Pub. L. 88-272 Feb. 26, 1964

78 Stat. 19 · Changed 109 sections of the Code

Bill H.R. 8363

§ 1 Tax imposed

  • § 1 Pub. L. 88–272 amended section generally by splitting the former first bracket which started at $2,000 into four new…

§ 2 Definitions and special rules

  • (a) Pub. L. 88–272 inserted reference to section 141.

§ 3 Tax tables for individuals

  • § 3 Pub. L. 88–272 substituted optional tax tables covering five categories for taxable years beginning on or after Jan. 1…

§ 5 Cross references relating to tax on individuals

  • (b) Pub. L. 88–272 redesignated pars. (2), (3), (4), (7) and (8) as pars. (1) to (5), respectively, substituted “where an…

§ 11 Tax imposed

  • (b) Pub. L. 88–272 applied the 30 percent tax to years beginning before Jan. 1, 1964 instead of July 1, 1964 in par. (1)…
  • (c) Pub. L. 88–272 increased the percentage from 22 to 28 for taxable years beginning after Dec. 31, 1963, and before Jan.…
  • (d) § 11 Pub. L. 88–272 added subsec. (d) and redesignated former subsec. (d) as (e).

§ 12 Cross references relating to tax on corporations

  • § 12 Pub. L. 88–272 struck out par. (8) which referred to section 1503 for additional tax for corporations filing…

§ 15 Effect of changes

  • (d) Pub. L. 88–272 amended subsection generally by substituting provisions relating to changes made by the Revenue Act of…

§ 22 Credit for the elderly and the permanently and totally disabled

  • (a) Pub. L. 88–272, §§ 113(a), 201(d)(3), substituted “an amount equal to 17 percent, in the case of a taxable year…
  • § 22 Pub. L. 88–272, § 202(a), added subsec. (i) and redesignated former subsec. (i) as (j).

§ 46 Amount of credit

  • § 46 Pub. L. 88–272 struck out subpar. (B) relating to section 34, and redesignated subpars. (C) and (D) as (B) and (C)…

§ 48 Energy credit

  • (a)(1) Pub. L. 88–272, § 203(c)(2), added subpar. (C).
  • (d) Pub. L. 88–272, § 203(a)(3)(A), (b), substituted “except as provided in paragraph (2)” for “if such property was…
  • § 48 Pub. L. 88–272, § 203(a)(1), repealed subsec. (g) which required that the basis of section 38 property be reduced by 7…

§ 62 Adjusted gross income defined

  • § 62 Pub. L. 88–272 added par. (8).

§ 72 Annuities; certain proceeds of endowment and life insurance contracts

  • (e)(3) Pub. L. 88–272 struck out par. (3) which provided for a limit on the tax attributable to the receipt of a lump sum.

§ 79 Group-term life insurance purchased for employees

§ 105 Amounts received under accident and health plans

  • (d) Pub. L. 88–272 substituted provisions stating that “The preceding sentence shall not apply to amounts attributable to…

§ 121 Exclusion of gain from sale of principal residence

§ 140 Cross references to other Acts

  • § 140 Pub. L. 88–272 renumbered section 121 of this title as this section.

§ 163 Interest

  • (b)(1) Pub. L. 88–272 included the purchase of educational services, and defined “educational services”.

§ 164 Taxes

  • (a) Pub. L. 88–272, § 207(a), limited the subsection to State, local and foreign real property, income, war profits, excess…
  • (b) Pub. L. 88–272, § 207(a), added subsec. (b). Former subsec. (b), which denied the deduction for certain Federal income…
  • (c) Pub. L. 88–272, § 207(a), substituted provisions denying the deduction for taxes assessed against local benefits which…
  • (f) Pub. L. 88–272, § 207(b)(1), inserted “State” before “real property taxes”.
  • (g) Pub. L. 88–272, § 207(b)(2), designated existing provisions as par. (1), substituted “1451” for “1451(f)” and added…

§ 165 Losses

  • (c)(3) Pub. L. 88–272, § 208(a), inserted requirement that losses must exceed $100 to be deductible.
  • (i) Pub. L. 88–272, § 238, added subsec. (i). Former subsec. (i) redesignated (j).
  • (j) Pub. L. 88–272, § 238, redesignated former subsec. (i) as (j).

§ 170 Charitable, etc., contributions and gifts

  • (b)(1)(A)(v) (b)(1)(A)(vi) (b)(2) (b) Pub. L. 88–272, § 209 (a), (c)(1), (d)(1), added cls. (v) and (vi) in par. (1)(A), and par. (5), and in par. (2)…
  • (e) Pub. L. 88–272, § 231(b)(1), substituted “certain property” for “section 1245 property” in heading, and inserted…
  • (f) Pub. L. 88–272, § 209(e), added subsec. (f). Former subsec. (f) redesignated (h).
  • (g) Pub. L. 88–272, § 209(b), added subsec. (g). Former subsec. (g) redesignated (i).
  • (h) (i) Pub. L. 88–272, § 209(e), redesignated former subsecs. (f) and (g) as (h) and (i), respectively.

§ 172 Net operating loss deduction

  • (b) Pub. L. 88–272, § 210(a)(1)–(4), (b), inserted subpar. (D) in par. (1), references to such subpar. (D) in par.…
  • § 172 Pub. L. 88–272, § 210(a)(5), added subsec. (k) and redesignated former subsec. (k) as (l).

§ 213 Medical, dental, etc., expenses

  • (b) Pub. L. 88–272 excluded persons attaining age 65 before the close of the taxable year from the limitation, whether they…

§ 217 Moving expenses

§ 226 Cross reference

  • § 226 Pub. L. 88–272 renumbered section 217 of this title as this section.

§ 243 Dividends received by corporations

  • (a) Pub. L. 88–272 substituted provisions permitting a deduction for 85 percent of dividends received except that it shall…
  • (b) Pub. L. 88–272 added subsec. (b) and omitted a prior subsec. (b) which allowed a 100 percent deduction of dividends…
  • (c) Pub. L. 88–272 substituted “subsection (a)” for “subsections (a) and (b)” and added par. (4).
  • (d) Pub. L. 88–272 substituted “subsection (a)” for “subsections (a) and (b)”.

§ 246 Rules applying to deductions for dividends received

  • (b) Pub. L. 88–272 substituted “243(a)(1), 244(a)” for “243(a), 244” wherever appearing.

§ 264 Certain amounts paid in connection with insurance contracts

  • (a) Pub. L. 88–272 added par. (3) and sentence providing that par. (3) shall apply only to contracts purchased after August…
  • (c) Pub. L. 88–272 added subsec. (c).

§ 265 Expenses and interest relating to tax-exempt income

  • § 265 Pub. L. 88–272 provided that interest on face-amount certificates issued by a face-amount certificate company, and…

§ 269 Acquisitions made to evade or avoid income tax

  • (a) Pub. L. 88–272 substituted “the Secretary or his delegate may disallow such deduction, credit, or other allowance” for…

§ 272 Disposal of coal or domestic iron ore

  • § 272 Pub. L. 88–272 inserted “or domestic iron ore” in section catchline, and “or iron ore” wherever appearing in text.

§ 274 Disallowance of certain entertainment, etc., expenses

  • (c) Pub. L. 88–272 limited subsec. (c) to individuals traveling outside the United States.

§ 275 Certain taxes

§ 301 Distributions of property

  • (b) Pub. L. 88–272 inserted reference to section 1250(a).
  • (d) Pub. L. 88–272 inserted reference to section 1250(a).

§ 312 Effect on earnings and profits

  • (c) Pub. L. 88–272 inserted reference to section 1250(a).

§ 316 Dividend defined

  • (b)(2) Pub. L. 88–272 inserted definition of “distribution of property”.

§ 331 Gain or loss to shareholder in corporate liquidations

  • (b) Pub. L. 88–272 inserted “(other than a distribution referred to in paragraph (2)(B) of section 316(b))”.

§ 368 Definitions relating to corporate reorganizations

  • (a) Pub. L. 88–272, § 218(a), (b)(1), inserted “(or in exchange solely for all or a part of the voting stock of a…
  • (b) Pub. L. 88–272, § 218(b)(2), inserted references to par. (1)(B) wherever appearing.

§ 381 Carryovers in certain corporate acquisitions

  • (c)(15) Pub. L. 88–272, § 225(i)(3), substituted “subsections (b)(7) and (c) of section 545, relating to deductions with…
  • (c)(19) Pub. L. 88–272, § 209(d)(2), permitted deductions for contributions made in the taxable year and in 4 prior taxable…

§ 401 Qualified pension, profit-sharing, and stock bonus plans

  • (i) (j) Pub. L. 88–272 added subsec. (i) and redesignated former subsec. (i) as (j).

§ 402 Taxability of beneficiary of employees’ trust

  • (a) Pub. L. 88–272, § 232(e)(1), struck out “except that section 72(e)(3) shall not apply” after “(relating to annuities)”.
  • (a) Pub. L. 88–272, § 221(c)(1), substituted “subsections (e) and (f) of section 425” for “section 421(d)(2) and (3)”.
  • (b) (d) Pub. L. 88–272, § 232(e)(2), (3), struck out “except that section 72(e)(3) shall not apply” after “(relating to…

§ 403 Taxation of employee annuities

  • (a)(1) (b)(1) (c) Pub. L. 88–272, § 232(e)(4)–(6), struck out “except that section 72(e)(3) shall not apply” after “(relating to…

§ 406 Employees of foreign affiliates covered by section 3121(l) agreements

§ 407 Certain employees of domestic subsidiaries engaged in business outside the United States

§ 421 General rules

  • § 421 Pub. L. 88–272 amended section generally, and among other changes, inserted provisions relating to the effect of a…

§ 423 Employee stock purchase plans

§ 424 Definitions and special rules

§ 441 Period for computation of taxable income

  • (f)(2)(A) Pub. L. 88–272 inserted “, including,” before “or ending with reference to”.

§ 461 General rule for taxable year of deduction

  • (f) Pub. L. 88–272 added subsec. (f).

§ 483 Interest on certain deferred payments

§ 535 Accumulated taxable income

  • (b)(1) Pub. L. 88–272 substituted “section 275(a)(4)” for “section 164(b)(6)”.

§ 541 Imposition of personal holding company tax

  • § 541 Pub. L. 88–272 reduced the tax from 75 percent of undistributed income not in excess of $2,000, and 85 percent when in…

§ 542 Definition of personal holding company

  • (a)(1) Pub. L. 88–272, § 225(b), substituted “60 percent of its adjusted ordinary gross income (as defined in section…
  • (b) Pub. L. 88–272, § 225(k)(1), substituted “adjusted ordinary gross income” for “gross income”, wherever appearing.
  • (c)(2) (c)(6) (c)(7) (c)(8) (c) Pub. L. 88–272, § 225(c)(1), (2), inserted among the exceptions, domestic building and loan associations within section…
  • (d) Pub. L. 88–272, § 225(c)(3), added subsec. (d).

§ 543 Personal holding company income

  • (a) Pub. L. 88–272, § 225(d), amended subsec. (a) generally, and among other changes, substituted “adjusted ordinary gross…
  • (b) Pub. L. 88–272, § 225(d), added subsec. (b). Former subsec. (b), which provided that gross income and personal holding…
  • (d) Pub. L. 88–272, § 225(k)(2), struck out subsec. (d) which related to special adjustment on disposition of antitrust…

§ 544 Rules for determining stock ownership

  • § 544 Pub. L. 88–272 substituted “section 543(a)(7)” for “section 543(a)(5)”, and “section 543(a)(4)” for “section…

§ 545 Undistributed personal holding company income

  • (a) Pub. L. 88–272, § 225(i)(1), inserted reference to subsection (c).
  • (b)(1) (b)(2) Pub. L. 88–272, §§ 207(b)(5), 209(c)(2), substituted “section 275(a)(4)” for “section 164(b)(6)” in par. (1), and…
  • (c) Pub. L. 88–272, § 225(i)(2), added subsec. (c).

§ 562 Rules applicable in determining dividends eligible for dividends paid deduction

  • (b) Pub. L. 88–272 designated existing provisions as subpars. (A) and (B) of par. (1), excepted personal holding companies…

§ 584 Common trust funds

  • (c)(2) Pub. L. 88–272 struck out “section 34 or” before “section 116 applies”.

§ 614 Definition of property

  • (b) Pub. L. 88–272, § 226(a), amended subsec. (b) generally, and among other changes, substituted provisions stating that…
  • (c) Pub. L. 88–272, § 226(b)(1), (2), struck out par. (5) which defined operating mineral interests, and “1958” before…
  • (d) Pub. L. 88–272, § 226(b)(3), amended subsec. (d) generally, substituting the definition of operating mineral interests…
  • (e)(2) Pub. L. 88–272, § 226(b)(4), struck out “within the meaning of subsection (b)(3)” at end.

§ 631 Gain or loss in the case of timber, coal, or domestic iron ore

  • § 631 Pub. L. 88–272, § 227(b)(1), inserted reference to domestic iron ore in heading.
  • (c) Pub. L. 88–272, § 227(a)(1), inserted “or domestic iron ore” in heading, “or iron ore mined in the United States” after…

§ 642 Special rules for credits and deductions

  • (a) Pub. L. 88–272, § 201(d)(6)(A), struck out par. (3) which related to dividends received by individuals.
  • (i) Pub. L. 88–272, § 201(d)(6)(B), designated existing provisions as par. (1) and added par. (2).

§ 691 Recipients of income in respect of decedents

  • (c)(2)(B) Pub. L. 88–272 substituted “421(c)(2), relating to the deduction for estate tax with respect to stock options to which…

§ 702 Income and credits of partner

  • (a)(5) Pub. L. 88–272 struck out “a credit under section 34,” before “an exclusion”.

§ 751 Unrealized receivables and inventory items

  • (c) Pub. L. 88–272, in second sentence, inserted reference to section 1250.

§ 832 Insurance company taxable income

  • (c)(10) Pub. L. 88–272 inserted reference to part I of subchapter D.

§ 834 Determination of taxable investment income

  • (d)(2) Pub. L. 88–272 provided that for taxable years beginning after Dec. 31, 1962, no accrual of discount shall be required…

§ 852 Taxation of regulated investment companies and their shareholders

  • (b)(3)(C) (b)(3)(D)(i) Pub. L. 88–272, § 229(a)(1), (2), substituted “45 days” for “30 days”.
  • (d) Pub. L. 88–272, § 229(b), added subsec. (d).

§ 853 Foreign tax credit allowed to shareholders

  • (c) Pub. L. 88–272 substituted “45 days” for “30 days”.

§ 854 Limitations applicable to dividends received from regulated investment company

  • (a) Pub. L. 88–272, § 201(d)(8), struck out “section 34(a) (relating to credit for dividends received by individuals),”…
  • (b) Pub. L. 88–272, §§ 201(d)(9), (10), 229(a)(4), substituted “45 days” for “30 days” in par. (2), and struck out “the…

§ 855 Dividends paid by regulated investment company after close of taxable year

  • (c) Pub. L. 88–272 substituted “45 days” for “30 days”.

§ 856 Definition of real estate investment trust

  • (a)(6) Pub. L. 88–272 substituted “adjusted ordinary gross income (as defined in section 543(b)(2))” for “gross income”.

§ 857 Taxation of real estate investment trusts and their beneficiaries

  • (c) Pub. L. 88–272 struck out “section 34(a) (relating to credit for dividends received by individuals),” before “section…

§ 871 Tax on nonresident alien individuals

  • (a) Pub. L. 88–272, § 113(b)(2), substituted “30 percent tax” for “and gross income of not more than $15,400” in heading.
  • (b) Pub. L. 88–272, §§ 113(b)(1), (3), 201(d)(12), substituted “$19,000 in the case of a taxable year beginning in 1964 or…

§ 901 Taxes of foreign countries and of possessions of United States

  • (d) Pub. L. 88–272 inserted reference to section 275.

§ 903 Credit for taxes in lieu of income, etc., taxes

  • § 903 Pub. L. 88–272 substituted “sections 164(a) and 275(a)” for “section 164(b)”.

§ 904 Limitation on credit

  • (g)(2) Pub. L. 88–272 substituted “section 1503(b)” for “section 1503(d)”.

§ 911 Citizens or residents of the United States living abroad

  • (c)(1)(B) Pub. L. 88–272 substituted “$25,000” for “$35,000”.

§ 1016 Adjustments to basis

  • (a)(15) Pub. L. 88–272, § 227(b)(5), inserted “or domestic iron ore”.
  • (a)(19) Pub. L. 88–272, § 203(a)(3)(C), inserted “and in section 203(a)(2) of the Revenue Act of 1964”.
  • (a)(21) Pub. L. 88–272, § 225(j)(2), added par. (21).

§ 1023 Cross references

    § 1033 Involuntary conversions

    • (h)(3) Pub. L. 88–272 added par. (3).

    § 1212 Capital loss carrybacks and carryovers

    • (a) Pub. L. 88–272 designated existing provisions as subsec. (a), limited such subsection to corporations, and added…

    § 1222 Other terms relating to capital gains and losses

    • (9) (10) Pub. L. 88–272 struck out provisions from par. (9) relating to taxpayers other than corporations, and inserted “In the…

    § 1231 Property used in the trade or business and involuntary conversions

    • (b)(2) Pub. L. 88–272 inserted reference to iron ore in text, and to domestic iron ore in heading.

    § 1245 Gain from dispositions of certain depreciable property

    • (a)(2) (a)(3)(C) Pub. L. 88–272 redefined “recomputed basis” with respect to elevators or escalators in par. (2), and inserted subpar.…

    § 1250 Gain from dispositions of certain depreciable realty

    § 1341 Computation of tax where taxpayer restores substantial amount held under claim of right

    • (b)(2) Pub. L. 88–272 substituted “7701(a)(33) without regard to the limitation continued in the last two sentences thereof)”…

    § 1402 Definitions

    • (a)(3)(B) Pub. L. 88–272 inserted reference to iron ore.

    § 1441 Withholding of tax on nonresident aliens

    • (a) (b) Pub. L. 88–272 reduced the withholding rate from 18% to 14%.

    § 1503 Computation and payment of tax

    • (a) Pub. L. 88–272, § 234(a), struck out provisions which increased the tax imposed under section 11(c), or section 831, by…
    • (b) Pub. L. 88–272, § 234(b)(1), (2), redesignated subsec. (d) as (b), and substituted references to section 7701 for…
    • (c) Pub. L. 88–272, § 234(b)(1), struck out subsec. (c) which defined regulated public utility. See section 7701(a)(33) of…
    • (d) Pub. L. 88–272, § 234(b)(1), redesignated subsec. (d) as (b).

    § 1552 Earnings and profits

    • (a)(3) Pub. L. 88–272 struck out “(determined without regard to the 2 percent increase provided by section 1503(a))”, before…

    § 1561 Limitation on accumulated earnings credit in the case of certain controlled corporations

    § 1563 Definitions and special rules

    § 3121 Definitions

    • (a)(11) Pub. L. 88–272 substituted “is a plan described in section 403(a), or” for “meets the requirements of section…

    § 3401 Definitions

    • (a)(14) Pub. L. 88–272, § 204(b), added par. (14).
    • (a)(15) Pub. L. 88–272, § 213(c), added par. (15).

    § 3402 Income tax collected at source

    • (a) Pub. L. 88–272, § 302(a), reduced tax from 18% to 14%.
    • (c)(1) Pub. L. 88–272, § 302(b), substituted new tables reflecting lowered withholding rates.

    § 6012 Persons required to make returns of income

    • (c) Pub. L. 88–272 inserted provisions relating to sale of residence.

    § 6014 Income tax return—tax not computed by taxpayer

    • (a) Pub. L. 88–272 struck out “34 or” before “37 shall not be allowed”, and inserted provision that in case of a married…

    § 6039 Returns required in connection with certain options

    § 6040 Cross references

      § 6052 Returns regarding payment of wages in the form of group-term life insurance

      § 6163 Extension of time for payment of estate tax on value of reversionary or remainder interest in property

      • (b) Pub. L. 88–272 substituted “or periods not in excess of 3” for “not in excess of 2”.

      § 6212 Notice of deficiency

      • (c)(2)(A) Pub. L. 88–272 substituted “with respect to the” for “to take”.

      § 6323 Validity and priority against certain persons

      • (a) Pub. L. 88–272, § 236(c)(1), substituted “subsections (c) and (d)” for “subsection (c)”.
      • (d) (e) Pub. L. 88–272, § 236(a), added subsec. (d) and redesignated former subsec. (d) as (e).

      § 6324 Special liens for estate and gift taxes

      • (a) (b) Pub. L. 88–272, § 236(c)(2), inserted “and subsection (d) (relating to purchases of motor vehicles)”.
      • § 6324 Pub. L. 88–272, § 236(b), added subsec. (d).

      § 6501 Limitations on assessment and collection

      • (f) Pub. L. 88–272 substituted “gross income and adjusted ordinary gross income, described in section 543” for “gross…

      § 6504 Cross references

      • (3) Pub. L. 88–272 substituted “with respect to the” for “to take”.

      § 6511 Limitations on credit or refund

      • (d)(6) Pub. L. 88–272 designated existing provisions as clause (i) and added clause (ii) in par. (2)(B), and added par. (5).

      § 6652 Failure to file certain information returns, registration statements, etc.

      • (a) Pub. L. 88–272 provided a penalty for failure to make a return required by section 6039(a) with respect to a transfer…

      § 6655 Failure by corporation to pay estimated income tax

      • (c)(2) Pub. L. 88–272, § 122(c)(1), substituted “any installment date” and “such installment date” for “the 15th day of the…
      • (d) Pub. L. 88–272, § 122(c)(2), redesignated cls. (A)(i) and (ii) as (A)(iii) and (iv), respectively, added cls. (A)(i)…

      § 7701 Definitions

      • (a)(20) Pub. L. 88–272 inserted “For the purpose of applying the provisions of section 79 with respect to group-term life…
      • (a)(33) Pub. L. 88–272 added par. (33).