executed by making the substitution for “gasoline, diesel fuel,” to reflect the probable intent of Congress. See 1998 Amendment note above. ## § 7421: Prohibition of suits to restrain assessment or collection - § 7421(a): Pub. L. 105–34, § 1454(b)(2), substituted “7429(b), and 7436” for “and 7429(b)”. - § 7421(a): Pub. L. 105–34, § 1239(e)(3), inserted “6225(b),” after “6213(a),”. - § 7421(a): Pub. L. 105–34, § 1222(b)(1), inserted “6246(b),” after “6213(a),”. ## § 7430: Awarding of costs and certain fees - § 7430(b): Pub. L. 105–34, § 1285(b), added par. (5). - § 7430(c)(4)(D): Pub. L. 105–34, § 1453(a), added subpar. (D). - § 7430(f)(2): Pub. L. 105–34, § 1285(c), substituted “the filing of a petition for review with” for “appeal to” and inserted at end “If the Secretary sends by certified or registered mail a notice of such decision to the petitioner, no proceeding in the Tax Court may be initiated under this paragraph unless such petition is filed before the 91st day after the date of such mailing.” - § 7430(f)(3): Pub. L. 105–34, § 1285(a), added par. (3). ## § 7431: Civil damages for unauthorized inspection or disclosure of returns and return information - § 7431(g): Pub. L. 105–34, § 1205(c)(2), added subsec. (g) relating to special rule for information obtained under section 6103(k)(8). ## § 7436: Proceedings for determination of employment status - Enacted 26 U.S.C. § 7436. ## § 7437: Cross references ## § 7453: Rules of practice, procedure, and evidence - § 7453: Pub. L. 105–34 substituted “section 7436(c) or 7463” for “section 7463”. ## § 7459: Reports and decisions - § 7459(c): Pub. L. 105–34, § 1239(e)(1), which directed the amendment of subsec. (c) by substituting “, 6228(a), or 6234(c)” for “or section 6228(a)” could not be executed because the words “or section 6228(a)” did not appear in text subsequent to amendment by Pub. L. 105–34, § 1222(b)(2). See below. - § 7459(c): Pub. L. 105–34, § 1222(b)(2), substituted “, 6228(a), 6247, or 6252” for “or section 6228(a)”. ## § 7477: Declaratory judgments relating to value of certain gifts - Enacted 26 U.S.C. § 7477. ## § 7479: Declaratory judgments relating to eligibility of estate with respect to installment payments under section 6166 - Enacted 26 U.S.C. § 7479. ## § 7481: Date when Tax Court decision becomes final - § 7481(b): Pub. L. 105–34, § 1454(b)(3), substituted “section 7436(c) or 7463” for “section 7463”. - § 7481(c): Pub. L. 105–34, § 1452(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Notwithstanding subsection (a), if— ## § 7482: Courts of review - § 7482(b)(1): Pub. L. 105–34, § 1239(d)(2), substituted “, 6228(a), or 6234(c)” for “or 6228(a)” in concluding provisions. - § 7482(b)(1)(E): Pub. L. 105–34, § 1222(b)(3), substituted “, 6228(a), 6247, or 6252” for “or 6228(a)”. - § 7482(b)(1)(F): Pub. L. 105–34, § 1239(d)(1), added subpar. (F). ## § 7485: Bond to stay assessment and collection - § 7485(b): Pub. L. 105–34, § 1222(b)(4)(B), amended heading generally. Prior to amendment, heading read as follows: “Bond in case of appeal of decision under section 6226 or section 6228(a)”. - § 7485(b): Pub. L. 105–34, § 1222(b)(4)(A), substituted “, 6228(a), 6247, or 6252” for “or 6228(a)”. - § 7485(b): Pub. L. 105–34, § 1241(a), inserted “penalties,” after “any interest,” and substituted “aggregate liability of the parties to the action” for “aggregate of such deficiencies”. ## § 7508A: Authority to postpone certain deadlines by reason of Federally declared disaster, significant fire, or terroristic or military actions - Enacted 26 U.S.C. § 7508A. ## § 7518: Tax incentives relating to merchant marine capital construction funds - § 7518(g)(6)(A): Pub. L. 105–34 substituted “20 percent” for “28 percent” in concluding provisions. ## § 7519: Required payments for entities electing not to have required taxable year - § 7519(f)(4)(A): Pub. L. 105–34 inserted at end “No penalty shall be imposed under this subparagraph on any failure which is shown to be due to reasonable cause and not willful neglect.” ## § 7701: Definitions - § 7701(a)(4): Pub. L. 105–34, § 1151(a), inserted before period at end “unless, in the case of a partnership, the Secretary provides otherwise by regulations”. - § 7701(a)(30)(E)(ii): Pub. L. 105–34, § 1601(i)(3)(A), substituted “persons” for “fiduciaries”. - § 7701(b)(7)(A): Pub. L. 105–34, § 1174(b)(2), substituted “, (C), or (D)” for “or (C)”. - § 7701(b)(7)(D): Pub. L. 105–34, § 1174(b)(1), added subpar. (D). ## § 7702B: Treatment of qualified long-term care insurance - § 7702B(c)(2)(B): Pub. L. 105–34, § 1602(b), inserted “described in subparagraph (A)(i)” after “chronically ill individual” in concluding provisions. - § 7702B(g)(4)(B)(ii), § 7702B(g)(4)(B)(iii)(IV): Pub. L. 105–34, § 1602(e), substituted “appropriate State regulatory agency” for “Secretary”. ## § 7704: Certain publicly traded partnerships treated as corporations - § 7704(g): Pub. L. 105–34 added subsec. (g). ## § 7872: Treatment of loans with below-market interest rates - § 7872(f)(11)(A): Pub. L. 105–34 substituted “section 121” for “section 1034”. ## § 9502: Airport and Airway Trust Fund - § 9502(b)(1): Pub. L. 105–34, § 1031(d)(1)(C), inserted concluding provisions. - § 9502(b)(1)(C): Pub. L. 105–34, § 1031(d)(1)(A), struck out “(to the extent that the rate of the tax on such gasoline exceeds 4.3 cents per gallon)” after “aviation gasoline”. - § 9502(b)(1)(D): Pub. L. 105–34, § 1031(d)(1)(B), struck out “to the extent attributable to the Airport and Airway Trust Fund financing rate” after “aviation fuel)”. - § 9502(d)(5), § 9502(d)(6): Pub. L. 105–34, § 1604(g)(5), redesignated par. (5), relating to transfers on account of certain airports, as (6). - § 9502(f): Pub. L. 105–34, § 1031(d)(2), struck out heading and text of subsec. (f). Text read as follows: “For purposes of this section— ## § 9503: Highway Trust Fund - § 9503(b)(1)(E): Pub. L. 105–34, § 1032(e)(13), substituted “, diesel fuel, and kerosene” for “and diesel fuel”. - § 9503(b)(4): Pub. L. 105–34, § 901(a), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “For purposes of paragraphs (1) and (2)— - § 9503(b)(5)(B): Pub. L. 105–34, § 1032(e)(14), substituted “, diesel fuel, or kerosene” for “or diesel fuel”. - § 9503(c)(2): Pub. L. 105–34, § 901(d)(2), in concluding provisions, substituted “by taking into account only the portion of the taxes which are deposited into the Highway Trust Fund” for “by taking into account only the Highway Trust Fund financing rate applicable to any fuel”. - § 9503(c)(2): Pub. L. 105–34, § 1601(f)(2), struck out “(or with respect to qualified diesel-powered highway vehicles purchased before January 1, 1999)” after “October 1, 1999”. - § 9503(c)(4): Pub. L. 105–34, § 901(d)(3), substituted “deposited into the Highway Trust Fund” for “attributable to the Highway Trust Fund financing rate”. - § 9503(c)(5)(B), § 9503(c): Pub. L. 105–34, § 901(d)(3), substituted “deposited into the Highway Trust Fund” for “attributable to the Highway Trust Fund financing rate”. - § 9503(c): Pub. L. 105–34, § 901(c), added par. (7). - § 9503(e)(2): Pub. L. 105–34, § 901(b), substituted “2.85 cents” for “2 cents”. - § 9503(e)(5)(A): Pub. L. 105–34, § 1601(f)(2)(B), struck out “; except that any such transfers to the extent attributable to section 6427(g) shall be borne only by the Highway Account” before period at end. - § 9503(f): Pub. L. 105–34, § 901(d)(1), struck out heading and text of subsec. (f) which consisted of pars. (1) to (4) relating to definition of Highway Trust Fund financing rate. ## § 9508: Leaking Underground Storage Tank Trust Fund - § 9508(b)(2): Pub. L. 105–34 substituted “, diesel fuel, and kerosene” for “and diesel fuel”. ## § 9801: Increased portability through limitation on preexisting condition exclusions - § 9801(c)(1): Pub. L. 105–34 substituted “section 9832(c)” for “section 9805(c)” in concluding provisions. ## § 9802: Prohibiting discrimination against individual participants and beneficiaries based on health status - § 9802(c): Pub. L. 105–34 added subsec. (c). ## § 9811: Standards relating to benefits for mothers and newborns - Enacted 26 U.S.C. § 9811. ## § 9812: Parity in mental health and substance use disorder benefits - Enacted 26 U.S.C. § 9812. ## § 9831: General exceptions - § 9831: Pub. L. 105–34 renumbered section 9804 of this title as this section and substituted reference to section 9832 of this title for reference to section 9805 of this title in subsecs. (b) and (c)(1) to (3). ## § 9832: Definitions - § 9832: Pub. L. 105–34 renumbered section 9805 of this title as this section. ## § 9833: Regulations - § 9833: Pub. L. 105–34 renumbered section 9806 of this title as this section.