Title 26 — Internal Revenue Code
Part I · Chapter 1 — Normal Taxes and Surtaxes
§ 443. Returns for a period of less than 12 months
Statutory text
Returns for short period
A return for a period of less than 12 months (referred to in this section as “short period”) shall be made under any of the following circumstances:
Change of annual accounting period
When the taxpayer, with the approval of the Secretary, changes his annual accounting period. In such a case, the return shall be made for the short period beginning on the day after the close of the former taxable year and ending at the close of the day before the day designated as the first day of the new taxable year.
Taxpayer not in existence for entire taxable year
When the taxpayer is in existence during only part of what would otherwise be his taxable year.
Computation of tax on change of annual accounting period
General rule
If a return is made under paragraph (1) of subsection (a), the taxable income for the short period shall be placed on an annual basis by multiplying the modified taxable income for such short period by 12, dividing the result by the number of months in the short period. The tax shall be the same part of the tax computed on the annual basis as the number of months in the short period is of 12 months.
Exception
Computation based on 12-month period
If the taxpayer applies for the benefits of this paragraph and establishes the amount of this taxable income for the 12-month period described in subparagraph (B), computed as if that period were a taxable year and under the law applicable to that year, then the tax for the short period, computed under paragraph (1), shall be reduced to the greater of the following:
an amount which bears the same ratio to the tax computed on the taxable income for the 12-month period as the modified taxable income computed on the basis of the short period bears to the modified taxable income for the 12-month period; or
the tax computed on the modified taxable income for the short period.
The taxpayer (other than a taxpayer to whom subparagraph (B)(ii) applies) shall compute the tax and file his return without the application of this paragraph.
12-month period
The 12-month period referred to in subparagraph (A) shall be—
the period of 12 months beginning on the first day of the short period, or
the period of 12 months ending at the close of the last day of the short period, if at the end of the 12 months referred to in clause (i) the taxpayer is not in existence or (if a corporation) has theretofore disposed of substantially all of its assets.
Application for benefits
Application for the benefits of this paragraph shall be made in such manner and at such time as the regulations prescribed under subparagraph (D) may require; except that the time so prescribed shall not be later than the time (including extensions) for filing the return for the first taxable year which ends on or after the day which is 12 months after the first day of the short period. Such application, in case the return was filed without regard to this paragraph, shall be considered a claim for credit or refund with respect to the amount by which the tax is reduced under this paragraph.
Regulations
The Secretary shall prescribe such regulations as he deems necessary for the application of this paragraph.
Modified taxable income defined
For purposes of this subsection the term “modified taxable income” means, with respect to any period, the gross income for such period minus the deductions allowed by this chapter for such period (but, in the case of a short period, only the adjusted amount of the deductions for personal exemptions).
Adjustment in deduction for personal exemption
In the case of a taxpayer other than a corporation, if a return is made for a short period by reason of subsection (a)(1) and if the tax is not computed under subsection (b)(2), then the exemptions allowed as a deduction under section 151 (and any deduction in lieu thereof) shall be reduced to amounts which bear the same ratio to the full exemptions as the number of months in the short period bears to 12.
Adjustment in computing minimum tax and tax preferences
If a return is made for a short period by reason of subsection (a)—
the alternative minimum taxable income for the short period shall be placed on an annual basis by multiplying such amount by 12 and dividing the result by the number of months in the short period, and
the amount computed under paragraph (1) of section 55(a) shall bear the same relation to the tax computed on the annual basis as the number of months in the short period bears to 12.
Cross references
For inapplicability of subsection (b) in computing—
Accumulated earnings tax, see section 536.
Personal holding company tax, see section 546.
The taxable income of a regulated investment company, see section 852(b)(2)(E).
The taxable income of a real estate investment trust, see section 857(b)(2)(C).
For returns for a period of less than 12 months in the case of a debtor’s election to terminate a taxable year, see section 1398(d)(2)(E).
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Aug. 16, 1954, ch. 736, 68A Stat. 149 · 68A Stat. 149
Enacted · 26 U.S.C. § 443
Aug. 16, 1954, ch. 736, 68A Stat. 149
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 149Pub. L. 86–779 § 10(i) · 74 Stat. 998
Added · 26 U.S.C. § 443(d)(5)
Pub. L. 86–779 added par. (5)
Source evidence
Code amendment note
Subsec. (d)(5). Pub. L. 86–779 added par. (5).Enacted provision · exact public law section
(i) Section 443(d) of such Code (relating to computation of tax 26 USC 443. on change of annual accounting period) is amended by adding at the end thereof the following new paragraph: “(5) The taxable income of a real estate investment trust, see section 857(b)(2)(D).”Tax Reform Act of 1969
Pub. L. 91–172 title III § 301(b)(6) · 83 Stat. 487
Added · 26 U.S.C. § 443(d); 26 U.S.C. § 443(e)
Pub. L. 91–172 added subsec. (d)
Redesignated · 26 U.S.C. § 443(d); 26 U.S.C. § 443(e)
Pub. L. 91–172 redesignated former subsec. (d) as (e)
Source evidence
Code amendment note
Subsecs. (d), (e). Pub. L. 91–172 added subsec. (d) and redesignated former subsec. (d) as (e).Enacted provision · exact public law section
(6) Section 443 (relating to returns for a period of less than 12 68A Stat. 149. 26 USC 443. months) is amended by redesignating subsection (d) as subsection (e) and inserting after subsection (c) the following new subsection: “(d) Adjustment in Exclusion for Computing Minimum Tax for Tax Preferences.— If a return is made for a short period by reason of subsection (a), then the $30,000 amount specified in section 56 Ante, p. 580. (relating to minimum tax for tax preferences), modified as provided by section 58, shall be reduced to the amount which bears the same ratio to such specified amount as the number of days in the short period bears to 365.”Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 443(a)(1)
Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.Pub. L. 94–455 § 1204(c)(2) · 90 Stat. 1520
Struck · 26 U.S.C. § 443(a)(3)
Pub. L. 94–455, § 1204(c)(2), struck out par. (3) which made termination of taxpayer’s taxable year under section 6851 as one of the circumstances under which a tax return for a period of less than 12 months shall be made
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 94–455, § 1204(c)(2), struck out par. (3) which made termination of taxpayer’s taxable year under section 6851 as one of the circumstances under which a tax return for a period of less than 12 months shall be made.Enacted provision · exact public law section
(2) Section 443(a)(3) (relating to returns for terminated 26 USC 443. period) is repealed.Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 443(b)(2)(D)
Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsec. (b)(2)(D). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.Pub. L. 94–455 § 301(e) · 90 Stat. 1520
Substituted · 26 U.S.C. § 443(d)
Pub. L. 94–455, § 301(e), substituted “$10,000” for “$30,000”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 94–455, § 301(e), substituted “$10,000” for “$30,000”.Enacted provision · exact public law section
(e) Conforming Amendment.— Subsection (d) of section 443 (relating 26 USC 443. to adjustment in exclusion for computing minimum tax for tax preferences) is amended by striking out “$30,000” and inserting in lieu thereof “$10,000”.Pub. L. 94–455 § 1607(b)(1)(C) · 90 Stat. 1520
Substituted · 26 U.S.C. § 443(e)(5)
Pub. L. 94–455, § 1607(b)(1)(C), substituted “section 857(b)(2)(C)” for “section 857(b)(2)(D)”
Source evidence
Code amendment note
Subsec. (e)(5). Pub. L. 94–455, § 1607(b)(1)(C), substituted “section 857(b)(2)(C)” for “section 857(b)(2)(D)”.Enacted provision · exact public law section
(C) Section 443(e)(5) (relating to cross references) is amended 26 USC 443. by striking out “857(b)(2)(D)” and inserting in lieu thereof “857(b)(2)(C)”. . .Tax Reduction and Simplification Act of 1977
Pub. L. 95–30 title I § 102(b)(6) · 91 Stat. 126
Substituted · 26 U.S.C. § 443(b)(1)
Pub. L. 95–30 substituted “multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions) by 12, dividing the result by the number of months in the short period, and adding the zero bracket amount” for “multiplying such income by 12, and dividing the result by the number of months in the short period”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 95–30 substituted “multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions) by 12, dividing the result by the number of months in the short period, and adding the zero bracket amount” for “multiplying such income by 12, and dividing the result by the number of months in the short period”.Enacted provision · exact public law section
(6) Paragraph (1) of section 443(b) (relating to computation 26 USC 443. of tax on change of annual accounting period) is amended to read as follows: “(1) General rule.— If a return is made under paragraph (1) of subsection (a), the taxable income for the short period shall be placed on an annual basis by multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions) by 12, dividing the result by the number of months in the short period, and adding the zero bracket amount. The tax shall be the same part of the tax computed on the annual basis as the number of months in the short period is of 12 months.”Pub. L. 95–600 § 703 · 92 Stat. 2763
Substituted · 26 U.S.C. § 443(b)(1)
Pub. L. 95–600, § 703(o)(2), substituted “modified taxable income for such short period” for “gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions)”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 95–600, § 703(o)(2), substituted “modified taxable income for such short period” for “gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions)”.Enacted provision · exact public law section
SEC. 703. CORRECTIONS OF PUNCTUATION. SPELLING. INCORRECT CROSS REFERENCES. ETC. (a) Erroneous Cross Reference in Investment Credit.— (1) Amendment of section 46(f)(8).— The first sentence of 26 USC 46. paragraph (8) of section 46(D is amended by striking out “subsection (a)(6)(D)” and inserting in lieu thereof “subsection (a)(7)(D)”. (2) Amendment of section 46(g)(5).— Paragraph (5) of section 46(g) (relating to definitions) is amended by striking out “Merchant 46 USC 1245 note. 46 USC 1101 et seq. Marine Act, 1970” and inserting in lieu thereof “Merchant Marine Act, 1936”. (3) Amendment of section 48(d)(1)(B).— Subparagraph (B) of section 48(d)(1) is amended by striking out “section 46(a)(5)” and inserting in lieu thereof “section 46(a)(6)”. (4) Amendment of section 48(d)(4)(d).— Subparagraph (D) of 26 USC 48. 26 USC 57. section 48(d)(4) is amended by striking out “section 57(c)(2)” and inserting in lieu thereof “section 57(c)(1)(B)”. (b) Prepaid Legal Services.— (1) Paragraph (2) of section 2134(e) of the Tax Reform Act of 26 USC 120 note. 26 USC 120. 26 USC 501. 1976 is amended by striking out “section 120(d)(6)” and inserting in lieu thereof “section 120(d)(7)”. (2) Paragraph (20) of section 501(c) is amended by striking out “section 501(c)(20)” and inserting in lieu thereof “this paragraph”. (c) Amendments Relating to Sections 219 and 220.— (1) Amendment of section 219(c)(4).— Paragraph (4) of section 219(c) (relating to participation in governmental plans by certain 26 USC 219. individuals) is amended by striking out “subsection (b)(3)(A)(iv)” each place it appears and inserting in lieu thereof “subsection (b)(2)(A)(iv)”. (2) Amendment of section 220(b)(1)(A).— Subparagraph (A) of section 220(b)(1) (relating to retirement savings for certain married 26 USC 220. individuals) is amended by striking out “amount paid to the account or annuity, or for the bond” and inserting in lieu thereof “amount paid to the account, for the annuity, or for the bond”. (3) Amendment of section 22O(b)(4).— Paragraph (4) of section 220(b) is amended by inserting “described in subsection (a)” after “any payment”. (4) Amendment of section 408(d)(4).— Subparagraph (A) of 26 USC 408. section 1501(b)(5) of the Tax Reform Act of 1976 is amended to read as follows: “(A) by inserting ‘or 220’ after ‘219’ each place it appears, and”. (5) Effective date.— The amendments made by this subsection 26 USC 46 note. shall apply to taxable years beginning after December 31, 1976. (d) Accrual Accounting for Farm Corporations.— Subsections (a) and (g)(2) of section 447 are each amended by striking out 26 USC 447. “preproductive expenses” and inserting in lieu thereof “preproductive period expenses”. (e) Amendment of Section 911.— Subsection (c) of section 911 is 26 USC 911. amended by redesignating paragraph (8) as paragraph (7). (f) Transition Rule for Private Foundations.— Subparagraph 26 USC 4940 note. (F) of section 101(1)(2) of the Tax Reform Act of 1969 (relating to private foundations savings provisions) is amended by striking out the period at the end of clause (i) and inserting in lieu thereof a comma. (g) Lobbying by Public Charities.— (1) Lobbying nontaxable amount.— Paragraph (2) of section 26 USC 4911. 4911(c) (defining lobbying nontaxable amount) is amended by striking out “proposed expenditures” in the heading of the table contained in such paragraph and inserting in lieu thereof “exempt purpose expenditures”. (2) Technical amendments relating to section 501.— (A) 26 USC 501. Section 2(a) of Public Law 94–568 is amended by striking out “subsection (h) as subsection (i) and by inserting after subsection (g)” and inserting in lieu thereof “subsection (i) as subsection (j) and by inserting after subsection (h)”. (B) 26 USC 501. Subsection (g) of section 501 of the Internal Revenue Code of 1954 (as inserted by section 2(a) of Public Law 94–568) is redesignated as subsection (i). (C) 26 USC 501 note. The amendments made by this paragraph shall take effect on October 20, 1976, as if included in Public Law 94–568. (h) Amendments to Foreign Tax Provisions.— (1) 26 USC 907 note. Paragraph (2) of section 1035(c) of the Tax Reform Act of 1976 (relating to tax credit for production-sharing contracts) is amended— (A) 26 USC 907. by inserting “(as defined in section 907(c) of such Code)” after “gas extraction income” in subparagraph (A), and (B) by striking out “(as defined in section 907(c)(1) of such Code)” in subparagraph (B) and inserting in lieu thereof “(as so defined)”. (2) Paragraph (1) of section 999(c) (relating to international boycott factor) is amended by striking out “995(b)(3)” and inserting in lieu thereof “995(b)(1)(F)(ii)”. (3) Paragraph (2) of section 999(c) is amended by striking out “995(b)(1)(D)(ii)” and inserting in lieu thereof “995(b)(1)(F)(ii)”. (i) Amendments to DISC Provisions.— (1) 26 USC 995. The last two sentences of section 995(b)(1) (relating to deemed distributions to shareholders of a DISC) are amended— (A) by striking out “gross income (taxable income in the case of subparagraph (D))” and inserting in lieu thereof “income”; and (B) by striking out “subparagraph (E)” and inserting in lieu thereof “subparagraph (G)”. (2) Subparagraph (G) of section 995(b)(1) is amended by striking out “subsection (D)” and inserting in lieu thereof “subsection (d)”. (3) 26 USC 996.26 USC 995.26 USC 995 note.26 USC 993.26 USC 995. Paragraph (2) of section 996(a) (relating to qualifying distributions) is amended by striking out “section 995(b)(1)(E)” and inserting in lieu thereof “section 995(b)(1)(G)”. (4) Paragraph (5) of section 1101(g) of the Tax Reform Act of 1976 is amended by striking out “section 993(e)(3)” and inserting in lieu thereof “section 995(e)(3)”. (j) Amendments Relating to Deadwood Provisions.— (1) Tax exempt governmental obligations.— (A) The heading of paragraph (1) of section 103(b) is 26 USC 103. amended to read as follows: “(1) Subsection (a) (1) or (2) not to apply.—”. (B) Paragraph (1) of section 103(c) is amended by striking out “(a) (1) or (4)” each place it appears (including in the paragraph heading) and inserting in lieu thereof “(a) (1) or (2)”. (C) Subparagraph (A) of section 103(c)(2) is amended by striking out “subsection (a) (1) or (2) or (4)” and inserting in lieu thereof “subsection (a) (1) or (2)”. (D) Paragraph (5) of section 103(c) is amended by striking out “subsection (d)(2)(A)” and inserting in lieu thereof “paragraph (2)(A)”. (E) Subsection (d) of section 103 is amended by striking out “subsection (c)(4)(G)” and inserting in lieu thereof “subsection (b)(4)(G)”. (2) Amendments relating to section 311(d)(2).— (A) Subsection (b) of section 2 of the Bank Holding Company 26 USC 311. Tax Act of 1976 is amended— (i) by striking out “subparagraph (F)” and inserting in lieu thereof “subparagraph (E)”, and (ii) by striking out “subparagraph (G)” and inserting in lieu thereof “subparagraph (F)”. (B) Subparagraph (H) of section 311(d)(2) is redesignated as subparagraph (G). (C) The amendments made by this paragraph shall take 26 USC 311 note. effect as if included in section 2(b) of the Bank Holding Company Tax Act of 1976. (3) Amendment to section 453(c).— Paragraph (3) of section 453(c) is amended— 26 USC 453. (A) by striking out “(or by the corresponding provisions of prior revenue laws)” in the first sentence, and (B) by striking out the last sentence. (4) Amendment of section 801(g).— Paragraphs (1)(B)(ii) and (7) of section 801(g) are each amended by striking out “subparagraph 26 USC 801. 26 USC 805. (A), (B), (C), (D), or (E) of section 805(d)(1)” and inserting in lieu thereof “any paragraph of section 805(d)”. (5) Amendment of section 1033(a)(2).— Clause (ii) of section 103(a)(2)(A) is amended by striking out “subsection (c)” and 26 USC 1033. inserting in lieu thereof “subsection (b)”. (6) Amendment of section 1375(a).— Paragraph (2) of section 1375(a) is amended by striking out “such excess” each place it 26 USC 1375. appears and inserting in lieu thereof “such gain”. (7) Amendment of section 1561(b)(3).— Paragraph (3) of section 1561(b) is amended by striking out “804(a)(4)” and inserting in 26 USC 1561. lieu thereof “804(a)(3)”. (8) Amendments of section 1402.— (A) The last paragraph of section 1402(a) of the Internal 26 USC 1402. Revenue Code of 1954 (definition of net earnings from self-employment) is amended by striking out “subsection (i)” each place it appears and inserting in lieu thereof “subsection (h)”. (B) Section 1402(c)(6) of such Code (definition of trade or business) is amended by striking out “subsection (h)” and inserting in lieu thereof “subsection (g)”. (9) Amendment to section 46(a).— Subparagraph (C) of section 1901(b)(1) of the Tax Reform Act of 1976 is amended by striking 26 USC 46. 26 USC 46. out “Section 46(a)(3)” and inserting in lieu thereof “Section 46(a)(4)”. (10) 26 USC 6504. Amendment relating to section 6504.— Subparagraph (D) of section 1901(b)(37) of the Tax Reform Act of 1976 is amended by striking out “6515” and inserting in lieu thereof “6504”. (11) 26 USC 37 note. Territories.— Subsection (c) of section 1901 of the Tax Reform Act of 1976 (relating to Territories) is amended by striking out paragraph (1) thereof. (12) 26 USC 2011 note. Estate and gift taxes effective date.— Subsection (c) of section 1902 of the Tax Reform Act of 1976 is amended to read as follows: “(c) Effective Dates.— “(1) 26 USC 2011 note. Estate tax amendments.— The amendments made by paragraphs (1) through (8), and paragraphs (12) (A), (B), and (C), of subsection (a) and by subsection (b) shall apply in the case of estates of decedents dying after the date of the enactment of this Act, and the amendment made by paragraph (9) of subsection (a) shall apply in the case of estates of decedents dying after December 31, 1970. “(2) 26 USC 2501 note. Gift tax amendments.— The amendments made by paragraphs (10), (11), and (12) (D) and (E) of subsection (a) shall apply with respect to gifts made after December 31, 1976.” (13) 26 USC 4973 note. Effective date for amendment made by section 1904(a)(22)(a).— Notwithstanding section 1904(d) of the Tax Reform Act of 1976, the amendment made by section 1904(a)(22)(A) of such Act shall take effect on the date of the enactment of such Act. (14) Amendments to social security act.— (A) 42 USC 402. Section 202(v) of the Social Security Act is amended by striking out “section 1402(h)” each place it appears and inserting in lieu thereof “section 1402(g)”. (B) 42 USC 405. Section 205(p)(3) of such Act is amended by striking out “Secretary of the Treasury” and inserting in lieu thereof “Secretary of Transportation”. (C) 42 USC 410. Section 210(a)(6)(B)(v) of such Act is amended by striking out “Secretary of the Treasury” and inserting in lieu thereof “Secretary of Transportation”. (D) 42 USC 411. Section 211(a)(2) of such Act is amended by striking out “(other than interest described in section 35 of the Internal 26 USC 35. Revenue Code of 1954)”. (E) 42 USC 411. Section 211(c)(6) of such Act is amended by striking out “section 1402(h)” and inserting in lieu thereof “section 1402(g)”. (k) 26 USC 1212. Capital Loss Carryovers.— Clause (ii) of section 1212(a)(1)(C) (relating to capital loss carryovers for foreign expropriation losses) is amended by striking out “exceeding the loss year” and inserting in lieu thereof “succeeding the loss year”. (l) Amendments Relating to Certain Aircraft Museums.— (1) 26 USC 4041. Paragraph (2) of section 4041(h) (defining aircraft museum) is amended by striking out “term ‘aircraft’ means” and inserting in lieu thereof “term ‘aircraft museum’ means”. (2) Subsection (i) of section 4041 (as added by section 1904(a)(1)(C) of the Tax Reform Act of 1976) is redesignated as subsection (j). (3) 26 USC 6427. Subsection (d) of section 6427 (relating to repayment of tax on fuels used by certain aircraft museums) is amended by striking out “Secretary or his delegate” and inserting in lieu thereof “Secretary”. (4) Paragraph (1) of section 7609(c) (defining summons to which 26 USC 7609. section applies) is amended by striking out “6427(e)(2)” and inserting in lieu thereof “6427(f)(2)”. (m) Inspection by Committee of Congress.— Paragraph (2) of section 6104(a) (relating to inspection by committee of Congress) is 26 USC 6104. 26 USC 6103. amended by striking out “Section 6103(d)” and inserting in lieu thereof “Section 6103(f)”. (n) Amendment of Section 6501.— Subsections (h), (j), and (o) of section 6501 are each amended by striking out “section 6213(b)(2)” 26 USC 6501. and inserting in lieu thereof “section 6213(b)(3)”. (o) Conforming Amendments to New Definition of Taxable Income.— (1) Subparagraph (A) of section 443(b)(2) (relating to computation 26 USC 443. based on 12-month period) is amended— (A) by striking out “taxable income” the second and third places it appears in clause (i) and inserting in lieu thereof “modified taxable income”, and (B) by amending clause (ii) to read as follows: “(ii) the tax computed on the sum of the modified taxable income for the short period plus the zero bracket amount.” (2) Paragraph (1) of section 443(b) is amended by striking out “gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions)” and inserting in lieu thereof “modified taxable income for such short period”. (3) Subsection (b) of section 443 is amended by adding at the end thereof the following new paragraph: “(3) Modified taxable income defined.— For purposes of this subsection the term ‘modified taxable income’ means, with respect to any period, the gross income for such period minus the deductions allowed by this chapter for such period (but, in the case of a short period, only the adjusted amount of the deductions for personal exemptions)/’ (4) The amendments made by this subsection shall apply to 26 USC 443 note. taxable years beginning after December 31, 1976. (p) Conforming Amendments to Repeal of Section 317 of Trade Expansion Act of 1962.— (1) Amendments of section 172.— (A) Subparagraph (A) of section 172(b)(1) (relating to years 26 USC 172. to which loss may be carried) is amended to read as follows: “(A) Except as provided in subparagraphs (D), (E), (F), and (G), a net operating loss for any taxable year shall be a net operating loss carryback to each of the 3 taxable years preceding the taxable year of such loss.” (B) Paragraph (3) of section 172(b) (relating to special rules) is amended by striking out subparagraphs (A) and (B) and by redesignating subparagraphs (O, (D), and (E) as subparagraphs (A), (B), and (C), respectively. (C) Subparagraph (B) of section 172(b)(3) (as redesignated by subparagraph (B)) is amended by striking out “subparagraph (C)(iii)” each place it appears and inserting in lieu thereof “subparagraph (A)(iii)”. (2) Amendment of section 6501(h).— Subsection (h) of section 26 USC 6501. 6501 (relating to net operating loss or capital loss carryback) is amended by striking out the last sentence. (3) Amendment of section 6511(d)(2).— The first sentence of 26 USC 6511. section 6511(d)(2)(A) (relating to special period of limitation for net operating loss or capital loss carrybacks) is amended by striking out “except that—” and all that follows down through the period at the end of such sentence and inserting in lieu thereof the following: “except that with respect to an overpayment attributable to the creation of, or an increase in a net operating loss carryback as a result of the elimination of excessive profits by a renegotiation (as defined in section 1481(a) 26 USC 1481. (1)(A)), the period shall not expire before the expiration of the 12th month following the month in which the agreement or order for the elimination of such excessive profits becomes final.” (4) 26 USC 172 note. Effective date.— The amendments made by this subsection shall apply with respect to losses sustained in taxable years ending after the date of the enactment of this Act. (q) 20 USC 1001 note.26 USC 103.20 USC 1001 note.20 USC 1087–1.26 USC 103 note. Conforming Amendment To Repeal of Section 2 of the Emergency Insured Student Loan Act of 1969.— (1) In general.— Paragraph (5) of section 103(d) (relating to arbitrage bonds) is amended by striking out “section 2 of the Emergency Insured Student Loan Act of 1969” and inserting in lieu thereof “section 438 of the Higher Education Act of 1965”. (2) Effective date.—The amendment made by paragraph (1) shall apply with respect to payments made by the Commissioner of Education after December 31, 1976. (r) 26 USC 46 note. Effective Date.— Except as otherwise provided, the amendments made by this section shall take effect on October 4, 1976.Pub. L. 95–600 § 703 · 92 Stat. 2763
Substituted · 26 U.S.C. § 443(b)(2)
Pub. L. 95–600, § 703(o)(1), substituted in cl. (i) “modified taxable income” for “taxable income”
Substituted · 26 U.S.C. § 443(b)(2)
Pub. L. 95–600, § 703(o)(1), substituted in cl. (i) “the sum of the modified taxable income” for “the taxable income”
Substituted · 26 U.S.C. § 443(b)(2)
Pub. L. 95–600, § 703(o)(1), substituted in cl. (i) “plus the zero bracket amount” for “without placing the taxable income on an annual basis”
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 95–600, § 703(o)(1), substituted in cl. (i) “modified taxable income” for “taxable income” in two places and in cl. (ii) “the sum of the modified taxable income” for “the taxable income” and “plus the zero bracket amount” for “without placing the taxable income on an annual basis”.Enacted provision · exact public law section
SEC. 703. CORRECTIONS OF PUNCTUATION. SPELLING. INCORRECT CROSS REFERENCES. ETC. (a) Erroneous Cross Reference in Investment Credit.— (1) Amendment of section 46(f)(8).— The first sentence of 26 USC 46. paragraph (8) of section 46(D is amended by striking out “subsection (a)(6)(D)” and inserting in lieu thereof “subsection (a)(7)(D)”. (2) Amendment of section 46(g)(5).— Paragraph (5) of section 46(g) (relating to definitions) is amended by striking out “Merchant 46 USC 1245 note. 46 USC 1101 et seq. Marine Act, 1970” and inserting in lieu thereof “Merchant Marine Act, 1936”. (3) Amendment of section 48(d)(1)(B).— Subparagraph (B) of section 48(d)(1) is amended by striking out “section 46(a)(5)” and inserting in lieu thereof “section 46(a)(6)”. (4) Amendment of section 48(d)(4)(d).— Subparagraph (D) of 26 USC 48. 26 USC 57. section 48(d)(4) is amended by striking out “section 57(c)(2)” and inserting in lieu thereof “section 57(c)(1)(B)”. (b) Prepaid Legal Services.— (1) Paragraph (2) of section 2134(e) of the Tax Reform Act of 26 USC 120 note. 26 USC 120. 26 USC 501. 1976 is amended by striking out “section 120(d)(6)” and inserting in lieu thereof “section 120(d)(7)”. (2) Paragraph (20) of section 501(c) is amended by striking out “section 501(c)(20)” and inserting in lieu thereof “this paragraph”. (c) Amendments Relating to Sections 219 and 220.— (1) Amendment of section 219(c)(4).— Paragraph (4) of section 219(c) (relating to participation in governmental plans by certain 26 USC 219. individuals) is amended by striking out “subsection (b)(3)(A)(iv)” each place it appears and inserting in lieu thereof “subsection (b)(2)(A)(iv)”. (2) Amendment of section 220(b)(1)(A).— Subparagraph (A) of section 220(b)(1) (relating to retirement savings for certain married 26 USC 220. individuals) is amended by striking out “amount paid to the account or annuity, or for the bond” and inserting in lieu thereof “amount paid to the account, for the annuity, or for the bond”. (3) Amendment of section 22O(b)(4).— Paragraph (4) of section 220(b) is amended by inserting “described in subsection (a)” after “any payment”. (4) Amendment of section 408(d)(4).— Subparagraph (A) of 26 USC 408. section 1501(b)(5) of the Tax Reform Act of 1976 is amended to read as follows: “(A) by inserting ‘or 220’ after ‘219’ each place it appears, and”. (5) Effective date.— The amendments made by this subsection 26 USC 46 note. shall apply to taxable years beginning after December 31, 1976. (d) Accrual Accounting for Farm Corporations.— Subsections (a) and (g)(2) of section 447 are each amended by striking out 26 USC 447. “preproductive expenses” and inserting in lieu thereof “preproductive period expenses”. (e) Amendment of Section 911.— Subsection (c) of section 911 is 26 USC 911. amended by redesignating paragraph (8) as paragraph (7). (f) Transition Rule for Private Foundations.— Subparagraph 26 USC 4940 note. (F) of section 101(1)(2) of the Tax Reform Act of 1969 (relating to private foundations savings provisions) is amended by striking out the period at the end of clause (i) and inserting in lieu thereof a comma. (g) Lobbying by Public Charities.— (1) Lobbying nontaxable amount.— Paragraph (2) of section 26 USC 4911. 4911(c) (defining lobbying nontaxable amount) is amended by striking out “proposed expenditures” in the heading of the table contained in such paragraph and inserting in lieu thereof “exempt purpose expenditures”. (2) Technical amendments relating to section 501.— (A) 26 USC 501. Section 2(a) of Public Law 94–568 is amended by striking out “subsection (h) as subsection (i) and by inserting after subsection (g)” and inserting in lieu thereof “subsection (i) as subsection (j) and by inserting after subsection (h)”. (B) 26 USC 501. Subsection (g) of section 501 of the Internal Revenue Code of 1954 (as inserted by section 2(a) of Public Law 94–568) is redesignated as subsection (i). (C) 26 USC 501 note. The amendments made by this paragraph shall take effect on October 20, 1976, as if included in Public Law 94–568. (h) Amendments to Foreign Tax Provisions.— (1) 26 USC 907 note. Paragraph (2) of section 1035(c) of the Tax Reform Act of 1976 (relating to tax credit for production-sharing contracts) is amended— (A) 26 USC 907. by inserting “(as defined in section 907(c) of such Code)” after “gas extraction income” in subparagraph (A), and (B) by striking out “(as defined in section 907(c)(1) of such Code)” in subparagraph (B) and inserting in lieu thereof “(as so defined)”. (2) Paragraph (1) of section 999(c) (relating to international boycott factor) is amended by striking out “995(b)(3)” and inserting in lieu thereof “995(b)(1)(F)(ii)”. (3) Paragraph (2) of section 999(c) is amended by striking out “995(b)(1)(D)(ii)” and inserting in lieu thereof “995(b)(1)(F)(ii)”. (i) Amendments to DISC Provisions.— (1) 26 USC 995. The last two sentences of section 995(b)(1) (relating to deemed distributions to shareholders of a DISC) are amended— (A) by striking out “gross income (taxable income in the case of subparagraph (D))” and inserting in lieu thereof “income”; and (B) by striking out “subparagraph (E)” and inserting in lieu thereof “subparagraph (G)”. (2) Subparagraph (G) of section 995(b)(1) is amended by striking out “subsection (D)” and inserting in lieu thereof “subsection (d)”. (3) 26 USC 996.26 USC 995.26 USC 995 note.26 USC 993.26 USC 995. Paragraph (2) of section 996(a) (relating to qualifying distributions) is amended by striking out “section 995(b)(1)(E)” and inserting in lieu thereof “section 995(b)(1)(G)”. (4) Paragraph (5) of section 1101(g) of the Tax Reform Act of 1976 is amended by striking out “section 993(e)(3)” and inserting in lieu thereof “section 995(e)(3)”. (j) Amendments Relating to Deadwood Provisions.— (1) Tax exempt governmental obligations.— (A) The heading of paragraph (1) of section 103(b) is 26 USC 103. amended to read as follows: “(1) Subsection (a) (1) or (2) not to apply.—”. (B) Paragraph (1) of section 103(c) is amended by striking out “(a) (1) or (4)” each place it appears (including in the paragraph heading) and inserting in lieu thereof “(a) (1) or (2)”. (C) Subparagraph (A) of section 103(c)(2) is amended by striking out “subsection (a) (1) or (2) or (4)” and inserting in lieu thereof “subsection (a) (1) or (2)”. (D) Paragraph (5) of section 103(c) is amended by striking out “subsection (d)(2)(A)” and inserting in lieu thereof “paragraph (2)(A)”. (E) Subsection (d) of section 103 is amended by striking out “subsection (c)(4)(G)” and inserting in lieu thereof “subsection (b)(4)(G)”. (2) Amendments relating to section 311(d)(2).— (A) Subsection (b) of section 2 of the Bank Holding Company 26 USC 311. Tax Act of 1976 is amended— (i) by striking out “subparagraph (F)” and inserting in lieu thereof “subparagraph (E)”, and (ii) by striking out “subparagraph (G)” and inserting in lieu thereof “subparagraph (F)”. (B) Subparagraph (H) of section 311(d)(2) is redesignated as subparagraph (G). (C) The amendments made by this paragraph shall take 26 USC 311 note. effect as if included in section 2(b) of the Bank Holding Company Tax Act of 1976. (3) Amendment to section 453(c).— Paragraph (3) of section 453(c) is amended— 26 USC 453. (A) by striking out “(or by the corresponding provisions of prior revenue laws)” in the first sentence, and (B) by striking out the last sentence. (4) Amendment of section 801(g).— Paragraphs (1)(B)(ii) and (7) of section 801(g) are each amended by striking out “subparagraph 26 USC 801. 26 USC 805. (A), (B), (C), (D), or (E) of section 805(d)(1)” and inserting in lieu thereof “any paragraph of section 805(d)”. (5) Amendment of section 1033(a)(2).— Clause (ii) of section 103(a)(2)(A) is amended by striking out “subsection (c)” and 26 USC 1033. inserting in lieu thereof “subsection (b)”. (6) Amendment of section 1375(a).— Paragraph (2) of section 1375(a) is amended by striking out “such excess” each place it 26 USC 1375. appears and inserting in lieu thereof “such gain”. (7) Amendment of section 1561(b)(3).— Paragraph (3) of section 1561(b) is amended by striking out “804(a)(4)” and inserting in 26 USC 1561. lieu thereof “804(a)(3)”. (8) Amendments of section 1402.— (A) The last paragraph of section 1402(a) of the Internal 26 USC 1402. Revenue Code of 1954 (definition of net earnings from self-employment) is amended by striking out “subsection (i)” each place it appears and inserting in lieu thereof “subsection (h)”. (B) Section 1402(c)(6) of such Code (definition of trade or business) is amended by striking out “subsection (h)” and inserting in lieu thereof “subsection (g)”. (9) Amendment to section 46(a).— Subparagraph (C) of section 1901(b)(1) of the Tax Reform Act of 1976 is amended by striking 26 USC 46. 26 USC 46. out “Section 46(a)(3)” and inserting in lieu thereof “Section 46(a)(4)”. (10) 26 USC 6504. Amendment relating to section 6504.— Subparagraph (D) of section 1901(b)(37) of the Tax Reform Act of 1976 is amended by striking out “6515” and inserting in lieu thereof “6504”. (11) 26 USC 37 note. Territories.— Subsection (c) of section 1901 of the Tax Reform Act of 1976 (relating to Territories) is amended by striking out paragraph (1) thereof. (12) 26 USC 2011 note. Estate and gift taxes effective date.— Subsection (c) of section 1902 of the Tax Reform Act of 1976 is amended to read as follows: “(c) Effective Dates.— “(1) 26 USC 2011 note. Estate tax amendments.— The amendments made by paragraphs (1) through (8), and paragraphs (12) (A), (B), and (C), of subsection (a) and by subsection (b) shall apply in the case of estates of decedents dying after the date of the enactment of this Act, and the amendment made by paragraph (9) of subsection (a) shall apply in the case of estates of decedents dying after December 31, 1970. “(2) 26 USC 2501 note. Gift tax amendments.— The amendments made by paragraphs (10), (11), and (12) (D) and (E) of subsection (a) shall apply with respect to gifts made after December 31, 1976.” (13) 26 USC 4973 note. Effective date for amendment made by section 1904(a)(22)(a).— Notwithstanding section 1904(d) of the Tax Reform Act of 1976, the amendment made by section 1904(a)(22)(A) of such Act shall take effect on the date of the enactment of such Act. (14) Amendments to social security act.— (A) 42 USC 402. Section 202(v) of the Social Security Act is amended by striking out “section 1402(h)” each place it appears and inserting in lieu thereof “section 1402(g)”. (B) 42 USC 405. Section 205(p)(3) of such Act is amended by striking out “Secretary of the Treasury” and inserting in lieu thereof “Secretary of Transportation”. (C) 42 USC 410. Section 210(a)(6)(B)(v) of such Act is amended by striking out “Secretary of the Treasury” and inserting in lieu thereof “Secretary of Transportation”. (D) 42 USC 411. Section 211(a)(2) of such Act is amended by striking out “(other than interest described in section 35 of the Internal 26 USC 35. Revenue Code of 1954)”. (E) 42 USC 411. Section 211(c)(6) of such Act is amended by striking out “section 1402(h)” and inserting in lieu thereof “section 1402(g)”. (k) 26 USC 1212. Capital Loss Carryovers.— Clause (ii) of section 1212(a)(1)(C) (relating to capital loss carryovers for foreign expropriation losses) is amended by striking out “exceeding the loss year” and inserting in lieu thereof “succeeding the loss year”. (l) Amendments Relating to Certain Aircraft Museums.— (1) 26 USC 4041. Paragraph (2) of section 4041(h) (defining aircraft museum) is amended by striking out “term ‘aircraft’ means” and inserting in lieu thereof “term ‘aircraft museum’ means”. (2) Subsection (i) of section 4041 (as added by section 1904(a)(1)(C) of the Tax Reform Act of 1976) is redesignated as subsection (j). (3) 26 USC 6427. Subsection (d) of section 6427 (relating to repayment of tax on fuels used by certain aircraft museums) is amended by striking out “Secretary or his delegate” and inserting in lieu thereof “Secretary”. (4) Paragraph (1) of section 7609(c) (defining summons to which 26 USC 7609. section applies) is amended by striking out “6427(e)(2)” and inserting in lieu thereof “6427(f)(2)”. (m) Inspection by Committee of Congress.— Paragraph (2) of section 6104(a) (relating to inspection by committee of Congress) is 26 USC 6104. 26 USC 6103. amended by striking out “Section 6103(d)” and inserting in lieu thereof “Section 6103(f)”. (n) Amendment of Section 6501.— Subsections (h), (j), and (o) of section 6501 are each amended by striking out “section 6213(b)(2)” 26 USC 6501. and inserting in lieu thereof “section 6213(b)(3)”. (o) Conforming Amendments to New Definition of Taxable Income.— (1) Subparagraph (A) of section 443(b)(2) (relating to computation 26 USC 443. based on 12-month period) is amended— (A) by striking out “taxable income” the second and third places it appears in clause (i) and inserting in lieu thereof “modified taxable income”, and (B) by amending clause (ii) to read as follows: “(ii) the tax computed on the sum of the modified taxable income for the short period plus the zero bracket amount.” (2) Paragraph (1) of section 443(b) is amended by striking out “gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions)” and inserting in lieu thereof “modified taxable income for such short period”. (3) Subsection (b) of section 443 is amended by adding at the end thereof the following new paragraph: “(3) Modified taxable income defined.— For purposes of this subsection the term ‘modified taxable income’ means, with respect to any period, the gross income for such period minus the deductions allowed by this chapter for such period (but, in the case of a short period, only the adjusted amount of the deductions for personal exemptions)/’ (4) The amendments made by this subsection shall apply to 26 USC 443 note. taxable years beginning after December 31, 1976. (p) Conforming Amendments to Repeal of Section 317 of Trade Expansion Act of 1962.— (1) Amendments of section 172.— (A) Subparagraph (A) of section 172(b)(1) (relating to years 26 USC 172. to which loss may be carried) is amended to read as follows: “(A) Except as provided in subparagraphs (D), (E), (F), and (G), a net operating loss for any taxable year shall be a net operating loss carryback to each of the 3 taxable years preceding the taxable year of such loss.” (B) Paragraph (3) of section 172(b) (relating to special rules) is amended by striking out subparagraphs (A) and (B) and by redesignating subparagraphs (O, (D), and (E) as subparagraphs (A), (B), and (C), respectively. (C) Subparagraph (B) of section 172(b)(3) (as redesignated by subparagraph (B)) is amended by striking out “subparagraph (C)(iii)” each place it appears and inserting in lieu thereof “subparagraph (A)(iii)”. (2) Amendment of section 6501(h).— Subsection (h) of section 26 USC 6501. 6501 (relating to net operating loss or capital loss carryback) is amended by striking out the last sentence. (3) Amendment of section 6511(d)(2).— The first sentence of 26 USC 6511. section 6511(d)(2)(A) (relating to special period of limitation for net operating loss or capital loss carrybacks) is amended by striking out “except that—” and all that follows down through the period at the end of such sentence and inserting in lieu thereof the following: “except that with respect to an overpayment attributable to the creation of, or an increase in a net operating loss carryback as a result of the elimination of excessive profits by a renegotiation (as defined in section 1481(a) 26 USC 1481. (1)(A)), the period shall not expire before the expiration of the 12th month following the month in which the agreement or order for the elimination of such excessive profits becomes final.” (4) 26 USC 172 note. Effective date.— The amendments made by this subsection shall apply with respect to losses sustained in taxable years ending after the date of the enactment of this Act. (q) 20 USC 1001 note.26 USC 103.20 USC 1001 note.20 USC 1087–1.26 USC 103 note. Conforming Amendment To Repeal of Section 2 of the Emergency Insured Student Loan Act of 1969.— (1) In general.— Paragraph (5) of section 103(d) (relating to arbitrage bonds) is amended by striking out “section 2 of the Emergency Insured Student Loan Act of 1969” and inserting in lieu thereof “section 438 of the Higher Education Act of 1965”. (2) Effective date.—The amendment made by paragraph (1) shall apply with respect to payments made by the Commissioner of Education after December 31, 1976. (r) 26 USC 46 note. Effective Date.— Except as otherwise provided, the amendments made by this section shall take effect on October 4, 1976.Pub. L. 95–600 § 703 · 92 Stat. 2763
Added · 26 U.S.C. § 443(b)(3)
Pub. L. 95–600, § 703(o)(3), added par. (3)
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 95–600, § 703(o)(3), added par. (3).Enacted provision · exact public law section
SEC. 703. CORRECTIONS OF PUNCTUATION. SPELLING. INCORRECT CROSS REFERENCES. ETC. (a) Erroneous Cross Reference in Investment Credit.— (1) Amendment of section 46(f)(8).— The first sentence of 26 USC 46. paragraph (8) of section 46(D is amended by striking out “subsection (a)(6)(D)” and inserting in lieu thereof “subsection (a)(7)(D)”. (2) Amendment of section 46(g)(5).— Paragraph (5) of section 46(g) (relating to definitions) is amended by striking out “Merchant 46 USC 1245 note. 46 USC 1101 et seq. Marine Act, 1970” and inserting in lieu thereof “Merchant Marine Act, 1936”. (3) Amendment of section 48(d)(1)(B).— Subparagraph (B) of section 48(d)(1) is amended by striking out “section 46(a)(5)” and inserting in lieu thereof “section 46(a)(6)”. (4) Amendment of section 48(d)(4)(d).— Subparagraph (D) of 26 USC 48. 26 USC 57. section 48(d)(4) is amended by striking out “section 57(c)(2)” and inserting in lieu thereof “section 57(c)(1)(B)”. (b) Prepaid Legal Services.— (1) Paragraph (2) of section 2134(e) of the Tax Reform Act of 26 USC 120 note. 26 USC 120. 26 USC 501. 1976 is amended by striking out “section 120(d)(6)” and inserting in lieu thereof “section 120(d)(7)”. (2) Paragraph (20) of section 501(c) is amended by striking out “section 501(c)(20)” and inserting in lieu thereof “this paragraph”. (c) Amendments Relating to Sections 219 and 220.— (1) Amendment of section 219(c)(4).— Paragraph (4) of section 219(c) (relating to participation in governmental plans by certain 26 USC 219. individuals) is amended by striking out “subsection (b)(3)(A)(iv)” each place it appears and inserting in lieu thereof “subsection (b)(2)(A)(iv)”. (2) Amendment of section 220(b)(1)(A).— Subparagraph (A) of section 220(b)(1) (relating to retirement savings for certain married 26 USC 220. individuals) is amended by striking out “amount paid to the account or annuity, or for the bond” and inserting in lieu thereof “amount paid to the account, for the annuity, or for the bond”. (3) Amendment of section 22O(b)(4).— Paragraph (4) of section 220(b) is amended by inserting “described in subsection (a)” after “any payment”. (4) Amendment of section 408(d)(4).— Subparagraph (A) of 26 USC 408. section 1501(b)(5) of the Tax Reform Act of 1976 is amended to read as follows: “(A) by inserting ‘or 220’ after ‘219’ each place it appears, and”. (5) Effective date.— The amendments made by this subsection 26 USC 46 note. shall apply to taxable years beginning after December 31, 1976. (d) Accrual Accounting for Farm Corporations.— Subsections (a) and (g)(2) of section 447 are each amended by striking out 26 USC 447. “preproductive expenses” and inserting in lieu thereof “preproductive period expenses”. (e) Amendment of Section 911.— Subsection (c) of section 911 is 26 USC 911. amended by redesignating paragraph (8) as paragraph (7). (f) Transition Rule for Private Foundations.— Subparagraph 26 USC 4940 note. (F) of section 101(1)(2) of the Tax Reform Act of 1969 (relating to private foundations savings provisions) is amended by striking out the period at the end of clause (i) and inserting in lieu thereof a comma. (g) Lobbying by Public Charities.— (1) Lobbying nontaxable amount.— Paragraph (2) of section 26 USC 4911. 4911(c) (defining lobbying nontaxable amount) is amended by striking out “proposed expenditures” in the heading of the table contained in such paragraph and inserting in lieu thereof “exempt purpose expenditures”. (2) Technical amendments relating to section 501.— (A) 26 USC 501. Section 2(a) of Public Law 94–568 is amended by striking out “subsection (h) as subsection (i) and by inserting after subsection (g)” and inserting in lieu thereof “subsection (i) as subsection (j) and by inserting after subsection (h)”. (B) 26 USC 501. Subsection (g) of section 501 of the Internal Revenue Code of 1954 (as inserted by section 2(a) of Public Law 94–568) is redesignated as subsection (i). (C) 26 USC 501 note. The amendments made by this paragraph shall take effect on October 20, 1976, as if included in Public Law 94–568. (h) Amendments to Foreign Tax Provisions.— (1) 26 USC 907 note. Paragraph (2) of section 1035(c) of the Tax Reform Act of 1976 (relating to tax credit for production-sharing contracts) is amended— (A) 26 USC 907. by inserting “(as defined in section 907(c) of such Code)” after “gas extraction income” in subparagraph (A), and (B) by striking out “(as defined in section 907(c)(1) of such Code)” in subparagraph (B) and inserting in lieu thereof “(as so defined)”. (2) Paragraph (1) of section 999(c) (relating to international boycott factor) is amended by striking out “995(b)(3)” and inserting in lieu thereof “995(b)(1)(F)(ii)”. (3) Paragraph (2) of section 999(c) is amended by striking out “995(b)(1)(D)(ii)” and inserting in lieu thereof “995(b)(1)(F)(ii)”. (i) Amendments to DISC Provisions.— (1) 26 USC 995. The last two sentences of section 995(b)(1) (relating to deemed distributions to shareholders of a DISC) are amended— (A) by striking out “gross income (taxable income in the case of subparagraph (D))” and inserting in lieu thereof “income”; and (B) by striking out “subparagraph (E)” and inserting in lieu thereof “subparagraph (G)”. (2) Subparagraph (G) of section 995(b)(1) is amended by striking out “subsection (D)” and inserting in lieu thereof “subsection (d)”. (3) 26 USC 996.26 USC 995.26 USC 995 note.26 USC 993.26 USC 995. Paragraph (2) of section 996(a) (relating to qualifying distributions) is amended by striking out “section 995(b)(1)(E)” and inserting in lieu thereof “section 995(b)(1)(G)”. (4) Paragraph (5) of section 1101(g) of the Tax Reform Act of 1976 is amended by striking out “section 993(e)(3)” and inserting in lieu thereof “section 995(e)(3)”. (j) Amendments Relating to Deadwood Provisions.— (1) Tax exempt governmental obligations.— (A) The heading of paragraph (1) of section 103(b) is 26 USC 103. amended to read as follows: “(1) Subsection (a) (1) or (2) not to apply.—”. (B) Paragraph (1) of section 103(c) is amended by striking out “(a) (1) or (4)” each place it appears (including in the paragraph heading) and inserting in lieu thereof “(a) (1) or (2)”. (C) Subparagraph (A) of section 103(c)(2) is amended by striking out “subsection (a) (1) or (2) or (4)” and inserting in lieu thereof “subsection (a) (1) or (2)”. (D) Paragraph (5) of section 103(c) is amended by striking out “subsection (d)(2)(A)” and inserting in lieu thereof “paragraph (2)(A)”. (E) Subsection (d) of section 103 is amended by striking out “subsection (c)(4)(G)” and inserting in lieu thereof “subsection (b)(4)(G)”. (2) Amendments relating to section 311(d)(2).— (A) Subsection (b) of section 2 of the Bank Holding Company 26 USC 311. Tax Act of 1976 is amended— (i) by striking out “subparagraph (F)” and inserting in lieu thereof “subparagraph (E)”, and (ii) by striking out “subparagraph (G)” and inserting in lieu thereof “subparagraph (F)”. (B) Subparagraph (H) of section 311(d)(2) is redesignated as subparagraph (G). (C) The amendments made by this paragraph shall take 26 USC 311 note. effect as if included in section 2(b) of the Bank Holding Company Tax Act of 1976. (3) Amendment to section 453(c).— Paragraph (3) of section 453(c) is amended— 26 USC 453. (A) by striking out “(or by the corresponding provisions of prior revenue laws)” in the first sentence, and (B) by striking out the last sentence. (4) Amendment of section 801(g).— Paragraphs (1)(B)(ii) and (7) of section 801(g) are each amended by striking out “subparagraph 26 USC 801. 26 USC 805. (A), (B), (C), (D), or (E) of section 805(d)(1)” and inserting in lieu thereof “any paragraph of section 805(d)”. (5) Amendment of section 1033(a)(2).— Clause (ii) of section 103(a)(2)(A) is amended by striking out “subsection (c)” and 26 USC 1033. inserting in lieu thereof “subsection (b)”. (6) Amendment of section 1375(a).— Paragraph (2) of section 1375(a) is amended by striking out “such excess” each place it 26 USC 1375. appears and inserting in lieu thereof “such gain”. (7) Amendment of section 1561(b)(3).— Paragraph (3) of section 1561(b) is amended by striking out “804(a)(4)” and inserting in 26 USC 1561. lieu thereof “804(a)(3)”. (8) Amendments of section 1402.— (A) The last paragraph of section 1402(a) of the Internal 26 USC 1402. Revenue Code of 1954 (definition of net earnings from self-employment) is amended by striking out “subsection (i)” each place it appears and inserting in lieu thereof “subsection (h)”. (B) Section 1402(c)(6) of such Code (definition of trade or business) is amended by striking out “subsection (h)” and inserting in lieu thereof “subsection (g)”. (9) Amendment to section 46(a).— Subparagraph (C) of section 1901(b)(1) of the Tax Reform Act of 1976 is amended by striking 26 USC 46. 26 USC 46. out “Section 46(a)(3)” and inserting in lieu thereof “Section 46(a)(4)”. (10) 26 USC 6504. Amendment relating to section 6504.— Subparagraph (D) of section 1901(b)(37) of the Tax Reform Act of 1976 is amended by striking out “6515” and inserting in lieu thereof “6504”. (11) 26 USC 37 note. Territories.— Subsection (c) of section 1901 of the Tax Reform Act of 1976 (relating to Territories) is amended by striking out paragraph (1) thereof. (12) 26 USC 2011 note. Estate and gift taxes effective date.— Subsection (c) of section 1902 of the Tax Reform Act of 1976 is amended to read as follows: “(c) Effective Dates.— “(1) 26 USC 2011 note. Estate tax amendments.— The amendments made by paragraphs (1) through (8), and paragraphs (12) (A), (B), and (C), of subsection (a) and by subsection (b) shall apply in the case of estates of decedents dying after the date of the enactment of this Act, and the amendment made by paragraph (9) of subsection (a) shall apply in the case of estates of decedents dying after December 31, 1970. “(2) 26 USC 2501 note. Gift tax amendments.— The amendments made by paragraphs (10), (11), and (12) (D) and (E) of subsection (a) shall apply with respect to gifts made after December 31, 1976.” (13) 26 USC 4973 note. Effective date for amendment made by section 1904(a)(22)(a).— Notwithstanding section 1904(d) of the Tax Reform Act of 1976, the amendment made by section 1904(a)(22)(A) of such Act shall take effect on the date of the enactment of such Act. (14) Amendments to social security act.— (A) 42 USC 402. Section 202(v) of the Social Security Act is amended by striking out “section 1402(h)” each place it appears and inserting in lieu thereof “section 1402(g)”. (B) 42 USC 405. Section 205(p)(3) of such Act is amended by striking out “Secretary of the Treasury” and inserting in lieu thereof “Secretary of Transportation”. (C) 42 USC 410. Section 210(a)(6)(B)(v) of such Act is amended by striking out “Secretary of the Treasury” and inserting in lieu thereof “Secretary of Transportation”. (D) 42 USC 411. Section 211(a)(2) of such Act is amended by striking out “(other than interest described in section 35 of the Internal 26 USC 35. Revenue Code of 1954)”. (E) 42 USC 411. Section 211(c)(6) of such Act is amended by striking out “section 1402(h)” and inserting in lieu thereof “section 1402(g)”. (k) 26 USC 1212. Capital Loss Carryovers.— Clause (ii) of section 1212(a)(1)(C) (relating to capital loss carryovers for foreign expropriation losses) is amended by striking out “exceeding the loss year” and inserting in lieu thereof “succeeding the loss year”. (l) Amendments Relating to Certain Aircraft Museums.— (1) 26 USC 4041. Paragraph (2) of section 4041(h) (defining aircraft museum) is amended by striking out “term ‘aircraft’ means” and inserting in lieu thereof “term ‘aircraft museum’ means”. (2) Subsection (i) of section 4041 (as added by section 1904(a)(1)(C) of the Tax Reform Act of 1976) is redesignated as subsection (j). (3) 26 USC 6427. Subsection (d) of section 6427 (relating to repayment of tax on fuels used by certain aircraft museums) is amended by striking out “Secretary or his delegate” and inserting in lieu thereof “Secretary”. (4) Paragraph (1) of section 7609(c) (defining summons to which 26 USC 7609. section applies) is amended by striking out “6427(e)(2)” and inserting in lieu thereof “6427(f)(2)”. (m) Inspection by Committee of Congress.— Paragraph (2) of section 6104(a) (relating to inspection by committee of Congress) is 26 USC 6104. 26 USC 6103. amended by striking out “Section 6103(d)” and inserting in lieu thereof “Section 6103(f)”. (n) Amendment of Section 6501.— Subsections (h), (j), and (o) of section 6501 are each amended by striking out “section 6213(b)(2)” 26 USC 6501. and inserting in lieu thereof “section 6213(b)(3)”. (o) Conforming Amendments to New Definition of Taxable Income.— (1) Subparagraph (A) of section 443(b)(2) (relating to computation 26 USC 443. based on 12-month period) is amended— (A) by striking out “taxable income” the second and third places it appears in clause (i) and inserting in lieu thereof “modified taxable income”, and (B) by amending clause (ii) to read as follows: “(ii) the tax computed on the sum of the modified taxable income for the short period plus the zero bracket amount.” (2) Paragraph (1) of section 443(b) is amended by striking out “gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions)” and inserting in lieu thereof “modified taxable income for such short period”. (3) Subsection (b) of section 443 is amended by adding at the end thereof the following new paragraph: “(3) Modified taxable income defined.— For purposes of this subsection the term ‘modified taxable income’ means, with respect to any period, the gross income for such period minus the deductions allowed by this chapter for such period (but, in the case of a short period, only the adjusted amount of the deductions for personal exemptions)/’ (4) The amendments made by this subsection shall apply to 26 USC 443 note. taxable years beginning after December 31, 1976. (p) Conforming Amendments to Repeal of Section 317 of Trade Expansion Act of 1962.— (1) Amendments of section 172.— (A) Subparagraph (A) of section 172(b)(1) (relating to years 26 USC 172. to which loss may be carried) is amended to read as follows: “(A) Except as provided in subparagraphs (D), (E), (F), and (G), a net operating loss for any taxable year shall be a net operating loss carryback to each of the 3 taxable years preceding the taxable year of such loss.” (B) Paragraph (3) of section 172(b) (relating to special rules) is amended by striking out subparagraphs (A) and (B) and by redesignating subparagraphs (O, (D), and (E) as subparagraphs (A), (B), and (C), respectively. (C) Subparagraph (B) of section 172(b)(3) (as redesignated by subparagraph (B)) is amended by striking out “subparagraph (C)(iii)” each place it appears and inserting in lieu thereof “subparagraph (A)(iii)”. (2) Amendment of section 6501(h).— Subsection (h) of section 26 USC 6501. 6501 (relating to net operating loss or capital loss carryback) is amended by striking out the last sentence. (3) Amendment of section 6511(d)(2).— The first sentence of 26 USC 6511. section 6511(d)(2)(A) (relating to special period of limitation for net operating loss or capital loss carrybacks) is amended by striking out “except that—” and all that follows down through the period at the end of such sentence and inserting in lieu thereof the following: “except that with respect to an overpayment attributable to the creation of, or an increase in a net operating loss carryback as a result of the elimination of excessive profits by a renegotiation (as defined in section 1481(a) 26 USC 1481. (1)(A)), the period shall not expire before the expiration of the 12th month following the month in which the agreement or order for the elimination of such excessive profits becomes final.” (4) 26 USC 172 note. Effective date.— The amendments made by this subsection shall apply with respect to losses sustained in taxable years ending after the date of the enactment of this Act. (q) 20 USC 1001 note.26 USC 103.20 USC 1001 note.20 USC 1087–1.26 USC 103 note. Conforming Amendment To Repeal of Section 2 of the Emergency Insured Student Loan Act of 1969.— (1) In general.— Paragraph (5) of section 103(d) (relating to arbitrage bonds) is amended by striking out “section 2 of the Emergency Insured Student Loan Act of 1969” and inserting in lieu thereof “section 438 of the Higher Education Act of 1965”. (2) Effective date.—The amendment made by paragraph (1) shall apply with respect to payments made by the Commissioner of Education after December 31, 1976. (r) 26 USC 46 note. Effective Date.— Except as otherwise provided, the amendments made by this section shall take effect on October 4, 1976.Pub. L. 95–600 § 421(e)(2) · 92 Stat. 2763
Substituted · 26 U.S.C. § 443(d)
Pub. L. 95–600, § 421(e)(2), substituted “Adjustment in computing minimum tax for tax preferences” for “Adjustment in exclusion for computing minimum tax for tax preferences” in heading
Redesignated · 26 U.S.C. § 443(d)
Pub. L. 95–600, § 421(e)(2), redesignated existing provisions as par. (2) and as so redesignated applied par. (2) to corporations
Added · 26 U.S.C. § 443(d)
Pub. L. 95–600, § 421(e)(2), added par. (1)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 95–600, § 421(e)(2), substituted “Adjustment in computing minimum tax for tax preferences” for “Adjustment in exclusion for computing minimum tax for tax preferences” in heading, redesignated existing provisions as par. (2) and as so redesignated applied par. (2) to corporations, and added par. (1).Enacted provision · exact public law section
(2) 26 USC 443. Subsection (d) of section 443 (relating to adjustment in computing minimum tax for short periods) is amended to read as follows: “(d) Adjustment in Computing Minimum Tax for Tax Preferences.— If a return is made for a short period by reason of subsection (a), then— “(1) in the case of a taxpayer other than a corporation, the alternative minimum taxable income for the short period shall be placed on an annual basis by multiplying that amount by 12 and dividing the result by the number of months in the short period, and the amount computed under paragraph (1) of section 26 USC 55. 55(a) shall be the same part of the tax computed on the annual basis as the number of months in the short period is of 12 months; and “(2) in the case of a corporation, the $10,000 amount specified 26 USC 56. 26 USC 58. in section 56 (relating to minimum tax for tax preferences), modified as provided by section 58, shall be reduced to the amount which bears the same ratio to such specified amount as the number of days in the short period bears to 365.”.Technical Corrections Act of 1979
Pub. L. 96–222 title I § 104(a)(4)(H)(iii) · 94 Stat. 194
Struck · 26 U.S.C. § 443(d)(2)
Pub. L. 96–222 struck out “in the case of a corporation,” before “the $10,000 amount”
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 96–222 struck out “in the case of a corporation,” before “the $10,000 amount”.Enacted provision · exact public law section
(iii) Paragraph (2) of section 443(d) (relating to adjustment 26 USC 443. in computing minimum tax for tax preferences) is amended by striking out “in the case of a corporation,”.Pub. L. 96–589 § 3(d) · 94 Stat. 3389
Inserted · 26 U.S.C. § 443(e)
Pub. L. 96–589 inserted cross reference to section 1398(d)(3)(E) for returns for a period of less than 12 months in the case of a debtor’s election to terminate a taxable year
Source evidence
Code amendment note
Subsec. (e). Pub. L. 96–589 inserted cross reference to section 1398(d)(3)(E) for returns for a period of less than 12 months in the case of a debtor’s election to terminate a taxable year.Enacted provision · exact public law section
(d) Technical Amendment.— Subsection (e) of section 443 (relating 26 USC 443. to cross references) is amended by adding at the end thereof the following new sentence: “For returns for a period of less than 12 months in the case of a debtor’s election to terminate a taxable year, see section 1398(d)(3)(E).”Pub. L. 97–448 title III § 304(a) · 96 Stat. 2365
Substituted · 26 U.S.C. § 443(e)
Pub. L. 97–448 substituted “section 1398(d)(2)(E)” for “section 1398(d)(3)(E)”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 97–448 substituted “section 1398(d)(2)(E)” for “section 1398(d)(3)(E)”.Enacted provision · exact public law section
(a) Correction of Clerical Error Relating to Cross Reference.— The last sentence of subsection (e) of section 443 (relating to returns for a period of less than 12 months) is amended by striking out “section 1398(d)(3)(E)” and inserting in lieu thereof “section 1398(d)(2)(E)”.Tax Reform Act of 1986
Pub. L. 99–514 § 104(b)(7)(A) · 100 Stat. 2085
Struck · 26 U.S.C. § 443(b)(1)
Pub. L. 99–514, § 104(b)(7)(A), struck out “, and adding the zero bracket amount” after “by the number of months in the short period”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 99–514, § 104(b)(7)(A), struck out “, and adding the zero bracket amount” after “by the number of months in the short period”.Enacted provision · exact public law section
(A) Paragraph (1) of section 443(b) (relating to computation of tax on change of annual accounting period) is amended by striking out “, and adding the zero bracket amount”.Tax Reform Act of 1986
Pub. L. 99–514 § 104(b)(7)(B) · 100 Stat. 2085
Amended · 26 U.S.C. § 443(b)(2)(A)(ii)
Pub. L. 99–514, § 104(b)(7)(B), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the tax computed on the sum of the modified taxable income for the short period plus the zero bracket amount.”
Source evidence
Code amendment note
Subsec. (b)(2)(A)(ii). Pub. L. 99–514, § 104(b)(7)(B), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the tax computed on the sum of the modified taxable income for the short period plus the zero bracket amount.”Enacted provision · exact public law section
(B) Clause (ii) of section 443(b)(2)(A) (relating to computation based on 12-month period) is amended to read as follows: “(ii) the tax computed on the modified taxable income for the short period.”Tax Reform Act of 1986
Pub. L. 99–514 § 701(e)(3) · 100 Stat. 2085
Substituted · 26 U.S.C. § 443(d)
Pub. L. 99–514, § 701(e)(3), substituted “and tax preferences” for “for tax preferences” in heading
Amended · 26 U.S.C. § 443(d)
Pub. L. 99–514, § 701(e)(3), amended text generally. Prior to amendment, subsec. (d) read as follows: “If a return is made for a short period by reason of subsection (a), then—
Source evidence
Code amendment note
Subsec. (d). Pub. L. 99–514, § 701(e)(3), substituted “and tax preferences” for “for tax preferences” in heading and amended text generally. Prior to amendment, subsec. (d) read as follows: “If a return is made for a short period by reason of subsection (a), then—“(1) in the case of a taxpayer other than a corporation, the alternative minimum taxable income for the short period shall be placed on an annual basis by multiplying that amount by 12 and dividing the result by the number of months in the short period, and the amount computed under paragraph (1) of section 55(a) shall be the same part of the tax computed on the annual basis as the number of months in the short period is of 12 months; and “(2) the $10,000 amount specified in section 56 (relating to minimum tax for tax preferences), modified as provided by section 58, shall be reduced to the amount which bears the same ratio to such specified amount as the number of days in the short period bears to 365.”
Enacted provision · exact public law section
(3) Treatment of short taxable years.— Subsection (d) of section 443 (relating to adjustment in computing minimum tax for tax preference) is amended to read as follows: “(d) Adjustment in Computing Minimum Tax and Tax Preferences.— If a return is made for a short period by reason of subsection (a)— “(1) the alternative minimum taxable income for the short period shall be placed on an annual basis by multiplying such amount by 12 and dividing the result by the number of months in the short period, and “(2) the amount computed under paragraph (1) of section 55(a) shall bear the same relation to the tax computed on the annual basis as the number of months in the short period bears to 12.”Pub. L. 108–357 title IV § 413(c)(6) · 118 Stat. 1418
Redesignated · 26 U.S.C. § 443(e)(3)(5)
Pub. L. 108–357 redesignated pars. (4) and (5) as (3) and (4), respectively
Struck · 26 U.S.C. § 443(e)(3)(5)
Pub. L. 108–357 struck out former par. (3) which read as follows: “Undistributed foreign personal holding company income, see section 557.”
Source evidence
Code amendment note
Subsec. (e)(3) to (5). Pub. L. 108–357 redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) which read as follows: “Undistributed foreign personal holding company income, see section 557.”Enacted provision · exact public law section
(6) Subsection (e) of section 443 is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.Effective date note
Amendment by Pub. L. 108–357 applicable to taxable years of foreign corporations beginning after Dec. 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end, see section 413(d)(1) of Pub. L. 108–357, set out as an Effective and Termination Dates of 2004 Amendments note under section 1 of this title.
26 of 27 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1960–2004 · 9 rounds
2004
Subsec. (e)(3) to (5). Pub. L. 108–357 redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) which read as follows: “Undistributed foreign personal holding company income, see section 557.”
1986
Subsec. (b)(1). Pub. L. 99–514, § 104(b)(7)(A), struck out “, and adding the zero bracket amount” after “by the number of months in the short period”.
Subsec. (b)(2)(A)(ii). Pub. L. 99–514, § 104(b)(7)(B), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the tax computed on the sum of the modified taxable income for the short period plus the zero bracket amount.”
Subsec. (d). Pub. L. 99–514, § 701(e)(3), substituted “and tax preferences” for “for tax preferences” in heading and amended text generally. Prior to amendment, subsec. (d) read as follows: “If a return is made for a short period by reason of subsection (a), then—
“(1) in the case of a taxpayer other than a corporation, the alternative minimum taxable income for the short period shall be placed on an annual basis by multiplying that amount by 12 and dividing the result by the number of months in the short period, and the amount computed under paragraph (1) of section 55(a) shall be the same part of the tax computed on the annual basis as the number of months in the short period is of 12 months; and
“(2) the $10,000 amount specified in section 56 (relating to minimum tax for tax preferences), modified as provided by section 58, shall be reduced to the amount which bears the same ratio to such specified amount as the number of days in the short period bears to 365.”
1983
Subsec. (e). Pub. L. 97–448 substituted “section 1398(d)(2)(E)” for “section 1398(d)(3)(E)”.
1980
Subsec. (d)(2). Pub. L. 96–222 struck out “in the case of a corporation,” before “the $10,000 amount”.
Subsec. (e). Pub. L. 96–589 inserted cross reference to section 1398(d)(3)(E) for returns for a period of less than 12 months in the case of a debtor’s election to terminate a taxable year.
1978
Subsec. (b)(1). Pub. L. 95–600, § 703(o)(2), substituted “modified taxable income for such short period” for “gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions)”.
Subsec. (b)(2). Pub. L. 95–600, § 703(o)(1), substituted in cl. (i) “modified taxable income” for “taxable income” in two places and in cl. (ii) “the sum of the modified taxable income” for “the taxable income” and “plus the zero bracket amount” for “without placing the taxable income on an annual basis”.
Subsec. (b)(3). Pub. L. 95–600, § 703(o)(3), added par. (3).
Subsec. (d). Pub. L. 95–600, § 421(e)(2), substituted “Adjustment in computing minimum tax for tax preferences” for “Adjustment in exclusion for computing minimum tax for tax preferences” in heading, redesignated existing provisions as par. (2) and as so redesignated applied par. (2) to corporations, and added par. (1).
1977
Subsec. (b)(1). Pub. L. 95–30 substituted “multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions) by 12, dividing the result by the number of months in the short period, and adding the zero bracket amount” for “multiplying such income by 12, and dividing the result by the number of months in the short period”.
1976
Subsec. (a)(1). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (a)(3). Pub. L. 94–455, § 1204(c)(2), struck out par. (3) which made termination of taxpayer’s taxable year under section 6851 as one of the circumstances under which a tax return for a period of less than 12 months shall be made.
Subsec. (b)(2)(D). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (d). Pub. L. 94–455, § 301(e), substituted “$10,000” for “$30,000”.
Subsec. (e)(5). Pub. L. 94–455, § 1607(b)(1)(C), substituted “section 857(b)(2)(C)” for “section 857(b)(2)(D)”.
1969
Subsecs. (d), (e). Pub. L. 91–172 added subsec. (d) and redesignated former subsec. (d) as (e).
1960
Subsec. (d)(5). Pub. L. 86–779 added par. (5).
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Amendment by Pub. L. 108–357 applicable to taxable years of foreign corporations beginning after , and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end, see section 413(d)(1) of Pub. L. 108–357, set out as an Effective and Termination Dates of 2004 Amendments note under section 1 of this title.
Effective Date of 1986 Amendment
Amendment by section 104(b)(7) of Pub. L. 99–514 applicable to taxable years beginning after , see section 151(a) of Pub. L. 99–514, set out as a note under section 1 of this title.
Amendment by section 701(e)(3) of Pub. L. 99–514 applicable to taxable years beginning after , with certain exceptions and qualifications, see section 701(f) of Pub. L. 99–514, set out as an Effective Date note under section 55 of this title.
Effective Date of 1983 Amendment
Pub. L. 97–448, title III, § 311(b)(1), , 96 Stat. 2411, provided that: “The amendment made by subsection (a) of section 304 [amending this section] shall take effect as if included in the amendments made by section 3 of the Bankruptcy Tax Act of 1980 [section 3 of Pub. L. 96–589, which amended this section and sections 6012 and 6103 of this title].”
Effective Date of 1980 Amendment
Amendment by Pub. L. 96–589 applicable to bankruptcy cases commencing more than 90 days after , see section 7(b) of Pub. L. 96–589, set out as a note under section 108 of this title.
Amendment by Pub. L. 96–222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Pub. L. 95–600, to which such amendment relates, see section 201 of Pub. L. 96–222, set out as a note under section 32 of this title.
Effective Date of 1978 Amendment
Pub. L. 95–600, title VII, § 703(o)(4), , 92 Stat. 2943, provided that: “The amendments made by this subsection [amending this section] shall apply to taxable years beginning after .”
Amendment by section 421(e)(2) of Pub. L. 95–600 applicable to taxable years beginning after , see section 421(g) of Pub. L. 95–600, set out as a note under section 5 of this title.
Effective Date of 1977 Amendment
Amendment by Pub. L. 95–30 applicable to taxable years beginning after , see section 106(a) of Pub. L. 95–30, set out as a note under section 1 of this title.
Effective Date of 1976 Amendment
Pub. L. 94–455, title III, § 301(g)(1), , 90 Stat. 1553, provided that the amendment made by section 301(e) of Pub. L. 94–455 is effective for items of tax preferences for taxable years beginning after , with certain exceptions.
Amendment by section 1204(c)(2) of Pub. L. 94–455 effective with respect to action taken under section 6851, 6861, or 6862 of this title where the notice and demand takes place after , see section 1204(d) of Pub. L. 94–455, as amended, set out as a note under section 6851 of this title.
For effective date of amendment by section 1607(b)(1)(C) of Pub. L. 94–455, see section 1608(c) of Pub. L. 94–455, set out as a note under section 857 of this title.
Effective Date of 1969 Amendment
Amendment by Pub. L. 91–172 applicable to taxable years ending after , see section 301(c) of Pub. L. 91–172, set out as a note under section 5 of this title.
Effective Date of 1960 Amendment
Amendment by Pub. L. 86–779 applicable with respect to taxable years of real estate investment trusts beginning after , see section 10(k) of Pub. L. 86–779, set out as an Effective Date note under section 856 of this title.
Applicability of Certain Amendments by Pub. L. 99–514 in Relation to Treaty Obligations of United States
For applicability of amendment by section 701(e)(3) of Pub. L. 99–514 notwithstanding any treaty obligation of the United States in effect on , see section 1012(aa)(2) of Pub. L. 100–647, set out as a note under section 861 of this title.
Credits
1954–2004 · 11 acts
- 1954Aug. 16, 1954, ch. 736, 68A Stat. 149
- 1960Pub. L. 86–779, § 10(i), , 74 Stat. 1009
- 1969Pub. L. 91–172, title III, § 301(b)(6), , 83 Stat. 585
- 1976Pub. L. 94–455, title III, § 301(e), title XII, § 1204(c)(2), title XVI, § 1607(b)(1)(C), title XIX, § 1906(b)(13)(A), , 90 Stat. 1553, 1697, 1757, 1834
- 1977Pub. L. 95–30, title I, § 102(b)(6), , 91 Stat. 137
- 1978Pub. L. 95–600, title IV, § 421(e)(2), title VII, § 703(o)(1)–(3), , 92 Stat. 2876, 2943
- 1980Pub. L. 96–222, title I, § 104(a)(4)(H)(iii), , 94 Stat. 217
- 1980Pub. L. 96–589, § 3(d), , 94 Stat. 3401
- 1983Pub. L. 97–448, title III, § 304(a), , 96 Stat. 2398
- 1986Pub. L. 99–514, title I, § 104(b)(7), title VII, § 701(e)(3), , 100 Stat. 2105, 2342
- 2004Pub. L. 108–357, title IV, § 413(c)(6), , 118 Stat. 1507.
Show as published
(Aug. 16, 1954, ch. 736, 68A Stat. 149; Pub. L. 86–779, § 10(i), , 74 Stat. 1009; Pub. L. 91–172, title III, § 301(b)(6), , 83 Stat. 585; Pub. L. 94–455, title III, § 301(e), title XII, § 1204(c)(2), title XVI, § 1607(b)(1)(C), title XIX, § 1906(b)(13)(A), , 90 Stat. 1553, 1697, 1757, 1834; Pub. L. 95–30, title I, § 102(b)(6), , 91 Stat. 137; Pub. L. 95–600, title IV, § 421(e)(2), title VII, § 703(o)(1)–(3), , 92 Stat. 2876, 2943; Pub. L. 96–222, title I, § 104(a)(4)(H)(iii), , 94 Stat. 217; Pub. L. 96–589, § 3(d), , 94 Stat. 3401; Pub. L. 97–448, title III, § 304(a), , 96 Stat. 2398; Pub. L. 99–514, title I, § 104(b)(7), title VII, § 701(e)(3), , 100 Stat. 2105, 2342; Pub. L. 108–357, title IV, § 413(c)(6), , 118 Stat. 1507.)