# Pub. L. 91-172: changes to the Internal Revenue Code 1969-12-30, 83 Stat. 678. Source: . ## Legislative history - Bill: [H.R. 13270](https://www.congress.gov/bill/91st-congress/house-bill/13270) ## § 1: Tax imposed - § 1(a): Pub. L. 91–172 substituted a table of rates of tax for married individuals filing joint returns and surviving spouses for the tables of rates of tax on individuals. For rates of taxes on unmarried individuals and married persons filing separate returns, see subsecs. (c) and (d) of this section. - § 1(b): Pub. L. 91–172 generally revised rates of tax of heads of household downwards and struck out provisions defining head of household, determination of status, and limitations. For definition of head of household, determination of status, and limitations, see section 2(b) of this title. - § 1(c): Pub. L. 91–172 substituted rates of tax on unmarried individuals (other than surviving spouses and heads of household) for special rules explaining the rates of tax imposed under former subsecs. (a) and (b)(1) and prescribing a maximum limit of 87 percent of the taxable year. - § 1(d): Pub. L. 91–172 substituted a table of rates of tax for married individuals filing separate returns for provision prescribing the applicability of the rates to non-resident aliens. For applicability of rates of tax to non-resident aliens, see section 2(d) of this title. - § 1(e): Pub. L. 91–172 struck out cross reference to section 63. See section 2(e) of this title. ## § 2: Definitions and special rules - § 2(a): Pub. L. 91–172 redesignated subsec. (b) as (a). See sec. 1(a) of this title. - § 2(b): Pub. L. 91–172 redesignated provisions of former section 1(b)(2) to (4) of this title as subsec. (b). Former subsec. (b) redesignated (a), with minor changes. - § 2(c): Pub. L. 91–172 added subsec. (c). - § 2(d): Pub. L. 91–172 redesignated as subsec. (d) provisions of former section 1(d) with minor changes. - § 2(e): Pub. L. 91–172 redesignated as subsec. (e) provisions of former section 1(e). ## § 3: Tax tables for individuals - § 3: Pub. L. 91–172 raised the individual gross income limit of $5,000 to $10,000 for exercising the option and substituted provision that the tax has to be determined under tables to be prescribed by the Secretary or his delegate for tables of tax rates for single persons, heads of household, married persons filing joint returns, married persons filing separate returns with 10 per cent standard deduction and married persons filing separate returns with minimum standard deduction. ## § 5: Cross references relating to tax on individuals - § 5(a): Pub. L. 91–172, § 301(b)(2), added par. (5). - § 5(b): Pub. L. 91–172, § 803(d)(6), substituted “tax” for “surtax” in pars. (1) and (5). ## § 11: Tax imposed - § 11(d): Pub. L. 91–172 substituted “section 1561 or 1564” for “section 1561”. ## § 12: Cross references relating to tax on corporations - § 12: Pub. L. 91–172 added par. (8). ## § 15: Effect of changes - § 15(d): Pub. L. 91–172 substituted provisions covering changes made by the Tax Reform Act of 1969 in case of individuals for provisions covering changes made by Revenue Act of 1964. ## § 46: Amount of credit - § 46: Pub. L. 91–172, § 301(b)(4), inserted “section 56 (relating to minimum tax for tax preference),”. - § 46: Pub. L. 91–172, § 401(e)(1), reenacted subsection with minor changes and substituted reference to section 1563(a) for reference to section 1504. - § 46: Pub. L. 91–172, § 703(b), added pars. (5) and (6). ## § 47: Rehabilitation credit - § 47(a): Pub. L. 91–172, § 703(c)(2), added par. (5). - § 47(a): Pub. L. 91–172, § 703(c)(1), inserted provision making subpars. (B) and (C) inapplicable to any casualty or theft occurring after April 18, 1969. ## § 48: Energy credit - § 48(a)(4): Pub. L. 91–172, § 121(d)(2)(A), inserted provision relating to the percentage of the basis or cost of debt-financed property that may be considered in computing qualified investment under section 46(c) of this title. - § 48(c)(2)(C): Pub. L. 91–172, § 401(e)(2), reenacted subpar. (C) with minor changes and substituted reference to controlled group for reference to affiliated group. - § 48(c)(3)(C): Pub. L. 91–172, § 401(e)(3), substituted definition of controlled group for definition of affiliated group. - § 48(d)(2): Pub. L. 91–172, § 401(e)(4), substituted reference to a component member of a controlled group for reference to a member of an affiliated group. ## § 62: Adjusted gross income defined - § 62: Pub. L. 91–172 added par. (9). ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(n): Pub. L. 91–172, § 515(b)(1), altered section to accommodate the insertion into sections 402 and 403 of provisions under which employer contributions to qualified pension, profit sharing, stock bonus, and annuity plans for plan years beginning after 1969 are to be treated as ordinary income when received in a lump sum distribution, but with such amounts to be eligible for a special averaging procedure. - § 72(n): Pub. L. 91–172, § 515(b)(2), added par. (4). ## § 82: Reimbursement of moving expenses - Enacted 26 U.S.C. § 82. ## § 83: Property transferred in connection with performance of services - Enacted 26 U.S.C. § 83. ## § 101: Certain death benefits - § 101(b): Pub. L. 91–172 substituted references to section 170(b)(1)(A) (ii) and (vi), and to religious organizations, for references to section 503(b)(1), (2), or (3). ## § 103: Interest on State and local bonds - § 103: Pub. L. 91–172 added subsec. (d) and redesignated former subsec. (d) as (e). ## § 123: Amounts received under insurance contracts for certain living expenses - Enacted 26 U.S.C. § 123. ## § 140: Cross references to other Acts - § 140: Pub. L. 91–172 renumbered section 123 of this title as this section. ## § 151: Allowance of deductions for personal exemptions - § 151: Pub. L. 91–172, § 801(a)(1), (b)(1), (c)(1), (d)(1), increased exemption from $600 to $625 with respect to taxable years beginning after Dec. 31, 1969, and before Jan. 1, 1971, from $625 to $650 for taxable years beginning after Dec. 31, 1970, and before Jan. 1, 1972, from $650 to $700 for taxable years beginning after Dec. 31, 1971, and before Jan. 1, 1973, and from $700 to $750 for taxable years beginning after Dec. 31, 1972. ## § 152: Dependent defined - § 152(b)(2): Pub. L. 91–172 inserted reference to foster children who satisfy requirements of subsec. (a)(9) of this section. ## § 162: Trade or business expenses - § 162(c): Pub. L. 91–172, § 902(b), designated existing provisions as par. (1), extended the applicability of nondeductible expenses for payments to any official or employee of any government, or of any agency or instrumentality of any government, and added pars. (2) and (3). - § 162(f), § 162(g): Pub. L. 91–172, § 902(a), added subsecs. (f) and (g). Former subsec. (f) redesignated (h). - § 162(h): Pub. L. 91–172, §§ 516(c)(2)(A), 902(a), redesignated former subsec. (f) as (h), substituted “(1) For” for “For”, and inserted reference to section 1253 for special rule relating to the treatment of payments by a transferee of a franchise, trademark, or trade name. ## § 163: Interest - § 163(d), § 163(e): Pub. L. 91–172 added subsec. (d). Former subsec. (d) redesignated (e). ## § 166: Bad debts - § 166: Pub. L. 91–172 added par. (4). ## § 167: Depreciation - § 167(e)(3): Pub. L. 91–172, § 521(d), added par. (3). - § 167: Pub. L. 91–172, § 521(a), added subsecs. (j) and (k). Former subsec. (j) redesignated (m). - § 167: Pub. L. 91–172, § 441(a), added subsec. (l). - § 167: Pub. L. 91–172, § 521(a), redesignated former subsec. (j) as (m). ## § 169: Amortization of pollution control facilities - Enacted 26 U.S.C. § 169. ## § 170: Charitable, etc., contributions and gifts - § 170(a)(3): Pub. L. 91–172, § 201(a)(1)(B), added par. (3). - § 170(b): Pub. L. 91–172, § 201(a)(1)(B), (h)(1), increased the general limitation on the charitable contributions deduction for individual taxpayers from 30 percent of adjusted gross income to 50 percent of his contribution base and provided that where a taxpayer makes a contribution to a public charity of property which has appreciated in value the taxpayer could deduct such contributions of property under the 50 percent limitation if he elects to take the unrealized appreciation in value into account for the tax purposes, the unlimited charitable deduction is phased out over a 5-year period and contributions to a private operating foundation and contributions to a private nonoperating foundation distributing such contributions to public charities or private operating foundations within two and half months following the year of receipt are also subjected to 50 percent limitation (30 percent in the case of gifts of appreciated property), and, in par. (1)(C), inserted provisions relating to the determination of the amount of charitable contributions and taxes paid by a married individual who previously filed a joint return with a former deceased spouse. - § 170(c): Pub. L. 91–172, § 201(a)(1)(B), struck out references to “Territory” in pars. (1) and (2)(A), and inserted reference to participation in or intervention in any political campaign on behalf of any candidate for public office in par. (2)(D). - § 170(d): Pub. L. 91–172, § 201(a)(1)(B), added subsec. (d) consisting of provisions substantially transferred from subsec. (b) in the general amendment of subsec. (b) by Pub. L. 91–172. Former subsec. (d) redesignated (b). - § 170(e): Pub. L. 91–172, § 201(a)(1)(B), substituted provisions covering certain contributions of ordinary income and capital gain property for provisions setting out a special rule for charitable contributions. - § 170(f): Pub. L. 91–172, § 201(a)(1)(B), substituted provisions for the disallowance of the deduction in specified cases for provision covering future interests in tangible personal property. - § 170(g): Pub. L. 91–172, § 201(a)(2)(A), substituted “subsection (d)(1)” for “subsection (b)(5)” in two places in par. (1) and struck out par. (2)(B) covering contributions to organizations substantially more than half of the assets and the total income were devoted to charitable purposes. - § 170(h): Pub. L. 91–172, § 201(a)(1)(A), redesignated subsec. (d) as (h). Former subsec. (h) redesignated (i). - § 170(i): Pub. L. 91–172, §§ 101(j)(2), 201(a)(1)(A), redesignated former subsec. (h) as (i), struck out par. (1) covering disallowance of deductions for gifts to charitable organizations engaging in prohibited transactions, and removed the par. (2) designation from the provisions covering disallowance of deductions for use of communist controlled organizations. Former subsec. (i) redesignated (j). - § 170(j): Pub. L. 91–172, § 201(a)(1)(A), redesignated former subsec. (i) as (j). ## § 172: Net operating loss deduction - § 172(b)(1): Pub. L. 91–172 substituted “(E), (F), and (G)”, for “and (E)” in subpar. (A)(i) and added subpars. (F) and (G). ## § 179: Election to expense certain depreciable business assets - § 179(d): Pub. L. 91–172 substituted reference to component members of a controlled group for reference to members of an affiliated group in pars. (2)(B) and (b), and substituted definition of controlled group for definition of affiliated group in par. (7). ## § 183: Activities not engaged in for profit - Enacted 26 U.S.C. § 183. ## § 186: Recoveries of damages for antitrust violations, etc. - Enacted 26 U.S.C. § 186. ## § 216: Deduction of taxes, interest, and business depreciation by cooperative housing corporation tenant-stockholder - § 216(b)(4): Pub. L. 91–172 added par. (4). ## § 217: Moving expenses - § 217: Pub. L. 91–172 substantially reenacted existing provisions and extended the coverage to self-employed persons working at the new location for 78 weeks, made it a requirement that the new principal place of work be located 50 miles from the former residence, and redefined the deduction to include costs of house-hunting trips, temporary living expenses prior to locating a new home, and expenses of selling an old home or buying a new one. ## § 243: Dividends received by corporations - § 243(b)(3)(C): Pub. L. 91–172 substituted “sections 615(c)(1) and 617(h)(1)” for “section 615(c)(1)”. ## § 246: Rules applying to deductions for dividends received - § 246(b)(1): Pub. L. 91–172, § 512(f)(3), substituted “and 247, and without regard to any capital loss carryback to the taxable year under section 1212(a)(1)” for “and 247”. - § 246(d): Pub. L. 91–172, § 434(b)(1), added subsec. (d). ## § 249: Limitation on deduction of bond premium on repurchase - Enacted 26 U.S.C. § 249. ## § 263: Capital expenditures - § 263(e): Pub. L. 91–172 added subsec. (e). ## § 277: Deductions incurred by certain membership organizations in transactions with members - Enacted 26 U.S.C. § 277. ## § 279: Interest on indebtedness incurred by corporation to acquire stock or assets of another corporation - Enacted 26 U.S.C. § 279. ## § 301: Distributions of property - § 301(b)(1): Pub. L. 91–172, §§ 211(b)(1), 905(b)(2), substituted “1250(a), 1251(c), or 1252(a)” for “or 1250(a)” and inserted reference to section 311(a). - § 301(d): Pub. L. 91–172, §§ 211(b)(2), 905(b)(2), substituted “1250(a), 1251(c), or 1252(a)”, for “or 1250(a)” and inserted reference to section 311(a). ## § 305: Distributions of stock and stock rights - § 305(a): Pub. L. 91–172 substituted reference to this section for reference to subsec. (b), and omitted reference to rights to acquire its stock. - § 305(b): Pub. L. 91–172 omitted reference to rights to acquire its stock, in text preceding par. (1), redesignated former par. (2) as par. (1) and added pars. (2) to (5). Former par. (1), providing for the extent to which distribution of preference dividends were to be treated as distribution of property to which section 301 applied, was struck out. - § 305(c), § 305(d), § 305(e): Pub. L. 91–172 added subsecs. (c) and (d) and redesignated former subsec. (c) as (e). ## § 311: Taxability of corporation on distribution - § 311(a): Pub. L. 91–172, § 905(b)(1), inserted reference to subsec. (d). - § 311: Pub. L. 91–172, § 905(a), added subsec. (d). ## § 312: Effect on earnings and profits - § 312(c): Pub. L. 91–172, §§ 211(b)(3), 905(b)(2), substituted “1250(a), 1251(c), or 1252(a)”, for “or 1250(a)” and inserted reference to section 311(d). - § 312(m): Pub. L. 91–172, § 442(a), added subsec. (m). ## § 381: Carryovers in certain corporate acquisitions - § 381(b)(3): Pub. L. 91–172, § 512(c), substituted “a net operating loss or a net capital loss” for “a net operating loss”. - § 381(c)(6): Pub. L. 91–172, § 521(f), substituted “subsections (b), (j) and (k) of section 167” for “paragraphs (2), (3) and (4) of section 167(b)” and inserted reference to adjusted basis in the hand of the distributor or transferor corporation. - § 381(c)(10): Pub. L. 91–172, § 504(c)(2), substituted “Treatment of certain mining exploration and development expenses of distributor or transferor corporation” for “Treatment of certain expenses deferred by the election of distributor or transferor corporation” in heading, limited deduction of expenses deferred under sections 615 and 616 of this title by the acquiring corporation as if it were the distributor or transferor corporation to pre-1970 exploration and development expenditures, and inserted provision that if distributor or transferor corporation, for any taxable year, was allowed the deduction in sections 615(a) or 617(a) of this title or made the election provided in section 615(b) of this title, acquiring corporation shall be deemed to have been allowed such deduction or deductions or to have made such election, as the case may be, for the purpose of applying the limitation provided in section 617 of this title. ## § 385: Treatment of certain interests in corporations as stock or indebtedness - Enacted 26 U.S.C. § 385. ## § 402: Taxability of beneficiary of employees’ trust - § 402(a): Pub. L. 91–172, § 515(a)(1), added par. (5). - § 402(b): Pub. L. 91–172, § 321(b)(1), substituted provision for inclusion of contributions made by an employer to a nonexempt trust in the “gross income of the employee in accordance with section 83 (relating to property transferred in connection with performance of services), except that the value of the employee’s interest in the trust shall be substituted for the fair market value of the property for purposes of applying such section” for prior provision for inclusion in the “gross income of an employee for the taxable year in which the contribution is made to the trust in the case of an employee whose beneficial interest in such contribution is nonforfeitable at the time the contribution is made”, and provided that distributions of income of such trust before the annuity starting date (as defined in section 72(c)(4)) shall be included in the gross income of the employee without regard to section 72(e)(1) (relating to amount not received as annuities) and that a beneficiary of any such trust shall not be considered the owner of any portion of such trust under subpart E of part I of subch. J (relating to grantors and others treated as substantial owners). ## § 403: Taxation of employee annuities - § 403(a)(2): Pub. L. 91–172, § 515(a)(2), added subpar. (C). - § 403(c): Pub. L. 91–172, § 321(b)(2), consolidated provisions of subsec. (c) providing for taxability of beneficiary under a nonqualified annuity, the employees gross income to include amount contributed by employer for annuity contract in the year in which amount is contributed, the amount to be included as provided in section 72 of this title and of subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, the gross income to include amount contributed by employer after Dec. 31, 1957, in the year of change from forfeitable to nonforfeitable rights, the new provisions including premiums paid by an employer in accordance with section 83, except that value of the contract shall be substituted for fair market value of the property for purposes of applying such section 83, such provision not to be applicable to that portion of premiums paid which is excluded from gross income under subsec. (b) of this section. - § 403: Pub. L. 91–172, § 321(b)(2), struck out subsec. (d) providing for taxability of beneficiary under certain forfeitable contracts purchased by exempt organizations, including farmers’ cooperatives, gross income of the employee to include (amount contributed by employer after Dec. 31, 1957), in year of change from forfeitable to nonforfeitable rights. See subsec. (c) of this section. ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(a)(5): Pub. L. 91–172 substituted “If the plan is not one included in paragraph (1), (2), or (3), in the taxable year in which an amount attributable to the contribution is includible in the gross income of employees participating in the plan, but, in the case of a plan in which more than one employee participates only if separate accounts are maintained for each employee” for “In the taxable year when paid, if the plan is not one included in paragraph (1), (2), or (3), if the employees’ rights to or derived from such employer’s contribution or such compensation are nonforfeitable at the time the contribution or compensation is paid”. ## § 406: Employees of foreign affiliates covered by section 3121(l) agreements - § 406(c): Pub. L. 91–172 substituted “provisions and limitation of tax” for “provisions” in heading, and substituted “section 72(n), section 402(a)(2),” for “section 402(a)(2)” in text. ## § 407: Certain employees of domestic subsidiaries engaged in business outside the United States - § 407(c): Pub. L. 91–172 substituted “provisions and limitation of tax” for “provisions” in heading, and substituted “section 72(n), section 402(a)(2),” for “section 402(a)(2)” in text. ## § 443: Returns for a period of less than 12 months - § 443(d), § 443(e): Pub. L. 91–172 added subsec. (d) and redesignated former subsec. (d) as (e). ## § 451: General rule for taxable year of inclusion - § 451(d): Pub. L. 91–172 added subsec. (d). ## § 481: Adjustments required by changes in method of accounting - § 481(b)(3)(A): Pub. L. 91–172 substituted “loss carryback or carryover” for “loss carryover”. ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(a): Pub. L. 91–172, § 101(j)(3), struck out reference to section 504. - § 501(b): Pub. L. 91–172, § 101(j)(4), inserted reference to certain other activities in heading and to part III in text, and struck out reference to tax on unrelated income. - § 501(c): Pub. L. 91–172, §§ 101(j)(5), 121(b)(6)(A), substituted “part IV” for “part III” after “Corporations organized by an association subject to” and added par. 18. - § 501(c)(9): Pub. L. 91–172, § 121(b)(5)(A), inserted reference to designated beneficiaries and struck out reference to 85 percent or more income of voluntary employees’ beneficiary associations. - § 501(c)(10): Pub. L. 91–172, § 121(b)(5)(A), substituted provisions concerning domestic fraternal societies, orders, or associations, operating under the lodge system, for provisions covering voluntary employees’ beneficiary associations which would pay benefits to designated beneficiaries of members. - § 501(e): Pub. L. 91–172, § 101(j)(6), substituted “section 170(b)(1)(A)(iii)” for “section 503(b)(5)” in last sentence. ## § 502: Feeder organizations - § 502: Pub. L. 91–172 redesignated first sentence of existing provisions as subsec. (a), and substantial portion of second sentence as subsec. (b)(1), and, in subsec. (b)(1) as so redesignated, inserted reference to section 512 of this title, and added pars. (2) and (3). ## § 503: Requirements for exemption - § 503(a)(1): Pub. L. 91–172, §§ 101(j)(7), 121(b)(6)(B)(ii), redesignated subpar. (B) as (A) and inserted reference to section 501(c)(18). Former subpar. (A), referring to organizations described in section 501(c)(3) and to prohibited transactions engaged in after July 1, 1950, was struck out. - § 503(a)(1): Pub. L. 91–172, § 101(j)(7), redesignated subpar. (C) as (B). Former subpar. (B), referring to organizations described in section 501(c)(17) was amended by addition of a reference to section 501(c)(18), and redesignated as subpar. (A). - § 503(a)(1): Pub. L. 91–172, §§ 101(j)(7), 121(b)(6)(B)(i), added subpar. (C). Former subpar. (C), dealing with organizations described in section 401(a) and with prohibited transactions engaged in after Mar. 1, 1954, was redesignated as subpar. (B). - § 503(a)(2): Pub. L. 91–172, §§ 101(j)(8), 121(b)(6)(B)(ii), struck out reference to organizations described in section 501(c)(3), and inserted references to organizations described in section 501(c)(18). - § 503(b): Pub. L. 91–172, § 101(j)(14), redesignated subsec. (c) as (b). Former subsec. (b), setting out the organizations to which section applied, was struck out. - § 503(c): Pub. L. 91–172, §§ 101(j)(9), (14), 121(b)(6)(B)(ii), redesignated subsec. (d) as (c), struck out reference to organizations described in section 501(c)(3), and inserted reference to organizations described in section 501(c)(17). Former subsec. (c) redesignated (b). - § 503(d): Pub. L. 91–172, § 101(j)(10), (14), redesignated subsec. (g) as (d) and substituted “subsection (b)(1)” for “subsection (c)(1).” Former subsec. (d) redesignated (c). - § 503(e): Pub. L. 91–172, § 101(j)(11), (14), redesignated subsec. (h) as (e), modified heading to read: “Special rules”, substituted “subsection (b)(1)” for “subsection (c)(1)” in text preceding par. (1) and in par. (3), and in text preceding par. (1) struck out “acquired by a trust described in section 401(a) or section 501(c)(17)”. Former subsec. (e), covering the disallowance of certain charitable deductions, was struck out. - § 503(f): Pub. L. 91–172, § 101(j)(12), (14), redesignated subsec. (i) as (f) and substituted “Subsection (b)(1)” for “Subsection (c)(1)” and “subsection (e)” for “subsection (h)”. Former subsec. (f), defining “gift or bequest”, was struck out. - § 503: Pub. L. 91–172, § 101(j)(13), (14), redesignated subsec. (j) as (g) and substituted “subsection (b)” for “subsection (c)” in par. (1). Former subsec. (g) redesignated (d). - § 503: Pub. L. 91–172, § 101(j)(14), redesignated subsecs. (h), (i), and (j) as (e), (f), and (g), respectively. Former subsecs. (e) and (f) were struck out and former subsec. (g) was redesignated (d). ## § 507: Termination of private foundation status - Enacted 26 U.S.C. § 507. ## § 508: Special rules with respect to section 501(c)(3) organizations - Enacted 26 U.S.C. § 508. ## § 509: Private foundation defined - Enacted 26 U.S.C. § 509. ## § 511: Imposition of tax on unrelated business income of charitable, etc., organizations - § 511(a)(2)(A): Pub. L. 91–172, § 121(a)(1), removed reference, in heading, to pars. (2), (3), (5), (6), (14)(B), (C), and (17) of section 501(c) of this title, and, in text, struck out exemptions to churches, conventions, or associations of churches, from the imposition of tax on their unrelated business income, made corporations organized under section 501(c)(1) of this title (i.e. organized under Acts of Congress), exempt from such tax, but made all such exemptions subservient to the exceptions in part II and section 501(a) of this title. - § 511(b)(1): Pub. L. 91–172, § 803(d)(2), substituted section 1(d) for section 1 in reference to section under which the computation of the tax dealing with the imposition of tax on the unrelated business taxable income of trusts, is computed. - § 511(b)(2): Pub. L. 91–172, § 121(a)(2), pluralized “trust” in heading and in text made the imposition of tax on the unrelated business income of exempt trusts subject to provisions of part II, and, for purposes of determining trusts exempt from taxation, substituted reference to section 501(a) for reference to “section 501(c)(3) or (17) or section 401(a)”. - § 511(c): Pub. L. 91–172, § 121(a)(3), added subsec. (c). Former subsec. (c), covering the effective date, was struck out. - § 511: Pub. L. 91–172, § 301(b)(8), added subsec. (d). ## § 512: Unrelated business taxable income - § 512(a): Pub. L. 91–172, § 121(b)(1), designated existing provisions as pars. (1) and (2)(B) and added pars. (2)(A) and (3). - § 512(b): Pub. L. 91–172, § 121(b)(2)(D), substituted “Modifications” for “Exceptions, additions, and limitations”, in heading, and, in text preceding par. (1) substituted “The modifications referred to in subsection (a)” for “The exceptions, additions, and limitations applicable in determining unrelated business taxable income”. - § 512(b)(3)(A): Pub. L. 91–172, § 121(b)(2)(A), inserted reference to exceptions set out in subsec. (b)(3)(B) in text preceding cl. (i), substituted “property described in section 1245(a)(3)(C)” for “personal property leased with the real property” in parenthetical of cl. (i), and added cl. (ii). - § 512(b)(3)(B): Pub. L. 91–172, § 121(b)(2)(A), added subpar. (B). - § 512(b)(3)(C): Pub. L. 91–172, § 121(b)(2)(A), substituted “rents excluded under subparagraph (A)” for “such rents”. - § 512(b)(4): Pub. L. 91–172, § 121(b)(2)(A), inserted reference to pars. (1), (3) and (5) of this subsec., and substituted “debt financed property” for “a business lease”. - § 512(b)(12): Pub. L. 91–172, § 121(b)(2)(B), made the allowance of the specific $1,000 deduction inapplicable for the purposes of computing the net operating loss under section 172 of this title and par. (6) of this subsec., and provided for the allowance of specific deductions equal to the lower of $1,000 or the gross income derived from any unrelated trade or business carried on by a parish, individual church, district, or other local unit. - § 512(b)(15), § 512(b)(16), § 512(b)(17): Pub. L. 91–172, § 121(b)(2)(C), added pars. (15) to (17). ## § 513: Unrelated trade or business - § 513(a)(2): Pub. L. 91–172, § 121(b)(4), inserted reference to local associations of employees described in section 501(c)(4) of this title and organized before May 27, 1969. - § 513(c): Pub. L. 91–172, § 121(c), substituted “Advertising, etc., activities” for “Special rule for certain publishing businesses”, in heading, and, in text, substituted provisions extending definition of trade or business to include any activity carried on for the production of income from the sale of goods or the performance of services, for provisions referring to publishing businesses carried on by an organization during a taxable year beginning before Jan. 1, 1953. ## § 514: Unrelated debt-financed income - § 514(a): Pub. L. 91–172, § 121(d)(1), substituted “Unrelated debt-financed income” for “Business leases” in heading and substituted in text material covering unrelated debt-financed income and deductions for material covering business lease rents and deductions. - § 514(b), § 514(c), § 514(d), § 514(e): Pub. L. 91–172, § 121(d)(1), (3)(A), added subsecs. (b), (c), (d) and (e). Former subsecs. (b), (c), and (d) redesignated (f), (g), and (h), respectively. - § 514(f): Pub. L. 91–172, § 121(d)(3)(A), (B), redesignated subsec. (b) as subsec. (f), and, in par. (1) of subsec. (f) as so redesignated, substituted reference to subsec. (g) for reference to subsec. (c). - § 514(g), § 514: Pub. L. 91–172, § 121(d)(3)(A), redesignated subsecs. (c) and (d) as (g) and (h), respectively. ## § 535: Accumulated taxable income - § 535(b)(6): Pub. L. 91–172, § 512(f)(5), substituted “capital loss carryback or carryover” for “capital loss carryover” and “capital loss carryback and carryover” for “capital loss carryover” in subpar. (B). - § 535(b)(7): Pub. L. 91–172, § 512(f)(6), substituted “Capital loss” for “Capital loss carryover” in heading and “capital loss carryback or carryover” for “capital loss carryover” in text. - § 535(c)(5): Pub. L. 91–172, § 401(b)(2)(C), substituted “section 1551, and for limitation on such credit in the case of certain controlled corporations, see sections 1561 and 1564” for “section 1551”. ## § 537: Reasonable needs of the business - § 537: Pub. L. 91–172 designated existing provisions as subsec. (a)(1) and added subsecs. (a)(2), (3) and (b). ## § 542: Definition of personal holding company - § 542(a)(2): Pub. L. 91–172 substituted “section 401(a), 501(c)(17), or 509(a)” for “section 503(b)” in the list of sections that contain the description of organizations that may be considered as individuals for the purpose of establishing stock ownership, and struck out provisions which would have kept an organization or trust created before July 1, 1950, from being so designated if it had been denied exemption under section 504 or an unlimited charitable deduction under section 681(c) of this title. ## § 545: Undistributed personal holding company income - § 545(b)(2): Pub. L. 91–172 substituted “section 170(b)(1)(A), (B), and (D)”, “section 170(b)(2) and (d)(1)” for “section 170(b)(1)(A) and (B)” and “section 170(b)(2) and (5)”, respectively, in provisions of first sentence setting out the sections appropriate to the computation of the deduction, and in provisions of second sentence describing applicability of terms for purposes of this paragraph, substituted “contribution base” and “section 170(b)(2) and (d)(1)” for “adjusted gross income” and “the first sentence of section 170(b)(2) and (5),” respectively. ## § 563: Rules relating to dividends paid after close of taxable year - § 563(b)(2): Pub. L. 91–172 substituted “20 percent” for “10 percent”. ## § 582: Bad debts, losses, and gains with respect to securities held by financial institutions - § 582: Pub. L. 91–172, § 433(c), substituted “Bad debts, losses, and gains with respect to securities held by financial institutions” for “Bad debt and loss deduction with respect to securities held by banks” in section catchline. - § 582(c): Pub. L. 91–172, § 433(a), redesignated existing provisions as par. (1), inserted reference to sections 585, 586 and 593, and added pars. (2) and (3). ## § 585: Reserves for losses on loans of banks - Enacted 26 U.S.C. § 585. ## § 593: Reserves for losses on loans - § 593(b)(1)(A): Pub. L. 91–172, § 432(a)(1), inserted provisions for the method of computing the amount of the reasonable addition to the reserve for losses on nonqualifying loans. - § 593(b)(2): Pub. L. 91–172, § 432(a)(2), substituted a table of applicable percentages of the taxable income for each year up to 1979 and thereafter for the amount in excess of 60 percent over the amount referred to in former subsec. (b)(1)(A), transferred the remaining provisions of former subsec. (b)(2) to subpart (D), and added subpars. (B) to (E). - § 593(b)(3): Pub. L. 91–172, § 432(a)(2), substantially changed method of computation of the amount by conforming it to the method of determining the additions to the reserves for losses on loans of banks under section 585(b)(2). - § 593(b): Pub. L. 91–172, § 432(a)(2), changed method of computation of the amount by conforming it to the method of determining the additions to the reserves for losses on loans of banks under section 585(b)(3). - § 593(b): Pub. L. 91–172, § 432(a)(2), substituted provisions relating to determination of reserve for percentage method for provisions relating to limitation in case of certain domestic building and loan associations. - § 593(f): Pub. L. 91–172, § 432(b), excepted the application of par. (1) to any transaction to which section 381 of this title applied. ## § 613: Percentage depletion - § 613(b): Pub. L. 91–172, § 501(a), reduced the percentage depletion rate on oil and gas wells from 27½ percent to 22 percent, reduced to 22 percent other minerals formerly receiving percentage depletion at a rate of 23 percent, added molybdenum in the category of minerals subject to the 22 percent depletion rate, reduced to 14 percent the rate on minerals formerly receiving depletion at a 15 percent rate except in the case of domestic gold, silver, oil shale, copper, and iron ore, and inserted provision that for percentage depletion purposes, minerals other than sodium chloride, extracted from brine pumped from a saline perennial lake within the United States are not to be considered minerals from an inexhaustible source. - § 613(c)(4)(H), § 613(c)(4)(I): Pub. L. 91–172, § 502(a), added subpar. (H) and redesignated former subpar. (H) as (I). ## § 617: Deduction and recapture of certain mining exploration expenditures - § 617: Pub. L. 91–172, § 504(b)(1), substituted “Deduction and recapture of certain mining exploration expenditures” for “Additional exploration expenditures in the case of domestic mining” in heading. - § 617(a)(1): Pub. L. 91–172, § 504(b)(2), struck out reference to United States, the Outer Continental Shelf and the Outer Continental Shelf Lands Act from general rule dealing with allowance of deductions for expenditures in ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral. - § 617(h): Pub. L. 91–172, § 504(b)(3), substituted provisions imposing limitations on the operation of this section for provision making cross reference to subsecs. (f) and (g) of section 615. ## § 636: Income tax treatment of mineral production payments - Enacted 26 U.S.C. § 636. ## § 638: Continental shelf areas - Enacted 26 U.S.C. § 638. ## § 641: Imposition of tax - § 641(a): Pub. L. 91–172 substituted “The tax imposed by section 1(d)” for “The taxes imposed by this chapter on individuals”. ## § 642: Special rules for credits and deductions - § 642(c): Pub. L. 91–172, § 201(b), designated existing provisions, with minor changes, as par. (1) and added pars. (2) to (6). - § 642(f): Pub. L. 91–172, § 704(b)(2), struck out reference to emergency or grain storage facilities both in heading and in text, and inserted reference to sections 184 and 187 in text. ## § 663: Special rules applicable to sections 661 and 662 - § 663(a)(2): Pub. L. 91–172, § 101(j)(17), substituted “sections 508(d), 681, and 4948(c)(4)” for “section 681”. - § 663(b)(2): Pub. L. 91–172, § 331(b), incorporated existing provisions of subpar. (C) of former first sentence making subsec. (b) applicable only to a trust where the fiduciary elected to have the subsec. apply and part of former second sentence making the election applicable in accordance with prescribed regulations; substituted provisions for regulations to spell out manner and time of election for part of former second sentence requiring the election to be made not later than the time prescribed by law for filing the return for the year, including any extension; and omitted: subpars. (A) and (B) of former first sentence which had provided for application of subsec. (b) only to a trust “(A) which was in existence prior to January 1, 1954” and “(B) which, under the terms of its governing instrument, may not distribute in any taxable year amounts in excess of the income of the preceding taxable year”; part of former second sentence which required the election to be made for first taxable year to which this part is applicable; and third sentence that “If such election is made with respect to a taxable year, this subsection shall apply to all amounts properly paid or credited within the first 65 days of all subsequent taxable years of such trust.” ## § 664: Charitable remainder trusts - Enacted 26 U.S.C. § 664. ## § 665: Definitions applicable to subpart D - § 665(a)(2): Pub. L. 91–172 inserted “attributable to such distributable net income” after “on the trust”. - § 665(b): Pub. L. 91–172 substituted “Accumulation distribution” for “Accumulation distributions of trusts other than certain foreign trusts” in heading, combined existing provisions of subsecs. (b) and (c) defining “accumulation distribution” in the case of a trust (other than a foreign trust created by a United States person) and of a foreign trust created by a United States person, respectively, in provisions now designated as pars. (1) and (2), deleting “the amount (if in excess of $2,000)” before “by which” in introductory text and inserting “(but not below zero)” in par. (2), and deleted second sentence providing that for purposes of this subsection, the amount specified in par. (2) of section 661(a) shall be determined without regard to section 666 and excepting from “accumulation distributions”: accumulations before birth or attainment of age 21; distributions for emergency needs; distributions, where beneficiary attained specified age or ages and there were not more than 4 distributions, at intervals of 4 or more years; and final distribution of trust was made more than 9 years after date of last transfer to the trust. - § 665(c): Pub. L. 91–172 substituted “Special rule applicable to distributions by certain foreign trusts” for “Accumulation distribution of certain foreign trusts” in heading, inserted introductory phrase “For purposes of this subpart”, reenacted provisions of former third sentence as the subsection, struck out first sentence which defined in the case of a foreign trust created by a United States person the term “accumulation distribution”, (see subsec. (b) of this section), and deleted second sentence which stated that “For purposes of this subsection, the amount specified in paragraph (2) of section 661(a) shall be determined without regard to section 666.” - § 665(d): Pub. L. 91–172 substituted “taxable year of the trust” for “taxable year on the trust”, “allocable to the undistributed portions of distributable net income and gains to excess of losses from sales or exchanges of capital assets” for “allocable to the undistributed portion of the distributable net income”, and “reduced by any amount of such taxes deemed distributed under section 666(b) and (c) or 669(d) and (e) to any beneficiary” for “reduced by any amount of such taxes allowed, under sections 667 and 668, as a credit to any beneficiary on account of any accumulation distribution determined for any taxable year”. - § 665(e): Pub. L. 91–172 substituted provisions of first sentence contained in pars. 1(A) to (C) and (2) for prior first sentence which read “For purposes of this subpart, the term ‘preceding taxable year’ does not include any taxable year of the trust to which this part does not apply” and reenacted provisions of second sentence. - § 665: Pub. L. 91–172 added subsecs. (f) and (g). ## § 666: Accumulation distribution allocated to preceding years - § 666(a): Pub. L. 91–172 substituted in first sentence “In the case of a trust which is subject to subpart (C)” for “In the case of a trust (other than a foreign trust created by a United States person) which for a taxable year beginning after December 31, 1953, is subject to subpart (C)”, “for a taxable year” for “for such taxable year”, and “undistributed net income for all earlier preceding taxable years” for “undistributed net incomes for any taxable years intervening between the taxable year with respect to which the accumulation distribution is determined and such preceding taxable year” and in second sentence “for such” for “of such”, inserted in first sentence “, commencing with the earliest of such years,” after “preceding taxable years”, struck out “5” before “preceding taxable years” in first and third sentences and last sentence which read as follows: “In the case of a foreign trust created by a United States person, this subsection shall apply to the preceding taxable years of the trust without regard to any provision of the preceding sentences which would (but for this sentence) limit its application to the 5 preceding taxable years.” - § 666(b): Pub. L. 91–172 inserted “attributable to the undistributed net income” after “taxable year” in second sentence and “attributable to such undistributed net income” before “shall be computed” in third sentence. - § 666(c): Pub. L. 91–172 inserted “attributable to the undistributed net income” before “multiplied by the ratio” in second sentence and “attributable to such undistributed net income” before “shall be computed” in third sentence. - § 666(d): Pub. L. 91–172 added subsec. (d). ## § 667: Treatment of amounts deemed distributed by trust in preceding years - § 667(a): Pub. L. 91–172 incorporated existing provisions of first sentence in provisions designated as subsec. (a), included distributions made under section 669 of this title, and struck out provisions for credit of taxes imposed on the trust against tax of beneficiary. See subsec. (b) of this section. - § 667(b): Pub. L. 91–172 incorporated provision of first sentence for credit of taxes imposed on the trust against tax of beneficiary, and provided for interest free credit and method of computation of its amount. The second sentence had provided that the amount of taxes which may not be refunded or credited to the trust shall be an amount equal to the excess of (1) the taxes imposed on the trust for any preceding taxable year (computed without regard to the accumulation distribution for the taxable year) over (2) the amount of taxes for such preceding taxable year imposed on the undistributed portion of distributable net income of the trust for such preceding taxable year after the application of this subpart on account of the accumulation distribution determined for such taxable year. ## § 673: Reversionary interests - § 673(b): Pub. L. 91–172 struck out provisions relating to trusts where the income was payable to a charitable beneficiary for at least a two-year period. ## § 677: Income for benefit of grantor - § 677(a)(1), § 677(a)(2), § 677(a)(3): Pub. L. 91–172, § 332(a)(1), inserted “or the grantor’s spouse” after “the grantor” in pars. (1), (2), and (3). - § 677(b): Pub. L. 91–172, § 332(a)(2), inserted “(other than the grantor’s spouse)” after “beneficiary”. ## § 681: Limitation on charitable deduction - § 681(a): Pub. L. 91–172, § 121(d)(2)(B), substituted reference to certain property acquired with borrowed funds for reference to certain leases. - § 681(b): Pub. L. 91–172, § 101(j)(18), (19), redesignated subsec. (d) as (b) and substituted “sections 518(d) and 4948(c)(4)” for “section 503(e)”. Former subsec. (b), dealing generally with the operation of trusts, was struck out. - § 681: Pub. L. 91–172, § 101(j)(18), struck out subsec. (c) dealing with accumulated income. - § 681: Pub. L. 91–172, § 101(j)(19), redesignated subsec. (d) as (b). ## § 703: Partnership computations - § 703(b): Pub. L. 91–172 substituted “(relating to pre-1970 exploration expenditures) or under section 617 (relating to deduction and recapture of certain mining exploration expenditures)” for “(relating to exploration expenditures) or under section 617 (relating to additional exploration expenditures in the case of domestic mining)”. ## § 751: Unrealized receivables and inventory items - § 751(c): Pub. L. 91–172, in second sentence, substituted “section 1250 property (as defined in section 1250(c)), farm recapture property (as defined in section 1251(e)(1)), and farm land (as defined in section 1252(a))”, and “1250(a), 1251(c), or 1252(a)”, for “and section 1250 property (as defined in section 1250(c))” and “1250(a)”, respectively. ## § 851: Definition of regulated investment company - § 851(f): Pub. L. 91–172 added subsec. (f). ## § 852: Taxation of regulated investment companies and their shareholders - § 852(b)(3)(A): Pub. L. 91–172, § 511(c)(2)(A), substituted “determined as provided in section 1201(a), on” for “of 25 percent of”. - § 852(b)(3)(C): Pub. L. 91–172, § 511(c)(2)(B), inserted provision requiring for the purposes of the deduction for capital gains dividends paid the deduction shall, in the case of a taxable year beginning before Jan. 1, 1975, first be made from the amount subject to tax in accordance with section 1201(a)(1)(B), to the extent thereof, and then from the amount subject to tax in accordance with section 1201(a)(1)(A). - § 852(b)(3)(D): Pub. L. 91–172, § 511(c)(2)(C), (D), struck out “of 25 percent” in cl. (ii), substituted reference in cl. (iii) to the increase of the adjusted basis of shares in the hands of the shareholder, with respect to the amounts required by this subpar., by 75 percent of so much of such amounts as equals the amount subject to tax in accordance with section 1201(a)(1)(A) and by 70 percent (72 percent in the case of a taxable year beginning after Dec. 31, 1969, and before Jan. 1, 1971) of so much of such amounts as equals the amount subject to tax in accordance with section 1201(a)(1)(B) or (2), for reference to the increase of the adjusted basis of shares in the hand of the shareholder by 75 percent of the amounts required by this subpar. to be included in computing his long-term capital gains. ## § 857: Taxation of real estate investment trusts and their beneficiaries - § 857(b)(3)(A): Pub. L. 91–172, § 511(c)(3)(A), substituted “determined as provided in section 1201(a), on” for “of 25 percent of.” - § 857(b)(3)(C): Pub. L. 91–172, § 511(c)(3)(B), inserted provision requiring for the purposes of the deduction for capital gains dividends paid, in the case of a taxable year beginning before Jan. 1, 1975, the deduction for dividends paid shall first be made from the amount subject to tax in accordance with section 1201(a)(1)(B), to the extent thereof, and then from the amount subject to tax in accordance with section 1201(a)(1)(A). ## § 861: Income from sources within the United States - § 861(a)(1): Pub. L. 91–172, § 435(a)(1), struck out “after December 31, 1972,” after “interest paid or credited” in parenthetical after “interest received from a foreign corporation”. - § 861(c): Pub. L. 91–172, § 435(a)(2), substituted “1975” for “1972”. ## § 878: Foreign educational, charitable, and certain other exempt organizations - § 878: Pub. L. 91–172 substituted provisions requiring reference to organizations in sections 512(a) and 4948 for provisions requiring reference to trusts in section 512(a), and struck out reference to unrelated business income. ## § 885: Cross references - § 885: Pub. L. 91–172 redesignated pars. (2) to (6) as (1) to (5), respectively. Former par. (1), referring to section 512(a), was struck out. ## § 901: Taxes of foreign countries and of possessions of United States - § 901(a): Pub. L. 91–172, § 301(b)(9), inserted “against the tax imposed by section 56 (relating to minimum tax for tax preferences),” after “not be allowed” in last sentence. - § 901(e), § 901(f): Pub. L. 91–172, § 506(a), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 904: Limitation on credit - § 904(b)(1): Pub. L. 91–172, § 506(b)(1), substituted “(A) with the consent of the Secretary or his delegate with respect to any taxable year or (B) for the taxpayer’s first taxable year beginning after December 31, 1969” for “with the consent of the Secretary or his delegate with respect to any taxable year”. - § 904(b)(2): Pub. L. 91–172, § 506(b)(2), substituted “Except in a case to which paragraph (1)(B) applies, if the taxpayer” for “If a taxpayer”. ## § 954: Foreign base company income - § 954(b)(4): Pub. L. 91–172 inserted reference to a foreign corporation which is an acquired corporation, and made the effecting of a transaction giving rise to foreign base income through the controlled foreign corporation subject to the Secretary’s power to disallow inclusion of any item of such income where such inclusion will have one of the effects prescribed by this section. ## § 964: Miscellaneous provisions - § 964(a): Pub. L. 91–172 inserted reference to the exception provided for in section 312(m)(3). ## § 1001: Determination of amount of and recognition of gain or loss - § 1001(e): Pub. L. 91–172, § 516(a), added subsec. (e). - § 1001: Pub. L. 91–172, § 231(c)(2), added subsec. (f). ## § 1011: Adjusted basis for determining gain or loss - § 1011: Pub. L. 91–172 redesignated existing provisions as subsec. (a) and added subsec. (b). ## § 1016: Adjustments to basis - § 1016(a)(22): Pub. L. 91–172, § 516(c)(2)(B), added par. (22). - § 1016(a)(10): Pub. L. 91–172, § 504(c)(4), limited exploration expenditures referred to in this par. to pre-1970 exploration expenditures. - § 1016(c): Pub. L. 91–172, § 231(c)(3), redesignated existing provisions as par. (2) and added par. (1). ## § 1031: Exchange of real property held for productive use or investment - § 1031(e): Pub. L. 91–172 added subsec. (e). ## § 1033: Involuntary conversions - § 1033(a): Pub. L. 91–172 substituted “2 years” for “one year”. ## § 1211: Limitation on capital losses - § 1211(b): Pub. L. 91–172 provided for only 50 percent of an individual’s long-term capital losses to be offset against his ordinary income up to the $1,000 limit although short-term capital losses continue to be fully deductible within the $1,000 limit and the deduction of capital losses against ordinary income for married persons filing separate returns to be limited to $500 for each spouse rather than the $1,000 formerly allowed. ## § 1212: Capital loss carrybacks and carryovers - § 1212: Pub. L. 91–172, § 512(f)(1), substituted “carrybacks and carryovers” for “carryover” in section catchline. - § 1212(a)(1): Pub. L. 91–172, § 512(a), provided for a 3-year capital loss carryback for corporations, not available for foreign expropriation capital losses for which a special 10-year carryforward is presently available, in addition to the 5–year capital loss carryforward presently allowed corporations, to the extent the carryback of such loss does not increase or produce a net operating loss for the taxable year to which it is being carried back. - § 1212(a)(3), § 1212(a)(4): Pub. L. 91–172, § 512(b), added pars. (3) and (4). - § 1212(b): Pub. L. 91–172, § 513(b), struck out reference to Dec. 31, 1963, struck out determination of a short-term capital gain as an amount equal to the excess allowed for the taxable year under former section 1211(b) over the gains from sales or exchanges of capital assets, struck out par. (2) treating as a short-term capital loss in the first taxable year beginning after Dec. 31, 1963, any amount which is treated as a short-term capital loss in such year under this subchapter as in effect immediately before the enactment of the Revenue Act of 1964, added new par. (2) dealing with special rules for determining the excesses referred to in par. (1)(A) and par. (1)(B) and added par. (3). ## § 1221: Capital asset defined - § 1221: Pub. L. 91–172 inserted reference to a letter or memorandum, added subpar. (B) dealing with a letter or memorandum, and redesignated former subpar. (B) as (C). ## § 1222: Other terms relating to capital gains and losses - § 1222(9): Pub. L. 91–172, § 513(c), substituted “The” for “In the case of a corporation, the”. - § 1222(11): Pub. L. 91–172, § 511(a), added par. (11). ## § 1231: Property used in the trade or business and involuntary conversions - § 1231(a): Pub. L. 91–172, § 516(b), provided that casualty (or theft) losses with respect to depreciable property and real estate used in trade or business and capital assets held for the production of income as well as personal assets are to be consolidated with casualty (or theft) gains with respect to this type of property and if the casualty losses exceed the casualty gains, the net loss is treated as an ordinary loss without regard to whether there may be noncasualty gains under this section, but, if the casualty gains exceed the casualty losses, the net gain is treated as a gain under this section and must be consolidated with other gains and losses under this section. - § 1231(b)(1)(C): Pub. L. 91–172, § 514(b)(2), inserted reference to a letter or memorandum. - § 1231(b)(3): Pub. L. 91–172, § 212(b)(1), redesignated existing provisions as subpar. (B) and added subpar. (A). ## § 1243: Loss of small business investment company - § 1243(1): Pub. L. 91–172 substituted “stock received pursuant to the conversion privilege of convertible debentures” for “convertible debentures (including stock received pursuant to the conversion privilege)”. ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a)(2): Pub. L. 91–172, §§ 212(a)(1), 704(b)(4)(A), (B), added subpar. (C) and inserted references to sections 169, 185, and 187, and added subpar. (D). - § 1245(a)(3): Pub. L. 91–172, §§ 212(a)(2), 704(b)(4)(C)–(F), struck out “(other than livestock)” after “means any property” and substituted “section 167 (or subject to the allowance of amortization provided in section 185)” for “section 167” and added subpar. (D). ## § 1248: Gain from certain sales or exchanges of stock in certain foreign corporations - § 1248(c)(1): Pub. L. 91–172 inserted reference to the exception provided for in section 312(m)(3). ## § 1250: Gain from dispositions of certain depreciable realty - § 1250(a): Pub. L. 91–172, § 521(b), modified the recapture rules pertaining to residential housing by allowing a 1 percent per month reduction in the amount to be recaptured as ordinary income after the property has been held for 100 full months, with other real property remaining subject to full recapture, applied the existing recapture rules where the sale of property was subject to a binding contract in existence prior to July 25, 1969, provided that changes in the recapture rules are not to apply in federally assisted projects (such as programs under section 221(d)(3) or 236 of the National Housing Act) or to other publicly assisted housing programs under which the return to the investor is limited on a comparable basis, thereby rendering these projects subject to a recapture of the depreciation in full if the sale occurs in the first 12 months and for a phaseout of the recapture of the excess of accelerated over straight-line depreciation after 20 months, the recapture being reduced at the rate of 1 percent per month until 120 months after which no recapture applies, with such recapture rules to continue to apply only with respect to such property constructed, reconstructed, or acquired before Jan. 1, 1975, and applied new recapture rules to depreciation attributable to periods after Dec. 31, 1969. - § 1250(b)(4): Pub. L. 91–172, § 512(c), added par. (4). - § 1250(b)(3): Pub. L. 91–172, § 704(b)(5), inserted reference to sections 169 and 185. - § 1250(d): Pub. L. 91–172, §§ 521(e)(1), 910(b)(1), substituted “subsection (a)” for “subsection (a)(1)” wherever it appears and added par. (8). - § 1250(e): Pub. L. 91–172, § 910(b)(2), added par. (4). - § 1250(f)(1): Pub. L. 91–172, § 521(e)(2)(A), substituted “subsection (a)” for “subsection (a)(1)”. - § 1250(f)(2): Pub. L. 91–172, § 521(e)(2)(B), redesignated subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A) and, in cls. (i) and (ii) as so redesignated, inserted reference to depreciation attributable to periods after Dec. 31, 1969, and added subpar. (B). - § 1250(g), § 1250(h), § 1250: Pub. L. 91–172, § 910(b)(3), added subsec. (g) and redesignated former subsecs. (g) and (h) as (h) and (i), respectively. ## § 1252: Gain from disposition of farm land - Enacted 26 U.S.C. § 1252. ## § 1253: Transfers of franchises, trademarks, and trade names - Enacted 26 U.S.C. § 1253. ## § 1314: Amount and method of adjustment - § 1314(a): Pub. L. 91–172, § 512(f)(7), substituted “capital loss carryback or carryover” for “capital loss carryover”. - § 1314(b): Pub. L. 91–172, § 512(f)(8), inserted reference to net capital loss. ## § 1382: Taxable income of cooperatives - § 1382(b)(3): Pub. L. 91–172 expanded the category of per-unit retain allocations that may not be taken into account in determining the taxable income of an organization, by including per-unit retain allocations paid for in money or other property (except nonqualified per-unit retain certificates as defined in section 1388(i) of this section). ## § 1388: Definitions; special rules - § 1388(f): Pub. L. 91–172 struck out reference to allocations made by organizations other than by payment of money or other property except per-unit retain certificates. ## § 1441: Withholding of tax on nonresident aliens - § 1441(f): Pub. L. 91–172 added subsec. (f). ## § 1443: Foreign tax-exempt organizations - § 1443: Pub. L. 91–172, § 101(j)(22), designated existing provisions as subsec. (a) and added subsec. (b). - § 1443(a): Pub. L. 91–172, § 121(d)(2)(C), substituted “income” for “rents” after “this chapter shall apply to”. ## § 1504: Definitions - § 1504(e): Pub. L. 91–172 added subsec. (e). ## § 1561: Limitation on accumulated earnings credit in the case of certain controlled corporations - § 1561: Pub. L. 91–172 provided, with respect to taxable years beginning after Dec. 31, 1974, that a controlled group of corporations is limited to one $25,000 surtax exemption under section 11(d), one $100,000 amount for purposes of computing the accumulated earnings credit under section 535(c)(2) and (3), and one $25,000 amount for purposes of computing the limitation on the small business deduction of life insurance companies under sections 804(a)(4) and 809(d)(10). ## § 1563: Definitions and special rules - § 1563(a)(2): Pub. L. 91–172, § 401(c), redesignated existing provisions with minor changes as par. (A) and added par. (B). - § 1563(c)(2)(A)(iv): Pub. L. 91–172, § 401(d)(1), added cl. (iv). - § 1563(c)(2)(B): Pub. L. 91–172, § 401(d)(2), substituted “5 or fewer persons who are individuals, estates, or trusts (referred to in this subparagraph as ‘common owners’) own” for “a person who is an individual, estate, or trust (referred to in this paragraph as ‘common owner’) owns” and in cl. (ii), substituted “any of such common owners”, “any of the common owners” for “such common owner” and “the common owner”, respectively and added cl. (iii). ## § 2039: Annuities - § 2039: Pub. L. 91–172 substituted “section 170(b)(1)(A)(ii) or (vi), or which is a religious organization (other than a trust),” for “section 503(b) (1), (2), or (3),”. ## § 2055: Transfers for public, charitable, and religious uses - § 2055(a)(2): Pub. L. 91–172, § 201(d)(4)(A) (i), inserted non-participation and non-intervention in political campaigns as an additional qualification. - § 2055(a)(3): Pub. L. 91–172, § 201(d)(4)(A)(ii), inserted non-participation and non-intervention in political campaigns as an additional qualification. - § 2055(e): Pub. L. 91–172, § 201(d)(1), substituted substantive provisions for simple reference to sections 503 and 681 of this title in which such substantive provisions were formerly set out. ## § 2104: Property within the United States - § 2104(c): Pub. L. 91–172 substituted “December 31, 1969” for “December 31, 1972” in provisions deeming deposit with a domestic branch of a foreign corporation if such branch is engaged in the commercial banking business to be property within the United States. ## § 2106: Taxable estate - § 2106(a)(2)(A)(ii), § 2106(a)(2)(A)(iii): Pub. L. 91–172, § 201(d)(4)(B), inserted non-participation and non-intervention in political campaigns as an additional qualification. - § 2106(a)(2)(E): Pub. L. 91–172, § 201(d)(2), substituted substantive provisions for simple reference to sections 503 and 681 of this title in which such substantive provisions were formerly set out. ## § 2522: Charitable and similar gifts - § 2522(a)(2), § 2522(b)(2), § 2522(b)(3): Pub. L. 91–172, § 201(d)(4)(C), (D), inserted non-participation and non-intervention in political campaigns as an additional qualification. - § 2522(c): Pub. L. 91–172, § 201(d)(3), substituted substantive provisions for simple reference to sections 503 and 681 in which such substantive provisions were formerly set out. ## § 3121: Definitions - § 3121(k): Pub. L. 91–172, § 943(c)(1)–(3), inserted “or pay tax” after “tax return”. ## § 3402: Income tax collected at source - § 3402(a)(1): Pub. L. 91–172, § 805(a), (b)(2), substituted new sets of tables 1 to 8 for application to wages paid after Dec. 31, 1969, and before July 1, 1970, and after June 30, 1970, and before January 1, 1972, for the tables applicable to wages paid before July 13, 1968, and after Dec. 31, 1969. - § 3402(a)(2): Pub. L. 91–172, § 805(a), substituted a set of tables 1 to 8 for application to wages paid after June 30, 1970, and before Jan. 1, 1971, for the tables applicable to wages paid after June 30, 1970, and before Jan. 1, 1970. - § 3402(a): Pub. L. 91–172, § 805(a), added sets of tables applicable, respectively, to wages paid after Dec. 31, 1970, and before Jan. 1, 1972, after Dec. 31, 1971, and before Jan. 1, 1973, and after Dec. 31, 1972. - § 3402(b)(1): Pub. L. 91–172, § 805(b)(1)–(4), revised withholding rates effective with respect to wages paid after Dec. 31, 1969, and before July 1, 1970, for the period after June 30, 1970, and before Jan. 1, 1972, during 1972, and after 1972. - § 3402(c)(1): Pub. L. 91–172, § 805(c)(1), substituted provisions authorizing employer to deduct and withhold tax determinable according to tables prescribed by the Secretary or his delegate for provisions under which the employer was authorized to deduct and withhold tax only according to tables set out. - § 3402(c)(6): Pub. L. 91–172, § 805(c)(2), substituted provisions for determination of amount deductible according to tables prescribed by the Secretary or his delegate and for computation of wages and amounts of income tax after Dec. 31, 1969, for provisions for determination of such wages and amounts of income tax after July 13, 1968, and before Jan. 1, 1970. - § 3402(h): Pub. L. 91–172, § 805(d), redesignated existing pars. (1) to (3) as subpars. (A) to (C) of par. (1), and added pars. (2) to (4). - § 3402(m)(1): Pub. L. 91–172, § 805(e)(2), substituted $750 for $700 in the material preceding subpar. (A) and in subpar. (B) substituted 15 per cent for 10 per cent of the first $7,500 and 17 per cent of remainder of the estimated wages. - § 3402(m)(2): Pub. L. 91–172, § 805(e)(2), inserted amount of standard deduction as an alternative limit in cl. (i), and substituted the determinable additional deductions for provisions referring to an employee who did not show such deductions on his return. - § 3402(m)(2): Pub. L. 91–172, § 805(e)(2), struck out limit on aggregate amount. - § 3402(m)(2): Pub. L. 91–172, § 805(e)(1), (2), added subpar. (C). Former subpar. (C) redesignated (D) - § 3402(n): Pub. L. 91–172, § 805(f)(1), added subsec. (n). - § 3402(o), § 3402(p): Pub. L. 91–172, § 805(g), added subsecs. (o) and (p). ## § 4216: Definition of price - § 4216(b)(3), § 4216(b)(4): Pub. L. 91–172 added pars. (3) and (4). ## § 4221: Certain tax-free sales - § 4221(d)(5): Pub. L. 91–172 substituted “section 170(b)(1)(A)(ii)” for “section 503(b)(2)”. ## § 4251: Imposition of tax - § 4251(a)(2): Pub. L. 91–172, § 702(b)(1), increased rate of tax on amounts paid for communication services from 5 to 10 percent during 1970, from 3 to 5 percent during 1971, from 1 to 3 percent during 1972, and imposed a 1 percent tax on amounts paid for communication services during 1973. - § 4251(b): Pub. L. 91–172, § 702(b)(2), substituted “January 1, 1974” for “January 1, 1973”. ## § 4253: Exemptions - § 4253(h): Pub. L. 91–172 substituted “section 170(b)(1)(A)(iii)” for “section 503(b)(5)”. ## § 4940: Excise tax based on investment income - Enacted 26 U.S.C. § 4940. ## § 4941: Taxes on self-dealing - Enacted 26 U.S.C. § 4941. ## § 4942: Taxes on failure to distribute income - Enacted 26 U.S.C. § 4942. ## § 4943: Taxes on excess business holdings - Enacted 26 U.S.C. § 4943. ## § 4944: Taxes on investments which jeopardize charitable purpose - Enacted 26 U.S.C. § 4944. ## § 4945: Taxes on taxable expenditures - Enacted 26 U.S.C. § 4945. ## § 4946: Definitions and special rules - Enacted 26 U.S.C. § 4946. ## § 4947: Application of taxes to certain nonexempt trusts - Enacted 26 U.S.C. § 4947. ## § 4948: Application of taxes and denial of exemption with respect to certain foreign organizations - Enacted 26 U.S.C. § 4948. ## § 5214: Withdrawal of distilled spirits from bonded premises free of tax or without payment of tax - § 5214(a)(3)(A): Pub. L. 91–172 substituted “section 170(b)(1)(A)(ii)” for “section 503(b)(2)”. ## § 5684: Penalties relating to the payment and collection of liquor taxes - § 5684: Pub. L. 91–172 inserted “or pay tax” after “tax return”. ## § 6012: Persons required to make returns of income - § 6012(a)(1): Pub. L. 91–172, § 941(a), (d), struck out after “$600 or more”, “(except that any individual who has attained the age of 65 before the close of his taxable year shall be required to make a return only if he has for the taxable year a gross income of $1,200 or more)”, designated remaining introductory text as subpar. (A), inserted remainder of subpars. (A) and (B), applicable to taxable years beginning after Dec. 31, 1969; and substituted “$750”, “$1,750”, and “$2,500” for “$600”, “$1,700”, and “$2,300” wherever appearing, effective with respect to taxable years beginning after Dec. 31, 1972. ## § 6013: Joint returns of income tax by husband and wife - § 6013(b)(3)(A): Pub. L. 91–172, § 801(a)(2), (b)(2), (c)(2), (d)(2), increased the exemptions wherever appearing from $600 and $1,200 to $625 and $1,250, respectively with respect to taxable years ending Dec. 31, 1970, and to $650 and $1,300, respectively, with respect to taxable years beginning after Dec. 31, 1970, and before Jan. 1, 1972, to $700 and $1,400, respectively, with respect to taxable years beginning after Dec. 31, 1971, and before Jan. 1, 1973, and to $750 and $1,500, respectively, with respect to taxable years beginning after Dec. 31, 1972. ## § 6014: Income tax return—tax not computed by taxpayer - § 6014(a): Pub. L. 91–172, § 803(d)(1), raised the individual gross income limit of $5,000 to $10,000 for exercising the option to pay the tax under section 3 of this title, and struck out provisions relating to heads of household, surviving spouses and married individuals filing separate returns. - § 6014(b): Pub. L. 91–172, § 942(a), substituted provisions authorizing the Secretary to promulgate regulations to compute the tax in cases where the gross income is $10,000 or more, where the gross income from sources other than wages on which the tax has been withheld at the source is more than $100, where the taxpayer is entitled to a credit under section 37 of this title, or where the taxpayer does not elect the standard deduction, for provisions authorizing the computation of the tax in cases where the gross income is $5,000 but not more than $5,200, or where the gross income from sources other than wages on which the tax has been withheld at the source is more than $100, but not more than $200. ## § 6033: Returns by exempt organizations - § 6033(a): Pub. L. 91–172, § 101(d)(1), added churches, their integrated auxiliaries, conventions or associations of churches, religious activities of religious orders, and organizations that normally have gross yearly receipts of not more than $5,000, to list of exempt organizations that were excepted from filing information returns, gave the Secretary or his delegate discretion to so except any such organization, and shortened list of educational organizations so excepted. - § 6033(b)(3): Pub. L. 91–172, § 101(d)(2)(A), struck out “out of income” after “its disbursements”. - § 6033(b)(4): Pub. L. 91–172, § 101(d)(2)(B), (j)(30), redesignated par. (7) as (4) and struck out “and” at end. Former par. (4), making accumulation of income within year as an item of information to be furnished, was struck out. - § 6033(b)(5): Pub. L. 91–172, § 101(d)(2)(B), (C), substituted total of contributions and gifts received during year and contributors’ names and addresses for aggregate accumulation of income at beginning of year as item of information to be furnished. - § 6033(b)(6): Pub. L. 91–172, § 101(d)(2)(B), (C), substituted names and addresses of foundation managers for disbursements out of principal in current and prior years as item of information to be furnished. - § 6033(b)(7): Pub. L. 91–172, § 101(d)(2)(B), (C), added par. (7) and redesignated former par. (7) as (4). - § 6033(b)(8): Pub. L. 91–172, § 101(d)(2)(B), struck out par. (8) which made total of contributions and gifts received during year as item of information to be furnished. - § 6033(c): Pub. L. 91–172, § 101(j)(31), inserted cross references to section 6043(b) and 6652(d). ## § 6034: Returns by certain trusts - § 6034(a): Pub. L. 91–172, § 101(j)(32), (33), inserted, in section catchline and in subsec. (a), reference to trusts described in section 4947(a), and, in par. (1), struck out provisions requiring the separate showing of the amount of deduction paid out, and the amount permanently set aside for charitable, etc., purposes. - § 6034: Pub. L. 91–172, § 101(j)(34), added subsec. (c). ## § 6043: Liquidating, etc., transactions - § 6043: Pub. L. 91–172 inserted references to termination and contraction in section catchline, designated existing provisions as subsec. (a), and added subsecs. (b) and (c). ## § 6049: Returns regarding payments of interest - § 6049(a)(1): Pub. L. 91–172, § 413(c), added subpar. (C). - § 6049(c): Pub. L. 91–172, § 413(d), further qualified requirement to furnish statement by reference to aggregate amount includible in gross income. ## § 6051: Receipts for employees - § 6051(a): Pub. L. 91–172 inserted “(determined without regard to subsection (n))” after “withhold a tax under section 3402” in introductory provisions. ## § 6104: Publicity of information required from certain exempt organizations and certain trusts - § 6104(b): Pub. L. 91–172, § 101(e)(1), (j)(36), inserted provision prohibiting disclosure by the Secretary or his delegate of the name or address of any contributor to any organization or trust other than a private foundation and inserted reference to section 6056. - § 6104(c), § 6104(d): Pub. L. 91–172, § 101(e)(2), (3), added subsecs. (c) and (d). ## § 6161: Extension of time for paying tax - § 6161(b): Pub. L. 91–172 inserted references to chapter 42. ## § 6201: Assessment authority - § 6201(d): Pub. L. 91–172 inserted reference to chapter 42 taxes. ## § 6211: Definition of a deficiency - § 6211(a): Pub. L. 91–172, § 101(f)(1), inserted references to excise taxes and chapter 42. - § 6211(b)(2): Pub. L. 91–172, § 101(j)(39), inserted reference to chapter 42. ## § 6212: Notice of deficiency - § 6212(a): Pub. L. 91–172, § 101(j)(40), inserted reference to chapter 42. - § 6212(b)(1): Pub. L. 91–172, § 101(j)(41), inserted reference to chapter 42 taxes in heading and text. - § 6212(c)(1): Pub. L. 91–172, § 101(f)(2), included section 4940 tax and chapter 42 tax (other than under section 4940), among the classes of taxes with respect to which the Secretary cannot determine additional deficiencies after the taxpayer has filed a petition for redetermination of any deficiency about which he has been notified. ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(a): Pub. L. 91–172, § 101(j)(42), inserted reference to chapter 42. - § 6213(e), § 6213(f): Pub. L. 91–172, § 101(f)(3), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 6214: Determinations by Tax Court - § 6214(a): Pub. L. 91–172, § 960(a), inserted reference to exception provided for in section 7463 of this title. - § 6214(c), § 6214(d): Pub. L. 91–172, § 101(j)(43), (44), added subsec. (c), redesignated former subsec. (c) as (d), and, in subsec. (d) as so redesignated, inserted reference to chapter 42. ## § 6334: Property exempt from levy - § 6334(a)(8): Pub. L. 91–172 added par. (8). ## § 6344: Cross references - § 6344(a)(1): Pub. L. 91–172 inserted reference to chapter 42. ## § 6401: Amounts treated as overpayments - § 6401(b): Pub. L. 91–172 struck out “under sections 31 and 39” after “Excessive credits” in heading and inserted in text reference to section 667(b) (relating to taxes paid by certain trusts). ## § 6411: Tentative carryback and refund adjustments - § 6411(a): Pub. L. 91–172, § 512(d)(1), (2), provided quick refund procedure, presently available in case of net operating loss carrybacks, to be made available in the case of the 3-year capital loss carryback, and substituted “net operating loss, net capital loss, or unused investment credit” for “net operating loss or unused investment credit” in par. (1). - § 6411(b): Pub. L. 91–172, § 512(d)(2), substituted “net operating loss, net capital loss, or unused investment credit” for “net operating loss or unused investment credit” wherever such term appears. - § 6411(c): Pub. L. 91–172, § 512(d)(2), substituted “net operating loss, net capital loss, or unused investment credit” for “net operating loss or unused investment credit”. ## § 6412: Floor stocks refunds - § 6412(a)(1): Pub. L. 91–172 struck out reference to Jan. 1, 1970, and inserted reference to Jan. 1, 1974. ## § 6501: Limitations on assessment and collection - § 6501(c)(7): Pub. L. 91–172, § 101(g)(2), added par. (7). - § 6501(e)(3): Pub. L. 91–172, § 101(g)(3), inserted provision excluding, in specified cases, chapter 42 taxes from these considered in determining the amount of taxes omitted from a return. - § 6501(h): Pub. L. 91–172, § 512(e)(1)(A)–(D), substituted “loss or capital loss carrybacks” for “loss carrybacks” in heading, “loss carryback or a capital loss carryback” for “loss carryback,” “operating loss or net capital loss which” for “operating loss which,” “assessed. In the case of a deficiency attributable to the application of a net operating loss carryback, such deficiency may be assessed” for “assessed, or” and “if later than the date prescribed by the preceding sentence” for “whichever is later”. - § 6501(j): Pub. L. 91–172, § 512(e)(1)(E), substituted “loss carryback or a capital loss carryback” for “loss carryback”. - § 6501(m): Pub. L. 91–172, § 512(e)(1)(F), substituted “net operating loss carryback, a capital loss carryback, or an investment credit carryback” for “net operating loss carryback or an investment credit carryback”. - § 6501(n): Pub. L. 91–172, § 101(g)(1), added subsec. (n). ## § 6503: Suspension of running of period of limitation - § 6503(a)(1): Pub. L. 91–172, § 101(j)(46), inserted reference to chapter 42 taxes. - § 6503(h), § 6503(i): Pub. L. 91–172, § 101(g)(4), added subsec. (h) and redesignated former subsec. (h) as (i). ## § 6504: Cross references - § 6504(8): Pub. L. 91–172 struck out par. (8). ## § 6511: Limitations on credit or refund - § 6511(d)(2): Pub. L. 91–172, § 512(e)(2)(A), substituted “loss or capital loss carrybacks” for “loss carrybacks” in heading. - § 6511(d)(2)(A): Pub. L. 91–172, § 512(e)(2)(B), (C), substituted “loss carryback or a capital loss carryback” for “loss carryback” and “operating loss or net capital loss which” for “operating loss which”. - § 6511(d)(2)(B)(i): Pub. L. 91–172, § 512(e)(2)(D), (E), substituted “loss carryback or a capital loss carryback” for “loss carryback” and inserted reference to short-term capital loss. - § 6511(d)(2)(B)(ii): Pub. L. 91–172, §§ 311(d)(3), 512(e)(2)(F), substituted references to section “1302(c)(1)” and “1302(c)(3)” for section “1302(e)(1)” and “1302(e)(3)”, respectively, and substituted “loss carryback or a capital loss carryback, as the case may be,” for “loss carryback”. - § 6511(d)(4)(A): Pub. L. 91–172, § 512(e)(2)(G), substituted “loss carryback or a capital loss carryback” for “loss carryback”. - § 6511(f), § 6511(g): Pub. L. 91–172, § 101(h), added subsec. (f) and redesignated former subsec. (f) as (g). ## § 6512: Limitations in case of petition to Tax Court - § 6512(a): Pub. L. 91–172, § 101(j)(47), inserted references to chapter 42 taxes. - § 6512(b)(1): Pub. L. 91–172, §§ 101(j)(48), 960(b), inserted reference to chapter 42 taxes and inserted reference to the exception to the Tax Court’s jurisdiction provided for in par. (2) and in section 7463 of this title. ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(d): Pub. L. 91–172, § 101(j)(49), inserted reference to chapter 42 both in subsec. heading and in text. - § 6601(e)(1): Pub. L. 91–172, § 512(e)(3)(A), (B), substituted “loss or capital loss carryback” for “loss carryback” in heading, and “net operating loss or net capital loss” for “net operating loss” wherever it appears in text. - § 6601(e)(2): Pub. L. 91–172, § 512(e)(3)(C), substituted “loss carryback or a capital loss carryback” for “loss carryback”. ## § 6611: Interest on overpayments - § 6611(f)(1): Pub. L. 91–172, § 512(e)(4)(A), (B), substituted “loss or capital loss carryback” for “loss carryback” in heading, and “net operating loss or net capital loss” for “net operating loss” wherever appearing in text. - § 6611(f)(2): Pub. L. 91–172, § 512(e)(4)(C), substituted “loss carryback or a capital loss carryback” for “loss carryback”. ## § 6651: Failure to file tax return or to pay tax - § 6651(a): Pub. L. 91–172 designated existing provisions as par. (1) and added pars. (2) and (3). - § 6651(b): Pub. L. 91–172 designated existing provisions as par. (1) and added pars. (2) and (3). - § 6651(c), § 6651(d): Pub. L. 91–172 added subsec. (c), redesignated former subsec. (c) as (d) and struck out reference to section 6016 of this title and provided that this section would not be applicable for failure to pay any estimated tax required under section 6153 or 6154 of this title. ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(d), § 6652(e): Pub. L. 91–172 added subsec. (d) and redesignated former subsec. (d) as (e). ## § 6653: Failure to pay stamp tax - § 6653: Pub. L. 91–172, § 101(j)(50), inserted reference to chapter 42 taxes in heading and text. - § 6653: Pub. L. 91–172, § 943(c)(6), inserted “or pay tax” after “such return”. ## § 6654: Failure by individual to pay estimated income tax - § 6654(f)(1): Pub. L. 91–172 inserted “(other than by section 56)” after “chapter 1”. ## § 6656: Failure to make deposit of taxes - § 6656(a): Pub. L. 91–172 substituted provisions imposing a penalty of five percent for the failure to deposit on the date prescribed any amount of tax imposed by this title, for provisions imposing a penalty of one percent of the amount of underpayment each month but not to exceed six percent in the aggregate. ## § 6677: Failure to file information with respect to certain foreign trusts - § 6677(b): Pub. L. 91–172 inserted reference to chapter 42 taxes. ## § 6679: Failure to file returns, etc., with respect to foreign corporations or foreign partnerships - § 6679(b): Pub. L. 91–172 inserted reference to chapter 42 taxes. ## § 6682: False information with respect to withholding - § 6682(b): Pub. L. 91–172 inserted reference to chapter 42 taxes. ## § 6684: Assessable penalties with respect to liability for tax under chapter 42 - Enacted 26 U.S.C. § 6684. ## § 6685: Assessable penalty with respect to public inspection requirements for certain tax-exempt organizations - Enacted 26 U.S.C. § 6685. ## § 7207: Fraudulent returns, statements, or other documents - § 7207: Pub. L. 91–172 substituted “sections 6047(b) or (c), 6056, or 6104(d)” for “section 6047(b) or (c)”. ## § 7422: Civil actions for refund - § 7422(e): Pub. L. 91–172, § 101(j)(56), inserted reference to chapter 42 taxes. - § 7422(g), § 7422(h): Pub. L. 91–172, § 101(i), added subsec. (g) and redesignated former subsec. (g) as (h). ## § 7441: Status - § 7441: Pub. L. 91–172 substituted provisions establishing Tax Court as a Constitutional court, and enumerating the members that comprise its bench, for provisions continuing the Board of Tax Appeals, known as the Tax Court, as an independent agency in the Executive Branch of Government and enumerating the members that comprise its bench. ## § 7443: Membership - § 7443(b): Pub. L. 91–172, § 952(a), provided that an individual may not be appointed a judge of the Tax Court after reaching age 65. - § 7443(c): Pub. L. 91–172, § 953, substituted provisions fixing salary of Tax Court judges at the same rate and same installments as District Court judges, for provisions that each judge of the Tax Court receive a salary of $30,000 per annum, to be paid in monthly installments. - § 7443(e): Pub. L. 91–172, § 952(b), substituted provisions that a term in office of any Tax Court judge would expire 15 years after he takes office, for provisions that a term in office of any Tax Court judge would expire 12 years after the expiration of the term for which his predecessor was appointed, and any judge appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed would be appointed only for the unexpired term of his predecessor. ## § 7447: Retirement - § 7447(a): Pub. L. 91–172, § 954(e)(1), struck out par. (4) which defined the term “Civil Service Retirement Act”. - § 7447(a)(1): Pub. L. 91–172, § 960(c), substituted “United States Tax Court” for “Tax Court of the United States”. - § 7447(a): Pub. L. 91–172, § 960(d), inserted reference to service as a judge of the Tax Court of the United States. - § 7447(b): Pub. L. 91–172, § 954(a), substituted provisions authorizing retirement at age 70, or age 65 after serving 15 years, or when any judge has become permanently disabled, authorizing any judge not reappointed who has served 15 years or more to retire under enumerated condition, and rendering section 8335(a) of title 5 not applicable to judges, for provisions authorizing retirement after a judge has served 18 years, requiring anyone who served as a judge for 10 years or more and attained the age of 70 years to retire no later than the close of the third month beginning after the month in which he attained 70 years or the month completing the tenth year of service or August 1953, and rendering section 2(a) of the Civil Service Retirement Act not applicable to judges. - § 7447(d): Pub. L. 91–172, § 954(b), substituted provisions specifying methods of computation of retirement pay under subsec. (b) of this section so as to conform such provisions to subsec. (b) (relating to conditions for retiring), for provisions specifying methods of computation for retirement pay under former subsec. (b) of this section (relating to conditions for retiring). - § 7447(g)(1): Pub. L. 91–172, § 954(e)(2), substituted “civil service retirement laws” and “such civil service retirement laws apply” for “Civil Service Retirement Act” and “such Act applies”, respectively. - § 7447(g)(2): Pub. L. 91–172, § 954(c), substituted provisions that any individual electing to receive retirement pay under subsec. (d) of this section is not to receive any payment under the civil service retirement laws, and no deduction is to be made for the Civil Service Retirement and Disability Fund, and a lump-sum credit computed under section 8331(8) of Title 5 is to be paid, for provisions which enumerated the effects and conditions of electing retirement pay under former subsec. (d) of this section. - § 7447(g): Pub. L. 91–172, § 954(c), struck out par. (3) which enumerated the conditions and effects of waiving civil service benefits in lieu of retirement pay under former subsec. (d) of this section. - § 7447(g): Pub. L. 91–172, § 954(c), struck out par. (4) which provided that the fourth and sixth paragraphs of section 6 of the Civil Service Retirement Act would be applicable to retirement pay accruing under subsec. (d) of this section. - § 7447(h): Pub. L. 91–172, § 954(d), added subsec. (h). ## § 7448: Annuities to surviving spouses and dependent children of judges and special trial judges - § 7448(a)(1): Pub. L. 91–172, § 960(c), substituted “United States Tax Court” for “Tax Court of the United States”. - § 7448(b): Pub. L. 91–172, § 955(a), substituted provisions authorizing a judge to file notice of election to take benefits relating to survivor annuities while a judge, and if not reappointed, authorizing such election at any time before the day after the day on which his successor takes office, for provisions authorizing a judge to file within 6 months after he takes office or is reappointed, or within 6 months after he becomes eligible for retirement under former section 7447(b) of this title, or within 6 months after Oct. 4, 1961. - § 7448(d): Pub. L. 91–172, § 955(d)(1), (2), substituted “civil service retirement laws” for “Civil Service Retirement Act” and “section 8332 of title 5 of the United States Code” for “section 3 of the Civil Service Retirement Act (5 U.S.C. 2253)”. - § 7448(h): Pub. L. 91–172, § 955(b)(1), substituted “civil service retirement laws” for “Civil Service Retirement Act”. - § 7448(m): Pub. L. 91–172, § 955(b)(3), substituted “section 2107 of title 5 of the United States Code” for “section 1(c) of the Civil Service Retirement Act (5 U.S.C. 2251(c))”. - § 7448(n): Pub. L. 91–172, §§ 955(b)(2), 960(e), substituted “section 8332 of title 5 of the United States Code” for “section 3 of the Civil Service Retirement Act (5 U.S.C. 2253)” and inserted reference to service as a judge of the Tax Court of the United States. - § 7448(r): Pub. L. 91–172, § 955(b)(1), (4), substituted “civil service retirement laws” for “Civil Service Retirement Act” and substituted “an election filed under section 7447(e)” for “a waiver filed under section 7447(g)(3)”. ## § 7453: Rules of practice, procedure, and evidence - § 7453: Pub. L. 91–172 inserted reference to the exception in the case of proceedings conducted under section 7463 of this title. ## § 7454: Burden of proof in fraud, foundation man­ager, and transferee cases - § 7454: Pub. L. 91–172 inserted “, foundation manager” in section catchline. - § 7454: Subsecs (b), (c). Pub. L. 91–172 added subsec. (b) and redesignated former subsec. (b) as (c). ## § 7456: Administration of oaths and procurement of testimony - § 7456(c): Pub. L. 91–172, § 958, provided that commissioners be compensated at rates identical to those of commissioners of the United States Court of Claims, and substituted provisions authorizing the chief judge of the Tax Court to appoint Commissioners for provisions authorizing attorneys from the legal staff of the Tax Court to act as Commissioners. - § 7456: Pub. L. 91–172, § 956, added subsec. (d). ## § 7463: Disputes involving $50,000 or less - Enacted 26 U.S.C. § 7463. ## § 7465: Provisions of special application to transferees ## § 7471: Employees - § 7471(c): Pub. L. 91–172 inserted reference to the compensation of commissioners. ## § 7481: Date when Tax Court decision becomes final - § 7481: Pub. L. 91–172 designated existing provisions as subsec. (a), inserted reference to the exception provided for in subsec. (b), substituted “notice of appeal” for “petition for review” in par. (1), and substituted references to dismissal of appeal for references to dismissal of petition for review in par. (2), and added subsec. (b). ## § 7482: Courts of review - § 7482(c): Pub. L. 91–172 substituted “section 2072 of title 28” for “section 2074 of title 28” in par. (2) and struck out provision for the applicability of rules adopted under authority of section 1141(c)(2) of the Internal Revenue Act of 1939 until such time as rules prescribed by the Supreme Court under section 2072 of title 28 become effective and, in par. (4), substituted “notice of appeal” for “petition”. ## § 7483: Notice of appeal - § 7483: Pub. L. 91–172 substituted references to notice of appeal for references to petition for review, and otherwise generally altered the section as to time for appeal and terminology in order to conform section to the form of the Federal Rules of Appellate Procedure. ## § 7485: Bond to stay assessment and collection - § 7485(a): Pub. L. 91–172 substituted “notice of appeal” for “petition for review” and “appeal bond” for “review bond”. ## § 7487: Cross references - § 7487: Pub. L. 91–172 inserted reference to section 7463(b) for nonreviewability of Tax Court decisions in small claims cases. ## § 7605: Time and place of examination - § 7605(c): Pub. L. 91–172 added subsec. (c). ## § 7701: Definitions - § 7701(a)(19)(A): Pub. L. 91–172, § 432(c) reenacted subpar. (A) without change. - § 7701(a)(19)(B): Pub. L. 91–172, § 432(c), struck out reference to subpar. (C). - § 7701(a)(19)(C): Pub. L. 91–172, § 432(c), substituted 60 percent for 90 percent in text preceding cl. (i), reenacted cl. (i) without change, in cl. (ii), excluded obligations the interest on which was excludible from gross income under section 103, expanded provisions of former cl. (iii) and transferred them to cl. (v), reenacted cl. (iv) without change, redesignated former cls. (v) and (vi) as cls. (viii) and (x) and added cls. (iii), (vi), (vii) and (ix), and text following cl. (x). - § 7701(a)(19): Pub. L. 91–172, § 432(c), struck out subpars. (D) to (F) and text following subpar. (F) which had further qualified the assets. - § 7701(a)(27): Pub. L. 91–172, § 960(j), substituted “United States Tax Court” for “Tax Court of the United States”. - § 7701(a)(32): Pub. L. 91–172, § 432(d), struck out references to subpars. (D), (E) and (F) and struck out “determined with the application of the second, third, and fourth sentences of paragraph (19).” in subpar. (B) and, in text following subpar. (B), struck out provisions relating to the deduction allowable for a reasonable addition to the reserve for bad debts.