# Pub. L. 108-357: changes to the Internal Revenue Code 2004-10-22, 118 Stat. 1506. Source: . ## Legislative history - Bill: [H.R. 4520](https://www.congress.gov/bill/108th-congress/house-bill/4520) - House report: [H. Rept. 108-548](https://www.govinfo.gov/content/pkg/CRPT-108hrpt548/html/CRPT-108hrpt548.htm) - Conference report: [H. Rept. 108-755](https://www.govinfo.gov/content/pkg/CRPT-108hrpt755/html/CRPT-108hrpt755.htm) - Bluebook: [JCT general explanation (2005)](https://www.govinfo.gov/app/details/CPRT-109JPRT21118) ## § 1: Tax imposed - § 1(h)(10)(F), § 1(h)(10)(G), § 1(h)(10): Pub. L. 108–357, § 413(c)(1)(A), inserted “and” at end of subpar. (F), redesignated subpar. (H) as (G), and struck out former subpar. (G) which read as follows: “a foreign investment company which is described in section 1246(b)(1) and for which an election is in effect under section 1247; and”. - § 1(h)(11)(C)(iii): Pub. L. 108–357, § 413(c)(1)(B), struck out “a foreign personal holding company (as defined in section 552), a foreign investment company (as defined in section 1246(b)), or” before “a passive foreign investment”. ## § 38: General business credit - § 38(b)(16): Pub. L. 108–357, § 245(c)(1), added par. (16). - § 38(b)(17): Pub. L. 108–357, § 302(b), added par. (17). - § 38(b)(18): Pub. L. 108–357, § 339(b), added par. (18). - § 38(b)(19): Pub. L. 108–357, § 341(b), added par. (19). - § 38(c)(2)(A)(ii)(II), § 38(c)(3): Pub. L. 108–357, § 711(b), inserted “or the specified credits” after “employee credit”. - § 38(c)(4), § 38(c)(5): Pub. L. 108–357, § 711(a), added par. (4) and redesignated former par. (4) as (5). ## § 39: Carryback and carryforward of unused credits - § 39(a)(3): Pub. L. 108–357, § 341(c), added par. (3). - § 39(d): Pub. L. 108–357, § 245(b)(1), amended heading and text of subsec. (d) generally, substituting provisions prohibiting carryback of the unused business credit attributable to a credit specified in section 38(b) for provisions prohibiting carryback of the enhanced oil recovery credit before 1991, sections 44, 45A, and 45B credits before their enactments, the renewable electricity production credit before its effective date, the empowerment zone employment credit, section 45C credit before July 1, 1996, DC Zone credits before their effective date, the new markets tax credit before Jan. 1, 2001, and the small employer pension plan startup cost credit before Jan. 1, 2002. ## § 40: Alcohol, etc., used as fuel - § 40(c): Pub. L. 108–357, § 301(c)(1), substituted “section 4041(b)(2), section 6426, or section 6427(e)” for “subsection (b)(2), (k), or (m) of section 4041, section 4081(c), or section 4091(c)”. - § 40(d)(4): Pub. L. 108–357, § 301(c)(2), reenacted heading without change and amended text of par. (4) generally, substituting provisions relating to determination of the number of gallons of alcohol with respect to which a credit is allowable under subsec. (a) for provisions relating to determination of the number of gallons of alcohol with respect to which a credit is allowable under subsec. (a) or the percentage of any mixture which consists of alcohol under section 4041(k) or 4081(c). - § 40(e)(1)(A): Pub. L. 108–357, § 301(c)(3)(A), substituted “2010” for “2007”. - § 40(e)(1)(B): Pub. L. 108–357, § 301(c)(3)(B), substituted “2011” for “2008”. - § 40(g)(6): Pub. L. 108–357, § 313(a), added par. (6). - § 40(h)(1): Pub. L. 108–357, § 301(c)(4)(A), substituted “2010” for “2007” in introductory provisions. - § 40(h)(2): Pub. L. 108–357, § 301(c)(4)(B), substituted “through 2010” for “, 2006, or 2007” in table. ## § 40A: Biodiesel and renewable diesel used as fuel - Enacted 26 U.S.C. § 40A. ## § 43: Enhanced oil recovery credit - § 43(c)(1)(D): Pub. L. 108–357, § 707(a), added subpar. (D). - § 43(c)(5): Pub. L. 108–357, § 707(b), added par. (5). ## § 45: Electricity produced from certain renewable resources, etc. - § 45: Pub. L. 108–357, § 710(b)(3)(B), inserted “, etc” after “resources” in section catchline. - § 45(b)(2): Pub. L. 108–357, § 710(b)(3)(C), substituted “The 1.5 cent amount in subsection (a), the 8 cent amount in paragraph (1), the $4.375 amount in subsection (e)(8)(A), and in subsection (e)(8)(B)(i) the reference price of fuel used as a feedstock (within the meaning of subsection (c)(7)(A)) in 2002” for “The 1.5 cent amount in subsection (a) and the 8 cent amount in paragraph (1)”. - § 45(b)(3): Pub. L. 108–357, § 710(f), inserted “the lesser of ½ or” before “a fraction” in introductory provisions and “This paragraph shall not apply with respect to any facility described in subsection (d)(2)(A)(ii)” in concluding provisions. - § 45(b)(4): Pub. L. 108–357, § 710(c), added par. (4). - § 45(c): Pub. L. 108–357, § 710(a), amended heading and text of subsec. (c) generally. Prior to amendment, subsec. (c) defined “qualified energy resources”, “closed-loop biomass”, “qualified facility”, and “poultry waste” for purposes of this section. - § 45(d): Pub. L. 108–357, § 710(b)(1), added subsec. (d). Former subsec. (d) redesignated (e). - § 45(e): Pub. L. 108–357, § 710(b)(1), redesignated subsec. (d) as (e). - § 45(e)(7)(A)(i): Pub. L. 108–357, § 710(b)(3)(A), substituted “subsection (d)(1)” for “subsection (c)(3)(A)”. - § 45(e)(8): Pub. L. 108–357, § 710(b)(2), added par. (8). - § 45(e)(9): Pub. L. 108–357, § 710(d), added par. (9). ## § 45D: New markets tax credit - § 45D(e)(2): Pub. L. 108–357, § 221(a), amended heading and text of par. (2) generally, substituting provisions relating to regulations under which 1 or more targeted populations could be treated as low-income communities for provisions authorizing Secretary to designate any area within any census tract as a low-income community if certain conditions were met. - § 45D(e)(4): Pub. L. 108–357, § 221(b), added par. (4). - § 45D(e)(5): Pub. L. 108–357, § 223(a), added par. (5). ## § 45G: Railroad track maintenance credit - Enacted 26 U.S.C. § 45G. ## § 45H: Credit for production of low sulfur diesel fuel - Enacted 26 U.S.C. § 45H. ## § 45I: Credit for producing oil and gas from marginal wells - Enacted 26 U.S.C. § 45I. ## § 46: Amount of credit - § 46: Pub. L. 108–357 inserted “and” at end of par. (1), substituted a period for “, and” at end of par. (2), and struck out par. (3) which read as follows: “the reforestation credit.” ## § 48: Energy credit - § 48: Pub. L. 108–357, § 322(d)(2)(B), struck out “; reforestation credit” after “Energy credit” in section catchline. - § 48(a)(3): Pub. L. 108–357, § 710(e), inserted at end of concluding provisions “Such term shall not include any property which is part of a facility the production from which is allowed as a credit under section 45 for the taxable year or any prior taxable year.” - § 48(a)(5): Pub. L. 108–357, § 322(d)(2)(A)(iii), redesignated subsec. (a)(5) as (b). - § 48(a)(5): Pub. L. 108–357, § 322(d)(2)(A)(ii), substituted “subsection (a)” for “this subsection”. - § 48(b): Pub. L. 108–357, § 322(d)(2)(A)(iii), redesignated subsec. (a)(5) as (b). - § 48(b): Pub. L. 108–357, § 322(d)(2)(A)(i), struck out heading and text of subsec. (b). Text read as follows: ## § 50: Other special rules - § 50(c)(3): Pub. L. 108–357 struck out “or reforestation credit” after “energy credit” in introductory provisions. ## § 53: Credit for prior year minimum tax liability - § 53(d)(1)(B)(i)(II): Pub. L. 108–357 struck out “and if section 59(a)(2) did not apply” before period at end. ## § 55: Alternative minimum tax imposed - § 55(c)(2), § 55(c)(3): Pub. L. 108–357 added par. (2) and redesignated former par. (2) as (3). ## § 56: Adjustments in computing alternative minimum taxable income - § 56: Pub. L. 108–357, § 248(b)(1), inserted “or 1357” after “section 139A” in concluding provisions. - § 56: Pub. L. 108–357, § 101(b)(4), struck out “114 or” before “139A” in concluding provisions. - § 56: Pub. L. 108–357, § 102(b), added cl. (v). - § 56: Pub. L. 108–357, § 422(b), added cl. (vi). - § 56: Pub. L. 108–357, § 835(b)(1), substituted “or REMIC” for “REMIC, or FASIT”. ## § 59: Other definitions and special rules - § 59(a)(2), § 59(a)(3), § 59(a): Pub. L. 108–357 redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which related to limitation on alternative minimum tax foreign tax credit and carryback and carryforward of excess. ## § 62: Adjusted gross income defined - § 62(a)(19): Pub. L. 108–357, § 703(a), added par. (19) relating to costs involving discrimination suits, etc. - § 62(e): Pub. L. 108–357, § 703(b), added subsec. (e). ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(w), § 72(x): Pub. L. 108–357 added subsec. (w) and redesignated former subsec. (w) as (x). ## § 83: Property transferred in connection with performance of services - § 83(c)(4): Pub. L. 108–357 added par. (4). ## § 86: Social security and tier 1 railroad retirement benefits - § 86(b)(2)(A): Pub. L. 108–357 inserted “199,” before “221”. ## § 87: Alcohol and biodiesel fuels credits - § 87: Pub. L. 108–357 amended section catchline and text generally. Prior to amendment, text read as follows: “Gross income includes the amount of the alcohol fuel credit determined with respect to the taxpayer for the taxable year under section 40(a).” ## § 108: Income from discharge of indebtedness - § 108(e)(8): Pub. L. 108–357, § 896(a), amended heading and text of par. (8) generally. Prior to amendment, text read as follows: “For purposes of determining income of a debtor from discharge of indebtedness, if a debtor corporation transfers stock to a creditor in satisfaction of its indebtedness, such corporation shall be treated as having satisfied the indebtedness with an amount of money equal to the fair market value of the stock.” - § 108(f)(4): Pub. L. 108–357, § 320(a), added par. (4). ## § 121: Exclusion of gain from sale of principal residence - § 121(d)(10): Pub. L. 108–357 added par. (10) relating to property acquired in like-kind exchange. ## § 135: Income from United States savings bonds used to pay higher education tuition and fees - § 135(c)(4)(A): Pub. L. 108–357 inserted “199,” before “221”. ## § 137: Adoption assistance programs - § 137(b)(3)(A): Pub. L. 108–357 inserted “199,” before “221”. ## § 142: Exempt facility bond - § 142(a)(14): Pub. L. 108–357, § 701(a), added par. (14). - § 142(l): Pub. L. 108–357, § 701(b), added subsec. (l). ## § 144: Qualified small issue bond; qualified student loan bond; qualified redevelopment bond - § 144(a)(4)(F): Pub. L. 108–357, § 340(b), inserted at end “This subparagraph shall not apply to bonds issued after September 30, 2009.” - § 144(a)(4)(G): Pub. L. 108–357, § 340(a), added subpar. (G). ## § 146: Volume cap - § 146(g)(3): Pub. L. 108–357 substituted “(13), or (14)” for “or (13)” and “qualified public educational facilities, and qualified green building and sustainable design projects” for “and qualified public educational facilities”. ## § 162: Trade or business expenses - § 162(m)(4): Pub. L. 108–357, § 802(b)(2), added subpar. (G). - § 162(o): Pub. L. 108–357, § 318(b), struck out “reimbursed” before “expenses” in heading. - § 162(o)(2), § 162(o)(3): Pub. L. 108–357, § 318(a), added par. (2) and redesignated former par. (2) as (3). ## § 163: Interest - § 163(e)(3)(B), § 163(e)(3)(C): Pub. L. 108–357, § 841(a), added subpar. (B) and redesignated former subpar. (B) as (C). - § 163(l)(2): Pub. L. 108–357, § 845(a), inserted “or equity held by the issuer (or any related party) in any other person” after “or a related party”. - § 163(l)(3): Pub. L. 108–357, § 845(d), substituted “or any other person” for “or a related party” in introductory provisions. - § 163(l)(4), § 163(l)(5), § 163(l)(6), § 163(l)(7): Pub. L. 108–357, § 845(b), (c), added pars. (4) and (5) and redesignated former pars. (4) and (5) as (6) and (7), respectively. - § 163(m), § 163(n): Pub. L. 108–357, § 838(a), added subsec. (m) and redesignated former subsec. (m) as (n). ## § 164: Taxes - § 164(b)(5): Pub. L. 108–357 added par. (5). ## § 167: Depreciation - § 167(f)(1)(C): Pub. L. 108–357, § 847(b)(1), added subpar. (C). - § 167(f)(2): Pub. L. 108–357, § 847(b)(2), inserted at end “If such property would be tax-exempt use property as defined in subsection (h) of section 168 if such section applied to such property, the useful life under such regulations shall not be less than 125 percent of the lease term (within the meaning of section 168(i)(3)).” - § 167(g)(5)(E), § 167(g)(5)(F), § 167(g)(5)(G): Pub. L. 108–357, § 242(b), added subpar. (E) and redesignated former subpars. (E) and (F) as (F) and (G), respectively. - § 167(g)(7): Pub. L. 108–357, § 242(a), added par. (7). ## § 168: Accelerated cost recovery system - § 168(b)(2)(A): Pub. L. 108–357, § 211(d)(2), inserted “not referred to in paragraph (3)” before comma at end. - § 168(b)(3)(G), § 168(b)(3): Pub. L. 108–357, § 211(d)(1), added subpars. (G) and (H). - § 168(e)(3)(C)(ii): Pub. L. 108–357, § 704(a), added cl. (ii). Former cl. (ii) redesignated (iii). - § 168(e)(3)(C)(iii): Pub. L. 108–357, § 706(a), added cl. (iii). Former cl. (iii) redesignated (iv). - § 168(e)(3)(C)(iii): Pub. L. 108–357, § 704(a), redesignated cl. (ii) as (iii). - § 168(e)(3)(C)(iv): Pub. L. 108–357, § 706(a), redesignated cl. (iii) as (iv). - § 168(e)(3)(E)(iv), § 168(e)(3)(E)(v): Pub. L. 108–357, § 211(a), added cls. (iv) and (v). - § 168(e)(3)(E)(vi): Pub. L. 108–357, § 901(a), added cl. (vi). - § 168(e)(3)(F): Pub. L. 108–357, § 901(b), added subpar. (F). - § 168(e)(6), § 168(e): Pub. L. 108–357, § 211(b), (c), added pars. (6) and (7). - § 168(g)(3)(A): Pub. L. 108–357, § 847(a), inserted “(notwithstanding any other subparagraph of this paragraph)” after “shall”. - § 168(g)(3)(B): Pub. L. 108–357, § 901(c), inserted table items relating to subpars. (E)(vi) and (F). - § 168(g)(3)(B): Pub. L. 108–357, § 706(c), which directed amendment of table by inserting item relating to subpar. (C)(iii) after item relating to subpar. (C)(ii), was executed by making the insertion after item relating to subpar. (C)(i) to reflect the probable intent of Congress. - § 168(g)(3)(B): Pub. L. 108–357, § 211(e), inserted table items relating to subpars. (E)(iv) and (E)(v). - § 168(h)(2)(A): Pub. L. 108–357, § 847(e), added cl. (iv) and concluding provisions. - § 168(h)(3)(A): Pub. L. 108–357, § 847(d), inserted at end “Notwithstanding subsection (i)(3)(A)(i), in determining a lease term for purposes of the preceding sentence, there shall not be taken into account any option of the lessee to renew at the fair market value rent determined at the time of renewal; except that the aggregate period not taken into account by reason of this sentence shall not exceed 24 months.” - § 168(i)(3)(A)(ii), § 168(i)(3)(A)(iii): Pub. L. 108–357, § 847(c), added cl. (ii) and redesignated former cl. (ii) as (iii). - § 168(i)(15): Pub. L. 108–357, § 704(b), added par. (15). - § 168(i)(16): Pub. L. 108–357, § 706(b), added par. (16). - § 168(k)(2)(A): Pub. L. 108–357, § 336(a)(2), substituted “subparagraphs (B) and (C)” for “subparagraph (B)”. - § 168(k)(2)(B): Pub. L. 108–357, § 336(b)(1), added cl. (iv). - § 168(k)(2)(C): Pub. L. 108–357, § 336(a)(1), added subpar. (C). Former subpar. (C) redesignated (D). - § 168(k)(2)(D): Pub. L. 108–357, § 336(a)(1), redesignated subpar. (C) as (D). Former subpar. (D) redesignated (E). - § 168(k)(2)(E): Pub. L. 108–357, § 336(a)(1), redesignated subpar. (D) as (E). Former subpar. (E) redesignated (F). - § 168(k)(2)(E): Pub. L. 108–357, § 337(a), which directed amendment of subcl. (II) by inserting before comma at end “(or, in the case of multiple units of property subject to the same lease, within 3 months after the date the final unit is placed in service, so long as the period between the time the first unit is placed in service and the time the last unit is placed in service does not exceed 12 months)”, was executed by making the insertion before “, and” to reflect the probable intent of Congress. - § 168(k)(2)(F): Pub. L. 108–357, § 336(a)(1), redesignated subpar. (E) as (F). Former subpar. (F) redesignated (G). - § 168(k)(2)(G): Pub. L. 108–357, § 336(a)(1), redesignated subpar. (F) as (G). - § 168(k)(4): Pub. L. 108–357, § 336(b)(2), substituted “paragraph (2)(D)” for “paragraph (2)(C)”. - § 168(k)(4): Pub. L. 108–357, § 336(b)(3), inserted “and paragraph (2)(C)” after “of this paragraph)”. - § 168(k)(4): Pub. L. 108–357, § 336(b)(4), substituted “subparagraphs (B), (C), and (E)” for “subparagraphs (B) and (D)”. - § 168(k)(4): Pub. L. 108–357, § 336(b)(5), substituted “Paragraph (2)(F)” for “Paragraph (2)(E)”. ## § 170: Charitable, etc., contributions and gifts - § 170(e)(1)(B)(iii): Pub. L. 108–357, § 882(a), added cl. (iii). - § 170(f)(10)(A): Pub. L. 108–357, § 413(c)(30), struck out “556(b)(2),” after “545(b)(2),” in introductory provisions. - § 170(f)(11): Pub. L. 108–357, § 883(a), added par. (11). - § 170(f)(11)(A)(ii)(I): Pub. L. 108–357, § 882(d), inserted “subsection (e)(1)(B)(iii) or” before “section 1221(a)(1)”. - § 170(f)(12): Pub. L. 108–357, § 884(a), added par. (12). - § 170(m): Pub. L. 108–357, § 882(b), added subsec. (m). Former subsec. (m) redesignated (n). - § 170(n): Pub. L. 108–357, § 335(a), added subsec. (n). Former subsec. (n) redesignated (o). - § 170(n): Pub. L. 108–357, § 882(b), redesignated subsec. (m) as (n). Amendment was executed before the amendment by Pub. L. 108–357, § 335(a). See note below. - § 170(o): Pub. L. 108–357, § 335(a), redesignated subsec. (n) as (o). ## § 171: Amortizable bond premium - § 171(c)(2): Pub. L. 108–357, § 413(c)(2)(B), which directed amendment of par. (2) by striking out “, or foreign personal holding company”, was executed by striking out “or foreign personal holding company” after “the common trust fund”, to reflect the probable intent of Congress. - § 171(c)(2): Pub. L. 108–357, § 413(c)(2)(A), struck out “, or by a foreign personal holding company, as defined in section 552” after “section 584(a)”. ## § 179: Election to expense certain depreciable business assets - § 179(b)(1), § 179(b)(2), § 179(b)(5)(A): Pub. L. 108–357, § 201, substituted “2008” for “2006”. - § 179(b)(6): Pub. L. 108–357, § 910(a), added par. (6). - § 179(c)(2), § 179(d)(1)(A)(ii): Pub. L. 108–357, § 201, substituted “2008” for “2006”. ## § 179B: Deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations - Enacted 26 U.S.C. § 179B. ## § 181: Treatment of certain qualified productions - Enacted 26 U.S.C. § 181. ## § 194: Treatment of reforestation expenditures - § 194: Pub. L. 108–357, § 322(c)(4), substituted “Treatment” for “Amortization” in section catchline. - § 194(b): Pub. L. 108–357, § 322(a), substituted “Treatment as expenses” for “Limitations” in heading. - § 194(b)(1): Pub. L. 108–357, § 322(a), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “The aggregate amount of amortizable basis acquired during the taxable year which may be taken into account under subsection (a) for such taxable year shall not exceed $10,000 ($5,000 in the case of a separate return by a married individual (as defined in section 7703)).” - § 194(b)(2): Pub. L. 108–357, § 322(c)(2), substituted “paragraph (1)(B)” for “paragraph (1)” in introductory provisions of subpar. (A) and in subpar. (B). - § 194(b): Pub. L. 108–357, § 322(c)(1), struck out pars. (3) and (4) which related to inapplicability of section to trusts and applicability of section to estates, respectively. - § 194(c)(2): Pub. L. 108–357, § 322(b), inserted “which have not been taken into account under subsection (b)” after “expenditures”. - § 194(c)(4), § 194(c)(5): Pub. L. 108–357, § 322(c)(3), added pars. (4) and (5) and struck out former par. (4) which related to basis allocation if the amount of the amortizable basis acquired during the taxable year of all qualified timber property with respect to which the taxpayer had made an election under subsec. (a) exceeded the amount of the limitation under subsec. (b)(1). ## § 195: Start-up expenditures - § 195(b): Pub. L. 108–357, § 902(a)(2), substituted “deduct” for “amortize” in heading. - § 195(b)(1): Pub. L. 108–357, § 902(a)(1), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “Start-up expenditures may, at the election of the taxpayer, be treated as deferred expenses. Such deferred expenses shall be allowed as a deduction prorated equally over such period of not less than 60 months as may be selected by the taxpayer (beginning with the month in which the active trade or business begins).” ## § 196: Deduction for certain unused business credits - § 196(c)(11): Pub. L. 108–357, § 302(c)(2), added par. (11). - § 196(c)(12): Pub. L. 108–357, § 339(e), added par. (12). ## § 197: Amortization of goodwill and certain other intangibles - § 197(e)(6), § 197(e)(7), § 197(e): Pub. L. 108–357, § 886(a), redesignated pars. (7) and (8) as (6) and (7), respectively, and struck out heading and text of former par. (6). Text read as follows: “A franchise to engage in professional football, basketball, baseball, or other professional sport, and any item acquired in connection with such a franchise.” - § 197(f)(10): Pub. L. 108–357, § 847(b)(3), added par. (10). ## § 219: Retirement savings - § 219(g)(3)(A)(ii): Pub. L. 108–357 inserted “199,” before “221”. ## § 221: Interest on education loans - § 221(b)(2)(C)(i): Pub. L. 108–357 inserted “199,” before “222”. ## § 245: Dividends received from certain foreign corporations - § 245(a)(2): Pub. L. 108–357 struck out “foreign personal holding company or” after “(other than a”. ## § 246: Rules applying to deductions for dividends received - § 246(b)(1): Pub. L. 108–357, § 102(d)(4), inserted “199,” after “172,”. - § 246(c)(4): Pub. L. 108–357, § 888(d), inserted “, other than a qualified covered call option to which section 1092(f) applies” before period at end of concluding provisions. ## § 248: Organizational expenditures - § 248(a): Pub. L. 108–357 amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “The organizational expenditures of a corporation may, at the election of the corporation (made in accordance with regulations prescribed by the Secretary, be treated as deferred expenses. In computing taxable income, such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the corporation (beginning with the month in which the corporation begins business).” ## § 263: Capital expenditures - § 263(a)(1)(I): Pub. L. 108–357 added subpar. (I). ## § 263A: Capitalization and inclusion in inventory costs of certain expenses - § 263A(c)(3): Pub. L. 108–357, which directed amendment of par. (3) by inserting “179B,” after “section”, was executed by making the insertion after “section” the second place it appeared to reflect the probable intent of Congress. ## § 267: Losses, expenses, and interest with respect to transactions between related taxpayers - § 267(a)(3): Pub. L. 108–357 designated existing provisions as subpar. (A), inserted heading, and added subpar. (B). ## § 274: Disallowance of certain entertainment, etc., expenses - § 274(e)(2): Pub. L. 108–357 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Expenses for goods, services, and facilities, to the extent that the expenses are treated by the taxpayer, with respect to the recipient of the entertainment, amusement, or recreation, as compensation to an employee on the taxpayer’s return of tax under this chapter and as wages to such employee for purposes of chapter 24 (relating to withholding of income tax at source on wages).” ## § 275: Certain taxes - § 275(a): Pub. L. 108–357, § 101(b)(5)(B), struck out at end of concluding provisions “A rule similar to the rule of section 943(d) shall apply for purposes of paragraph (4)(C).” - § 275(a)(4): Pub. L. 108–357, § 101(b)(5)(A), inserted “or” at end of subpar. (A), substituted period for “or” at end of subpar. (B), and struck out subpar. (C) which read as follows: “such taxes are paid or accrued with respect to qualifying foreign trade income (as defined in section 941).” - § 275(a)(6): Pub. L. 108–357, § 802(b)(1), inserted “45,” before “46,”. ## § 280C: Certain expenses for which credits are allowable - § 280C(d): Pub. L. 108–357 added subsec. (d). ## § 305: Distributions of stock and stock rights - § 305(e)(7): Pub. L. 108–357 added par. (7). ## § 312: Effect on earnings and profits - § 312(j): Pub. L. 108–357, § 413(c)(4), struck out subsec. (j) which related to earnings and profits of foreign investment companies. - § 312(k)(3)(B): Pub. L. 108–357, § 338(b)(3), substituted “179A, or 179B” for “or 179A” in heading and two places in text. - § 312(m): Pub. L. 108–357, § 413(c)(5), struck out “, a foreign investment company (within the meaning of section 1246(b)), or a foreign personal holding company (within the meaning of section 552)” before “and the issuance”. ## § 332: Complete liquidations of subsidiaries - § 332(d): Pub. L. 108–357 added subsec. (d). ## § 334: Basis of property received in liquidations - § 334(b)(1): Pub. L. 108–357 reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “If property is received by a corporate distributee in a distribution in a complete liquidation to which section 332 applies (or in a transfer described in section 337(b)(1)), the basis of such property in the hands of such distributee shall be the same as it would be in the hands of the transferor; except that, in any case in which gain or loss is recognized by the liquidating corporation with respect to such property, the basis of such property in the hands of such distributee shall be the fair market value of the property at the time of the distribution.” ## § 338: Certain stock purchases treated as asset acquisitions - § 338(h)(13): Pub. L. 108–357 inserted at end “The preceding sentence shall not apply with respect to a qualified stock purchase for which an election is made under paragraph (10).” ## § 351: Transfer to corporation controlled by transferor - § 351(g)(3)(A): Pub. L. 108–357 inserted at end “Stock shall not be treated as participating in corporate growth to any significant extent unless there is a real and meaningful likelihood of the shareholder actually participating in the earnings and growth of the corporation.” ## § 357: Assumption of liability - § 357(c)(1)(B): Pub. L. 108–357 inserted “with respect to which stock or securities of the corporation to which the assets are transferred are distributed in a transaction which qualifies under section 355” after “section 368(a)(1)(D)”. ## § 361: Nonrecognition of gain or loss to corporations; treatment of distributions - § 361(b)(3): Pub. L. 108–357 inserted at end “In the case of a reorganization described in section 368(a)(1)(D) with respect to which stock or securities of the corporation to which the assets are transferred are distributed in a transaction which qualifies under section 355, this paragraph shall apply only to the extent that the sum of the money and the fair market value of other property transferred to such creditors does not exceed the adjusted bases of such assets transferred.” ## § 362: Basis to corporations - § 362(e): Pub. L. 108–357 added subsec. (e). ## § 367: Foreign corporations - § 367(d)(2)(C): Pub. L. 108–357 inserted at end “For purposes of applying section 904(d), any such amount shall be treated in the same manner as if such amount were a royalty.” ## § 382: Limitation on net operating loss carryforwards and certain built-in losses following ownership change - § 382(l)(4)(B)(ii): Pub. L. 108–357 substituted “or a REMIC to which part IV of subchapter M applies,” for “a REMIC to which part IV of subchapter M applies, or a FASIT to which part V of subchapter M applies,”. ## § 409A: Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans - Enacted 26 U.S.C. § 409A. ## § 420: Transfers of excess pension assets to retiree health accounts - § 420(c)(3)(E): Pub. L. 108–357 designated existing provisions as cl. (i), inserted heading, and added cl. (ii). ## § 421: General rules - § 421(b): Pub. L. 108–357, § 251(b), inserted at end “No amount shall be required to be deducted and withheld under chapter 24 with respect to any increase in income attributable to a disposition described in the preceding sentence.” - § 421(d): Pub. L. 108–357, § 905(a), added subsec. (d). ## § 423: Employee stock purchase plans - § 423(c): Pub. L. 108–357 inserted at end of concluding provisions “No amount shall be required to be deducted and withheld under chapter 24 with respect to any amount treated as compensation under this subsection.” ## § 443: Returns for a period of less than 12 months - § 443(e)(3), § 443(e)(4), § 443(e): Pub. L. 108–357 redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) which read as follows: “Undistributed foreign personal holding company income, see section 557.” ## § 451: General rule for taxable year of inclusion - § 451(e): Pub. L. 108–357, § 311(c), added par. (3). - § 451(i): Pub. L. 108–357, § 909(a), added subsec. (i). ## § 453: Installment method - § 453(f)(4)(B): Pub. L. 108–357 struck out “is issued by a corporation or a government or political subdivision thereof and” before “is readily tradable”. ## § 465: Deductions limited to amount at risk - § 465(c)(7)(B): Pub. L. 108–357 inserted “or” at end of cl. (i), redesignated cl. (iii) as (ii), and struck out former cl. (ii) which read as follows: “a foreign personal holding company (as defined in section 552(a)), or”. ## § 469: Passive activity losses and credits limited - § 469(i)(3): Pub. L. 108–357, § 102(d)(5), inserted “199,” before “219,”. - § 469(k)(4): Pub. L. 108–357, § 331(g), added par. (4). ## § 470: Limitation on deductions allocable to property used by governments or other tax-exempt entities - Enacted 26 U.S.C. § 470. ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(12)(C): Pub. L. 108–357, § 319(a)(1), added cls. (ii) to (v) and concluding provisions and struck out former cl. (ii) which read as follows: “from the prepayment of a loan under section 306A, 306B, or 311 of the Rural Electrification Act of 1936 (as in effect on January 1, 1987).” - § 501(c)(12)(E), § 501(c)(12)(F), § 501(c)(12)(G): Pub. L. 108–357, § 319(a)(2), added subpars. (E) to (G). - § 501(c)(12)(H): Pub. L. 108–357, § 319(b), added subpar. (H). ## § 508: Special rules with respect to section 501(c)(3) organizations - § 508(d)(1), § 508(d)(2): Pub. L. 108–357 struck out “556(b)(2),” after “545(b)(2),”. ## § 512: Unrelated business taxable income - § 512(b)(18): Pub. L. 108–357, § 702(a), added par. (18) relating to treatment of gain or loss on sale or exchange of certain brownfield sites. - § 512(b)(18): Pub. L. 108–357, § 319(c), added par. (18) relating to treatment of mutual or cooperative electric companies. - § 512(e)(1): Pub. L. 108–357, § 233(d), inserted “1361(c)(2)(A)(vi) or” before “1361(c)(6)” in introductory provisions. ## § 514: Unrelated debt-financed income - § 514(b)(1)(E): Pub. L. 108–357, § 702(b), added subpar. (E). - § 514(c)(6): Pub. L. 108–357, § 247(a), reenacted heading without change and amended text of par. (6) generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘acquisition indebtedness’ does not include an obligation, to the extent that it is insured by the Federal Housing Administration, to finance the purchase, rehabilitation, or construction of housing for low and moderate income persons.” ## § 521: Exemption of farmers’ cooperatives from tax - § 521(b)(7): Pub. L. 108–357 added par. (7). ## § 535: Accumulated taxable income - § 535(d)(2): Pub. L. 108–357 substituted “section 904(h)(6)” for “section 904(g)(6)”. ## § 542: Definition of personal holding company - § 542(c)(5): Pub. L. 108–357, § 413(b)(1)(A), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “a foreign personal holding company as defined in section 552;”. - § 542(c)(7), § 542(c)(8), § 542(c): Pub. L. 108–357, § 413(b)(1)(B)–(D), redesignated pars. (8) and (9) as (7) and (8), respectively, inserted “and” at end of par. (7), substituted period for “; and” at end of par. (8), and struck out former pars. (7) and (10) relating to foreign corporations whose outstanding stock during the last half of the taxable year is owned, directly or indirectly, by nonresident aliens and passive foreign investment companies, respectively. ## § 543: Personal holding company income - § 543(b)(1): Pub. L. 108–357 inserted “and” at end of subpar. (A), substituted a period for “, and” at end of subpar. (B), and struck out subpar. (C) which read as follows: “in the case of a foreign corporation all of the outstanding stock of which during the last half of the taxable year is owned by nonresident alien individuals (whether directly or indirectly through foreign estates, foreign trusts, foreign partnerships, or other foreign corporations), all items of income which would, but for this subparagraph, constitute personal holding company income under any paragraph of subsection (a) other than paragraph (7) thereof:”. ## § 562: Rules applicable in determining dividends eligible for dividends paid deduction - § 562(b)(1): Pub. L. 108–357 struck out “or a foreign personal holding company described in section 552” after “section 542” in introductory provisions. ## § 563: Rules relating to dividends paid after close of taxable year - § 563(c), § 563: Pub. L. 108–357 redesignated subsec. (d) as (c), substituted “subsection (a) or (b)” for “subsection (a), (b), or (c)”, and struck out former subsec. (c) which related to foreign personal holding company tax. ## § 582: Bad debts, losses, and gains with respect to securities held by financial institutions - § 582(c)(1): Pub. L. 108–357 struck out “, and any regular interest in a FASIT,” before “shall be treated”. ## § 613: Percentage depletion - § 613(a): Pub. L. 108–357, which directed the insertion of “and without the deduction under section 199” after “without allowances for depletion”, was executed by making the insertion after “without allowance for depletion”, to reflect the probable intent of Congress. ## § 631: Gain or loss in the case of timber, coal, or domestic iron ore - § 631(b): Pub. L. 108–357, in heading, struck out “with a retained economic interest” after “timber”, in first sentence, substituted “either retains an economic interest in such timber or makes an outright sale of such timber” for “retains an economic interest in such timber”, and, in third sentence, substituted “In the case of disposal of timber with a retained economic interest, the date of disposal” for “The date of disposal”. ## § 704: Partner’s distributive share - § 704(c)(1)(C): Pub. L. 108–357 added subpar. (C). ## § 709: Treatment of organization and syndication fees - § 709(b): Pub. L. 108–357 substituted “Deduction” for “Amortization” in heading, added par. (2), redesignated former par. (2) as (3), and amended heading and text of par. (1) generally. Prior to amendment, text of par. (1) read as follows: “Amounts paid or incurred to organize a partnership may, at the election of the partnership (made in accordance with regulations prescribed by the Secretary), be treated as deferred expenses. Such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the partnership (beginning with the month in which the partnership begins business), or if the partnership is liquidated before the end of such 60-month period, such deferred expenses (to the extent not deducted under this section) may be deducted to the extent provided in section 165.” ## § 734: Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction - § 734: Pub. L. 108–357, § 833(c)(5)(A), substituted “Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction” for “Optional adjustment to basis of undistributed partnership property” in section catchline. - § 734(a): Pub. L. 108–357, § 833(c)(1), inserted “or unless there is a substantial basis reduction” before period at end. - § 734(b): Pub. L. 108–357, § 833(c)(2), inserted “or unless there is a substantial basis reduction” after “section 754 is in effect” in introductory provisions. - § 734(d): Pub. L. 108–357, § 833(c)(3), added subsec. (d). - § 734(e): Pub. L. 108–357, § 833(c)(4), added subsec. (e). ## § 743: Special rules where section 754 election or substantial built-in loss - § 743: Pub. L. 108–357, § 833(b)(6)(A), substituted “Special rules where section 754 election or substantial built-in loss” for “Optional adjustment to basis of partnership property” in section catchline. - § 743(a): Pub. L. 108–357, § 833(b)(1), inserted “or unless the partnership has a substantial built-in loss immediately after such transfer” before period at end. - § 743(b): Pub. L. 108–357, § 833(b)(2), inserted “or which has a substantial built-in loss immediately after such transfer” after “section 754 is in effect” in introductory provisions. - § 743(d): Pub. L. 108–357, § 833(b)(3), added subsec. (d). - § 743(e): Pub. L. 108–357, § 833(b)(4)(A), added subsec. (e). - § 743(f): Pub. L. 108–357, § 833(b)(5), added subsec. (f). ## § 751: Unrealized receivables and inventory items - § 751(d)(2), § 751(d)(3), § 751(d): Pub. L. 108–357 inserted “and” at end of par. (2), redesignated par. (4) as (3) and substituted “paragraph (1) or (2)” for “paragraph (1), (2), or (3)”, and struck out former par. (3) which read as follows: “any other property of the partnership which, if sold or exchanged by the partnership, would result in a gain taxable under subsection (a) of section 1246 (relating to gain on foreign investment company stock), and”. ## § 755: Rules for allocation of basis - § 755(c): Pub. L. 108–357 added subsec. (c). ## § 845: Certain reinsurance agreements - § 845(a): Pub. L. 108–357 substituted “amount, source, or character” for “source and character” in concluding provisions. ## § 851: Definition of regulated investment company - § 851(b): Pub. L. 108–357, § 331(b), inserted “(other than a qualified publicly traded partnership as defined in subsection (h))” after “derived from a partnership” in concluding provisions. - § 851(b)(2): Pub. L. 108–357, § 331(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “at least 90 percent of its gross income is derived from dividends, interest, payments with respect to securities loans (as defined in section 512(a)(5)), and gains from the sale or other disposition of stock or securities (as defined in section 2(a)(36) of the Investment Company Act of 1940, as amended) or foreign currencies, or other income (including but not limited to gains from options, futures, or forward contracts) derived with respect to its business of investing in such stock, securities, or currencies; and”. - § 851(b)(3)(B): Pub. L. 108–357, § 331(f), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “not more than 25 percent of the value of its total assets is invested in the securities (other than Government securities or the securities of other regulated investment companies) of any one issuer, or of two or more issuers which the taxpayer controls and which are determined, under regulations prescribed by the Secretary, to be engaged in the same or similar trades or businesses or related trades or businesses.” - § 851(c)(5), § 851(c)(6): Pub. L. 108–357, § 331(c), added par. (5) and redesignated former par. (5) as (6). - § 851(h): Pub. L. 108–357, § 331(d), added subsec. (h). ## § 856: Definition of real estate investment trust - § 856(c)(5)(E): Pub. L. 108–357, § 835(b)(4), struck out last sentence which read as follows: “The principles of the preceding provisions of this subparagraph shall apply to regular interests in a FASIT.” - § 856(c)(5)(G): Pub. L. 108–357, § 243(d), reenacted heading without change and amended text of subpar. (G) generally. Prior to amendment, subpar. (G) provided that, except to the extent provided by regulations, payment to a real estate investment trust under an interest rate swap or cap agreement, option, futures contract, forward rate agreement, or any similar financial instrument, entered into by the trust in a transaction to reduce the interest rate risks with respect to any indebtedness incurred or to be incurred by the trust to acquire or carry real estate assets, and gain from the sale or other disposition of any such investment, would be treated as income qualifying under par. (2). - § 856(c)(6)(A): Pub. L. 108–357, § 243(f)(2), added subpar. (A) and struck out former subpar. (A) which read as follows: “the nature and amount of each item of its gross income described in such paragraphs is set forth in a schedule attached to its income tax return for such taxable year;”. - § 856(c)(6)(B), § 856(c)(6): Pub. L. 108–357, § 243(f)(2), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “the inclusion of any incorrect information in the schedule referred to in subparagraph (A) is not due to fraud with intent to evade tax; and”. - § 856(c)(7): Pub. L. 108–357, § 243(f)(1), added par. (7). - § 856(c)(7): Pub. L. 108–357, § 243(a)(1), struck out par. (7) which provided that securities of an issuer which were straight debt would not be taken into account in applying paragraph (4)(B)(iii)(III), if the issuer was an individual, if the only securities of such issuer which were held by the trust or a taxable REIT subsidiary of the trust were straight debt, or if the issuer was a partnership and the trust held at least a 20 percent profits interest in the partnership. - § 856(d)(8)(A): Pub. L. 108–357, § 243(b), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The requirements of this subparagraph are met with respect to any property if at least 90 percent of the leased space of the property is rented to persons other than taxable REIT subsidiaries of such trust and other than persons described in section 856(d)(2)(B). The preceding sentence shall apply only to the extent that the amounts paid to the trust as rents from real property (as defined in paragraph (1) without regard to paragraph (2)(B)) from such property are substantially comparable to such rents made by the other tenants of the trust’s property for comparable space.” - § 856(g)(1): Pub. L. 108–357, § 243(f)(3)(A), inserted “unless paragraph (5) applies” before “. Such termination”. - § 856(g)(5): Pub. L. 108–357, § 243(f)(3)(B), added par. (5). - § 856(m): Pub. L. 108–357, § 243(a)(2), added subsec. (m). ## § 857: Taxation of real estate investment trusts and their beneficiaries - § 857(b)(2)(E): Pub. L. 108–357, § 243(f)(4), substituted “(7) of this subsection, section 856(c)(7)(B)(iii), and section 856(g)(1).” for “(7)”. - § 857(b)(3)(F): Pub. L. 108–357, § 418(b), added subpar. (F). - § 857(b)(5)(A)(i): Pub. L. 108–357, § 243(e), substituted “95 percent” for “90 percent”. - § 857(b)(6)(D), § 857(b)(6)(E), § 857(b)(6)(F): Pub. L. 108–357, § 321(a), added subpar. (D) and redesignated former subpars. (D) and (E) as (E) and (F), respectively. - § 857(b)(7)(B)(ii), § 857(b)(7)(B)(iii), § 857(b)(7)(B)(iv), § 857(b)(7)(B)(v), § 857(b)(7)(B)(vi), § 857(b)(7)(B): Pub. L. 108–357, § 243(c), redesignated cls. (iii) to (vii) as (ii) to (vi), respectively, and struck out former cl. (ii), which related to exception for amounts received by a REIT for services furnished or rendered by a taxable REIT subsidiary that were described in section 856(d)(1)(B) of this title, or from a taxable REIT subsidiary that were described in par. (7)(C)(ii) of such section. ## § 860: Deduction for deficiency dividends - § 860(e)(4): Pub. L. 108–357 added par. (4). ## § 860G: Other definitions and special rules - § 860G(a)(1): Pub. L. 108–357, § 835(b)(5)(A), inserted at end of concluding provisions “An interest shall not fail to qualify as a regular interest solely because the specified principal amount of the regular interest (or the amount of interest accrued on the regular interest) can be reduced as a result of the nonoccurrence of 1 or more contingent payments with respect to any reverse mortgage loan held by the REMIC if, on the startup day for the REMIC, the sponsor reasonably believes that all principal and interest due under the regular interest will be paid at or prior to the liquidation of the REMIC.” - § 860G(a)(3): Pub. L. 108–357, § 835(b)(7), inserted at end of concluding provisions “For purposes of subparagraph (A), if more than 50 percent of the obligations transferred to, or purchased by, the REMIC are originated by the United States or any State (or any political subdivision, agency, or instrumentality of the United States or any State) and are principally secured by an interest in real property, then each obligation transferred to, or purchased by, the REMIC shall be treated as secured by an interest in real property.” - § 860G(a)(3): Pub. L. 108–357, § 835(b)(5)(B), inserted before period at end of concluding provisions “, and any reverse mortgage loan (and each balance increase on such loan meeting the requirements of subparagraph (A)(iii)) shall be treated as an obligation secured by an interest in real property”. - § 860G(a)(3)(A)(iii): Pub. L. 108–357, § 835(b)(8)(A), added cl. (iii). - § 860G(a)(3)(B), § 860G(a)(3)(C), § 860G(a)(3): Pub. L. 108–357, § 835(b)(6), inserted “and” at end of subpar. (B), substituted period for “, and” at end of subpar. (C), and struck out subpar. (D) which read as follows: “any regular interest in a FASIT which is transferred to, or purchased by, the REMIC as described in clauses (i) and (ii) of subparagraph (A) but only if 95 percent or more of the value of the assets of such FASIT is at all times attributable to obligations described in subparagraph (A) (without regard to such clauses).” - § 860G(a)(7)(B): Pub. L. 108–357, § 835(b)(8)(B), reenacted heading without change and amended text of subpar. (B) generally. Prior to amendment, text read as follows: “For purposes of subparagraph (A), the term ‘qualified reserve fund’ means any reasonably required reserve to provide for full payment of expenses of the REMIC or amounts due on regular interests in the event of defaults on qualified mortgages or lower than expected returns on cash flow investments. The amount of any such reserve shall be promptly and appropriately reduced as payments of qualified mortgages are received.” ## § 861: Income from sources within the United States - § 861(a)(1): Pub. L. 108–357 added subpar. (C). ## § 864: Definitions and special rules - § 864(c)(4)(B): Pub. L. 108–357, § 894(a), added concluding provisions. - § 864(d)(2): Pub. L. 108–357, § 413(c)(12), redesignated subpars. (B) and (C) as (A) and (B), respectively, and struck out former subpar. (A) which read as follows: “Part III of subchapter G of this chapter (relating to foreign personal holding companies).” - § 864(d)(5)(A): Pub. L. 108–357, § 403(b)(6), substituted “(C)(iii)(II)” for “(C)(iii)(III)”. - § 864(e)(3): Pub. L. 108–357, § 101(b)(6), struck out “(A) In general” before “For purposes” and struck out heading and text of subpar. (B). Text read as follows: “For purposes of allocating and apportioning any interest expense, there shall not be taken into account any qualifying foreign trade property (as defined in section 943(a)) which is held by the taxpayer for lease or rental in the ordinary course of trade or business for use by the lessee outside the United States (as defined in section 943(b)(2)).” - § 864(e)(7)(B): Pub. L. 108–357, § 401(b)(1), inserted “and in other circumstances where such allocation would be appropriate to carry out the purposes of this subsection” before comma at end. - § 864(e)(7)(F), § 864(e)(7)(G): Pub. L. 108–357, § 401(b)(2), added subpar. (F) and redesignated former subpar. (F) as (G). - § 864(f), § 864(g): Pub. L. 108–357, § 401(a), added subsec. (f) and redesignated former subsec. (f) as (g). ## § 871: Tax on nonresident alien individuals - § 871(i)(2)(D): Pub. L. 108–357, § 409(a), added subpar. (D). - § 871(k), § 871(l): Pub. L. 108–357, § 411(a)(1), added subsec. (k) and redesignated former subsec. (k) as (l). ## § 872: Gross income - § 872(b)(5), § 872(b)(6), § 872(b)(7), § 872(b)(8): Pub. L. 108–357 added par. (5) and redesignated former pars. (5) to (7) as (6) to (8), respectively. ## § 877: Expatriation to avoid tax - § 877(a): Pub. L. 108–357, § 804(a)(1), reenacted heading without change and amended text of subsec. (a) generally. Prior to amendment, subsec. (a) stated general rule on taxation of nonresident alien individuals who lost United States citizenship and provided that an individual would be treated as having a tax avoidance purpose if the average annual net income tax was greater than $100,000 or the net worth of the individual was $500,000 or more. - § 877(c): Pub. L. 108–357, § 804(a)(2), amended heading and text of subsec. (c) generally, substituting provisions setting forth exceptions for dual citizens and certain minors for provisions relating to inapplicability of presumption of tax avoidance to dual citizens, long-term foreign residents, minors who renounced citizenship upon reaching age of majority, and individuals specified in regulations. - § 877(g): Pub. L. 108–357, § 804(c), added subsec. (g). ## § 881: Tax on income of foreign corporations not connected with United States business - § 881(b): Pub. L. 108–357, § 420(c)(1), substituted “possessions” for “Guam and Virgin Islands corporations” in heading. - § 881(b)(1): Pub. L. 108–357, § 420(c)(2), substituted “Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands” for “In general” in heading. - § 881(b)(2), § 881(b)(3): Pub. L. 108–357, § 420(a), added par. (2) and redesignated former par. (2) as (3). - § 881(e), § 881(f): Pub. L. 108–357, § 411(a)(2), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 883: Exclusions from gross income - § 883(a)(4): Pub. L. 108–357 substituted “(6), (7), and (8)” for “(5), (6), and (7)”. ## § 897: Disposition of investment in United States real property - § 897(h): Pub. L. 108–357, § 411(c)(5), substituted “certain investment entities” for “REITS” in heading. - § 897(h)(1): Pub. L. 108–357, § 418(a), inserted at end “Notwithstanding the preceding sentence, any distribution by a REIT with respect to any class of stock which is regularly traded on an established securities market located in the United States shall not be treated as gain recognized from the sale or exchange of a United States real property interest if the shareholder did not own more than 5 percent of such class of stock at any time during the taxable year.” - § 897(h)(1): Pub. L. 108–357, § 411(c)(1), substituted “qualified investment entity” for “REIT” in two places. - § 897(h)(2): Pub. L. 108–357, § 411(c)(2), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘United States real property interest’ does not include any interest in a domestically-controlled REIT.” - § 897(h)(3): Pub. L. 108–357, § 411(c)(2), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “In the case of a domestically-controlled REIT, rules similar to the rules of subsection (d) shall apply to the foreign ownership percentage of any gain.” - § 897(h)(4)(A): Pub. L. 108–357, § 411(c)(3), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘REIT’ means a real estate investment trust.” - § 897(h)(4)(B): Pub. L. 108–357, § 411(c)(3), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “The term ‘domestically-controlled REIT’ means a REIT in which at all times during the testing period less than 50 percent in value of the stock was held directly or indirectly by foreign persons.” - § 897(h)(4)(C), § 897(h)(4)(D)(iii): Pub. L. 108–357, § 411(c)(4), substituted “qualified investment entity” for “REIT”. ## § 898: Taxable year of certain foreign corporations - § 898(b)(1)(A): Pub. L. 108–357, § 413(c)(13)(A), amended subpar. (A) generally. Prior to amendment, subpar (A) read as follows: - § 898(b)(2)(B): Pub. L. 108–357, § 413(c)(13)(B), struck out “and sections 551(f) and 554, whichever are applicable,” after “section 958”. - § 898(b)(3): Pub. L. 108–357, § 413(c)(13)(C), reenacted heading without change, struck out “(A) In general” before “The term”, and struck out heading and text of subpar. (B). Text read as follows: “In the case of any foreign personal holding company (as defined in section 552) which is not a specified foreign corporation by reason of paragraph (1)(A)(i), the term ‘United States shareholder’ means any person who is treated as a United States shareholder under section 551.” - § 898(c): Pub. L. 108–357, § 413(c)(13)(D), reenacted heading without change and amended text of subsec. (c) generally, substituting provisions stating general rule and relating to 1-month deferral and majority U.S. shareholder year, consisting of pars. (1) to (3), for provisions stating general rule and relating to 1-month deferral and majority U.S. shareholder year, consisting of par. (1), and provisions relating to required year in the case of a foreign personal holding company, consisting of par. (2). ## § 901: Taxes of foreign countries and of possessions of United States - § 901(b)(5): Pub. L. 108–357, § 405(b), substituted “any person” for “any individual”. - § 901(k): Pub. L. 108–357, § 832(b), inserted “on dividends” after “taxes” in heading. - § 901(l), § 901(m): Pub. L. 108–357, § 832(a), added subsec. (l) and redesignated former subsec. (l) as (m). ## § 903: Credit for taxes in lieu of income, etc., taxes - § 903: Pub. L. 108–357 substituted “164(a)” for “114, 164(a),”. ## § 904: Limitation on credit - § 904(c): Pub. L. 108–357, § 417(a), struck out “in the second preceding taxable year,” before “in the first preceding taxable year” and substituted “and in any of the first 10” for “, and in the first, second, third, fourth, or fifth”. - § 904(d)(1): Pub. L. 108–357, § 404(a), reenacted heading without change and amended text of par. (1) generally, substituting provisions relating to applicability of subsecs. (a), (b), and (c) and sections 902, 907, and 960 to passive category income and general category income, for provisions relating to applicability of subsecs. (a), (b), and (c) and sections 902, 907, and 960 to passive income, high withholding tax interest, financial services income, shipping income, certain dividends from a DISC or former DISC, taxable income attributable to foreign trade income, certain distributions from a FSC or a former FSC, and income other than income previously described. - § 904(d)(1): Pub. L. 108–357, § 403(b)(1), struck out subpar. (E) which read as follows: “in the case of a corporation, dividends from noncontrolled section 902 corporations out of earnings and profits accumulated in taxable years beginning before January 1, 2003,”. - § 904(d)(2)(A): Pub. L. 108–357, § 404(b), added subpar. (A). Former subpar. (A) redesignated (B). - § 904(d)(2)(A)(ii): Pub. L. 108–357, § 413(c)(14), reenacted heading without change and amended text of cl. (ii) generally. Prior to amendment, text read as follows: “Except as provided in clause (iii), the term ‘passive income’ includes any amount includible in gross income under section 551 or, except as provided in subparagraph (E)(iii) or paragraph (3)(I), section 1293 (relating to certain passive foreign investment companies).” - § 904(d)(2)(B): Pub. L. 108–357, § 404(b), redesignated subpar. (A) as (B) and struck out former subpar. (B), which defined the term “high withholding tax interest”. - § 904(d)(2)(B)(iii): Pub. L. 108–357, § 404(f)(1), redesignated subcls. (II) and (III) as (I) and (II), respectively, and struck out former subcl. (I) which read as follows: “any income described in a subparagraph of paragraph (1) other than subparagraph (A),”. - § 904(d)(2)(B)(v): Pub. L. 108–357, § 404(c), added cl. (v). - § 904(d)(2)(C): Pub. L. 108–357, § 404(d), added subpar. (C). Former subpar. (C) redesignated (D). - § 904(d)(2)(C)(iii): Pub. L. 108–357, § 403(b)(2), inserted “and” at end of subcl. (I), redesignated subcl. (III) as (II), and struck out former subcl. (II) which read as follows: “any dividend from a noncontrolled section 902 corporation out of earnings and profits accumulated in taxable years beginning before January 1, 2003, and”. - § 904(d)(2)(D): Pub. L. 108–357, § 404(d), redesignated subpar. (C) as (D) and struck out heading and text of former subpar. (D). Text read as follows: “The term ‘shipping income’ means any income received or accrued by any person which is of a kind which would be foreign base company shipping income (as defined in section 954(f) as in effect before its repeal). Such term does not include any financial services income.” - § 904(d)(2)(D): Pub. L. 108–357, § 403(b)(3), substituted “Such term does not include any financial services income” for “Such term does not include any dividend from a noncontrolled section 902 corporation out of earnings and profits accumulated in taxable years beginning before January 1, 2003 and does not include any financial services income”. - § 904(d)(2)(D)(i): Pub. L. 108–357, § 404(f)(2), inserted “or” at end of subcl. (I), added subcl. (II), and struck out former subcls. (II) and (III) which read as follows: - § 904(d)(2)(D): Pub. L. 108–357, § 404(f)(3), which directed striking out of cl. (iii) “as so redesignated and amended by section 404(b)(3)”, was executed by striking out heading and text of cl. (iii) as amended by section 403(b)(2) and redesignated by section 404(d), to reflect the probable intent of Congress. Text read as follows: “The term ‘financial services income’ does not include— - § 904(d)(2)(E)(i): Pub. L. 108–357, § 403(b)(4)(A), inserted “or (4)” after “paragraph (3)”. - § 904(d)(2)(E)(ii), § 904(d)(2)(E): Pub. L. 108–357, § 403(b)(4)(B), redesignated cl. (iii) as (ii) and struck out heading and text of former cl. (ii). Text read as follows: “If a foreign corporation is a noncontrolled section 902 corporation with respect to the taxpayer, taxes on high withholding tax interest (to the extent imposed at a rate in excess of 5 percent) shall not be treated as foreign taxes for purposes of determining the amount of foreign taxes deemed paid by the taxpayer under section 902.” - § 904(d)(2)(E): Pub. L. 108–357, § 403(b)(4)(B), struck out heading and text of cl. (iv). Text read as follows: “All noncontrolled section 902 corporations which are not passive foreign investment companies (as defined in section 1297) shall be treated as one noncontrolled section 902 corporation for purposes of paragraph (1).” - § 904(d)(2)(H), § 904(d)(2)(I), § 904(d)(2)(J): Pub. L. 108–357, § 404(e), added subpar. (H) and redesignated former subpars. (H) and (I) as (I) and (J), respectively. - § 904(d)(2)(K): Pub. L. 108–357, § 404(f)(5), added subpar. (K). - § 904(d)(3): Pub. L. 108–357, § 404(f)(4), reenacted heading without change and amended text of par. (3) generally, substituting provisions consisting of subpars. (A) to (H) for former subpars. (A) to (I) which contained similar provisions. - § 904(d)(3)(F)(i): Pub. L. 108–357, § 403(b)(5), substituted “or (D)” for “(D), or (E)”. - § 904(d)(4): Pub. L. 108–357, § 403(a), reenacted heading without change and amended text of par. (4) generally, substituting provisions relating to dividends from noncontrolled section 902 corporations, earnings and profits of controlled foreign corporations, and setting forth special rules, for provisions relating to treatment of applicable dividends, defining the term “applicable dividend”, and setting forth special rules. - § 904(f)(3)(D): Pub. L. 108–357, § 895(a), added subpar. (D). - § 904(g): Pub. L. 108–357, § 402(a), added subsec. (g). Former subsec. (g) redesignated (h). - § 904(h): Pub. L. 108–357, § 402(a), redesignated subsec. (g) as (h). Former subsec. (h) redesignated (i). - § 904(h)(1)(A): Pub. L. 108–357, § 413(c)(15)(A), inserted “or” at end of cl. (i), redesignated cl. (iii) as (ii), and struck out former cl. (ii) which read as follows: “section 551 (relating to foreign personal holding company income taxed to United States shareholders), or”. - § 904(h)(2): Pub. L. 108–357, § 413(c)(15)(B), struck out “foreign personal holding or” before “passive foreign investment” in heading. - § 904(i), § 904(j): Pub. L. 108–357, § 402(a), redesignated subsecs. (h) and (i) as (i) and (j), respectively. Former subsec. (j) redesignated (k). - § 904(k): Pub. L. 108–357, § 402(a), redesignated subsec. (j) as (k). Former subsec. (k) redesignated (l). - § 904(k): Pub. L. 108–357, § 404(f)(6), which directed amendment of subsec. (j)(3)(A)(i) by substituting “subsection (d)(2)(B)” for “subsection (d)(2)(A)”, was executed to subsec. (k)(3)(A)(i) to reflect the probable intent of Congress and the amendment by Pub. L. 108–357, § 402(a). See above. - § 904: Pub. L. 108–357, § 402(a), redesignated subsec. (k) as (l). ## § 907: Special rules in case of foreign oil and gas income - § 907(f)(1): Pub. L. 108–357, § 417(b)(3), struck out at end “For purposes of this subsection, the terms ‘second preceding taxable year’, and ‘first preceding taxable year’ do not include any taxable year ending before January 1, 1975.” - § 907(f)(1): Pub. L. 108–357, § 417(b)(2), substituted “and in any of the first 10” for “, and in the first, second, third, fourth, or fifth”. - § 907(f)(1): Pub. L. 108–357, § 417(b)(1), struck out “in the second preceding taxable year,” before “in the first preceding taxable year”. ## § 931: Income from sources within Guam, American Samoa, or the Northern Mariana Islands - § 931(d): Pub. L. 108–357 amended heading and text of subsec. (d) generally, substituting provisions relating to employees of the United States for provisions consisting of pars. (1) to (3) relating to special rules concerning employees of the United States, determination of source of income, and determination of residency. ## § 932: Coordination of United States and Virgin Islands income taxes - § 932(a)(1)(A)(i), § 932(c)(1)(A), § 932(c)(4)(A): Pub. L. 108–357 substituted “during the entire taxable year” for “at the close of the taxable year”. ## § 934: Limitation on reduction in income tax liability incurred to the Virgin Islands - § 934(b)(4): Pub. L. 108–357 struck out “the Virgin Islands or” before “the United States” in two places. ## § 937: Residence and source rules involving possessions - Enacted 26 U.S.C. § 937. ## § 951: Amounts included in gross income of United States shareholders - § 951(c), § 951: Pub. L. 108–357 redesignated subsecs. (e) and (f) as (c) and (d), respectively, and struck out former subsecs. (c) and (d), which related to coordination of provisions with election of a foreign investment company to distribute income and coordination with foreign personal holding company provisions, respectively. ## § 952: Subpart F income defined - § 952(c)(1)(B)(iii): Pub. L. 108–357 redesignated subcls. (II) to (VI) as (I) to (V), respectively, and struck out former subcl. (I) which read as follows: “foreign base company shipping income,”. ## § 954: Foreign base company income - § 954(a): Pub. L. 108–357, § 415(a)(1), struck out par. (4) which read as follows: “the foreign base company shipping income for the taxable year (determined under subsection (f) and reduced as provided in subsection (b)(5)), and”. - § 954(b)(5): Pub. L. 108–357, § 415(c)(2)(A), struck out “the foreign base company shipping income,” after “the foreign base company services income,,”. - § 954(b): Pub. L. 108–357, § 415(c)(2)(B), (C), redesignated par. (8) as (6) and struck out former pars. (6) and (7) which set forth special rules and special exclusion for foreign base company shipping income. - § 954(c)(1)(C)(i), § 954(c)(1)(C)(ii): Pub. L. 108–357, § 414(a), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) read as follows: - § 954(c)(1): Pub. L. 108–357, § 413(b)(2), added subpar. (I). - § 954(c)(2)(A): Pub. L. 108–357, § 415(b), inserted at end “For purposes of the preceding sentence, rents derived from leasing an aircraft or vessel in foreign commerce shall not fail to be treated as derived in the active conduct of a trade or business if, as determined under regulations prescribed by the Secretary, the active leasing expenses are not less than 10 percent of the profit on the lease.” - § 954(c)(2)(C)(i): Pub. L. 108–357, § 414(c), inserted “and transactions involving physical settlement” after “(including hedging transactions”. - § 954(c)(4): Pub. L. 108–357, § 412(a), added par. (4). - § 954(c)(5): Pub. L. 108–357, § 414(b), added par. (5). - § 954(f): Pub. L. 108–357, § 415(a)(2), struck out subsec. (f) which defined “foreign base company shipping income” for purposes of subsec. (a)(4). - § 954(h)(3)(E): Pub. L. 108–357, § 416(a), added subpar. (E). ## § 956: Investment of earnings in United States property - § 956(c)(2): Pub. L. 108–357, § 407(b), substituted “, (K), and (L)” for “and (K)” in concluding provisions. - § 956(c)(2)(A): Pub. L. 108–357, § 837(a), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “obligations of the United States, money, or deposits with persons carrying on the banking business;”. - § 956(c)(2)(L), § 956(c)(2): Pub. L. 108–357, § 407(a), added subpars. (L) and (M). ## § 957: Controlled foreign corporations; United States persons - § 957(c): Pub. L. 108–357, § 908(c)(5)(B), struck out “derived from sources within a possession, was effectively connected with the conduct of a trade or business within a possession, or” after “whether income was” in concluding provisions. - § 957(c)(2)(B): Pub. L. 108–357, § 908(c)(5)(A), substituted “active conduct of a” for “conduct of an active”. ## § 965: Treatment of deferred foreign income upon transition to participation exemption system of taxation - Enacted 26 U.S.C. § 965. ## § 986: Determination of foreign taxes and foreign corporation’s earnings and profits - § 986(a)(1)(D): Pub. L. 108–357, § 408(a), added subpar. (D). Former subpar. (D) redesignated (E). - § 986(a)(1)(E): Pub. L. 108–357, § 408(b)(1), added subpar. (E). Former subpar. (E) redesignated (F). - § 986(a)(1)(E): Pub. L. 108–357, § 408(a), redesignated subpar. (D) as (E). - § 986(a)(1)(F): Pub. L. 108–357, § 408(b)(1), redesignated subpar. (E) as (F). - § 986(a)(2): Pub. L. 108–357, § 408(b)(2), inserted “or (E)” after “subparagraph (A)” in introductory provisions. ## § 989: Other definitions and special rules - § 989(b)(3): Pub. L. 108–357 struck out “, 551(a),” after “section 951(a)(1)(A)”. ## § 999: Reports by taxpayers; determinations - § 999(c)(1): Pub. L. 108–357 struck out “941(a)(5),” after “sections 908(a),”. ## § 1014: Basis of property acquired from a decedent - § 1014(b)(5): Pub. L. 108–357 inserted “and before January 1, 2005,” after “August 26, 1937,”. ## § 1016: Adjustments to basis - § 1016(a)(13): Pub. L. 108–357, § 413(c)(19), struck out par. (13) which read as follows: “to the extent provided in section 551(e) in the case of the stock of United States shareholders in a foreign personal holding company;”. - § 1016(a)(29): Pub. L. 108–357, § 245(c)(2), added par. (29). - § 1016(a)(30): Pub. L. 108–357, § 338(b)(4), added par. (30). - § 1016(a)(31): Pub. L. 108–357, § 339(d), added par. (31). ## § 1033: Involuntary conversions - § 1033(e): Pub. L. 108–357, § 311(b), designated existing provisions as par. (1), inserted heading, and added par. (2). - § 1033(f): Pub. L. 108–357, § 311(a), in heading, substituted “in certain cases” for “where there has been environmental contamination” and, in text, inserted “drought, flood, or other weather-related conditions, or” after “because of” and “in the case of soil contamination or other environmental contamination” after “including real property”. ## § 1092: Straddles - § 1092(a)(2)(A): Pub. L. 108–357, § 888(a)(1), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “In the case of any straddle which is an identified straddle as of the close of any taxable year— - § 1092(a)(2)(B): Pub. L. 108–357, § 888(a)(2)(B), inserted concluding provisions. - § 1092(a)(2)(B)(ii): Pub. L. 108–357, § 888(a)(2)(A), added cl. (ii) and struck out former cl. (ii) which read as follows: “all of the original positions of which (as identified by the taxpayer) are acquired on the same day and with respect to which— - § 1092(a)(3)(B), § 1092(a)(3)(C): Pub. L. 108–357, § 888(a)(3), added subpar. (B) and redesignated former subpar. (B) as (C). - § 1092(c)(2)(B), § 1092(c)(2): Pub. L. 108–357, § 888(a)(4), redesignated subpar. (C) as (B) and struck out heading and text of former subpar. (B). Text read as follows: “If 1 or more positions offset only a portion of 1 or more other positions, the Secretary shall by regulations prescribe the method for determining the portion of such other positions which is to be taken into account for purposes of this section.” - § 1092(d)(3): Pub. L. 108–357, § 888(c)(1), reenacted heading without change and amended text of par. (3) generally, substituting provisions directing that the term “personal property” includes stock only if it is of a certain type or of a certain type of corporation and setting forth rule for application of subsec. (e), for provisions directing that the term “personal property” includes any stock which is part of a straddle at least 1 of the offsetting positions of which is an option, a securities futures contract, or a position with respect to substantially similar or related property (other than stock), and of a certain type of corporation, and setting forth special rules relating to application of subsecs. (c), (d)(4), and (e). - § 1092(d)(8): Pub. L. 108–357, § 888(b), added par. (8). ## § 1202: Partial exclusion for gain from certain small business stock - § 1202(e)(4)(C): Pub. L. 108–357 substituted “or REMIC” for “REMIC, or FASIT”. ## § 1212: Capital loss carrybacks and carryovers - § 1212(a)(3): Pub. L. 108–357 reenacted heading without change and amended text of par. (3) generally. Prior to amendment, par. (3) provided that a net capital loss of a corporation would not be carried back under par. (1)(A) to a taxable year for which it was a foreign personal holding company (as defined in section 552), for which it was a regulated investment company (as defined in section 851), for which it was a real estate investment trust (as defined in section 856), or for which an election made by it under section 1247 was applicable (relating to election by foreign investment companies to distribute income currently). ## § 1223: Holding period of property - § 1223(10), § 1223(11), § 1223(12), § 1223(13), § 1223(14), § 1223(15), § 1223: Pub. L. 108–357 redesignated pars. (11) to (17) as (10) to (16), respectively, and struck out former par. (10) which read as follows: “In determining the period for which the taxpayer has held trust certificates of a trust to which subsection (d) of section 1246 applies, or the period for which the taxpayer has held stock in a corporation to which subsection (d) of section 1246 applies, there shall be included the period for which the trust or corporation (as the case may be) held the stock of foreign investment companies.” ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a)(2)(C), § 1245(a)(3)(C): Pub. L. 108–357, § 338(b)(5), inserted “179B,” after “179A,”. - § 1245(a): Pub. L. 108–357, § 886(b)(2), struck out par. (4) which related to special rule for player contracts if a franchise to conduct any sports enterprise is sold or exchanged. ## § 1248: Gain from certain sales or exchanges of stock in certain foreign corporations - § 1248(d)(5), § 1248(d)(6), § 1248(d): Pub. L. 108–357 redesignated pars. (6) and (7) as (5) and (6), respectively, and struck out heading and text of former par. (5). Text read as follows: “If the United States person whose stock is sold or exchanged was a qualified shareholder (as defined in section 1247(c)) of a foreign corporation which was a foreign investment company (as described in section 1246(b)(1)), the earnings and profits of the foreign corporation for taxable years in which such person was a qualified shareholder.” ## § 1253: Transfers of franchises, trademarks, and trade names - § 1253: Pub. L. 108–357 struck out heading and text of subsec. (e). Text read as follows: “This section shall not apply to the transfer of a franchise to engage in professional football, basketball, baseball, or other professional sport.” ## § 1258: Recharacterization of gain from certain financial transactions - § 1258(d)(1): Pub. L. 108–357 struck out “; except that the term ‘personal property’ shall include stock” before period at end. ## § 1260: Gains from constructive ownership transactions - § 1260(c)(2)(H), § 1260(c)(2): Pub. L. 108–357 redesignated subpar. (J) as (H) and struck out former subpars. (H) and (I), which included foreign personal holding company and foreign investment company (as defined in section 1246(b)) within definition of “pass-thru entity”. ## § 1286: Tax treatment of stripped bonds - § 1286(f), § 1286: Pub. L. 108–357 added subsec. (f) and redesignated former subsec. (f) as (g). ## § 1291: Interest on tax deferral - § 1291(b)(3)(F): Pub. L. 108–357, § 413(c)(24)(A), substituted “959(a)” for “551(d), 959(a),”. - § 1291(e): Pub. L. 108–357, § 413(c)(24)(B), inserted “(as in effect on the day before the date of the enactment of the American Jobs Creation Act of 2004)” after “section 1246” in introductory provisions. ## § 1294: Election to extend time for payment of tax on undistributed earnings - § 1294(a)(2): Pub. L. 108–357 amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The taxpayer may not make an election under paragraph (1) with respect to the undistributed PFIC earnings tax liability attributable to a qualified electing fund for the taxable year if— ## § 1301: Averaging of farm income - § 1301(a): Pub. L. 108–357, § 314(b)(1), substituted “farming business or fishing business” for “farming business” in introductory provisions. - § 1301(b)(1)(A)(i): Pub. L. 108–357, § 314(b)(2), inserted “or fishing business” after “farming business” wherever appearing. - § 1301(b)(4): Pub. L. 108–357, § 314(b)(3), added par. (4). ## § 1352: Alternative tax on qualifying shipping activities - Enacted 26 U.S.C. § 1352. ## § 1353: Notional shipping income - Enacted 26 U.S.C. § 1353. ## § 1354: Alternative tax election; revocation; termination - Enacted 26 U.S.C. § 1354. ## § 1355: Definitions and special rules - Enacted 26 U.S.C. § 1355. ## § 1356: Qualifying shipping activities - Enacted 26 U.S.C. § 1356. ## § 1357: Items not subject to regular tax; depreciation; interest - Enacted 26 U.S.C. § 1357. ## § 1358: Allocation of credits, income, and deductions - Enacted 26 U.S.C. § 1358. ## § 1359: Disposition of qualifying vessels - Enacted 26 U.S.C. § 1359. ## § 1361: S corporation defined - § 1361(b)(1)(A): Pub. L. 108–357, § 232(a), substituted “100” for “75”. - § 1361(b)(3)(A): Pub. L. 108–357, § 239(a), inserted “and in the case of information returns required under part III of subchapter A of chapter 61” after “Secretary”. - § 1361(c)(1): Pub. L. 108–357, § 231(a), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “For purposes of subsection (b)(1)(A), a husband and wife (and their estates) shall be treated as 1 shareholder.” - § 1361(c)(2)(A)(vi): Pub. L. 108–357, § 233(a), added cl. (vi). - § 1361(c)(2)(B)(vi): Pub. L. 108–357, § 233(b), added cl. (vi). - § 1361(d)(1)(C): Pub. L. 108–357, § 236(a), added subpar. (C). - § 1361(e)(2): Pub. L. 108–357, § 234(a), inserted “(determined without regard to any power of appointment to the extent such power remains unexercised at the end of such period)” after “of the trust” and substituted “1-year” for “60-day”. ## § 1362: Election; revocation; termination - § 1362(d)(3): Pub. L. 108–357, § 237(a), added subpar. (F). - § 1362(f): Pub. L. 108–357, § 238(a)(5), inserted “or a qualified subchapter S subsidiary, as the case may be” after “S corporation” in concluding provisions. - § 1362(f)(1): Pub. L. 108–357, § 238(a)(1), inserted “, section 1361(b)(3)(B)(ii),” after “subsection (a)” in introductory provisions. - § 1362(f)(1): Pub. L. 108–357, § 231(b)(1), inserted “or section 1361(c)(1)(A)(ii)” after “section 1361(b)(3)(B)(ii),” in introductory provisions. - § 1362(f)(1)(B): Pub. L. 108–357, § 238(a)(2), inserted “, section 1361(b)(3)(C),” after “subsection (d)”. - § 1362(f)(1)(B): Pub. L. 108–357, § 231(b)(2), inserted “or section 1361(c)(1)(D)(iii)” after “section 1361(b)(3)(C),”. - § 1362(f)(3)(A): Pub. L. 108–357, § 238(a)(3), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “so that the corporation is a small business corporation, or”. - § 1362(f)(4): Pub. L. 108–357, § 238(a)(4), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “the corporation, and each person who was a shareholder in the corporation at any time during the period specified pursuant to this subsection, agrees to make such adjustments (consistent with the treatment of the corporation as an S corporation) as may be required by the Secretary with respect to such period,”. ## § 1366: Pass-thru of items to shareholders - § 1366(d)(2): Pub. L. 108–357 reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows: “Any loss or deduction which is disallowed for any taxable year by reason of paragraph (1) shall be treated as incurred by the corporation in the succeeding taxable year with respect to that shareholder.” ## § 1381: Organizations to which part applies - § 1381(c): Pub. L. 108–357 added subsec. (c). ## § 1388: Definitions; special rules - § 1388(a): Pub. L. 108–357, § 312(a), inserted at end of concluding provisions “For purposes of paragraph (3), net earnings shall not be reduced by amounts paid during the year as dividends on capital stock or other proprietary capital interests of the organization to the extent that the articles of incorporation or bylaws of such organization or other contract with patrons provide that such dividends are in addition to amounts otherwise payable to patrons which are derived from business done with or for patrons during the taxable year.” - § 1388(k): Pub. L. 108–357, § 316(a), added subsec. (k). ## § 1402: Definitions - § 1402(a)(16): Pub. L. 108–357 added par. (16). ## § 1441: Withholding of tax on nonresident aliens - § 1441(c)(12): Pub. L. 108–357 added par. (12). ## § 1442: Withholding of tax on foreign corporations - § 1442(a): Pub. L. 108–357, § 411(a)(3)(B), substituted “the reference in section 1441(c)(10)” for “and the reference in section 1441(c)(10)” and inserted before period at end “, and the references in section 1441(c)(12) to sections 871(a) and 871(k) shall be treated as referring to sections 881(a) and 881(e) (except that for purposes of applying subparagraph (A) of section 1441(c)(12), as so modified, clause (ii) of section 881(e)(1)(B) shall not apply to any dividend unless the regulated investment company knows that such dividend is a dividend referred to in such clause)”. - § 1442(c): Pub. L. 108–357, § 420(b), designated existing provisions as par. (1), inserted heading, and added par. (2). ## § 1502: Regulations - § 1502: Pub. L. 108–357 inserted at end “In carrying out the preceding sentence, the Secretary may prescribe rules that are different from the provisions of chapter 1 that would apply if such corporations filed separate returns.” ## § 1563: Definitions and special rules - § 1563(a)(2): Pub. L. 108–357, § 900(a), substituted “possessing” for “possessing—”, struck out “(B)” before “more than 50 percent of the total combined voting power”, and struck out subpar. (A) which read as follows: “at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of the stock of each corporation, and”. - § 1563(f)(5): Pub. L. 108–357, § 900(b), added par. (5). ## § 2105: Property without the United States - § 2105(d): Pub. L. 108–357 added subsec. (d). ## § 2107: Expatriation to avoid tax - § 2107(a): Pub. L. 108–357 reenacted heading without change and amended text of subsec. (a) generally, substituting provisions relating to imposition of tax on the transfer of the taxable estate of every decedent nonresident not a citizen of the United States if the date of death occurs during a taxable year with respect to which the decedent is subject to tax under section 877(b), for provisions relating to imposition of tax on the transfer of the taxable estate of every decedent nonresident not a citizen of the United States if, within the 10-year period ending with the date of death, such decedent lost United States citizenship, unless such loss did not have for one of its principal purposes the avoidance of taxes, and provisions describing individuals to be treated as having a principal purpose to avoid taxes. ## § 2501: Imposition of tax - § 2501(a)(3), § 2501(a)(4), § 2501(a)(5): Pub. L. 108–357 added pars. (3) and (5), redesignated former par. (5) as (4), and struck out former pars. (3) and (4) which related to exception of certain individuals from taxable transfers and burden of proof. ## § 3121: Definitions - § 3121(a)(20): Pub. L. 108–357, § 320(b)(1), inserted “108(f)(4),” after “74(c),”. - § 3121(a)(22): Pub. L. 108–357, § 251(a)(1)(A), added par. (22). - § 3121(v)(2)(A): Pub. L. 108–357, § 802(c)(1), inserted “or to any specified stock compensation (as defined in section 4985) on which tax is imposed by section 4985” before period at end. ## § 3231: Definitions - § 3231(e)(5): Pub. L. 108–357, § 320(b)(2), inserted “108(f)(4),” after “74(c),”. - § 3231(e)(12): Pub. L. 108–357, § 251(a)(2), added par. (12). ## § 3306: Definitions - § 3306(b)(16): Pub. L. 108–357, § 320(b)(3), inserted “108(f)(4),” after “74(c),”. - § 3306(b)(19): Pub. L. 108–357, § 251(a)(3), added par. (19). ## § 3401: Definitions - § 3401(a): Pub. L. 108–357, § 885(b)(2), inserted concluding provisions. - § 3401(a)(19): Pub. L. 108–357, § 320(b)(4), inserted “108(f)(4),” after “74(c),”. ## § 4041: Imposition of tax - § 4041(a)(1): Pub. L. 108–357, § 853(a)(6)(B), inserted “and kerosene” after “diesel fuel” in heading. - § 4041(a)(1)(B): Pub. L. 108–357, § 853(a)(6)(A), inserted at end “This subparagraph shall not apply to aviation-grade kerosene.” - § 4041(a)(1)(C)(ii)(I), § 4041(a)(1)(C)(ii)(II), § 4041(a)(1)(C)(ii)(III): Pub. L. 108–357, § 241(a)(1), added subcls. (I) to (III) and struck out former subcls. (I) to (III) which read as follows: - § 4041(b)(2)(B): Pub. L. 108–357, § 301(c)(5), substituted “coal (including peat)” for “a substance other than petroleum or natural gas”. - § 4041(c): Pub. L. 108–357, § 853(d)(2)(A), amended heading and text of subsec. (c) generally, substituting provisions relating to imposition of tax upon aviation-grade kerosene and providing exemption for fuel previously taxed under section 4081, for provisions relating to imposition of tax on nongasoline fuels where no tax had been imposed under section 4091. - § 4041(d)(2): Pub. L. 108–357, § 853(d)(2)(B), substituted “section 4081” for “section 4091” in concluding provisions. - § 4041(d)(3), § 4041(d)(4): Pub. L. 108–357, § 241(a)(2)(A), added par. (3) and redesignated former par. (3) as (4). - § 4041(e): Pub. L. 108–357, § 853(d)(2)(C), struck out heading and text of subsec. (e). Text read as follows: “If a liquid on which tax was imposed on the sale thereof is taxable at a higher rate under subsection (c)(1) of this section on the use thereof, there is hereby imposed a tax equal to the difference between the tax so imposed and the tax payable at such higher rate.” - § 4041(i): Pub. L. 108–357, § 853(d)(2)(D), struck out heading and text of subsec. (i). Text read as follows: “If any liquid is sold by any person for use as a fuel in an aircraft, it shall be presumed for purposes of this section that a tax imposed by this section applies to the sale of such liquid unless the purchaser is registered in such manner (and furnished such information in respect of the use of the liquid) as the Secretary shall by regulations provide.” - § 4041(k): Pub. L. 108–357, § 301(c)(6), struck out subsec. (k) which related to rates of tax in the case of the sale or use of any fuels containing alcohol. - § 4041(m)(1): Pub. L. 108–357, § 853(d)(2)(E), reenacted heading without change and amended text of par. (1) generally, substituting provisions relating to rates of tax after Sept. 30, 1997, and before Oct. 1, 2005, and rates of tax after Sept. 30, 2005, for provisions relating to rates of tax after Sept. 30, 1997, and before Oct. 1, 2005, rates of tax after Sept. 30, 2005, and rate of tax imposed by subsec. (c)(1). ## § 4042: Tax on fuel used in commercial transportation on inland waterways - § 4042(b)(2): Pub. L. 108–357 amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “The deficit reduction rate is 4.3 cents per gallon.” ## § 4053: Exemptions - § 4053(8): Pub. L. 108–357 added par. (8). ## § 4071: Imposition of tax - § 4071(a): Pub. L. 108–357, § 869(a), reenacted heading without change and amended text of subsec. (a) generally. Prior to amendment, subsec. (a) imposed tax and set forth table of rates providing for no tax if the tire weighed not more than 40 lbs., tax of 15 cents per lb. in excess of 40 lbs. if the tire weighed more than 40 lbs. but not more than 70 lbs., tax of $4.50 plus 30 cents per lb. in excess of 70 lbs. if the tire weighed more than 70 lbs. but not more than 90 lbs., and tax of $10.50 plus 50 cents per lb. in excess of 90 lbs. if the tire weighed more than 90 lbs. - § 4071(c): Pub. L. 108–357, § 869(d)(1), redesignated subsec. (e) as (c) and struck out heading and text of former subsec. (c). Text read as follows: “For purposes of this section, weight shall be based on total weight exclusive of metal rims or rim bases. Total weight of the articles shall be determined under regulations prescribed by the Secretary.” - § 4071: Pub. L. 108–357, § 869(d)(1), redesignated subsec. (e) as (c). ## § 4072: Definitions - § 4072(a): Pub. L. 108–357, § 869(b), added subsec. (a) and redesignated former subsec. (a) as (b). - § 4072(b): Pub. L. 108–357, § 869(b), redesignated subsec. (a) as (b). Former subsec. (b) redesignated (c). - § 4072(b): Pub. L. 108–357, § 851(c)(1), which directed amendment of par. (2) by inserting at end “Such term shall not include tires of a type used exclusively on vehicles described in section 4053(8).”, was executed by amending subsec. (b) by inserting that language after par. (2) to reflect the probable intent of Congress. - § 4072(c), § 4072(d): Pub. L. 108–357, § 869(b), redesignated subsecs. (b) and (c) as (c) and (d), respectively. Former subsec. (d) redesignated (e). - § 4072(c), § 4072(d): Pub. L. 108–357, § 869(b), added subsecs. (c) and (d). - § 4072(e): Pub. L. 108–357, § 869(b), redesignated subsec. (d) as (e). ## § 4073: Exemptions - § 4073: Pub. L. 108–357 amended section catchline and text generally. Prior to amendment, text read as follows: “The tax imposed by section 4071 shall not apply to tires of extruded tiring with an internal wire fastening agent.” ## § 4081: Imposition of tax - § 4081(a)(1)(B): Pub. L. 108–357, § 860(a), inserted “by pipeline or vessel” after “transferred in bulk” and “, the operator of such pipeline or vessel,” after “the taxable fuel”. - § 4081(a)(2)(A): Pub. L. 108–357, § 853(a)(1), added cl. (iv). - § 4081(a)(2)(C): Pub. L. 108–357, § 853(a)(2), added subpar. (C). - § 4081(a)(3): Pub. L. 108–357, § 853(a)(3)(A), added par. (3). - § 4081(a)(4): Pub. L. 108–357, § 853(a)(4), added par. (4). - § 4081(c): Pub. L. 108–357, § 301(c)(7), struck out subsec. (c) which related to taxation of taxable fuels mixed with alcohol. ## § 4082: Exemptions for diesel fuel and kerosene - § 4082(a)(2): Pub. L. 108–357, § 854(a), inserted “by mechanical injection” after “indelibly dyed”. - § 4082(b): Pub. L. 108–357, § 853(a)(5)(B)(i), inserted at end “The term ‘nontaxable use’ does not include the use of aviation-grade kerosene in an aircraft.” - § 4082(b): Pub. L. 108–357, § 851(d)(2), which directed amendment of subsec. (b) by inserting “and such term shall not include any use described in section 6421(e)(2)(C)” before period at end, was executed by making the insertion after amendment by Pub. L. 108–357, § 853(a)(5)(B)(i), to reflect the probable intent of Congress. See above. - § 4082(b)(3): Pub. L. 108–357, § 857(a), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “any use described in section 6427(b)(1) (after the application of section 6427(b)(3)).” - § 4082(d): Pub. L. 108–357, § 853(a)(5)(B)(ii), redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out heading and text of former par. (1). Text read as follows: “Subsection (a)(2) shall not apply to aviation-grade kerosene (as determined under regulations prescribed by the Secretary) which the Secretary determines is destined for use as a fuel in an aircraft.” - § 4082(e): Pub. L. 108–357, § 853(a)(5)(A), added subsec. (e). Former subsec. (e) redesignated (f). - § 4082(f): Pub. L. 108–357, § 853(a)(5)(A), redesignated subsec. (e) as (f). Former subsec. (f) redesignated (g). - § 4082(g): Pub. L. 108–357, § 853(a)(5)(A), redesignated subsec. (f) as (g). - § 4082(g): Pub. L. 108–357, § 241(a)(2)(B), which directed substitution of “subsections (a)(1) and (d)(3) of section 4041” for “section 4041(a)(1)” in subsec. (f), was executed by making the substitution in subsec. (g) to reflect the probable intent of Congress and the amendment by Pub. L. 108–357, § 853(a)(5)(A). See Amendment note above and Effective Date of 2004 Amendment notes below. ## § 4083: Definitions; special rule; administrative authority - § 4083(a)(2): Pub. L. 108–357, § 301(c)(8), reenacted heading without change and amended text of par. (2) generally. Prior to amendment, par. (2) defined the term “gasoline”, to the extent prescribed in regulations, as including gasoline blend stocks and products commonly used as additives in gasoline, and defined the term “gasoline blend stock” as meaning any petroleum product component of gasoline. - § 4083(a)(3): Pub. L. 108–357, § 870(a), reenacted heading without change and amended text of par. (3) generally. Prior to amendment, par. (3) defined the term “diesel fuel” as meaning any liquid (other than gasoline) which is suitable for use as a fuel in a diesel-powered highway vehicle or a diesel-powered train. - § 4083(b), § 4083(c): Pub. L. 108–357, § 853(b), added subsec. (b) and redesignated former subsec. (b) as (c). Former subsec. (c) redesignated (d). - § 4083(d): Pub. L. 108–357, § 853(b), redesignated subsec. (c) as (d). - § 4083(d)(1)(A)(iii): Pub. L. 108–357, § 858(a), added cl. (iii). - § 4083(d)(3): Pub. L. 108–357, § 859(b)(1), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B). ## § 4101: Registration and bond - § 4101(a): Pub. L. 108–357, § 861(a), designated existing provisions as par. (1), inserted heading, and added par. (2). - § 4101(a): Pub. L. 108–357, § 853(d)(2)(F), substituted “or 4081” for “, 4081, or 4091”. - § 4101(a): Pub. L. 108–357, § 301(b), amended par. (1), as amended by Pub. L. 108–357, § 861, by inserting “and every person producing or importing biodiesel (as defined in section 40A(d)(1)) or alcohol (as defined in section 6426(b)(4)(A))” before “shall register with the Secretary”. - § 4101(a)(2), § 4101(a)(3): Pub. L. 108–357, § 862(a), added par. (2) and redesignated former par. (2) as (3). - § 4101(d): Pub. L. 108–357, § 864(a), inserted concluding provisions. ## § 4103: Certain additional persons liable for tax where willful failure to pay - § 4103: Pub. L. 108–357 substituted “or 4081” for “, 4081, or 4091” in introductory provisions. ## § 4104: Information reporting for persons claiming certain tax benefits - Enacted 26 U.S.C. § 4104. ## § 4105: Two-party exchanges - Enacted 26 U.S.C. § 4105. ## § 4132: Definitions and special rules - § 4132(a)(1)(I), § 4132(a)(1)(J), § 4132(a)(1)(K), § 4132(a)(1)(L), § 4132(a)(1)(M): Pub. L. 108–357, § 889(a), added subpar. (I) and redesignated former subpars. (I) to (L) as (J) to (M), respectively. - § 4132(a)(1)(N): Pub. L. 108–357, § 890(a), added subpar. (N). ## § 4161: Imposition of tax - § 4161(a)(3), § 4161(a)(4): Pub. L. 108–357, § 333(a), added par. (3) and redesignated former par. (3) as (4). - § 4161(b)(1): Pub. L. 108–357, § 332(a), reenacted heading without change and amended text of par. (1) generally, substituting provisions imposing a tax on the sale of any bow which has a peak draw weight of 30 pounds or more, any part or accessory, and any quiver or broadhead suitable for use with an arrow described in par. (2), for provisions imposing a tax on the sale of any bow which has a draw weight of 10 pounds or more, any part of accessory, and any quiver suitable for use with arrows described in par. (2). - § 4161(b)(2): Pub. L. 108–357, § 332(c), substituted “Arrow components” for “Arrows” in heading and inserted “(other than broadheads)” after “point” in introductory provisions. - § 4161(b)(3), § 4161(b): Pub. L. 108–357, § 332(b), which directed the amendment of subsec. (b) by adding par. (3), relating to arrows, and redesignating former par. (3) as (4), was repealed by Pub. L. 108–493, § 1(a). See Construction of 2004 Amendment note below. ## § 4162: Definitions; treatment of certain resales - § 4162(a)(8), § 4162(a)(9), § 4162(a): Pub. L. 108–357, § 334(a), inserted “and” at end of par. (8), substituted a period for “, and” at end of par. (9), and struck out par. (10) which read as follows: “sonar devices suitable for finding fish.” - § 4162(b), § 4162: Pub. L. 108–357, § 334(b), redesignated subsec. (c) as (b) and struck out heading and text of former subsec. (b). Text read as follows: “For purposes of this part, the term ‘sonar device suitable for finding fish’ shall not include any sonar device which is— ## § 4221: Certain tax-free sales - § 4221(a): Pub. L. 108–357 substituted “or 4081” for “, 4081, or 4091” in introductory provisions. ## § 4481: Imposition of tax - § 4481(c)(2): Pub. L. 108–357, § 867(a)(2), substituted “sold, destroyed, or stolen” for “destroyed or stolen” in heading. - § 4481(c)(2)(A): Pub. L. 108–357, § 867(a)(1), substituted “sold, destroyed, or stolen” for “destroyed or stolen” in two places. - § 4481(e), § 4481(f): Pub. L. 108–357, § 867(c), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 4483: Exemptions - § 4483(f): Pub. L. 108–357, § 867(d), struck out heading and text of subsec. (f). Text read as follows: “If the base for registration purposes of any highway motor vehicle is in a contiguous foreign country for any taxable period, the tax imposed by section 4481 for such period shall be 75 percent of the tax which would (but for this subsection) be imposed by section 4481 for such period.” - § 4483(g), § 4483(h): Pub. L. 108–357, § 851(b)(1), added subsec. (g) and redesignated former subsec. (g) as (h). ## § 4947: Application of taxes to certain nonexempt trusts - § 4947(a)(1), § 4947(a)(2), § 4947(b)(3): Pub. L. 108–357 struck out “556(b)(2),” after “545(b)(2),” wherever appearing. ## § 4948: Application of taxes and denial of exemption with respect to certain foreign organizations - § 4948(c)(4): Pub. L. 108–357 struck out “556(b)(2),” after “545(b)(2),” in introductory provisions. ## § 4975: Tax on prohibited transactions - § 4975(d)(16): Pub. L. 108–357, § 233(c), added par. (16). - § 4975(f)(7): Pub. L. 108–357, § 240(a), added par. (7). ## § 4985: Stock compensation of insiders in expatriated corporations - Enacted 26 U.S.C. § 4985. ## § 6031: Return of partnership income - § 6031(f): Pub. L. 108–357 added subsec. (f). ## § 6039G: Information on individuals losing United States citizenship - § 6039G(a): Pub. L. 108–357, § 804(e)(1), reenacted heading without change and amended text of subsec. (a) generally. Prior to amendment, text read as follows: “Notwithstanding any other provision of law, any individual who loses United States citizenship (within the meaning of section 877(a)) shall provide a statement which includes the information described in subsection (b). Such statement shall be— - § 6039G(b): Pub. L. 108–357, § 804(e)(2), reenacted heading, introductory provisions, and pars. (1) to (4) without change, in par. (5), substituted “information detailing the income, assets, and liabilities of such individual,” for “in the case of an individual having a net worth of at least the dollar amount applicable under section 877(a)(2)(B), information detailing the assets and liabilities of such individual, and”, added par. (6), and redesignated former par. (6) as (7). - § 6039G(c): Pub. L. 108–357, § 804(e)(4), redesignated subsec. (d) as (c) and struck out heading and text of former subsec. (c). Text read as follows: “For purposes of this section, the acts referred to in this subsection are— - § 6039G(d): Pub. L. 108–357, § 804(e)(4), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c). - § 6039G(d): Pub. L. 108–357, § 804(e)(3), reenacted heading without change and amended text of subsec. (d) generally. Prior to amendment, text read as follows: “Any individual failing to provide a statement required under subsection (a) shall be subject to a penalty for each year (of the 10-year period beginning on the date of loss of United States citizenship) during any portion of which such failure continues in an amount equal to the greater of— - § 6039G: Pub. L. 108–357, § 804(e)(4), redesignated subsec. (e) as (d). - § 6039G: Pub. L. 108–357, § 804(e)(4), struck out heading and text of subsec. (f). Text read as follows: “In lieu of applying the last sentence of subsection (a), any individual who is required to provide a statement under this section by reason of section 877(e)(1) shall provide such statement with the return of tax imposed by chapter 1 for the taxable year during which the event described in such section occurs.” - § 6039G: Pub. L. 108–357, § 804(e)(4), struck out heading and text of subsec. (g). Text read as follows: “The Secretary may by regulations exempt any class of individuals from the requirements of this section if he determines that applying this section to such individuals is not necessary to carry out the purposes of this section.” ## § 6041: Information at source - § 6041(g): Pub. L. 108–357 added subsec. (g). ## § 6043A: Returns relating to taxable mergers and acquisitions - Enacted 26 U.S.C. § 6043A. ## § 6050L: Returns relating to certain donated property - § 6050L: Pub. L. 108–357 amended section catchline and text generally, substituting provisions consisting of subsecs. (a) to (c) for provisions which, in subsec. (a) required return to be made by donee and set forth contents requirements, in subsec. (b) defined “charitable deduction property” for purposes of this section, in subsec. (c) required copy of return to be furnished to donor by donee, and in subsec. (d) defined “publicly traded securities”. ## § 6051: Receipts for employees - § 6051(a): Pub. L. 108–357, § 885(b)(1)(B), inserted at end of concluding provisions “In the case of the amounts required to be shown by paragraph (13), the Secretary may (by regulation) establish a minimum amount of deferrals below which paragraph (13) does not apply.” - § 6051(a)(13): Pub. L. 108–357, § 885(b)(1)(A), added par. (13). ## § 6103: Confidentiality and disclosure of returns and return information - § 6103(e)(1)(D)(iv), § 6103(e)(1)(D)(v), § 6103(e)(1)(D): Pub. L. 108–357, § 413(c)(27), redesignated cls. (v) and (vi) as (iv) and (v), respectively, and struck out former cl. (iv) which read as follows: “if the corporation was a foreign personal holding company, as defined by section 552, any person who was a shareholder during any part of a period covered by such return if with respect to that period, or any part thereof, such shareholder was required under section 551 to include in his gross income undistributed foreign personal holding company income of such company,”. ## § 6111: Disclosure of reportable transactions - § 6111: Pub. L. 108–357 amended section catchline and text generally, substituting provisions relating to disclosure of reportable transactions for provisions relating to registration of tax shelters and inclusion of identification numbers on returns. ## § 6112: Material advisors of reportable transactions must keep lists of advisees, etc. - § 6112: Pub. L. 108–357, § 815(b)(2), substituted “Material advisors of reportable transactions must keep lists of advisees, etc.” for “Organizers and sellers of potentially abusive tax shelters must keep lists of investors” in section catchline. - § 6112(a): Pub. L. 108–357, § 815(b)(2), reenacted heading without change and amended text of subsec. (a) generally, substituting provisions requiring each material advisor to maintain a list identifying each person with respect to whom such advisor acted as a material advisor with respect to a reportable transaction and containing such other information as required by regulations, for provisions requiring any person who organized any potentially abusive tax shelter or sold any interest in such a shelter to maintain a list identifying each person who had been sold an interest in such shelter and containing such other information as required by regulations. - § 6112(b): Pub. L. 108–357, § 815(b)(2), (3)(A), redesignated subsec. (c) as (b) and struck out former subsec. (b), which defined “potentially abusive tax shelter” for purposes of this section. - § 6112(b)(1)(A): Pub. L. 108–357, § 815(b)(3)(B), inserted “written” before “request”. - § 6112(b)(2): Pub. L. 108–357, § 815(b)(3)(C), substituted “may prescribe” for “shall prescribe”. - § 6112: Pub. L. 108–357, § 815(b)(3)(A), redesignated subsec. (c) as (b). ## § 6159: Agreements for payment of tax liability in installments - § 6159(a): Pub. L. 108–357, § 843(a)(1), substituted “make payment on” for “satisfy liability for payment of” and inserted “full or partial” after “facilitate”. - § 6159(c): Pub. L. 108–357, § 843(a)(2), inserted “full” before “payment” in introductory provisions. - § 6159(d), § 6159(e), § 6159(f): Pub. L. 108–357, § 843(b), added subsec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively. ## § 6206: Special rules applicable to excessive claims under certain sections - § 6206: Pub. L. 108–357 substituted “or 4081” for “, 4081, or 4091”. ## § 6306: Qualified tax collection contracts - Enacted 26 U.S.C. § 6306. ## § 6331: Levy and distraint - § 6331(h)(3): Pub. L. 108–357 added par. (3). ## § 6404: Abatements - § 6404(g)(1)(A): Pub. L. 108–357, § 903(a), substituted “18-month period” for “1-year period (18-month period in the case of taxable years beginning before January 1, 2004)” in introductory provisions. - § 6404(g)(2)(D): Pub. L. 108–357, § 903(b), added subpar. (D). Former subpar. (D) redesignated (E). - § 6404(g)(2)(E): Pub. L. 108–357, § 903(c), added subpar. (E). Former subpar. (E) redesignated (F). - § 6404(g)(2)(E): Pub. L. 108–357, § 903(b), redesignated subpar. (D) as (E). - § 6404(g)(2)(F): Pub. L. 108–357, § 903(c), redesignated subpar. (E) as (F). - § 6404(g)(3)(A): Pub. L. 108–357, § 903(a), substituted “18-month period” for “1-year period (18-month period in the case of taxable years beginning before January 1, 2004)”. ## § 6416: Certain taxes on sales and services - § 6416(a)(4): Pub. L. 108–357, § 865(a), amended heading and text of par. (4) generally, substituting provisions relating to administration of credits and refunds of gasoline tax by a registered ultimate vendor for provisions relating to administration of credits and refunds of gasoline tax by wholesale distributors. - § 6416(b)(2): Pub. L. 108–357, § 853(d)(2)(G), struck out “4091 or” before “4121” in concluding provisions. - § 6416(b)(3): Pub. L. 108–357, § 853(d)(2)(H), struck out “or 4091” after “4081” in subpars. (A) and (B). - § 6416(d): Pub. L. 108–357, § 853(d)(2)(I), struck out “or to the tax imposed by section 4091 in the case of refunds described in section 4091(d)” before period at end. ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(e)(2)(C): Pub. L. 108–357, § 851(d)(1), added subpar. (C). - § 6421(f)(3)(B): Pub. L. 108–357, § 241(a)(2)(C), amended subpar. (B) generally. Prior to amendment, subpar (B) read as follows: “so much of the rate specified in section 4081(a)(2)(A) as does not exceed— ## § 6426: Credit for alcohol fuel, biodiesel, and alternative fuel mixtures - Enacted 26 U.S.C. § 6426. ## § 6427: Fuels not used for taxable purposes - § 6427(b)(4): Pub. L. 108–357, § 857(b), added par. (4). - § 6427(e): Pub. L. 108–357, § 301(c)(9), added subsec. (e). - § 6427(h): Pub. L. 108–357, § 870(b), amended heading and text of subsec. (h) generally. Prior to amendment, text read as follows: “Except as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083(a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.” - § 6427(i)(2)(C): Pub. L. 108–357, § 851(d)(3), added subpar. (C). - § 6427(i)(3): Pub. L. 108–357, § 301(c)(10)(F), substituted “alcohol fuel and biodiesel mixture” for “alcohol mixture” in heading. - § 6427(i)(3)(A): Pub. L. 108–357, § 301(c)(10)(A)–(C), substituted “a mixture described in section 6426” for “gasoline, diesel fuel, or kerosene used to produce a qualified alcohol mixture (as defined in section 4081(c)(3))” in introductory provisions, substituted “subsection (e)(1)” for “subsection (f)” in two places, and inserted concluding provisions. - § 6427(i)(3)(B): Pub. L. 108–357, § 301(c)(10)(D), (E), substituted “subsection (e)(1)” for “subsection (f)(1)” and “45 days of the date of the filing of such claim (20 days in the case of an electronic claim)” for “20 days of the date of the filing of such claim”. - § 6427(i)(4)(A): Pub. L. 108–357, § 857(c), which directed the insertion of “subsections (b)(4) and” after “filed under”, was executed by making the insertion in concluding provisions, to reflect the probable intent of Congress. - § 6427(i)(4)(A): Pub. L. 108–357, § 853(c)(2), substituted “paragraph (4)(B) or (5) of subsection (l)” for “subsection (l)(5)” in introductory provisions and in cl. (i) and substituted “subsection (l)(5)” for “the preceding sentence” before period at end of concluding provisions. - § 6427(j)(1): Pub. L. 108–357, § 853(d)(2)(J), substituted “and 4081” for “, 4081, and 4091”. - § 6427(l)(1): Pub. L. 108–357, § 853(d)(2)(K)(i), reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “Except as otherwise provided in this subsection and in subsection (k), if— - § 6427(l)(2): Pub. L. 108–357, § 853(c)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “in the case of aviation fuel, any use which is exempt from the tax imposed by section 4041(c)(1) other than by reason of a prior imposition of tax.” - § 6427(l)(3)(B): Pub. L. 108–357, § 241(a)(2)(D), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “so much of the rate specified in section 4081(a)(2)(A) as does not exceed— - § 6427(l)(4): Pub. L. 108–357, § 853(c)(1), amended heading and text of par. (4) generally. Text read as follows: “In the case of fuel used in commercial aviation (as defined in section 4092(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to— - § 6427(l)(5)(B): Pub. L. 108–357, § 853(d)(2)(K)(ii), substituted “Paragraph (1) shall not apply to kerosene (other than aviation-grade kerosene)” for “Paragraph (1)(A) shall not apply to kerosene” in introductory provisions. ## § 6501: Limitations on assessment and collection - § 6501(c)(10): Pub. L. 108–357, § 814(a), added par. (10). - § 6501(e)(1)(B): Pub. L. 108–357, § 413(c)(28), reenacted heading without change and amended text of subpar. (B) generally. Prior to amendment, text read as follows: “If the taxpayer omits from gross income an amount properly includible therein under section 551(b) (relating to the inclusion in the gross income of United States shareholders of their distributive shares of the undistributed foreign personal holding company income), the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed.” ## § 6603: Deposits made to suspend running of interest on potential underpayments, etc. - Enacted 26 U.S.C. § 6603. ## § 6662: Imposition of accuracy-related penalty on underpayments - § 6662: Pub. L. 108–357, § 812(e)(1), inserted “on underpayments” after “penalty” in section catchline. - § 6662(d)(1)(B): Pub. L. 108–357, § 819(a), reenacted heading without change and amended text of subpar. (B) generally. Prior to amendment, text read as follows: “In the case of a corporation other than an S corporation or a personal holding company (as defined in section 542), paragraph (1) shall be applied by substituting ‘$10,000’ for ‘$5,000’.” - § 6662(d)(2)(A): Pub. L. 108–357, § 812(b), inserted concluding provisions. - § 6662(d)(2)(C): Pub. L. 108–357, § 812(d), amended subpar. (C) generally, substituting provisions relating to inapplicability of subpar. (B) to any item attributable to a tax shelter and defining the term “tax shelter” for provisions relating to, in the case of any item of a taxpayer other than a corporation which is attributable to a tax shelter, inapplicability of subpar. (B)(ii) and inapplicability of subpar. (B)(i), unless the taxpayer reasonably believed that the tax treatment of such item by the taxpayer was more likely than not the proper treatment, inapplicability of subpar. (B) to any item of a corporation which is attributable to a tax shelter, and provisions defining the term “tax shelter”. - § 6662(d)(2): Pub. L. 108–357, § 819(b)(2), struck out heading and text of subpar. (D). Text read as follows: “The Secretary shall prescribe (and revise not less frequently than annually) a list of positions— - § 6662(d)(3): Pub. L. 108–357, § 819(b)(1), added par. (3). ## § 6662A: Imposition of accuracy-related penalty on understatements with respect to reportable transactions - Enacted 26 U.S.C. § 6662A. ## § 6664: Definitions and special rules - § 6664(c): Pub. L. 108–357, § 812(c)(2)(B), inserted “for underpayments” after “exception” in heading. - § 6664(c)(1): Pub. L. 108–357, § 812(c)(2)(A), substituted “section 6662 or 6663” for “this part”. - § 6664(d): Pub. L. 108–357, § 812(c)(1), added subsec. (d). ## § 6679: Failure to file returns, etc., with respect to foreign corporations or foreign partnerships - § 6679(a)(1): Pub. L. 108–357, § 413(c)(29)(A), which directed substitution of “6046 and 6046A” for “6035, 6046, and 6046A” was executed by making the substitution for “6035, 6046, or 6046A” to reflect the probable intent of Congress. - § 6679(a): Pub. L. 108–357, § 413(c)(29)(B), struck out heading and text of par. (3). Text read as follows: “In the case of a return required under section 6035, paragraph (1) shall be applied by substituting ‘$1,000’ for ‘$10,000’, and paragraph (2) shall not apply.” ## § 6688: Assessable penalties with respect to information required to be furnished under section 7654 - § 6688: Pub. L. 108–357 inserted “under section 937(c) or” before “by regulations” and substituted “$1,000” for “$100”. ## § 6700: Promoting abusive tax shelters, etc. - § 6700(a): Pub. L. 108–357 inserted at end of concluding provisions “Notwithstanding the first sentence, if an activity with respect to which a penalty imposed under this subsection involves a statement described in paragraph (2)(A), the amount of the penalty shall be equal to 50 percent of the gross income derived (or to be derived) from such activity by the person on which the penalty is imposed.” ## § 6707: Failure to furnish information regarding reportable transactions - § 6707: Pub. L. 108–357 amended section catchline and text generally, substituting provisions relating to penalty for failure to furnish information regarding reportable transactions for provisions relating to penalty for failure to furnish information regarding tax shelters. ## § 6707A: Penalty for failure to include reportable transaction information with return - Enacted 26 U.S.C. § 6707A. ## § 6708: Failure to maintain lists of advisees with respect to reportable transactions - § 6708: Pub. L. 108–357, § 815(b)(5)(A), substituted “advisees with respect to reportable transactions” for “investors in potentially abusive tax shelters” in section catchline. - § 6708(a): Pub. L. 108–357, § 817(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “Any person who fails to meet any requirement imposed by section 6112 shall pay a penalty of $50 for each person with respect to whom there is such a failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection for any calendar year shall not exceed $100,000.” ## § 6715: Dyed fuel sold for use or used in taxable use, etc. - § 6715(a)(2): Pub. L. 108–357, § 856(a), which directed amendment of par. (2) by striking “or”, was executed by striking “or” at the end. - § 6715(a)(3): Pub. L. 108–357, § 856(b), substituted “alters, chemically or otherwise, or attempts to so alter,” for “alters, or attempts to alter,”. - § 6715(a)(3): Pub. L. 108–357, § 856(a), inserted “or” at end. - § 6715(a)(4): Pub. L. 108–357, § 856(a), added par. (4). - § 6715(e): Pub. L. 108–357, § 855(a), added subsec. (e). ## § 6715A: Tampering with or failing to maintain security requirements for mechanical dye injection systems - Enacted 26 U.S.C. § 6715A. ## § 6717: Refusal of entry - Enacted 26 U.S.C. § 6717. ## § 6718: Failure to display tax registration on vessels - Enacted 26 U.S.C. § 6718. - § 6718(a): Pub. L. 108–357, § 862(b), substituted “section 4101(a)(3)” for “section 4101(a)(2)”. ## § 6719: Failure to register or reregister - Enacted 26 U.S.C. § 6719. ## § 6720: Fraudulent acknowledgments with respect to donations of motor vehicles, boats, and airplanes - Enacted 26 U.S.C. § 6720. ## § 6724: Waiver; definitions and special rules - § 6724(d)(1)(B)(ii), § 6724(d)(1)(B)(iii), § 6724(d)(1)(B)(iv), § 6724(d)(1)(B)(v), § 6724(d)(1)(B)(vi), § 6724(d)(1)(B)(vii), § 6724(d)(1)(B)(viii), § 6724(d)(1)(B)(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): Pub. L. 108–357, § 805(b)(1), added cl. (ii) and redesignated former cls. (ii) to (xiv) as (iii) to (xv), respectively. Former cl. (xv) redesignated (xvi). - § 6724(d)(1)(B)(xvi): Pub. L. 108–357, § 853(d)(2)(L), redesignated cl. (xvii) as (xvi) and struck out former cl. (xvi) which read as follows: “subparagraph (A) or (C) of subsection (c)(4) of section 4093 (relating to information reporting with respect to tax on diesel and aviation fuels),”. - § 6724(d)(1)(B)(xvi): Pub. L. 108–357, § 805(b)(1), redesignated cl. (xv) as (xvi). Former cl. (xvi) redesignated (xvii). - § 6724(d)(1)(B)(xvii), § 6724(d)(1)(B)(xviii), § 6724(d)(1)(B)(xix): Pub. L. 108–357, § 853(d)(2)(L), redesignated cls. (xviii) and (xix) as (xvii) and (xviii), respectively. Former cl. (xvii) redesignated (xvi). - § 6724(d)(1)(B)(xvii), § 6724(d)(1)(B)(xviii), § 6724(d)(1)(B)(xix): Pub. L. 108–357, § 805(b)(1), redesignated cls. (xvi) to (xviii) as (xvii) to (xix), respectively. - § 6724(d)(2)(F), § 6724(d)(2)(G), § 6724(d)(2)(H), § 6724(d)(2)(I), § 6724(d)(2)(J), § 6724(d)(2)(K), § 6724(d)(2)(L), § 6724(d)(2)(M), § 6724(d)(2)(N), § 6724(d)(2)(O), § 6724(d)(2)(P), § 6724(d)(2)(Q), § 6724(d)(2)(R), § 6724(d)(2)(S), § 6724(d)(2)(T), § 6724(d)(2)(U), § 6724(d)(2)(V), § 6724(d)(2)(W): Pub. L. 108–357, § 805(b)(2), added subpar. (F) and redesignated former subpars. (F) to (V) as (G) to (W), respectively. Former subpar. (W) redesignated (X). - § 6724(d)(2)(X): Pub. L. 108–357, § 853(d)(2)(M), redesignated subpar. (Y) as (X) and struck out former subpar. (X) which read as follows: “section 4093(c)(4)(B) (relating to certain purchasers of diesel and aviation fuels),”. - § 6724(d)(2)(X): Pub. L. 108–357, § 805(b)(2), redesignated subpar. (W) as (X). Former subpar. (X) redesignated (Y). - § 6724(d)(2)(Y), § 6724(d)(2)(CC): Pub. L. 108–357, § 853(d)(2)(M), redesignated subpars. (Z) to (CC) as (Y) to (BB), respectively. Former subpar. (Y) redesignated (X). - § 6724(d)(2)(Y), § 6724(d)(2)(CC): Pub. L. 108–357, § 805(b)(2), redesignated subpars. (X) to (BB) as (Y) to (CC), respectively. ## § 6725: Failure to report information under section 4101 - Enacted 26 U.S.C. § 6725. ## § 7232: Failure to register or reregister under section 4101, false representations of registration status, etc. - § 7232: Pub. L. 108–357 substituted “$10,000” for “$5,000”. ## § 7272: Penalty for failure to register or reregister - § 7272(a): Pub. L. 108–357 inserted “($10,000 in the case of a failure to register under section 4101)” after “$50”. ## § 7408: Actions to enjoin specified conduct related to tax shelters and reportable transactions - § 7408: Pub. L. 108–357, § 820(b)(1), amended section catchline generally, substituting “Actions to enjoin specified conduct related to tax shelters and reportable transactions” for “Action to enjoin promoters of abusive tax shelters, etc.” - § 7408(a), § 7408(b), § 7408(c), § 7408(d): Pub. L. 108–357, § 820(a), added subsecs. (a) to (c), redesignated former subsec. (c) as (d), and struck out former subsecs. (a) and (b), which authorized a civil action to enjoin any person from further engaging in conduct subject to penalty under section 6700 or 6701 of this title and authorized the court, if it found that the person had engaged in such conduct and that injunctive relief was appropriate, to enjoin such person from engaging in such conduct or in any other activity subject to penalty under section 6700 or 6701. ## § 7428: Declaratory judgments relating to status and classification of organizations under section 501(c)(3), etc. - § 7428(a)(1)(D): Pub. L. 108–357 added subpar. (D). ## § 7433A: Civil damages for certain unauthorized collection actions by persons performing services under qualified tax collection contracts - Enacted 26 U.S.C. § 7433A. ## § 7525: Confidentiality privileges relating to taxpayer communications - § 7525(b): Pub. L. 108–357 amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “The privilege under subsection (a) shall not apply to any written communication between a federally authorized tax practitioner and a director, shareholder, officer, or employee, agent, or representative of a corporation in connection with the promotion of the direct or indirect participation of such corporation in any tax shelter (as defined in section 6662(d)(2)(C)(iii)).” ## § 7528: Internal Revenue Service user fees - § 7528: Pub. L. 108–357 substituted “September 30, 2014” for “December 31, 2004”. ## § 7701: Definitions - § 7701(a)(19)(C)(xi): Pub. L. 108–357, § 835(b)(10), struck out “and any regular interest in a FASIT,” after “residual interest in a REMIC,” and struck out “or FASIT” after “entire interest in the REMIC” and after “such REMIC” in two places. - § 7701(a)(48): Pub. L. 108–357, § 852(a), added par. (48). - § 7701(i)(2)(A): Pub. L. 108–357, § 835(b)(11), struck out “or a FASIT” after “other than a REMIC” in introductory provisions. - § 7701(n), § 7701(o): Pub. L. 108–357, § 804(b), added subsec. (n) and redesignated former subsec. (n) as (o). ## § 7704: Certain publicly traded partnerships treated as corporations - § 7704(d)(4): Pub. L. 108–357 substituted “section 851(b)(2)(A)” for “section 851(b)(2)”. ## § 7809: Deposit of collections - § 7809(a): Pub. L. 108–357 inserted “6306,” before “7651”. ## § 7811: Taxpayer Assistance Orders - § 7811(g): Pub. L. 108–357 added subsec. (g). ## § 7874: Rules relating to expatriated entities and their foreign parents - Enacted 26 U.S.C. § 7874. ## § 9502: Airport and Airway Trust Fund - § 9502(b): Pub. L. 108–357, § 853(d)(2)(O), amended concluding provisions generally. Prior to amendment, concluding provisions read as follows: “There shall not be taken into account under paragraph (1) so much of the taxes imposed by sections 4081 and 4091 as are determined at the rates specified in section 4081(a)(2)(B) or 4091(b)(2).” - § 9502(b)(1)(B), § 9502(b)(1)(C), § 9502(b)(1)(D): Pub. L. 108–357, § 853(d)(2)(N), inserted “and” at end of subpar. (B), added subpar. (C), and struck out former subpars. (C) and (D) which read as follows: ## § 9503: Highway Trust Fund - § 9503(b): Pub. L. 108–357, § 868(b)(1), inserted “and penalties” after “taxes” in heading. - § 9503(b)(1): Pub. L. 108–357, § 868(b)(2), substituted “Certain taxes” for “In general” in heading. - § 9503(b)(1): Pub. L. 108–357, § 301(c)(11), inserted concluding provisions. - § 9503(b)(4)(C): Pub. L. 108–357, § 301(c)(12)(A), inserted “or” at end. - § 9503(b)(4)(D)(iii): Pub. L. 108–357, § 301(c)(12)(B), substituted a period for comma at end. - § 9503(b)(4): Pub. L. 108–357, § 301(c)(12)(C), struck out subpars. (E) and (F) which read as follows: - § 9503(b)(5): Pub. L. 108–357, § 868(a), added par. (5). Former par. (5) redesignated (6). - § 9503(b)(6): Pub. L. 108–357, § 868(a), redesignated par. (5) as (6). - § 9503(c)(2): Pub. L. 108–357, § 301(c)(13), inserted at end of concluding provisions “Clauses (i)(III) and (ii) shall not apply to claims under section 6427(e).” ## § 9508: Leaking Underground Storage Tank Trust Fund - § 9508(b)(3), § 9508(b)(4), § 9508(b): Pub. L. 108–357, § 853(d)(2)(P), redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) which read as follows: “taxes received in the Treasury under section 4091 (relating to tax on aviation fuel) to the extent attributable to the Leaking Underground Storage Tank Trust Fund financing rate under such section,”. - § 9508(c)(2): Pub. L. 108–357, § 853(d)(2)(Q), substituted “section 4081” for “sections 4081 and 4091” in concluding provisions.