Title 26 — Internal Revenue Code
Part III · Chapter 1 — Normal Taxes and Surtaxes
§ 959. Exclusion from gross income of previously taxed earnings and profits
Statutory text
Exclusion from gross income of United States persons
For purposes of this chapter, the earnings and profits of a foreign corporation attributable to amounts which are, or have been, included in the gross income of a United States shareholder under section 951(a) shall not, when—
such amounts are distributed to, or
such amounts would, but for this subsection, be included under section 951(a)(1)(B) in the gross income of,
such shareholder (or any other United States person who acquires from any person any portion of the interest of such United States shareholder in such foreign corporation, but only to the extent of such portion, and subject to such proof of the identity of such interest as the Secretary may by regulations prescribe) directly or indirectly through a chain of ownership described under section 958(a), be again included in the gross income of such United States shareholder (or of such other United States person). The rules of subsection (c) shall apply for purposes of paragraph (1) of this subsection and the rules of subsection (f) shall apply for purposes of paragraph (2) of this subsection.
Exclusion from gross income of certain foreign subsidiaries
For purposes of section 951(a), the earnings and profits of a controlled foreign corporation attributable to amounts which are, or have been, included in the gross income of a United States shareholder under section 951(a), shall not, when distributed through a chain of ownership described under section 958(a), be also included in the gross income of another controlled foreign corporation in such chain for purposes of the application of section 951(a) to such other controlled foreign corporation with respect to such United States shareholder (or to any other United States shareholder who acquires from any person any portion of the interest of such United States shareholder in the controlled foreign corporation, but only to the extent of such portion, and subject to such proof of identity of such interest as the Secretary may prescribe by regulations).
Allocation of distributions
For purposes of subsections (a) and (b), section 316(a) shall be applied by applying paragraph (2) thereof, and then paragraph (1) thereof—
first to the aggregate of—
earnings and profits attributable to amounts included in gross income under section 951(a)(1)(B) (or which would have been included except for subsection (a)(2) of this section), and
earnings and profits attributable to amounts included in gross income under section 951(a)(1)(C) (or which would have been included except for subsection (a)(3) of this section),
with any distribution being allocated between earnings and profits described in subparagraph (A) and earnings and profits described in subparagraph (B) proportionately on the basis of the respective amounts of such earnings and profits,
then to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(A) (but reduced by amounts not included under subparagraph (B) or (C) of section 951(a)(1) because of the exclusions in paragraphs (2) and (3) of subsection (a) of this section), and
then to other earnings and profits.
References in this subsection to section 951(a)(1)(C) and subsection (a)(3) shall be treated as references to such provisions as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996.
Distributions excluded from gross income not to be treated as dividends
Any distribution excluded from gross income under subsection (a) shall be treated, for purposes of this chapter, as a distribution which is not a dividend; except that such distributions shall immediately reduce earnings and profits.
Coordination with amounts previously taxed under section 1248
For purposes of this section and section 960(c), any amount included in the gross income of any person as a dividend by reason of subsection (a) or (f) of section 1248 shall be treated as an amount included in the gross income of such person (or, in any case to which section 1248(e) applies, of the domestic corporation referred to in section 1248(e)(2)) under section 951(a)(1)(A).
Allocation rules for certain inclusions
In general
For purposes of this section, amounts that would be included under subparagraph (B) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2), and then to earnings described in subsection (c)(3).
Treatment of distributions
In applying this section, actual distributions shall be taken into account before amounts that would be included under section 951(a)(1)(B) (determined without regard to this section).
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.
Revenue Act of 1962
Pub. L. 87–834 § 12(a) · 76 Stat. 960
Enacted · 26 U.S.C. § 959
Added Pub. L. 87–834, § 12(a), Oct. 16, 1962, 76 Stat. 1019
Source evidence
Code source credit
Added Pub. L. 87–834, § 12(a), Oct. 16, 1962, 76 Stat. 1019Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 959(a); 26 U.S.C. § 959(b)
Pub. L. 94–455 struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsecs. (a), (b). Pub. L. 94–455 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”.Tax Reform Act of 1984
Pub. L. 98–369 div. A title I § 133(b)(1) · 98 Stat. 494
Added · 26 U.S.C. § 959(e)
Pub. L. 98–369 added subsec. (e)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 98–369 added subsec. (e).Enacted provision · exact public law section
(1) Section 959 (relating to exclusion from gross income of previously taxed earnings and profits) is amended by adding at the end thereof the following new subsection: “(e) Coordination With Amounts Previously Taxed Under Section 1248.— For purposes of this section and section 960(b), any amount included in the gross income of any person as a dividend by reason of subsection (a) or (f) of section 1248 shall be treated as an amount included in the gross income of such person under section 951(a)(1)(A).”Tax Reform Act of 1986
Pub. L. 99–514 title XII § 1226(b) · 100 Stat. 2085
Inserted · 26 U.S.C. § 959(d)
Pub. L. 99–514 inserted “; except that such distributions shall immediately reduce earnings and profits”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 99–514 inserted “; except that such distributions shall immediately reduce earnings and profits”.Enacted provision · exact public law section
(b) Technical Amendment.— Subsection (d) of section 959 is amended by striking out the period at the end thereof and inserting in lieu thereof except that such distributions shall immediately reduce earnings and profits.”Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 title I § 1012(bb)(7)(A) · 102 Stat. 3342
Substituted · 26 U.S.C. § 959(e)
Pub. L. 100–647 substituted “such person (or, in any case to which section 1248(e) applies, of the domestic corporation referred to in section 1248(e)(2)) under” for “such person under”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 100–647 substituted “such person (or, in any case to which section 1248(e) applies, of the domestic corporation referred to in section 1248(e)(2)) under” for “such person under”.Enacted provision · exact public law section
(A) In general.— Subsection (e) of section 959 of the 1986 Code is amended by striking out “such person under” and inserting in lieu thereof “such person (or, in any case to which section 1248(e) applies, of the domestic corporation referred to in section 1248(e)(2)) under”.Revenue Reconciliation Act of 1993
Pub. L. 103–66 § 13231(c)(2)(A) · 107 Stat. 312
Substituted · 26 U.S.C. § 959(a)
Pub. L. 103–66, § 13231(c)(2)(A), (4)(A), substituted in introductory provisions “earnings and profits” for “earnings and profits for taxable year”
Inserted · 26 U.S.C. § 959(a)
Pub. L. 103–66, § 13231(c)(2)(A), (4)(A), inserted at end of closing provisions “The rules of subsection (c) shall apply for purposes of paragraph (1) of this subsection and the rules of subsection (f) shall apply for purposes of paragraphs (2) and (3) of this subsection.”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 103–66, § 13231(c)(2)(A), (4)(A), substituted in introductory provisions “earnings and profits” for “earnings and profits for taxable year” and inserted at end of closing provisions “The rules of subsection (c) shall apply for purposes of paragraph (1) of this subsection and the rules of subsection (f) shall apply for purposes of paragraphs (2) and (3) of this subsection.”Enacted provision · exact public law section
(A) Subsection (a) of section 959 is amended by adding 26 USC 959. at the end thereof the following new sentence: “The rules of subsection (c) shall apply for purposes of paragraph (1) of this subsection and the rules of subsection (0 shall apply for purposes of paragraphs (2) and (3) of this subsection.”.Revenue Reconciliation Act of 1993
Pub. L. 103–66 § 13231(c)(1) · 107 Stat. 312
Added · 26 U.S.C. § 959(a)(3)
Pub. L. 103–66, § 13231(c)(1), added par. (3)
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 103–66, § 13231(c)(1), added par. (3).Enacted provision · exact public law section
(1) In general.— Subsection (a) of section 959 (relating to exclusion from gross income of previously taxed earnings and profits) is amended by striking “or” at the end of paragraph (1), by adding “or” at the end of paragraph (2), and by inserting after paragraph (2) the following new paragraph: “(3) such amounts would, but for this subsection, be included under section 951(a)(1)(C) in the gross income of,”.Revenue Reconciliation Act of 1993
Pub. L. 103–66 § 13231(c)(4)(A) · 107 Stat. 312
Substituted · 26 U.S.C. § 959(b)
Pub. L. 103–66, § 13231(c)(4)(A), substituted “earnings and profits” for “earnings and profits for a taxable year”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 103–66, § 13231(c)(4)(A), substituted “earnings and profits” for “earnings and profits for a taxable year”.Enacted provision · exact public law section
(A) Subsections (a) and (b) of section 959 are each amended by striking “earnings and profits for a taxable year” and inserting “earnings and profits”.Revenue Reconciliation Act of 1993
Pub. L. 103–66 § 13231(c)(2)(C) · 107 Stat. 312
Amended · 26 U.S.C. § 959(c)(1)
Pub. L. 103–66, § 13231(c)(2)(C), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “first to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(B) (or which would have been included except for subsection (a)(2) of this section),”
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 103–66, § 13231(c)(2)(C), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “first to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(B) (or which would have been included except for subsection (a)(2) of this section),”.Enacted provision · exact public law section
(C) Paragraph (1) of section 959(c) is amended to read as follows: “(1) first to the aggregate of— “(A) earnings and profits attributable to amounts included in gross income under section 951(a)(1)(B) (or which would have been included except for subsection (a)(2) of this section), and “(B) earnings and profits attributable to amounts included in gross income under section 951(a)(1)(C) (or which would have been included except for subsection (a)(3) of this section), with any distribution being allocated between earnings and profits described in subparagraph (A) and earnings and profits described in subparagraph (B) proportionately on the basis of the respective amounts of such earnings and profits,”.Revenue Reconciliation Act of 1993
Pub. L. 103–66 § 13231(c)(4)(B) · 107 Stat. 312
Amended · 26 U.S.C. § 959(c)(2)
Pub. L. 103–66, § 13231(c)(4)(B), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “then to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(A) (but reduced by amounts not included under section 951(a)(1)(B) because of the exclusion in subsection (a)(2) of this section), and”
Source evidence
Code amendment note
Subsec. (c)(2). Pub. L. 103–66, § 13231(c)(4)(B), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “then to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(A) (but reduced by amounts not included under section 951(a)(1)(B) because of the exclusion in subsection (a)(2) of this section), and”.Enacted provision · exact public law section
(B) Paragraph (2) of section 959(c) is amended to read as follows: “(2) then to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(A) (but reduced by amounts not included under subparagraph (B) or (C) of section 951(a)(1) because of the exclusions in paragraphs (2) and (3) of subsection (a) of this section), and”Revenue Reconciliation Act of 1993
Pub. L. 103–66 § 13231(c)(2)(B) · 107 Stat. 312
Added · 26 U.S.C. § 959(f)
Pub. L. 103–66, § 13231(c)(2)(B), added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 103–66, § 13231(c)(2)(B), added subsec. (f).Enacted provision · exact public law section
(B) 26 USC 959. Section 959 is amended by adding at the end thereof the following new subsection: “(f) Allocation Rules for Certain Inclusions.— “(1) In general.— For purposes of this section— “(A) amounts that would be included under subparagraph (B) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2), and then to earnings described in subsection (c)(3), and “(B) amounts that would be included under subparagraph (C) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2) to the extent the earnings so described were accumulated in taxable years beginning after September 30, 1993, and then to earnings described in subsection (c)(3). “(2) Treatment of distributions.— In applying this section, actual distributions shall be taken into account before amounts that would be included under subparagraphs (B) and (C) of section 951(a)(1) (determined without regard to this section).”Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1501(b)(4) · 110 Stat. 1755
Substituted · 26 U.S.C. § 959(a)
Pub. L. 104–188, § 1501(b)(4), (5), substituted “paragraph (2)” for “paragraphs (2) and (3)” in closing provisions
Inserted · 26 U.S.C. § 959(a)
Pub. L. 104–188, § 1501(b)(4), (5), inserted “or” at end of par. (1)
Struck · 26 U.S.C. § 959(a)
Pub. L. 104–188, § 1501(b)(4), (5), struck out “or” at end of par. (2)
Struck · 26 U.S.C. § 959(a)
Pub. L. 104–188, § 1501(b)(4), (5), struck out par. (3) which read as follows: “such amounts would, but for this subsection, be included under section 951(a)(1)(C) in the gross income of,”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 104–188, § 1501(b)(4), (5), substituted “paragraph (2)” for “paragraphs (2) and (3)” in closing provisions, inserted “or” at end of par. (1), struck out “or” at end of par. (2), and struck out par. (3) which read as follows: “such amounts would, but for this subsection, be included under section 951(a)(1)(C) in the gross income of,”.Enacted provision · exact public law section
(4) Subsection (a) of section 959 (relating to exclusion from gross income of previously taxed earnings and profits) is amended by adding “or” at the end of paragraph (1), by striking “or” at the end of paragraph (2), and by striking paragraph (3).Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1501(b)(6) · 110 Stat. 1755
Inserted · 26 U.S.C. § 959(c)
Pub. L. 104–188, § 1501(b)(6), inserted at end “References in this subsection to section 951(a)(1)(C) and subsection (a)(3) shall be treated as references to such provisions as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996.”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 104–188, § 1501(b)(6), inserted at end “References in this subsection to section 951(a)(1)(C) and subsection (a)(3) shall be treated as references to such provisions as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996.”Enacted provision · exact public law section
(6) Subsection (c) of section 959 is amended by adding at the end the following flush sentence: “References in this subsection to section 951(a)(1)(C) and subsection (a)(3) shall be treated as references to such provisions as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996.”.Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1501(b)(7) · 110 Stat. 1755
Amended · 26 U.S.C. § 959(f)(1)
Pub. L. 104–188, § 1501(b)(7), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section—
Source evidence
Code amendment note
Subsec. (f)(1). Pub. L. 104–188, § 1501(b)(7), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section—“(A) amounts that would be included under subparagraph (B) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2), and then to earnings described in subsection (c)(3), and “(B) amounts that would be included under subparagraph (C) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2) to the extent the earnings so described were accumulated in taxable years beginning after September 30, 1993, and then to earnings described in subsection (c)(3).”
Enacted provision · exact public law section
(7) Paragraph (1) of section 959(1) is amended to read as follows: “(1) In general.— For purposes of this section, amounts that would be included under subparagraph (B) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2), and then to earnings described in subsection (c)(3).”.Small Business Job Protection Act of 1996
Pub. L. 104–188 § 1501(b)(8) · 110 Stat. 1755
Substituted · 26 U.S.C. § 959(f)(2)
Pub. L. 104–188, § 1501(b)(8), substituted “section 951(a)(1)(B)” for “subparagraphs (B) and (C) of section 951(a)(1)”
Source evidence
Code amendment note
Subsec. (f)(2). Pub. L. 104–188, § 1501(b)(8), substituted “section 951(a)(1)(B)” for “subparagraphs (B) and (C) of section 951(a)(1)”.Enacted provision · exact public law section
(8) Paragraph (2) of section 959(1) is amended by striking “subparagraphs (B) and (C) of section 951(a)(1)” and inserting “section 951(a)(1)(B)”.Pub. L. 115–97 § 14301(c)(32) · 131 Stat. 2054
Substituted · 26 U.S.C. § 959(d)
Pub. L. 115–97, § 14301(c)(32), substituted “Any” for “Except as provided in section 960(a)(3), any”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 115–97, § 14301(c)(32), substituted “Any” for “Except as provided in section 960(a)(3), any”.Enacted provision · exact public law section
(32) Section 959(d) is amended by striking “Except as provided in section 960(a)(3), any” and inserting “Any”.Effective date note
Amendment by Pub. L. 115–97 applicable to taxable years of foreign corporations beginning after Dec. 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14301(d) of Pub. L. 115–97, set out as a note under section 78 of this title.Pub. L. 115–97 § 14301(c)(33) · 131 Stat. 2054
Substituted · 26 U.S.C. § 959(e)
Pub. L. 115–97, § 14301(c)(33), substituted “section 960(c)” for “section 960(b)”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 115–97, § 14301(c)(33), substituted “section 960(c)” for “section 960(b)”.Enacted provision · exact public law section
(33) Section 959(e) is amended by striking “section 960(b)” and inserting “section 960(c)”.Effective date note
Amendment by Pub. L. 115–97 applicable to taxable years of foreign corporations beginning after Dec. 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14301(d) of Pub. L. 115–97, set out as a note under section 78 of this title.
20 of 21 references resolved to an enrolled provision · 1 partial
Editorial Notes
References in Text
The date of the enactment of the Small Business Job Protection Act of 1996, referred to in subsec. (c), is the date of enactment of Pub. L. 104–188, which was approved .
Amendments1976–2017 · 7 rounds
2017
Subsec. (d). Pub. L. 115–97, § 14301(c)(32), substituted “Any” for “Except as provided in section 960(a)(3), any”.
Subsec. (e). Pub. L. 115–97, § 14301(c)(33), substituted “section 960(c)” for “section 960(b)”.
1996
Subsec. (a). Pub. L. 104–188, § 1501(b)(4), (5), substituted “paragraph (2)” for “paragraphs (2) and (3)” in closing provisions, inserted “or” at end of par. (1), struck out “or” at end of par. (2), and struck out par. (3) which read as follows: “such amounts would, but for this subsection, be included under section 951(a)(1)(C) in the gross income of,”.
Subsec. (c). Pub. L. 104–188, § 1501(b)(6), inserted at end “References in this subsection to section 951(a)(1)(C) and subsection (a)(3) shall be treated as references to such provisions as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996.”
Subsec. (f)(1). Pub. L. 104–188, § 1501(b)(7), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section—
“(A) amounts that would be included under subparagraph (B) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2), and then to earnings described in subsection (c)(3), and
“(B) amounts that would be included under subparagraph (C) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2) to the extent the earnings so described were accumulated in taxable years beginning after , and then to earnings described in subsection (c)(3).”
Subsec. (f)(2). Pub. L. 104–188, § 1501(b)(8), substituted “section 951(a)(1)(B)” for “subparagraphs (B) and (C) of section 951(a)(1)”.
1993
Subsec. (a). Pub. L. 103–66, § 13231(c)(2)(A), (4)(A), substituted in introductory provisions “earnings and profits” for “earnings and profits for taxable year” and inserted at end of closing provisions “The rules of subsection (c) shall apply for purposes of paragraph (1) of this subsection and the rules of subsection (f) shall apply for purposes of paragraphs (2) and (3) of this subsection.”
Subsec. (a)(3). Pub. L. 103–66, § 13231(c)(1), added par. (3).
Subsec. (b). Pub. L. 103–66, § 13231(c)(4)(A), substituted “earnings and profits” for “earnings and profits for a taxable year”.
Subsec. (c)(1). Pub. L. 103–66, § 13231(c)(2)(C), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “first to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(B) (or which would have been included except for subsection (a)(2) of this section),”.
Subsec. (c)(2). Pub. L. 103–66, § 13231(c)(4)(B), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “then to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(A) (but reduced by amounts not included under section 951(a)(1)(B) because of the exclusion in subsection (a)(2) of this section), and”.
Subsec. (f). Pub. L. 103–66, § 13231(c)(2)(B), added subsec. (f).
1988
Subsec. (e). Pub. L. 100–647 substituted “such person (or, in any case to which section 1248(e) applies, of the domestic corporation referred to in section 1248(e)(2)) under” for “such person under”.
1986
Subsec. (d). Pub. L. 99–514 inserted “; except that such distributions shall immediately reduce earnings and profits”.
1984
Subsec. (e). Pub. L. 98–369 added subsec. (e).
1976
Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by Pub. L. 115–97 applicable to taxable years of foreign corporations beginning after , and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14301(d) of Pub. L. 115–97, set out as a note under section 78 of this title.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–188 applicable to taxable years of foreign corporations beginning after , and to taxable years of United States shareholders within which or with which such taxable years of foreign corporations end, see section 1501(d) of Pub. L. 104–188, set out as a note under section 904 of this title.
Effective Date of 1993 Amendment
Amendment by Pub. L. 103–66 applicable to taxable years of foreign corporations beginning after , and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 13231(e) of Pub. L. 103–66, set out as a note under section 951 of this title.
Effective Date of 1988 Amendment
Pub. L. 100–647, title I, § 1012(bb)(7)(B), , 102 Stat. 3536, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply in the case of transactions to which section 1248(e) of the 1986 Code applies and which occur after .”
Effective Date of 1986 Amendment
Pub. L. 99–514, title XII, § 1226(c)(2), , 100 Stat. 2560, provided that: “The amendment made by subsection (b) [amending this section] shall apply to distributions after the date of the enactment of this Act [].”
Effective Date of 1984 Amendment
Pub. L. 98–369, div. A, title I, § 133(d)(2), (3), , 98 Stat. 668, as amended by Pub. L. 99–514, § 2, title XVIII, § 1810(i)(2), , 100 Stat. 2095, 2829; Pub. L. 100–647, title I, § 1018(g)(2), , 102 Stat. 3582, provided that:
“(2) Subsections (b) and (c).—
Except as provided in paragraph (3), the amendments made by subsections (b) and (c) [amending this section and section 1248 of this title] shall apply with respect to transactions to which subsection (a) or (f) of section 1248 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] applies occurring after the date of the enactment of this Act [].
“(3) Election of earlier date for certain transactions.—
“(A) In general.—
If the appropriate election is made under subparagraph (B), the amendments made by subsection (b) [amending this section and section 1248 of this title] shall apply with respect to transactions to which subsection (a) or (f) of section 1248 of such Code applies occurring after .
“(B) Election.—
“(i) Subparagraph (A) shall apply with respect to transactions to which subsection (a) of section 1248 of such Code applies if the foreign corporation described in such subsection (or its successor in interest) so elects.
“(ii) Subparagraph (A) shall apply with respect to transactions to which subsection (f) of section 1248 of such Code applies if the domestic corporation described in section 1248(f)(1) of such Code (or its successor) so elects.
“(iii) Any election under clause (i) or (ii) shall be made not later than the date which is 1 year after the date of the enactment of the Tax Reform Act of 1986 [] and shall be made in such manner as the Secretary of the Treasury or his delegate shall prescribe.”
Credits
1962–2017 · 8 acts
- 1962Added Pub. L. 87–834, § 12(a), , 76 Stat. 1019
- 1976amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834
- 1984Pub. L. 98–369, div. A, title I, § 133(b)(1), , 98 Stat. 668
- 1986Pub. L. 99–514, title XII, § 1226(b), , 100 Stat. 2560
- 1988Pub. L. 100–647, title I, § 1012(bb)(7)(A), , 102 Stat. 3536
- 1993Pub. L. 103–66, title XIII, § 13231(c)(1), (2), (4)(A), (B), , 107 Stat. 497, 498
- 1996Pub. L. 104–188, title I, § 1501(b)(4)–(8), , 110 Stat. 1826
- 2017Pub. L. 115–97, title I, § 14301(c)(32), (33), , 131 Stat. 2224.
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(Added Pub. L. 87–834, § 12(a), , 76 Stat. 1019; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834; Pub. L. 98–369, div. A, title I, § 133(b)(1), , 98 Stat. 668; Pub. L. 99–514, title XII, § 1226(b), , 100 Stat. 2560; Pub. L. 100–647, title I, § 1012(bb)(7)(A), , 102 Stat. 3536; Pub. L. 103–66, title XIII, § 13231(c)(1), (2), (4)(A), (B), , 107 Stat. 497, 498; Pub. L. 104–188, title I, § 1501(b)(4)–(8), , 110 Stat. 1826; Pub. L. 115–97, title I, § 14301(c)(32), (33), , 131 Stat. 2224.)