Source: https://uscode.house.gov/view.xhtml?req=(title:26%20section:1361%20edition:prelim)
Timestamp: 2020-08-07 21:03:48
Document Index: 702745485

Matched Legal Cases: ['§ 1361', '§2', '§721', '§901', '§1879', '§1018', '§7811', '§1301', '§1601', '§6007', '§1', '§316', '§231', '§403', '§8232', '§13541', '§109', '§401', '§7', '§225', '§4', '§4', '§401', '§8234', '§413', '§232', '§1601', '§1301', '§901', '§721', '§13541', '§8232', '§8233', '§8234', '§413', '§231', '§232', '§234', '§236', '§239', '§1879', '§721', '§2', '§6', '§305', '§721', '§2', '§8235', '§1311', '§305', '§2']

[USC02] 26 USC 1361: S corporation defined
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26 USC 1361: S corporation defined Text contains those laws in effect on August 6, 2020
For purposes of this subchapter, the term "small business corporation" means a domestic corporation which is not an ineligible corporation and which does not-
For purposes of paragraph (1), the term "ineligible corporation" means any corporation which is-
Except as provided in regulations prescribed by the Secretary, for purposes of this title-
For purposes of this paragraph, the term "qualified subchapter S subsidiary" means any domestic corporation which is not an ineligible corporation (as defined in paragraph (2)), if-
If the failure to meet the requirements of subparagraph (B) is by reason of the sale of stock of a corporation which is a qualified subchapter S subsidiary, the sale of such stock shall be treated as if-
If a corporation's status as a qualified subchapter S subsidiary terminates, such corporation (and any successor corporation) shall not be eligible to make-
For purposes of subsection (b)(1)(A), there shall be treated as one shareholder-
The term "applicable date" means the latest of-
For purposes of subsection (b)(1)-
For purposes of this paragraph, the term "straight debt" means any written unconditional promise to pay on demand or on a specified date a sum certain in money if-
For purposes of subsection (b)(1)(B), an organization which is-
In the case of a qualified subchapter S trust with respect to which a beneficiary makes an election under paragraph (2)-
For purposes of this subsection, the term "qualified subchapter S trust" means a trust-
(A) the terms of which require that-
Except as provided in subparagraph (B), the term "electing small business trust" means any trust if-
The term "electing small business trust" shall not include-
For purposes of this subsection, the term "restricted bank director stock" means stock in a bank (as defined in section 581) or a depository institution holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1))), if such stock-
(Added Pub. L. 97–354, §2, Oct. 19, 1982, 96 Stat. 1669 ; amended Pub. L. 98–369, div. A, title VII, §721(c), (f), July 18, 1984, 98 Stat. 967 ; Pub. L. 99–514, title IX, §901(d)(4)(G), title XVIII, §1879(m)(1)(A), Oct. 22, 1986, 100 Stat. 2380 , 2910; Pub. L. 100–647, title I, §1018(q)(2), Nov. 10, 1988, 102 Stat. 3585 ; Pub. L. 101–239, title VII, §7811(c)(6), Dec. 19, 1989, 103 Stat. 2407 ; Pub. L. 104–188, title I, §§1301–1302(c), 1303, 1304, 1308(a), (b), (d)(1), 1315, 1316(a), (e), 1616(b)(15), Aug. 20, 1996, 110 Stat. 1777 , 1779, 1782, 1783, 1785, 1786, 1857; Pub. L. 105–34, title XVI, §1601(c)(1), (3), (4)(B), (C), Aug. 5, 1997, 111 Stat. 1087 ; Pub. L. 105–206, title VI, §6007(f)(3), July 22, 1998, 112 Stat. 810 ; Pub. L. 106–554, §1(a)(7) [title III, §316(b)], Dec. 21, 2000, 114 Stat. 2763 , 2763A-644; Pub. L. 108–357, title II, §§231(a), 232(a), 233(a), (b), 234(a), 236(a), 239(a), Oct. 22, 2004, 118 Stat. 1433–1435 , 1437; Pub. L. 109–135, title IV, §§403(b), 413(a)(1), (c), Dec. 21, 2005, 119 Stat. 2620 , 2641; Pub. L. 110–28, title VIII, §§8232(a), 8233(a), 8234(a), May 25, 2007, 121 Stat. 197 , 198; Pub. L. 115–97, title I, §13541(a), Dec. 22, 2017, 131 Stat. 2154 ; Pub. L. 115–141, div. U, title I, §109(a), title IV, §401(a)(190), (d)(1)(D)(xvi), Mar. 23, 2018, 132 Stat. 1171 , 1193, 1208.)
A prior section 1361, acts Aug. 16, 1954, ch. 736, 68A Stat. 350 ; Oct. 10, 1962, Pub. L. 87–792, §7(h), 76 Stat. 829 ; Feb. 26, 1964, Pub. L. 88–272, title II, §225(k)(5), 78 Stat. 94 ; Apr. 14, 1966, Pub. L. 89–389, §4(a), 80 Stat. 115 , related to election of certain partnerships and proprietorships to be taxed as domestic corporations, prior to repeal by Pub. L. 89–389, §4(b)(1), Apr. 14, 1966, 80 Stat. 116 , effective Jan. 1, 1969.
2018-Subsec. (b)(2)(C), (D). Pub. L. 115–141, §401(d)(1)(D)(xvi), redesignated subpar. (D) as (C) and struck out former subpar. (C) which read as follows: "a corporation to which an election under section 936 applies, or".
2017-Subsec. (c)(2)(B)(v). Pub. L. 115–97 inserted at end "This clause shall not apply for purposes of subsection (b)(1)(C)."
2007-Subsec. (b)(3)(C). Pub. L. 110–28, §8234(a), designated existing provisions as cl. (i), inserted cl. (i) heading, and added cl. (ii).
2005-Subsec. (b)(3)(A). Pub. L. 109–135, §413(c)(1), struck out "and in the case of information returns required under part III of subchapter A of chapter 61" after "Secretary".
2004-Subsec. (b)(1)(A). Pub. L. 108–357, §232(a), substituted "100" for "75".
2000-Subsec. (e)(1)(A)(i)(IV). Pub. L. 106–554 added subcl. (IV).
1998-Subsec. (e)(4). Pub. L. 105–206 substituted "section 641(c)" for "section 641(d)".
1997-Subsec. (b)(1)(B). Pub. L. 105–34, §1601(c)(4)(C), substituted "subsection (c)(6)" for "subsection (c)(7)".
1996-Subsec. (b)(1)(A). Pub. L. 104–188, §1301, substituted "75" for "35".
"(6) Ownership of stock in certain inactive corporations.-For purposes of subsection (b)(2)(A), a corporation shall not be treated as a member of an affiliated group during any period within a taxable year by reason of the ownership of stock in another corporation if such other corporation-
1989-Subsec. (b)(2)(B). Pub. L. 101–239 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "a financial institution which is a bank (as defined in section 585(a)(2)) or to which section 593 applies,".
1988-Subsec. (d)(3). Pub. L. 100–647 substituted "within the meaning of" for "treated as a separate trust under" in last sentence.
1986-Subsec. (b)(2)(B). Pub. L. 99–514, §901(d)(4)(G), substituted "which is a bank (as defined in section 585(a)(2)) or to which section 593 applies" for "to which section 585 or 593 applies".
1984-Subsec. (c)(6). Pub. L. 98–369, §721(c), amended par. (6) generally, substituting "during any period within a taxable year" for "during any taxable year" in provisions preceding subpar. (A), and substituting "on or before the close of such period" for "on or after the date of its incorporation and before the close of such taxable year" in subpar. (A), and "does not have gross income for such period" for "does not have taxable income for the period included within such taxable year" in subpar. (B).
Pub. L. 115–97, title I, §13541(b), Dec. 22, 2017, 131 Stat. 2154 , provided that: "The amendment made by this section [amending this section] shall take effect on January 1, 2018."
Pub. L. 110–28, title VIII, §8232(c), May 25, 2007, 121 Stat. 198 , provided that:
"(1) In general.-The amendments made by this section [amending this section and section 1368 of this title] shall apply to taxable years beginning after December 31, 2006.
"(2) Special rule for treatment as second class of stock.-In the case of any taxable year beginning after December 31, 1996, restricted bank director stock (as defined in section 1361(f) of the Internal Revenue Code of 1986, as added by this section) shall not be taken into account in determining whether an S corporation has more than 1 class of stock."
Pub. L. 110–28, title VIII, §8233(b), May 25, 2007, 121 Stat. 198 , provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2006."
Pub. L. 110–28, title VIII, §8234(b), May 25, 2007, 121 Stat. 199 , provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2006."
Pub. L. 109–135, title IV, §413(d), Dec. 21, 2005, 119 Stat. 2642 , provided that: "The amendments made by this section [amending this section and sections 1362 and 4975 of this title] shall take effect as if included in the provisions of the American Jobs Creation Act of 2004 [Pub. L. 108–357] to which they relate."
Pub. L. 108–357, title II, §231(c)(1), Oct. 22, 2004, 118 Stat. 1433 , provided that: "The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 2004."
Pub. L. 108–357, title II, §232(b), Oct. 22, 2004, 118 Stat. 1434 , provided that: "The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2004."
Pub. L. 108–357, title II, §234(b), Oct. 22, 2004, 118 Stat. 1435 , provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2004."
Pub. L. 108–357, title II, §236(b), Oct. 22, 2004, 118 Stat. 1435 , provided that: "The amendments made by this section [amending this section] shall apply to transfers made after December 31, 2004."
Pub. L. 108–357, title II, §239(b), Oct. 22, 2004, 118 Stat. 1437 , provided that: "The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2004."
Pub. L. 99–514, title XVIII, §1879(m)(2), Oct. 22, 1986, 100 Stat. 2910 , provided that: "The amendments made by this subsection [amending this section and section 1368 of this title] shall apply to taxable years beginning after December 31, 1982."
Pub. L. 98–369, div. A, title VII, §721(y), July 18, 1984, 98 Stat. 972 , as amended by Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 , provided that:
"(1) In general.-Except as otherwise provided in this subsection, any amendment made by this section [amending this section, sections 48, 108, 267, 318, 465, 1362, 1363, 1367, 1368, 1371, 1374, 1375, 1378, 1379, 6362, and 6659 and provisions set out as a note under this section] shall take effect as if included in the Subchapter S Revision Act of 1982 [Pub. L. 97–354].
"(2) Amendment made by subsection (b)(2).-Subparagraph (C) of section 108(d)(7) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by subsection (b)(2)) shall apply to contributions to capital after December 31, 1980, in taxable years ending after such date.
"(3) Amendment made by subsection (g)(1).-If-
"(4) Amendments made by subsection (l ).-The amendments made by subsection (l) [amending section 1362 of this title] shall apply to any election under section 1362 of the Internal Revenue Code of 1986 (or any corresponding provision of prior law) made after October 19, 1982.
"(5) Amendment made by subsection (t).-If-
Pub. L. 97–354, §6, Oct. 19, 1982, 96 Stat. 1697 , as amended by Pub. L. 97–448, title III, §305(d)(1)(A), Jan. 12, 1983, 96 Stat. 2399 ; Pub. L. 98–369, div. A, title VII, §721(i), (k), July 18, 1984, 98 Stat. 969 ; Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 , provided that:
"(a) In General.-Except as otherwise provided in this section, the amendments made by this Act [enacting this section and sections 1362, 1363, 1366 to 1368, 1371 to 1375, 1377 to 1379, and 6241 to 6245 of this title, amending sections 31, 44D to 44F, 46, 48, 50A, 50B, 52, 53, 55, 57, 58, 62, 108, 163, 168, 170, 172, 179, 183, 189, 194, 267, 280, 280A, 291, 447, 464, 465, 613A, 992, 1016, 1101, 1212, 1251, 1254, 1256, 3453, 3454, 4992, 4996, 6037, 6042, 6362, and 6661 of this title and section 1108 of Title 29, Labor, omitting section 1376 of this title, and enacting provisions set out as a note under section 1 of this title] shall apply to taxable years beginning after December 31, 1982.
"(1) Sections 1379 and 62(9) continue to apply for 1983.-Sections 1379 and 62(9) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as in effect before the date of the enactment of this Act [Oct. 19, 1982]) shall remain in effect for years beginning before January 1, 1984.
"(2) Allowance of exclusion of death benefit.-Notwithstanding section 241(b) of the Tax Equity and Fiscal Responsibility Act of 1982 [section 241(b) of Pub. L. 97–248, set out as a note under section 416 of this title] in the case of amounts received under a plan of an S corporation, the amendment made by section 239 of such Act [section 239 of Pub. L. 97–248, amending section 101 of this title] shall apply with respect to decedents dying after December 31, 1982.
"(3) New passive income rules apply to taxable years beginning during 1982.-In the case of a taxable year beginning during 1982-
"(c) Grandfather Rules.-
"(1) Subsidiaries which are foreign corporations or disc's.-In the case of any corporation which on September 28, 1982, would have been a member of the same affiliated group as an electing small business corporation but for paragraph (3) or (7) of section 1504(b) of the Internal Revenue Code of 1986, subparagraph (A) of section 1361(b)(2) of such Code (as amended by section 2) shall be applied by substituting 'without regard to the exceptions contained in paragraphs (1), (2), (4), (5), and (6) of subsection (b) thereof' for 'without regard to the exceptions contained in subsection (b) thereof'.
"(2) Casualty insurance companies.-
"(A) In general.-In the case of any qualified casualty insurance electing small business corporation-
"(B) Qualified casualty insurance electing small business corporation.-The term 'qualified casualty insurance electing small business corporation' means any corporation described in section 831(a) of the Internal Revenue Code of 1986 if-
"(3) Certain corporations with oil and gas production.-
"(A) In general.-In the case of any qualified oil corporation-
"(B) Qualified oil corporation.-For purposes of this paragraph, the term 'qualified oil corporation' means any corporation if-
"(i) as of September 28, 1982, such corporation-
"(C) Average daily production.-For purposes of subparagraph (B), the average daily production of domestic crude oil or domestic natural gas shall be determined under section 613A(c)(2) of such Code without regard to the last sentence thereof.
"(D) Substantial shareholder.-For purposes of subparagraph (B), the term 'substantial shareholder' means any person who on July 1, 1982, owns more than 40 percent (in value) of the stock of the corporation.
"(4) Continuity required.-
"(A) In general.-This subsection shall cease to apply with respect to any corporation after-
"(B) Special rules for paragraph (2).-
"(d) Treatment of Existing Fringe Benefit Plans.-
"(1) In general.-In the case of existing fringe benefits of a corporation which as of September 28, 1982, was an electing small business corporation, section 1372 of the Internal Revenue Code of 1986 (as added by this Act [Pub. L. 97–354]) shall apply only with respect to taxable years beginning after December 31, 1987.
"(2) Requirements.-This subsection shall cease to apply with respect to any corporation after whichever of the following first occurs:
"(3) Existing fringe benefit.-For purposes of this subsection, the term 'existing fringe benefit' means any employee fringe benefit of a type which the corporation provided to its employees as of September 28, 1982.
"(e) Treatment of Certain Elections Under Prior Law.-For purposes of section 1362(g) of the Internal Revenue Code of 1986, as amended by this Act [Pub. L. 97–354] (relating to no election permitted within 5 years after termination of prior election), any termination or revocation under section 1372(e) of such Code (as in effect on the day before the date of the enactment of this Act [Oct. 19, 1982]) shall not be taken into account.
"(f) Taxable Year of S Corporations.-Section 1378 of the Internal Revenue Code of 1986 (as added by this Act [Pub. L. 97–354]) shall take effect on the day after the date of the enactment of this Act [Oct. 19, 1982]. For purposes of applying such section, the reference in subsection (a)(2) of such section to an election under section 1362(a) shall include a reference to an election under section 1372(a) of such Code as in effect on the day before the date of the enactment of this Act [Oct. 19, 1982]."
Pub. L. 110–28, title VIII, §8235, May 25, 2007, 121 Stat. 199 , provided that: "In the case of a corporation which is-
Pub. L. 104–188, title I, §1311(a), Aug. 20, 1996, 110 Stat. 1784 , provided that: "If-
Pub. L. 97–448, title III, §305(d)(1)(B), Jan. 12, 1983, 96 Stat. 2399 , as amended by Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 , provided that: "If-