# Pub. L. 98-369: changes to the Internal Revenue Code 1984-07-18, 98 Stat. 801. Source: . ## Legislative history - Bill: [H.R. 4170](https://www.congress.gov/bill/98th-congress/house-bill/4170) - Bluebook: [JCS-41-84 (1984)](https://www.jct.gov/publications/1984/jcs-41-84/) ## § 2: Definitions and special rules - § 2(b)(1)(A): Pub. L. 98–369, § 423(c)(2)(A), substituted “which constitutes for more than one-half of such taxable year” for “which constitutes for such taxable year”. - § 2(b)(1)(A)(i): Pub. L. 98–369, § 423(c)(2)(B), inserted “(or would be so entitled but for paragraph (2) or (4) of section 152(e))”. ## § 11: Tax imposed - § 11(b): Pub. L. 98–369 inserted “In the case of a corporation with taxable income in excess of $1,000,000 for any taxable year, the amount of tax determined under the preceding sentence for such taxable year shall be increased by the lesser of (A) 5 percent of such excess, or (B) $20,250.” ## § 12: Cross references relating to tax on corporations - § 12: Pub. L. 98–369 redesignated pars. (7) and (8) as (6) and (7), respectively. Former par. (6), which referred to section 1451 for withholding of tax on tax-free covenant bonds, was struck out. ## § 15: Effect of changes - § 15: Pub. L. 98–369 renumbered section 21 of this title as this section. ## § 21: Expenses for household and dependent care services necessary for gainful employment - § 21: Pub. L. 98–369, § 471(c), renumbered section 44A of this title as this section. - § 21(a)(1): Pub. L. 98–369, § 474(c)(2), (3), substituted “subsection (b)(1)” for “subsection (c)(1)” and “subsection (b)(2)” for “subsection (c)(2)”. - § 21(b): Pub. L. 98–369, § 474(c)(1), redesignated subsec. (c) as (b). Former subsec. (b), which provided that the credit allowed by subsec. (a) could not exceed the amount of the tax imposed by this chapter for the taxable year reduced by the sum of the credits allowable under sections 33, 37, 38, 40, 41, 42, and 44, was struck out. - § 21(c): Pub. L. 98–369, § 474(c)(1), redesignated subsec. (d) as (c). Former subsec. (c) redesignated (b). - § 21(d): Pub. L. 98–369, § 474(c)(1), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c). - § 21(d)(2): Pub. L. 98–369, § 474(c)(4), substituted “subsection (b)(1)(C)” for “subsection (c)(1)(C)” in introductory provisions. - § 21(d)(2)(A): Pub. L. 98–369, § 474(c)(5), substituted “subsection (c)(1)” for “subsection (d)(1)”. - § 21(d)(2)(B): Pub. L. 98–369, § 474(c)(6), substituted “subsection (c)(2)” for “subsection (d)(2). - § 21(e): Pub. L. 98–369, § 474(c)(1), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d). - § 21(e)(5): Pub. L. 98–369, § 474(c)(7), substituted “subsection (b)(1)” for “subsection (c)(1)” in provisions following subpar. (B). - § 21(e)(5): Pub. L. 98–369, § 423(c)(4), amended par. (5) generally, substituting subpars. (A) and (B) reading: - § 21(f), § 21(g): Pub. L. 98–369, § 474(c)(1), redesignated subsecs. (f) and (g) as (e) and (f), respectively. ## § 22: Credit for the elderly and the permanently and totally disabled - § 22: Pub. L. 98–369, § 471(c), renumbered section 37 of this title as this section. - § 22(a): Pub. L. 98–369, § 474(d)(1), substituted “section 22 amount” for “section 37 amount”. - § 22(c): Pub. L. 98–369, § 474(d)(2), substituted “Section 22 amount” for “Section 37 amount” in heading. - § 22(c)(1): Pub. L. 98–369, § 474(d)(1), substituted “section 22 amount” for “section 37 amount”. - § 22(d): Pub. L. 98–369, § 474(d)(3), amended subsec. (d) generally, striking out heading “Limitations” and designation “(1)” before “Adjusted gross income limitation” thereby making existing par. (1) the entire subsec. (d), redesignating existing subpars. (A), (B), and (C) as pars. (1), (2), and (3), respectively, and striking out provisions, formerly comprising par. (2), which had limited the amount of the credit allowed by this section for the taxable year to the amount of the tax imposed by this chapter for such taxable year. ## § 25: Interest on certain home mortgages - Enacted 26 U.S.C. § 25. ## § 26: Limitation based on tax liability; definition of tax liability - Enacted 26 U.S.C. § 26. ## § 27: Taxes of foreign countries and possessions of the United States - § 27: Pub. L. 98–369, § 471(c), renumbered section 33 of this title as this section. ## § 31: Tax withheld on wages - § 31(a)(1): Pub. L. 98–369, § 714(j)(2), substituted “as tax under chapter 24” for “under section 3402 as tax on the wages of any individual”. ## § 32: Earned income - § 32: Pub. L. 98–369, § 471(c), renumbered section 43 of this title as this section. - § 32(a): Pub. L. 98–369, § 1042(a), substituted “11 percent” for “10 percent”. - § 32(b)(1): Pub. L. 98–369, § 1042(d)(1), substituted “$550” for “$500”. - § 32(b)(2): Pub. L. 98–369, § 1042(b), substituted “122⁄9 percent” for “12.5 percent” and “$6,500” for “$6,000”. - § 32(c)(1)(A)(i): Pub. L. 98–369, § 423(c)(3)(A), inserted “or would be so entitled but for paragraph (2) or (4) of section 152(e)”. - § 32(c)(1)(B): Pub. L. 98–369, § 423(c)(3)(B), substituted “as the individual for more than one-half of the taxable year” for “as the individual”. - § 32(f)(2)(A): Pub. L. 98–369, § 1042(d)(2), substituted “between $0 and $11,000” for “between $0 and $10,000”. - § 32(f)(2)(B): Pub. L. 98–369, § 1042(d)(2), substituted “between $6,500 and $11,000” for “between $6,000 and $10,000”. - § 32(h): Pub. L. 98–369, § 1042(c), added subsec. (h). ## § 33: Tax withheld at source on nonresident aliens and foreign corporations - § 33: Pub. L. 98–369, § 471(c), renumbered section 32 of this title as this section. - § 33: Pub. L. 98–369, § 474(j), amended section generally, striking out “and on tax-free covenant bonds” after “foreign corporations” in section catchline, and, in text, substituting “as a credit against the tax imposed by this subtitle” for “as credits against the tax imposed by this chapter”, and striking out designation “(1)” before “the amount of tax withheld”, and “, and (2) the amount of tax withheld at source under subchapter B of chapter 3 (relating to interest on tax-free covenant bonds)” after “on foreign corporations)”. ## § 34: Certain uses of gasoline and special fuels - § 34: Pub. L. 98–369, § 471(c), renumbered section 39 of this title as this section. - § 34(a)(3): Pub. L. 98–369, § 911(d)(2)(A), which directed the amendment of par. (4) by substituting “6427(j)” for “6427(i)” was executed to par. (3) to reflect the probable intent of Congress and the redesignation of par. (4) as (3) by Pub. L. 97–424. - § 34(b): Pub. L. 98–369, § 911(d)(2)(A), substituted “6427(j)” for “6427(i)”. ## § 37: Overpayments of tax ## § 38: General business credit - Enacted 26 U.S.C. § 38. - § 38(c)(2): Pub. L. 98–369, § 612(e)(1), substituted “section 26(b)” for “section 25(b)”. ## § 39: Carryback and carryforward of unused credits - Enacted 26 U.S.C. § 39. ## § 40: Alcohol, etc., used as fuel - § 40: Pub. L. 98–369, § 471(c), renumbered section 44E of this title as this section. - § 40(a): Pub. L. 98–369, § 474(k)(1), substituted “For purposes of section 38, the alcohol fuels credit determined under this section for the taxable year is an amount equal to the sum of” for “There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of” in introductory provisions. - § 40(b)(1)(A), § 40(b)(2)(A): Pub. L. 98–369, § 912(c)(1), substituted “60 cents” for “50 cents”. - § 40(b)(3): Pub. L. 98–369, § 912(c), substituted “45 cents” for “37.5 cents” and “60 cents” for “50 cents”. - § 40(c): Pub. L. 98–369, § 913(b), substituted “(b)(2), (k), or (m)” for “(b)(2) or (k)”. - § 40(c): Pub. L. 98–369, § 474(k)(2), substituted “the credit determined under this section” for “the credit allowable under this section”. - § 40(d)(1)(A)(i): Pub. L. 98–369, § 912(f), substituted “coal (including peat)” for “coal”. - § 40(d)(3)(A): Pub. L. 98–369, § 912(c), substituted “60 cents” for “50 cents” and “45 cents” for “37.5 cents”. - § 40(d)(3)(A)(i): Pub. L. 98–369, § 474(k)(3), substituted “credit was determined” for “credit was allowable”. - § 40(d)(3)(B): Pub. L. 98–369, § 912(c), substituted “60 cents” for “50 cents” and “45 cents” for “37.5 cents”. - § 40(d)(3)(B)(i): Pub. L. 98–369, § 474(k)(3), substituted “credit was determined” for “credit was allowable”. - § 40(e): Pub. L. 98–369, § 474(k)(4), redesignated subsec. (f) as (e). Former subsec. (e), which had placed a limitation based on the amount of tax, was struck out. - § 40(e)(2): Pub. L. 98–369, § 474(k)(5), substituted “section 39 by reason of this section (treating the amount allowed by reason of this section as the first amount allowed by this subpart)” for “subsection (e)(2)”. - § 40(f): Pub. L. 98–369, § 474(k)(6), added subsec. (f). Former subsec. (f) redesignated (e). ## § 41: Credit for increasing research activities - § 41: Pub. L. 98–369, § 471(c), renumbered section 44F of this title as this section. - § 41(b)(2)(D)(iii): Pub. L. 98–369, § 474(i)(1)(A), substituted “in determining the targeted jobs credit under section 51(a)” for “in computing the credit under section 40 or 44B”. - § 41(g)(1): Pub. L. 98–369, § 612(e)(1), substituted “section 26(b)” for “section 25(b)”. - § 41(g)(1): Pub. L. 98–369, § 474(i)(1)(B), amended subpar. (A) generally, substituting “shall not exceed the taxpayer’s tax liability for the taxable year (as defined in section 25(b)), reduced by the sum of the credits allowable under subpart A and sections 27, 28, and 29” for “shall not exceed the amount of the tax imposed by this chapter reduced by the sum of the credits allowable under a section of this part having a lower number or letter designation than this section, other than the credits allowable by sections 31, 39, and 43. For purposes of the preceding sentence, the term ‘tax imposed by this chapter’ shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a)”. ## § 45C: Clinical testing expenses for certain drugs for rare diseases or conditions - § 45C: Pub. L. 98–369, § 471(c), renumbered section 44H of this title as this section. - § 45C(b)(1)(A), § 45C(b)(1)(B), § 45C(b)(1): Pub. L. 98–369, § 474(g)(1)(A), substituted “section 30” for “section 44F”. - § 45C(c)(1): Pub. L. 98–369, § 474(g)(1)(A), substituted “section 30” for “section 44F”. - § 45C(c)(2): Pub. L. 98–369, § 474(g)(1)(A), (B), substituted “section 30” for “section 44F” and “section 30(b)” for “section 44F(b)”. - § 45C(d)(2): Pub. L. 98–369, § 612(e)(1), substituted “section 26(b)” for “section 25(b)”. - § 45C(d)(2): Pub. L. 98–369, § 474(g)(2), amended par. (2) generally, substituting “shall not exceed the taxpayer’s tax liability for the taxable year (as defined in section 25(b), reduced by the sum of the credits allowable under subpart A and section 27” for “shall not exceed the amount of the tax imposed by this chapter for the taxable year reduced by the sum of the credits allowable under a section of this subpart having a lower number or letter designation than this section, other than the credits allowable by sections 31, 39, and 43. For purposes of the preceding sentence, the term ‘tax imposed by this chapter’ shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a)”. - § 45C(d)(4): Pub. L. 98–369, § 474(g)(1)(C), substituted “section 30(f)” for “section 44F(f)”. ## § 45K: Credit for producing fuel from a nonconventional source - § 45K: Pub. L. 98–369, § 471(c), renumbered section 44D of this title as this section. - § 45K(b)(1)(A): Pub. L. 98–369, § 722(d)(1), substituted “in which the sale occurs” for “in which the taxable year begins”. - § 45K(b)(2): Pub. L. 98–369, § 722(d)(2), substituted “in which the sale occurs” for “in which a taxable year begins”. - § 45K(b)(5): Pub. L. 98–369, § 612(e)(1), substituted “section 26(b)” for “section 25(b)”. - § 45K(b)(5): Pub. L. 98–369, § 474(h), amended par. (5) generally, substituting “shall not exceed the taxpayer’s tax liability for the taxable year (as defined in section 25(b)), reduced by the sum of the credits allowable under subpart A and sections 27 and 28” for “shall not exceed the tax imposed by this chapter for such taxable year, reduced by the sum of the credits allowable under a section of this subpart having a lower number or letter designation than this section, other than the credits allowable by sections 31, 39, and 43. For purposes of the preceding sentence, the term ‘tax imposed by this chapter’ shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a)”. ## § 46: Amount of credit - § 46: Pub. L. 98–369, § 474(o)(1), amended subsec. (a) generally, so as to contain provisions relating to amount of investment credit, which formerly constituted only par. (2)(A)(i), (ii), and (iv) of subsec. (a). - § 46: Pub. L. 98–369, § 713(c)(1)(C), substituted “premature distributions to key employees” for “premature distributions to owner-employees”. - § 46: Pub. L. 98–369, § 474(o)(1), amended subsec. (b) generally, substituting provisions relating to determination of percentages for purposes of subsec. (a), for provisions relating to carryback and carryover of unused credits. - § 46: Pub. L. 98–369, § 13(b)(2)(B), inserted “recovery” before first reference to “property”. - § 46: Pub. L. 98–369, § 431(a), substituted “Certain nonrecourse financing excluded from credit base” for “Limitation to amount at risk” in heading. - § 46: Pub. L. 98–369, § 431(a), substituted provisions reducing the credit base of any property to which this paragraph applies by the nonqualified nonrecourse financing with respect to such property for provisions relating to limitation of the basis to the amount at risk in the case of new or used section 38 property placed in service during the taxable year by a taxpayer described in section 465(a)(1) and used in connection with an activity with respect to which any loss was subject to limitation under section 465. - § 46: Pub. L. 98–369, § 431(a), substituted provisions relating to the property to which this paragraph applies for provisions defining “at risk” and stating the circumstances under which a taxpayer would be considered to be at risk for purposes of this paragraph. - § 46: Pub. L. 98–369, § 431(a), substituted provisions defining “credit base” for provisions relating to a special rule for partnerships and subchapter S corporations. - § 46: Pub. L. 98–369, § 431(a), substituted provisions defining “nonqualified nonrecourse financing” for provisions defining “qualified person”. - § 46: Pub. L. 98–369, § 16(a), repealed amendments made by Pub. L. 97–34, § 302(c). See 1981 Amendment note below. - § 46: Pub. L. 98–369, § 431(a), substituted provisions relating to the application of this paragraph to partnerships and subchapter S corporations for provisions defining “related person”. - § 46: Pub. L. 98–369, § 431(d)(1), substituted provisions that subpar. (A) shall not apply with respect to qualified energy property for provisions that subpar. (A) would not apply to amounts borrowed with respect to qualified energy property (other than amounts described in subpar. (B)). - § 46: Pub. L. 98–369, § 474(o)(2), substituted “subsection (b)(2)” for “section 46(a)(2)(C)”. - § 46: Pub. L. 98–369, § 431(d)(2), substituted provisions that qualified energy property means energy property to which (but for this subpar.) subpar. (A) applies and not more than 75 percent of the basis of which is attributable to nonqualified nonrecourse financing for provisions that qualified energy property meant energy property to which (but for this subpar.) subpar. (A) applied and with respect to which the taxpayer was at risk (within the meaning of section 465(b) without regard to par. (5) thereof) in an amount equal to at least 25 percent of the basis of the property. - § 46: Pub. L. 98–369, § 431(d)(3), substituted “nonqualified nonrecourse financing” for “nonrecourse financing (other than financing described in section 46(c)(8)(B)(ii))”. - § 46: Pub. L. 98–369, § 431(b)(1), substituted provisions relating to subsequent decreases in nonqualified nonrecourse financing with respect to the property for provisions relating to subsequent increases in the taxpayer’s amount at risk with respect to the property. - § 46: Pub. L. 98–369, § 474(o)(3)(A), struck out “and the $25,000 amount specified under subparagraphs (A) and (B) of subsection (a)(3)”, and substituted “such qualified investment” for “such items”, in provisions following subpar. (B). - § 46: Pub. L. 98–369, § 474(o)(3)(B), substituted “qualified investment” for “the items described therein” in introductory provisions. - § 46: Pub. L. 98–369, § 31(b), added par. (4). - § 46: Pub. L. 98–369, § 474(o)(4)(A), substituted “no credit determined under subsection (a) shall be allowed by section 38” for “no credit shall be allowed by section 38” in introductory provisions. - § 46: Pub. L. 98–369, § 474(o)(4)(B), substituted “the credit determined under subsection (a) and allowable by section 38” for “the credit allowable by section 38”. - § 46: Pub. L. 98–369, § 474(o)(4)(A), substituted “no credit determined under subsection (a) shall be allowed by section 38” for “no credit shall be allowed by section 38” in introductory provisions. - § 46: Pub. L. 98–369, § 474(o)(4)(B), substituted “the credit determined under subsection (a) and allowable by section 38” for “the credit allowable by section 38”. - § 46: Pub. L. 98–369, § 474(o)(4)(C), substituted “the credit determined under subsection (a) and allowed by section 38” for “the credit allowed by section 38” in introductory provisions. - § 46: Pub. L. 98–369, § 474(o)(5), substituted “the credit determined under subsection (a) and allowable under section 38” for “the credit allowable under section 38” in two places, and “(within the meaning of the first sentence of subsection (c)(3)(B))” for “(within the meaning of subsection (a)(7)(C))”. - § 46: Pub. L. 98–369, § 474(o)(6), substituted “the limitation of section 38(c)” for “the limitation of subsection (a)(3)”. - § 46: Pub. L. 98–369, § 474(o)(7), substituted “the credit determined under subsection (a) and allowable to the organization under section 38” for “the credit allowable to the organization under section 38” and “the limitation contained in section 38(c)” for “the limitation contained in subsection (a)(3)”. ## § 47: Rehabilitation credit - § 47(a): Pub. L. 98–369, § 474(o)(8), substituted “under section 39” for “under section 46(b)”. - § 47(c): Pub. L. 98–369, § 474(o)(9), substituted “subpart A, B, or D” for “subpart A”. - § 47(d): Pub. L. 98–369, § 431(b)(2), substituted “Increases in nonqualified nonrecourse financing” for “Property ceasing to be at risk” in heading. - § 47(d)(1): Pub. L. 98–369, § 431(b)(2), substituted provisions relating to increases in tax liability resulting from increases in nonqualified nonrecourse financing for provisions relating to increases in tax liability resulting from the taxpayer ceasing to be at risk with respect to certain property. - § 47(d)(2): Pub. L. 98–369, § 431(b)(2), substituted provisions that for purposes of par. (1), transfers of debt, or agreements to transfer, occurring more than one year after the initial borrowing shall not be treated as increasing nonqualified nonrecourse financing with respect to the taxpayer for provisions that for purposes of par. (1), such transfers (or agreements to transfer) by a qualified person to a nonqualified person would not cause the taxpayer to be treated as ceasing to be at risk. - § 47(d)(3)(A): Pub. L. 98–369, § 431(d)(4), substituted “increasing the amount of nonqualified nonrecourse financing (within the meaning of section 46(c)(8))” for “ceasing to be at risk”. - § 47(d)(3)(B): Pub. L. 98–369, § 431(d)(5), struck out “other than a loan described in section 46(c)(8)(B)(ii)” after “section 46(c)(8)(F)(iv)”. - § 47: Pub. L. 98–369, § 421(b)(7), added subsec. (e). ## § 48: Energy credit - § 48(a)(5): Pub. L. 98–369, § 31(b), amended par. (5) generally, to extend its scope to encompass property used by foreign persons or entities and to create an exception for short-term leases by substituting provisions covered by subpars. (A) to (D) for former provisions which had directed that property used by the United States, any State or political subdivision thereof, any international organization, or any agency or instrumentality of any of the foregoing not be treated as section 38 property, that for purposes of that prohibition the International Telecommunications Satellite Consortium, the International Maritime Satellite Organization, and any successor organization of such Consortium or Organization not be treated as an international organization, and that if any qualified rehabilitated building were used by the governmental unit pursuant to a lease, this paragraph would not apply to that portion of the basis of such building attributable to qualified rehabilitation expenditures. - § 48(b): Pub. L. 98–369, § 114(a), amended subsec. (b) generally, substituting a general definition of “new section 38 property” for definitions which made reference to property constructed, reconstructed or erected after December 31, 1961, and adding pars. (2) and (3). - § 48(c)(2)(A): Pub. L. 98–369, § 11(a), substituted “$125,000 ($150,000 for taxable years beginning after 1987)” for “$150,000 ($125,000 for taxable years beginning in 1981, 1982, 1983, or 1984)” in first sentence, and “$125,000 (or $150,000” for “$150,000 (or $125,000” in two places in second sentence. - § 48(c)(2)(B): Pub. L. 98–369, § 11(b), substituted “$62,500 ($75,000 for taxable years beginning after 1987)” for “$75,000 ($62,500 for taxable years beginning in 1981, 1982, 1983, or 1984)”. - § 48(c)(3)(B): Pub. L. 98–369, § 474(o)(10), substituted “section 39” for “section 46(b)”. - § 48(d)(1): Pub. L. 98–369, § 474(o)(11), substituted “section 38(c)(3)(B)” for “section 46(a)(6)”. - § 48(d): Pub. L. 98–369, § 431(c), added par. (6). - § 48: Pub. L. 98–369, § 474(o)(12), struck out par. (3) which provided that the $25,000 amount specified under subparagraphs (A) and (B) of section 46(a)(3) applicable to an estate or trust be reduced to an amount which bore the same ratio to $25,000 as the amount of the qualified investment allocated to the estate or trust under paragraph (1) to the entire amount of the qualified investment. - § 48: Pub. L. 98–369, § 1043(a), added subpar. (E). - § 48: Pub. L. 98–369, § 111(e)(8)(A), (B), substituted “real property” for “property” in two places, and “18 (15 years in the case of low-income housing)” for “15”. - § 48: Pub. L. 98–369, § 31(c)(2), inserted “The preceding sentence shall not apply to any expenditure to the extent subsection (f)(12) or (j) of section 168 applies to such expenditure.” - § 48: Pub. L. 98–369, § 111(e)(8)(C), substituted “18 years (15 years in the case of low-income housing)” for “15 years”. - § 48: Pub. L. 98–369, § 31(c)(1), added cl. (vi). - § 48: Pub. L. 98–369, § 111(e)(8)(D), added subpar. (D). - § 48: Pub. L. 98–369, § 113(b)(3)(B), inserted “or at-risk rules” after “test” in heading. - § 48: Pub. L. 98–369, § 113(b)(3)(A), inserted “, section 46(c)(8), or section 46(c)(9)”. - § 48: Pub. L. 98–369, § 113(b)(3)(C), substituted “used” for “issued”. - § 48: Pub. L. 98–369, § 721(x)(1), substituted “S corporation” for “electing small business corporation”. - § 48: Pub. L. 98–369, § 474(o)(13), substituted “section 46(b)(2)” for “section 46(a)(2)(C)”. - § 48: Pub. L. 98–369, § 735(c)(1), substituted “the chassis of which is an automobile bus chassis and the body of which is an automobile bus body” for “the chassis and body of which is exempt under section 4063(a)(6) from the tax imposed by section 4061(a)”. - § 48: Pub. L. 98–369, § 474(o)(14), substituted “subsection (b)” for “subsection (a)(2)”. - § 48: Pub. L. 98–369, § 474(o)(15), repealed subsec. (n). For continuing applicability of par. (4) of subsec. (n), see section 474(o)(15) of Pub. L. 98–369, set out in Effective Date of 1984 Amendment note below. - § 48: Pub. L. 98–369, § 474(o)(16), redesignated par. (8) as (3) and struck out former pars. (3) to (7) which defined “employee plan credit”, “basic employee plan credit”, “matching employee plan credit”, “basic employee plan percentage”, and “matching employee plan percentage”, respectively. - § 48: Pub. L. 98–369, § 474(o)(17)(A), substituted “section 46(a)” for “section 46(a)(2)”. - § 48: Pub. L. 98–369, § 474(o)(17), substituted “section 46(a)” for “section 46(a)(2)” and “section 46(b)(1)” for “section 46(a)(2)(B)”. - § 48: Pub. L. 98–369, § 474(o)(17)(B), substituted “section 46(b)(1)” for “section 46(a)(2)(B)”. - § 48: Pub. L. 98–369, § 712(b), added par. (6) relating to adjustment in basis of interest in partnership or S corporation. - § 48: Pub. L. 98–369, § 113(b)(4), added par. (6) relating to special rule for qualified films. - § 48: Pub. L. 98–369, § 113(a)(1), added subsec. (r). Former subsec. (r) redesignated (s). - § 48: Pub. L. 98–369, § 474(o)(18), substituted “section 381(c)(26)” for “section 381(c)(23)”. - § 48: Pub. L. 98–369, § 113(a)(1), redesignated former subsec. (r) as (s). ## § 51: Amount of credit - § 51(a): Pub. L. 98–369, § 474(p)(1), substituted “For purposes of section 38, the amount of the targeted jobs credit determined under this section” for “The amount of the credit allowable by section 44B” in introductory provisions. - § 51(b)(2): Pub. L. 98–369, § 1041(c)(4), struck out “(or, in the case of a vocational rehabilitation referral, the day the individual begins work for the employer on or after the beginning of such individual’s rehabilitation plan)” after “begins work for the employer”. - § 51(c)(2): Pub. L. 98–369, § 2638(b), designated existing provisions as subpar. (A), inserted par. (2) heading, and added subpar. (B). - § 51(c)(3): Pub. L. 98–369, § 1041(a), substituted “December 31, 1985” for “December 31, 1984”. - § 51(d)(6)(B)(ii): Pub. L. 98–369, § 2663(j)(5)(A), substituted “Secretary of Health and Human Services” for “Secretary of Health Education and Welfare”. - § 51(d)(11): Pub. L. 98–369, § 712(n), made determination respecting membership of a qualified summer youth employee or youth participating in a qualified cooperative education program with respect to an employer applicable for purposes of determining whether such individual is a member of another targeted group with respect to such employer. - § 51(d)(12): Pub. L. 98–369, § 1041(c)(3), substituted “(or if later, on May 1 of the calendar year involved)” for “(as defined in paragraph (14))”. - § 51(d): Pub. L. 98–369, § 1041(c)(2), inserted “For purposes of the preceding sentence, if on or before the day on which such individual begins work for the employer, such individual has received from a designated local agency (or other agency or organization designated pursuant to a written agreement with such designated local agency) a written preliminary determination that such individual is a member of a targeted group, then ‘the fifth day’ shall be substituted for ‘the day’ in such sentence.” - § 51(g): Pub. L. 98–369, § 474(p)(2), substituted “the targeted jobs credit determined under this subpart” for “the credit provided by section 44B”. - § 51(j): Pub. L. 98–369, § 1041(c)(1), added subsec. (j) relating to treatment of successor employers, and employees performing services for other persons. - § 51(j): Pub. L. 98–369, § 474(p)(3), added subsec. (j) relating to election to have targeted jobs credit not apply. ## § 52: Special rules - § 52(a): Pub. L. 98–369, § 474(p)(4), substituted “the credit (if any) determined under section 51(a) with respect to each such member” for “the credit (if any) allowable by section 44B to each such member”. - § 52(b)(2): Pub. L. 98–369, § 474(p)(5), substituted “the credit (if any) determined under section 51(a)” for “the credit (if any) allowable by section 44B”. - § 52(c): Pub. L. 98–369, § 474(p)(6), substituted “credit shall be allowed under section 38 for any targeted jobs credit determined under this subpart” for “credit shall be allowed under section 44B”. - § 52(d)(2): Pub. L. 98–369, § 474(p)(7), substituted “, subject to section 38(c), a credit under section 38(a)” for “, subject to section 53 a credit under section 44B”. ## § 61: Gross income defined - § 61(a)(1): Pub. L. 98–369 inserted reference to fringe benefits. ## § 62: Adjusted gross income defined - § 62: Pub. L. 98–369, § 491(d)(2), substituted “and annuity” for “annuity, and bond purchase” in heading, and substituted “the deduction allowed by section 404” for “the deductions allowed by section 404 and section 405(c)” in text. ## § 66: Treatment of community income - § 66: Pub. L. 98–369, § 424(b)(2)(A), struck out “where spouses live apart” in section catchline. - § 66(a): Pub. L. 98–369, § 424(b)(2)(B), substituted “Treatment of community income where spouses live apart” for “General rule” in heading. - § 66(b), § 66(c), § 66(d): Pub. L. 98–369, § 424(b)(1), added subsecs. (b) and (c) and redesignated former subsec. (b) as (d). ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(e)(5)(D): Pub. L. 98–369, § 523(b)(1), substituted “Except as provided in paragraph (7), this” for “This”. - § 72(e)(5)(D)(ii)(IV): Pub. L. 98–369, § 211(b)(1), which directed substitution of “section 818(a)(3)” for “805(d)(3)” in subpar. (D)(i)(IV), was executed to subpar. (D)(ii)(IV) to reflect the probable intent of Congress. - § 72(e)(7): Pub. L. 98–369, § 523(a), added par. (7). - § 72(k): Pub. L. 98–369, § 421(b)(1), repealed subsec. (k) relating to payments in discharge of alimony. - § 72(m)(5): Pub. L. 98–369, § 713(c)(1)(B), substituted “key employees” for “owner-employees” in heading. - § 72(m)(5)(A): Pub. L. 98–369, § 521(d)(1), (2), substituted “5-percent owner” for “key employee” wherever appearing and struck out “in a top-heavy plan” at end of cl. (i). - § 72(m)(5)(A): Pub. L. 98–369, § 713(c)(1)(A), substituted “as a key employee” for “as an owner-employee” in cl. (i). - § 72(m)(5)(C): Pub. L. 98–369, § 521(d)(3), substituted “the term ‘5 percent owner’ ” for “the terms ‘key employee’ and ‘top-heavy plan’ ”. - § 72(m)(9): Pub. L. 98–369, § 713(d)(1), repealed par. (9) relating to return of excess contributions before due date of return. - § 72(o)(1): Pub. L. 98–369, § 491(d)(3), substituted “402 and 403” for “402, 403, and 405”. - § 72(o)(3)(A): Pub. L. 98–369, § 713(b)(1)(A), inserted “(other than the exception contained in paragraph (2) thereof)”. - § 72(o)(4): Pub. L. 98–369, § 491(d)(4), substituted “and 408(d)(3)” for “408(d)(3), and 409(b)(3)(C)”. - § 72(p)(2)(A): Pub. L. 98–369, § 713(b)(1)(B), inserted at end “For purposes of clause (ii), the present value of the nonforfeitable accrued benefit shall be determined without regard to any accumulated deductible employee contributions (as defined in subsection (o)(5)(B)).” - § 72(p)(2)(A)(ii): Pub. L. 98–369, § 713(b)(4), substituted as cl. (ii) “the greater of (I) one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan, or (II) $10,000” for “½ of the present value of the nonforfeitable accrued benefit of the employee under the plan (but not less than $10,000)”. - § 72(p)(3): Pub. L. 98–369, § 523(b)(2), inserted “other than a plan described in subsection (e)(7)”. - § 72(q)(1): Pub. L. 98–369, § 222(a), amended par. (1) generally, striking out designation “(A) In general.—” preceding text, substituting “which is includible in gross income” for “includible in gross income which is properly allocable to any investment in the annuity contract made during the 10-year period ending on the date such amount was received by the taxpayer”, and striking out former subpar. (B), which had provided that for purposes of subpar. (A), the amount includible in gross income would be allocated to the earliest investment in the contract with respect to which amounts had not been previously fully allocated under this par. - § 72(s), § 72(t): Pub. L. 98–369, § 222(b), added subsec. (s) and redesignated former subsec. (s) as (t). ## § 79: Group-term life insurance purchased for employees - § 79(b)(1): Pub. L. 98–369, § 223(a)(2), struck out “either has reached the retirement age with respect to such employer or” before “is disabled”. - § 79(d)(1): Pub. L. 98–369, § 223(b), designated existing provisions as subpar. (A) and added subpar. (B). - § 79(e): Pub. L. 98–369, § 223(a)(1), added subsec. (e). ## § 80: Restoration of value of certain securities - § 80(a): Pub. L. 98–369 substituted “801” for “802”. ## § 83: Property transferred in connection with performance of services - § 83(e)(5): Pub. L. 98–369 added par. (5). ## § 86: Social security and tier 1 railroad retirement benefits - § 86(f)(1): Pub. L. 98–369, § 2661(o)(1), added par. (1). Former par. (1) redesignated par. (2). - § 86(f)(1): Pub. L. 98–369, § 474(r)(2), substituted “section 32(c)(2)” for “section 43(c)(2)”. - § 86(f)(2): Pub. L. 98–369, § 2661(o)(1), redesignated pars. (1) to (4) as (2) to (5), respectively. ## § 87: Alcohol and biodiesel fuels credits - § 87: Pub. L. 98–369 amended section generally, substituting “the amount of the alcohol fuel credit determined with respect to the taxpayer for the taxable year under section 40(a)” for “an amount equal to the amount of the credit allowable to the taxpayer under section 44E for the taxable year (determined without regard to subsection (e) thereof)”. ## § 88: Certain amounts with respect to nuclear decommissioning costs - Enacted 26 U.S.C. § 88. ## § 101: Certain death benefits - § 101(b): Pub. L. 98–369, § 713(e), amended subpar. (B) generally, substituting “certain distributions” for “certain lump sum distributions” in heading, substituting “amount paid or distributed” for “lump sum distribution described in the second sentence of paragraph (2)(B)” in introductory text and adding cls. (i) and (ii). - § 101(e): Pub. L. 98–369, § 421(b)(2), repealed subsec. (e) relating to payments of alimony or of income of an estate or trust in case of divorce, etc. - § 101(f): Pub. L. 98–369, § 221(b)(2)(B), inserted “issued before January 1, 1985” in heading. - § 101(f)(1): Pub. L. 98–369, § 221(b)(2)(A), inserted “issued before January 1, 1985” in introductory text. ## § 103: Interest on State and local bonds - § 103(b): Pub. L. 98–369, § 628(e), inserted “For purposes of subparagraph (A), any property shall not be treated as failing to be residential rental property merely because part of the building in which such property is located is used for purposes other than residential rental purposes.” - § 103(b): Pub. L. 98–369, § 474(r)(4), substituted “section 30(b)(2)(A)” for “section 44F(b)(2)(A)”. - § 103(b): Pub. L. 98–369, § 630, designated existing provisions as cl. (i) and added cls. (ii) and (iii). - § 103(b): Pub. L. 98–369, § 628(c), added subpar. (P). - § 103(b): Pub. L. 98–369, § 628(g), repealed par. (7) which related to advance refunding of qualified public facilities. - § 103(b): Pub. L. 98–369, § 628(d), inserted “For purposes of this paragraph— (A) a partnership and each of its partners (and their spouses and minor children) shall be treated as related persons, and (B) an S corporation and each of its shareholders (and their spouses and minor children) shall be treated as related persons.” - § 103(b): Pub. L. 98–369, § 623, added par. (15). - § 103(b): Pub. L. 98–369, § 627, added pars. (16) to (18). - § 103(c): Pub. L. 98–369, § 624(b)(2), struck out “bonds” after “Arbitrage” in heading. - § 103(c)(1): Pub. L. 98–369, § 624(b)(3), inserted “to arbitrage bonds” in heading. - § 103(c): Pub. L. 98–369, § 624(a), added par. (6) and redesignated former par. (6) as (7). - § 103: Pub. L. 98–369, § 622, amended subsec. (h) generally, in par. (1) substituting provisions that obligations are not included in the section if they are federally guaranteed for provisions which excluded obligations guaranteed, in whole or part, by the U.S. under a program to conserve energy, or under other Federal or State programs, in par. (2) substituting provisions defining “federally guaranteed” for provisions setting forth obligations to which this subsection applies, and adding pars. (3) to (5). - § 103: Pub. L. 98–369, § 628(a)(1), inserted “In the case of an obligation issued after December 31, 1983, such obligation shall not be treated as described in this paragraph unless the appropriate requirements of subsections (b), (c), (h), (k), (l), and (n) of this section and section 103A are met with respect to such obligation. For purposes of applying such requirements, a possession of the United States shall be treated as a State; except that clause (ii) of subsection (n)(4)(A) shall not apply.” - § 103: Pub. L. 98–369, § 628(a)(2), substituted “is exempt from tax under this title without regard to any provision of law which is not contained in this title and which is not contained in a revenue Act” for “is exempt from taxation under any provision of this title”. - § 103: Pub. L. 98–369, § 628(a)(3), added par. (3). - § 103: Pub. L. 98–369, § 621, added subsec. (n). Former subsec. (n), relating to cross references, redesignated (o). - § 103: Pub. L. 98–369, § 626(a), added subsec. (o) relating to consumer loan bonds. - § 103: Pub. L. 98–369, § 621, redesignated subsec. (n), relating to cross references, as (o). ## § 105: Amounts received under accident and health plans - § 105(b): Pub. L. 98–369 inserted “Any child to whom section 152(e) applies shall be treated as a dependent of both parents for purposes of this subsection.” ## § 108: Income from discharge of indebtedness - § 108(b)(2)(B): Pub. L. 98–369, § 474(r)(5), substituted provisions relating to research credits and general business credits covering carryovers to or from the taxable year of a discharge of an amount for purposes of determining the amount allowable as a credit under section 30 (relating to credit for increasing research activities), or section 38 (relating to general business credit), and directing that there shall not be taken into account any portion of a carryover which is attributable to the employee stock ownership credit determined under section 41 for former provisions covering carryovers to or from the taxable year of the discharge of an amount for purposes of determining the amount of a credit allowable under section 38 (relating to investment in certain depreciable property), section 40 (relating to expenses of work incentive programs), section 44B (relating to credit for employment of certain new employees), section 44E (relating to alcohol used as a fuel), or section 44F (relating to credit for increasing research activities), and directing that, for purposes of clause (i), there could not be taken into account any portion of a carryover which was attributable to the employee plan credit (within the meaning of section 48(o)(3)). - § 108(d)(6): Pub. L. 98–369, § 721(b)(2), struck out “or S corporation shareholder level” in heading and second sentence which provided that “In the case of an S corporation, subsections (a), (b), and (c) shall apply at the shareholder level.”. See par. (7)(A). - § 108(d)(7), § 108(d)(8), § 108(d)(9), § 108(d)(10): Pub. L. 98–369, § 721(b)(2), added par. (7) and redesignated former pars. (7) to (9) as (8) to (10), respectively. - § 108(e)(10): Pub. L. 98–369, § 59(a), added par. (10). - § 108(e)(10): Pub. L. 98–369, § 59(b)(1), which added subpar. (C), effective as if included in the amendments made by section 806(e) and (f) of Pub. L. 94–455, was repealed by Pub. L. 99–514, § 621(e), (f)(2), eff. Jan. 1, 1986, with certain exceptions, see Effective Date of 1986 Amendment note below. - § 108(f): Pub. L. 98–369, § 1076(a), added subsec. (f). ## § 111: Recovery of tax benefit items - § 111: Pub. L. 98–369 amended section generally, substituting provisions relating to recovery of tax benefit items for provisions relating to recovery of bad debts, prior taxes, and delinquency amounts. ## § 117: Qualified scholarships - § 117(d): Pub. L. 98–369 added subsec. (d). ## § 118: Contributions to the capital of a corporation - § 118(c), § 118(d): Pub. L. 98–369 added subsec. (c) and redesignated former subsec. (c) as (d). ## § 125: Cafeteria plans - § 125(b): Pub. L. 98–369, § 531(b)(3), amended subsec. (b) generally, substituting “and key employees” for “where plan is discriminatory” in heading and “Highly compensated participants” for “In general” in par. (1) heading, adding par. (2), redesignating former par. (2) as (3), and inserting therein references to par. (2) and to taxable year of key employee. - § 125(c): Pub. L. 98–369, § 531(b)(2)(B), inserted “statutory” before “nontaxable benefits” in two places. - § 125(d)(1): Pub. L. 98–369, § 531(b)(1), substituted “among 2 or more benefits consisting of cash and statutory nontaxable benefits” for “among two or more benefits” in cl. (B) and struck out “The benefits which may be chosen may be nontaxable benefits, or cash, property, or other taxable benefits.” - § 125(f): Pub. L. 98–369, § 531(b)(2)(A), amended subsec. (f) generally, inserting “Statutory” in heading and “statutory” before “nontaxable benefit” in text, providing that the benefit be excluded by reason of an express provision of this chapter (other than section 117, 124, 127, or 132), and extending the benefit to include group term life insurance. - § 125(h): Pub. L. 98–369, § 531(b)(4)(A), added subsec. (h) relating to reporting requirements provisions. Former subsec. (h) redesignated (i). - § 125(i): Pub. L. 98–369, § 531(b)(4)(A), redesignated subsec. (h) as (i). ## § 129: Dependent care assistance programs - § 129(b)(2): Pub. L. 98–369, § 474(r)(6)(A), substituted “section 21(d)(2)” for “section 44A(e)(2)”. - § 129(e)(1): Pub. L. 98–369, § 474(r)(6)(B), substituted “section 21(b)(2)” for “section 44A(c)(2)”. - § 129(e)(2): Pub. L. 98–369, § 474(r)(6)(C), substituted “section 32(c)(2)” for “section 43(c)(2)”. ## § 132: Certain fringe benefits - Enacted 26 U.S.C. § 132. ## § 140: Cross references to other Acts - § 140: Pub. L. 98–369, §§ 531(a)(1), 543(a), successively renumbered sections 132 and 133 of this title as this section. - § 140(a): Pub. L. 98–369, § 2661(o)(2), struck out par. (6) relating to railroad retirement annuities and pensions, struck out par. (7) relating to railroad unemployment benefits, and redesignated par. (8) as (6). ## § 151: Allowance of deductions for personal exemptions - § 151(e): Pub. L. 98–369 added par. (5). ## § 152: Dependent defined - § 152(e): Pub. L. 98–369, § 423(a), amended subsec. (e) generally, and in substantially revising support test provisions, enacted par. (1) custodial parent exemption, former par. (1) declaring the general rule that where a child received over one-half of his calendar year support from parents who were divorced or legally separated under a decree of divorce or separate maintenance, or were separated under a written separation agreement and the child was in the custody of one or both parents for more than one-half of the calendar year, the child would be treated as receiving over half of his support from the parent having custody for a greater portion of the calendar year unless treated under special rule provision as having received over half of his support from the parent not having custody; enacted par. (2) release of custodial parent exemption for the year, former par. (2) declaring the special rule that parent without custody would be deemed as furnishing over half of the support where the decree of divorce or separate maintenance, or written agreement, covering the taxable year, provided that parent without custody should be entitled to the section 151 deduction for the child and such parent provided at least $600 calendar year support, or alternatively, such parent without custody provided $1,200 or more calendar year support and the parent with custody did not establish more support of the child than the parent without custody; redesignated as par. (3) former par. (4) provision respecting exception for multiple-support agreement, deleting former par. (3) respecting requirement of an itemized statement of expenditures to resolve more support claims; added par. (4) respecting exception for certain pre-1985 instruments; added par. (5) enunciating special rule for support received from new spouse of parent, deleting former par. (5) regulations prescription provision; and added par. (6) cross reference provision. - § 152(e)(6): Pub. L. 98–369, § 482(b)(2), substituted “section 213(d)(5)” for “section 213(d)(4)”. ## § 162: Trade or business expenses - § 162(i): Pub. L. 98–369, § 2354(d), substituted “section 213(d)” for “section 213(e)”. - § 162(j): Pub. L. 98–369, § 512(b), added par. (3). ## § 163: Interest - § 163(d)(3): Pub. L. 98–369, § 56(b), designated existing provisions as cl. (i) and added cl. (ii). - § 163(e)(1): Pub. L. 98–369, § 42(a)(3), substituted “debt instrument” for “bond” in two places and struck out “by an issuer (other than a natural person)” before “, the portion of the original issue”. - § 163(e)(2): Pub. L. 98–369, § 42(a)(3), substituted provisions relating to debt instruments for provisions relating to bonds. - § 163(e)(3): Pub. L. 98–369, § 128(c), added par. (3) relating to special rule for original issue discount on obligation held by related foreign person. Former par. (3), relating to exceptions, redesignated (4). - § 163(e)(3): Pub. L. 98–369, § 42(a)(3), added par. (3) relating to exceptions. - § 163(e)(4): Pub. L. 98–369, § 128(c), redesignated par. (3), relating to exceptions, as (4). - § 163(e)(4): Pub. L. 98–369, § 42(a)(3), added par. (4) relating to cross references. - § 163(f)(2): Pub. L. 98–369, § 127(f), redesignated existing provision as subcl. (I), and in subcl. (I) as so redesignated, inserted reference to subpar. (A) and substituted “or” for “and”, and added subcl. (II). - § 163(g), § 163(h): Pub. L. 98–369, § 612(c), added subsec. (g) and redesignated former subsec. (g) as (h). ## § 164: Taxes - § 164(f): Pub. L. 98–369 redesignated pars. (2) and (3) as pars. (1) and (2), respectively. Former par. (1), which referred to section 1451 for provisions disallowing any deduction for the payment of the tax imposed by subchapter B of chapter 3 (relating to tax-free covenant bonds), was struck out. ## § 165: Losses - § 165(c)(3): Pub. L. 98–369, § 711(c)(2)(A)(i), extended limitation to losses of property not connected with a transaction entered into for profit. - § 165(h): Pub. L. 98–369, § 711(c)(2)(A)(ii), substituted heading “Treatment of casualty gains and losses” for “Casualty and theft losses”; substituted par. (1) “$100 limitation per casualty” provision for former par. (1) “General rule” provision stating that: “Any loss of an individual described in subsection (c)(3) shall be allowed for any taxable year only to the extent that— - § 165(h): Pub. L. 98–369, § 711(c)(1), amended par. (2) by redesignating subpar. (B) as (C) and by adding a new subpar. (B) relating to the determination of adjusted gross income in case of estates and trusts. - § 165(j)(3): Pub. L. 98–369, § 42(a)(4), substituted “section 1287” for “subsection (d) of section 1232”. - § 165(k), § 165(l): Pub. L. 98–369, § 1051(a), added subsec. (k) and redesignated former subsec. (k) as (l). ## § 166: Bad debts - § 166(d)(1)(B): Pub. L. 98–369 substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 167: Depreciation - § 167: Pub. L. 98–369 substituted “January 1, 1987” for “January 1, 1984” wherever appearing. ## § 168: Accelerated cost recovery system - § 168(b)(2): Pub. L. 98–369, § 111(a)(1), substituted “18-year real property” for “15-year real property” in heading and wherever appearing in text. - § 168(b)(2): Pub. L. 98–369, § 111(d), inserted in provision following cl. (ii) “(using a mid-month convention)”. - § 168(b)(2)(A): Pub. L. 98–369, § 111(b)(3)(A), struck out in text following cl. (ii) provision that for purposes of this subparagraph “low-income housing” means property described in section 1250(a)(1)(B)(i), (ii), (iii), or (iv). - § 168(b)(2)(A): Pub. L. 98–369, § 111(a)(2), substituted “18-year recovery period” for “15-year recovery period”. - § 168(b)(2)(A): Pub. L. 98–369, § 111(a)(3), struck out “(200 percent declining balance method in the case of low-income housing)” after “declining balance method”. - § 168(b)(2)(B): Pub. L. 98–369, § 111(d), inserted “(using a mid-month convention)”. - § 168(b)(3)(A): Pub. L. 98–369, § 111(e)(9)(A), substituted “under paragraph (1), (2), or (4)” for “under paragraphs (1) and (2)”. - § 168(b)(3)(A): Pub. L. 98–369, § 111(e)(9)(B), substituted in table “18-year real property and low-income housing” for “15-year real property” and “18” for “15” and struck out “years” after “45”. - § 168(b)(3)(B): Pub. L. 98–369, § 111(e)(2), substituted “18-year real property or low-income housing,” for “15-year real property”. - § 168(b)(3)(B): Pub. L. 98–369, § 111(e)(1), substituted “18-year real property or low-income housing” for “15-year real property”. - § 168(b)(4): Pub. L. 98–369, § 111(b)(1), added par. (4). - § 168(c): Pub. L. 98–369, § 111(b)(3)(B), amended subpar. (D) generally, substituting “18-year real property” for “15-year real property” in heading and text and including within such definition section 1250 property which is not low-income housing. - § 168(c): Pub. L. 98–369, § 111(b)(2), added subpar. (F) and redesignated former subpar. (F) as (G). - § 168(d)(2)(B): Pub. L. 98–369, § 111(e)(3), substituted “18-year real property or low-income housing” for “15-year real property”. - § 168(e): Pub. L. 98–369, § 113(b)(2)(A), substituted “title” for “section” in provision preceding par. (1). - § 168(e)(5): Pub. L. 98–369, § 113(b)(1), added par. (5). - § 168(f)(1)(B): Pub. L. 98–369, § 111(c), designated existing provision as cl. (i), inserted heading, inserted “, and before March 16, 1984,” and struck out provision that for the purposes of the preceding sentence, the method of computing the deduction allowable with respect to such first component be determined as if it were a separate building, which provision is covered in cl. (iii), and added cls. (ii) and (iii). - § 168(f)(2): Pub. L. 98–369, § 111(e)(1), substituted “18-year real property or low-income housing” for “15-year real property” wherever appearing. - § 168(f)(2): Pub. L. 98–369, § 111(e)(4), substituted in table “18-year real property or low-income housing” for “15-year real property”. - § 168(f)(2), § 168(f)(5): Pub. L. 98–369, § 111(e)(1), substituted “18-year real property or low-income housing” for “15-year real property”. - § 168(f): Pub. L. 98–369, § 12(a)(3)(A), in par. (8) as amended by section 209(a) of Pub. L. 97–248, substituted “1990” for “1986”. - § 168(f): Pub. L. 98–369, § 628(b)(1), designated provisions preceding cl. (i) and cl. (i) as subpar. (C), and struck out cls. (ii), (iii), and (iv) which dealt with the application of subpar. (A) to a sewage or solid waste disposal facility, an air or water pollution control facility or a facility which has received an urban development action grant under section 119 of the Housing and Community Development Act of 1974. - § 168(f): Pub. L. 98–369, § 628(b)(2), redesignated subpar. (E) as (D) and struck out former subpar. (D) which read as follows: “For purposes of this paragraph, the term ‘existing facility’ means a plant or property in operation before July 1, 1982.” - § 168(f): Pub. L. 98–369, § 32(a), added second par. (13) relating to motor vehicle operating leases. - § 168(f): Pub. L. 98–369, § 113(a)(2), added par. (14). - § 168(g)(2): Pub. L. 98–369, § 31(d), inserted “If any property (other than section 1250 class property) does not have a present class life within the meaning of the preceding sentence, the Secretary may prescribe a present class life for such property which reasonably reflects the anticipated useful life of such property to the industry or other group.” - § 168(i)(1): Pub. L. 98–369, § 474(r)(7)(D), in subsec. (i) as amended by section 209(b) of Pub. L. 97–248, substituted “subparts A, B, and D of part IV” for “subpart A of part IV”. - § 168(i)(1): Pub. L. 98–369, § 474(r)(7)(A), in subsec. (i) as added by section 208(a)(1) of Pub. L. 97–248, substituted “subparts A, B, and D of part IV” for “subpart A of part IV”. - § 168(i)(1): Pub. L. 98–369, § 612(e)(5), in subsec. (i) as amended by section 209(b) of Pub. L. 97–248, substituted “section 26(b)(2)” for “section 25(b)(2)”. - § 168(i)(1): Pub. L. 98–369, § 612(e)(4), in subsec. (i) as added by section 208(a)(1) of Pub. L. 97–248, substituted “section 26(b)(2)” for “section 25(b)(2)”. - § 168(i)(1): Pub. L. 98–369, § 474(r)(7)(E), in subsec. (i) as amended by section 209(b) of Pub. L. 97–248, substituted “section 25(b)(2)” for “the last sentence of section 53(a)”. - § 168(i)(1): Pub. L. 98–369, § 474(r)(7)(B), in subsec. (i) as added by section 208(a)(1) of Pub. L. 97–248, substituted “section 25(b)(2)” for “the last sentence of section 53(a)”. - § 168(i)(4): Pub. L. 98–369, § 12(a)(3)(B), in subsec. (i) as amended by section 209(b) of Pub. L. 97–248, substituted “1989” for “1985” in cls. (i) and (ii). - § 168(i)(4): Pub. L. 98–369, § 474(r)(7)(C), in subsec. (i) as added by section 208(a)(1) of Pub. L. 97–248, substituted “section 38” for “subpart A of part IV of subchapter A of this chapter”. - § 168(j), § 168(k): Pub. L. 98–369, § 31(a), added subsec. (j) and redesignated former subsec. (j) as (k). ## § 170: Charitable, etc., contributions and gifts - § 170(a)(3): Pub. L. 98–369, § 174(b)(5)(A), substituted “section 267(b) or 707(b)” for “section 267(b)”. - § 170(b)(1)(A)(vii): Pub. L. 98–369, § 301(c)(2)(A), substituted “subparagraph (E)” for “subparagraph (D)”. - § 170(b)(1)(B): Pub. L. 98–369, § 301(a)(2), inserted at end “If the aggregate of such contributions exceeds the limitation of the preceding sentence, such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution (to which subparagraph (A) does not apply) in each of the 5 succeeding taxable years in order of time.” - § 170(b)(1)(B)(i): Pub. L. 98–369, § 301(a)(1), substituted “30 percent” for “20 percent”. - § 170(b)(1)(C): Pub. L. 98–369, § 301(c)(2)(B), inserted “described in subparagraph (A)” in subpar. (C) heading, and in text of cl. (i) substituted “In the case of charitable contributions described in subparagraph (A) of capital gain property to which subsection (e)(1)(B) does not apply, the total amount of contributions of such property which may be taken into account under subsection (a) for any taxable year shall not exceed 30 percent of the taxpayer’s contribution base for such year. For purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions (other than charitable contributions to which subparagraph (D) applies)” for “In the case of charitable contributions of capital gain property to which subsection (e)(1)(B) does not apply, the total amount of contributions of such property which may be taken into account under subsection (a) for any taxable year shall not exceed 30 percent of the taxpayer’s contribution base for such year. For purposes of this subsection, contributions of capital gain property to which this paragraph applies shall be taken into account after all other charitable contributions”. - § 170(b)(1)(D), § 170(b)(1)(E), § 170(b)(1)(F): Pub. L. 98–369, § 301(c)(1), added subpar. (D) and redesignated former subpars. (D) and (E) as (E) and (F), respectively. - § 170(e)(1): Pub. L. 98–369, § 492(b)(1)(A), struck out in provision following subpar. (B) “1251(c),” after “1250(a)”. - § 170(e)(1)(B)(ii): Pub. L. 98–369, § 301(c)(2)(C), substituted “subsection (b)(1)(E)” for “subsection (b)(1)(D)”. - § 170(e)(3)(C): Pub. L. 98–369, § 492(b)(1)(B), struck out “1251,” after “1250,”. - § 170(e)(5): Pub. L. 98–369, § 301(b), added par. (5). - § 170(f)(7): Pub. L. 98–369, § 1022(b), added par. (7). - § 170(h)(5)(B): Pub. L. 98–369, § 1035(a), designated existing provisions as cl. (i), inserted “Except as provided in clause (ii)”, and added cl. (ii). - § 170(j): Pub. L. 98–369, § 1031(a), added subsec. (j). Former subsec. (j) redesignated (k). - § 170(k): Pub. L. 98–369, § 1031(a), redesignated subsec. (j) as (k). Former subsec. (k) redesignated (l). - § 170(l): Pub. L. 98–369, § 1032(b)(1), added par. (1) and redesignated former pars. (1) to (8) as (2) to (9), respectively. - § 170(l): Pub. L. 98–369, § 1031(a), redesignated subsec. (k) as (l). ## § 172: Net operating loss deduction - § 172(b)(1)(A): Pub. L. 98–369, § 91(d)(3)(A), substituted “(J), and (K)” for “and (J)”. - § 172(b)(1): Pub. L. 98–369, § 177(c)(1)(A), inserted “, or a net operating loss of the Federal Home Loan Mortgage Corporation for any taxable year beginning after December 31, 1984” in introductory provisions. - § 172(b)(1): Pub. L. 98–369, § 177(c)(1)(B), (C), struck out “FNMA” before “mortgage disposition loss”. - § 172(b)(1): Pub. L. 98–369, § 91(d)(1), added subpar. (K). - § 172(b)(2)(A): Pub. L. 98–369, § 722(a)(4)(A), substituted “and (5)” for “and (6)”. - § 172(d)(4)(D): Pub. L. 98–369, § 491(d)(5), struck out “or section 405(c)” after “section 404”. - § 172(d)(6), § 172(d)(7), § 172(d)(8): Pub. L. 98–369, § 722(a)(4)(B), redesignated pars. (7) and (8) as (6) and (7), respectively. - § 172: Pub. L. 98–369, § 91(d)(3)(B), substituted “this section” for “subsection (b)” in introductory provisions. - § 172: Pub. L. 98–369, § 177(c)(2), substituted “Mortgage disposition loss of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation” for “FNMA mortgage disposition loss” in heading and struck out “FNMA” before “mortgage disposition loss” wherever appearing in text. - § 172: Pub. L. 98–369, § 91(d)(3)(B), substituted “this section” for “subsection (b)” in introductory provisions. - § 172: Pub. L. 98–369, § 91(d)(2), added subsec. (k) and redesignated former subsec. (k) as (l). ## § 173: Circulation expenditures - § 173(b): Pub. L. 98–369 substituted “3-year” for “10-year”. ## § 179: Election to expense certain depreciable business assets - § 179(b)(1): Pub. L. 98–369 amended table by dropping items setting applicable amounts of $0 for 1981 and $5,000 for 1982, substituting an applicable amount of $5,000 for 1983, 1984, 1985, 1986, and 1987 for former table items which had set applicable amounts of $5,000 for 1983, $7,500 for 1984, $7,500 for 1985, and $10,000 for 1986 or thereafter, and added items setting applicable amounts of $7,500 for 1988 or 1989, and $10,000 for 1990 or thereafter. ## § 190: Expenditures to remove architectural and transportation barriers to the handicapped and elderly - § 190(c): Pub. L. 98–369, § 1062(b), substituted “$35,000” for “$25,000”. - § 190: Pub. L. 98–369, § 1062(a)(1), amended subsec. (d) generally, substituting provisions that this section shall apply to taxable years beginning after December 31, 1976, and before January 1, 1983, and to taxable years beginning after December 31, 1983, and before January 1, 1986 for provisions which had required the Secretary to prescribe such regulations as might be necessary to carry out this section within 180 days after October 4, 1976. ## § 195: Start-up expenditures - § 195(a): Pub. L. 98–369 amended subsec. (a) generally, substituting provisions dealing with capitalization of expenditures for provisions dealing with election to amortize. - § 195(b): Pub. L. 98–369 amended subsec. (b) generally, substituting provisions dealing with election to amortize for provisions dealing with start-up expenditures. - § 195(c): Pub. L. 98–369 amended subsec. (c) generally, substituting provisions setting forth definitions for provisions dealing with election. - § 195(d): Pub. L. 98–369 amended subsec. (d) generally, substituting provisions dealing with election for provisions dealing with business beginning. ## § 196: Deduction for certain unused business credits - § 196: Pub. L. 98–369 amended section generally, substituting provisions relating to deduction for certain unused business credits for provisions relating to deduction for certain unused investment credits. ## § 213: Medical, dental, etc., expenses - § 213(d)(2), § 213(d)(3): Pub. L. 98–369, § 482(a), added par. (2) and redesignated former par. (2) as (3). Former par. (3) redesignated (4). - § 213(d)(4): Pub. L. 98–369, § 482(a), redesignated par. (3) as (4). Former par. (4), as added by Pub. L. 98–369, § 423(b)(1), redesignated (5). - § 213(d)(4): Pub. L. 98–369, § 423(b)(1), added par. (4). Former par. (4) redesignated (5). - § 213(d)(5): Pub. L. 98–369, § 482(a), redesignated par. (4) as (5). Former par. (5) redesignated (6). - § 213(d)(5): Pub. L. 98–369, § 423(b)(1), redesignated former par. (4) as (5). Former par. (5) redesignated (6). - § 213(d)(5): Pub. L. 98–369, § 711(b), substituted “paragraph (4)” for “paragraph (2)”. - § 213(d)(6): Pub. L. 98–369, § 482(a), redesignated par. (5) as (6). Former par. (6) redesignated (7). - § 213(d)(6): Pub. L. 98–369, § 423(b)(1), (3), redesignated former par. (5) as (6) and substituted therein “limitations of paragraph (5)” for “limitations of paragraph (4)”. Former par. (6) redesignated (7). - § 213(d)(7): Pub. L. 98–369, § 482(a), (b)(1), redesignated par. (6) as (7) and substituted therein “paragraph (6)” for “paragraph (5)”. Former par. (7) redesignated (8). - § 213(d)(7): Pub. L. 98–369, § 423(b)(1), redesignated former par. (6) as (7). - § 213(d)(8): Pub. L. 98–369, § 482(a), redesignated par. (7) as (8). - § 213(e): Pub. L. 98–369, § 474(r)(9), substituted “section 21” for “section 44A”. ## § 219: Retirement savings - § 219(b)(2): Pub. L. 98–369, § 713(d)(2), substituted “not in excess of the limitation in effect under section 415(c)(1)(A)” for “not in excess of $15,000”. - § 219(b)(4): Pub. L. 98–369, § 529(b), struck out par. (4) which related to a deduction for qualified retirement savings of certain divorced individuals. - § 219(b)(4): Pub. L. 98–369, § 422(d)(1), substituted “gross income under section 71 (relating to alimony and separate maintenance payments) by reason of a payment under a decree of divorce or separate maintenance or a written agreement incident to such a decree” for “gross income under paragraph (1) of section 71(a) (relating to decree of divorce or separate maintenance)”. - § 219(d)(2): Pub. L. 98–369, § 491(d)(6), substituted “or 408(d)(3)” for “405(d)(3), 408(d)(3), or 409(b)(3)(C)”. - § 219(e)(1): Pub. L. 98–369, § 491(d)(7), struck out concluding provision that for the purposes of the preceding sentence, the term “individual retirement plan” includes retirement bonds described in section 409 only if the bond was not redeemed within 12 months of its issuance. - § 219(e): Pub. L. 98–369, § 491(d)(8), struck out subpar. (C) which included a qualified bond purchase plan described in section 405(a) within term “qualified employer plan”, and redesignated subpar. (D) as (C). - § 219(f)(1): Pub. L. 98–369, § 529(a), inserted provision that “compensation” shall include any amount includible in the individual’s gross income under section 71 with respect to a divorce or separation instrument described in subparagraph (A) of section 71(b)(2). - § 219(f)(3): Pub. L. 98–369, § 147(c), substituted “not including” for “including”. ## § 243: Dividends received by corporations - § 243(b)(3)(C): Pub. L. 98–369, § 211(b)(3)(A), inserted “and” at end of cl. (ii), struck out cl. (iii) which provided for a $25,000 limitation on small business deduction of life insurance companies under sections 804(a)(3) and 809(d)(10), and redesignated cl. (iv) as (iii). - § 243(b): Pub. L. 98–369, § 211(b)(3)(B), substituted “section 801” for “section 802”. ## § 245: Dividends received from certain foreign corporations - § 245(c): Pub. L. 98–369 added subsec. (c), redesignated former subsec. (c) as (d), and substituted therein “this section” for “subsections (a) and (b)”. ## § 246: Rules applying to deductions for dividends received - § 246(a): Pub. L. 98–369, § 177(b), amended subsec. (a) generally, designating existing provisions as par. (1) and adding par. (2). - § 246(b)(1): Pub. L. 98–369, § 801(b)(2)(A), substituted “subsection (a) or (b) of section 245” for “245” in two places. - § 246(b)(1): Pub. L. 98–369, § 53(d)(2), substituted “without regard to any adjustment under section 1059, and without regard” for “and without regard”. - § 246(c)(1)(A): Pub. L. 98–369, § 53(b)(1), substituted “45” for “15”. - § 246(c)(1)(B): Pub. L. 98–369, § 53(b)(3), substituted “to make related payments with respect to positions in substantially similar or related property” for “to make corresponding payments with respect to substantially identical stock or securities”. - § 246(c)(2): Pub. L. 98–369, § 53(b)(1), substituted “45” for “15”. - § 246(c)(3): Pub. L. 98–369, § 53(b)(4), struck out last sentence which directed that the holding periods determined under the preceding provisions of this paragraph be appropriately reduced (in the manner provided in regulations prescribed by the Secretary) for any period (during such holding periods) in which the taxpayer had an option to sell, was under a contractual obligation to sell, or had made (and not closed) a short sale of, substantially identical stock or securities. - § 246(c)(3)(B): Pub. L. 98–369, § 53(b)(1), substituted “45” for “15”. - § 246(c)(4): Pub. L. 98–369, § 53(b)(2), added par. (4). ## § 246A: Dividends received deduction reduced where portfolio stock is debt financed - Enacted 26 U.S.C. § 246A. ## § 249: Limitation on deduction of bond premium on repurchase - § 249(b): Pub. L. 98–369 substituted “sections 1273(b) and 1274” for “section 1232(b)”. ## § 263: Capital expenditures - § 263(g)(2): Pub. L. 98–369, § 102(e)(7), amended par. (2) generally, striking out “charges for temporary use of the personal property in a short sale, or” after “(including” in subpar. (A)(ii), substituting “any amount treated as ordinary income under section 1271(a)(3)(A), 1278, or 1281(a) with respect to such property for the taxable year, and” for “any amount treated as ordinary income under section 1232(a)(3)(A) with respect to such property for the taxable year” in subpar. (B)(ii), and adding subpar. (B)(iii). - § 263(g)(4): Pub. L. 98–369, § 102(e)(8), added par. (4). - § 263(h): Pub. L. 98–369, § 56(a), added subsec. (h). ## § 265: Expenses and interest relating to tax-exempt income - § 265: Pub. L. 98–369, § 16(a), repealed amendments made by Pub. L. 97–34, § 302(c). See 1981 Amendment note below. - § 265: Pub. L. 98–369, § 56(c), added par. (5). ## § 267: Losses, expenses, and interest with respect to transactions between related taxpayers - § 267(a): Pub. L. 98–369, § 174(a), amended subsec. (a) generally, substituting “In general” for “Deduction disallowed” in heading, “Deduction for losses disallowed” for “Losses” in par. (1) heading, and provisions dealing with matching of deduction and payee income item in the case of expenses and interest for provisions dealing with unpaid expenses and interest in par. (2). - § 267(b)(3): Pub. L. 98–369, § 174(b)(2)(A), substituted “Two corporations which are members of the same controlled group (as defined in subsection (f))” for “Two corporations more than 50 percent in value of the outstanding stock of each of which is owned, directly or indirectly, by or for the same individual, if either one of such corporations, with respect to the taxable year of the corporation preceding the date of the sale or exchange was, under the law applicable to such taxable year, a personal holding company or a foreign personal holding company”. - § 267(b)(10): Pub. L. 98–369, § 174(b)(3), substituted “A corporation” for “An S corporation” in introductory provisions and “the corporation” for “the S corporation” in subpar. (A). - § 267(b)(12): Pub. L. 98–369, § 174(b)(4), substituted “the same persons” for “the same individual”. - § 267(e): Pub. L. 98–369, § 174(b)(1), added subsec. (e). - § 267(e): Pub. L. 98–369, § 174(a)(2), struck out subsec. (e) which provided that for purposes of subsection (a)(2) where the last day of the 2½ month period falls on Saturday, Sunday, or a legal holiday, such last day be treated as falling on the next succeeding day which is not a Saturday, Sunday, or a legal holiday, and the determination of what constitutes a legal holiday be made under section 7503 with respect to the payor’s return of tax under this chapter for the preceding taxable year. - § 267(f): Pub. L. 98–369, § 174(b)(2)(B), added subsec. (f). - § 267(f): Pub. L. 98–369, § 174(b)(1), struck out subsec. (f) which related to special rules for unpaid expenses and interest of S corporations and treatment under such provisions of certain shareholders, etc., as related persons. - § 267(f): Pub. L. 98–369, § 721(s), in closing provision of par. (1) substituted “then any deduction allowable under such sections in respect of such amount shall be allowable as of the day as of which such payment is includible in the gross income of the person to whom the payment is made (or, if later, as of the day on which it would be so allowable but for this paragraph)” for “then no deduction shall be allowed in respect of expenses otherwise deductible under section 162 or 212, or of interest otherwise deductible under section 163, before the day as of which the amount thereof is includible in the gross income of the person to whom the payment is made”. ## § 269: Acquisitions made to evade or avoid income tax - § 269(b), § 269(c): Pub. L. 98–369 added subsec. (b), redesignated former subsec. (b) as (c) and inserted reference to subsec. (b). ## § 269B: Stapled entities - Enacted 26 U.S.C. § 269B. ## § 274: Disallowance of certain entertainment, etc., expenses - § 274(d): Pub. L. 98–369, § 179(b), substituted, in introductory provisions, “No deduction or credit” for “No deduction” and, in provisions following par. (4), “adequate contemporaneous records” for “adequate records or by sufficient evidence corroborating his own statement” and “the facility or property” for “the facility” in two places, and added par. (4). - § 274(h)(6)(D): Pub. L. 98–369, § 801(c), substituted in heading “with other provisions” for “with section 6103” and in text inserted provision that the Secretary may exercise his authority under subchapter A of chapter 78 to carry out any obligations of the United States under an agreement referred to in subpar. (C). ## § 275: Certain taxes - § 275(a)(4): Pub. L. 98–369, § 801(d)(5), inserted provision disallowing a deduction for income, war profits, and excess profits taxes if such taxes are paid or accrued with respect to foreign trade income, within the meaning of section 923(b), of a FSC. - § 275(a)(6): Pub. L. 98–369, § 67(b)(2), inserted reference to chapter 46. ## § 280B: Demolition of structures - § 280B: Pub. L. 98–369 struck out “certain historic” before “structures” in section catchline, struck out heading “(a) General rule”, substituted “In the case of the demolition of any structure” for “In the case of the demolition of a certified historic structure (as defined in 48(g)(3)(A))” in text, and struck out subsecs. (b) and (c) which contained provisions relating to a special rule for registered historic districts and to the application of this section, respectively. ## § 280C: Certain expenses for which credits are allowable - § 280C(a): Pub. L. 98–369, § 474(r)(10)(A), (B), redesignated subsec. (b) as (a), in heading substituted “targeted jobs credit” for “section 44B credit”, and in text substituted “No deduction shall be allowed for that portion of the wages or salaries paid or incurred for the taxable year which is equal to the amount of the credit determined for the taxable year under section 51(a)” for “No deduction shall be allowed for that portion of the wage or salaries paid or incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 44B (relating to credit for employment of certain new employees) determined without regard to the provisions of section 53 (relating to limitation based on amount of tax)”. Former subsec. (a), which had provided that no deduction would be allowed for that portion of the work incentive program expenses paid or incurred for the taxable year which was equal to the amount of the credit allowable for the taxable year under section 40 (relating to credit for expenses of work incentive programs) determined without regard to the provisions of section 50A(a)(2) (relating to limitation based on amount of tax), and that in the case of a corporation which was a member of a controlled group of corporations (within the meaning of section 50B(g)(1) or a trade or business which was treated as being under common control with other trades or businesses within the meaning of section 50B(g)(2), this subsection would be applied under rules prescribed by the Secretary similar to the rules applicable under paragraphs (1) and (2) of section 50B(g), was struck out. - § 280C(b): Pub. L. 98–369, § 474(r)(10)(A), redesignated subsec. (c) as (b). Former subsec. (b) redesignated (a). - § 280C(b)(1), § 280C(b)(2)(A): Pub. L. 98–369, § 474(r)(10)(C), substituted “29” for “44H”. - § 280C(b)(3): Pub. L. 98–369, § 474(r)(10)(D), substituted “section 30(f)(5)” for “section 44F(f)(5)”, “section 30(f)(1)(B)” for “section 44F(f)(1)(B)”, and “section 30(f)(1)” for “section 44F(f)(1)”. - § 280C(c): Pub. L. 98–369, § 474(r)(10)(A), redesignated subsec. (c) as (b). ## § 280F: Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes - Enacted 26 U.S.C. § 280F. ## § 280G: Golden parachute payments - Enacted 26 U.S.C. § 280G. ## § 291: Special rules relating to corporate preference items - § 291(a): Pub. L. 98–369, § 68(a), which directed that each subsection be amended by substituting “20 percent” for “15 percent” wherever appearing, was executed in heading by substituting “20-percent” for “15-percent” to reflect the probable intent of Congress. - § 291(a)(1): Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent” in provisions preceding subpar. (A). - § 291(a)(1): Pub. L. 98–369, § 712(a)(1)(A)(ii), inserted “under section 1250” in provisions following subpar. (B). - § 291(a)(1)(B): Pub. L. 98–369, § 712(a)(1)(A)(i), inserted “(determined without regard to this paragraph)”. - § 291(a)(3): Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent”. - § 291(a)(4): Pub. L. 98–369, § 68(b), amended par. (4) generally. Prior to amendment, par. (4) read as follows: - § 291(a): Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent”. - § 291(b)(1): Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent” in provisions following subpar. (B). - § 291(b)(2): Pub. L. 98–369, § 712(a)(2), inserted “in the case of a deposit located in the United States,”. - § 291(b): Pub. L. 98–369, § 712(a)(3), substituted “attributable to amounts to which paragraph (1) applied” for “attributable to intangible drilling and development costs or mining exploration and development costs”. - § 291(e)(1)(B)(iii): Pub. L. 98–369, § 712(a)(4), added cl. (iii). ## § 301: Distributions of property - § 301(e): Pub. L. 98–369, § 54(b), added subsec. (e). Former subsec. (e) redesignated (f). - § 301(e)(2): Pub. L. 98–369, § 712(i)(1), substituted “complete liquidation” for “partial or complete liquidation” in subsec. (e)(2), which became subsec. (g)(2). - § 301(f): Pub. L. 98–369, § 61(d), added subsec. (f). Former subsec. (f) redesignated (g). - § 301(f): Pub. L. 98–369, § 54(b), redesignated former subsec. (e) as (f). - § 301: Pub. L. 98–369, §§ 54(b), 61(d), redesignated former subsec. (e) successively as subsec. (f) and as subsec. (g). - § 301: Pub. L. 98–369, § 712(i)(1), substituted “complete liquidation” for “partial or complete liquidation” in subsec. (e)(2), which became subsec. (g)(2). ## § 302: Distributions in redemption of stock - § 302(f)(3): Pub. L. 98–369 substituted “complete liquidation” for “partial or complete liquidation”. ## § 304: Redemption through use of related corporations - § 304(b)(2): Pub. L. 98–369, § 712(l)(1), consolidated former subpars. “(A) Where subsection (a)(1) applies” and “(B) Where subsection (a)(2) applies” in one paragraph, inserted provision respecting source of dividend, and incorporated in cls. (A) and (B) former subpar. (A) and (B) provisions which had required determination of amount which is a dividend to be made by reference to earnings and profits of the acquiring corporation and as if the property were distributed by the acquiring corporation to the issuing corporation and immediately thereafter distributed by the issuing corporation. - § 304(b)(3)(A): Pub. L. 98–369, § 712(l)(2), substituted “section 351 and not so much of sections 357 and 358 as relates to section 351” for “part III”. - § 304(b)(3)(B)(i): Pub. L. 98–369, § 712(l)(3)(A)(i), substituted “In the case of an acquisition described in section 351, subsection (a)” for “Subsection (a)”. - § 304(b)(3)(B)(iii): Pub. L. 98–369, § 712(l)(3)(B), added cl. (iii). - § 304(b)(3)(C): Pub. L. 98–369, § 712(l)(4), inserted following cl. (iii) “For purposes of this subparagraph, any assumption of (or acquisition of stock subject to) a liability under subparagraph (B) shall not be treated as a distribution of property.” - § 304(c)(3): Pub. L. 98–369, § 712(l)(5)(A), designated existing first sentence as subpar. “(A) In general” and substituted subpar. (B) for former second sentence which read “For purposes of the preceding sentence, sections 318(a)(2)(C) and 318(a)(3)(C) shall be applied without regard to the 50 percent limitation contained therein.” ## § 306: Dispositions of certain stock - § 306(b)(1): Pub. L. 98–369, § 712(i)(2), substituted “interest, etc.” for “interest” in heading. - § 306(c)(3): Pub. L. 98–369, § 712(l)(6), incorporated existing second sentence in provision designated subpar. (A) and added subpar. (B). - § 306(c)(4): Pub. L. 98–369, § 712(l)(5)(B), substituted “the rules of section 304(c)(3)(B) shall apply” for “sections 318(a)(2)(C) and 318(a)(3)(C) shall be applied without regard to the 50 percent limitation contained therein”. ## § 311: Taxability of corporation on distribution - § 311: Pub. L. 98–369, § 54(a)(3), substituted “Distributions of appreciated property” for “Appreciated property used to redeem stock” in heading. - § 311: Pub. L. 98–369, § 54(a)(1), substituted “This subsection shall be applied after the applications of subsections (b) and (c)” for “Subsections (b) and (c) shall not apply to any distribution to which this subsection applies” in provisions following subpar. (B). - § 311: Pub. L. 98–369, § 54(a)(1), struck out “of part or all of his stock in such corporation” before “and”. - § 311: Pub. L. 98–369, § 54(a)(2)(A), substituted provisions relating to a distribution which is made with respect to qualified stock if section 302(b)(4) applies to such distribution or such distribution is a qualified distribution for provisions which had related to a distribution to a corporate shareholder if the basis of the property distributed was determined under section 301(d)(2). - § 311: Pub. L. 98–369, § 54(a)(2)(A), (B), redesignated subpars. (C) to (F) as (B) to (E), respectively, and struck out former subpar. (B) which related to distributions to which section 302(b)(4) applied and which were made with respect to qualified stock. - § 311: Pub. L. 98–369, § 712(j), added subpar. (C). - § 311: Pub. L. 98–369, § 54(a)(2)(C), added par. (3). ## § 312: Effect on earnings and profits - § 312(a)(2): Pub. L. 98–369, § 61(c)(1)(A), inserted “(or, in the case of obligations having original issue discount, the aggregate issue price of such obligations)”. - § 312(e): Pub. L. 98–369, § 61(a)(2)(B), struck out subsec. (e) which provided: “In the case of amounts distributed in a redemption to which section 302(a) or 303 applies, the part of such distribution which is properly chargeable to capital account shall not be treated as a distribution of earnings and profits.” - § 312(h): Pub. L. 98–369, § 63(b), amended subsec. (h) generally, designating existing provisions as par. (1) and adding par. (2). - § 312(j): Pub. L. 98–369, § 61(a)(2)(A), struck out par. (3) which provided: “If a foreign investment company (as defined in section 1246) distributes amounts in a redemption to which section 302(a) or 303 applies, the part of such distribution which is properly chargeable to earnings and profits shall be an amount which is not in excess of the ratable share of the earnings and profits of the company accumulated after February 28, 1913, attributable to the stock so redeemed.” - § 312(k)(3)(A): Pub. L. 98–369, § 111(e)(5), substituted “18-year real property and low-income housing” for “15-year real property” in three places. - § 312(k)(3)(A): Pub. L. 98–369, § 61(b), substituted “40 years” for “35 years” in table item relating to 15-year real property. Directory language that table be amended by substituting “40 years” for “35 years” in item relating to 15-year real property and 20-year real property, was executed by making the substitution in item relating to 15-year real property. The table contained no item relating to 20-year real property. - § 312(n): Pub. L. 98–369, § 61(a)(1), added subsec. (n). - § 312(o): Pub. L. 98–369, § 61(c)(1)(B), added subsec. (o). ## § 318: Constructive ownership of stock - § 318(a)(5)(E): Pub. L. 98–369, § 721(j), added subpar. (E). - § 318(b)(4): Pub. L. 98–369, § 712(k)(5)(E), substituted “section 338(h)(3) (defining purchase)” for “section 338(h)(3)(B) (relating to purchase of stock from subsidiaries, etc.)”. ## § 338: Certain stock purchases treated as asset acquisitions - § 338(a)(1): Pub. L. 98–369, § 712(k)(1)(A), inserted “at fair market value” after “acquisition date”. - § 338(b): Pub. L. 98–369, § 712(k)(1)(B), substituted “Basis of assets after deemed purchase” for “Price at which deemed sale made” in heading. - § 338(b)(1): Pub. L. 98–369, § 712(k)(1)(B), amended par. (1) generally, substituting “as purchased for an amount equal to the sum of” for “as sold (and purchased) at an amount equal to” in introductory text, “purchasing corporation’s recently purchased stock, and” for “purchasing corporation’s stock in the target corporation on the acquisition date” in subpar. (A), and “the basis of the purchasing corporation’s nonrecently purchased stock” in subpar. (B) in lieu of provision relating to adjustment for liabilities and other relevant items, now covered in par. (2). - § 338(b)(2): Pub. L. 98–369, § 712(k)(1)(B), amended par. (2) generally, incorporating former par. (1)(B) provision, inserting heading “Adjustment for liabilities and other relevant items” and substituting “adjusted under regulations” for “properly adjusted under regulations”. Former par. (2) redesignated (4). - § 338(b)(3): Pub. L. 98–369, § 712(k)(1)(B), added par. (3). Former par. (3) redesignated (5). - § 338(b)(4): Pub. L. 98–369, § 712(k)(1)(B), redesignated former par. (2) as (4), substituted in introductory text “corporation’s recently purchased stock,” for “purchasing corporation’s stock in the target corporation on the acquisition date”, inserted in subpar. (A) “minus the percentage of stock (by value) in the target corporation attributable to the purchasing corporation’s nonrecently purchased stock”, and substituted in subpar. (B) “in the target corporation attributable to the purchasing corporation’s recently purchased stock” for “of the target corporation held by the purchasing corporation on the acquisition date”. - § 338(b)(5): Pub. L. 98–369, § 712(k)(1)(B), redesignated former par. (3) as (5) and inserted reference to par. (2). - § 338(b)(6): Pub. L. 98–369, § 712(k)(1)(B), added par. (6). - § 338(c): Pub. L. 98–369, § 712(k)(2), inserted in last sentence “and section 333 does not apply to such liquidation”. - § 338(e)(2): Pub. L. 98–369, § 712(k)(3), substituted “wholly” for “(in whole or in part)” in subpar. (B), struck out subpar. (D) providing for nonapplication of par. (1) to any acquisition by the purchasing corporation if, to the extent provided in regulations, the property acquired is located outside the United States, redesignated subpar. (E) as (D), and, in subpar. (D) as redesignated, inserted “and meets such conditions as such regulations may provide”. - § 338(g)(1): Pub. L. 98–369, § 712(k)(4), substituted “the 15th day of the 9th month beginning after the month in which the acquisition date occurs” for “75 days after the acquisition date”. - § 338(h)(1): Pub. L. 98–369, § 712(k)(5)(C), included within 12-month acquisition period the period beginning with the date on which the acquiring corporation is first considered as owning stock owned by corporation from which acquisition was made. - § 338(h)(3)(A)(ii): Pub. L. 98–369, § 712(k)(5)(D), included references to sections 354, 355, and 356 and in defining “purchase” provided that the stock not be acquired in any other transaction described in regulations in which the transferor does not recognize the entire amount of the gain or loss realized on the transaction. - § 338(h)(3)(B): Pub. L. 98–369, § 712(k)(5)(A), substituted in heading “under subsection (a)” for “of stock of subsidiaries” and in text “The term ‘purchase’ includes any deemed purchase under subsection (a)(2). The acquisition date for a corporation which is deemed purchased under subsection (a)(2) shall be determined under regulations prescribed by the Secretary” for “If stock in a corporation is acquired by purchase (within the meaning of subparagraph (A)) and, as a result of such acquisition, the corporation making such purchase is treated (by reason of section 318(a)) as owning stock in a 3rd corporation, the corporation making such purchase shall be treated as having purchased such stock in such 3rd corporation. The corporation making such purchase shall be treated as purchasing stock in the 3rd corporation by reason of the preceding sentence on the first day on which the purchasing corporation is considered under section 318(a) as owning such stock”. - § 338(h)(3)(C): Pub. L. 98–369, § 712(k)(5)(B), added subpar. (C). - § 338(h)(7): Pub. L. 98–369, § 712(k)(6)(A), added par. (7) and struck out former par. (7) which had provided that acquisitions by purchasing corporation include acquisitions by corporations affiliated with purchasing corporation. See subsec. (h)(8). - § 338(h)(8): Pub. L. 98–369, § 712(k)(6)(A), added par. (8) incorporating former par. (7) provision stating that “Except as otherwise provided in regulations, an acquisition of stock or assets by any member of an affiliated group which includes a purchasing corporation shall be treated as made by the purchasing corporation.” Former par. (8) redesignated (9). - § 338(h)(9): Pub. L. 98–369, § 712(k)(6)(A), (B), redesignated former par. (8) as (9) and substituted therein “paragraph (10)” for “paragraph (9)”. Former par. (9) redesignated (10). - § 338(h)(10): Pub. L. 98–369, § 712(k)(6)(A), redesignated former par. (9) as (10). - § 338(h)(11), § 338(h)(12), § 338(h)(13), § 338(h)(14), § 338(h)(15): Pub. L. 98–369, § 712(k)(6)(C), added pars. (11) to (15). - § 338(i): Pub. L. 98–369, § 712(k)(7), provided in introductory text that the regulations be appropriate to carry out the purposes of this section; designated existing provisions as par. (1) and substituted therein “treatment of stock and asset sales and purchases” for “treatment of stock and asset purchases with respect to a target corporation and its target affiliates (whether by treating all of them as stock purchases or as asset purchases)” before “may not be circumvented”, and added par. (2). ## § 367: Foreign corporations - § 367(a): Pub. L. 98–369, § 131(a), amended subsec. (a) generally, revising provisions of pars. (1) and (2), and adding pars. (3) to (5). - § 367(d): Pub. L. 98–369, § 131(b), amended subsec. (d) generally, substituting provision providing special rules relating to transfers of intangibles for provision providing special rules relating to transfers of intangibles by possession corporation. - § 367(e), § 367(f): Pub. L. 98–369, § 131(c), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 368: Definitions relating to corporate reorganizations - § 368(a)(2)(F)(viii): Pub. L. 98–369, § 174(b)(5)(D), struck out cl. (viii) which provided that in applying paragraph (3) of section 267(b) in respect of any transaction to which this subparagraph applies, the reference to a personal holding company in such paragraph (3) be treated as including a reference to an investment company and the determination of whether a corporation is an investment company be made as of the time immediately before the transaction instead of with respect to the taxable year referred to in such paragraph (3). - § 368(a)(2)(G): Pub. L. 98–369, § 63(a), added subpar. (G). - § 368(c): Pub. L. 98–369, § 64(a), designated existing provisions as par. (1) and added par. (2). ## § 381: Carryovers in certain corporate acquisitions - § 381(c)(23): Pub. L. 98–369, § 474(r)(11)(B), redesignated par. (25) as (23). Former par. (23), relating to credit under section 38 for investment in certain depreciable property, was struck out. - § 381(c)(24): Pub. L. 98–369, § 474(r)(11)(B), redesignated par. (28) as (24). Former par. (24), relating to credit under section 40 for work incentive program expenses, was struck out. - § 381(c)(25): Pub. L. 98–369, § 474(r)(11)(B), (C), redesignated par. (29) as (25), and substituted “30” for “44F” wherever appearing in heading and text. Former par. (25) redesignated (23). - § 381(c)(26): Pub. L. 98–369, § 474(r)(11)(D), added par. (26). Former par. (26), relating to credit under section 44B for employment of certain new employees, was struck out. - § 381(c): Pub. L. 98–369, § 474(r)(11)(A), struck out par. (27) relating to credit under section 44E for alcohol used as fuel. - § 381(c): Pub. L. 98–369, § 474(r)(11)(B), redesignated pars. (28) and (29) as (24) and (25), respectively. - § 381(c): Pub. L. 98–369, § 474(r)(11)(A), struck out par. (30) relating to credit under section 44G. - § 381: Pub. L. 98–369, § 211(b)(4), substituted “section 810” for “section 812(f)”. ## § 382: Limitation on net operating loss carryforwards and certain built-in losses following ownership change - § 382(b)(1): Pub. L. 98–369, in section as amended by Pub. L. 94–455, substituted “subparagraph (A), (B), (C), or (F) of section 368(a)(1) or subparagraph (D) or (G) of section 368(a)(1) (but only if the requirements of section 354(b)(1) are met)” for “section 368(a)(1)(A), (B), (C), (D) (but only if the requirements of section 354(b)(1) are met, or (F)”. ## § 383: Special limitations on certain excess credits, etc. - § 383: Pub. L. 98–369, § 474(r)(12)(A)(ii), in catchline of section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “Special limitations on unused business credits, research credits, foreign taxes, and capital losses” for “Special limitations on carryovers of unused investment credits, work incentive program credits, new employee credits, alcohol fuel credits, research credits, employee stock ownership credits, foreign taxes, and capital losses”. - § 383: Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(b) of this title, substituted “business credits, research credits” for “investment credits, work incentive program credits”. - § 383: Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “business credits” for “investment credits” and struck out references to work incentive program credits, new employee credits, alcohol fuel credits, and employee stock ownership credits. - § 383: Pub. L. 98–369, § 474(r)(12)(A)(i), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “with respect to any unused business credit of the corporation which can otherwise be carried forward under section 39, to any unused credit of the corporation which could otherwise be carried forward under section 30(g)(2), to any excess foreign taxes of the corporation which could otherwise be carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212” for “with respect to any unused investment credit of the corporation which can otherwise be carried forward under section 46(b), to any unused work incentive program credit of the corporation which can otherwise be carried forward under section 50A(b), to any unused new employee credit of the corporation which could otherwise be carried forward under section 53(b), to any unused credit of the corporation which could otherwise be carried forward under section 44E(e)(2), to any unused credit of the corporation which could otherwise be carried forward under section 44F(g)(2), to any unused credit of the corporation which could otherwise be carried forward under section 44G(b)(2), to any excess foreign taxes of the corporation which can otherwise be carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212”. - § 383: Pub. L. 98–369, § 474(r)(12)(B)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(b) of this title, substituted “with respect to any unused business credit of the corporation under section 39, to any unused credit of the corporation under section 30(g)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212” for “with respect to any unused investment credit of the corporation under section 46(b), to any unused work incentive program credit of the corporation under section 50A(b), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212”. - § 383: Pub. L. 98–369, § 474(r)(12)(B)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “with respect to any unused business credit of the corporation under section 39, to any unused credit of the corporation under section 30(g)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212” for “with respect to any unused investment credit of the corporation under section 46(b), to any unused work incentive program credit of the corporation under section 50A(b), to any unused new employee credit of the corporation under section 53(b), to any unused credit of the corporation under section 44E(e)(2), to any unused credit of the corporation under section 44F(g)(2), to any unused credit of the corporation under section 44G(b)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212”. ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(a)(9): Pub. L. 98–369, § 521(a)(1), amended par. (9) generally, redesignating existing provisions as subpar. (A) and in subpar. (A) as so redesignated struck out “In the case of a plan which provides contributions or benefits for employees some or all of whom are employees within the meaning of subsection (c)(1)” before “a trust forming part of such plan”, substituted “the plan provides that the entire interest of each employee—” for “, under the plan, the entire interest of each employee—”, redesignated subpars. (A) and (B) as cls. (i) and (ii), respectively, in cl. (i) as so redesignated substituted provisions stating that a qualified plan provides that the entire interest will be distributed to the employee not later than the beginning date for former provisions which provided alternative dates for providing interest, in cl. (ii) as so redesignated substituted alternate distribution dates to be set in accordance with regulations for former provisions stating that a qualified plan shall be distributed not later than the taxable year in which the taxpayer attains age 70½, and struck out the par. following cl. (ii) which provided “A trust shall not be disqualified under this paragraph by reason of distributions under a designation, prior to the date of the enactment of this paragraph, by any employee under the plan of which such trust is a part, of a method of distribution which does not meet the terms of the preceding sentence.”, and added subpars. (B) to (F). - § 401(a)(9): Pub. L. 98–369, § 521(a)(2), repealed amendment made by Pub. L. 97–248, § 242(a). See 1982 Amendment note below. - § 401(a)(10)(B)(iii): Pub. L. 98–369, § 524(d)(1), added cl. (iii). - § 401(a)(21): Pub. L. 98–369, § 474(r)(13), substituted provisions relating to the amount of the credit which would be allowable under section 41 if the employer made the transfer described in section 41(c)(1)(B) for former provisions which had related to the amount of credit which would be allowable under section 46(a) if the employer made the transfer described in section 48(n)(1) or under section 44G if the employer made the transfer described in section 44G(c)(1)(B). - § 401(a)(22): Pub. L. 98–369, § 491(e)(4), substituted “section 409” for “section 409A”. - § 401(a)(23): Pub. L. 98–369, § 491(e)(5), substituted “section 409(h)” for “section 409A(h)” in two places. - § 401(a)(24): Pub. L. 98–369, § 211(b)(5), substituted “section 818(a)(6)” for “section 805(d)(6)”. - § 401(e): Pub. L. 98–369, § 713(d)(3), repealed subsec. (e) which related to contributions for premiums on annuity, etc., contracts. - § 401(f)(2): Pub. L. 98–369, § 713(c)(2)(A), substituted “(as defined in section 408(n))” for “(as defined in subsection (d)(1))”. - § 401(h)(6): Pub. L. 98–369, § 528(b), added par. (6). - § 401(k)(1), § 401(k)(2): Pub. L. 98–369, § 527(b)(1), inserted “(or a pre-ERISA money purchase plan)”. - § 401(k)(2)(B): Pub. L. 98–369, § 527(b)(3), substituted “(or in the case of a profit sharing or stock bonus plan, hardship or the attainment of age 59½)” for “, hardship or the attainment of age 59½,”. - § 401(k)(3)(A): Pub. L. 98–369, § 527(a), struck out “qualified” before “cash or deferred arrangement”, substituted “shall not be treated as a qualified cash or deferred arrangement unless” for “shall be considered to satisfy the requirements of subsection (a)(4), with respect to the amount of contributions, and of subparagraph (B) of section 410(b)(1) for a plan year if”, designated provisions beginning “those employees” and ending “section 401(b)(1)” as cl. (i) and text following as cl. (ii), redesignated former cls. (i) and (ii) as subcls. (I) and (II) and inserted text following subcl. (II). - § 401(k)(5): Pub. L. 98–369, § 527(b)(2), added par. (5). ## § 402: Taxability of beneficiary of employees’ trust - § 402(a): Pub. L. 98–369, § 1001(b)(3), substituted “6 months” for “1 year”. - § 402(a): Pub. L. 98–369, § 522(a)(1), substituted “any portion of the balance to the credit of an employee in a qualified trust is paid to him” for “the balance to the credit of an employee in a qualified trust is paid to him in a qualifying rollover distribution”. - § 402(a): Pub. L. 98–369, § 522(d)(1)(A), (2), substituted “qualified total distribution” for “qualifying rollover distribution”, and inserted “In the case of any partial distribution, the maximum amount transferred to which subparagraph (A) applies shall not exceed the portion of such distribution which is includible in gross income (determined without regard to subparagraph (A)).” - § 402(a): Pub. L. 98–369, § 522(b), added subpar. (D). Former subpar. (D) redesignated (E). - § 402(a): Pub. L. 98–369, § 491(d)(9), struck out subcl. (III), which included a retirement bond described in section 409 within term “eligible retirement plan” and redesignated former subcls. (IV) and (V) and (III) and (IV), respectively. - § 402(a): Pub. L. 98–369, § 522(b), redesignated subpar. (D) as (E). Former subpar. (E) redesignated (F). - § 402(a): Pub. L. 98–369, § 522(d)(1)(B), substituted “qualified total distribution” for “qualifying rollover distribution” in heading and text. - § 402(a): Pub. L. 98–369, § 522(d)(3), substituted “gross income (determined without regard to this paragraph)” for “gross income”. - § 402(a): Pub. L. 98–369, § 522(d)(4), substituted provision dealing with partial distribution for provision dealing with rollover of partial distributions of deductible employee contributions permitted. - § 402(a): Pub. L. 98–369, § 522(b), redesignated subpar. (E) as (F). - § 402(a): Pub. L. 98–369, § 522(d)(5), substituted “subparagraph (E)(iv)” for “subparagraph (D)(iv)”. - § 402(a): Pub. L. 98–369, § 491(d)(10), substituted “or (II)” for “, (II), or (III)”. - § 402(a): Pub. L. 98–369, § 522(d)(5), substituted “subparagraph (E)(iv)” for “subparagraph (D)(iv)”. - § 402(a): Pub. L. 98–369, § 491(d)(11), substituted “(III) or (IV)” for “(IV) and (V)”. - § 402(a): Pub. L. 98–369, § 713(c)(3), substituted “Key employees” for “Self-employed individuals and owner-employees” in heading and “attributable to contributions made on behalf of the employee while he was a key employee in a top-heavy plan” for “attributable to a trust forming part of a plan under which the employee was an employee within the meaning of section 401(c)(1) at the time contributions were made on his behalf under the plan” in text, and inserted sentence adopting the meaning of “key employee” and “top-heavy plan” used in section 416. - § 402(a): Pub. L. 98–369, § 522(d)(6), substituted “paragraph (5)(E)(i)” for “paragraph (5)(D)(i)”. - § 402(a): Pub. L. 98–369, § 522(d)(7), substituted “employee contributions (or, in the case of a partial distribution, the amount not includible in gross income)” for “employee contributions”. - § 402(a): Pub. L. 98–369, § 522(d)(1)(C), (8), substituted “qualified total distribution” for “qualifying rollover distribution”, and “paragraph (5)(D) or (5)(E)(i)(II)” for “paragraph (5)(D)(i)(II)”. - § 402(a): Pub. L. 98–369, § 522(c), substituted provisions relating to rollover where spouse receives distributions after death of employee for provisions dealing with rollover where spouse receives lump-sum distribution at death of employee. - § 402(e)(4): Pub. L. 98–369, § 1001(b)(3), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 402(e)(5): Pub. L. 98–369, § 491(c)(2), added par. (5). ## § 403: Taxation of employee annuities - § 403(a)(2): Pub. L. 98–369, § 1001(b)(4), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 403(a)(4)(A)(i): Pub. L. 98–369, § 522(a)(2), substituted “any portion of the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him,” for “the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution.” - § 403(a)(4)(B): Pub. L. 98–369, § 522(d)(9), substituted “(B) through (F)” for “(B) through (E)”. - § 403(b)(1): Pub. L. 98–369, § 491(d)(12), struck out “or 409(b)(3)(C)” after “408(d)(3)(A)(iii)”. - § 403(b)(7)(D): Pub. L. 98–369, § 521(c), added subpar. (D). - § 403(b)(8)(A)(i): Pub. L. 98–369, § 522(a)(3), substituted “any portion of the balance to the credit of an employee in an annuity contract described in paragraph (1) is paid to him” for “the balance to the credit of an employee is paid to him in a qualifying distribution”. - § 403(b)(8)(B): Pub. L. 98–369, § 522(d)(10), substituted provisions relating to special rules for partial distributions for provisions relating to definition of qualifying distributions. - § 403(b)(8): Pub. L. 98–369, § 522(d)(11), substituted “(F)(i)” for “(D)(v), and (E)(i)”. ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(a)(8)(D): Pub. L. 98–369, § 713(d)(6), inserted “(determined without regard to the deductions allowed by this section and section 405(c))”. - § 404(a)(9), § 404(a)(10): Pub. L. 98–369, § 713(d)(4)(A), struck out par. (9) relating to plans benefiting self-employed individuals and redesignated par. (10) as (9). - § 404(b): Pub. L. 98–369, § 512(a), amended subsec. (b) generally, inserting heading, redesignating former heading as par. (1) heading, designating existing provisions as par. (1), and in par. (1) as so designated, inserted “(including a plan described in paragraph (2))” after “compensation” and adding par. (2). - § 404(e): Pub. L. 98–369, § 713(d)(9), substituted “under paragraph (1), (2), or (3) of subsection (a)” for “under this section”. - § 404(f): Pub. L. 98–369, § 713(b)(3), repealed subsec. (f) which related to certain loan repayments considered as contributions. - § 404(h): Pub. L. 98–369, § 713(d)(5), repealed par. (4) which related to effect on self-employed individuals or shareholder-employees. - § 404(i): Pub. L. 98–369, § 474(r)(14), in par. (1), substituted “If any portion of the employee stock ownership credit determined under section 41 for any taxable year has not, after the application of section 38(c), been allowed under section 38 for any taxable year, such portion shall be allowed as a deduction (without regard to any limitations provided under this section) for the last taxable year to which such portion could have been allowed as a credit under section 39” for “There shall be allowed as a deduction (without regard to any limitations provided under this section) for the last taxable year to which an unused employee stock ownership credit carryover (within the meaning of section 44G(b)(2)(A)) may be carried, an amount equal to the portion of such unused credit carryover which expires at the close of such taxable year”, and in par. (2), substituted references to section 41 and 41(c)(3) for references to section 44G and 44G(c)(3), respectively. - § 404(k): Pub. L. 98–369, § 542(a), added subsec. (k). ## § 406: Employees of foreign affiliates covered by section 3121(l) agreements - § 406(a): Pub. L. 98–369, § 491(d)(13), substituted in introductory provision “or an annuity plan described in section 403(a)” for “, an annuity plan described in section 403(a), or a bond purchase plan described in section 405(a)”. - § 406(a)(3): Pub. L. 98–369, § 491(d)(14), substituted “or 403(a)” for “, 403(a), or 405(a)”. - § 406(d): Pub. L. 98–369, § 491(d)(15)(A), (B), substituted in introductory provision “section 404” for “sections 404 and 405(c)”, and “or annuity” for “annuity, or bond purchase”. - § 406(d)(2): Pub. L. 98–369, § 491(d)(15)(C), struck out “(or section 405(c))” after “section 404”. ## § 407: Certain employees of domestic subsidiaries engaged in business outside the United States - § 407(a)(1): Pub. L. 98–369, § 491(d)(16), substituted “or an annuity plan described in section 403(a)” for “, an annuity plan described in section 403(a), or a bond purchase plan described in section 405(a)”. - § 407(a)(1)(B): Pub. L. 98–369, § 491(d)(17), substituted “or 403(a)” for “, 403(a), or 405(a)”. - § 407(d): Pub. L. 98–369, § 491(d)(18)(A), (B), substituted in introductory provision “section 404” for “sections 404 and 405(a)”, and “or annuity” for “annuity, or bond purchase”. - § 407(d)(2): Pub. L. 98–369, § 491(d)(18)(C), struck out “(or section 405(c))” after “section 404”. ## § 408: Individual retirement accounts - § 408(a)(1): Pub. L. 98–369, § 491(d)(19), substituted “or 403(b)(8)” for “403(b)(8), 405(d)(3), or 409(b)(3)(C)”. - § 408(a)(6): Pub. L. 98–369, § 521(b)(1), added par. (6) and struck out former par. (6) which provided that the entire interest of an individual for whose benefit the trust is maintained will be distributed to him not later than the close of his taxable year in which he attains age 70½, or will be distributed, commencing before the close of such taxable year, in accordance with regulations prescribed by the Secretary, over (A) the life of such individual or the lives of such individual and his spouse, or (B) a period not extending beyond the life expectancy of such individual or the life expectancy of such individual and his spouse. - § 408(a): Pub. L. 98–369, § 521(b)(1), struck out par. (7) which provided that if (A) an individual for whose benefit the trust is maintained dies before his entire interest has been distributed to him, or (B) distribution has been commenced as provided in paragraph (6) to his surviving spouse and such surviving spouse dies before the entire interest has been distributed to such spouse, the entire interest (or the remaining part of such interest if distribution thereof has commenced) will be distributed within 5 years after his death (or the death of the surviving spouse). The preceding sentence shall not apply if distributions over a term certain commenced before the death of the individual for whose benefit the trust was maintained and the term certain is for a period permitted under paragraph (6). - § 408(b)(3): Pub. L. 98–369, § 521(b)(2), added par. (3) and struck out former par. (3) which provided that the entire interest of the owner will be distributed to him not later than the close of his taxable year in which he attains age 70½, or will be distributed, in accordance with regulations prescribed by the Secretary, over (A) the life of such owner or the lives of such owner and his spouse, or (B) a period not extending beyond the life expectancy of such owner or the life expectancy of such owner and his spouse. - § 408(b)(4), § 408(b): Pub. L. 98–369, § 521(b)(2), redesignated par. (5) as (4) and struck out former par. (4) which provided that if (A) the owner dies before his entire interest has been distributed to him, or (B) distribution has been commenced as provided in paragraph (3) to his surviving spouse and such surviving spouse dies before the entire interest has been distributed to such spouse, the entire interest (or the remaining part of such interest if distribution thereof has commenced) will be distributed within 5 years after his death (or the death of the surviving spouse). The preceding sentence shall not apply if distributions over a term certain commenced before the death of the owner and the term certain is for a period permitted under paragraph (3). - § 408(d)(3)(A)(i): Pub. L. 98–369, § 491(d)(20), struck out “or retirement bond” before “for the benefit”. - § 408(d)(3)(A)(ii): Pub. L. 98–369, § 522(d)(12), substituted “rollover contribution of a qualified total distribution (as defined in section 402(a)(5)(E)(i)) from an employee’s trust” for “rollover contribution from an employee’s trust”. - § 408(d)(3)(B): Pub. L. 98–369, § 491(d)(21), substituted “or an individual retirement annuity” for “, individual retirement annuity, or a retirement bond”. - § 408(d)(3)(C), § 408(d)(3)(D): Pub. L. 98–369, § 713(g)(2), designated the subpar. (C), as added by section 335(a)(1) of Pub. L. 97–248, relating to permitting partial rollovers, as subpar. (D). - § 408(d)(3)(D)(ii): Pub. L. 98–369, § 491(d)(22), struck out “bond,” after “annuity,”. - § 408(d)(6): Pub. L. 98–369, § 491(d)(23), substituted “or an individual retirement annuity” for “, individual retirement annuity, or retirement bond”, and “or annuity” for “, annuity, or bond”. - § 408(h): Pub. L. 98–369, § 713(c)(2)(B), substituted “(as defined in subsection (n))” for “(as defined in section 401(d)(1))”. - § 408(i): Pub. L. 98–369, § 147(a), inserted “(and the years to which they relate)”. - § 408(k)(1): Pub. L. 98–369, § 713(f)(2), amended par. (1) generally, designating existing provisions as subpar. (A) and adding subpar. (B). - § 408(k)(3)(C): Pub. L. 98–369, § 713(f)(5)(B), inserted provision which required annual adjustment of the $200,000 amount concurrently with the dollar amount adjustment in section 415(c)(1)(A). - § 408(k)(3)(D): Pub. L. 98–369, § 713(j), substituted in penultimate sentence “OASDI contributions (as defined in section 401(l)(2)” for “taxes paid under section 3111 (relating to tax on employers) with respect to an employee” and “as contributions by the employer to the employee’s simplified employee pension, but only if such contributions are so taken into account with respect to each employee maintaining a simplified employee pension” for “as a contribution by the employer to an employee’s simplified pension” and struck out third sentence which provided “If contributions are made to the simplified employee pension of an owner-employee, the preceding sentence shall not apply unless taxes paid by all such owner-employees under chapter 2, and the taxes which would be payable under chapter 2 by such owner-employees but for paragraphs (4) and (5) of section 1402(c), are taken into account as contributions by the employer on behalf of such owner-employees.” - § 408(k)(3): Pub. L. 98–369, § 491(d)(24), substituted “or 403(a)” for “, 403(a), or 405(a)”. ## § 409: Qualifications for tax credit employee stock ownership plans - § 409(b)(1)(A): Pub. L. 98–369, § 474(r)(15)(A), (B), substituted “41” for “44G” and struck out “48(n)(1)(A) or” after “requirements of section”. - § 409(b)(4): Pub. L. 98–369, § 474(r)(15)(A), substituted “41” for “44G”. - § 409(g): Pub. L. 98–369, § 474(r)(15)(A), (C), substituted “41” for “44G” in two places, and inserted provision directing that, for purposes of the preceding sentence, the references to section 48(n)(1) and the employee plan credit shall refer to such section and credit as in effect before the enactment of the Tax Reform Act of 1984. - § 409(i)(1)(A): Pub. L. 98–369, § 474(r)(15)(A), (D), substituted “41” for “44G”, and struck out “48(n)(1) or” after “taxable year under section”. - § 409(k): Pub. L. 98–369, § 474(r)(15)(E), inserted provision requiring that, for purposes of this subsection, the reference to the matching employee plan credit refer to such credit as in effect before the enactment of the Tax Reform Act of 1984. - § 409(m): Pub. L. 98–369, § 474(r)(15)(A), substituted “41” for “44G”. - § 409(n)(3): Pub. L. 98–369, § 474(r)(15)(A), substituted “41” for “44G”. ## § 412: Minimum funding standards - § 412(a)(2): Pub. L. 98–369 struck out “or 405(a)” after “section 403(a)”. ## § 414: Definitions and special rules - § 414(h)(1)(B): Pub. L. 98–369, § 491(d)(26), struck out “or 405(a)” after “section 403(a)”. - § 414(l): Pub. L. 98–369, § 491(d)(27), struck out “or 405” after “section 403(a)”. - § 414(m)(6)(B): Pub. L. 98–369, § 526(a)(1), substituted “section 318(a)” for “section 267(c)”. - § 414(m): Pub. L. 98–369, § 526(d)(2), as amended by Pub. L. 99–514, § 1852(f), struck out par. (7) relating to regulations. See subsec. (o) of this section. - § 414(n)(2): Pub. L. 98–369, §§ 526(b)(1), 713(i), made identical amendments, substituting “any person who is not an employee of the recipient and” for “any person” in text preceding subpar. (A). - § 414(o): Pub. L. 98–369, § 526(d)(1), added subsec. (o). ## § 415: Limitations on benefits and contribution under qualified plans - § 415(a)(2): Pub. L. 98–369, § 491(d)(28), struck out subpar. (D) which related to application of this section to a plan described in section 405(a), and in provision following subpar. (C) struck out “405(a),” after “403(b),”. - § 415(b)(2)(A), § 415(b)(2)(B): Pub. L. 98–369, § 491(d)(29), (30), substituted “and 408(d)(3)” for “408(d)(3) and 409(b)(3)(C)”. - § 415(b)(2)(C): Pub. L. 98–369, § 713(a)(1)(A), substituted provision respecting determination as to whether $90,000 limitation has been satisfied by reducing the limitation of par. (1)(A) so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to a $90,000 annual benefit beginning at age 62 for provision for such determination by adjusting the benefit so that it is equivalent to such a benefit beginning at age 62. - § 415(b)(2)(D): Pub. L. 98–369, § 713(a)(1)(B), substituted “limit” for “limitation” in heading, and in text substituted provision respecting determination as to whether $90,000 limitation has been satisfied by increasing the limitation of par. (1)(A) so that such limitation (as so increased) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent to a $90,000 annual benefit beginning at age 65 for provision for such determination by adjusting the benefit so that it is equivalent to such a benefit beginning at age 65. - § 415(b)(2)(E): Pub. L. 98–369, § 713(a)(1)(C), provided in cls. (i) and (iii) for adjustment of any limitation and substituted in cl. (ii) “any limitation” for “any benefit”. - § 415(c)(2): Pub. L. 98–369, § 491(d)(31), substituted “and 408(d)(3)” for “405(d)(3), 408(d)(3), and 409(b)(3)(C)”. - § 415(c)(3)(C): Pub. L. 98–369, § 713(k), inserted in introductory text “in a profit-sharing or stock bonus plan”, and substituted in last sentence “if contributions made with respect to amounts treated as compensation under this subparagraph” for “if contributions made with respect to such participant”. - § 415(c)(6)(B): Pub. L. 98–369, § 491(e)(6), substituted “section 409” for “section 409A”. - § 415(c)(6): Pub. L. 98–369, § 713(d)(4)(B)(i)–(iii), substituted “paragraph (9)” for “paragraph (10)” of section 404(a), section “404(a)(9)(A)” for “404(a)(10)(A)”, and section “404(a)(9)(B)” for “404(a)(10)(B)”. - § 415(c)(7), § 415(c)(8): Pub. L. 98–369, § 713(d)(7)(A), redesignated par. (8) as (7), and struck out former par. (7) relating to certain level premium annuity contracts under plans benefiting owner-employees. - § 415(d)(2)(A): Pub. L. 98–369, § 15(b), substituted “1986” for “1984”. - § 415(d)(3): Pub. L. 98–369, § 15(a), substituted “January 1, 1988” for “January 1, 1986”. - § 415(e): Pub. L. 98–369, § 713(d)(7)(B), struck out reference to subsec. (c)(8). - § 415(e): Pub. L. 98–369, § 713(a)(3), added subpar. (C). - § 415(k)(1): Pub. L. 98–369, § 491(d)(32), struck out subpars. (C) and (H), which included a qualified bond purchase plan described in section 405(a) and an individual retirement bond described in section 409 within the term “defined contribution plan” or “defined benefit plan”, respectively, and redesignated subpars. (D) to (G) as (C) to (F), respectively. - § 415(l): Pub. L. 98–369, § 528(a), added subsec. (l). ## § 416: Special rules for top-heavy plans - § 416(c)(2)(C): Pub. L. 98–369, § 524(c)(1), struck out subpar. (C) which provided that for purposes of this paragraph, any employer contribution attributable to a salary reduction or similar arrangement shall not be taken into account. - § 416(d): Pub. L. 98–369, § 713(f)(5)(A), inserted “at the same time and”. - § 416(f): Pub. L. 98–369, § 713(f)(6)(A), substituted “required” for “require”. - § 416(g)(3): Pub. L. 98–369, § 713(f)(4), inserted at end “The preceding sentence shall also apply to distributions under a terminated plan which if it had not been terminated would have been required to be included in an aggregation group.” - § 416(g)(4)(E): Pub. L. 98–369, § 524(b)(1), added subpar. (E). - § 416(i)(1)(A): Pub. L. 98–369, § 713(f)(1)(A), (C), substituted in provisions preceding cl. (i) “an employee” for “any participant in an employer plan” and inserted at end thereof provision for treatment of an employee with the greater annual compensation as having a larger interest in the employer where, for purposes of cl. (ii), 2 employees have the same interest in the employer. - § 416(i)(1)(A)(i): Pub. L. 98–369, § 524(a)(1), inserted “having an annual compensation greater than 150 percent of the amount in effect under section 415(c)(1)(A) for any plan year”. - § 416(i)(1)(A)(ii): Pub. L. 98–369, § 713(f)(1)(B), required a key employee to have annual compensation from the employer of more than the limitation in effect under section 415(c)(1)(A). - § 416(i)(1)(B)(iii): Pub. L. 98–369, § 713(f)(6)(B), substituted subparagraph “(A)(ii)” for “(A)(ii)(II)”. - § 416(i)(1)(C): Pub. L. 98–369, § 713(f)(1)(A), substituted in heading “ownership in the employer” for “5-percent or 1-percent owners”. ## § 419: Treatment of funded welfare benefit plans - Enacted 26 U.S.C. § 419. ## § 419A: Qualified asset account; limitation on additions to account - Enacted 26 U.S.C. § 419A. ## § 422: Incentive stock options - § 422(c): Pub. L. 98–369, § 2662(f)(1), substituted “section 37(e)(3)” for “section 105(d)(4)”. - § 422(c): Pub. L. 98–369, § 555(a)(1), added par. (10). ## § 423: Employee stock purchase plans - § 423(a)(1): Pub. L. 98–369 substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 424: Definitions and special rules - § 424(h)(3)(B): Pub. L. 98–369 struck out reference to section 422A(b)(5). ## § 441: Period for computation of taxable income - § 441(b)(4): Pub. L. 98–369, § 803(a), added par. (4). - § 441(f)(2)(A): Pub. L. 98–369, § 474(b)(2), substituted “section 15” for “section 21” in provisions preceding cl. (i). - § 441(h): Pub. L. 98–369, § 803(b), added subsec. (h). ## § 446: General rule for methods of accounting - § 446(f): Pub. L. 98–369 added subsec. (f). ## § 453: Installment method - § 453(g): Pub. L. 98–369, § 421(b)(6)(C), struck out “spouse or” after “property to” in heading. - § 453(h)(1)(C): Pub. L. 98–369, § 421(b)(6)(B), inserted “married to each other or are”. - § 453(i): Pub. L. 98–369, § 112(a), amended subsec. (i) generally, substituting provisions relating to recognition of recapture income in year of disposition for provisions relating to application of subsec. (a) in the case of an installment sale of section 179 property. ## § 453B: Gain or loss on disposition of installment obligations - § 453B(d): Pub. L. 98–369, § 492(b)(3), struck out “1251(c),” after “1250(a),” in provision following subpar. (B). - § 453B(d): Pub. L. 98–369, § 43(c)(2), substituted “1254(a), or 1276(a)” for “or 1254(a)”. - § 453B(e)(1): Pub. L. 98–369, § 211(b)(6)(A), substituted “section 816(a)” for “section 801(a)”. - § 453B(e)(2): Pub. L. 98–369, § 211(b)(6)(B), substituted “as not related to insurance business” for “as investment income” in heading, and in text substituted “as if such income were an item attributable to a noninsurance business (as defined in section 806(c)(3))” for “if such income would not otherwise be returnable as an item referred to in section 804(b) or as long-term capital gain, as if the income on such obligations were income specified in section 804(b)”. - § 453B(g): Pub. L. 98–369, § 421(b)(3), added subsec. (g). ## § 457: Deferred compensation plans of State and local governments and tax-exempt organizations - § 457(e)(2): Pub. L. 98–369, § 491(d)(33), struck out subpar. (C) which provided that par. (1) of this subsection not apply to a qualified bond purchase plan described in section 405(a), and redesignated subpars. (D) and (E) as (C) and (D), respectively. ## § 461: General rule for taxable year of deduction - § 461(f)(4): Pub. L. 98–369, § 91(e), inserted “determined after application of subsection (h)”. - § 461(h), § 461(i): Pub. L. 98–369, § 91(a), added subsecs. (h) and (i). ## § 465: Deductions limited to amount at risk - § 465(a)(1)(B): Pub. L. 98–369, § 721(x)(2), substituted “a C corporation” for “a corporation”. - § 465(b)(3): Pub. L. 98–369, § 432(c), designated existing provisions as subpar. (A), in subpar. (A) as so designated struck out subpar. designations “(A)” and “(B)” and substituted provisions that, except as provided by regulation, amounts borrowed shall not be considered to be at risk if such amounts are borrowed from any person who has an interest in the activity or from a related person to a person (other than the taxpayer) having such an interest for provision that such amounts would not be considered to be at risk if borrowed from a person who had an interest (other than as a creditor) in such activity or who had a relationship to the taxpayer specified in section 267(b) of this title, and added subpars. (B) and (C). - § 465(c)(2): Pub. L. 98–369, § 432(b), designated existing provisions as subpar. (A), in subpar. (A) as so designated, redesignated former subpars. (A) to (E) as cls. (i) to (v), respectively, struck out provision that a partner’s interest in a partnership or a shareholder’s interest in an S corporation had to be treated as a single activity to the extent that the partnership or the S corporation was engaged in activities described in any subparagraph of this paragraph, and added subpar. (B). - § 465(c)(7): Pub. L. 98–369, § 432(a), added par. (7). ## § 467: Certain payments for the use of property or services - Enacted 26 U.S.C. § 467. ## § 468: Special rules for mining and solid waste reclamation and closing costs - Enacted 26 U.S.C. § 468. ## § 468A: Special rules for nuclear decommissioning costs - Enacted 26 U.S.C. § 468A. ## § 472: Last-in, first-out inventories - § 472(g): Pub. L. 98–369 added subsec. (g). ## § 483: Interest on certain deferred payments - § 483(a): Pub. L. 98–369 amended subsec. (a) generally, substituting “For purposes of this title, in the case of any payment (1) under any contract for the sale or exchange of any property, and (2) to which this section applies, there shall be treated as interest that portion of the total unstated interest under such contract which, as determined in a manner consistent with the method of computing interest under section 1272(a), is properly allocable to such payment” for “For purposes of this title, in the case of any contract for the sale or exchange of property there shall be treated as interest that part of a payment to which this section applies which bears the same ratio to the amount of such payment as the total unstated interest under such contract bears to the total of the payments to which this section applies which are due under such contract”. - § 483(b): Pub. L. 98–369 amended subsec. (b) generally, substituting provisions directing that the present value of a payment be determined under the rules of section 1274(b)(2) using a discount rate equal to 120 percent of the applicable Federal rate determined under section 1274(d) for provisions which had directed that the present value of a payment be determined, as of the date of the sale or exchange, by discounting such payment at the rate, and in the manner, provided in regulations prescribed by the Secretary and that such regulations provide for discounting on the basis of 6-month brackets and provide that the present value of any interest payment due not more than 6 months after the date of the sale or exchange was to have been an amount equal to 100 percent of such payment. - § 483(c): Pub. L. 98–369 substituted “subsection (a) applies” for “section applies” in heading. - § 483(c)(1): Pub. L. 98–369 substituted “under which, using a discount rate equal to 110 percent of the applicable Federal rate determined under section 1274(d), there is total unstated interest” for “under which, using a rate provided by regulations prescribed by the Secretary for purposes of this subparagraph, there is total unstated interest”, in subpar. (B), and struck out provision formerly set out following subpar. (B) which had directed that any rate prescribed for determining whether there was total unstated interest for purposes of subpar. (B) be at least one percentage point lower than the rate prescribed for purposes of subsec. (b)(2). - § 483(c)(2): Pub. L. 98–369 substituted “Treatment of other debt instruments” for “Treatment of other evidence of indebtedness” in heading and, in text, substituted “a debt instrument of the purchaser which is given in consideration for the sale or exchange of property shall not be treated as a payment, and any payment due under such debt instrument” for “an evidence of indebtedness of the purchaser given in consideration for the sale or exchange of property shall not be considered a payment, and any payment due under such evidence of indebtedness”. - § 483(c)(3): Pub. L. 98–369 added par. (3). - § 483(d): Pub. L. 98–369 amended subsec. (d) generally, substituting provisions relating to exceptions and limitations for provisions which related to payments indefinite as to time, liability, or amount. - § 483(e): Pub. L. 98–369 amended subsec. (e) generally, substituting provisions relating to interest rates in case of sale of principal residence or farm land for provision relating to changes in terms of contract. - § 483(f): Pub. L. 98–369 amended subsec. (f) generally, substituting provisions relating to maximum rate of interest on certain transfers of land between related parties for provisions which related to exceptions and limitations now covered in subsec. (d) of this section. - § 483(g): Pub. L. 98–369 amended subsec. (g) generally, substituting provisions which related to calling for the promulgation of regulations by the Secretary for provisions which related to the maximum rate of interest on certain transfers of land between related parties now covered in subsec. (f) of this section. - § 483: Pub. L. 98–369 added subsec. (h). ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(1): Pub. L. 98–369, § 2813(b)(2), designated existing provisions as subpar. (A) and added subpar. (B). - § 501(c)(1)(A): Pub. L. 98–369, § 1079, substituted provisions referring to corporations exempt from Federal income taxes under any Act of Congress as amended and supplemented before July 18, 1984, or under this title without regard to any provision of law not contained in this title and not contained in a revenue Act for provisions referring to corporations exempt from Federal income taxes under any Act of Congress as amended and supplemented. - § 501(k): Pub. L. 98–369, § 1032(a), added subsec. (k). Former subsec. (k) redesignated (l). - § 501(l): Pub. L. 98–369, § 2813(b)(1), added subsec. (l). Former subsec. (l) redesignated (m). - § 501(l): Pub. L. 98–369, § 1032(a), redesignated former subsec. (k) as (l). - § 501(m): Pub. L. 98–369, § 2813(b)(1), redesignated former subsec. (l) as (m). ## § 505: Additional requirements for organizations described in paragraph (9) or (17) of section 501(c) - Enacted 26 U.S.C. § 505. ## § 507: Termination of private foundation status - § 507(d)(2)(C): Pub. L. 98–369 added subpar. (C). ## § 512: Unrelated business taxable income - § 512(a)(3): Pub. L. 98–369, § 511(b)(1)(A), substituted “paragraph (7), (9), (17), or (20) of section 501(c)” for “section 501(c)(7) or (9)” wherever appearing in heading and in text. - § 512(a)(3)(B)(ii): Pub. L. 98–369, § 511(b)(1)(B), substituted “paragraph (9), (17), or (20) of section 501(c)” for “section 501(c)(9)”. - § 512(a)(3)(C), § 512(a)(3)(D): Pub. L. 98–369, § 511(b)(1)(A), substituted in subpars. (C) and (D) “paragraph (7), (9), (17), or (20) of section 501(c)” for “section 501(c)(7) or (9)” wherever appearing. - § 512(a)(3)(E): Pub. L. 98–369, § 511(b)(2), added subpar. (E). ## § 514: Unrelated debt-financed income - § 514(c)(9): Pub. L. 98–369, § 1034(a), amended par. (9) generally, substituting provisions relating to real property acquired by a qualified organization for provisions relating to real property acquired by a qualified trust, with “qualified organization” expanded to include trusts constituting qualified trusts under section 401 of this title as well as organizations described in section 170(b)(1)(A)(ii) of this title and their affiliated support organizations described in section 509(a) of this title. - § 514(c)(9)(B)(iii): Pub. L. 98–369, § 174(b)(5)(B), inserted reference to section 707(b). - § 514(g): Pub. L. 98–369, § 1034(b), added subsec. (g). ## § 527: Political organizations - § 527(g)(1): Pub. L. 98–369, § 474(r)(16), substituted “section 24(c)(2)” for “section 41(c)(2)”. - § 527(h)(2)(B): Pub. L. 98–369, § 722(c), inserted “Nothing in this subsection shall be construed to require any designation where there is only one political committee with respect to a candidate.” ## § 532: Corporations subject to accumulated earnings tax - § 532(c): Pub. L. 98–369 added subsec. (c). ## § 535: Accumulated taxable income - § 535(b)(5): Pub. L. 98–369, § 58(b), designated existing provisions as subpar. (A), substituted “Except as provided in subparagraph (B), there shall be allowed as a deduction an amount equal to the net capital loss for the taxable year (determined without regard to paragraph (7)(A)” for “There shall be allowed as deductions losses from sales or exchanges of capital assets during the taxable year which are disallowed as deductions under section 1211(a)” in subpar. (A) as so redesignated, and added subpars. (B) and (C). - § 535(b)(6): Pub. L. 98–369, § 58(b), divided existing par. (6) into subpars. (A) and (B) and substituted references to the application of paragraph (7) for references to capital loss carryback and carryover provided in section 1212. - § 535(b)(7): Pub. L. 98–369, § 58(b), substituted “Capital loss carryovers” for “Capital loss” in heading, redesignated existing provisions as subpar. (B), and added subpar. (A). - § 535(b)(8): Pub. L. 98–369, § 58(b), added par. (8). - § 535(d): Pub. L. 98–369, § 125(a), added subsec. (d). ## § 542: Definition of personal holding company - § 542(b)(5): Pub. L. 98–369 substituted “section 801” for “section 802”. ## § 543: Personal holding company income - § 543(a)(1)(C): Pub. L. 98–369 struck out subpar. (C) providing for nonapplication of par. (1) to dividends to which section 302(b)(4) would apply if the corporation were an individual. ## § 582: Bad debts, losses, and gains with respect to securities held by financial institutions - § 582(c)(2): Pub. L. 98–369 substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 584: Common trust funds - § 584(c)(1): Pub. L. 98–369 substituted “6 months” for “1 year”, wherever appearing, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 594: Alternative tax for mutual savings banks conducting life insurance business - § 594(b): Pub. L. 98–369 substituted “section 816” for “section 801”. ## § 613A: Limitations on percentage depletion in case of oil and gas wells - § 613A(c)(2): Pub. L. 98–369, § 25(b)(1), struck out last sentence providing that in applying this paragraph, there shall not be taken into account any production of crude oil or natural gas resulting from secondary or tertiary processes (as defined in regulations prescribed by the Secretary). - § 613A(c)(3)(A): Pub. L. 98–369, § 25(b)(2), inserted at end “Clause (ii) shall not apply after December 31, 1983.” - § 613A(c)(7)(D): Pub. L. 98–369, § 71(b), substituted “property contributed to the partnership by a partner, section 704(c) (relating to contributed property) shall apply in determining such share” for “an agreement described in section 704(c)(2) (relating to effect of partnership agreement on contributed property), such share shall be determined by taking such agreement into account” in fourth sentence. - § 613A(c)(7): Pub. L. 98–369, § 25(b)(3), inserted at end “This subparagraph shall not apply after December 31, 1983.” - § 613A(c)(9): Pub. L. 98–369, § 25(b)(4), substituted “this subsection” for “paragraph (1)”. ## § 631: Gain or loss in the case of timber, coal, or domestic iron ore - § 631(a): Pub. L. 98–369, § 1001(c)(1), (e), substituted “on the first day of such year and for a period of more than 6 months before such cutting” for “for a period of more than 1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 631(b), § 631(c): Pub. L. 98–369, § 1001(c)(2), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 631(b), § 631(c): Pub. L. 98–369, § 178(a), inserted “or coal” after “iron ore” wherever appearing in last sentence of subsec. (c). ## § 642: Special rules for credits and deductions - § 642(a): Pub. L. 98–369, § 474(r)(17), substituted “section 24” for “section 41”. - § 642(c)(3), § 642(c)(4): Pub. L. 98–369, § 1001(b)(8), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 643: Definitions applicable to subparts A, B, C, and D - § 643(d): Pub. L. 98–369, § 81(a), added subsec. (d) relating to treatment of property distributed in kind. - § 643(d): Pub. L. 98–369, § 722(h)(3), added subsec. (d) relating to coordination with back-up withholding. - § 643(e): Pub. L. 98–369, § 82(a), added subsec. (e). ## § 664: Charitable remainder trusts - § 664(f): Pub. L. 98–369 added subsec. (f). ## § 691: Recipients of income in respect of decedents - § 691(b): Pub. L. 98–369 substituted “section 27” for “section 33” in provisions preceding par. (1) and in provisions of par. (1) preceding subpar. (A). ## § 692: Income taxes of members of Armed Forces, astronauts, and victims of certain terrorist attacks on death - § 692(c)(1): Pub. L. 98–369, § 722(g)(2), which directed amendment of par. (1) of this section by substituting “as a result of wounds or injury which was incurred while the individual was a military or civilian employee of the United States and which was incurred” for “as a result of wounds or injury incurred” was executed to par. (1) of subsec. (c) to reflect the probable intent of Congress. - § 692(c)(2)(A): Pub. L. 98–369, § 722(g)(3), inserted “which a preponderance of the evidence indicates was”. ## § 702: Income and credits of partner - § 702(a)(1), § 702(a)(2): Pub. L. 98–369 substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 704: Partner’s distributive share - § 704(c): Pub. L. 98–369 amended subsec. (c) generally, substituting provisions directing that, under regulations prescribed by the Secretary, income, gain, loss, and deduction with respect to property contributed to the partnership by a partner be shared among partners so as to take account of the variation between the basis of the property to the partnership and its fair market value at the time of contribution, and that similar rules apply to contributions by a partner (using the cash receipts and disbursements method of accounting) of accounts payable and other accrued but unpaid items for provisions which had directed that, if the partnership agreement so provided, depreciation, depletion, or gain or loss with respect to property contributed to the partnership by a partner would under regulations prescribed by the Secretary, be shared among the partners so as to take account of the variation between the basis of the property to the partnership and its fair market value at the time of contribution, and struck out provisions which had directed that in determining a partner’s distributive share of items described in section 702(a), depreciation, depletion, or gain or loss with respect to property contributed to the partnership by a partner would, except to the extent otherwise provided, be allocated among the partners in the same manner as if such property had been purchased by the partnership and that if the partnership agreement did not provide otherwise, depreciation, depletion, or gain or loss with respect to undivided interests in property contributed to a partnership would be determined as though such undivided interests had not been contributed to the partnership. ## § 705: Determination of basis of partner’s interest - § 705(a)(3): Pub. L. 98–369 substituted “for any partnership oil and gas property to the extent such deduction does not exceed the proportionate share of the adjusted basis of such property allocated to such partner under section 613A(c)(7)(D)” for “under section 611 with respect to oil and gas wells”. ## § 706: Taxable years of partner and partnership - § 706(c)(2)(A): Pub. L. 98–369, § 72(b)(1), struck out last sentence providing that such partner’s distributive share of item described in section 702(a) for such year shall be determined, under regulations prescribed by the Secretary, for the period ending with such sale, exchange, or liquidation. - § 706(c)(2)(B): Pub. L. 98–369, § 72(b)(2), struck out “, but such partner’s distributive share of items described in section 702(a) shall be determined by taking into account his varying interests in the partnership during the taxable year” after “otherwise)”. - § 706(d): Pub. L. 98–369, § 72(a), added subsec. (d). ## § 707: Transactions between partner and partnership - § 707(a): Pub. L. 98–369 designated existing provisions as par. (1) and added par. (2). ## § 722: Basis of contributing partner’s interest - § 722: Pub. L. 98–369 inserted “under section 721(b)” after “gain recognized”. ## § 723: Basis of property contributed to partnership - § 723: Pub. L. 98–369 inserted “under section 721(b)” after “gain recognized”. ## § 724: Character of gain or loss on contributed unrealized receivables, inventory items, and capital loss property - Enacted 26 U.S.C. § 724. ## § 734: Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction - § 734(b): Pub. L. 98–369 inserted at end “Paragraph (1)(B) shall not apply to any distributed property which is an interest in another partnership with respect to which the election provided in section 754 is not in effect.” ## § 735: Character of gain or loss on disposition of distributed property - § 735(c): Pub. L. 98–369 added subsec. (c). ## § 743: Special rules where section 754 election or substantial built-in loss - § 743(b): Pub. L. 98–369 substituted “property contributed to the partnership by a partner, section 704(c) (relating to contributed property) shall apply in determining such share” for “an agreement described in section 704(c)(2) (relating to effect of partnership agreement on contributed property), such share shall be determined by taking such agreement into account” in penultimate sentence. ## § 751: Unrealized receivables and inventory items - § 751(c): Pub. L. 98–369, § 492(b)(4), struck out “farm recapture property (as defined in section 1251(e)(1)),” before “farm land”, and “1251(c),” after “1250(a),” in second sentence. - § 751(c): Pub. L. 98–369, § 43(c)(3), inserted last sentence. - § 751(f): Pub. L. 98–369, § 76(a), added subsec. (f). ## § 761: Terms defined - § 761(e), § 761(f): Pub. L. 98–369 added subsec. (e) and redesignated former subsec. (e) as (f). ## § 801: Tax imposed - Enacted 26 U.S.C. § 801. ## § 803: Life insurance gross income - Enacted 26 U.S.C. § 803. ## § 804: Life insurance deductions - Enacted 26 U.S.C. § 804. ## § 805: General deductions - Enacted 26 U.S.C. § 805. ## § 807: Rules for certain reserves - Enacted 26 U.S.C. § 807. ## § 808: Policyholder dividends deduction - Enacted 26 U.S.C. § 808. ## § 811: Accounting provisions - Enacted 26 U.S.C. § 811. - § 811(b)(3): Pub. L. 98–369, § 42(a)(8), substituted “section 1273” for “section 1232(b)”. ## § 812: Definition of company’s share and policyholder’s share - Enacted 26 U.S.C. § 812. ## § 814: Contiguous country branches of domestic life insurance companies - Enacted 26 U.S.C. § 814. ## § 816: Life insurance company defined - Enacted 26 U.S.C. § 816. ## § 817: Treatment of variable contracts - Enacted 26 U.S.C. § 817. ## § 818: Other definitions and special rules - Enacted 26 U.S.C. § 818. - § 818(b)(1)(A): Pub. L. 98–369, § 1001(b)(10), (e), substituted “6 months” for “1 year” in two places, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 832: Insurance company taxable income - § 832(b)(4): Pub. L. 98–369, in provisions following subpar. (B), substituted “section 816(b) but determined as provided in section 807” and “section 816” for “section 801(b)” and “section 801”, respectively. ## § 841: Credit for foreign taxes - § 841: Pub. L. 98–369 substituted “section 801” for “section 802”, wherever appearing, and “section 801(b)” for “section 802(b)”. ## § 845: Certain reinsurance agreements - Enacted 26 U.S.C. § 845. ## § 851: Definition of regulated investment company - § 851(a): Pub. L. 98–369 struck out “(other than a personal holding company as defined in section 542)” after “any domestic corporation” in introductory provisions. ## § 852: Taxation of regulated investment companies and their shareholders - § 852(a): Pub. L. 98–369, § 1071(a)(3), added par. (3). - § 852(b)(1): Pub. L. 98–369, § 1071(a)(2), inserted provision that in the case of a regulated investment company which is a personal holding company (as defined in section 542), that tax shall be computed at the highest rate of tax specified in section 11. - § 852(b)(2)(F): Pub. L. 98–369, § 1071(b)(1), added subpar. (F). - § 852(b)(3)(B): Pub. L. 98–369, § 1001(b)(11), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 852(b)(4)(A)(i): Pub. L. 98–369, § 55(a)(1), substituted “subparagraph (B) or (D) of paragraph (3) provides that any amount with respect to any share is to be treated as long-term capital gain” for “under subparagraph (B) or (D) of paragraph (3) a shareholder of a regulated investment company is required, with respect to any share, to treat any amount as a long-term capital gain”. - § 852(b)(4)(A)(ii): Pub. L. 98–369, § 55(a)(1), substituted “6 months or less” for “less than 31 days”. - § 852(b)(4)(C): Pub. L. 98–369, § 55(a)(2), substituted “the rules of paragraphs (3) and (4) of section 246(c) shall apply in determining the period for which the taxpayer held any share of stock;” for “the rules of section 246(c)(3) shall apply in determining whether any share of stock has been held for less than 31 days;” and substituted provisions dealing with the applicable number of days for former provisions which set forth different applicable days. - § 852(b)(4)(D): Pub. L. 98–369, § 55(a)(3), added subpar. (D). - § 852(e): Pub. L. 98–369, § 1071(a)(4), added subsec. (e). ## § 854: Limitations applicable to dividends received from regulated investment company - § 854(b): Pub. L. 98–369, § 16(a), repealed amendments made by Pub. L. 97–34, § 302(c). See 1981 Amendment note below. - § 854(b)(1): Pub. L. 98–369, § 52(a), increased the required amount of dividends by substituting provisions directing that in any case in which (i) a dividend is received from a regulated investment company (other than a dividend to which subsection (a) applies), and (ii) such investment company meets the requirements of section 852(a) for the taxable year during which it paid such dividend, then, in computing any deduction under section 243, there shall be taken into account only that portion of such dividend thus designated by the regulated investment company, that if the aggregate dividends received by a regulated investment company during any taxable year are less than 95 percent of its gross income, then, in computing the exclusion under section 116, similar rules applied, and that the aggregate amount which may be designated thus dividends shall not exceed the aggregate dividends received by the company for the taxable year for provisions which had directed that in the case of a dividend received from a regulated investment company (other than a dividend to which subsection (a) applied) (A) if such investment company met the requirements of section 852(a) for the taxable year during which it paid such dividend; and (B) the aggregate dividends received by such company during such taxable year were less than 75 percent of its gross income, then, in computing the exclusion under section 116 and the deduction under section 243, there was taken into account only that portion of the dividend which bore the same ratio to the amount of such dividend as the aggregate dividends received by such company during such taxable year to its gross income for such taxable year. - § 854(b)(3)(A): Pub. L. 98–369, § 52(c), substituted provisions directing that in the case of 1 or more sales or other dispositions of stock and securities, the term “gross income” include only the excess of (i) the net short-term capital gain from such sales or dispositions, over (ii) the net long-term capital loss from such sales or dispositions for provisions which had directed that the term “gross income” not include gain from the sale or other disposition of stock or securities. - § 854(b)(4): Pub. L. 98–369, § 52(b), added par. (4). ## § 856: Definition of real estate investment trust - § 856(c)(4)(A): Pub. L. 98–369 substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 857: Taxation of real estate investment trusts and their beneficiaries - § 857(b)(3)(B): Pub. L. 98–369, § 1001(b)(13), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 857(b)(7): Pub. L. 98–369, § 55(b), substituted provisions relating to loss on sale or exchange of stock held 6 months or less for provisions which related to loss on sale or exchange of stock held 31 days or less. - § 857(b)(7): Pub. L. 98–369, § 1001(b)(13), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 857(c): Pub. L. 98–369, § 16(a), repealed amendments made by Pub. L. 97–34, § 302(c). See 1981 Amendment note below. ## § 863: Special rules for determining source - § 863(c): Pub. L. 98–369 added subsec. (c). ## § 864: Definitions and special rules - § 864(c)(2): Pub. L. 98–369, § 127(c), substituted “section 871(a)(1), section 871(h) section 881(a), or section 881(c)” for “section 871(a)(1) or section 881(a)”. - § 864(d): Pub. L. 98–369, § 123(a), added subsec. (d). ## § 871: Tax on nonresident alien individuals - § 871(a)(1): Pub. L. 98–369, § 127(a)(2), substituted “Except as provided in subsection (i), there” for “There”. - § 871(a)(1)(A): Pub. L. 98–369, § 42(a)(9), substituted “section 1273” for “section 1232(b)”. - § 871(a)(1)(C): Pub. L. 98–369, § 128(a)(1), amended subpar. (C) generally, substituting in cl. (i), “a sale or exchange of an original issue discount obligation, the amount of any gain not in excess of the original issue discount accruing while such obligation was held by the nonresident alien individual (to the extent such discount was not theretofore taken into account under clause (ii)), and” for “bonds or other evidences of indebtedness issued after September 28, 1965, and before April 1, 1972, amounts which under section 1232(a)(2)(B) are considered as ordinary income, and, in the case of corporate obligations issued after May 27, 1969, and before April 1, 1972, amounts which would be so considered but for the fact the obligations were issued after May 27, 1969,”, substituting in cl. (ii), “the payment of interest on an original issue discount obligation, an amount equal to the original issue discount accrued on such obligation since the last payment of interest thereon (except that such original issue discount shall be taken into account under this clause only to the extent that the tax thereon does not exceed the interest payment less the tax imposed by subparagraph (A) thereon), and” for “bonds or other evidences of indebtedness issued after March 31, 1972, and payable more than 6 months from the date of original issue (without regard to the period held by the taxpayer), amounts which under section 1232(a)(2)(B) would be considered as ordinary income but for the fact such obligations were issued after May 27, 1969, and”, and striking out cl. (iii) which required that in the case of the payment of interest on an obligation described in cl. (ii), an amount equal to the original issue discount, but not in excess of such interest less the tax imposed by subpar. (A) thereon, accrued on such obligation since the last payment of interest thereon, be included for purpose of the 30 percent tax. - § 871(g): Pub. L. 98–369, § 128(a)(2), added subsec. (g). Former subsec. (g), relating to cross references, redesignated (h). - § 871(g): Pub. L. 98–369, § 412(b)(1), amended subsec. (g), relating to cross references, by striking out par. (6) referring to section 6015(j) for the requirement of making a declaration of estimated tax by certain nonresident alien individuals and redesignating pars. (7) and (8) as (6) and (7), respectively. - § 871(h): Pub. L. 98–369, § 127(a), added subsec. (h). Former subsec. (h), relating to cross references, redesignated (i). - § 871(h): Pub. L. 98–369, § 128(a)(2), redesignated subsec. (g), relating to cross references, as (h). - § 871(i): Pub. L. 98–369, § 127(a)(1), redesignated subsec. (h), relating to cross references, as (i). ## § 873: Deductions - § 873(b)(1): Pub. L. 98–369 substituted “for losses” for “, for losses of property not connected with the trade or business if arising from certain casualties or theft,”. ## § 874: Allowance of deductions and credits - § 874(a): Pub. L. 98–369 substituted reference to section “33” for “32” and “34” for “39”. ## § 879: Tax treatment of certain community income in the case of nonresident alien individuals - § 879: Pub. L. 98–369, § 139(b)(1), substituted “nonresident alien individuals” for “a resident or citizen of the United States who is married to a nonresident alien individual” in section catchline. - § 879(a): Pub. L. 98–369, § 139(a), substituted in provision preceding par. (1) “married couple 1 or both of whom are nonresident alien individuals” for “citizen or resident of the United States who is married to a nonresident alien individual”. ## § 881: Tax on income of foreign corporations not connected with United States business - § 881(a): Pub. L. 98–369, § 127(b)(2), substituted “Except as provided in subsection (c), there” for “There” in introductory provision. - § 881(a)(1): Pub. L. 98–369, § 42(a)(10), substituted “section 1273” for “section 1232(b)”. - § 881(a)(3): Pub. L. 98–369, § 128(b)(1), amended par. (3) generally, substituting in subpar. (A), “a sale or exchange of an original issue discount obligation, the amount of any gain not in excess of the original issue discount accruing while such obligation was held by the foreign corporation (to the extent such discount was not theretofore taken into account under subparagraph (B)), and” for “bonds or other evidences of indebtedness issued after September 28, 1965, and before April 1, 1972, amounts which under section 1232(a)(2)(B) are considered as ordinary income, and, in the case of corporate obligations issued after May 27, 1969, and before April 1, 1972, amounts which would be so considered but for the fact the obligations were issued after May 27, 1969,”, substituting in subpar. (B), “the payment of interest on an original issue discount obligation, an amount equal to the original issue discount accrued on such obligation since the last payment of interest thereon (except that such original issue discount shall be taken into account under this subparagraph only to the extent that the tax thereon does not exceed the interest payment less the tax imposed by paragraph (1) thereon), and” for “bonds or other evidences of indebtedness issued after March 31, 1972, and payable more than 6 months from the date of original issue (without regard to the period held by the taxpayer), amounts which under section 1232(a)(2)(B) would be considered as ordinary income but for the fact such obligations were issued after May 27, 1969, and”, and striking out subpar. (C) which required that in the case of the payment of interest on an obligation described in subpar. (B), an amount equal to the original issue discount, but not in excess of such interest less the tax imposed by par. (1) thereon, accrued on such obligation since the last payment of interest thereon, be included for purpose of the 30 percent tax. - § 881(b): Pub. L. 98–369, § 130(a), amended subsec. (b) generally, substituting provision establishing an exception for certain Guam and Virgin Islands corporations for provision establishing an exception for Guam corporations. - § 881(c): Pub. L. 98–369, § 127(b)(1), as amended by Pub. L. 99–514, § 1899A(68), added subsec. (c). Former subsec. (c) redesignated (d). - § 881(c): Pub. L. 98–369, § 128(b)(2), amended subsec. (c) generally, substituting in heading “Cross reference” for “Doubling of tax” and inserting provision directing that for special rules for original issue discount, see section 871(g). - § 881(d): Pub. L. 98–369, § 127(b)(1), as amended by Pub. L. 99–514, § 1899A(68), redesignated subsec. (c) as (d). ## § 882: Tax on income of foreign corporations connected with United States business - § 882(c)(2): Pub. L. 98–369 substituted reference to section “33” for “32” and “34” for “39”. ## § 891: Doubling of rates of tax on citizens and corporations of certain foreign countries - § 891: Pub. L. 98–369 substituted “801” for “802”. ## § 901: Taxes of foreign countries and of possessions of United States - § 901(a): Pub. L. 98–369, § 612(e)(1), substituted “section 26(b)” for “section 25(b)”. - § 901(a): Pub. L. 98–369, § 474(r)(20), substituted “The credit shall not be allowed against any tax treated as a tax not imposed by this chapter under section 25(b)” for “The credit shall not be allowed against the tax imposed by section 56 (relating to corporate minimum tax), against the tax imposed for the taxable year under section 72(m)(5)(B) (relating to 10 percent tax on premature distributions to owner-employees) section 72(q)(1) (relating to 5-percent tax on premature distributions under annuity contracts),, against the tax imposed by section 402(e) (relating to tax on lump sum distributions), against the tax imposed for the taxable year by section 408(f) (relating to additional tax on income from certain retirement accounts), against the tax imposed by section 531 (relating to the tax on accumulated earnings), against the additional tax imposed for the taxable year under section 1351 (relating to recoveries of foreign expropriation losses), or against the personal holding company tax imposed by section 541”. - § 901(a): Pub. L. 98–369, § 713(c)(1)(C), substituted “premature distributions to key employees” for “premature distributions to owner-employees”. - § 901(h), § 901(i): Pub. L. 98–369, § 801(d)(1), added subsec. (h) and redesignated former subsec. (h) as (i). ## § 904: Limitation on credit - § 904(d): Pub. L. 98–369, § 801(d)(2)(C), which directed amendment of par. (1) heading by substituting “Separate application of section with respect to certain interest income and income from DISC, former DISC, FSC, or former FSC” for “Application of section in case of certain interest income and dividends from a DISC or former DISC” was executed to subsec. (d) heading to reflect the probable intent of Congress. - § 904(d)(1)(B), § 904(d)(1)(C), § 904(d)(1)(D), § 904(d)(1): Pub. L. 98–369, § 801(d)(2)(A), (B), struck out “and” after “United States,” at end of subpar. (B), substituted “taxable income attributable to foreign trade income (within the meaning of section 923(b)),” for “income other than the interest income described in paragraph (2) and dividends described in subparagraph (B),” in subpar. (C), and added subpars. (D) and (E). - § 904(d)(3): Pub. L. 98–369, § 122(a), added par. (3). - § 904(g): Pub. L. 98–369, § 121(a), added subsec. (g). Former subsec. (g) redesignated (h). - § 904(g): Pub. L. 98–369, § 474(r)(21), amended subsec. (g) generally, substituting “Coordination with nonrefundable personal credits” for “Coordination with credit for the elderly” in heading and in text substituting “reduced by the sum of the credits allowable under subpart A of part IV of subchapter A of this chapter” for “reduced by the amount of the credit (if any) for the taxable year allowable under section 37 (relating to credit for the elderly and the permanently and totally disabled)”. - § 904(h), § 904(i): Pub. L. 98–369, § 121(a), redesignated former subsecs. (g) and (h) as (h) and (i), respectively. ## § 906: Nonresident alien individuals and foreign corporations - § 906(b): Pub. L. 98–369 added par. (5). ## § 911: Citizens or residents of the United States living abroad - § 911(b)(2)(A): Pub. L. 98–369 amended table by striking out item which set the annual rate at $75,000 for taxable years beginning in 1982, substituted item setting the annual rate at $80,000 for taxable years beginning in 1983, 1984, 1985, 1986, or 1987 for items which had set annual rates of $80,000 for taxable years beginning in 1983, $85,000 for taxable years beginning in 1984, $90,000 for taxable years beginning in 1985, and $95,000 for taxable years beginning in 1986 and thereafter, and added items setting annual rates of $85,000 for taxable years beginning in 1988, $90,000 for taxable years beginning in 1989, and $95,000 for taxable years beginning in 1990 and thereafter. ## § 931: Income from sources within Guam, American Samoa, or the Northern Mariana Islands - § 931(d): Pub. L. 98–369 substituted “for losses” for “, for losses of property not connected with the trade or business if arising from certain casualties or theft,”. ## § 934: Limitation on reduction in income tax liability incurred to the Virgin Islands - § 934: Pub. L. 98–369 added subsec. (f) relating to FSC. ## § 951: Amounts included in gross income of United States shareholders - § 951: Pub. L. 98–369, § 132(c)(1), amended subsec. (d) generally, substituting provision that, if a United States shareholder is required to include in gross income an amount under both subsec. (a)(1)(A)(ii) of this section and section 551(b) of this title, such amount be included only under subsec. (a)(1)(A)(ii) of this section for provision that, if a United States shareholder is subject to tax under section 551(b) of this title, such shareholder not be required to include as gross income any amount under subsec. (a) of this section. - § 951: Pub. L. 98–369, § 801(d)(4), added subsec. (e). ## § 953: Insurance income - § 953(a)(2): Pub. L. 98–369, § 211(b)(13)(D), substituted “and (2)” for “, (2), and (3)”. - § 953(b)(1): Pub. L. 98–369, § 211(b)(13)(A), redesignated par. (2) as (1). Former par. (1), which provided that the application of part I of subchapter L of this chapter, life insurance company taxable income was the gain from operations as defined in section 809(b), was struck out. - § 953(b)(2): Pub. L. 98–369, § 211(b)(13)(B), in amending par. (2) generally, substituted - § 953(b)(2): Pub. L. 98–369, § 211(b)(13)(A), redesignated par. (3) as (2). Former par. (2) redesignated (1). - § 953(b)(3): Pub. L. 98–369, § 211(b)(13)(A), redesignated par. (4) as (3). Former par. (3) redesignated (2). - § 953(b)(3): Pub. L. 98–369, § 211(b)(13)(C)(i), substituted “section 803(a)(1)” for “section 809(c)(1)”. - § 953(b)(3): Pub. L. 98–369, § 211(b)(13)(C)(ii), substituted “section 803(a)(2)” for “section 809(c)(2)”. - § 953(b)(3): Pub. L. 98–369, § 211(b)(13)(C)(iii), substituted “section 805(a)(2)” for “section 809(d)(2)”. - § 953(b)(4), § 953(b): Pub. L. 98–369, § 211(b)(13)(A), (E), redesignated par. (5) as (4) and substituted “paragraph (3)” for “paragraph (4)”. Former par. (4) redesignated (3). ## § 954: Foreign base company income - § 954(e): Pub. L. 98–369, § 137(a), inserted provision that for purposes of par. (2) services performed with respect to any insurance or reinsurance policy be treated as performed in the country of risk. - § 954(h)(1): Pub. L. 98–369, § 712(f), substituted “paragraphs (2) and (3) of section 907(c)” for “section 907(c)(2)”. ## § 956: Investment of earnings in United States property - § 956(b)(2): Pub. L. 98–369, § 801(d)(8), added subpar. (I). - § 956(b)(3): Pub. L. 98–369, § 123(b), added par. (3). ## § 959: Exclusion from gross income of previously taxed earnings and profits - § 959(e): Pub. L. 98–369 added subsec. (e). ## § 982: Admissibility of documentation maintained in foreign countries - § 982(d)(3), § 982(d): Pub. L. 98–369 redesignated par. (4) as (3) and struck out former par. (3) which provided that an item was to be treated as foreign connected if directly or indirectly from a source outside the United States, or the item (in whole or in part) purported to arise outside the United States, or was otherwise dependent on transactions occurring outside the United States. ## § 992: Requirements of a domestic international sales corporation - § 992(a)(1): Pub. L. 98–369 added subpar. (E). ## § 993: Definitions and special rules - § 993(a)(3): Pub. L. 98–369 substituted “the term ‘controlled group of corporations’ by” for “such term by”. ## § 995: Taxation of DISC income to shareholders - § 995(b)(1)(E): Pub. L. 98–369, § 802(b)(1), substituted “of the DISC attributable to qualified export receipts of the DISC for the taxable year which exceed $10,000,000” for “for the taxable year attributable to base period export gross receipts (as defined in subsection (e))”. - § 995(b)(1)(F)(i): Pub. L. 98–369, § 68(d), substituted “one-seventeenth” for “one/half”. - § 995(b)(4): Pub. L. 98–369, § 802(b)(2), added par. (4). - § 995(e): Pub. L. 98–369, § 802(a)(1), (2), redesignated subsec. (g) as (e). Former subsec. (e), which related to definitions and special rules relating to computation of taxable income attributable to base period export gross receipts, was struck out. - § 995(f): Pub. L. 98–369, § 802(a)(1), (3), added subsec. (f). Former subsec. (f), which related to small DISCs, was struck out. - § 995(g): Pub. L. 98–369, § 802(a)(2), redesignated subsec. (g) as (e). ## § 996: Rules for allocation in the case of distributions and losses - § 996(g): Pub. L. 98–369 inserted “and which are derived from sources within the United States”. ## § 999: Reports by taxpayers; determinations - § 999(c)(1), § 999(c)(2): Pub. L. 98–369 which substituted “995(b)(1)(F)(i)” for “995(b)(1)(F)(ii)” wherever appearing was repealed. See 1986 Amendment note above. ## § 1001: Determination of amount of and recognition of gain or loss - § 1001(e)(1): Pub. L. 98–369 inserted reference to section 1041. ## § 1015: Basis of property acquired by gifts and transfers in trust - § 1015(e): Pub. L. 98–369 added subsec. (e). ## § 1016: Adjustments to basis - § 1016(a)(17): Pub. L. 98–369, § 211(b)(14), substituted “section 811(b)” for “section 818(b)” in two places. - § 1016(a)(21): Pub. L. 98–369, § 474(r)(23), substituted “section 23(e)” for “section 44C(e)” and “section 23” for “section 44C”. - § 1016(a)(26): Pub. L. 98–369, § 53(d)(3), added par. (26). - § 1016(a)(27): Pub. L. 98–369, § 541(b)(2), added par. (27). - § 1016(b): Pub. L. 98–369, § 43(a)(2), struck out “The term ‘substituted basis’ as used in this section means a basis determined under any provision of this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses), or under any corresponding provision of a prior income tax law, providing that the basis shall be determined (1) by reference to the basis in the hands of a transferor, donor, or grantor, or (2) by reference to other property held at any time by the person for whom the basis is to be determined.” See section 7701(a)(42) of this title. ## § 1031: Exchange of real property held for productive use or investment - § 1031(a): Pub. L. 98–369, § 77(a), in amending subsec. generally, designated existing provisions as par. (1), substituted “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment” for “No gain or loss shall be recognized if property held for productive use in trade or business or for investment (not including stock in trade or other property held primarily for sale, nor stocks, bonds, notes, choses in action, certificates of trust or beneficial interest, or other securities or evidences of indebtedness or interest) is exchanged solely for property of a like kind to be held either for productive use in trade or business or for investment”, and added pars. (2) and (3). ## § 1032: Exchange of stock for property - § 1032(a): Pub. L. 98–369 inserted provision that no gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option to buy or sell its stock (including treasury stock). ## § 1033: Involuntary conversions - § 1033(g)(3)(A): Pub. L. 98–369 substituted “the investment credit determined under section 46(a)” for “the credit allowed by section 38 (relating to investment in certain depreciable property)”. ## § 1035: Certain exchanges of insurance policies - § 1035(b)(1): Pub. L. 98–369, § 224(a), which directed the substitution of “an insurance company subject to tax under subchapter L” for “a life insurance company as defined in section 801”, was executed by making such substitution for “a life insurance company as defined in section 816” to reflect the probable intent of Congress and the earlier amendment by Pub. L. 98–369, § 211(b)(15), which substituted “as defined in section 816” for “as defined in section 801”. - § 1035(b)(1): Pub. L. 98–369, § 211(b)(15), substituted “section 816” for “section 801”. ## § 1037: Certain exchanges of United States obligations - § 1037(b): Pub. L. 98–369, § 42(a)(11)(C), substituted “original issue discount rules” for “section 1232” in heading. - § 1037(b)(1): Pub. L. 98–369, § 42(a)(11)(A), (B), substituted “section 1271(c)(2)” for “section 1232(a)(2)(B)”, and “subpart A of part V of subchapter P” for “section 1232”. - § 1037(b)(2): Pub. L. 98–369, § 42(a)(11)(B), substituted “subpart A of part V of subchapter P” for “section 1232”. ## § 1041: Transfers of property between spouses or incident to divorce - Enacted 26 U.S.C. § 1041. ## § 1042: Sales of stock to employee stock ownership plans or certain cooperatives - Enacted 26 U.S.C. § 1042. ## § 1059: Corporate shareholder’s basis in stock reduced by nontaxed portion of extraordinary dividends - Enacted 26 U.S.C. § 1059. ## § 1063: Cross references ## § 1091: Loss from wash sales of stock or securities - § 1091(a): Pub. L. 98–369, § 106(b), substituted “no deduction shall be allowed under section 165 unless the taxpayer is a dealer in stock or securities and the loss is sustained in a transaction made in the ordinary course of such business” for “no deduction for the loss shall be allowed under section 165(c)(2); nor shall such deduction be allowed a corporation under section 165(a) unless it is a dealer in stocks or securities, and the loss is sustained in a transaction made in the ordinary course of business”. - § 1091(e): Pub. L. 98–369, § 106(a), added subsec. (e). ## § 1092: Straddles - § 1092(a)(2)(B)(i): Pub. L. 98–369, § 107(a), designated existing provisions as subcl. (I) and added subcl. (II). - § 1092(b): Pub. L. 98–369, § 103(a), amended subsec. (b) generally, substituting provisions dealing with regulations for provisions dealing with character of gain or loss and wash sales. - § 1092(c)(4): Pub. L. 98–369, § 101(a)(2), added par. (4). - § 1092(d)(1): Pub. L. 98–369, § 101(b)(1), struck out “(other than stock)” before “of a type”. - § 1092(d)(2): Pub. L. 98–369, § 101(a)(1), redesignated former subpar. (A) as entire par. (2), and struck out former subpar. (B) which provided that “position” includes any stock option which is a part of a straddle and which is an option to buy or sell stock which is actively traded, but does not include a stock option which (i) is traded on a domestic exchange or on a similar foreign exchange designated by the Secretary, and (ii) is of a type with respect to which the maximum period during which such option may be exercised is less than the minimum period for which a capital asset must be held for gain to be treated as long-term capital gain under section 1222(3). - § 1092(d)(3), § 1092(d)(4): Pub. L. 98–369, § 101(b)(2), as amended by Pub. L. 99–514, § 1899A(66), added par. (3) and redesignated former pars. (3) and (4) as (4) and (5), respectively. - § 1092(d)(5): Pub. L. 98–369, § 101(d), amended par. (4) generally, substituting provisions relating to special rules for section 1256 contracts for provisions relating to special rules for regulated futures contracts. - § 1092(d)(5): Pub. L. 98–369, § 101(b)(2), as amended by Pub. L. 99–514, § 1899A(66), redesignated former par. (4) as (5). Former par. (5) redesignated (6). - § 1092(d)(6): Pub. L. 98–369, § 102(e)(2), amended par. (5) generally, substituting references to section 1256 contracts for references to regulated futures contracts wherever appearing in heading and text. - § 1092(d)(6): Pub. L. 98–369, § 101(b)(2), as amended by Pub. L. 99–514, § 1899A(66), redesignated former par. (5) as (6). - § 1092(f), § 1092(g): Pub. L. 98–369, § 101(c), added subsec. (f) and redesignated former subsec. (f) as (g). ## § 1212: Capital loss carrybacks and carryovers - § 1212(b): Pub. L. 98–369, § 1002(a), struck out par. (3) which read as follows: “In the case of any amount which, under paragraph (1) and section 1211(b) (as in effect for taxable years beginning before January 1, 1970), is treated as a capital loss in the first taxable year beginning after December 31, 1969, paragraph (1) and section 1211(b) (as in effect for taxable years beginning before January 1, 1970) shall apply (and paragraph (1) and section 1211(b) as in effect for taxable years beginning after December 31, 1969, shall not apply) to the extent such amount exceeds the total of any net capital gains (determined without regard to this subsection) of taxable years beginning after December 31, 1969.” - § 1212(c): Pub. L. 98–369, § 102(e)(3)(A), (B), substituted “net section 1256 contracts loss” for “net commodity futures loss” and “section 1256 contracts” for “regulated futures contracts” wherever appearing. - § 1212(c)(3)(A), § 1212(c)(5): Pub. L. 98–369, § 102(e)(3)(D), substituted “net section 1256 contract gain” for “net commodity futures gain” wherever appearing. - § 1212(c)(6)(B), § 1212(c)(7)(A): Pub. L. 98–369, § 102(e)(3)(C), as amended by Pub. L. 99–514, § 1899A(67), substituted “section 1256 contract” for “regulated futures contract” wherever appearing. ## § 1222: Other terms relating to capital gains and losses - § 1222(1), § 1222(2), § 1222(3), § 1222(4): Pub. L. 98–369 substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 1223: Holding period of property - § 1223(11), § 1223(12): Pub. L. 98–369, § 1001(b)(14), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 1223(13): Pub. L. 98–369, § 541(b)(1), added par. (13). Former par. (13) redesignated (14). - § 1223(14): Pub. L. 98–369, § 541(b)(1), redesignated former par. (13) as (14). - § 1223(14): Pub. L. 98–369, § 54(c), designated existing cross reference as subpar. (A) and added subpar. (B). ## § 1231: Property used in the trade or business and involuntary conversions - § 1231(a): Pub. L. 98–369, § 1001(b)(15), (e), substituted “6 months” for “1 year” wherever appearing, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 1231(a): Pub. L. 98–369, § 711(c)(2)(A)(iii), amended subsec. (a) generally, substituting pars. (1) to (4), for “If, during the taxable year, the recognized gains on sales or exchanges of property used in the trade or business, plus the recognized gains from the compulsory or involuntary conversion (as a result of destruction in whole or in part, theft or seizure, or an exercise of the power of requisition or condemnation or the threat or imminence thereof) of property used in the trade or business and capital assets held for more than 1 year into other property or money, exceed the recognized losses from such sales, exchanges, and conversions, such gains and losses shall be considered as gains and losses from sales or exchanges of capital assets held for more than 1 year. If such gains do not exceed such losses, such gains and losses shall not be considered as gains and losses from sales or exchanges of capital assets. For purposes of this subsection— - § 1231(b)(1), § 1231(b)(4): Pub. L. 98–369, § 1001(b)(15), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 1231(c): Pub. L. 98–369, § 176(a), added subsec. (c). ## § 1233: Gains and losses from short sales - § 1233(b), § 1233(d), § 1233(e)(4)(A)(i): Pub. L. 98–369 substituted “6 months” for “1 year” wherever appearing, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 1234: Options to buy or sell - § 1234(b)(1): Pub. L. 98–369, § 1001(b)(18), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 1234(c): Pub. L. 98–369, § 105(a), added subsec. (c). ## § 1234A: Gains or losses from certain terminations - § 1234A: Pub. L. 98–369, § 102(e)(9), inserted at end “The preceding sentence shall not apply to the retirement of any debt instrument (whether or not through a trust or other participation arrangement).” - § 1234A(2): Pub. L. 98–369, § 102(e)(4), substituted “a section 1256 contract” for “a regulated futures contract”. ## § 1235: Sale or exchange of patents - § 1235(a): Pub. L. 98–369, § 1001(b)(19), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 1235(d): Pub. L. 98–369, § 174(b)(5)(C), substituted “section 267(b) or persons described in section 707(b)” for “section 267(b)” and “section 267(b) and (c) and section 707(b)” for “section 267(b) and (c)” in introductory provisions, and substituted “section 267(b) or 707(b)” for “section 267(b)” in par. (1). ## § 1236: Dealers in securities - § 1236(a)(1): Pub. L. 98–369, § 107(b)(1), substituted “the security was, before the close of the day on which it was acquired (or such earlier time as the Secretary may prescribe by regulations), clearly identified in the dealer’s records as a security held for investment; and” for “the security was, before the close of the day on which it was acquired (before the close of the following day in the case of an acquisition before January 1, 1982), clearly identified in the dealer’s records as a security held for investment or if acquired before October 20, 1951, was so identified before November 20, 1951; and”. - § 1236(a)(2): Pub. L. 98–369, § 107(b)(2), inserted “(or such earlier time)” after “such day”. ## § 1239: Gain from sale of depreciable property between certain related taxpayers - § 1239(b): Pub. L. 98–369, § 421(b)(6), redesignated pars. (2) and (3) as (1) and (2), respectively. Former par. (1), defining a husband and wife as “related persons”, was struck out. - § 1239(b): Pub. L. 98–369, § 175(b), amended subsec. (b) generally, adding par. (3). - § 1239(d): Pub. L. 98–369, § 557(a), added subsec. (d). - § 1239(e): Pub. L. 98–369, § 175(a), added subsec. (e). ## § 1244: Losses on small business stock - § 1244(c)(1), § 1244(d)(2): Pub. L. 98–369 substituted “stock in a” for “common stock in a”. ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a): Pub. L. 98–369, § 111(e)(5), substituted “18-year real property and low-income housing” for “15-year real property”. - § 1245(d): Pub. L. 98–369, § 111(e)(10), substituted “low-income housing (within the meaning of section 168(c)(2)(F))” for “15-year real property which is described in clause (i), (ii), (iii), or (iv) of section 1250(a)(1)(B)”. ## § 1248: Gain from certain sales or exchanges of stock in certain foreign corporations - § 1248(b): Pub. L. 98–369, § 1001(b)(22), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 1248(c)(2)(D): Pub. L. 98–369, § 133(c), substituted “section 958(a)” for “section 958(a)(2)”. - § 1248(d)(6): Pub. L. 98–369, § 801(d)(6), added par. (6). - § 1248(g): Pub. L. 98–369, § 1001(b)(22), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. - § 1248(i): Pub. L. 98–369, § 133(a), added subsec. (i). - § 1248(j): Pub. L. 98–369, § 133(b)(2), added subsec. (j). ## § 1250: Gain from dispositions of certain depreciable realty - § 1250(a)(4): Pub. L. 98–369 added par. (4). ## § 1252: Gain from disposition of farm land - § 1252(a)(1): Pub. L. 98–369 struck out “, except that this section shall not apply to the extent section 1251 applies to such gain” after “of this subtitle” in last sentence. ## § 1256: Section 1256 contracts marked to market - § 1256: Pub. L. 98–369, § 102(e)(5), substituted “Section 1256 contracts” for “Regulated futures contracts” in section catchline. - § 1256(a)(1), § 1256(a)(3), § 1256(a)(4): Pub. L. 98–369, § 102(a)(1), substituted “section 1256 contract” for “regulated futures contract” and “section 1256 contracts” for “regulated futures contracts” wherever appearing. - § 1256(b): Pub. L. 98–369, § 102(a)(2), in par. (1), substituted “any regulated futures contract” for “with respect to which the amount required to be deposited and the amount which may be withdrawn depends on the system of marking to market; and”, in par. (2), substituted “any foreign currency contract,” for “which is traded on or subject to the rules of a domestic board of trade designated as a contract market by the Commodity Futures Trading Commission or of any board of trade or exchange which the Secretary determines has rules adequate to carry out the purposes of this section. Such term includes any foreign currency contract.”, and added pars. (3) and (4). - § 1256(c)(1): Pub. L. 98–369, § 102(a)(1)(A), (e)(1)(A), substituted “section 1256 contracts” for “regulated futures contracts”, and “by taking or making delivery, by exercise or being exercised, by assignment or being assigned, by lapse,” for “by taking or making delivery,”. - § 1256(c)(2): Pub. L. 98–369, § 102(e)(1)(C), substituted “takes delivery on or exercises” for “takes delivery on” in heading. - § 1256(c)(2)(A): Pub. L. 98–369, § 102(a)(1)(B), substituted “section 1256 contracts” for “regulated futures contracts”. - § 1256(c)(2)(B): Pub. L. 98–369, § 102(e)(1)(B), substituted “takes delivery under or exercises” for “takes delivery under”. - § 1256(d)(1), § 1256(d)(4)(A): Pub. L. 98–369, § 102(a)(1)(B), substituted “section 1256 contracts” for “regulated futures contracts”. - § 1256(d)(4)(B): Pub. L. 98–369, § 102(a)(1)(A), substituted “section 1256 contract” for “regulated futures contract”. - § 1256(d)(4)(B): Pub. L. 98–369, § 107(c), inserted “(or such earlier time as the Secretary may prescribe by regulations)”. - § 1256(e)(2): Pub. L. 98–369, § 107(d), inserted “(or such earlier time as the Secretary may prescribe by regulations”. - § 1256(e): Pub. L. 98–369, § 104(a), added par. (5). - § 1256(f)(3), § 1256(f)(4): Pub. L. 98–369, § 102(b), added pars. (3) and (4). - § 1256(g): Pub. L. 98–369, § 102(a)(3), in amending subsec. (g) generally, inserted provisions relating to regulated futures contracts as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (2), and added pars. (3) to (8). - § 1256(g)(1)(A): Pub. L. 98–369, § 722(a)(2), inserted “, or the settlement of which depends on the value of,” after “delivery of”. ## § 1271: Treatment of amounts received on retirement or sale or exchange of debt instruments - Enacted 26 U.S.C. § 1271. ## § 1272: Current inclusion in income of original issue discount - Enacted 26 U.S.C. § 1272. ## § 1273: Determination of amount of original issue discount - Enacted 26 U.S.C. § 1273. ## § 1274: Determination of issue price in the case of certain debt instruments issued for property - Enacted 26 U.S.C. § 1274. ## § 1275: Other definitions and special rules - Enacted 26 U.S.C. § 1275. - § 1275(a)(4): Pub. L. 98–369, § 61(c)(2), added par. (4) relating to treatment of obligations distributed to corporations. ## § 1276: Disposition gain representing accrued market discount treated as ordinary income - Enacted 26 U.S.C. § 1276. ## § 1277: Deferral of interest deduction allocable to accrued market discount - Enacted 26 U.S.C. § 1277. ## § 1278: Definitions and special rules - Enacted 26 U.S.C. § 1278. - § 1278(a)(1)(B)(i): Pub. L. 98–369, § 1001(b)(24), as added by Pub. L. 99–514, § 1878(a), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. ## § 1281: Current inclusion in income of discount on certain short-term obligations - Enacted 26 U.S.C. § 1281. ## § 1282: Deferral of interest deduction allocable to accrued discount - Enacted 26 U.S.C. § 1282. ## § 1283: Definitions and special rules - Enacted 26 U.S.C. § 1283. ## § 1286: Tax treatment of stripped bonds - Enacted 26 U.S.C. § 1286. ## § 1287: Denial of capital gain treatment for gains on certain obligations not in registered form - Enacted 26 U.S.C. § 1287. ## § 1288: Treatment of original issue discount on tax-exempt obligations - Enacted 26 U.S.C. § 1288. ## § 1351: Treatment of recoveries of foreign expropriation losses - § 1351(a)(1): Pub. L. 98–369, § 211(b)(18)(A), substituted “801” for “802” in two places. - § 1351(c)(2): Pub. L. 98–369, § 211(b)(18)(B), substituted “section 807(c)” for “section 810(c)”. - § 1351(h): Pub. L. 98–369, § 42(a)(12), substituted “section 1273(a)” for “section 1232(a)(2)”. - § 1351(i)(1): Pub. L. 98–369, § 474(r)(25)(A), substituted “section 27” for “section 33”. - § 1351(i)(2): Pub. L. 98–369, § 474(r)(25)(B), substituted “section 38 (relating to general business credit)” for “section 38 (relating to investment credit)”. - § 1351(i)(3): Pub. L. 98–369, § 211(b)(18)(C), substituted “section 810” for “section 812”. ## § 1361: S corporation defined - § 1361(c)(6): Pub. L. 98–369, § 721(c), amended par. (6) generally, substituting “during any period within a taxable year” for “during any taxable year” in provisions preceding subpar. (A), and substituting “on or before the close of such period” for “on or after the date of its incorporation and before the close of such taxable year” in subpar. (A), and “does not have gross income for such period” for “does not have taxable income for the period included within such taxable year” in subpar. (B). - § 1361(d)(2)(B)(i): Pub. L. 98–369, § 721(f)(3), substituted “corporation” for “S corporation” in heading and text. - § 1361(d)(2)(D): Pub. L. 98–369, § 721(f)(1), substituted “15 days and 2 months” for “60 days”. - § 1361(d)(3): Pub. L. 98–369, § 721(f)(2), in amending par. (3) generally, redesignated subpar. (C) as (A), substituted a period for “, and” at end of subpar. (B), and struck out former subpar. (A) which read “which owns stock in 1 or more S corporations”. - § 1361(d)(4): Pub. L. 98–369, § 721(f)(2), in amending par. (4) generally, redesignated existing provisions as subpar. (A), inserted “Failure to meet requirements of paragraph (3)(A)” as subpar. (A) heading, substituted “of paragraph (3)(A)” for “under paragraph (3)”, and added subpar. (B). ## § 1362: Election; revocation; termination - § 1362(b)(3)(B): Pub. L. 98–369, § 721(l)(2), substituted “on or before the 15th day of the 3rd month of the following taxable year” for “on or before the last day of such taxable year”. - § 1362(b)(4): Pub. L. 98–369, § 721(l)(1), added par. (4). - § 1362(d)(3): Pub. L. 98–369, § 102(d)(2), added cl. (v). - § 1362(e)(2): Pub. L. 98–369, § 721(g)(2), substituted “as provided in paragraph (3) and subparagraphs (C) and (D) of paragraph (6)” for “as provided in paragraph (3)”. - § 1362(e)(3)(B): Pub. L. 98–369, § 721(h), struck out “All” in heading, and substituted “subsection” for “paragraph” and “S short year and all persons who are shareholders in the corporation on the first day of the C short year” for “S termination year” in text. - § 1362(e)(6)(C): Pub. L. 98–369, § 721(g)(1), added subpar. (C). - § 1362(e)(6)(D): Pub. L. 98–369, § 721(t), added subpar. (D). ## § 1363: Effect of election on corporation - § 1363(b)(4): Pub. L. 98–369, § 721(p), added par. (4). - § 1363(c)(2): Pub. L. 98–369, § 721(b)(1), redesignated subpars. (B) to (D) as (A) to (C), respectively, and struck out subpar. (A) which provided “subsection (b)(5) or (d)(4) of section 108 (relating to income from discharge of indebtedness),”. - § 1363(d): Pub. L. 98–369, § 721(a)(2), substituted “Except as provided in subsection (e), if” for “If”. - § 1363: Pub. L. 98–369, § 721(a)(1), added subsec. (e). ## § 1366: Pass-thru of items to shareholders - § 1366(f): Pub. L. 98–369, § 474(r)(26), substituted “section 34” for “section 39” in heading and text. - § 1366(f)(1): Pub. L. 98–369, § 735(c)(16), substituted “and special fuels” for “, special fuels, and lubricating oil”. ## § 1367: Adjustments to basis of stock of shareholders, etc. - § 1367(a)(2)(E): Pub. L. 98–369, § 722(e)(2), substituted “for any oil and gas property held by the S corporation to the extent such deduction does not exceed the proportionate share of the adjusted basis of such property allocated to such shareholder under section 613A(c)(13)(B)” for “under section 611 with respect to oil and gas wells”. - § 1367(b)(2)(B): Pub. L. 98–369, § 721(w), substituted “for any taxable year beginning after December 31, 1982, there is” for “for any taxable year there is”. - § 1367(b)(3): Pub. L. 98–369, § 721(d), inserted “and 166(d)” in heading and text. ## § 1368: Distributions - § 1368(c): Pub. L. 98–369, § 721(r)(2), inserted “Except to the extent provided in regulations, if the distributions during the taxable year exceed the amount in the accumulated adjustments account at the close of the taxable year, for purposes of this subsection, the balance of such account shall be allocated among such distributions in proportion to their respective sizes.” - § 1368(e)(1)(A): Pub. L. 98–369, § 721(r)(1), substituted “(except that no adjustment shall be made for income (and related expenses) which is exempt from tax under this title and the phrase ‘(but not below zero)’ shall be disregarded in section 1367(b)(2)(A))” for “(except that no adjustment shall be made for income which is exempt from tax under this title and no adjustment shall be made for any expense not deductible in computing the corporation’s taxable income and not properly chargeable to capital account)”. ## § 1371: Coordination with subchapter C - § 1371(c)(1): Pub. L. 98–369, § 621(e)(2), substituted “paragraphs (2) and (3) and subsection (d)(3)” for “paragraphs (2) and (3)”. - § 1371(d)(3): Pub. L. 98–369, § 721(e)(1), added par. (3). - § 1371(e): Pub. L. 98–369, § 721(o), amended subsec. (e) generally, designating existing provisions as par. (1) and adding par. (2). - § 1371(e)(2): Pub. L. 98–369, § 721(x)(3), inserted “(within the meaning of section 1368(e))”. ## § 1374: Tax imposed on certain built-in gains - § 1374(b): Pub. L. 98–369, § 474(r)(27), substituted “section 34” for “section 39” in provisions following par. (2). - § 1374(c)(2): Pub. L. 98–369, § 721(u), struck out “(and any predecessor corporation)” before “has been in existence” in subpar. (A), and inserted provision that to the extent provided in regulations, an S corporation and any predecessor corporation shall be treated as 1 corporation for purposes of this paragraph and paragraph (1). - § 1374(c): Pub. L. 98–369, § 102(d)(1), added par. (4). ## § 1375: Tax imposed when passive investment income of corporation having accumulated earnings and profits exceeds 25 percent of gross receipts - § 1375(c): Pub. L. 98–369, § 474(r)(28), substituted “section 34” for “section 39”. - § 1375(d): Pub. L. 98–369, § 721(v), added subsec. (d). ## § 1378: Taxable year of S corporation - § 1378: Pub. L. 98–369, § 721(m), substituted “which includes December 31, 1982 (or which is an S corporation for a taxable year beginning during 1983 by reason of an election made on or before October 19, 1982)” for “which includes December 31, 1982”. - § 1378: Pub. L. 98–369, § 721(q), substituted “who (or whose estate) held” for “who held”. ## § 1379: Transitional rules on enactment - § 1379(b): Pub. L. 98–369 struck out “In applying this subchapter to any taxable year beginning after December 31, 1982,” and substituted “Any references in this title to a provision” for “any reference in this subchapter to another provision”. ## § 1402: Definitions - § 1402(a)(14): Pub. L. 98–369, § 2603(d)(2), added par. (14). - § 1402(c)(1), § 1402(c)(2)(E): Pub. L. 98–369, § 2663(j)(5)(B), substituted “Secretary of Health and Human Services” for “Secretary of Health, Education, and Welfare”. - § 1402(c)(2)(G): Pub. L. 98–369, § 2603(c)(2), added subpar. (G). - § 1402(g)(1), § 1402(g)(3): Pub. L. 98–369, § 2663(j)(5)(B), substituted “Secretary of Health and Human Services” for “Secretary of Health, Education, and Welfare”. - § 1402(i): Pub. L. 98–369, § 102(c)(1), added subsec. (i). ## § 1403: Miscellaneous provisions - § 1403(b): Pub. L. 98–369 struck out par. (3) referring to section 6015 for provisions relating to declarations of estimated tax on self-employment income. ## § 1441: Withholding of tax on nonresident aliens - § 1441(a): Pub. L. 98–369, § 474(r)(29)(G), struck out “except in the cases provided for in section 1451 and” before “except as otherwise provided in regulations”. - § 1441(b): Pub. L. 98–369, § 42(a)(13), substituted “section 1273” for “section 1232(b)”. - § 1441(c)(3): Pub. L. 98–369, § 474(r)(29)(H), inserted “(as in effect before its repeal by the Tax Reform Act of 1984)”. - § 1441(c)(9): Pub. L. 98–369, § 127(e)(1), added par. (9). ## § 1442: Withholding of tax on foreign corporations - § 1442(a): Pub. L. 98–369, § 474(r)(29)(I), struck out “or section 1451” after “provided in section 1441” and struck out “; except that, in the case of interest described in section 1451 (relating to tax-free covenant bonds), the deduction and withholding shall be at the rate specified therein” after “a tax equal to 30 percent thereof”. - § 1442(a): Pub. L. 98–369, § 127(e)(2), struck out “and” after “section 881(a)(4),” and inserted “, and the references in section 1449(c)(9) to sections 871(h)(2) and 871(h)(3) shall be treated as referring to sections 881(c)(2) and 881(c)(3)”. - § 1442(c): Pub. L. 98–369, § 130(b), substituted provision relating to exception for certain Guam and Virgin Islands corporations for provision relating to exception for Guam corporations. ## § 1445: Withholding of tax on dispositions of United States real property interests - Enacted 26 U.S.C. § 1445. ## § 1503: Computation and payment of tax - § 1503(c): Pub. L. 98–369, § 211(b)(19)(A), (C), substituted “section 801” for “section 802” in heading, and wherever appearing in text. - § 1503(c)(1): Pub. L. 98–369, § 211(b)(19)(B), struck out provision that for purposes of this subsection, in determining the taxable income of each insurance company subject to tax under section 802, section 802(b)(3) would not be taken into account. ## § 1504: Definitions - § 1504(a): Pub. L. 98–369, § 60(a), in amending subsec. (a), generally, revised existing provisions of subsec. (a) into pars. (1), (2), and (4), added pars. (3) and (5), revised definition of “affiliated group”, and expanded the enumeration of securities not included under term “stock”. - § 1504(b)(2), § 1504(c)(1), § 1504(c)(2)(A): Pub. L. 98–369, § 211(b)(20), substituted “section 801” for “section 802”. ## § 1561: Limitation on accumulated earnings credit in the case of certain controlled corporations - § 1561(a): Pub. L. 98–369, § 211(b)(21)(A), inserted “and” at end of par. (1), substituted a period for the comma at end of par. (2), struck out par. (3) which read as follows: “one $25,000 amount for purposes of computing the limitation on the small business deduction of life insurance companies under sections 804(a)(3) and 809(d)(10), and”, struck out par. (4) which read as follows: “one $1,000,000 amount (adjusted as provided in section 809(f)(3) for purposes of computing the limitation under paragraph (1) or (2) of section 809(f).”, and substituted “paragraph (2)” for “paragraphs (2), (3), and (4)” in concluding provisions. - § 1561(a): Pub. L. 98–369, § 66(b), inserted provision that notwithstanding paragraph (1), in applying last sentence of section 11(b) to such component members, the taxable income of all such component members shall be taken into account and any increase in tax under the last sentence shall be divided among such component members in the same manner as amounts under paragraph (1). - § 1561(b): Pub. L. 98–369, § 211(b)(21)(B), inserted “and” at end of par. (1), struck out par. (3) which read as follows: “the amount to be used in computing the limitation on the small business deduction of life insurance companies under sections 804(a)(3) and 809(d)(10), and”, struck out par. (4) which read as follows: “the amount (adjusted as provided in section 809(f)(3)) to be used in computing the limitation under paragraph (1) or (2) of section 809(f),”, and substituted “or (2)” for “, (2), (3), or (4)” in concluding provisions. ## § 1563: Definitions and special rules - § 1563(a)(4), § 1563(b)(2)(D): Pub. L. 98–369 substituted “section 801” for “section 802”. ## § 2001: Imposition and rate of tax - § 2001(c): Pub. L. 98–369 substituted “1988” for “1985” in subpar. (A) and substituted “1984, 1985, 1986, or 1987” for “1984” in heading and text of subpar. (D). ## § 2002: Liability for payment - § 2002: Pub. L. 98–369 inserted exception phrase. ## § 2032: Alternate valuation - § 2032(c): Pub. L. 98–369, § 1023(a), added subsec. (c). Former subsec. (c) redesignated (d). - § 2032(d): Pub. L. 98–369, § 1024(a), substituted “Election” for “Time of election” in heading, designated existing text as par. (1), inserted heading “In general”, substituted “shall be made by the executor on the return of the tax imposed by this chapter” for “shall be exercised by the executor on his return if filed within the time prescribed by law or before the expiration of any extension of time granted pursuant to law for the filing of the return”, inserted sentence providing that an election, once made, is irrevocable, and added par. (2). - § 2032(d): Pub. L. 98–369, § 1023(a), redesignated subsec. (c) as (d). ## § 2032A: Valuation of certain farm, etc., real property - § 2032A(d)(3): Pub. L. 98–369 added par. (3). ## § 2039: Annuities - § 2039: Pub. L. 98–369, § 525(a), substituted provisions relating to exception of certain annuity interests created by community property laws for provisions which related to exemption of annuities under certain trusts and plans. - § 2039: Pub. L. 98–369, § 525(a), struck out subsec. (d) which related to exemption of certain annuity interests created by community property laws. See subsec. (c) of this section. - § 2039: Pub. L. 98–369, § 525(a), struck out subsec. (e) which related to exclusion of individual retirement accounts. - § 2039: Pub. L. 98–369, § 491(d)(34), inserted “or” at end of par. (1), substituted a period for “, or” at end of par. (2), struck out par. (3) which excluded from the value of the gross estate the value of an annuity receivable by any beneficiary, other than the executor, under a retirement bond described in section 409(a), and substituted in provision following par. (2) “or 408(d)(3)” for “405(d)(3), 408(d)(3), or 409(b)(3)(C)”, and substituted “or annuity” for “, annuity, or bond” wherever appearing. - § 2039: Pub. L. 98–369, § 525(a), struck out subsec. (f) which related to lump sum distributions and an exception where the recipient elects not to take 10-year averaging, and subsec. (g) which related to a $100,000 limitation on the exclusions under subsecs. (c) and (e). ## § 2043: Transfers for insufficient consideration - § 2043(b): Pub. L. 98–369 amended subsec. (b) generally, designating existing provisions as par. (1) and adding par. (2). ## § 2053: Expenses, indebtedness, and taxes - § 2053(c)(1)(C): Pub. L. 98–369, § 1027(b), added subpar. (C). - § 2053(e): Pub. L. 98–369, § 425(a)(2), substituted “For provisions treating certain relinquishments of marital rights as consideration in money or money’s worth, see section 2043(b)(2)” for “For provisions that relinquishment of marital rights shall not be deemed a consideration ‘in money or money’s worth,’ see section 2043(b).” ## § 2055: Transfers for public, charitable, and religious uses - § 2055(e)(3): Pub. L. 98–369, § 1022(a), amended par. (3) generally, substituting provisions relating to reformations to comply with par. (2), defining “qualified reformation”, “reformable interest”, and “qualified interest”, and setting forth limitations on the deduction, a special rule where the income beneficiary dies, statute of limitations, regulations prescribed by the Secretary, and reformations permitted in the case of remainder interests in a residence or farm, pooled income funds, etc., for former par. (3), which provided: “In the case of a will executed before December 31, 1978, or a trust created before such date, if a deduction is not allowable at the time of the decedent’s death because of the failure of an interest in property which passes from the decedent to a person, or for a use, described in subsection (a) to meet the requirements of subparagraph (A) or (B) of paragraph (2) of this subsection, and if the governing instrument is amended or conformed on or before December 31, 1981, or, if later, on or before the 30th day after the date on which judicial proceedings begun on or before December 31, 1981, (which are required to amend or conform the governing instrument), become final, so that the interest is in a trust which meets the requirements of such subparagraph (A) or (B) (as the case may be), a deduction shall nevertheless be allowed. The Secretary may, by regulation, provide for the application of the provisions of this paragraph to trusts whose governing instruments are amended or conformed in accordance with this paragraph, and such regulations may provide for any adjustments in the application of the provisions of section 508 (relating to special rules with respect to section 501(c)(3) organizations), subchapter J (relating to estates, trusts, beneficiaries, and decedents), and chapter 42 (relating to private foundations), to such trusts made necessary by the application of this paragraph. If, by the due date for the filing of an estate tax return (including any extension thereof), the interest is in a charitable trust which, upon allowance of a deduction, would be described in section 4947(a)(1), or the interest passes directly to a person or for a use described in subsection (a), a deduction shall be allowed as if the governing instrument was amended or conformed under this paragraph. If the amendment or conformation of the governing instrument is made after the due date for the filing of the estate tax return (including any extension thereof), the deduction shall be allowed upon the filing of a timely claim for credit or refund (as provided for in section 6511) of an overpayment resulting from the application of this paragraph. In the case of a credit or refund as a result of an amendment or conformation made pursuant to this paragraph, no interest shall be allowed for the period prior to the expiration of the 180th day after the date on which the claim for credit or refund is filed.” - § 2055(f): Pub. L. 98–369, § 1032(b)(2), added par. (2), and redesignated former pars. (2) to (11) as pars. (3) to (12), respectively. ## § 2056: Bequests, etc., to surviving spouse - § 2056(b)(7)(B)(ii)(I): Pub. L. 98–369 inserted “, or has a usufruct interest for life in the property”. ## § 2105: Property without the United States - § 2105(b): Pub. L. 98–369, amended subsec. (b) generally, substituting “Bank deposits and certain other debt obligations” for “Certain bank deposits, etc.” in heading and “, if any interest thereon would be treated by reason of section 861(a)(1)(A) as income from sources without the United States were such interest received by the decedent at the time of his death,” for “if any interest thereon, were such interest received by the decedent at the time of his death, would be treated by reason of section 861(a)(1)(A) as income from sources without the United States, and” in par. (1), inserting “and” after “business,” in par. (2), and adding par. (3). ## § 2516: Certain property settlements - § 2516: Pub. L. 98–369 substituted in introductory text “within the 3-year period beginning on the date 1 year before such agreement is entered into” for “within 2 years thereafter”. ## § 2522: Charitable and similar gifts - § 2522(c)(4): Pub. L. 98–369, § 1022(c), added par. (4). - § 2522(d): Pub. L. 98–369, § 1032(b)(3), added par. (1) and redesignated former pars. (1) and (2) as (2) and (3), respectively. ## § 3121: Definitions - § 3121(a): Pub. L. 98–369, § 531(d)(1)(A)(i), inserted “(including benefits)” before “paid in any medium” in introductory provisions. - § 3121(a)(5)(C), § 3121(a)(5)(D), § 3121(a)(5)(E), § 3121(a)(5)(F), § 3121(a)(5)(G): Pub. L. 98–369, § 491(d)(36), struck out subpar. (C) which provided: “under or to a bond purchase plan which, at the time of such payment, is a qualified bond purchase plan described in section 405(a),” and redesignated subpars, (D) to (G) as (C) to (F), respectively. - § 3121(a)(20): Pub. L. 98–369, § 531(d)(1)(A)(ii), added par. (20). - § 3121(b)(1): Pub. L. 98–369, § 2663(i)(1), struck out “(A) under contracts entered into in accordance with title V of the Agricultural Act of 1949, as amended (7 U.S.C. 1461–1468), or (B)”. - § 3121(b)(5)(B): Pub. L. 98–369, § 2601(b)(1), in amending subpar. (B) generally, substituted provision broadening social security coverage for newly hired Federal civilian employees effective with remuneration paid after Dec. 31, 1983, by providing that persons transferring from other government service to civilian service be covered under social security, unless the other service was in an international organization, or the person is returning to civilian service after temporary military or reserve duty and is exercising his reemployment rights under chapter 43 of title 38. - § 3121(b)(5)(C), § 3121(b)(5)(D), § 3121(b)(5)(E), § 3121(b)(5)(F), § 3121(b)(5)(G): Pub. L. 98–369, § 2601(b)(2), substituted subpar. designations (C) to (G) for former designations (i) to (v), respectively, in subpar. (D), as so redesignated, redesignated cls. (I) to (III) as (i) to (iii), respectively, and amended generally, subpar. (G), as so redesignated, designating provision relating to service performed by an individual who is not subject to subchapter III of chapter 83 of title 5 as cl. (i), and in cl. (i) as so designated, inserting reference to another retirement system established by a law of the United States for Federal employees, other than for members of the uniformed services and adding cls. (ii) and (iii), and provision for determining for purposes of this subparagraph whether an individual is subject to subchapter III of chapter 83 of title 5 or any other retirement system. - § 3121(b)(8): Pub. L. 98–369, § 2603(a)(2), designated existing provisions as subpar. (A), substituted “this subparagraph” for “this paragraph”, and added subpar. (B). - § 3121(b)(10)(B): Pub. L. 98–369, § 2663(j)(5)(C), substituted “Secretary of Health and Human Services” for “Secretary of Health, Education, and Welfare”. - § 3121(i)(2): Pub. L. 98–369, § 2663(i)(2), substituted “chapter 3 and section 1009 of title 37, United States Code” for “section 102(10) of the Servicemen’s and Veterans’ Survivor Benefits Act”. - § 3121(m)(2): Pub. L. 98–369, § 2663(i)(3), substituted “paragraph (21) of section 101 of title 38, United States Code” for “section 102 of the Servicemen’s and Veterans’ Survivor Benefits Act” and “paragraph (22) of such section” for “such section”. - § 3121(m)(3): Pub. L. 98–369, § 2663(i)(4), substituted “paragraph (23) of such section 101” for “such section 102”. - § 3121(n): Pub. L. 98–369, § 2663(i)(5), in provision preceding par. (1) substituted “a reserve component as defined in section 101(27) of title 38, United States Code” for “a reserve component of a uniformed service as defined in section 102(3) of the Servicemen’s and Veterans’ Survivor Benefits Act”, and inserted “, the National Oceanic and Atmospheric Administration Corps,”. - § 3121(n)(5): Pub. L. 98–369, § 2663(i)(5)(C), substituted “military, naval, or air” for “military or naval” in two places. - § 3121(n)(5)(B): Pub. L. 98–369, § 2663(i)(5)(D), substituted “Military Selective Service Act” for “Universal Military Training and Service Act”. - § 3121(v)(1)(B): Pub. L. 98–369, § 2661(o)(3), substituted “section 414(h)(2) where the pick up referred to in such section is pursuant to a salary reduction agreement (whether evidenced by a written instrument or otherwise)” for “section 414(h)(2)”. - § 3121(v)(2)(A): Pub. L. 98–369, § 67(c), inserted provision that the preceding sentence shall not apply to any excess parachute payment (as defined in section 2801G(b)). - § 3121(w): Pub. L. 98–369, § 2603(b), added subsec. (w). ## § 3231: Definitions - § 3231(e)(5): Pub. L. 98–369, § 531(d)(2), added par. (5). ## § 3306: Definitions - § 3306(b): Pub. L. 98–369, § 531(d)(3)(A), in provisions preceding par. (1), inserted “(including benefits)”. - § 3306(b)(5)(C), § 3306(b)(5)(D), § 3306(b)(5)(E), § 3306(b)(5)(F), § 3306(b)(5)(G): Pub. L. 98–369, § 491(d)(37), struck out subpar. (C) which provided: “under or to a bond purchase plan which, at the time of such payment, is a qualified bond purchase plan described in section 405(a),” and redesignated subpars. (D) to (G) as (C) to (F), respectively. - § 3306(b)(16): Pub. L. 98–369, § 531(d)(3)(B), added par. (16). - § 3306(r)(1)(B): Pub. L. 98–369, § 2661(o)(4), substituted “section 414(h)(2) where the pickup referred to in such section is pursuant to a salary reduction agreement (whether evidenced by a written instrument or otherwise)” for “section 414(h)(2)”. - § 3306(s): Pub. L. 98–369, § 1073(a), added subsec. (s). ## § 3401: Definitions - § 3401(a): Pub. L. 98–369, § 531(d)(4)(A), inserted “(including benefits)” in introductory provisions. - § 3401(a)(12): Pub. L. 98–369, § 491(d)(38), struck out subpar. (C) which provided: “under or to a bond purchase plan which, at the time of such payment, is a qualified bond purchase plan described in section 405(a);” and redesignated subpar. (D) as (C). - § 3401(a)(20): Pub. L. 98–369, § 531(d)(4)(B), added par. (20). ## § 3405: Special rules for pensions, annuities, and certain other deferred income - § 3405(b)(2): Pub. L. 98–369, § 714(j)(1), substituted “nonperiodic distribution” for “distribution described in subparagraph (B)” and “subparagraph (A) or (B) (as the case may be) shall be applied by taking into account” for “the Secretary, in prescribing tables or procedures under paragraph (1), shall take into account”, designated phrase “which is made by reason of a participant’s death” as cl. (i) and added cl. (ii). - § 3405(d)(1): Pub. L. 98–369, § 714(j)(4), added cl. (iii) relating to amounts subject to withholding under subchapter A of chapter 3. - § 3405(d)(1): Pub. L. 98–369, § 542(c), added cl. (iii) relating to distributions described in section 404(k)(2). Directory language that section (d)(1)(B) be amended by striking out “and” at end of cl. (i) and substituting “, or” for the period at end of cl. (ii) could not be executed in view of prior amendment by section 714(j)(4) of Pub. L. 98–369, which struck out “and” at end of cl. (i) and substituted “, and” for the period at end of cl. (ii). - § 3405(d): Pub. L. 98–369, § 714(j)(5), freed from withholding requirement any designated distribution which consists only of employer securities of the employer corporation (within the meaning of section 402(a)(3)) and cash (not in excess of $200) in lieu of fractional shares. - § 3405(d): Pub. L. 98–369, § 722(h)(4), added par. (12). ## § 3406: Backup withholding - § 3406(c)(1): Pub. L. 98–369, § 722(h)(2), substituted “(but not the reasons for the withholding under subsection (a)(1)(C))” for “(but not the reasons therefor)”. - § 3406(d)(2)(A): Pub. L. 98–369, § 722(h)(1)(A), inserted “the payor was notified by a broker under subparagraph (B) or” after “if (and only if)” in provisions preceding cl. (i), struck out cl. (i) which read as follows: “the payor was notified by a broker under subparagraph (B),” and redesignated cls. (ii) and (iii) as (i) and (ii), respectively. - § 3406(d)(2)(B): Pub. L. 98–369, § 722(h)(1)(B), in amending subpar. (B) generally, reenacted cl. (i), in cl. (ii) inserted “with respect to such acquisition—”, added subcls. (I) and (II), redesignated former subcls. (I) and (II) as (III) and (IV), respectively, and in subcl. (III) substituted “the Secretary notifies such broker” for “such broker is notified by the Secretary”, and in provisions following cl. (ii) substituted “shall within such period as the Secretary may prescribe by regulations (but not later than 15 days after such acquisition), notify the payor that such payee is subject to withholding under subparagraph (A), (B), (C) or (D) of subsection (a)(1),” for “within 15 days after the date of the acquisition notify the payor that such payee is subject to withholding under subsection (a)(1)(D) (or subsection (a)(1)(C) in the case of a notification described in clause (ii)(II).” - § 3406(e)(1): Pub. L. 98–369, § 152(a), inserted provision that the Secretary may require that a TIN required to be furnished under subsection (a)(1)(A) be provided under penalties of perjury only with respect to interest, dividends, patronage dividends, and amounts subject to broker reporting. ## § 3501: Collection and payment of taxes - § 3501: Pub. L. 98–369 designated existing provisions as subsec. (a), added heading, and added subsec. (b). ## § 4041: Imposition of tax - § 4041(a)(1): Pub. L. 98–369, § 911(a), substituted “15 cents” for “9 cents”. - § 4041(k): Pub. L. 98–369, § 912(a), in amending par. (1) generally, substituted “liquid” for “liquid fuel” in provisions preceding subpar. (A), in subpar. (A), substituted “subsection (a)(1) shall be applied by substituting ‘9 cents’ for ‘15 cents’, and” for “subsection (a) shall be applied by substituting ‘4 cents’ for ‘9 cents’ each place it appears, and”, added subpar. (B), and redesignated former subpar. (B) as (C). - § 4041(l): Pub. L. 98–369, § 1018(a), designated existing provisions as subpar. (A) and added subpar. (B). - § 4041(m): Pub. L. 98–369, § 913(a), added subsec. (m). ## § 4051: Imposition of tax on heavy trucks and trailers sold at retail - § 4051(b)(3): Pub. L. 98–369, § 734(g), substituted “The owners of the trade or business installing the parts or accessories shall be secondarily liable for the tax imposed by paragraph (1)” for “In addition to the owner, lessee, or operator of the vehicle, the owner of the trade or business installing the part or accessory shall be liable for the tax imposed by paragraph (1)”. - § 4051(d), § 4051: Pub. L. 98–369, § 921, added subsec. (d) and redesignated former subsec. (d) as (e). ## § 4052: Definitions and special rules - § 4052(b)(1)(B): Pub. L. 98–369, § 731, added cl. (iv). - § 4052(c): Pub. L. 98–369, § 735(b)(2), in amending subsec. (c) generally, designated existing provisions as par. (1), in par. (1) as so designated substituted “by reason of merely combining such article with any article listed in paragraph (2)” for “with any equipment or other item listed in section 4063(d)”, and added par. (2). ## § 4053: Exemptions - § 4053: Pub. L. 98–369 amended section generally, substituting provisions listing articles on which no tax under section 4051 shall be imposed for former provisions which stated that no tax be imposed under section 4051 on any article specified in subsection (a) of section 4063 and that the exemptions provided by section 4221(a) extended to the tax imposed by section 4051. ## § 4071: Imposition of tax - § 4071(b): Pub. L. 98–369, § 735(c)(2)(A), struck out “or inner tube” after “any tire”, and struck out “or tube” after “such tire” in two places in first sentence. - § 4071(c): Pub. L. 98–369, § 735(c)(2)(B), substituted “on total weight exclusive” for “on total weight, except that in the case of tires such total weight shall be exclusive”. - § 4071: Pub. L. 98–369, § 735(c)(2)(C), struck out “or inner tubes (other than bicycle tires and inner tubes)” after “equipped with tires” in provisions preceding par. (1), struck out “and inner tubes” before “with which such article is equipped” in pars. (1) and (2), and substituted “sale of an automobile bus chassis or an automobile bus body” for “sale of an article if a tax on such sale is imposed under section 4061 or if such article is an automobile bus chassis or an automobile bus body” in provisions following par. (2). - § 4071: Pub. L. 98–369, § 735(c)(2)(D), struck out subsec. (f) which related to imported recapped or retreaded United States tires. ## § 4072: Definitions - § 4072(b), § 4072(c): Pub. L. 98–369 redesignated subsec. (c) as (b) and struck out former subsec. (b) which defined “tread rubber”. ## § 4073: Exemptions - § 4073: Pub. L. 98–369 substituted “Exemption for tires with internal wire fastening” for “Exemptions” in section catchline, and in text struck out subsec. (a) relating to exemption from tax on tires not more than 20 inches in diameter and not more than 1¾ inches in cross section, struck out subsec. (c) relating to exemption from tax on tread rubber in certain cases, and struck out letter designation “(b)” and subsection heading for subsec. (b) thereby designating text of former subsec. (b) as entire text of section. ## § 4081: Imposition of tax - § 4081(c): Pub. L. 98–369, § 912(b)(A), (B), substituted “3 cents” for “4 cents” in subpar. (A), and “3⅓ cents” for “44⁄9 cents” in subpar. (B). - § 4081(c): Pub. L. 98–369, § 732(a)(1), struck out “by substituting ‘4 cents’ for ‘9 cents’ in the case of the sale of any gasoline” after “shall be applied” in text preceding subpar. (A), substituted “by substituting ‘4 cents’ for ‘9 cents’ in the case of the sale of any gasohol (the gasoline in which was not taxed under subparagraph (B)), and” for “in a mixture with alcohol, if at least 10 percent of the mixture is alcohol, or” in subpar. (A), substituted “by substituting ‘44⁄9 cents’ for ‘9 cents’ in the case of the sale of any gasoline for use in producing gasohol” for “for use in producing a mixture at least 10 percent of which is alcohol” in subpar. (B) and inserted definition of “gasohol” after subpar. (B). - § 4081(c): Pub. L. 98–369, § 912(b)(A), (C), substituted “3 cents” for “4 cents” and “5⅔ cents” for “45⁄9 cents”. - § 4081(c): Pub. L. 98–369, § 732(a)(2), substituted “at a rate equivalent to 4 cents a gallon” for “at a rate of 4 cents a gallon”, and “45⁄9 cents a gallon” for “5 cents a gallon”. - § 4081(c): Pub. L. 98–369, § 912(f), substituted “coal (including peat)” for “coal”. ## § 4082: Exemptions for diesel fuel and kerosene - § 4082(d): Pub. L. 98–369, § 733(a), in amending subsec. (d) generally, redesignated existing provisions of par. (1) as subpar. (A) and added subpar. (B), and in par. (2) inserted “but only if such person” before “elects”. - § 4082(e): Pub. L. 98–369, § 734(c)(1), added subpar. (e). ## § 4161: Imposition of tax - § 4161(a): Pub. L. 98–369, § 1015(a), in amending subsec. (a) generally, designated existing provisions as par. (1), substituted “any article of sport fishing equipment by the manufacturer, producer, or importer” for “fishing rods, creels, reels, and artificial lures, baits, and flies (including parts or accessories of such articles sold on or in connection therewith, or with the sale thereof) by the manufacturer, producer, or importer”, and added pars. (2) and (3). - § 4161(b)(1)(B): Pub. L. 98–369, § 1017(a), designated existing provisions as cl. (i) and added cl. (ii). - § 4161(b)(2)(A): Pub. L. 98–369, § 1017(b)(2), struck out “(other than a fishing reel)” after “part or accessory”. - § 4161(b)(3): Pub. L. 98–369, § 1017(b)(1), added par. (3). ## § 4162: Definitions; treatment of certain resales - Enacted 26 U.S.C. § 4162. ## § 4216: Definition of price - § 4216(b)(1): Pub. L. 98–369, § 735(c)(6)(A), in provisions following subpar. (C) struck out “(other than an article the sale of which is taxable under section 4061(a))” in second sentence, before “the computation under the preceding sentence”, and struck out provision that in the case of an article the sale of which is taxable under section 4061(a) and which is sold at retail, the computation under the first sentence of this paragraph shall be a percentage (not greater than 100 percent) of the actual selling price based on the highest price for which such articles are sold by manufacturers and producers in the ordinary course of trade (determined without regard to any individual manufacturer’s or producer’s cost). - § 4216(b)(2)(B), § 4216(b)(2)(C), § 4216(b)(2): Pub. L. 98–369, § 735(c)(6)(B), inserted “and” at end of subpar. (B), redesignated subpar. (D) as (C), and struck out former subpar. (C) which related to articles upon which tax is imposed under section 4061(a) of this title. - § 4216(b)(3): Pub. L. 98–369, § 735(c)(6)(D), substituted “paragraph (4)” for “paragraphs (4) and (5)”. - § 4216(b)(5), § 4216(b): Pub. L. 98–369, § 735(c)(6)(C), (E), redesignated par. (6) as par. (5), substituted “(1) and (3)” for “(1), (3) and (5)”, and struck out former par. (5) which related to constructive sale price in the case of automobiles, trucks, etc. - § 4216: Pub. L. 98–369, § 735(c)(6)(F), struck out subsec. (f) which related to certain trucks incorporating used components. ## § 4218: Use by manufacturer or importer considered sale - § 4218(a): Pub. L. 98–369, § 735(c)(7)(D), substituted “(other than a tire taxable under section 4071)” for “(other than an article specified in subsection (b), (c), or (d))”. - § 4218(b): Pub. L. 98–369, § 735(c)(7)(A), (B), struck out “and tubes” after “Tires” in heading, and in text substituted “If” for “Except as provided in subsection (d), if”, and struck out “or inner tube” before “taxable under section 4071”. - § 4218(c): Pub. L. 98–369, § 735(c)(7)(C), redesignated subsec. (e) as (c). Former subsec. (c), which related to automotive parts and accessories, was struck out. - § 4218: Pub. L. 98–369, § 735(c)(7)(C), struck out subsec. (d) which related to bicycle tires and tubes. - § 4218: Pub. L. 98–369, § 735(c)(7)(C), redesignated subsec. (e) as (c). ## § 4221: Certain tax-free sales - § 4221(a): Pub. L. 98–369, § 735(c)(8)(A), inserted “(or under section 4051 on the first retail sale)”. - § 4221(c): Pub. L. 98–369, § 735(c)(8)(B), substituted “section 4053(a)(6)” for “section 4063(a)(6) or (7), 4063(b), 4063(e),”. - § 4221(d)(1): Pub. L. 98–369, § 735(c)(8)(C), inserted “, and, in the case of the tax imposed by section 4051, includes the retailer with respect to the first retail sale”. - § 4221(d)(6): Pub. L. 98–369, § 735(c)(8)(D)(i), struck out provision at end that for purposes of subparagraph (B), the rebuilding of a part or accessory which is exempt from tax under section 4063(c) shall not constitute the manufacture or production of such part or accessory. - § 4221(d)(6)(A): Pub. L. 98–369, § 735(c)(8)(D)(ii), (iv), struck out “(other than an article referred to in subparagraph (B))” after “such article”, and inserted “or” at end. - § 4221(d)(6)(B), § 4221(d)(6): Pub. L. 98–369, § 735(c)(8)(D)(i), (iii), redesignated subpar. (C) as (B) and struck out former subpar. (B) which related to parts or accessories taxable under former section 4061(b) of this title. - § 4221(e)(2): Pub. L. 98–369, § 735(c)(8)(E), (F), struck out “and tubes” from heading, and in text struck out “or inner tube” and “or tube”, as the case may be, after “tire” wherever appearing. - § 4221(e)(3), § 4221(e): Pub. L. 98–369, § 735(c)(8)(G), added par. (3), struck out par. (4) which related to bicycle tires or tubes sold to bicycle manufacturers in general, the definition of a bicycle tire, and proof, struck out par. (5) which related to tires, tubes and tread rubber used on intercity, local, and school buses, and struck out par. (6) which related to bus parts and accessories. ## § 4222: Registration - § 4222(d): Pub. L. 98–369 substituted “4053(a)(6)” for “4063(a)(7), 4063(b), 4063(e)”. ## § 4223: Special rules relating to further manufacture - § 4223(b)(1): Pub. L. 98–369 substituted “4218(c)” for “section 4218(e)”. ## § 4227: Cross reference - § 4227: Pub. L. 98–369 struck out “and tubes” after “on tires”. ## § 4251: Imposition of tax - § 4251(b)(2): Pub. L. 98–369 substituted “During 1983, 1984, 1986, or 1987” for “During 1983, 1984, or 1985” in item relating to an applicable percentage of 3 and substituted “During 1988 or thereafter” for “During 1986 or thereafter” in item relating to an applicable percentage of 0. ## § 4261: Imposition of tax - § 4261(e)(1): Pub. L. 98–369 amended par. (1) generally, designating existing provisions as subpar. (A) and adding subpar. (B). ## § 4371: Imposition of tax - § 4371(2): Pub. L. 98–369 substituted “section 813” for “section 819”. ## § 4481: Imposition of tax - § 4481(a): Pub. L. 98–369, § 901(a), in amending subsec. (a) generally, substituted “55,000” for “33,000” in provisions preceding table, struck out heading “(1) In general”, substituted table provisions for former table which provided: - § 4481(a): Pub. L. 98–369, § 734(f), struck out from subsec. (a), as subsec. (a) was in effect before the amendments made by section 513(a) of Pub. L. 97–424: “In case of the taxable period beginning on July 1, 1984, and ending on September 30, 1984, the tax shall be at the rate of 75 cents for such period for each 1,000 pounds of taxable gross weight or fraction thereof.” See 1983 Amendment note below. ## § 4483: Exemptions - § 4483(d)(5), § 4483(d)(6): Pub. L. 98–369, § 903(a), added par. (5) and redesignated former par. (5) as (6). - § 4483(e), § 4483(f): Pub. L. 98–369, § 902(a), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 4662: Definitions and special rules - § 4662(b)(1): Pub. L. 98–369, § 1019(a)(3), inserted “or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel”. - § 4662(b)(2)(A): Pub. L. 98–369, § 1019(b)(2)(A), substituted “qualified fertilizer substance” for “qualified substance”. - § 4662(b)(2)(B), § 4662(b)(2)(C), § 4662(b)(2)(D): Pub. L. 98–369, § 1019(b)(1), inserted “fertilizer” after “qualified” wherever appearing in subpar. (B), inserted “fertilizer” after “Qualified” in subpar. (C) heading and in text substituted “The term ‘qualified fertilizer use’ means any use in the manufacture or production of fertilizer or for direct application as a fertilizer” for “For purposes of this subsection, the term ‘qualified use’ means any use in the manufacture or production of a fertilizer”, and added subpar. (D). - § 4662(b)(5), § 4662(b)(6): Pub. L. 98–369, § 1019(a)(1), added pars. (5) and (6). - § 4662(c): Pub. L. 98–369, § 1019(c), substituted “Except as provided in subsection (b), if” for “If”. - § 4662(d)(2)(B): Pub. L. 98–369, § 1019(b)(2)(B), inserted “fertilizer” after “qualified” and struck out “, or sells such substance for use,” after “such substance”. - § 4662(d)(3): Pub. L. 98–369, § 1019(a)(2), added par. (3). ## § 4940: Excise tax based on investment income - § 4940(d): Pub. L. 98–369, § 302(a), added subsec. (d). - § 4940: Pub. L. 98–369, § 303(a), added subsec. (e). ## § 4942: Taxes on failure to distribute income - § 4942(a)(2)(B): Pub. L. 98–369, § 314(a)(1), substituted “subsection (j)(2)” for “subsection (j)(4)”. - § 4942(d)(1): Pub. L. 98–369, § 304(b), substituted “the sum of the minimum investment return plus the amounts described in subsection (f)(2)(C), reduced by” for “the minimum investment return reduced by”. - § 4942(f)(1): Pub. L. 98–369, § 314(a)(2), substituted “subsection (j)” for “subsection (d)”. - § 4942(g)(1)(A): Pub. L. 98–369, § 304(a)(2), substituted “including that portion of reasonable and necessary administrative expenses” for “including administrative expenses”. - § 4942(g)(2)(C)(ii): Pub. L. 98–369, § 305(b)(4), substituted “section 4963(e)” for “section 4962(e)”. - § 4942(g)(4): Pub. L. 98–369, § 304(a)(1), added par. (4). ## § 4943: Taxes on excess business holdings - § 4943(c)(4)(A)(ii): Pub. L. 98–369, § 308(a), substituted “For purposes of the preceding sentence, any decrease in percentage holdings attributable to issuances of stock (or to issuances of stock coupled with redemptions of stock) shall be disregarded so long as (I) the net percentage decrease disregarded under this sentence does not exceed 2 percent, and (II) the number of shares held by the foundation is not affected by any such issuance or redemption” for “For purposes of this clause, any decrease in percentage holdings attributable to issuances of stock (or to issuances of stock coupled with redemptions of stock) shall be determined only as of the close of each taxable year of the private foundation unless the aggregate of the percentage decreases attributable to the issuances of stock (or such issuances and redemptions) during such taxable year equals or exceeds 1 percent”. - § 4943(c)(4)(B)(i): Pub. L. 98–369, § 309(a), substituted “the private foundation and all disqualified persons have” for “the private foundation has”. - § 4943(c)(6): Pub. L. 98–369, § 310(a), inserted following subpar. (B) “In any case where an acquisition by a disqualified person would result in a substitution under clause (i) or (ii) of subparagraph (D) of paragraph (4), the preceding sentence shall be applied with respect to such acquisition as if it did not contain the phrase ‘or by a disqualified person’ in the material preceding subparagraph (A).” - § 4943(c)(7): Pub. L. 98–369, § 307(a), added par. (7). - § 4943(d)(4): Pub. L. 98–369, § 314(c)(1), added par. (4). ## § 4945: Taxes on taxable expenditures - § 4945(d)(4): Pub. L. 98–369, in amending par. (4) generally, divided existing provisions into subpars. (A) and (B) and inserted reference in subpar. (A) to exempt foundations (as defined in section 4940(d)(2)). ## § 4946: Definitions and special rules - § 4946(d): Pub. L. 98–369 amended subsec. (d) generally, substituting references to children, grandchildren, and great grandchildren for references to lineal descendants in two places. ## § 4962: Abatement of first tier taxes in certain cases - Enacted 26 U.S.C. § 4962. ## § 4963: Definitions ## § 4973: Tax on excess contributions to certain tax-favored accounts and annuities - § 4973: Pub. L. 98–369, § 491(d)(55), substituted “and certain individual retirement annuities” for “certain individual retirement annuities, and certain retirement bonds” in section catchline. - § 4973(a): Pub. L. 98–369, § 491(d)(41), inserted “or” at end of par. (1), struck out “or” at end of par. (2), struck out par. (3) which imposed a tax in the case of a retirement bond, within the meaning of section 409, established for the benefit of any individual, and in the concluding provision substituted “or annuity” for “, annuity, or bond” and “or annuities” for “, annuities, or bonds”. - § 4973(b): Pub. L. 98–369, § 491(d)(43), substituted in provision following par. (2)(C) “or the individual retirement annuity” for “, individual retirement annuity, or bond”. - § 4973(b)(1)(A): Pub. L. 98–369, § 491(d)(42), which directed the amendment of subpar. (A) by substituting “and 408(d)(3)” for “408(d)(3), and 409(b)(3)(C)” was executed, as the probable intent of Congress, by substituting “or 408(d)(3))” for “408(d)(3)), or 409(b)(3)(C)”. - § 4973(c)(1): Pub. L. 98–369, § 491(d)(44), substituted “or 408(d)(3)(A)(iii)” for “, 408(d)(3)(A)(iii), or 409(b)(3)(C)”. ## § 4975: Tax on prohibited transactions - § 4975(d): Pub. L. 98–369, § 491(d)(45), substituted in provision following par. (15) “or an individual retirement annuity (as defined in section 408)” for “, individual retirement annuity, or an individual retirement bond (as defined in section 408 or 409)”. - § 4975(e)(1): Pub. L. 98–369, § 491(d)(46), struck out “or 405(a)” after “section 403(a)” and “or a retirement bond described in section 409” after “section 408(b)”, and substituted “or annuity” for “annuity, or bond” and “or account” for “account, or bond”. - § 4975(e)(7): Pub. L. 98–369, § 491(e)(7), substituted “section 409(h)” for “section 409A(h)”, “section 409(e)(4)” for “section 409A(e)(4)”, and “section 409(e)” for “section 409A(e)”. - § 4975(e)(8): Pub. L. 98–369, § 491(e)(8), substituted “section 409(l)” for “section 409A(l)”. ## § 4976: Taxes with respect to funded welfare benefit plans - Enacted 26 U.S.C. § 4976. ## § 4977: Tax on certain fringe benefits provided by an employer - Enacted 26 U.S.C. § 4977. ## § 4978: Tax on certain dispositions by employee stock ownership plans and certain cooperatives - Enacted 26 U.S.C. § 4978. ## § 4999: Golden parachute payments - Enacted 26 U.S.C. § 4999. ## § 5001: Imposition, rate, and attachment of tax - § 5001(a)(1), § 5001(a)(3): Pub. L. 98–369 substituted “$12.50” for “$10.50”. ## § 5005: Persons liable for tax - § 5005(e)(1): Pub. L. 98–369, § 455(b)(1), substituted “(10), or (13)” for “or (10)”. - § 5005(e)(2): Pub. L. 98–369, § 455(b)(2), inserted “used in the production of nonbeverage wine or wine products,”. ## § 5010: Credit for wine content and for flavors content - § 5010(a)(1), § 5010(a)(2): Pub. L. 98–369 substituted “$12.50” for “$10.50”. ## § 5061: Method of collecting tax - § 5061(e): Pub. L. 98–369 added subsec. (e). ## § 5062: Refund and drawback in case of exportation - § 5062(b): Pub. L. 98–369 substituted “have been marked” for “have been stamped or restamped, and marked”. ## § 5066: Distilled spirits for use of foreign embassies, legations, etc. - § 5066(a)(2): Pub. L. 98–369 substituted “marked” for “stamped or restamped, and marked,”. ## § 5101: Notice of manufacture of still; notice of set up of still - Enacted 26 U.S.C. § 5101. ## § 5102: Definition of manufacturer of stills - Enacted 26 U.S.C. § 5102. ## § 5114: Drawback - § 5114(c): Pub. L. 98–369 added subsec. (c). ## § 5131: Packaging distilled spirits for industrial uses - § 5131(b): Pub. L. 98–369 substituted “reference” for “references” in heading, struck out former par. (1) which provided a cross reference to section 5205(a)(1) of this title regarding stamps for immediate containers, and struck out designation “(2)” preceding provisions relating to containers of distilled spirits. ## § 5179: Registration of stills - § 5179(b)(2): Pub. L. 98–369 substituted “notification to set up a still, boiler, or other vessel for distilling, see section 5101(a)(2)” for “permit to set up a still, boiler or other vessel for distilling, see section 5105”. ## § 5204: Gauging - § 5204(c): Pub. L. 98–369 struck out “stamping,” before “marking” in heading and text. ## § 5206: Containers - § 5206(d), § 5206(e), § 5206(f): Pub. L. 98–369 added subsec. (d), redesignated existing subsecs. (d) and (e) as (e) and (f), respectively, and in subsec. (f) added pars. (3) and (4). ## § 5207: Records and reports - § 5207(a)(4): Pub. L. 98–369, § 454(c)(6), struck out subpar. (D) which required every distilled spirits plant proprietor to keep records in such form and manner as prescribed by the Secretary of the receipt, use, and balance on hand of all stamps required by law or regulations to be used by the proprietor. ## § 5214: Withdrawal of distilled spirits from bonded premises free of tax or without payment of tax - § 5214(a)(13): Pub. L. 98–369 added par. (13). ## § 5215: Return of tax determined distilled spirits to bonded premises - § 5215(c): Pub. L. 98–369 substituted “reclosing” for “restamping” in heading and text. ## § 5235: Bottling of alcohol for industrial purposes - § 5235: Pub. L. 98–369 struck out “stamped,” before “labeled,” and struck out provision that section 5205(a)(1) shall not apply to alcohol bottled, stamped, and labeled as such under this section. ## § 5301: General - § 5301(c): Pub. L. 98–369, § 454(c)(9), substituted “tax determination” for “stamping” in pars. (1) and (3), and struck out “, if the liquor bottles are to be again stamped under the provisions of this chapter” after “by regulations prescribe” in provisions following par. (4). - § 5301(d): Pub. L. 98–369, § 454(b), added subsec. (d) and redesignated former subsec. (d) as (e). ## § 5354: Bond - § 5354: Pub. L. 98–369 substituted “distilled spirits” for “wine spirits” in two places. ## § 5555: Records, statements, and returns - § 5555(a): Pub. L. 98–369 struck out “or for the affixing of any stamp required to be affixed by this chapter,” after “the collection thereof,”. ## § 5604: Penalties relating to marks, brands, and containers - § 5604(a): Pub. L. 98–369, § 454(c)(11)(A), in amending subsec. (a) generally, struck out references to stamps in pars. (1) to (3), redesignated pars. (12), (16), (17), (18) as pars. (4)–(7), respectively, in pars. (4) to (7) as so redesignated, struck out all references to stamps, and struck out former pars. (4) to (11), (13) to (15), and (19), which had consisted of additional provisions concerning penalties relating to stamps, marks, brands and containers. - § 5604(b): Pub. L. 98–369, § 454(c)(11)(A), in amending subsec. (b) generally, substituted provisions relating to cross references for provisions relating to officers authorized to enforce this section. ## § 5613: Forfeiture of distilled spirits not closed, marked, or branded as required by law - § 5613: Pub. L. 98–369, § 454(c)(12)(B), substituted “closed” for “stamped” in section catchline. - § 5613(b): Pub. L. 98–369, § 454(c)(12)(A), amended subsec. (b) generally, substituting provisions relating to forfeitures of containers without closures for provisions relating to forfeitures of unstamped containers. ## § 5615: Property subject to forfeiture - § 5615(2): Pub. L. 98–369 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Any still, boiler, or other vessel to be used for the purpose of distilling which is removed without notice having been given as required by section 5105(a) or which is set up without permit first having been obtained as required by such section; and”. ## § 5684: Penalties relating to the payment and collection of liquor taxes - § 5684(b): Pub. L. 98–369, § 714(h)(1), substituted in heading “6662” for “6660” and in text “6662(a)” for “6660(a)”. - § 5684(b): Pub. L. 98–369, § 722(a)(5), substituted “subsection (a)” for “subsections (a) and (b)”. ## § 5703: Liability for tax and method of payment - § 5703(b)(3): Pub. L. 98–369 added par. (3). ## § 5761: Civil penalties - § 5761(c): Pub. L. 98–369 substituted “section 6662” for “section 6660” in heading and “section 6662(a)” for “section 6660(a)” in text. ## § 6011: General requirement of return, statement, or list - § 6011(c): Pub. L. 98–369 inserted “and FSC’s and former FSC’s” in heading and “or a FSC or former FSC” in par. (1). ## § 6012: Persons required to make returns of income - § 6012(b)(2): Pub. L. 98–369 struck out “or section 6015(a)” after “subsection (a)”. ## § 6013: Joint returns of income tax by husband and wife - § 6013(c): Pub. L. 98–369, § 474(b)(2), substituted “15” for “21”. - § 6013(e): Pub. L. 98–369, § 424(a), in amending subsec. (e) generally, reenacted as par. (1)(A) part of former par. (1)(A); incorporated in par. (1)(B) part of former par. (1)(A), substituting “there is a substantial understatement of tax attributable to grossly erroneous items of one spouse” for “there was omitted from gross income an amount properly includable therein which is attributable to one spouse and which is in excess of 25 percent of the amount of gross income stated in the return”; redesignated as par. (1)(C) former par. (1)(B), substituting “had no reason to know, that there was such substantial understatement” for “had no reason to know of, such omission”; reenacted as par. (1)(D) former par. (1)(C), substituting preceding “, it is inequitable” the words “all the facts and circumstances” for “whether or not the other spouse significantly benefited directly or indirectly from the items omitted from gross income and taking into account all other facts and circumstances” and “attributable to such substantial understatement” for “attributable to such omission”; substituted in concluding text “attributable to such substantial understatement” for “attributable to such omission from gross income”; added pars. (2) to (4); and incorporated in provisions designated par. (5) similar provisions of former par. (2)(A), substituting as par. heading “Special rule for community property income” for “Special rules” and deleting former par. (2)(B) respecting determination as provided in section 6501(e)(1)(A) of amount omitted from gross income. ## § 6018: Estate tax returns - § 6018: Pub. L. 98–369 added subsec. (c). ## § 6020: Returns prepared for or executed by Secretary - § 6020(b)(1): Pub. L. 98–369 struck out “(other than a declaration of estimated tax required under section 6015)” after “make any return”. ## § 6034A: Information to beneficiaries of estates and trusts - Enacted 26 U.S.C. § 6034A. ## § 6037: Return of S corporation - § 6037: Pub. L. 98–369 designated existing provisions as subsec. (a) and added subsec. (a) heading and subsec. (b). ## § 6038A: Information with respect to certain foreign-owned corporations - § 6038A(c)(1): Pub. L. 98–369 substituted section “6038(e)(1)” for “6038(d)(1)”. ## § 6038B: Notice of certain transfers to foreign persons - Enacted 26 U.S.C. § 6038B. ## § 6039C: Returns with respect to foreign persons holding direct investments in United States real property interests - § 6039C: Pub. L. 98–369 amended section generally, inserting in section catchline “foreign persons holding direct investments in” and substituting in text provisions concerning returns with respect to foreign persons holding direct investments in United States real property for provisions concerning returns with respect to United States real property interests. ## § 6041: Information at source - § 6041(a): Pub. L. 98–369 inserted “6047(e),”. ## § 6042: Returns regarding payments of dividends and corporate earnings and profits - § 6042(b)(2): Pub. L. 98–369, in amending par. (2) generally, designated existing provision as subpar. (A), redesignated as cls. (i) and (ii) of subpar. (A) text formerly designated (A) and (B), and added subpar. (B). ## § 6045: Returns of brokers - § 6045(c)(4): Pub. L. 98–369, § 714(e)(1), added par. (4). - § 6045(d): Pub. L. 98–369, § 150(a), added subsec. (d). ## § 6047: Information relating to certain trusts and annuity plans - § 6047: Pub. L. 98–369, § 491(d)(57), struck out “and bond purchase” after “trusts and annuity” in section catchline. - § 6047(c), § 6047(d), § 6047(e), § 6047(f): Pub. L. 98–369, § 491(d)(47), redesignated former subsecs. (d) to (f) as (c) to (e), respectively, and struck out former subsec. (c) which related to information to be supplied by employees under qualified bond purchase plans. ## § 6049: Returns regarding payments of interest - § 6049(b)(2): Pub. L. 98–369, § 474(r)(29)(J), struck out subpar. (E) which related to amounts on which the person making payments was required to deduct and withhold a tax under section 1451 (relating to tax-free covenant bonds), or would have been so required but for section 1451(d) (relating to benefit of personal exemptions). - § 6049(d)(6)(A): Pub. L. 98–369, § 42(a)(14)(A), substituted “section 1272” for “section 1232A” in two places. - § 6049(d)(6)(B): Pub. L. 98–369, § 42(a)(14)(B), substituted “section 1273(a)” for “section 1232(b)(1)”. ## § 6050E: State and local income tax refunds - § 6050E(b): Pub. L. 98–369 inserted provision that no statement is required under this subsection with respect to any individual if it is determined (in the manner provided by regulations) that such individual did not claim itemized deductions under chapter 1 for the taxable year giving rise to the refund, credit, or offset. ## § 6050H: Returns relating to mortgage interest received in trade or business from individuals - Enacted 26 U.S.C. § 6050H. ## § 6050I: Returns relating to cash received in trade or business, etc. - Enacted 26 U.S.C. § 6050I. ## § 6050J: Returns relating to foreclosures and abandonments of security - Enacted 26 U.S.C. § 6050J. ## § 6050K: Returns relating to exchanges of certain partnership interests - Enacted 26 U.S.C. § 6050K. ## § 6050L: Returns relating to certain donated property - Enacted 26 U.S.C. § 6050L. ## § 6053: Reporting of tips - § 6053(c)(3)(C): Pub. L. 98–369, § 1072(a), substituted “Upon the petition of the employer or the majority of employees of such employer, the Secretary” for “The Secretary” and “2 percent” for “5 percent”. - § 6053(c)(4): Pub. L. 98–369, § 1072(c)(1), inserted provision that an individual who owns 50 percent or more in value of the stock of the corporation operating the establishment shall not be treated as an employee. ## § 6057: Annual registration, etc. - § 6057(d): Pub. L. 98–369 substituted “Secretary of Health and Human Services” for “Secretary of Health, Education, and Welfare”. - § 6057(f): Pub. L. 98–369 substituted “Secretary of Health and Human Services” for “Secretary of Health, Education, and Welfare”. ## § 6058: Information required in connection with certain plans of deferred compensation - § 6058(e): Pub. L. 98–369 struck out par. (2) which included a tax imposed by section 409(c) within term “special IRP tax”, and redesignated pars. (3) and (4) as (2) and (3), respectively. ## § 6072: Time for filing income tax returns - § 6072(c): Pub. L. 98–369 inserted “or a FSC or former FSC” after “United States”. ## § 6096: Designation by individuals - § 6096(b): Pub. L. 98–369 substituted “allowable under part IV of subchapter A of chapter 1 (other than subpart C thereof” for “allowable under sections 33, 37, 38, 40, 41, 42, 44, 44A, 44B, 44C, 44D, 44E, 44F, 44G, and 44H”. ## § 6103: Confidentiality and disclosure of returns and return information - § 6103(a)(2): Pub. L. 98–369, § 2651(k)(2), substituted “, any local child support enforcement agency, or any local agency administering a program listed in subsection (l)(7)(D)” for “or of any local child support enforcement agency”. - § 6103(d)(1): Pub. L. 98–369, § 449(a), substituted “44, 45, 51” for “44, 51”. - § 6103(l)(5): Pub. L. 98–369, § 2663(j)(5)(E), substituted “Secretary of Health and Human Services” for “Secretary of Health, Education, and Welfare” in heading and text. - § 6103(l)(7): Pub. L. 98–369, § 2651(k)(1), substituted provisions relating to information disclosure to Federal, State and local agencies administering programs under the Social Security Act or the Food Stamp Act of 1977 for former provisions which related to information disclosure by the Social Security Administration to the Department of Agriculture and State food stamp agencies. - § 6103(l)(7): Pub. L. 98–369, § 453(b)(5), amended directory language of Pub. L. 96–249, § 127(a)(1). See 1980 Amendment note below. - § 6103(l)(8): Pub. L. 98–369, § 453(b)(6), directed that the par. (7) added by Pub. L. 96–265 be redesignated as par. (8). See 1980 Amendment note below. - § 6103(l)(9): Pub. L. 98–369, § 453(a), added par. (9). - § 6103(l)(10): Pub. L. 98–369, § 2653(b)(3)(A), added par. (10). - § 6103(p)(3)(A): Pub. L. 98–369, § 2653(b)(3)(B)(i), substituted “(9), or (10)” for “or (9)”. - § 6103(p)(3)(A): Pub. L. 98–369, § 453(b)(1), which directed that “(5), (7), (8), or (9)” be substituted for “(5), or (7)”, was executed by substituting “(5), (7), (8), or (9)” for “(5), (7), or (8)” to reflect the probable intent of Congress. - § 6103(p)(4): Pub. L. 98–369, § 2653(b)(3)(B)(ii), substituted “(l)(1), (2), (3), (5), or (10)” for “(l)(1), (2), (3), or (5)” in provisions preceding subpar. (A). - § 6103(p)(4): Pub. L. 98–369, § 453(b)(2), which directed that “(7), (8), or (9)” be substituted for “or (7)” in provisions preceding subpar. (A), was executed by substituting “(7), (8), or (9)” for “(7), or (8)” to reflect the probable intent of Congress. - § 6103(p)(4)(F)(i): Pub. L. 98–369, § 453(b)(3), which directed that “(l)(6), (7), (8), or (9)” be substituted for “(l)(6) or (7)”, was executed by substituting “(l)(6), (7), (8), or (9)” for “(l)(6), (7), or (8)” to reflect the probable intent of Congress. - § 6103(p)(4)(F)(ii): Pub. L. 98–369, § 2653(b)(3)(B)(iii), substituted “(l)(1), (2), (3), (5), or (10)” for “(l)(1), (2), (3), or (5)”. ## § 6104: Publicity of information required from certain exempt organizations and certain trusts - § 6104(a)(1)(B)(i): Pub. L. 98–369, § 491(d)(49), substituted “or 403(a)” for “, 403(a), or 405(a)”. - § 6104(d): Pub. L. 98–369, § 306(b), substituted “shall state the address and the telephone number of the private foundation’s principal office” for “shall state the address of the private foundation’s principal office”. ## § 6111: Disclosure of reportable transactions - Enacted 26 U.S.C. § 6111. ## § 6112: Material advisors of reportable transactions must keep lists of advisees, etc. - Enacted 26 U.S.C. § 6112. ## § 6117: Cross reference ## § 6166: Extension of time for payment of estate tax where estate consists largely of interest in closely held business - § 6166(b)(8): Pub. L. 98–369, § 1021(a), added par. (8). - § 6166(b)(9): Pub. L. 98–369, § 1021(b), added par. (9). - § 6166(g)(1)(E), § 6166(g)(1)(F): Pub. L. 98–369, § 1021(c), added subpars. (E) and (F). - § 6166(g)(2)(C): Pub. L. 98–369, § 1021(d), added subpar. (C). - § 6166(j): Pub. L. 98–369, § 544(b)(4), added par. (6). ## § 6201: Assessment authority - § 6201(a)(4): Pub. L. 98–369, § 474(r)(32), substituted “section 32 or 34” for “section 39 or 43” in heading, and in text substituted “section 34” for “section 39” and “section 32” for “section 43”. - § 6201(b)(1): Pub. L. 98–369, § 412(b)(5), amended par. (1) generally, substituting “estimated income tax required to be paid under section 6154 or 6654” for “estimated tax under section 6153 or 6154”. ## § 6211: Definition of a deficiency - § 6211(b)(1): Pub. L. 98–369, § 474(r)(33)(A), substituted “without regard to the credit under section 33” for “without regard to so much of the credit under section 32 as exceeds 2 percent of the interest on obligations described in section 1451”. - § 6211(b)(4): Pub. L. 98–369, § 474(r)(33)(B), substituted “section 34” for “section 39”. ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(e): Pub. L. 98–369, § 305(b)(4), substituted “section 4963(e)” for “section 4962(e)”. - § 6213(h)(3): Pub. L. 98–369, § 474(r)(34), substituted “section 32 or 34” for “section 39”. ## § 6214: Determinations by Tax Court - § 6214(e): Pub. L. 98–369 added subsec. (e). ## § 6302: Mode or time of collection - § 6302(d), § 6302(e): Pub. L. 98–369 added subsec. (d) and redesignated former subsec. (d) as (e). ## § 6311: Payment of tax by commercially acceptable means - § 6311(b): Pub. L. 98–369 substituted “or cashier’s check (or other guaranteed draft)” for “or cashier’s check”, “the amount of such check (or draft)” for “the amount of such check”, and “the financial institution” for “the bank or trust company”, and substituted “such financial institution” for “such bank” in two places. ## § 6331: Levy and distraint - § 6331(b): Pub. L. 98–369 substituted “subsection (e)” for “subsection (d)(3)”. ## § 6334: Property exempt from levy - § 6334(c): Pub. L. 98–369 inserted “(including section 207 of the Social Security Act)”. ## § 6401: Amounts treated as overpayments - § 6401(b): Pub. L. 98–369, § 474(r)(36), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “If the amount allowable as credits under sections 31 (relating to tax withheld on wages) and 39 (relating to certain uses of gasoline and special fuels), and 43 (relating to earned income credit), exceeds the tax imposed by subtitle A (reduced by the credits allowable under subpart A of part IV of subchapter A of chapter 1, other than the credits allowable under sections 31, 39, and 43), the amount of such excess shall be considered an overpayment. For purposes of the preceding sentence, any credit allowed under paragraph (1) of section 32 (relating to withholding of tax on nonresident aliens and on foreign corporations) to a nonresident alien individual for a taxable year with respect to which an election under section 6013(g) or (h) is in effect shall be treated as an amount allowable as a credit under section 31.” - § 6401(b): Pub. L. 98–369, § 735(c)(16), substituted “and special fuels” for “, special fuels, and lubricating oil”. ## § 6402: Authority to make credits or refunds - § 6402(a): Pub. L. 98–369, § 2653(b)(2), substituted “subsections (c) and (d)” for “subsection (c)”. - § 6402(d), § 6402(e), § 6402(f): Pub. L. 98–369, § 2653(b)(1), added subsecs. (d) to (f). - § 6402(g): Pub. L. 98–369, § 2653(b)(1), added subsec. (g). ## § 6405: Reports of refunds and credits - § 6405: Pub. L. 98–369 substituted “section 165(i)” for “section 165(h)”. ## § 6411: Tentative carryback and refund adjustments - § 6411(a): Pub. L. 98–369, § 474(r)(37)(A), amended provisions preceding par. (1) generally. Prior to amendment, such provisions read as follows: “A taxpayer may file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by a net operating loss carryback provided in section 172(b), by an investment credit carryback provided in section 46(b), by a work incentive program carryback provided in section 50A(b), by a new employee credit carryback provided in section 53(b), by a research credit carryback provided in section 44F(g)(2) by an employee stock ownership credit carryback provided by section 44G(b)(2), or by a capital loss carryback provided in section 1212(a)(1), from any taxable year. The application shall be verified in the manner prescribed by section 6065 in the case of a return of such taxpayer, and shall be filed, on or after the date of filing of the return for the taxable year of the net operating loss, net capital loss, unused investment credit, unused work incentive program credit, unused new employee credit, unused research credit, or unused employee stock ownership credit, from which the carryback results and within a period of 12 months from the end of such taxable year (or, with respect to any portion of an investment credit carryback, a work incentive program carryback, a new employee credit carryback, a research credit carryback, or employee stock ownership credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback (or, in the case of a work incentive program carryback, to an investment credit carryback, or, in the case of a new employee credit carryback, to an investment credit carryback or a work incentive program carryback, or, in the case of a research credit carryback, to an investment credit carryback, a work incentive program carryback, or a new employee credit carryback, or, in the case of an employee stock ownership credit carryback, to an investment credit carryback, a new employee credit carryback or a research and experimental credit carryback) from a subsequent taxable year, within a period of 12 months from the end of such subsequent taxable year), in the manner and form required by regulations prescribed by the Secretary. The application shall set forth in such detail and with such supporting data and explanation as such regulations shall require—”. - § 6411(a): Pub. L. 98–369, § 714(n)(2)(B), in provisions following par. (6), substituted “Except for purposes of applying section 6611(f)(3)(B), an application” for “An application”. - § 6411(a)(1): Pub. L. 98–369, § 474(r)(37)(A), substituted “unused research credit, or unused business credit” for “unused investment credit, unused work incentive program credit, unused new employee credit, unused research credit, or unused employee stock ownership credit”. - § 6411(b), § 6411(c): Pub. L. 98–369, § 474(r)(37)(B), substituted “unused research credit, or unused business credit” for “unused investment credit, unused work incentive program credit, unused new employee credit, unused research credit, or unused employee stock ownership credit” wherever appearing. ## § 6412: Floor stocks refunds - § 6412(a)(1): Pub. L. 98–369, § 735(c)(12)(A), (B), substituted “Tires and gasoline” for “Trucks, tires, tubes, tread rubber, and gasoline” in heading, and in text substituted “Where before October 1, 1988, any article subject to the tax imposed by section 4071 or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale,” for “Where before October 1, 1988, any article subject to the tax imposed by section 4061(a)(1), 4071((a)(1), (3) or (4), or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale (or, in the case of tread rubber, is intended for sale or is held for use),”, and struck out provision that no credit or refund shall be allowable under this paragraph with respect to inner tubes for bicycle tires (as defined in section 4221(e)(4)(B)). - § 6412(a)(2)(A): Pub. L. 98–369, § 735(c)(12)(C), substituted “The term ‘dealer’ includes a wholesaler, jobber, distributor, or retailer” for “The term ‘dealer’ includes a wholesaler, jobber, distributor, or retailer, or, in the case of tread rubber subject to tax under section 4071(a)(4), includes any person (other than the manufacturer, producer, or importer thereof) who holds such tread rubber for sale or use”. - § 6412(c): Pub. L. 98–369, § 735(c)(12)(D), substituted “4071” for “4061, 4071,”. ## § 6416: Certain taxes on sales and services - § 6416(a)(1)(C): Pub. L. 98–369, § 734(b)(2)(B)(iii), struck out “, (b)(3)(C), or (D), or (b)(4)” before “of this section”. - § 6416(a)(2)(B): Pub. L. 98–369, §§ 734(b)(1)(B), (2)(B)(iv), 735(c)(13)(D), substituted “(4), (5), or (6) of subsection (b)” for “or (B), or (5) of subsection (b)”. - § 6416(a)(3): Pub. L. 98–369, § 734(b)(2)(B)(v), in amending par. (3) generally, struck out the subpar. (A) designation before “in any case”, substituted a period for “; and” after “determination”, and struck out subpar. (B) which provided that in applying paragraph (1) to any overpayment under paragraph (2)(F), (3)(C), or (4) of subsection (b), the term “ultimate vendor” means the ultimate vendor of the other article. - § 6416(b)(1)(A): Pub. L. 98–369, § 734(j), inserted “or by section 4051” after “by chapter 32”. - § 6416(b)(1)(C): Pub. L. 98–369, § 735(c)(13)(A), substituted “subsection (a) or (b) of section 4071” for “section 4071(a)(1) or (2) or section 4071(b)”. - § 6416(b)(2): Pub. L. 98–369, § 735(c)(13)(B), inserted a period after “section 4064” at end of flush sentence following subpar. (F). - § 6416(b)(2)(A): Pub. L. 98–369, § 735(c)(13)(F), struck out “(except in any case to which subsection (g) applies)” after “exported”. - § 6416(b)(2)(E): Pub. L. 98–369, § 735(c)(13)(B), added subpar. (E). - § 6416(b)(2)(E): Pub. L. 98–369, § 734(b)(2)(B)(i), struck out former subpar. (E) which related to tires or inner tubes resold for use or tread rubber on recapped or retreaded tires resold for use. - § 6416(b)(2)(F): Pub. L. 98–369, § 735(c)(13)(B), added subsec. (F) and struck out former subsec. (F) which related to any article taxable under section 4061(b) (other than spark plugs and storage batteries), used or sold for use as repair or replacement parts or accessories for farm equipment (other than equipment taxable under section 4061(a). - § 6416(b)(2)(G), § 6416(b)(2): Pub. L. 98–369, § 735(c)(13)(B), struck out subpars. (G) through (M) which related to tread rubber, gasoline, articles used with automobile buses, boxes or containers, light-duty trucks, tires and inner tubes, recapped tires, and tires sold for use in connection with qualified buses. - § 6416(b)(3): Pub. L. 98–369, § 735(c)(13)(C), struck out provision at end that for purposes of subparagraphs (A) and (B), an article shall be treated as having been used as a component part of another article if, had it not been broken or rendered useless in the manufacture or production of such other article, it would have been so used. - § 6416(b)(3)(A): Pub. L. 98–369, § 735(c)(13)(C), substituted “gasoline taxable under section 4081,” for “an article to which subparagraphs (B), (C), (D), or (E) applies,”. - § 6416(b)(3)(B): Pub. L. 98–369, § 735(c)(13)(C), substituted “gasoline taxable under section 4081,” for “a part or accessory taxable under section 4061(b)”, substituted “gasoline” for “article”, inserted “for nonfuel purposes,”, and substituted a period for a semicolon after “produced by him”. - § 6416(b)(3): Pub. L. 98–369, § 734(b)(2)(B)(ii), struck out subpar. (C) which related to tires or inner tubes taxable under section 4071(a) of this title. - § 6416(b)(3): Pub. L. 98–369, § 735(c)(13)(C), struck out subpar. (D) which related to tread rubber in respect of which tax was paid under section 4071(a)(4) used in recapping or retreading of a tire, subpar. (E) which related to bicycle tires or inner tubes used for such a tire, and subpar. (F) which dealt with gasoline taxable under section 4081. See subpar. (B) for similar provisions. - § 6416(b)(4)(A): Pub. L. 98–369, § 734(b)(2)(A), amended par. (4) generally. Prior to amendment par. (4) provided that if (A) a tire or inner tube taxable under section 4071, or a recapped or retreaded tire in respect of which tax under section 4071(a)(4) was paid on the tread rubber used in the recapping or retreading, is sold by the manufacturer, producer, or importer thereof on or in connection with, or with the sale of, any other article manufactured or produced by him; and (B) such other article is (i) an automobile bus chassis or an automobile bus body, or (ii) by any person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft, any tax imposed by chapter 32 in respect of such tire or inner tube which has been paid by the manufacturer, producer, or importer thereof shall be deemed to be an overpayment by him. - § 6416(b)(6): Pub. L. 98–369, § 734(b)(1)(A), added par. (6). - § 6416(c): Pub. L. 98–369, § 735(c)(13)(E), redesignated subsec. (e) as (c). Former subsec. (c), which related to credit for tax paid on tires or inner tubes, was struck out. - § 6416(d), § 6416(e), § 6416(f): Pub. L. 98–369, § 735(c)(13)(E), redesignated subsecs. (f), (h), and (i), as subsecs. (d), (e), and (f), respectively. Former subsec. (d) had been previously repealed and former subsec. (e) was redesignated (c). - § 6416: Pub. L. 98–369, § 735(c)(13)(E), struck out subsec. (g) which related to trucks, buses, tractors, etc. - § 6416: Pub. L. 98–369, § 735(c)(13)(E), redesignated subsecs. (h) and (i) as (e) and (f), respectively. ## § 6420: Gasoline used on farms - § 6420(g)(2): Pub. L. 98–369 substituted “section 34” for “section 39”. ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(i)(3): Pub. L. 98–369 substituted “section 34” for “section 39”. ## § 6427: Fuels not used for taxable purposes - § 6427(a), § 6427(b)(1): Pub. L. 98–369, § 911(d)(2)(B), substituted “subsection (j)” for “subsection (i)”. - § 6427(b)(2), § 6427(b)(3): Pub. L. 98–369, § 915(a), added par. (2) and redesignated former par. (2) as (3). - § 6427(c), § 6427(d), § 6427(e)(1): Pub. L. 98–369, § 911(d)(2)(B), substituted “subsection (j)” for “subsection (i)”. - § 6427(e)(3): Pub. L. 98–369, § 914, substituted “September 30, 1985” for “September 30, 1984”. - § 6427(f): Pub. L. 98–369, § 911(d)(2)(B), substituted “subsection (j)” for “subsection (i)”. - § 6427(f): Pub. L. 98–369, § 912(d), substituted “5⅔ cents” for “45⁄9 cents”. - § 6427(f): Pub. L. 98–369, § 732(a)(3), substituted “45⁄9 cents” for “5 cents”. - § 6427(g): Pub. L. 98–369, § 911(b), added subsec. (g). Former subsec. (g) redesignated (h). - § 6427(h): Pub. L. 98–369, § 911(b), redesignated former subsec. (g) as (h). Former subsec. (h) redesignated (i). - § 6427(h)(1): Pub. L. 98–369, § 911(d)(2)(C), substituted “(f), or (g)” for “or (f)”, and inserted “(or a qualified diesel powered highway vehicle purchased)” after “fuel used” in two places. - § 6427(h)(2): Pub. L. 98–369, § 911(d)(2)(D), substituted “(e), and (g)” for “and (e)”, and inserted “(or a qualified diesel powered highway vehicle purchased)” after “fuel used” in two places. - § 6427(i): Pub. L. 98–369, § 911(b), redesignated former subsec. (h) as (i). Former subsec. (i) redesignated (j). - § 6427(i)(3): Pub. L. 98–369, § 474(r)(38), substituted “section 34” for “section 39”. - § 6427(j): Pub. L. 98–369, § 911(b), redesignated former subsec. (i), relating to income tax credit in lieu of payment, as (j). Former subsec. (j), relating to special rules with respect to noncommercial aviation, redesignated (k). - § 6427(j): Pub. L. 98–369, § 734(c)(2), added subsec. (j) relating to special rules with respect to noncommercial aviation. Former subsec. (j), relating to regulations, redesignated (k). - § 6427(j)(2): Pub. L. 98–369, § 911(d)(2)(E), which directed the amendment of subsec. (k)(2) by substituting “(h)(2)” for ‘(g)(2)” was executed to subsec. (j)(2) to reflect the probable intent of Congress. - § 6427(k): Pub. L. 98–369, § 911(b), redesignated former subsec. (j), relating to special rules with respect to noncommercial aviation, as (k). Former subsec. (k), relating to regulations, redesignated (l). - § 6427(k): Pub. L. 98–369, § 734(c)(2), redesignated former subsec. (j), relating to regulations, as (k). Former subsec. (k), relating to termination of subsections, redesignated (l). - § 6427(l): Pub. L. 98–369, § 911(b), redesignated former subsec. (k), relating to regulations, as (l). Former subsec. (l), relating to termination of subsections, redesignated (m). - § 6427(l): Pub. L. 98–369, § 734(c)(2), redesignated former subsec. (k), relating to termination of subsections, as (l). Former subsec. (l), relating to cross references, redesignated (m). - § 6427(m): Pub. L. 98–369, § 911(b), (d)(2)(F), redesignated former subsec. (l), relating to termination of subsections, as (m) and substituted “(d), and (g)” for “and (d)” in heading and text. Former subsec. (m), relating to cross references, redesignated (n). - § 6427(m): Pub. L. 98–369, § 734(c)(2), redesignated former subsec. (l), relating to cross references, as (m). - § 6427(n): Pub. L. 98–369, § 911(b), redesignated former subsec. (m), relating to cross references, as (n). ## § 6501: Limitations on assessment and collection - § 6501(c)(6): Pub. L. 98–369, § 211(b)(24)(A), redesignated par. (7) as (6) and struck out former par. (6) which provided that, in the case of any tax imposed under section 802(a) by reason of section 802(b)(3) on account of a termination of the taxpayer as an insurance company or as a life insurance company to which section 815(d)(2)(A) applied, or on account of a distribution by the taxpayer to which section 815(d)(2)(B) applied such tax could be assessed within 3 years after the return was filed (whether or not such return was filed on or after the date prescribed) for the taxable year for which the taxpayer ceased to be an insurance company, the second taxable year for which the taxpayer was not a life insurance company, or the taxable year in which the distribution was actually made, as the case might be. - § 6501(c)(7): Pub. L. 98–369, § 447(a), added par. (7). - § 6501(c)(7): Pub. L. 98–369, § 211(b)(24)(A), redesignated former par. (7) as (6). - § 6501(c)(8): Pub. L. 98–369, § 131(d)(2), added par. (8). - § 6501(g)(3): Pub. L. 98–369, § 801(d)(14), substituted “section 6011(c)(2)” for “section 6011(e)(2)”. - § 6501(k): Pub. L. 98–369, § 163(b)(1), as amended by Pub. L. 99–514, § 1847(b)(12), redesignated subsec. (m) as (k). - § 6501(k): Pub. L. 98–369, § 211(b)(24)(B), struck out former subsec. (k) which provided that in the case of a deficiency attributable to the application to the taxpayer of section 815(d)(5) (relating to reductions of policyholders surplus account of life insurance companies for certain unused deductions), such deficiency could be assessed at any time before the expiration of the period within which a deficiency for the last taxable year to which the loss described in section 815(d)(5)(A) was carried under section 812(b)(2) could be assessed. - § 6501(l): Pub. L. 98–369, § 163(b)(1), as amended by Pub. L. 99–514, § 1847(b)(12), redesignated subsec. (n) as (l) and struck out former subsec. (l) which read “For period of limitations for assessment and collection in the case of a joint income return filed after separate returns have been filed, see section 6013(b)(3) and (4).” - § 6501(l)(3): Pub. L. 98–369, § 314(a)(3), substituted “section 4942(g)(2)(B)(ii)” for “section 4942(g)(2)(B)(i)(II)” in subsec. (n)(3), which was redesignated subsec. (l)(3) by Pub. L. 98–369, § 163(b)(1). - § 6501(m): Pub. L. 98–369, § 163(b)(1), as amended by Pub. L. 99–514, § 1847(b)(12), redesignated subsec. (p) as (m). Former subsec. (m) redesignated (k). - § 6501(n): Pub. L. 98–369, § 163(b)(1), as amended by Pub. L. 99–514, § 1847(b)(12), added subsec. (n). Former subsec. (n) redesignated (l). - § 6501(n): Pub. L. 98–369, § 314(a)(3), substituted “section 4942(g)(2)(B)(ii)” for “section 4942(g)(2)(B)(i)(II)” in subsec. (n)(3), which was redesignated subsec. (l)(3) by Pub. L. 98–369, § 163(b)(1). - § 6501(o): Pub. L. 98–369, § 163(b)(1), as amended by Pub. L. 99–514, § 1847(b)(12), struck out subsec. (o) which read “For extension of period in the case of partnership items (as defined in section 6231(a)(3), see section 6229.” - § 6501(p): Pub. L. 98–369, § 163(b)(1), as amended by Pub. L. 99–514, § 1847(b)(12), redesignated subsec. (p) as (m). - § 6501(p): Pub. L. 98–369, § 474(r)(39), redesignated subsec. (q) as (p). Former subsec. (p), which related to deficiencies attributable to an election under section 44B, was struck out. - § 6501: Pub. L. 98–369, § 474(r)(39), redesignated subsec. (q) as (p). - § 6501: Pub. L. 98–369, § 714(p)(2)(F), amended par. (3) generally. Prior to amendment par. (3) related to partnership items of federally registered partnerships and provided that under regulations prescribed by the Secretary, rules similar to the rules of subsection (o) shall apply to the tax imposed by section 4986. ## § 6503: Suspension of running of period of limitation - § 6503(g): Pub. L. 98–369 substituted “section 4963(e)” for “section 4962(e)”. ## § 6511: Limitations on credit or refund - § 6511(d)(4)(C): Pub. L. 98–369, § 474(r)(40), substituted “business carryback under section 39 and any research credit carryback under section 30(g)(2)” for “investment credit carryback, work incentive program credit carryback, new employee credit carryback, research credit carryback, and employee stock ownership credit carryback”. - § 6511(d)(5): Pub. L. 98–369, § 2663(j)(5)(F), substituted “Secretary of Health and Human Services” for “Secretary of Health, Education, and Welfare”. - § 6511(d)(6), § 6511(d)(7): Pub. L. 98–369, § 211(b)(25), redesignated par. (7) as (6) and struck out former par. (6) relating to a special period of limitation with respect to reduction of policyholders surplus account of life insurance companies. - § 6511(f): Pub. L. 98–369, § 163(b)(2), substituted “section 6501(l)(1)” for “section 6501(n)(1)”. - § 6511(h): Pub. L. 98–369, § 714(p)(2)(G), amended par. (3) generally. Prior to amendment par. (3) related to partnership items of federally registered partnerships and provided that under regulations prescribed by the Secretary, rules similar to the rules of subsection (g) shall apply to the tax imposed by section 4986. - § 6511(i), § 6511: Pub. L. 98–369, § 735(c)(14), redesignated subsec. (j) as (i) and struck out former subsec. (i) which related to a special rule for certain tread rubber tax credits or refunds. ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(d)(2): Pub. L. 98–369, § 714(n)(1), made technical correction to directory language of Pub. L. 97–248, § 346(c)(2)(B). See 1982 Amendment note below. - § 6601(d)(3), § 6601(d)(4): Pub. L. 98–369, § 211(b)(26), redesignated par. (4) as (3) and struck out former par. (3) which had provided that if the amount of any tax imposed by subtitle A was reduced by operation of section 815(d)(5) (relating to reduction of policyholders surplus account of life insurance companies for certain unused deductions), such reduction in tax would not affect the computation of interest under this section for the period ending with the last day of the last taxable year to which the loss described in section 815(d)(5)(A) was carried under section 812(b)(2). - § 6601(e)(2): Pub. L. 98–369, § 158(a), in amending par. (2) generally, inserted “(other than an addition to tax imposed under section 6651(a)(1), 6659, 6660, or 6661)”, and added subpar. (B). - § 6601(h): Pub. L. 98–369, § 412(b)(7), amended subsec. (h) generally, substituting “any estimated tax required to be paid by section 6154 or 6654” for “estimated tax required by section 6153 or section 6154”. ## § 6611: Interest on overpayments - § 6611(f)(3): Pub. L. 98–369, § 714(n)(2)(A), added subpar. (C). - § 6611(f)(4): Pub. L. 98–369, § 211(b)(27), struck out par. (4) which provided that for purposes of subsection (a), if any overpayment of tax imposed by subtitle A arose by operation of section 815(d)(5) (relating to reduction of policyholders surplus account of life insurance companies for certain unused deductions), such overpayment would be deemed not to have been made prior to the close of the last taxable year to which the loss described in section 815(d)(5)(A) was carried under section 812(b)(2). ## § 6621: Determination of rate of interest - § 6621(d): Pub. L. 98–369 added subsec. (d). ## § 6651: Failure to file tax return or to pay tax - § 6651(d): Pub. L. 98–369 in amending subsec. (d) generally, substituted in heading “estimated tax” for “declarations of estimated tax”, struck out provisions making section inapplicable to any failure to file a declaration of estimated tax required by section 6015 or to any failure to pay any estimated tax required to be paid by section 6153, and made section inapplicable to any failure to pay any estimated tax required to be paid by section 6654. ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(a)(1): Pub. L. 98–369, § 145(b)(1), added cl. (v). - § 6652(a)(1): Pub. L. 98–369, § 146(b)(1), added cl. (vi). - § 6652(a)(1): Pub. L. 98–369, § 148(b)(1), added cl. (vii). - § 6652(a)(1): Pub. L. 98–369, § 149(b)(1), added cl. (viii). - § 6652(a)(1): Pub. L. 98–369, § 155(b)(2)(A), added cl. (ix). - § 6652(a): Pub. L. 98–369, § 148(b)(2), substituted “, 6050I, or 6050J” for “or 6050I”. - § 6652(a): Pub. L. 98–369, § 146(b)(2), substituted “, 6050H or 6050I” for “or section 6050H”. - § 6652(a): Pub. L. 98–369, § 145(b)(2), inserted “or section 6050H” after “section 6041A(b)”. - § 6652(f): Pub. L. 98–369, § 531(b)(4)(B)(i), which directed the amendment of subsec. (f) by striking out “or 6047 (relating to information relating to certain trusts and annuity and bond purchase plans)” and inserting in lieu thereof “, 6047 (relating to information relating to certain trusts and annuity and bond purchase plans), or 125(h) (relating to information with respect to cafeteria plans)”, was executed by substituting the quoted phrase for “or 6047 (relating to information relating to certain trusts and annuity plans)”, as the probable intent of Congress. - § 6652(f): Pub. L. 98–369, § 531(b)(4)(B)(ii), inserted “; etc.” in heading. - § 6652(f): Pub. L. 98–369, § 491(d)(50), struck out “and bond purchase” after “trusts and annuity”. - § 6652(i): Pub. L. 98–369, § 714(j)(3), added subsec. (i). Former subsec. (i), relating to alcohol and tobacco taxes, redesignated (j). - § 6652(j): Pub. L. 98–369, § 714(j)(3), redesignated former subsec. (i), relating to alcohol and tobacco taxes, as (j). ## § 6653: Failure to pay stamp tax - § 6653: Pub. L. 98–369 added subsec. (h) which provided for a special rule in the case of underpayment attributable to failure to meet the substantiation requirements of section 274(d) of this title. See 1985 Amendment note above. ## § 6654: Failure by individual to pay estimated income tax - § 6654(a): Pub. L. 98–369 amended subsec. (a) generally, setting out the exception provision as initial phrase, previously set out as second phrase, substituting “subsection (d)” for “this section”; and substituting “determined by applying—” and provisions designated cls. (1) to (3) for provisions reading “determined at an annual rate established under section 6621 upon the amount of the underpayment (determined under subsection (b)) for the period of the underpayment (determined under subsection (c)))”. - § 6654(b): Pub. L. 98–369 amended subsec. (b) generally, substituting provisions relating to amount and period of underpayment for provisions relating only to amount of underpayment. - § 6654(c): Pub. L. 98–369 amended subsec. (c) generally, substituting provisions relating to number of required installments and due dates for provisions respecting period of underpayment. See subsec. (b)(2) of this section. - § 6654(d): Pub. L. 98–369 amended subsec. (d) generally, substituting provisions relating to amount of required installments for provisions designated “Exception” and describing conditions for nonimposition of an addition to the tax with respect to any underpayment of any installment. - § 6654(e): Pub. L. 98–369 amended subsec. (e) generally, substituting provisions relating to exceptions for provisions relating to application of section in case of tax withheld on wages. See subsec. (g) of this section. - § 6654(f): Pub. L. 98–369 amended subsec. (f) generally, substituting provisions relating to tax computed after application of credits against tax for provisions relating to exception where tax is small amount. See subsec. (e)(1) of this section. - § 6654(g): Pub. L. 98–369 amended subsec. (g) generally, substituting provisions relating to application of section in case of tax withheld on wages for provisions relating to tax computed after application of credits against tax. See subsec. (f) of this section. - § 6654(h): Pub. L. 98–369 amended subsec. (h) generally, substituting provisions relating to special rule for returns filed on or before January 31 for provisions relating to exception for no tax liability for preceding taxable year. See subsec. (e)(2) of this section. - § 6654(i): Pub. L. 98–369 amended subsec. (i) generally, substituting provisions relating to special rules for farmers and fishermen for provisions relating to short taxable year. See subsec. (j)(2) of this section. - § 6654(j), § 6654(k), § 6654(l): Pub. L. 98–369, in amending section generally, added subsecs. (j) to (l). ## § 6686: Failure to file returns or supply information by DISC or former FSC - § 6686: Pub. L. 98–369 substituted “Failure to file returns or supply information by DISC or FSC” for “Failure of DISC to file returns” in section catchline, and in text substituted “section 6011(c)” for “section 6011(e)”. ## § 6693: Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions - § 6693(a): Pub. L. 98–369 substituted “$50” for “$10”. ## § 6695: Other assessable penalties with respect to the preparation of tax returns for other persons - § 6695(b): Pub. L. 98–369 amended subsec. (b) generally, substituting provisions dealing with failure to inform taxpayer of certain recordkeeping requirements of section 274(d) of this title or to sign returns, for provisions dealing with failure to sign returns. See 1985 Amendment note above. ## § 6700: Promoting abusive tax shelters, etc. - § 6700(a): Pub. L. 98–369 substituted “20 percent” for “10 percent”. ## § 6706: Original issue discount information requirements - Enacted 26 U.S.C. § 6706. ## § 6707: Failure to furnish information regarding reportable transactions - Enacted 26 U.S.C. § 6707. ## § 6708: Failure to maintain lists of advisees with respect to reportable transactions - Enacted 26 U.S.C. § 6708. ## § 6709: Penalties with respect to mortgage credit certificates - Enacted 26 U.S.C. § 6709. ## § 6801: Authority for establishment, alteration, and distribution - § 6801(b): Pub. L. 98–369 struck out “, except that stamps required by or prescribed pursuant to the provisions of section 5205 or section 5235 may be prepared and distributed by persons authorized by the Secretary, under such controls for the protection of the revenue as shall be deemed necessary” before the period at end. ## § 7203: Willful failure to file return, supply information, or pay tax - § 7203: Pub. L. 98–369 struck out “(other than a return required under the authority of section 6015)” after “to make a return”. ## § 7205: Fraudulent withholding exemption certificate or failure to supply information - § 7205: Pub. L. 98–369 in subsecs. (a) and (b) substituted “in addition to” for “in lieu of” and struck out reference to penalty under section 6682 after “penalty provided by law”. ## § 7207: Fraudulent returns, statements, or other documents - § 7207: Pub. L. 98–369 struck out “or (c)” after “subsection (b)”. ## § 7210: Failure to obey summons - § 7210: Pub. L. 98–369 substituted “6427(i)(2)” for “6427(h)(2)”. ## § 7213: Unauthorized disclosure of information - § 7213(a)(2): Pub. L. 98–369, § 2653(b)(4), substituted “(9), or (10)” for “or (9)”. - § 7213(a)(2): Pub. L. 98–369, § 453(b)(4), substituted “(7), (8), or (9)” for “(7), or (8)”. ## § 7216: Disclosure or use of information by preparers of returns - § 7216(a): Pub. L. 98–369 struck out from introductory text “or declarations or amended declarations of estimated tax under section 6015,” after “chapter 1,” and struck out “or declaration” after “such return” in three places. ## § 7408: Actions to enjoin specified conduct related to tax shelters and reportable transactions - § 7408(a): Pub. L. 98–369, § 143(b)(1), (2), inserted “or section 6701 (relating to penalties for aiding and abetting understatement of tax liability)” and inserted reference to section 6701 at end of second sentence. - § 7408(b): Pub. L. 98–369, § 143(b)(1), (3), inserted “or section 6701 (relating to penalties for aiding and abetting understatement of tax liability),” in par. (1) and inserted reference to section 6701 at end. ## § 7422: Civil actions for refund - § 7422(h): Pub. L. 98–369, § 714(p)(2)(H), substituted “section 6231(a)(3)” for “section 6131(a)(3)”. - § 7422(i), § 7422(j): Pub. L. 98–369, § 714(g)(1), added subsec. (i) and redesignated former subsec. (i) as (j). ## § 7428: Declaratory judgments relating to status and classification of organizations under section 501(c)(3), etc. - § 7428(d): Pub. L. 98–369 added subsec. (d). ## § 7429: Review of jeopardy levy or assessment procedures - § 7429(b)(2): Pub. L. 98–369 inserted provision that if the court determines that proper service was not made on the United States within 5 days after the date of the commencement of the action, the running of the 20-day period shall not begin before the day on which proper service was made on the United States. ## § 7430: Awarding of costs and certain fees - § 7430(a)(2): Pub. L. 98–369 inserted reference to United States Claims Court. ## § 7448: Annuities to surviving spouses and dependent children of judges and special trial judges - § 7448(h)(2): Pub. L. 98–369,§ 462(a)(1), substituted “$4,644” for “$900” and “$1,548” for “$360”. - § 7448(h)(3): Pub. L. 98–369, § 462(a)(2), substituted “$5,580 per year divided by the number of such children or $1,860 per year, whichever is lesser” for “$480 per year”. ## § 7456: Administration of oaths and procurement of testimony - § 7456(a): Pub. L. 98–369, § 464(a), substituted “special trial judge” for “commissioner” in three places. - § 7456(c): Pub. L. 98–369, § 464(b), substituted “Special trial judges” for “Commissioners” in heading, and in text substituted “special trial judges” for “commissioners” and “special trial judge” for “commissioner”. - § 7456: Pub. L. 98–369, § 464(c), substituted “Special trial judges” for “Commissioners” in heading, and substituted “special trial judges” for “commissioners” and “special trial judge” for “commissioner” in provisions following par. (4). - § 7456: Pub. L. 98–369, § 463(a), in amending subsec. (d) generally, struck out “and” at end of par. (2), substituted “any proceeding” for “any other proceeding” and “$10,000; and” for “$5,000,” in par. (3), added par. (4), and substituted “any proceeding described in paragraph (1), (2), or (3), subject to such conditions and review as the court may provide” for “any such proceeding, subject to such conditions and review as the court may by rule provide” in provisions following par. (4). ## § 7461: Publicity of proceedings - § 7461: Pub. L. 98–369, in amending section generally, designated existing provisions as subsecs. (a) and (b)(2), added subsec. (b)(1), and in subsec. (b)(2), as so designated, struck out reference to the Secretary’s delegate. ## § 7463: Disputes involving $50,000 or less - § 7463: Pub. L. 98–369, § 461(a)(2)(A), substituted “$10,000” for “$5,000” in section catchline. - § 7463(a): Pub. L. 98–369, § 461(a)(1), substituted “$10,000” for “$5,000” in pars. (1) to (4). ## § 7471: Employees - § 7471(c): Pub. L. 98–369 substituted references to special trial judges for references to commissioners in the subsection heading and text. ## § 7476: Declaratory judgments relating to qualification of certain retirement plans - § 7476(c): Pub. L. 98–369 struck out par. (3) which included a bond purchase plan described in section 405(a) within the term “retirement plan”. ## § 7482: Courts of review - § 7482(b)(1)(D), § 7482(b)(1)(E), § 7482(b)(1)(F): Pub. L. 98–369 struck out subpar. (D) which provided that venue in the case of a person seeking declaratory judgment under section 7477 be the legal residence of such person if such person is not a corporation, or the principal place of business or principal office or agency of such person if such person is a corporation, and redesignated subpars. (E) and (F) as (D) and (E), respectively. ## § 7502: Timely mailing treated as timely filing and paying - § 7502(e)(3): Pub. L. 98–369 added par. (3). ## § 7603: Service of summons - § 7603: Pub. L. 98–369 substituted “6427(i)(2)” for “6427(h)(2)”. ## § 7604: Enforcement of summons - § 7604(b), § 7604(c)(2): Pub. L. 98–369 substituted “6427(i)(2)” for “6427(h)(2)”. ## § 7605: Time and place of examination - § 7605(a): Pub. L. 98–369, § 911(d)(2)(G), substituted “6427(i)(2)” for “6427(h)(2)” in two places. - § 7605(c): Pub. L. 98–369, § 1033(c)(1), amended subsec. (c) generally, substituting a cross reference relating to church tax inquiries for provisions relating to church tax inquiries. ## § 7609: Special procedures for third-party summonses - § 7609(c)(1): Pub. L. 98–369, § 714(i), substituted “7602(a)” for “7602”. - § 7609(c)(1): Pub. L. 98–369, § 911(d)(2)(G), substituted “6427(i)(2)” for “6427(h)(2)”. ## § 7610: Fees and costs for witnesses - § 7610(c): Pub. L. 98–369 substituted “6427(i)(2)” for “6427(h)(2)”. ## § 7611: Restrictions on church tax inquiries and examinations - Enacted 26 U.S.C. § 7611. ## § 7613: Cross references ## § 7651: Administration and collection of taxes in possessions - § 7651: Pub. L. 98–369, § 801(d)(9), inserted “or subpart C of part III of subchapter N of chapter 1”. - § 7651: Pub. L. 98–369, § 130(c), inserted “(other than section 881(b)(1))”. ## § 7652: Shipments to the United States - § 7652(c), § 7652(d), § 7652(e): Pub. L. 98–369, § 2681(a), added subsecs. (c) and (d) and redesignated former subsec. (c) as (e). - § 7652(f): Pub. L. 98–369, § 2682(a), added subsec. (f). ## § 7701: Definitions - § 7701(a)(16): Pub. L. 98–369, § 474(r)(29)(K), struck out “1451,” after “1443”. - § 7701(a)(17): Pub. L. 98–369, § 422(d)(3), struck out reference to sections 71 and 215. - § 7701(a)(34): Pub. L. 98–369, § 412(b)(11), repealed par. (34) which defined estimated income tax in the case of an individual or a corporation as the estimated tax defined in section 6015(d) or 6154(c), respectively. - § 7701(a)(37): Pub. L. 98–369, § 491(d)(53), struck out subpar. (C) which included a retirement bond described in section 409 within the term “individual plan”. - § 7701(a)(42), § 7701(a)(43), § 7701(a)(44), § 7701(a)(45): Pub. L. 98–369, § 43(a)(1), added pars. (42) to (45). - § 7701(a)(46): Pub. L. 98–369, § 526(c)(1), added par. (46). - § 7701(b): Pub. L. 98–369, § 138(a), added subsec. (b). Former subsec. (b), relating to includes and including, redesignated (c). - § 7701(c): Pub. L. 98–369, § 138(a), redesignated former subsec. (b), relating to includes and including, as (c). Former subsec. (c), relating to Commonwealth of Puerto Rico, redesignated (d). - § 7701(d): Pub. L. 98–369, § 138(a), redesignated former subsec. (c), relating to Commonwealth of Puerto Rico, as (d). Former subsec. (d), relating to cross references, redesignated (e). - § 7701(e): Pub. L. 98–369, § 31(e), added subsec. (e). Former subsec. (e), relating to cross references, redesignated (f). - § 7701(e): Pub. L. 98–369, § 138(a), redesignated former subsec. (d), relating to cross references, as (e). - § 7701(f): Pub. L. 98–369, § 53(c), added subsec. (f). Former subsec. (f), relating to cross references, redesignated (g). - § 7701(f): Pub. L. 98–369, § 31(e), redesignated former subsec. (e), relating to cross references, as (f). - § 7701(g): Pub. L. 98–369, § 75(c), added subsec. (g). Former subsec. (g), relating to cross references, redesignated (h). - § 7701(g): Pub. L. 98–369, § 53(c), redesignated former subsec. (f), relating to cross references, as (g). - § 7701(h): Pub. L. 98–369, § 75(c), redesignated former subsec. (g), relating to cross references, as (h). ## § 7702: Life insurance contract defined - Enacted 26 U.S.C. § 7702. ## § 7805: Rules and regulations - § 7805: Pub. L. 98–369 added subsec. (d). ## § 7810: Revolving fund for redemption of real property - § 7810(a): Pub. L. 98–369 substituted “$10,000,000” for “$1,000,000”. ## § 7871: Indian tribal governments treated as States for certain purposes - § 7871(a)(6)(A): Pub. L. 98–369, § 474(r)(41), substituted “section 24(c)(4)” for “section 41(c)(4)”. - § 7871(a)(6)(B), § 7871(a)(6)(C), § 7871(a)(6): Pub. L. 98–369, § 1065(b), as amended by Pub. L. 99–514, § 1878(i), added subpars. (B), (D), and (F), and redesignated former subpars. (B) and (C) as (C) and (E), respectively. ## § 7872: Treatment of loans with below-market interest rates - Enacted 26 U.S.C. § 7872. ## § 9502: Airport and Airway Trust Fund - § 9502(b): Pub. L. 98–369, § 735(c)(15), substituted “under section 4071 with respect to tires of the types used on aircraft” for “under paragraphs (2) and (3) of section 4071(a), with respect to tires and tubes of types used on aircraft”. - § 9502(d)(3): Pub. L. 98–369, § 474(r)(42), substituted references to section 34 for references to section 39 in heading and text. ## § 9503: Highway Trust Fund - § 9503(c)(2): Pub. L. 98–369, § 474(r)(43), substituted “section 34” for “section 39”. - § 9503(c)(2): Pub. L. 98–369, § 911(d)(1)(B), inserted “(or with respect to qualified diesel-powered highway vehicles purchased before January 1, 1988)”. - § 9503(c)(4)(A): Pub. L. 98–369, § 1016(b)(1)(C), substituted “Boat Safety Account” for “National Recreational Boating Safety and Facilities Improvement Fund” in heading. - § 9503(c)(4)(A): Pub. L. 98–369, § 1016(b)(1)(A), substituted “the Boat Safety Account in the Aquatic Resources Trust Fund” for “the National Recreational Boating Safety and Facilities Improvement Fund established by section 202 of the Recreational Boating Fund Act”. - § 9503(c)(4)(A): Pub. L. 98–369, § 1016(b)(1)(B), substituted “the amount in the Boat Safety Account” for “the amount in the National Recreational Boating and Facilities Improvement Fund”. - § 9503(c)(4)(B), § 9503(c)(4): Pub. L. 98–369, § 1016(b)(2), added subpars. (B) and (C), redesignated former subpar. (C) as (D), and struck out former subpar. (B) which provided for the transfer of excess funds to the Land and Water Conservation Fund. - § 9503(e)(2): Pub. L. 98–369, § 911(d)(1)(A), amended par. (2) generally, substituting “the mass transit portion” for “one-ninth”, and inserting provision defining mass transit portion as an amount determined at the rate of 1 cent for each gallon with respect to which tax was imposed under section 4041 or 4081. ## § 9504: Sport Fish Restoration and Boating Trust Fund - Enacted 26 U.S.C. § 9504.