§ 444. Election of taxable year other than required taxable year

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.

1. 1987

   Pub. L. 100–203 title X § 10206(a)(1) · 101 Stat. 1330

   Enacted · 26 U.S.C. § 444

   Added Pub. L. 100–203, title X, § 10206(a)(1), Dec. 22, 1987, 101 Stat. 1330–397

   Source evidence

   Code source credit
   Added Pub. L. 100–203, title X, § 10206(a)(1), Dec. 22, 1987, 101 Stat. 1330–397

   Enacted provision · exact public law section
   (1) In general.— Part I of subchapter E of chapter 1 (relating to accounting periods) is amended by adding at the end thereof the following new section:109109 Copy read “section.”. “SEC. 444. ELECTION OF TAXABLE YEAR OTHER THAN REQUIRED TAXABLE YEAR. “(a) General Rule.— Except as provided in subsections (b) and (c), a partnership, S corporation, or personal service corporation may elect to have a taxable year other than the required taxable year. “(b) Limitations on Taxable Years Which May Be Elected.— “(1) In general.— Except as provided in paragraphs (2) and (3), an election may be made under subsection (a) only if the deferral period of the taxable year elected is not longer than 3 months. “(2) Changes in taxable year.— Except as provided in paragraph (3), in the case of an entity changing a taxable year, an election may be made under subsection (a) only if the deferral period of the taxable year elected is not longer than the shorter of— “(A) 3 months, or “(B) the deferral period of the taxable year which is being changed. “(3) Special rule for entities retaining 1986 taxable years.— In the case of an entity’s 1st taxable year beginning after December 31, 1986, an entity may elect a taxable year under subsection (a) which is the same as the entity’s last taxable year beginning in 1986. “(4) Deferral period.— For purposes of this subsection, the term ‘deferral period’ means, with respect to any taxable year of the entity, the months between— “(A) the beginning of such year, and “(B) the close of the 1st required taxable year ending within such year. “(c) Effect of Election.— If an entity makes an election under subsection (a), then— “(1) in the case of a partnership or S corporation, such entity shall make the payments required by section 7519, and “(2) in the case of a personal service corporation, such corporation shall be subject to the deduction limitations of section 280H. “(d) Elections.— “(1) Person making election.— An election under subsection (a) shall be made by the partnership, S corporation, or personal service corporation. “(2) Period of election.— “(A) In general.— Any election under subsection (a) shall remain in effect until the partnership, S corporation, or personal service corporation changes its taxable year. Any change to a required taxable year may be made without the consent of the Secretary. “(B) No further election.— If an election is terminated under subparagraph (A), the partnership, S corporation, or personal service corporation may not make another election under subsection (a). “(3) Tiered structures, etc.— No election may be made under subsection (a) with respect to an entity which is part of a tiered structure other than a tiered structure comprised of 1 or more partnerships or S corporations all of which have the same taxable year. “(e) Required Taxable Year.— For purposes of this section, the term ‘required taxable year’ means the taxable year determined under section 706(b), 1378, or 44l(i) without taking into account any taxable year which is allowable by reason of business purposes. Solely for purposes of the preceding sentence, sections 706(b), 1378, and 441(i) shall be treated as in effect for taxable years beginning before January 1, 1987. “(f) Regulations.— The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section, including regulations to prevent the avoidance of subsection (h)(2)(B) or (d)(2)(B) through the change in form of an entity.”

   Effective date note
   Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

2. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 2004(e)(1)(A) · 102 Stat. 3342

   Substituted · 26 U.S.C. § 444(a)

   Pub. L. 100–647, § 2004(e)(1)(A), substituted “as otherwise provided in this section” for “as provided in subsections (b) and (c)”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 100–647, § 2004(e)(1)(A), substituted “as otherwise provided in this section” for “as provided in subsections (b) and (c)”.

   Enacted provision · exact public law section
   (A) Subsection (a) of section 444 of the 1986 Code is amended by striking out “as provided in subsections (b) and (c)” and inserting in lieu thereof “as otherwise provided in this section”,

   Effective date note
   Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

3. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 2004(e)(13) · 102 Stat. 3342

   Inserted · 26 U.S.C. § 444(b)(4)

   Pub. L. 100–647, § 2004(e)(13), inserted “except as provided in regulations,” before “the term”

   Source evidence

   Code amendment note
   Subsec. (b)(4). Pub. L. 100–647, § 2004(e)(13), inserted “except as provided in regulations,” before “the term”.

   Enacted provision · exact public law section
   (13) Paragraph (4) of section 444(b) of the 1986 Code is amended by striking out “the term” and inserting in lieu thereof “except as provided in regulations, the term”.

   Effective date note
   Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

4. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 2004(e)(12) · 102 Stat. 3342

   Inserted · 26 U.S.C. § 444(d)(2)(A)

   Pub. L. 100–647, § 2004(e)(12), inserted “or otherwise terminates such election” after “its taxable year”

   Source evidence

   Code amendment note
   Subsec. (d)(2)(A). Pub. L. 100–647, § 2004(e)(12), inserted “or otherwise terminates such election” after “its taxable year”.

   Enacted provision · exact public law section
   (12) Subparagraph (A) of section 444(d)(2) of the 1986 Code is amended by inserting “or otherwise terminates such election” before the period at the end of the first sentence thereof.

   Effective date note
   Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

5. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 2004(e)(1)(C) · 102 Stat. 3342

   Inserted · 26 U.S.C. § 444(d)(2)(B)

   Pub. L. 100–647, § 2004(e)(1)(C), inserted “or paragraph (3)(A)” after “under subparagraph (A)”

   Source evidence

   Code amendment note
   Subsec. (d)(2)(B). Pub. L. 100–647, § 2004(e)(1)(C), inserted “or paragraph (3)(A)” after “under subparagraph (A)”.

   Enacted provision · exact public law section
   (C) Subparagraph (B) of section 444(d)(2) of the 1986 Code is amended by striking out “under subparagraph (A)” and inserting in lieu thereof “under subparagraph (A) or paragraph (3)(A)”.

   Effective date note
   Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

6. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 2004(e)(1)(B) · 102 Stat. 3342

   Amended · 26 U.S.C. § 444(d)(3)

   Pub. L. 100–647, § 2004(e)(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “No election may be made under subsection (a) with respect to an entity which is part of a tiered structure other than a tiered structure comprised of 1 or more partnerships or S corporations all of which have the same taxable year.”

   Source evidence

   Code amendment note
   Subsec. (d)(3). Pub. L. 100–647, § 2004(e)(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “No election may be made under subsection (a) with respect to an entity which is part of a tiered structure other than a tiered structure comprised of 1 or more partnerships or S corporations all of which have the same taxable year.”

   Enacted provision · exact public law section
   (B) Paragraph (3) of section 444(d) of the 1986 Code is amended to read as follows: “(3) Tiered structures, etc.— “(A) In general.— Except as otherwise provided in this paragraph— “(i) no election may be under subsection (a) with respect to any entity which is part of a tiered structure, and “(ii) an election under subsection (a) with respect to any entity shall be terminated if such entity becomes part of a tiered structure. “(B) Exceptions for structures consisting of certain entities with same taxable year.— Subparagraph (A) shall not apply to any tiered structure which consists only of partnerships or S corporations (or both) all of which have the same taxable year.”

   Effective date note
   Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

7. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 2004(e)(2)(A) · 102 Stat. 3342

   1. Added · 26 U.S.C. § 444(f); 26 U.S.C. § 444(g)

      Pub. L. 100–647, § 2004(e)(2)(A), added subsec. (f)

   2. Redesignated · 26 U.S.C. § 444(f); 26 U.S.C. § 444(g)

      Pub. L. 100–647, § 2004(e)(2)(A), redesignated former subsec. (f) as (g)

   Source evidence

   Code amendment note
   Subsecs. (f), (g). Pub. L. 100–647, § 2004(e)(2)(A), added subsec. (f) and redesignated former subsec. (f) as (g).

   Enacted provision · exact public law section
   (A) Section 444 of the 1986 Code is amended by redesignating subsection (f) as subsection (g) and inserting after subsection (e) the following new subsection: “(f) Personal Service Corporation.— For purposes of this section, the term ‘personal service corporation’ has the meaning given to such term by section 441(1)(2).”

   Effective date note
   Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

8 of 8 references resolved to an enrolled provision