Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_956
Timestamp: 2019-10-17 17:50:02
Document Index: 462983177

Matched Legal Cases: ['§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956', '§ 956']

Internal Revenue Code, § 956. Investment Of Earnings In United States Property
I.R.C. § 956(a) General Rule —
I.R.C. § 956(a)(1) —
I.R.C. § 956(a)(1)(A) —
such shareholder's pro rata share of the average of the amounts of United States property held (directly or indirectly) by the controlled foreign corporation as of the close of each quarter of such taxable year, over
I.R.C. § 956(a)(1)(B) —
I.R.C. § 956(a)(2) —
such shareholder's pro rata share of the applicable earnings of such controlled foreign corporation.
I.R.C. § 956(b) Special Rules
I.R.C. § 956(b)(1) Applicable Earnings —
I.R.C. § 956(b)(1)(A) —
the amount (not including a deficit) referred to in section 316(a)(1)to the extent such amount was accumulated in prior taxable years, and
I.R.C. § 956(b)(1)(B) —
I.R.C. § 956(b)(2) Special Rule For U.S. Property Acquired Before Corporation Is A Controlled Foreign Corporation —
I.R.C. § 956(b)(3) Special Rule Where Corporation Ceases To Be Controlled Foreign Corporation —
I.R.C. § 956(b)(3)(A) —
the determination of any United States shareholder's pro rata share shall be made on the basis of stock owned (within the meaning of section 958(a)) by such shareholder on the last day during the taxable year on which the foreign corporation is a controlled foreign corporation,
I.R.C. § 956(b)(3)(B) —
I.R.C. § 956(b)(3)(C) —
I.R.C. § 956(c) United States Property Defined
I.R.C. § 956(c)(1) In General —
I.R.C. § 956(c)(1)(A) —
I.R.C. § 956(c)(1)(B) —
I.R.C. § 956(c)(1)(C) —
I.R.C. § 956(c)(1)(D) —
any right to the use in the United States of--
I.R.C. § 956(c)(1)(D)(i) —
I.R.C. § 956(c)(1)(D)(ii) —
I.R.C. § 956(c)(1)(D)(iii) —
I.R.C. § 956(c)(1)(D)(iv) —
any other similar right, which is acquired or developed by the controlled foreign corporation for use in the United States.
I.R.C. § 956(c)(2) Exceptions —
I.R.C. § 956(c)(2)(A) —
obligations of the United States, money, or deposits with—
I.R.C. § 956(c)(2)(A)(i) —
I.R.C. § 956(c)(2)(A)(ii) —
I.R.C. § 956(c)(2)(B) —
I.R.C. § 956(c)(2)(C) —
I.R.C. § 956(c)(2)(D) —
I.R.C. § 956(c)(2)(E) —
an amount of assets of an insurance company equivalent to the unearned premiums or reserves ordinary and necessary for the proper conduct of its insurance business attributable to contracts which are contracts described in section 953(e)(2);
I.R.C. § 956(c)(2)(F) —
I.R.C. § 956(c)(2)(G) —
I.R.C. § 956(c)(2)(H) —
I.R.C. § 956(c)(2)(I) —
deposits of cash or securities made or received on commercial terms in the ordinary course of a United States or foreign person's business as a dealer in securities or in commodities, but only to the extent such deposits are made or received as collateral or margin for (i) a securities loan, notional principal contract, options contract, forward contract, or futures contract, or (ii) any other financial transaction in which the Secretary determines that it is customary to post collateral or margin;
I.R.C. § 956(c)(2)(J) —
I.R.C. § 956(c)(2)(K) —
securities acquired and held by a controlled foreign corporation in the ordinary course of its business as a dealer in securities if—
I.R.C. § 956(c)(2)(K)(i) —
I.R.C. § 956(c)(2)(K)(ii) —
I.R.C. § 956(c)(2)(L) —
an obligation of a United States person which—
I.R.C. § 956(c)(2)(L)(i) —
I.R.C. § 956(c)(2)(L)(ii) —
is not--
I.R.C. § 956(c)(2)(L)(ii)(I) —
I.R.C. § 956(c)(2)(L)(ii)(II) —
I.R.C. § 956(c)(3) Certain Trade Or Service Receivables Acquired From Related United States Persons
I.R.C. § 956(c)(3)(A) In General —
I.R.C. § 956(c)(3)(A)(i) —
I.R.C. § 956(c)(3)(A)(ii) —
I.R.C. § 956(c)(3)(B) Definitions —
I.R.C. § 956(d) Pledges And Guarantees —
I.R.C. § 956(e) Regulations —
(Added Pub. L. 87-834, 12(a), Oct. 16, 1962, 76 Stat. 1015, and amended Pub. L. 94-455, title X, 1021(a), title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1618, 1834; Pub. L. 98-369, div. A, title I, 123(b), title VIII, 801(d)(8), July 18, 1984, 98 Stat. 646, 996; Pub. L. 99-514, title XVIII, 1810(c)(1), Oct. 22, 1986, 100 Stat. 2824; Pub. L. 103-66, title XIII, Sec. 13232(a), (b), Aug. 10, 1993, 107 Stat. 312; Pub. L. 104-188, title I, Aug. 20, 1996, 110 Stat. 1755; Pub. L. 105-34, title XI, XVI, Sec. 1173(a), 1601(e), Aug. 5, 1997, 111 Stat 788; Pub. L. 108-357, title IV, VIII, Sec. 407(a), (b), 837(a), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 110-172, Sec. 11(g)(15)(A), Dec. 29, 2007, 121 Stat. 2473; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(162)-(163), Mar. 23, 2018, 132 Stat. 348.)
2018 — Subsec. (c)(2)(E). Pub. L. 115-141, Div. U, Sec. 401(a)(162), amended subpar. (E) by substituting “which are contracts described in section 953(e)(2)” for “which are not contracts described in section 953(a)(1)”.
Subsec. (e). Pub. L. 115-141, Div. U, Sec. 401(a)(163), amended par. (e) by substituting “provisions” for “provisons”.
2007 - Subsec. (c)(2)(I)-(M). Pub. L. 110-172, Sec. 11(g)(15)(A)(i), amended par. (2) by striking subpar. (I) and redesignating subpar. (J)-(M) as subpar. (I)-(L), respectively.
Subsec. (c)(2). Pub. L. 110-172, Sec. 11(g)(15)(A)(ii), amended par. (2) by substituting “subparagraphs (I), (J), and (K)” for “subparagraphs (J), (K), and (L)”.
2004 - Subsec. (c)(2)(A). Pub. L. 108-357, Sec. 837(a), amended subpar. (A). Before amendment it read as follows:
“(A) obligations of the United States, money, or deposits with persons carrying on the banking business;”.
Subsec. (c)(2). Pub. L. 108-357, Sec. 407(b), amended par. (2) by substituting “, (K), and (L)” for “and (K)” in the last sentence.
Subsec. (c)(2)(J)-(M). Pub. L. 108-357, Sec. 407(a), amended par. (2) by striking “and” at the end of subpar. (J); by inserting a semicolon for the period at the end of subpar. (K); and by adding subpar. (L) and (M).
1997--Subsec. (b)(1)(A). Pub. L. 105-34, Sec. 1601(e). Inserted “to the extent such amount was accumulated in prior taxable years" after “section 316(a)(1)” of subparagraph (A).
Subsec. (c)(2)(H(, (I). Pub. L. 105-34, Sec. 1173(a). Struck out “and” at the end of subparagraph (H), struck out the period at the end of subparagraph (I) and inserted a semicolon.
Subsec. (c)(2)(J), (K). Pub. L. 105-34, Sec. 1173(a). Added new subparagraphs (J) and (K) at the end of subparagraph (I).
1996--Subsec. (b)(1). Pub. L. 104-188, Sec. 1501(b), amended par. (1). Before amendment, par. (1) read as follows:
“(1) Applicable earnings. --
For purposes of this section, the term ‘applicable earnings’ has the meaning given to such term by section 956A(b), except that the provisions of such section excluding earnings and profits accumulated in taxable years beginning before October 1, 1993, shall be disregarded.”
Subsec. (b)(3). Pub. L. 104-188, Sec. 1501(b), amended par. (3). Before amendment, par. (3) read as follows:
“(3) Special rule where corporation ceases to be controlled foreign corporation.--Rules similar to the rules of section 956A(e) shall apply for purposes of this section.”
1993—Subsec. (a)-(d). Pub. L. 103-66, Sec. 13232(a), struck subsec. (a), redesignated subsec. (b) and (c) as subsec. (c) and (d), respectively, and added new subsec. (a) and (b). Before being struck, subsec. (a) read as follows:
“(a) General rules.—For purposes of this subpart--
“(1) Amount of investment.—The amount of earnings of a controlled foreign corporation invested in United States property at the close of any taxable year is the aggregate amount of such property held, directly or indirectly, by the controlled foreign corporation at the close of the taxable year, to the extent such amount would have constituted a dividend (determined after the application of section 955(a)) if it had been distributed.
“(2) Pro rata share of increase for year.—In the case of any United States shareholder, the pro rata share of the increase for any taxable year in the earnings of a controlled foreign corporation invested in United States property is the amount determined by subtracting his pro rata share of--
“(A) the amount determined under paragraph (1) for the close of the preceding taxable year, reduced by amounts paid during such preceding taxable year to which section 959(c)(1) applies, from
“(B) the amount determined under paragraph (1) for the close of the taxable year.
“The determinations under subparagraphs (A) and (B) shall be made on the basis of stock owned (within the meaning of section 958(a)) by such United States shareholder on the last day during the taxable year on which the foreign corporation is a controlled foreign corporation.
“(3) Amount attributable to property.—The amount taken into account under paragraph (1) or (2) with respect to any property shall be its adjusted basis, reduced by any liability to which the property is subject.”
Subsec. (e). Pub. L. 103-66, Sec. 13232(b), added subsec. (e).
1986--Subsec. (b)(3)(A). Pub. L. 99-514 inserted “(other than subparagraph (H) thereof)”.
1984--Subsec. (b)(2)(I). Pub. L. 98-369, 801(d)(8), added subpar. (I).
Subsec. (b)(3). Pub. L. 98-369, 123(b), added par. (3).
1976--Subsec. (b)(2)(F) to (H). Pub. L. 94-455, 1021(a), added subpars. (F) and (G) and redesignated former subpar. (F) as (H).
Subsec. (c). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(162)-(163), effective March 23, 2018.
Amendments by Pub. L. 110-172, Sec. 11(g)(15)(A), effective on the date of the enactment of this Act [Enacted: Dec. 29, 2007].
Amendments by Pub. L. 108-357, Sec. 407, effective for taxable years of foreign corporations beginning after December 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.
Amendment by Pub. L. 108-357, Sec. 837(a), effective on the date of the enactment of this Act [Enacted: Oct. 22, 2004].
Section 1601(j)(1) of Pub. L. 105-34 provided that:
“Except as provided in paragraph (2), the amendments made by this section shall take effect as if included in the provisions of the Small Business Job Protection Act of of 1996 to which they relate”.
Section 1601(j)(2) provided the following exception:
“The amendment made by subsection (d)(2)(D) shall apply to calendar years beginning after the date of the enactment of this Act [enacted: Aug. 5, 1997]”.
Subsec. 1173(b) of Pub. L. 105-34 provided that:
“The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 1997, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end”.
Amendments by Pub. L. 104-188, Sec. 1501(b), effective for taxable years of foreign corporations beginning after December 31, 1996, and for taxable years of United States shareholders within which or with which such taxable years of foreign corporations end.
Amendments by Pub. L. 103-66, Sec. 13232, effective for taxable years of controlled foreign corporations beginning after September 30, 1993, and for taxable years of United States shareholders in which or with which such taxable years of controlled foreign corporations end.
Amendment by section 123(b) of Pub. L. 98-369 applicable to accounts receivable and evidences of indebtedness transferred after Mar. 1, 1984, in taxable years ending after such date, with an exception, see section 123(c) of Pub. L. 98-369, set out as a note under section 864 of this title.
Amendment by section 801(d)(8) of Pub. L. 98-369 applicable to transactions after Dec. 31, 1984, in taxable years ending after such date, see section 805(a)(1) of Pub. L. 98-369, set out as an Effective Date note under section 921 of this title.
Section 1021(c) of Pub. L. 94-455, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by this section [amending this section and section 958 of this title] shall apply to taxable years of foreign corporations beginning after December 31, 1975, and to taxable years of United States shareholders (within the meaning of section 951(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954 ]) within which or with which such taxable years of such foreign corporations end. In determining for purposes of any taxable year referred to in the preceding sentence the amount referred to in section 956(a)(2)(A) of the Internal Revenue Code of 1986 for the last taxable year of a corporation beginning before January 1, 1976, the amendments made by this section shall be deemed also to apply to such last taxable year.”