# Pub. L. 97-448: changes to the Internal Revenue Code 1983-01-12, 96 Stat. 2366. Source: . ## Legislative history - Bill: [H.R. 6056](https://www.congress.gov/bill/97th-congress/house-bill/6056) ## § 1: Tax imposed - § 1(d), § 1(e): Pub. L. 97–448, § 101(a)(3), set out as a note below, provided for amendment of the tables applying to married individuals filing separately or to estates and trusts so as to correct any figure differing by not more than 50 cents from the correct amount under the formula used in constructing such table. Corrections to the tables in subsecs. (d) and (e) appeared in Announcement 83–50 contained in Internal Revenue Bulletin No. 1983–12 of Mar. 21, 1983. ## § 2: Definitions and special rules - § 2(a)(3)(B): Pub. L. 97–448 substituted “December 31, 1982” for “January 2, 1978”. ## § 5: Cross references relating to tax on individuals ## § 31: Tax withheld on wages - § 31: Pub. L. 97–448 amended subsec. (d) generally. See 1982 Amendment note below. ## § 41: Credit for increasing research activities - § 41(b)(2)(A): Pub. L. 97–448 inserted provision that cl. (iii) would not apply to any amount to the extent that the taxpayer (or any person with whom the taxpayer must aggregate expenditures under subsection (f)(1)) received or accrued any amount from any other person for the right to use substantially identical personal property. ## § 45K: Credit for producing fuel from a nonconventional source - § 45K(f)(1)(B), § 45K(f)(2): Pub. L. 97–448 substituted “December 31, 1979” for “December 3, 1979”. ## § 46: Amount of credit - § 46: Pub. L. 97–448, § 202(f), substituted “before January 1, 1983, all engineering studies in connection with the commencement of the construction of the project have been completed and all environmental and construction permits required under Federal, State, or local law in connection with the commencement of the construction of the project have been applied for, and” for “before January 1, 1983, the taxpayer has completed all engineering studies in connection with the commencement of the construction of the project, and has applied for all environmental and construction permits required under Federal, State, or local law in connection with the commencement of the construction of the project, and”. - § 46: Pub. L. 97–448, § 102(f)(5)(A), substituted “a qualified rehabilitated building” for “any building”. - § 46: Pub. L. 97–448, § 102(f)(5)(B), substituted “means a qualified rehabilitated building which meets the requirements of section 48(g)(3)” for “has the meaning given to such term by section 48(g)(3)”. - § 46: Pub. L. 97–448, § 102(e)(1), substituted “in the case of property other than 3-year property (within the meaning of section 168(c))” for “in the case of 15-year public utility, 10-year, or 5-year property (within the meaning of section 168(c))” in subpar. (A) and, in provisions following subpar. (B), substituted “shall be treated as property which is not 3-year property” for “shall be treated as 5-year property”. ## § 47: Rehabilitation credit - § 47(d)(2): Pub. L. 97–448, § 102(e)(3)(A), substituted “section 46(c)(8)(D)” and “section 46(c)(8)(B)” for “section 48(c)(8)(D)” and “section 48(c)(8)(B)”, respectively. - § 47(d)(3)(A): Pub. L. 97–448, § 102(e)(3)(B), substituted “section 46(c)(8)(F)” for “section 46(c)(8)(E)”. ## § 48: Energy credit - § 48(a)(1): Pub. L. 97–448, § 102(e)(2)(A), inserted “(not including a building and its structural components) used in connection” after “storage facility”. - § 48(a)(10): Pub. L. 97–448, § 202(c), amended directory language of Pub. L. 96–223, § 223(a)(1), to correct an error, and did not involve any change in text. See 1980 Amendment note below. - § 48: Pub. L. 97–448, § 102(f)(2), (6), substituted “the 24-month period selected by the taxpayer (at the time and in the manner prescribed by regulation) and ending with or within the taxable year” for “the 24-month period ending on the last day of the taxable year” in provisions preceding subcl. (I), substituted “adjusted basis of such building (and its structural components)” for “adjusted basis of such property” both in subcl. (I) and in provision following subcl. (II), and, in provisions following subcl. (II), substituted “holding period of the building” for “holding period of the property” and inserted provision that, for purposes of the preceding sentence, the determination of the beginning of the holding period shall be made without regard to any reconstruction by the taxpayer in connection with the rehabilitation. - § 48: Pub. L. 97–448, § 102(f)(3), substituted “a credit is determined under section 46(a)(2)” for “a credit is allowed under this section” and “the credit so determined” for “the credit so allowed”. See 1982 Amendment note for subsec. (g)(5) below and see Effective Date of 1982 and 1983 Amendment notes set out under sections 1 and 196 of this title. - § 48: Pub. L. 97–448, § 306(a)(3), substituted “paragraphs (1) and (2) of this subsection and paragraph (5) of subsection (d)” for “paragraphs (1) and (2)”. ## § 51: Amount of credit - § 51(d)(8): Pub. L. 97–448, § 102(l)(1), substituted “clauses (i), (ii), and (iii) of subparagraph (A)” for “subparagraph (A)”. - § 51(d)(9): Pub. L. 97–448, § 102(l)(3), substituted “section 432(b)(1) or 445” for “section 432(b)(1)”. - § 51(d)(11): Pub. L. 97–448, § 102(l)(4), substituted “the earlier of the month in which such determination occurs or the month in which the hiring date occurs” for “the month in which such determination occurs”. ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(o)(2): Pub. L. 97–448, § 103(c)(6), struck out “to which the employee made one or more deductible employee contributions” after “from a qualified employer plan or government plan”. - § 72(p)(3): Pub. L. 97–448, § 103(c)(3)(B)(i), struck out “without regard to subparagraph (D) thereof” after “as defined in section 219(e)(3)”. ## § 83: Property transferred in connection with performance of services - § 83(c)(3): Pub. L. 97–448 substituted “Securities Exchange Act of 1934” for “Securities and Exchange Act of 1934” in heading and text. ## § 108: Income from discharge of indebtedness - § 108(b)(2)(B): Pub. L. 97–448, § 102(h)(1), added cl. (v). - § 108(e)(7)(A)(iii): Pub. L. 97–448, § 304(d), added cl. (iii). ## § 129: Dependent care assistance programs - § 129(d)(1): Pub. L. 97–448, § 101(e)(1)(C), substituted “paragraphs (2) through (7)” for “paragraphs (2) through (6)”. - § 129(d)(2): Pub. L. 97–448, § 101(e)(1)(A), added par. (2). Former par. (2) redesignated (3). - § 129(d)(3): Pub. L. 97–448, § 101(e)(1)(A), (B), redesignated former par. (2) as (3) and substituted “employees described in paragraph (2), or their dependents” for “employees who are officers, owners, or highly compensated, or their dependents”. Former par. (3) redesignated (4). - § 129(d)(4), § 129(d)(5), § 129(d)(6), § 129(d)(7): Pub. L. 97–448, § 101(e)(1)(A), redesignated former pars. (3) to (6) as (4) to (7), respectively. - § 129(e)(7): Pub. L. 97–448, § 101(e)(2), substituted “shall be allowed to the employee under any other section of this chapter for any amount excluded from the gross income of the employee” for “shall be allowed under any other section of this chapter for any amount excluded from income”. ## § 168: Accelerated cost recovery system - § 168(b)(2)(A): Pub. L. 97–448, § 102(a)(5), substituted “In the case of 15-year real property” for “For purposes of this subparagraph” in third sentence. - § 168(c): Pub. L. 97–448, § 102(a)(8), added subpar. (F). - § 168(d)(2)(B): Pub. L. 97–448, § 102(a)(2), substituted “paragraph (7) or (10) of subsection (f)” for “subsection (f)(7)”. - § 168(e)(4): Pub. L. 97–448, § 102(a)(9)(A), inserted provision that, in the case of the acquisition of property by any partnership which results from the termination of another partnership under section 708(b)(1)(B), the determination of whether the acquiring partnership is related to the other partnership shall be made immediately before the event resulting in such termination occurs. - § 168(e)(4): Pub. L. 97–448, § 102(a)(9)(B), added subpars. (H) and (I). - § 168(f)(4): Pub. L. 97–448, § 102(f)(4), substituted “Election made on return” for “Made on return” as the subpar. (B) heading, designated existing provisions as cl. (i), added heading for cl. (i), substituted “Except as provided in clause (ii), any election” for “Any election”, in cl. (i) as so designated, and added cl. (ii). - § 168(f)(5): Pub. L. 97–448, § 102(a)(1), inserted provision that, in the case of 15-year real property, the first sentence of this paragraph shall not apply to the taxable year in which the property is placed in service or disposed of. - § 168(f): Pub. L. 97–448, § 102(a)(10)(A), amended subpar. (D), as in effect before the amendments made by the Tax Equity and Fiscal Responsibility Act of 1982 [Pub. L. 97–248], by inserting at end thereof the following new sentence: “Under regulations prescribed by the Secretary, public utility property shall not be treated as qualified leased property unless the requirements of rules similar to the rules of subsection (e)(3) of this section and section 46(f) are met with respect to such property.” See 1982 Amendment note below for subsec. (f)(8)(D). - § 168(f): Pub. L. 97–448, § 102(a)(3), added par. (13). - § 168(g)(8): Pub. L. 97–448, § 102(a)(4)(B), substituted “Qualified coal utilization property” for “In general” in heading. - § 168(g)(8): Pub. L. 97–448, § 102(a)(4)(C), substituted “Coal utilization property” for “In general” in heading. - § 168(h)(4): Pub. L. 97–448, § 102(a)(4)(A), substituted “coal utilization property which would otherwise be 15-year public utility property” for “coal utilization property which is not 3-year property, 5-year property, or 10-year property (determined without regard to this paragraph)”. ## § 170: Charitable, etc., contributions and gifts - § 170(h)(4)(B)(ii): Pub. L. 97–448 substituted “section 48(g)(3)(B)” for “section 191(d)(2)”. ## § 173: Circulation expenditures ## § 174: Amortization of research and experimental expenditures ## § 179: Election to expense certain depreciable business assets - § 179(d)(10): Pub. L. 97–448 added par. (10). ## § 193: Tertiary injectants - § 193(b)(1): Pub. L. 97–448 struck out “during the taxable year” after “any cost paid or incurred”. ## § 194A: Contributions to employer liability trusts ## § 219: Retirement savings - § 219(b)(2): Pub. L. 97–448, § 103(c)(12)(A), inserted a close parenthesis after “allowable under paragraph (1)” in introductory provisions. - § 219(c)(2)(B): Pub. L. 97–448, § 103(c)(1), substituted “the amount allowable as a deduction under subsection (a) for the taxable year (determined without regard to so much of the employer contributions to a simplified employee pension as is allowable by reason of paragraph (2) of subsection (b))” for “the amount allowed as a deduction under subsection (a) for the taxable year”. - § 219(d)(1): Pub. L. 97–448, § 103(c)(2), substituted “Beneficiary must be under age 70½” for “Individuals who have attained age 70½” as par. (1) heading and, in text, substituted “qualified retirement contribution for the benefit of an individual if such individual has attained age 70½ before the close of such individual’s taxable year for which the contribution was made” for “qualified retirement contribution which is made for a taxable year of an individual if such individual has attained age 70½ before the close of such taxable year”. - § 219(e): Pub. L. 97–448, § 103(c)(3)(A), redesignated subpar. (E) as (D). Former subpar. (D), which related to simplified employee pension (within the meaning of section 408(k)), was struck out. - § 219(f)(1): Pub. L. 97–448, § 103(c)(4), substituted “earned income (as defined in section 401(c)(2)) reduced by any amount allowable as a deduction to the individual in computing adjusted gross income under paragraph (7) of section 62” for “earned income as defined in section 401(c)(2)” and inserted provision that “compensation” does not include any amount received as a pension or annuity and does not include any amount received as deferred compensation. - § 219(f)(3): Pub. L. 97–448, § 103(c)(5), substituted “if the contribution is made on account of the taxable year which includes such last day and by April 15 of the calendar year” for “if the contribution is made by April 15 of the calendar year”. ## § 263: Capital expenditures - § 263(g)(2)(A)(ii): Pub. L. 97–448, § 105(b)(1), substituted “all other amounts (including charges for temporary use of the personal property in a short sale, or to insure, store, or transport the personal property) paid or incurred to carry the personal property, over” for “amounts paid or incurred to insure, store, or transport the personal property, over”. - § 263(g)(2)(B)(ii): Pub. L. 97–448, § 306(a)(9)(A), substituted “section 1232(a)(3)(A)” for “section 1232(a)(4)(A)”. ## § 291: Special rules relating to corporate preference items - § 291(a)(1): Pub. L. 97–448 inserted provision that, under regulations prescribed by the Secretary, the provisions of this paragraph shall not apply to the disposition of any property to the extent section 1250(a) does not apply to such disposition by reason of section 1250(d). ## § 305: Distributions of stock and stock rights - § 305(e)(3): Pub. L. 97–448, § 103(f)(1), substituted “placed in service qualified long-life public utility property having a cost equal to at least 60 percent of the aggregate cost of all tangible property described in subparagraph (A) or (B) of section 1245(a)(3) placed in service by the corporation during such period” for “acquired public utility recovery property having a cost equal to at least 60 percent of the aggregate cost of all tangible property described in section 1245(a)(3) (other than subparagraphs (C) and (D) thereof) acquired by the corporation during such period”. - § 305(e)(3): Pub. L. 97–448, § 103(f)(2), substituted definition of “qualified long-life public utility property” for definition of “public utility recovery property” which had been defined as public utility property (within the meaning of section 167(l)(3)(A)) which was recovery property which was 10-year property or 15-year public utility property (within the meaning of section 168), except that any requirement that the property be placed in service after December 31, 1980, did not apply. ## § 312: Effect on earnings and profits - § 312(j): Pub. L. 97–448 substituted “Redemptions” for “Partial liquidations and redemptions” in heading, and in text struck out “in partial liquidation or” after “distributes amounts”. ## § 338: Certain stock purchases treated as asset acquisitions - § 338(h)(8), § 338(h)(9): Pub. L. 97–448 added pars. (8) and (9). ## § 368: Definitions relating to corporate reorganizations - § 368(a)(2)(C): Pub. L. 97–448, § 304(b), struck out “or stock” after “acquisition of the assets”. - § 368(a)(3)(B)(i): Pub. L. 97–448, § 304(c), substituted “any party to the reorganization” for “such corporation”. ## § 381: Carryovers in certain corporate acquisitions - § 381(c): Pub. L. 97–448, § 102(h)(3), redesignated par. (28), relating to credit under section 44F, as (29). Former par. (29) redesignated (30). - § 381(c): Pub. L. 97–448, § 103(g)(2)(F), redesignated former par. (29), relating to credit under section 44G, as (30). ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(a)(21): Pub. L. 97–448, § 103(g)(2)(A), designated part of existing provisions as subpar. (A) and added subpar. (B). - § 401(d): Pub. L. 97–448, § 306(a)(12), substituted “paragraph (1)(B)” for “paragraph (9)(B)”. - § 401(d): Pub. L. 97–448, § 103(c)(10)(A), substituted “Subparagraphs (A) and (B) shall not apply to contributions described in subsection (e), and shall not apply to any deductible employee contribution (as defined in section 72(o)(5))” for “Subparagraphs (A) and (B) do not apply to contributions described in subsection (e)” in second sentence. - § 401(j): Pub. L. 97–448, § 103(d)(2), substituted “under subparagraph (A) of paragraph (2) shall be treated as beginning a new period of plan participation with respect only to such change” for “under subparagraph (A) of subsection (j)(2) shall be treated as beginning a new period of plan participation” in last sentence. ## § 402: Taxability of beneficiary of employees’ trust - § 402(a): Pub. L. 97–448, § 103(c)(8)(A), added cl. (v). - § 402(e)(1): Pub. L. 97–448, § 101(b), substituted “the zero bracket amount applicable to such an individual for the taxable year” for “$2,300”. - § 402(e)(4)(A): Pub. L. 97–448, § 103(c)(7), substituted “this subsection, subsection (a)(2) of this section, and subsection (a)(2) of section 403” for “this section and section 403” in last sentence. - § 402(e)(4): Pub. L. 97–448, § 103(c)(12)(D), amended Pub. L. 97–34, § 311(c)(2) [see 1981 Amendment note below], by substituting “section 72(o)(5)” for “section 77(o)(5)” in last sentence of subpar. (j). ## § 403: Taxation of employee annuities - § 403(b)(8): Pub. L. 97–448 substituted “subparagraphs (B), (C), (D)(v), and (E)(i) of section 402(a)(5)” for “subparagraphs (B), (C), and (E)(i) of section 402(a)(5)”. ## § 408: Individual retirement accounts - § 408(j): Pub. L. 97–448, § 103(d)(1)(B), substituted “$17,000” for “$15,000” in provisions preceding par. (1). - § 408(k)(3)(C): Pub. L. 97–448, § 103(d)(1)(A), inserted “(other than an employee within the meaning of section 401(c)(1))” after “a simplified employee pension on behalf of each employee”. - § 408(m), § 408(n): Pub. L. 97–448, § 103(e)(1), amended directory language of Pub. L. 97–34, § 314(b)(1), thereby correcting subsec. designations. See 1981 Amendment note below for subsecs. (m) and (n). ## § 409: Qualifications for tax credit employee stock ownership plans - § 409(d)(2): Pub. L. 97–448, § 103(i), struck out provisions covering the sale of substantially all of the stock of a subsidiary of the employer. - § 409(h)(2): Pub. L. 97–448, § 103(h), substituted “the requirements of this subsection or of section 401(a)” for “the requirements of section 401(a)”. ## § 422: Incentive stock options - § 422(b): Pub. L. 97–448, § 102(j)(1), substituted “granted incentive stock options” for “granted options”. - § 422(c)(1): Pub. L. 97–448, § 102(j)(2), substituted “Good faith efforts to value stock” for “Exercise of option when price is less than value of stock” as par. (1) heading and inserted sentence providing that, to the extent provided in regulations by the Secretary, a rule similar to that already enunciated in the paragraph applies for purposes of par. (8) of subsec. (b) and par. (4) of subsec. (c). - § 422(c)(2)(A): Pub. L. 97–448, § 102(j)(3), substituted “either of the periods” for “the 2-year period”. - § 422(c)(4)(A): Pub. L. 97–448, § 102(j)(4), substituted “granted incentive stock options” for “granted options”. ## § 424: Definitions and special rules - § 424(c)(1): Pub. L. 97–448, § 102(j)(6)(B), substituted “paragraphs (2) and (3)” for “paragraph (2)”. - § 424(c)(3): Pub. L. 97–448, § 102(j)(6)(A), added par. (3). - § 424(j): Pub. L. 97–448, § 102(j)(5), inserted reference to an incentive stock option. ## § 443: Returns for a period of less than 12 months - § 443(e): Pub. L. 97–448 substituted “section 1398(d)(2)(E)” for “section 1398(d)(3)(E)”. ## § 453: Installment method - § 453(f)(6)(C): Pub. L. 97–448 inserted “, when used in any provision of this section other than subsection (b)(1),” after “the term ‘payment’ ”. ## § 453B: Gain or loss on disposition of installment obligations - § 453B(d): Pub. L. 97–448 substituted “under subsection (a)” for “under paragraph (1)” in second sentence. ## § 483: Interest on certain deferred payments - § 483(g): Pub. L. 97–448 substituted “Paragraph (1)” for “This section”. ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(23): Pub. L. 97–448 substituted “75 percent” for “25 percent”. ## § 511: Imposition of tax on unrelated business income of charitable, etc., organizations ## § 512: Unrelated business taxable income - § 512(b)(10): Pub. L. 97–448 substituted “10 percent” for “5 percent”. ## § 545: Undistributed personal holding company income - § 545(b)(2): Pub. L. 97–448 substituted “10-percent” for “5-percent”. ## § 562: Rules applicable in determining dividends eligible for dividends paid deduction - § 562(e): Pub. L. 97–448 added subsec. (e). ## § 584: Common trust funds - § 584(c)(2): Pub. L. 97–448 reenacted par. (2) without change. ## § 613A: Limitations on percentage depletion in case of oil and gas wells - § 613A(c)(10): Pub. L. 97–448, § 202(d)(1), inserted provision that “oil and gas property” includes, in the case of any property, necessary production equipment for such property which is in place when the property is transferred. - § 613A(d)(2): Pub. L. 97–448, § 202(d)(2), inserted “(excluding bulk sales of aviation fuels to the Department of Defense)” after “any product derived from oil or natural gas”. ## § 616: Development expenditures ## § 617: Deduction and recapture of certain mining exploration expenditures ## § 643: Definitions applicable to subparts A, B, C, and D - § 643(a)(7): Pub. L. 97–448 substituted “section 116 (relating to partial exclusion of dividends) or section 128 (relating to certain interest)” for “section 116 (relating to partial exclusion of dividends or interest received) or section 128 (relating to interest on certain savings certificates)”. ## § 678: Person other than grantor treated as substantial owner - § 678(e): Pub. L. 97–448 added subsec. (e). ## § 692: Income taxes of members of Armed Forces, astronauts, and victims of certain terrorist attacks on death - § 692(b): Pub. L. 97–448 substituted “December 31, 1982” for “January 2, 1978”. ## § 702: Income and credits of partner - § 702(a)(5): Pub. L. 97–448 substituted “an exclusion under section 116 or 128,” for “provided an exclusion under section 116 or 128”. ## § 751: Unrealized receivables and inventory items - § 751(c): Pub. L. 97–448 inserted reference to section 1245 recovery property (as defined in section 1245(a)(5)) in second sentence. ## § 897: Disposition of investment in United States real property ## § 901: Taxes of foreign countries and of possessions of United States ## § 911: Citizens or residents of the United States living abroad - § 911(c)(3)(B)(ii): Pub. L. 97–448, § 101(c)(2), substituted “subsection (a)” for “subsection (a)(1)”. - § 911(d)(7), § 911(d)(8): Pub. L. 97–448, § 101(c)(1), added par. (7) and redesignated former par. (7) as (8). ## § 1014: Basis of property acquired from a decedent - § 1014(b)(10): Pub. L. 97–448 added par. (10). ## § 1040: Transfer of certain farm, etc., real property - § 1040(a): Pub. L. 97–448, § 104(b)(3)(A), substituted “on the date of such transfer” for “on the date of such exchange”. - § 1040(c): Pub. L. 97–448, § 104(b)(3)(B), substituted references to “transfer”, “a transfer”, and “the transfer” for references to “exchange”, “an exchange”, and “the exchange”, respectively, wherever appearing in heading and text. ## § 1092: Straddles - § 1092(a)(1)(A): Pub. L. 97–448, § 105(a)(1)(A), (2), substituted “unrecognized gain” for “unrealized gain” and “which were offsetting positions with respect to 1 or more positions from which the loss arose” for “which— (i) were acquired by the taxpayer before the disposition giving rise to such loss, (ii) were offsetting positions with respect to the 1 or more positions from which the loss arose, and (iii) were not part of an identified straddle as of the close of the taxable year”. - § 1092(a)(3): Pub. L. 97–448, § 105(a)(1)(B), substituted “Unrecognized gain” for “Unrealized gain” in heading. - § 1092(a)(3)(A): Pub. L. 97–448, § 105(a)(1)(B), substituted “unrecognized gain” for “unrealized gain” as term defined, designated existing definition as cl. (i), and added cl. (ii). - § 1092(a)(3)(B): Pub. L. 97–448, § 105(a)(1)(C), substituted “with respect to which, as of the close of the taxable year, there is unrecognized gain, and” for “which is held by such taxpayer as of the close of the taxable year and with respect to which there is unrealized gain, and”. - § 1092(a)(3)(B): Pub. L. 97–448, § 105(a)(1)(C), substituted “unrecognized gain” for “unrealized gain”. - § 1092(c)(2): Pub. L. 97–448, § 105(a)(4), substituted “subsection (a)(2)(B)” for “subsection (a)(3)(B)”. - § 1092(d)(4): Pub. L. 97–448, § 105(a)(3), substituted “a straddle at least 1 (but not all) of the positions of which are regulated futures contracts, the provisions of this section shall apply” for “a straddle— (A) at lease 1 (but not all) of the positions of which are regulated futures contracts, and (B) with respect to which the taxpayer has elected not to have the provisions of section 1256 apply, the provisions of this section shall apply”. ## § 1212: Capital loss carrybacks and carryovers - § 1212(c)(4)(A): Pub. L. 97–448 struck out “and positions to which section 1256 applies” after “losses from regulated futures contracts”. ## § 1223: Holding period of property - § 1223(8): Pub. L. 97–448, § 105(c)(4), inserted “(other than a commodity futures contract to which section 1256 applies)” after “acquired in satisfaction of a commodity futures contract”. - § 1223(12), § 1223(13): Pub. L. 97–448, § 104(b)(3)(C), added par. (12) and redesignated former par. (12) as (13). ## § 1234A: Gains or losses from certain terminations - § 1234A: Pub. L. 97–448 inserted reference to a regulated futures contract (as defined in section 1256) not described in paragraph (1) which is a capital asset in the hands of the taxpayer. ## § 1236: Dealers in securities - § 1236(e): Pub. L. 97–448 added subsec. (e). ## § 1239: Gain from sale of depreciable property between certain related taxpayers - § 1239(b): Pub. L. 97–448, § 301(a), substituted provisions that “related persons” means (1) a husband and wife, and (2) a person and all entities which are 80-percent owned entities with respect to such person, for provisions which provided that “related persons” meant (1) the taxpayer and the taxpayer’s spouse, (2) the taxpayer and an 80-percent owned entity, or (3) two 80-percent owned entities. - § 1239(c)(1): Pub. L. 97–448, § 301(b), inserted “, with respect to any person” after “means” in introductory provisions and substituted “such person” for “the taxpayer” in subpars. (A) and (B). - § 1239(c)(2): Pub. L. 97–448, § 301(b), struck out “and” at end of subpar. (A), substituted “paragraph (2)(C)” for “paragraphs (2)(C) and (3)(C)” in subpar. (B), and added subpar. (C). ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a)(3)(F): Pub. L. 97–448 inserted “(not including a building or its structural components)” after “a storage facility”. ## § 1248: Gain from certain sales or exchanges of stock in certain foreign corporations - § 1248(c)(1): Pub. L. 97–448 substituted “section 312(k)(4)” for “section 312(k)(3)”. ## § 1250: Gain from dispositions of certain depreciable realty - § 1250(b)(1): Pub. L. 97–448, § 102(a)(7)(B), struck out last sentence providing that, for purposes of defining “additional depreciation”, if a useful life (or salvage value) was used in determining the amount allowed as a deduction for any taxable year, such life (or value) was to be used in determining the depreciation adjustments which would have resulted for such year under the straight line method. - § 1250(b)(5): Pub. L. 97–448, § 102(a)(7)(A), added par. (5). ## § 1256: Section 1256 contracts marked to market - § 1256(b): Pub. L. 97–448, § 105(c)(5)(A), (B), struck out par. (1) which related to contracts requiring delivery of personal property (as defined in section 1092(d)(1)) or an interest in such property, redesignated pars. (2) and (3) as (1) and (2), respectively, and inserted last sentence providing that such term includes any foreign currency contract. - § 1256(c): Pub. L. 97–448, § 105(c)(1), inserted “, etc.” after “Terminations” in heading and, in text, designated existing first and second sentences as pars. (1) and (3), respectively, added par. (2), inserted “(or transfer)” after “termination” and “(or rights)” after “obligation” in par. (1) as so designated, and substituted “this subsection” for “the preceding sentence” and inserted “(or transfer)” after “termination” in par. (3) as so designated. - § 1256(d)(4)(B): Pub. L. 97–448, § 105(c)(2), substituted “day on which the first regulated futures contract forming part of the straddle is acquired” for “day on which such position is acquired”. - § 1256(e)(3)(C)(v): Pub. L. 97–448, § 105(c)(3), inserted “(by regulations or otherwise)” after “determines”. - § 1256(g): Pub. L. 97–448, § 105(c)(5)(C), added subsec. (g). ## § 1368: Distributions - § 1368(e)(3): Pub. L. 97–448 added par. (3). ## § 1374: Tax imposed on certain built-in gains - § 1374(d): Pub. L. 97–448 substituted “this section” for “subsections (a)(2) and (b)(2)”. ## § 2032A: Valuation of certain farm, etc., real property - § 2032A(b)(5)(C): Pub. L. 97–448, § 104(b)(1), added subpar. (C). - § 2032A(i)(1)(B)(ii): Pub. L. 97–448, § 104(b)(2)(A), substituted “the qualified exchange property” for “the other property”. - § 2032A(i)(3): Pub. L. 97–448, § 104(b)(2)(B), substituted “subparagraph (A) or (B)” for “subparagraph (A), (B), or (C)”. ## § 2035: Adjustments for certain gifts made within 3 years of decedent’s death - § 2035(b): Pub. L. 97–448, § 104(a)(9), substituted “section 6019(2)” for “section 6019(a)(2)”. - § 2035(d): Pub. L. 97–448, § 104(d)(2), inserted “of this subsection and paragraph (2) of subsection (b)” after “Paragraph (1)”, and struck out “2041,” after “2038,”. - § 2035(d): Pub. L. 97–448, § 104(d)(1)(C), redesignated subpar. (D) as (C). Former subpar. (C), which referred to section 6166 (relating to extension of time for payment of estate tax where estate consists largely of interest in closely held business), was struck out. - § 2035(d): Pub. L. 97–448, § 104(d)(1)(A), added par. (4). ## § 2039: Annuities - § 2039: Pub. L. 97–448, § 103(c)(9)(A), designated existing provisions as subpar. (A), substituted “without regard to the third sentence of section 402(e)(4)(A))” for “without regard to the next to the last sentence of section 402(e)(4)(A)” in subpar. (A) as so designated, and added subpar. (B). - § 2039: Pub. L. 97–448, § 103(c)(9)(B), substituted “An amount described” for “A lump sum distribution described”. ## § 2044: Certain property for which marital deduction was previously allowed - § 2044(c): Pub. L. 97–448 added subsec. (c). ## § 2056: Bequests, etc., to surviving spouse - § 2056(b)(7)(B)(ii): Pub. L. 97–448, § 104(a)(8), inserted provision that an annuity shall be treated in a manner similar to an income interest in property (regardless of whether the property from which the annuity is payable can be separately identified). - § 2056(b)(9): Pub. L. 97–448, § 104(a)(2)(A), added par. (9). ## § 2518: Disclaimers - § 2518(c)(3): Pub. L. 97–448 substituted “A written transfer” for “For purposes of subsection (a), a written transfer”. ## § 2519: Dispositions of certain life estates - § 2519: Pub. L. 97–448, § 104(a)(3)(B), amended directory language of Pub. L. 97–34, § 403(d)(3)(B)(i), to clarify that this section be inserted at end of subchapter B of chapter 12, rather than at end of subchapter B of chapter 11, and did not involve any change in text. - § 2519(a): Pub. L. 97–448, § 104(a)(3)(A), substituted “For purposes of this chapter and chapter 11, any disposition” for “Any disposition” and “treated as a transfer of all interests in such property other than the qualifying income interest” for “treated as a transfer of such property”. - § 2519(c): Pub. L. 97–448, § 104(a)(7), added subsec. (c). ## § 2523: Gift to spouse - § 2523(f)(3): Pub. L. 97–448, § 104(a)(6), substituted “rules similar to the rules of clauses (ii)” for “the rules of clauses (ii)”. - § 2523(f)(4): Pub. L. 97–448, § 104(a)(4), divided existing provisions into subpars. (A) and (B), in subpar. (A) as so designated substituted “shall be made on or before the first April 15th after the calendar year in which the interest was transferred and shall be made in such manner as the Secretary shall by regulations prescribe” for “shall be made on the return of the tax imposed by section 2501 for the calendar year in which the interest was transferred”, and in subpar. (B) as so designated substituted “An election under this subsection” for “Such an election”. - § 2523(f)(5): Pub. L. 97–448, § 104(a)(5), added par. (5). - § 2523(h): Pub. L. 97–448, § 104(a)(2)(B), added subsec. (h). ## § 3401: Definitions - § 3401(a)(12)(D): Pub. L. 97–448 substituted “section 219” for “section 219(a)”. ## § 4942: Taxes on failure to distribute income - § 4942(j)(3)(A)(i): Pub. L. 97–448 substituted “or” for “and” at the end. ## § 4975: Tax on prohibited transactions - § 4975(d): Pub. L. 97–448 inserted “, as in effect on the day before the date of the enactment of the Subchapter S Revision Act of 1982” after “section 1379” in last sentence. ## § 5703: Liability for tax and method of payment - § 5703(b): Pub. L. 97–448 designated existing provisions as par. (1), struck out provisions that the Secretary prescribe the time for making a return and the time for the payment of taxes and that the Secretary prescribe by regulations the conditions for the filing of additional bonds, and added par. (2). ## § 5761: Civil penalties - § 5761(c): Pub. L. 97–448 substituted “section 6660” for “section 6659” in heading, and substituted “section 6660(a)” for “section 6659(a)” in text. ## § 6013: Joint returns of income tax by husband and wife - § 6013(f)(1): Pub. L. 97–448 substituted “December 31, 1982” for “January 2, 1978”. ## § 6038A: Information with respect to certain foreign-owned corporations - § 6038A(c)(2)(B): Pub. L. 97–448 inserted “, (b)(2)(C),” after “(a)(4)”. ## § 6047: Information relating to certain trusts and annuity plans - § 6047(d): Pub. L. 97–448 substituted “section 219” for “section 219(a)”. ## § 6166: Extension of time for payment of estate tax where estate consists largely of interest in closely held business - § 6166(b)(3): Pub. L. 97–448, § 104(c)(1), substituted “35-percent requirement” for “65-percent requirement”. - § 6166(g)(1)(B)(i): Pub. L. 97–448, § 104(c)(2), substituted “the redemption of such stock, and the withdrawal of money or other property distributed in such redemption, shall not be treated as a distribution or withdrawal for purposes of subparagraph (A), and” for “subparagraph (A)(i) does not apply with respect to the stock redeemed; and for purposes of such subparagraph the interest in the closely held business shall be considered to be such interest reduced by the value of the stock redeemed, and”. - § 6166(g)(1)(B)(ii): Pub. L. 97–448, § 104(c)(2), substituted “for purposes of subparagraph (A), the value of the interest in the closely held business shall be considered to be such value reduced by the value of the stock redeemed” for “subparagraph (A)(ii) does not apply with respect to withdrawals of money and other property distributed; and for purposes of such subparagraph the value of the trade or business shall be considered to be such value reduced by the amount of money and other property distributed”. - § 6166(j): Pub. L. 97–448, § 104(d)(1)(B), added par. (5). ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(a): Pub. L. 97–448, which directed that “or” be struck out at end of subpar. (F) of par. (1), “or” be inserted at end of par. (2), a new par. (3) be added, and that in provision following par. (3), “paragraph (2) or (3)” be substituted for “paragraph (2)”, was executed by striking out “or” at end of subpar. (A)(vi) of par. (1), inserting “or” at end of subpar. (B)(iv) of par. (1), redesignating par. (3) as subpar. (C) and adding such subpar. (C), to par. (1), and in provision following subpar. (C) substituting “subparagraph (B) or (C)” for “subparagraph (B)”, to reflect the probable intent of Congress and the intervening amendment of subsec. (a) by section 315(a) of Pub. L. 97–248 which redesignated former par. (1) as subpar. (A), former subpars. (A) to (F) as cls. (i) to (vi), and former par. (2) as subpar. (B), and in provision following subpar. (B) as so redesignated, substituted “subparagraph (B)” for “paragraph (2)”. ## § 6653: Failure to pay stamp tax - § 6653: Pub. L. 97–448, § 107(a)(3), inserted “(or, if earlier, the date of the payment of the tax)” after “assessment of the tax”. - § 6653: Pub. L. 97–448, § 105(a)(1)(D), redesignated subsec. (g), added by Pub. L. 97–34, as (f) and substituted “unrecognized gain” for “unrealized gain” in heading. - § 6653: Pub. L. 97–448, § 105(a)(1)(D), redesignated subsec. (g), added by Pub. L. 97–34, as (f). ## § 6654: Failure by individual to pay estimated income tax - § 6654(f)(1): Pub. L. 97–448, § 107(c)(1), inserted “, reduced by the credit allowable under section 31,” before “is less than”. - § 6654(g): Pub. L. 97–448, § 201(j)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “to the extent allowed under regulations prescribed by the Secretary, any amount which is treated under section 6429 or 6430 as an overpayment of the tax imposed by section 4986”. - § 6654(g): Pub. L. 97–448, § 106(a)(4)(C), inserted “or 6430” after “section 6429”. ## § 6655: Failure by corporation to pay estimated income tax - § 6655(f): Pub. L. 97–448 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “to the extent allowed under regulations prescribed by the Secretary, any amount which is treated under section 6429 as an overpayment of the tax imposed by section 4986”. Notwithstanding directory language that amendment be made to subsec. (e)(2)(B), the amendment was executed to subsec. (f)(2)(B) to reflect the probable intent of Congress, the intervening redesignation of subsec. (e) as (f) by Pub. L. 97–248, and the retrospective effect of the amendment as provided by section 203(a), (b) of Pub. L. 97–448, set out as an Effective Date of 1983 Amendment note under section 4988 of this title. ## § 6679: Failure to file returns, etc., with respect to foreign corporations or foreign partnerships - § 6679: Pub. L. 97–448 amended language of Pub. L. 97–248, § 405(b), (c)(2), to clarify an ambiguity created by the conflicting language of §§ 340(b)(1), (2) and 405(b), (c)(2) of Pub. L. 97–248. See 1982 Amendment note below. ## § 7508: Time for performing certain acts postponed by reason of service in combat zone or contingency operation - § 7508(b)(1): Pub. L. 97–448 substituted “December 31, 1982” for “January 2, 1978”. ## § 7701: Definitions - § 7701(a)(38), § 7701(a)(39): Pub. L. 97–448, § 306(b)(3), redesignated par. (38), as added by Pub. L. 97–248, § 336(a), relating to persons residing outside the United States, as (39).