Source: http://www.law.cornell.edu/uscode/text/26/7701
Timestamp: 2013-05-22 13:08:13
Document Index: 744757017

Matched Legal Cases: ['§ 7701', '§ 7701', '§\u20094112', '§\u2009301', '§ 22', '§ 18', '§ 103', '§ 6', '§ 5', '§ 204', '§ 102', '§ 103', '§ 103', '§ 432', '§ 960', '§ 1', '§ 3043', '§ 1203', '§ 1906', '§ 157', '§ 701', '§ 725', '§ 201', '§ 201', '§ 307', '§ 201', '§ 306', '§ 5', '§ 203', '§ 102', '§ 3', '§ 31', '§ 412', '§ 526', '§ 9', '§ 201', '§ 671', '§ 1137', '§ 1802', '§ 101', '§ 624', '§ 1', '§ 1001', '§ 602', '§ 11704', '§ 314', '§ 521', '§ 13238', '§ 320', '§ 304', '§ 1402', '§ 1151', '§ 1601', '§ 1', '§ 401', '§ 542', '§ 207', '§ 804', '§ 403', '§ 1207', '§ 8246', '§ 301', '§ 1409', '§ 301', '§ 407', '§ 1450', '§ 1469', '§ 101', '§ 2', '§ 1241', '§ 7871', '§ 301', '§ 542', '§ 301', '§ 301', '§ 301', '§ 8246', '§ 8246', '§ 8246', '§ 1207', '§ 1222', '§ 835', '§ 852', '§ 835', '§ 804', '§ 542', '§ 1151', '§ 1601', '§ 1174', '§ 1174', '§ 1621', '§ 1402', '§ 1907', '§ 1907', '§ 1621', '§ 304', '§ 304', '§ 304', '§ 304', '§ 304', '§ 304', '§ 11812', '§ 11704', '§ 1006', '§ 1006', '§ 1011', '§ 1', '§ 1018', '§ 1001', '§ 1002', '§ 201', '§ 1011', '§ 101', '§ 624', '§ 101', '§ 624', '§ 1842', '§ 671', '§ 1166', '§ 1137', '§ 1810', '§ 1810', '§ 1810', '§ 1810', '§ 1810', '§ 1810', '§ 1899', '§ 1810', '§ 201', '§ 1802', '§ 201', '§ 1002', '§ 1899', '§ 201', '§ 673', '§ 1147', '§ 201', '§ 474', '§ 422', '§ 412', '§ 491', '§ 43', '§ 526', '§ 138', '§ 138', '§ 138', '§ 31', '§ 138', '§ 53', '§ 31', '§ 75', '§ 53', '§ 75', '§ 102', '§ 5', '§ 5', '§ 306', '§ 336', '§ 104', '§ 307', '§ 301', '§ 201', '§ 201', '§ 336', '§ 701', '§ 157', '§ 1906', '§ 1906', '§ 1906', '§ 1906', '§ 1203', '§ 432', '§ 432', '§ 432', '§ 432', '§ 960', '§ 432', '§ 6', '§ 7', '§ 18', '§ 22', '§ 22', '§ 852', '§ 1161', '§ 2', '§ 6', '§ 402', '§ 2']

26 USC § 7701 - Definitions | Title 26 - Internal Revenue Code | U.S. Code | LII / Legal Information Institute
USC › Title 26 › Subtitle F › Chapter 79 › § 7701	prevnext
Person The term “person” shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
Partnership and partner The term “partnership” includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title, a trust or estate or a corporation; and the term “partner” includes a member in such a syndicate, group, pool, joint venture, or organization.
Corporation The term “corporation” includes associations, joint-stock companies, and insurance companies.
Domestic The term “domestic” when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State unless, in the case of a partnership, the Secretary provides otherwise by regulations.
Foreign The term “foreign” when applied to a corporation or partnership means a corporation or partnership which is not domestic.
Fiduciary The term “fiduciary” means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.
Stock The term “stock” includes shares in an association, joint-stock company, or insurance company.
Shareholder The term “shareholder” includes a member in an association, joint-stock company, or insurance company.
United States The term “United States” when used in a geographical sense includes only the States and the District of Columbia.
State The term “State” shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.
Secretary of the Treasury and Secretary (A)
Secretary of the Treasury The term “Secretary of the Treasury” means the Secretary of the Treasury, personally, and shall not include any delegate of his.
Delegate (A)
In general The term “or his delegate”—
Performance of certain functions in Guam or American Samoa The term “delegate,” in relation to the performance of functions in Guam or American Samoa with respect to the taxes imposed by chapters 1, 2, and 21, also includes any officer or employee of any other department or agency of the United States, or of any possession thereof, duly authorized by the Secretary (directly, or indirectly by one or more redelegations of authority) to perform such functions.
Commissioner The term “Commissioner” means the Commissioner of Internal Revenue.
Taxpayer The term “taxpayer” means any person subject to any internal revenue tax.
Military or naval forces and armed forces of the United States The term “military or naval forces of the United States” and the term “Armed Forces of the United States” each includes all regular and reserve components of the uniformed services which are subject to the jurisdiction of the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, or the Secretary of the Air Force, and each term also includes the Coast Guard. The members of such forces include commissioned officers and personnel below the grade of commissioned officers in such forces.
Withholding agent The term “withholding agent” means any person required to deduct and withhold any tax under the provisions of section 1441, 1442, 1443, or 1461.
Husband and wife As used in sections 682 and 2516, if the husband and wife therein referred to are divorced, wherever appropriate to the meaning of such sections, the term “wife” shall be read “former wife” and the term “husband” shall be read “former husband”; and, if the payments described in such sections are made by or on behalf of the wife or former wife to the husband or former husband instead of vice versa, wherever appropriate to the meaning of such sections, the term “husband” shall be read “wife” and the term “wife” shall be read “husband.”
International organization The term “international organization” means a public international organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288–288f).
Domestic building and loan association The term “domestic building and loan association” means a domestic building and loan association, a domestic savings and loan association, and a Federal savings and loan association—
which either (i) is an insured institution within the meaning of section 401(a) [1]
of the National Housing Act (12 U.S.C., sec. 1724
(a)), or (ii) is subject by law to supervision and examination by State or Federal authority having supervision over such associations;
Employee For the purpose of applying the provisions of section 79 with respect to group-term life insurance purchased for employees, for the purpose of applying the provisions of sections 104, 105, and 106 with respect to accident and health insurance or accident and health plans, and for the purpose of applying the provisions of subtitle A with respect to contributions to or under a stock bonus, pension, profit-sharing, or annuity plan, and with respect to distributions under such a plan, or by a trust forming part of such a plan, and for purposes of applying section 125 with respect to cafeteria plans, the term “employee” shall include a full-time life insurance salesman who is considered an employee for the purpose of chapter 21, or in the case of services performed before January 1, 1951, who would be considered an employee if his services were performed during 1951.
Levy The term “levy” includes the power of distraint and seizure by any means.
Taxable year The term “taxable year” means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. “Taxable year” means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
Fiscal year The term “fiscal year” means an accounting period of 12 months ending on the last day of any month other than December.
Paid or incurred, paid or accrued The terms “paid or incurred” and “paid or accrued” shall be construed according to the method of accounting upon the basis of which the taxable income is computed under subtitle A.
Trade or business The term “trade or business” includes the performance of the functions of a public office.
Tax Court The term “Tax Court” means the United States Tax Court.
Other terms Any term used in this subtitle with respect to the application of, or in connection with, the provisions of any other subtitle of this title shall have the same meaning as in such provisions.
Internal Revenue Code The term “Internal Revenue Code of 1986” means this title, and the term “Internal Revenue Code of 1939” means the Internal Revenue Code enacted February 10, 1939, as amended.
Foreign estate or trust (A)
Foreign estate The term “foreign estate” means an estate the income of which, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States, is not includible in gross income under subtitle A.
Foreign trust The term “foreign trust” means any trust other than a trust described in subparagraph (E) of paragraph (30).
Cooperative bank The term “cooperative bank” means an institution without capital stock organized and operated for mutual purposes and without profit, which—
is an insured institution within the meaning of section 401(a) [2]
Regulated public utility The term “regulated public utility” means—
A corporation engaged as a common carrier (i)
in the furnishing or sale of transportation by railroad, if subject to the jurisdiction of the Surface Transportation Board, or (ii)
in the furnishing or sale of transportation of oil or other petroleum products (including shale oil) by pipe line, if subject to the jurisdiction of the Federal Energy Regulatory Commission or if the rates for such furnishing or sale are subject to the jurisdiction of a public service or public utility commission or other similar body of the District of Columbia or of any State.
A rail carrier subject to part A of subtitle IV of title 49, if (i)
substantially all of its railroad properties have been leased to another such railroad corporation or corporations by an agreement or agreements entered into before January 1, 1954, (ii)
each lease is for a term of more than 20 years, and (iii)
at least 80 percent or more of its gross income (computed without regard to dividends and capital gains and losses) for the taxable year is derived from such leases and from sources described in subparagraphs (A) through (F), inclusive. For purposes of the preceding sentence, an agreement for lease of railroad properties entered into before January 1, 1954, shall be considered to be a lease including such term as the total number of years of such agreement may, unless sooner terminated, be renewed or continued under the terms of the agreement, and any such renewal or continuance under such agreement shall be considered part of the lease entered into before January 1, 1954.
[(34)
Repealed. Pub. L. 98–369, div. A, title IV, § 4112(b)(11),July 18, 1984, 98 Stat. 792] (35)
Enrolled actuary The term “enrolled actuary” means a person who is enrolled by the Joint Board for the Enrollment of Actuaries established under subtitle C of the title III of the Employee Retirement Income Security Act of 1974.
Tax return preparer (A)
In general The term “tax return preparer” means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return of tax imposed by this title or any claim for refund of tax imposed by this title. For purposes of the preceding sentence, the preparation of a substantial portion of a return or claim for refund shall be treated as if it were the preparation of such return or claim for refund.
Exceptions A person shall not be an [3]
“tax return preparer” merely because such person—
Individual retirement plan The term “individual retirement plan” means—
Joint return The term “joint return” means a single return made jointly under section 6013 by a husband and wife.
Persons residing outside United States If any citizen or resident of the United States does not reside in (and is not found in) any United States judicial district, such citizen or resident shall be treated as residing in the District of Columbia for purposes of any provision of this title relating to—
Indian tribal government (A)
In general The term “Indian tribal government” means the governing body of any tribe, band, community, village, or group of Indians, or (if applicable) Alaska Natives, which is determined by the Secretary, after consultation with the Secretary of the Interior, to exercise governmental functions.
Special rule for Alaska Natives No determination under subparagraph (A) with respect to Alaska Natives shall grant or defer any status or powers other than those enumerated in section 7871. Nothing in the Indian Tribal Governmental Tax Status Act of 1982, or in the amendments made thereby, shall validate or invalidate any claim by Alaska Natives of sovereign authority over lands or people.
TIN The term “TIN” means the identifying number assigned to a person under section 6109.
Substituted basis property The term “substituted basis property” means property which is—
Transferred basis property The term “transferred basis property” means property having a basis determined under any provision of subtitle A (or under any corresponding provision of prior income tax law) providing that the basis shall be determined in whole or in part by reference to the basis in the hands of the donor, grantor, or other transferor.
Exchanged basis property The term “exchanged basis property” means property having a basis determined under any provision of subtitle A (or under any corresponding provision of prior income tax law) providing that the basis shall be determined in whole or in part by reference to other property held at any time by the person for whom the basis is to be determined.
Nonrecognition transaction The term “nonrecognition transaction” means any disposition of property in a transaction in which gain or loss is not recognized in whole or in part for purposes of subtitle A.
Determination of whether there is a collective bargaining agreement In determining whether there is a collective bargaining agreement between employee representatives and 1 or more employers, the term “employee representatives” shall not include any organization more than one-half of the members of which are employees who are owners, officers, or executives of the employer. An agreement shall not be treated as a collective bargaining agreement unless it is a bona fide agreement between bona fide employee representatives and 1 or more employers.
[(47)
Repealed. Pub. L. 111–312, title III, § 301(a),Dec. 17, 2010, 124 Stat. 3300] (48)
Off-highway vehicles (A)
Off-highway transportation vehicles (i)
Determination of vehicle’s design
Nontransportation trailers and semitrailers A trailer or semitrailer shall not be treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for the carrying on of an off-highway function at an off-highway site.
Qualified blood collector organization The term “qualified blood collector organization” means an organization which is—
Termination of United States citizenship (A)
In general An individual shall not cease to be treated as a United States citizen before the date on which the individual’s citizenship is treated as relinquished under section 877A
Dual citizens Under regulations prescribed by the Secretary, subparagraph (A) shall not apply to an individual who became at birth a citizen of the United States and a citizen of another country.
Definition of resident alien and nonresident alien (1)
In general For purposes of this title (other than subtitle B)—
Resident alien An alien individual shall be treated as a resident of the United States with respect to any calendar year if (and only if) such individual meets the requirements of clause (i), (ii), or (iii):
Nonresident alien An individual is a nonresident alien if such individual is neither a citizen of the United States nor a resident of the United States (within the meaning of subparagraph (A)).
Special rules for first and last year of residency (A)
First year of residency (i)
Last year of residency An alien individual shall not be treated as a resident of the United States during a portion of any calendar year if—
Certain nominal presence disregarded (i)
Substantial presence test (A)
In general Except as otherwise provided in this paragraph, an individual meets the substantial presence test of this paragraph with respect to any calendar year (hereinafter in this subsection referred to as the “current year”) if—
multiplier is:
1 1st preceding year
Exception where individual is present in the United States during less than one-half of current year and closer connection to foreign country is established An individual shall not be treated as meeting the substantial presence test of this paragraph with respect to any current year if—
it is established that for the current year such individual has a tax home (as defined in section 911
(d)(3) without regard to the second sentence thereof) in a foreign country and has a closer connection to such foreign country than to the United States.
Subparagraph (B) not to apply in certain cases Subparagraph (B) shall not apply to any individual with respect to any current year if at any time during such year—
Exception for exempt individuals or for certain medical conditions An individual shall not be treated as being present in the United States on any day if—
First-year election (A)
Exempt individual defined For purposes of this subsection—
In general An individual is an exempt individual for any day if, for such day, such individual is—
a professional athlete who is temporarily in the United States to compete in a charitable sports event described in section 274
(l)(1)(B).
Foreign government-related individual The term “foreign government-related individual” means any individual temporarily present in the United States by reason of—
Teacher or trainee The term “teacher or trainee” means any individual—
Student The term “student” means any individual—
as a student under subparagraph (J) or (Q) of such section 101
(15), and
Special rules for teachers, trainees, and students (i)
An individual shall not be treated as an exempt individual by reason of clause (ii) of subparagraph (A) for the current year if, for any 2 calendar years during the preceding 6 calendar years, such person was an exempt person under clause (ii) or (iii) of subparagraph (A). In the case of an individual all of whose compensation is described in section 872
(b)(3), the preceding sentence shall be applied by substituting “4 calendar years” for “2 calendar years”.
Lawful permanent resident For purposes of this subsection, an individual is a lawful permanent resident of the United States at any time if—
Presence in the United States For purposes of this subsection—
In general Except as provided in subparagraph (B), (C), or (D), an individual shall be treated as present in the United States on any day if such individual is physically present in the United States at any time during such day.
Commuters from Canada or Mexico If an individual regularly commutes to employment (or self-employment) in the United States from a place of residence in Canada or Mexico, such individual shall not be treated as present in the United States on any day during which he so commutes.
Transit between 2 foreign points If an individual, who is in transit between 2 points outside the United States, is physically present in the United States for less than 24 hours, such individual shall not be treated as present in the United States on any day during such transit.
Crew members temporarily present An individual who is temporarily present in the United States on any day as a regular member of the crew of a foreign vessel engaged in transportation between the United States and a foreign country or a possession of the United States shall not be treated as present in the United States on such day unless such individual otherwise engages in any trade or business in the United States on such day.
Annual statements The Secretary may prescribe regulations under which an individual who (but for subparagraph (B) or (D) of paragraph (3)) would meet the substantial presence test of paragraph (3) is required to submit an annual statement setting forth the basis on which such individual claims the benefits of subparagraph (B) or (D) of paragraph (3), as the case may be.
Taxable year (A)
In general For purposes of this title, an alien individual who has not established a taxable year for any prior period shall be treated as having a taxable year which is the calendar year.
Fiscal year taxpayer If—
Coordination with section 877 If—
such individual shall be taxable for the period after the close of the initial residency period and before the day on which he subsequently became a resident of the United States in the manner provided in section 877
(b). The preceding sentence shall apply only if the tax imposed pursuant to section 877
(b) exceeds the tax which, without regard to this paragraph, is imposed pursuant to section 871.
Includes and including The terms “includes” and “including” when used in a definition contained in this title shall not be deemed to exclude other things otherwise within the meaning of the term defined.
Commonwealth of Puerto Rico Where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, references in this title to possessions of the United States shall be treated as also referring to the Commonwealth of Puerto Rico.
Treatment of certain contracts for providing services, etc. For purposes of chapter 1—
In general A contract which purports to be a service contract shall be treated as a lease of property if such contract is properly treated as a lease of property, taking into account all relevant factors including whether or not—
Other arrangements An arrangement (including a partnership or other pass-thru entity) which is not described in paragraph (1) shall be treated as a lease if such arrangement is properly treated as a lease, taking into account all relevant factors including factors similar to those set forth in paragraph (1).
Special rules for contracts or arrangements involving solid waste disposal, energy, and clean water facilities (A)
In general Notwithstanding paragraphs (1) and (2), and except as provided in paragraph (4), any contract or arrangement between a service provider and a service recipient—
Qualified solid waste disposal facility For purposes of subparagraph (A), the term “qualified solid waste disposal facility” means any facility if such facility provides solid waste disposal services for residents of part or all of 1 or more governmental units and substantially all of the solid waste processed at such facility is collected from the general public.
Cogeneration facility For purposes of subparagraph (A), the term “cogeneration facility” means a facility which uses the same energy source for the sequential generation of electrical or mechanical power in combination with steam, heat, or other forms of useful energy.
Alternative energy facility For purposes of subparagraph (A), the term “alternative energy facility” means a facility for producing electrical or thermal energy if the primary energy source for the facility is not oil, natural gas, coal, or nuclear power.
Water treatment works facility For purposes of subparagraph (A), the term “water treatment works facility” means any treatment works within the meaning of section 212(2) of the Federal Water Pollution Control Act.
Paragraph (3) not to apply in certain cases (A)
In general Paragraph (3) shall not apply to any qualified solid waste disposal facility, cogeneration facility, alternative energy facility, or water treatment works facility used under a contract or arrangement if—
For purposes of this paragraph, the term “related entity” has the same meaning as when used in section 168
Special rules for application of subparagraph (A) with respect to certain rights and allocations under the contract For purposes of subparagraph (A), there shall not be taken into account—
Special rules for application of subparagraph (A) in the case of certain events (i)
Exception for certain low-income housing This subsection shall not apply to any property described in clause (i), (ii), (iii), or (iv) of section 1250
(a)(1)(B) (relating to low-income housing) if—
such property is operated by or for an organization described in paragraph (3) or (4) of section 501
at least 80 percent of the units in such property are leased to low-income tenants (within the meaning of section 167
(k)(3)(B)) (as in effect on the day before the date of the enactment of the Revenue Reconcilation [4]
Act of 1990).
Regulations The Secretary may prescribe such regulations as may be necessary or appropriate to carry out the provisions of this subsection.
Use of related persons or pass-thru entities The Secretary shall prescribe such regulations as may be necessary or appropriate to prevent the avoidance of those provisions of this title which deal with—
Clarification of fair market value in the case of nonrecourse indebtedness For purposes of subtitle A, in determining the amount of gain or loss (or deemed gain or loss) with respect to any property, the fair market value of such property shall be treated as being not less than the amount of any nonrecourse indebtedness to which such property is subject.
Motor vehicle operating leases (1)
In general For purposes of this title, in the case of a qualified motor vehicle operating agreement which contains a terminal rental adjustment clause—
Qualified motor vehicle operating agreement defined For purposes of this subsection—
In general The term “qualified motor vehicle operating agreement” means any agreement with respect to a motor vehicle (including a trailer) which meets the requirements of subparagraphs (B), (C), and (D) of this paragraph.
Minimum liability of lessor An agreement meets the requirements of this subparagraph if under such agreement the sum of—
Certification by lessee; notice of tax ownership An agreement meets the requirements of this subparagraph if such agreement contains a separate written statement separately signed by the lessee—
Lessor must have no knowledge that certification is false An agreement meets the requirements of this subparagraph if the lessor does not know that the certification described in subparagraph (C)(i) is false.
Terminal rental adjustment clause defined (A)
In general For purposes of this subsection, the term “terminal rental adjustment clause” means a provision of an agreement which permits or requires the rental price to be adjusted upward or downward by reference to the amount realized by the lessor under the agreement upon sale or other disposition of such property.
Special rule for lessee dealers The term “terminal rental adjustment clause” also includes a provision of an agreement which requires a lessee who is a dealer in motor vehicles to purchase the motor vehicle for a predetermined price and then resell such vehicle where such provision achieves substantially the same results as a provision described in subparagraph (A).
Taxable mortgage pools (1)
Treated as separate corporations A taxable mortgage pool shall be treated as a separate corporation which may not be treated as an includible corporation with any other corporation for purposes of section 1501.
Taxable mortgage pool defined For purposes of this title—
In general Except as otherwise provided in this paragraph, a taxable mortgage pool is any entity (other than a REMIC) if—
Portion of entities treated as pools Any portion of an entity which meets the definition of subparagraph (A) shall be treated as a taxable mortgage pool.
Exception for domestic building and loan Nothing in this subsection shall be construed to treat any domestic building and loan association (or portion thereof) as a taxable mortgage pool.
Treatment of certain equity interests To the extent provided in regulations, equity interest of varying classes which correspond to maturity classes of debt shall be treated as debt for purposes of this subsection.
Treatment of certain REIT’s If—
under regulations prescribed by the Secretary, adjustments similar to the adjustments provided in section 860E
(d) shall apply to the shareholders of such real estate investment trust.
Tax treatment of Federal Thrift Savings Fund (1)
the Thrift Savings Fund shall be treated as a trust described in section 401
(a) which is exempt from taxation under section 501
subject to section 401
(k)(4)(B) and any dollar limitation on the application of section 402
(e)(3), contributions to the Thrift Savings Fund shall not be treated as distributed or made available to an employee or Member nor as a contribution made to the Fund by an employee or Member merely because the employee or Member has, under the provisions of subchapter III of chapter 84 of title 5, United States Code, and section 8351 of such title 5, an election whether the contribution will be made to the Thrift Savings Fund or received by the employee or Member in cash.
Nondiscrimination requirements Notwithstanding any other provision of law, the Thrift Savings Fund is not subject to the nondiscrimination requirements applicable to arrangements described in section 401
(k) or to matching contributions (as described in section 401
(m)), so long as it meets the requirements of this section.
Coordination with Social Security Act Paragraph (1) shall not be construed to provide that any amount of the employee’s or Member’s basic pay which is contributed to the Thrift Savings Fund shall not be included in the term “wages” for the purposes of section 209 of the Social Security Act or section 3121
Definitions For purposes of this subsection, the terms “Member”, “employee”, and “Thrift Savings Fund” shall have the same respective meanings as when used in subchapter III of chapter 84 of title 5, United States Code.
Coordination with other provisions of law No provision of law not contained in this title shall apply for purposes of determining the treatment under this title of the Thrift Savings Fund or any contribution to, or distribution from, such Fund.
Treatment of certain amounts paid to charity In the case of any payment which, except for section 501(b) of the Ethics in Government Act of 1978, might be made to any officer or employee of the Federal Government but which is made instead on behalf of such officer or employee to an organization described in section 170
Regulations relating to conduit arrangements The Secretary may prescribe regulations recharacterizing any multiple-party financing transaction as a transaction directly among any 2 or more of such parties where the Secretary determines that such recharacterization is appropriate to prevent avoidance of any tax imposed by this title.
Designation of contract markets Any designation by the Commodity Futures Trading Commission of a contract market which could not have been made under the law in effect on the day before the date of the enactment of the Commodity Futures Modernization Act of 2000 shall apply for purposes of this title except to the extent provided in regulations prescribed by the Secretary.
Convention or association of churches For purposes of this title, any organization which is otherwise a convention or association of churches shall not fail to so qualify merely because the membership of such organization includes individuals as well as churches or because individuals have voting rights in such organization.
Clarification of economic substance doctrine (1)
Application of doctrine In the case of any transaction to which the economic substance doctrine is relevant, such transaction shall be treated as having economic substance only if—
Special rule where taxpayer relies on profit potential (A)
In general The potential for profit of a transaction shall be taken into account in determining whether the requirements of subparagraphs (A) and (B) of paragraph (1) are met with respect to the transaction only if the present value of the reasonably expected pre-tax profit from the transaction is substantial in relation to the present value of the expected net tax benefits that would be allowed if the transaction were respected.
Treatment of fees and foreign taxes Fees and other transaction expenses shall be taken into account as expenses in determining pre-tax profit under subparagraph (A). The Secretary shall issue regulations requiring foreign taxes to be treated as expenses in determining pre-tax profit in appropriate cases.
State and local tax benefits For purposes of paragraph (1), any State or local income tax effect which is related to a Federal income tax effect shall be treated in the same manner as a Federal income tax effect.
Financial accounting benefits For purposes of paragraph (1)(B), achieving a financial accounting benefit shall not be taken into account as a purpose for entering into a transaction if the origin of such financial accounting benefit is a reduction of Federal income tax.
Economic substance doctrine The term “economic substance doctrine” means the common law doctrine under which tax benefits under subtitle A with respect to a transaction are not allowable if the transaction does not have economic substance or lacks a business purpose.
Exception for personal transactions of individuals In the case of an individual, paragraph (1) shall apply only to transactions entered into in connection with a trade or business or an activity engaged in for the production of income.
Determination of application of doctrine not affected The determination of whether the economic substance doctrine is relevant to a transaction shall be made in the same manner as if this subsection had never been enacted.
Transaction The term “transaction” includes a series of transactions.
Other definitions For other definitions, see the following sections of Title 1 of the United States Code:
Effect of cross references For effect of cross references in this title, see section 7806
(Aug. 16, 1954, ch. 736, 68A Stat. 911; Pub. L. 86–70, § 22(g), (h),June 25, 1959, 73 Stat. 146; Pub. L. 86–624, § 18(i), (j),July 12, 1960, 74 Stat. 416; Pub. L. 86–778, title I, § 103(t),Sept. 13, 1960, 74 Stat. 941; Pub. L. 87–834, §§ 6(c), 7(h),Oct. 16, 1962, 76 Stat. 982, 988; Pub. L. 87–870, § 5(a),Oct. 23, 1962, 76 Stat. 1161; Pub. L. 88–272, title II, §§ 204(a)(3), 234(b)(3),Feb. 26, 1964, 78 Stat. 36, 114; Pub. L. 89–368, title I, § 102(b)(5),Mar. 15, 1966, 80 Stat. 64; Pub. L. 89–809, title I, § 103(l)(1),Nov. 13, 1966, 80 Stat. 1554; Pub. L. 90–364, title I, § 103(e)(6),June 28, 1968, 82 Stat. 264; Pub. L. 91–172, title IV, § 432(c), (d), title IX, § 960(j),Dec. 30, 1969, 83 Stat. 622, 623, 735; Pub. L. 92–606, § 1(f)(4),Oct. 31, 1972, 86 Stat. 1497; Pub. L. 93–406, title III, § 3043,Sept. 2, 1974, 88 Stat. 1003; Pub. L. 94–455, title XII, § 1203(a), title XIX, § 1906(a)(57), (b)(13)(A), (c)(3),Oct. 4, 1976, 90 Stat. 1688, 1832, 1834, 1835; Pub. L. 95–600, title I, § 157(k)(2), title VII, § 701(cc)(2),Nov. 6, 1978, 92 Stat. 2809, 2923; Pub. L. 97–34, title VII, § 725(c)(4),Aug. 13, 1981, 95 Stat. 346; Pub. L. 97–248, title II, § 201(d)(10), formerly § 201(c)(10), title III, §§ 307(a)(17), 308(a), 336
(a),Sept. 3, 1982, 96 Stat. 421, 590, 591, 628, renumbered § 201(d)(10) and amended Pub. L. 97–448, title III, § 306(a)(1)(A)(i), (b)(3),Jan. 12, 1983, 96 Stat. 2400, 2406; Pub. L. 97–449, § 5(e),Jan. 12, 1983, 96 Stat. 2442; Pub. L. 97–473, title II, § 203,Jan. 14, 1983, 96 Stat. 2611; Pub. L. 98–67, title I, §§ 102(a), 104
(d)(1),Aug. 5, 1983, 97 Stat. 369, 379; Pub. L. 98–216, § 3(c)(2),Feb. 14, 1984, 98 Stat. 6; Pub. L. 98–369, div. A, title I, §§ 31(e), 43
(a)(1), 53
(c), 75
(c), 138
(a), title IV, §§ 412(b)(11), 422
(d)(3), 474
(r)(29)(K), 491(d)(53), title V, § 526(c)(1),July 18, 1984, 98 Stat. 518, 558, 567, 595, 672, 792, 798, 845, 852, 874; Pub. L. 98–443, § 9(q),Oct. 4, 1984, 98 Stat. 1708; Pub. L. 99–514, title II, § 201(c), (d)(14), title VI, §§ 671(b)(3), 673, title XI, §§ 1137, 1147(a), 1166(a), title XVIII, §§ 1802(a)(9)(C), 1810(l)(1)–(5)(A), 1842(d), 1899A(63), (64), Oct. 22, 1986, 100 Stat. 2138, 2142, 2317, 2319, 2486, 2493, 2511, 2790, 2830–2832, 2853, 2962; Pub. L. 100–202, § 101(m) [title VI, § 624(a)], Dec. 22, 1987, 101 Stat. 1329–390, 1329–429; Pub. L. 100–647, § 1(c), title I, §§ 1001(d)(2)(D), 1002
(a)(2), 1006(t)(12), (25)(A), 1011A(m)(1), 1011B(e), 1018
(g)(3),Nov. 10, 1988, 102 Stat. 3342, 3351, 3352, 3422, 3426, 3483, 3489, 3583; Pub. L. 101–194, title VI, § 602,Nov. 30, 1989, 103 Stat. 1762; Pub. L. 101–508, title XI, §§ 11704(a)(34), 11812(b)(13),Nov. 5, 1990, 104 Stat. 1388–519, 1388–536; Pub. L. 102–90, title III, § 314(e),Aug. 14, 1991, 105 Stat. 470; Pub. L. 102–318, title V, § 521(b)(43),July 3, 1992, 106 Stat. 313; Pub. L. 103–66, title XIII, § 13238,Aug. 10, 1993, 107 Stat. 508; Pub. L. 103–296, title III, § 320(a)(3),Aug. 15, 1994, 108 Stat. 1535; Pub. L. 104–88, title III, § 304(e),Dec. 29, 1995, 109 Stat. 944; Pub. L. 104–188, title I, §§ 1402(b)(3), 1621(b)(8), (9), 1907(a)(1), (2),Aug. 20, 1996, 110 Stat. 1790, 1867, 1916; Pub. L. 105–34, title XI, §§ 1151(a), 1174(b), title XVI, § 1601(i)(3)(A),Aug. 5, 1997, 111 Stat. 986, 989, 1093; Pub. L. 106–554, § 1(a)(7) [title IV, § 401(i)], Dec. 21, 2000, 114 Stat. 2763, 2763A–650; Pub. L. 107–16, title V, § 542(e)(3),June 7, 2001, 115 Stat. 85; Pub. L. 108–311, title II, § 207(24),Oct. 4, 2004, 118 Stat. 1178; Pub. L. 108–357, title VIII, §§ 804(b), 835
(b)(10), (11), 852
(a),Oct. 22, 2004, 118 Stat. 1570, 1594, 1609; Pub. L. 109–135, title IV, § 403(v)(2),Dec. 21, 2005, 119 Stat. 2628; Pub. L. 109–280, title XII, §§ 1207(f), 1222,Aug. 17, 2006, 120 Stat. 1071, 1089; Pub. L. 110–28, title VIII, § 8246(a)(1),May 25, 2007, 121 Stat. 200; Pub. L. 110–245, title III, § 301(c)(1), (2)(B), (C),June 17, 2008, 122 Stat. 1646; Pub. L. 111–152, title I, § 1409(a),Mar. 30, 2010, 124 Stat. 1067; Pub. L. 111–312, title III, § 301(a),Dec. 17, 2010, 124 Stat. 3300.)
Section 401 of the National Housing Act, referred to in subsec. (a)(19)(A), (32)(A)(i), which was classified to section 1724 of Title 12, Banks and Banking, was repealed by Pub. L. 101–73, title IV, § 407,Aug. 9, 1989, 103 Stat. 363.
Part A and part B of title I of the Housing Act of 1949, referred to in subsec. (a)(19)(C)(vi), which were classified generally to part A (§ 1450 et seq.) and part B (§ 1469 et seq.) of subchapter II of chapter 8A of Title 42, The Public Health and Welfare, were omitted from the Code pursuant to section 5316 of Title 42, which terminated authority to make new loans and grants under title I of that Act after Jan. 1, 1975.
Section 103 of the Demonstration Cities and Metropolitan Development Act of 1966, referred to in subsec. (a)(19)(C)(vi), which was classified to section 3303 of Title 42, was omitted from the Code pursuant to section 5316 of Title 42, which terminated authority to make new loans and grants under title I (§ 101 et seq.) of that Act after Jan. 1, 1975.
The Internal Revenue Code of 1939, referred to in subsec. (a)(29), is act Feb. 10, 1939, ch. 2, 53 Stat. 1, as amended. Prior to the enactment of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the 1939 Code was classified to former Title 26, Internal Revenue Code. The Internal Revenue Code of 1954 was redesignated The Internal Revenue Code of 1986 by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title.
The Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(35), is Pub. L. 93–406, Sept. 2, 1974, 88 Stat. 829, as amended. Subtitle C of title III of the Employee Retirement Income Security Act of 1974 is classified to subtitle C (§ 1241 et seq.) of subchapter II of chapter 18 of Title 29, Labor and amended subsec. (a)(35) of this section. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables.
The Indian Tribal Governmental Tax Status Act of 1982, referred to in subsec. (a)(40)(B), is title II of Pub. L. 97–473, Jan. 14, 1983, 96 Stat. 2607, as amended, which is classified principally to subchapter C (§ 7871) of chapter 80 of this title. For complete classification of this Act to the Code, see Short Title of 1983 Amendments note set out under section 1 of this title and Tables.
Section 101(15) of the Immigration and Nationality Act, referred to in subsec. (b)(5)(C)(i), (D)(i), probably means section 101(a)(15) of that Act, which is classified to section 1101
Section 212(2) of the Federal Water Pollution Control Act, referred to in subsec. (e)(3)(E), is classified to section 1292
(2) of Title 33, Navigation and Navigable Waters.
Section 501(b) of the Ethics in Government Act of 1978, referred to in subsec. (k), is section 501(b) ofPub. L. 95–521, which is set out in the Appendix to Title 5, Government Organization and Employees.
Sections 1207(f) and 1222 ofPub. L. 109–280, which directed the amendment of section 7701 without specifying the act to be amended, were executed to this section, which is section 7701 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2006 Amendment notes below.
2010—Subsec. (a)(47). Pub. L. 111–312, §§ 301(a), 304, temporarily amended subsec. (a) to read as if amendment by Pub. L. 107–16, § 542(e)(3), had never been enacted. See 2001 Amendment note and Effective and Termination Dates of 2010 Amendment note below.
Subsecs. (o), (p). Pub. L. 111–152added subsec. (o) and redesignated former subsec. (o) as (p).
2008—Subsec. (a)(50). Pub. L. 110–245, § 301(c)(1), added par. (50).
Subsec. (b)(6). Pub. L. 110–245, § 301(c)(2)(B), inserted concluding provisions.
Subsecs. (n) to (p). Pub. L. 110–245, § 301(c)(2)(C), redesignatedsubsecs. (o) and (p) as (n) and (o), respectively, and struck out former subsec. (n) which related to special rules for determining when an individual is no longer a United States citizen or long-term resident.
2007—Subsec. (a)(36). Pub. L. 110–28, § 8246(a)(1)(A), which directed the striking out of “income” in heading, was executed by substituting “Tax” for “Income tax” to reflect the probable intent of Congress.
Pub. L. 110–28, § 8246(a)(1)(A), struck out “income” before “tax return preparer” in subpar. (A) and in introductory provisions of subpar. (B).
Subsec. (a)(36)(A). Pub. L. 110–28, § 8246(a)(1)(B), substituted “this title” for “subtitle A” in two places.
2006—Subsec. (a)(49). Pub. L. 109–280, § 1207(f), added par. (49). See Codification note above.
Subsecs. (o), (p). Pub. L. 109–280, § 1222, added subsec. (o) and redesignated former subsec. (o) as (p). See Codification note above.
2005—Subsec. (n). Pub. L. 109–135reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “An individual who would (but for this subsection) cease to be treated as a citizen or resident of the United States shall continue to be treated as a citizen or resident of the United States, as the case may be, until such individual—
2004—Subsec. (a)(17). Pub. L. 108–311substituted “682” for “152(b)(4), 682,”.
Subsec. (a)(19)(C)(xi). Pub. L. 108–357, § 835(b)(10), struck out “and any regular interest in a FASIT,” after “residual interest in a REMIC,” and struck out “or FASIT” after “entire interest in the REMIC” and after “such REMIC” in two places.
Subsec. (a)(48). Pub. L. 108–357, § 852(a), added par. (48).
Subsec. (i)(2)(A). Pub. L. 108–357, § 835(b)(11), struck out “or a FASIT” after “other than a REMIC” in introductory provisions.
Subsecs. (n), (o). Pub. L. 108–357, § 804(b), added subsec. (n) and redesignated former subsec. (n) as (o).
2001—Subsec. (a)(47). Pub. L. 107–16, §§ 542(e)(3), 901, temporarily added par. (47) which defined the term “executor”. See Effective and Termination Dates of 2001 Amendment note below.
2000—Subsecs. (m), (n). Pub. L. 106–554added subsec. (m) and redesignated former subsec. (m) as (n).
1997—Subsec. (a)(4). Pub. L. 105–34, § 1151(a), inserted before period at end “unless, in the case of a partnership, the Secretary provides otherwise by regulations”.
Subsec. (a)(30)(E)(ii). Pub. L. 105–34, § 1601(i)(3)(A), substituted “persons” for “fiduciaries”.
Subsec. (b)(7)(A). Pub. L. 105–34, § 1174(b)(2), substituted “, (C), or (D)” for “or (C)”.
Subsec. (b)(7)(D). Pub. L. 105–34, § 1174(b)(1), added subpar. (D).
1996—Subsec. (a)(19)(C)(xi). Pub. L. 104–188, § 1621(b)(8), amended cl. (xi) generally. Prior to amendment, cl. (xi) read as follows: “any regular or residual interest in a REMIC, but only in the proportion which the assets of such REMIC consist of property described in any of the preceding clauses of this subparagraph; except that if 95 percent or more of the assets of such REMIC are assets described in clauses (i) through (x), the entire interest in the REMIC shall qualify.”
Subsec. (a)(20). Pub. L. 104–188, § 1402(b)(3), struck out “, for the purpose of applying the provisions of section 101
(b) with respect to employees’ death benefits” after “health plans”.
Subsec. (a)(30)(C) to (E). Pub. L. 104–188, § 1907(a)(1), struck out “and” at end of subpar. (C), added subpars. (D) and (E), and struck out former subpar. (D) which read as follows: “any estate or trust (other than a foreign estate or foreign trust, within the meaning of section 7701
(a)(31)).”
Subsec. (a)(31). Pub. L. 104–188, § 1907(a)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The terms ‘foreign estate’ and ‘foreign trust’ mean an estate or trust, as the case may be, the income of which, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States, is not includible in gross income under subtitle A.”
Subsec. (i)(2)(A). Pub. L. 104–188, § 1621(b)(9), inserted “or a FASIT” after “a REMIC” in introductory provisions.
1995—Subsec. (a)(33)(B). Pub. L. 104–88, § 304(e)(1), substituted “Federal Energy Regulatory Commission” for “Federal Power Commission”.
Subsec. (a)(33)(C)(i). Pub. L. 104–88, § 304(e)(2), substituted “Surface Transportation Board” for “Interstate Commerce Commission”.
Subsec. (a)(33)(C)(ii). Pub. L. 104–88, § 304(e)(3), substituted “Federal Energy Regulatory Commission” for “Interstate Commerce Commission”.
Subsec. (a)(33)(F). Pub. L. 104–88, § 304(e)(4), substituted “a water carrier subject to jurisdiction under subchapter II of chapter 135 of title 49” for “common carrier by water, subject to the jurisdiction of the Interstate Commerce Commission under subchapter III of chapter 105 of title 49, or subject to the jurisdiction of the Federal Maritime Board under the Intercoastal Shipping Act, 1933”.
Subsec. (a)(33)(G). Pub. L. 104–88, § 304(e)(5), substituted “rail carrier subject to part A of subtitle IV” for “railroad corporation subject to subchapter I of chapter 105”.
Subsec. (a)(33)(H). Pub. L. 104–88, § 304(e)(6), substituted “part A of subtitle IV” for “subchapter I of chapter 105”.
1994—Subsec. (b)(5)(C)(i), (D)(i)(II). Pub. L. 103–296substituted “(J) or (Q)” for “(J)”.
1993—Subsecs. (l), (m). Pub. L. 103–66added subsec. (l) and redesignated former subsec. (l) as (m).
1992—Subsec. (j)(1)(C). Pub. L. 102–318substituted “402(e)(3)” for “402(a)(8)”.
1991—Subsec. (k). Pub. L. 102–90amended last sentence generally. Prior to amendment, last sentence read as follows: “For purposes of this subsection, a Representative in, or a Delegate or Resident Commissioner to, the Congress shall be treated as an officer or employee of the Federal Government and a Senator or officer (except the Vice President) or employee of the Senate shall not be treated as an officer or employee of the Federal Government.”
1990—Subsec. (e)(5)(B). Pub. L. 101–508, § 11812(b)(13), inserted before period at end “(as in effect on the day before the date of the enactment of the Revenue Reconcilation [sic] Act of 1990)”.
Subsec. (j)(1)(C). Pub. L. 101–508, § 11704(a)(34), substituted “(C) subject to section 401
(a)(8),” for “(C) subject to, section 401
(k)(4)(B), and any dollar limitation on the application of section 402
(a)(8),”.
1989—Subsecs. (k), (l). Pub. L. 101–194added subsec. (k) and redesignated former subsec. (k) as (l).
1988—Subsec. (a)(19). Pub. L. 100–647, § 1006(t)(25)(A), inserted at end “For purposes of determining whether any interest in a REMIC qualifies under clause (xi), any regular interest in another REMIC held by such REMIC shall be treated as a loan described in a preceding clause under principles similar to the principles of clause (xi); except that, if such REMIC’s are part of a tiered structure, they shall be treated as 1 REMIC for purposes of clause (xi).”
Subsec. (a)(19)(C)(xi). Pub. L. 100–647, § 1006(t)(12), substituted “are assets described” for “are loans described”.
Subsec. (a)(20). Pub. L. 100–647, § 1011B(e), substituted “and 106” for “106, and 125” and inserted “and for purposes of applying section 125 with respect to cafeteria plans,” before “the term”.
Subsec. (a)(29). Pub. L. 100–647, § 1(c), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”.
Subsec. (b)(5)(A)(iv). Pub. L. 100–647, § 1018(g)(3), substituted “section 274
(l)(1)(B)” for “section 274
(k)(2)”.
Subsec. (b)(5)(D)(i)(I). Pub. L. 100–647, § 1001(d)(2)(D), substituted “subparagraph (F) or (M)” for “subparagraph (F)”.
Subsec. (e)(5). Pub. L. 100–647, § 1002(a)(2), made technical correction to language of Pub. L. 99–514, § 201(d)(14)(B), see 1986 Amendment note below.
Subsec. (j)(1)(C). Pub. L. 100–647, § 1011A(m)(1), inserted “, section 401
(k)(4)(B),” after “the provisions of paragraph (2)” in subpar. (C), as it read before amendment by Pub. L. 100–202. See Effective Date of 1988 Amendment note below.
1987—Subsec. (j)(1)(C). Pub. L. 100–202, § 101(m) [title VI, § 624(a)(1)], which directed that “the provisions of paragraph (2) and” after “subject to” be struck out, was executed by striking out “the provisions of paragraph (2)” after “subject to” in view of the amendment by section 1011A(m)(1) ofPub. L. 100–647which was effective as if it had been included in Pub. L. 99–514. See 1988 Amendment note above.
Subsec. (j)(2). Pub. L. 100–202, § 101(m) [title VI, § 624(a)(2)], added par. (2) and struck out former par. (2) which read as follows: “Paragraph (1)(C) shall not apply to the Thrift Savings Fund unless the Fund meets the antidiscrimination requirements (other than any requirement relating to coverage) applicable to arrangements described in section 401
(k) and to matching contributions. Rules similar to the rules of sections 401
(k)(8) and 401
(m)(8) (relating to no disqualification if excess contributions distributed) shall apply for purposes of the preceding sentence.”
1986—Subsec. (a)(17). Pub. L. 99–514, § 1842(d), inserted reference to section 2516.
Subsec. (a)(19)(C)(xi). Pub. L. 99–514, § 671(b)(3), added cl. (xi).
Subsec. (a)(20). Pub. L. 99–514, § 1166(a), inserted reference to section 125.
Subsec. (a)(46). Pub. L. 99–514, § 1137, inserted last sentence.
Subsec. (b)(1)(A). Pub. L. 99–514, § 1810(l)(2), substituted “the requirements of clause (i), (ii), or (iii)” for “the requirements of clause (i) or (ii)” in introductory provisions and added cl. (iii).
Subsec. (b)(2)(A)(iv). Pub. L. 99–514, § 1810(l)(3), added cl. (iv).
Subsec. (b)(4). Pub. L. 99–514, § 1810(l)(4), added par. (4). Former par. (4) redesignated (5).
Subsec. (b)(5). Pub. L. 99–514, § 1810(l)(4), redesignated par. (4) as (5). Former par. (5) redesignated (6).
Subsec. (b)(5)(A)(iv). Pub. L. 99–514, § 1810(l)(5)(A), which directed that cl. (iv) be added to subpar. (4)(A), was executed by adding cl. (iv) to subpar. (5)(A) to reflect the probable intent of Congress and the intervening redesignation of par. (4) as (5) by section 1810(l)(4) ofPub. L. 99–514.
Subsec. (b)(5)(E)(i). Pub. L. 99–514, § 1810(l)(1), inserted last sentence.
Pub. L. 99–514, § 1899A(63), substituted “preceding” for “preceeding”.
Subsec. (b)(6) to (11). Pub. L. 99–514, § 1810(l)(4), redesignated pars. (5) to (10) as pars. (6) to (11), respectively.
Subsec. (e)(4)(A). Pub. L. 99–514, § 201(d)(14)(A), substituted “section 168
(h)” for “section 168
Pub. L. 99–514, § 1802(a)(9)(C), inserted at end “For purposes of this paragraph, the term ‘related entity’ has the same meaning as when used in section 168
Subsec. (e)(5). Pub. L. 99–514, § 201(d)(14)(B), as amended by Pub. L. 100–647, § 1002(a)(2), substituted “property described in clause (i), (ii), (iii), or (iv) of section 1250
(a)(1)(B) (relating to low-income housing)” for “low-income housing (within the meaning of section 168
(c)(2)(F))”.
Pub. L. 99–514, § 1899A(64), substituted “section 168
(c)(2)(F))” for “section 168
Subsec. (h). Pub. L. 99–514, § 201(c), added subsec. (h). Former subsec. (h), relating to cross references, was successively redesignated as (i), (j), and (k).
Subsec. (i). Pub. L. 99–514, § 673, added subsec. (i). Former subsec. (i), relating to cross references, as previously redesignated, was successively redesignated as (j) and (k).
Subsec. (j). Pub. L. 99–514, § 1147(a), added subsec. (j). Former subsec. (j), relating to cross references, as previously redesignated, was redesignated as (k).
Subsec. (k). Pub. L. 99–514, §§ 201(c), 673, 1147(a), successively redesignated subsec. (h), relating to cross references, as subsecs. (i), (j), and (k).
1984—Subsec. (a)(16). Pub. L. 98–369, § 474(r)(29)(K), struck out “1451,” after “1443”.
Subsec. (a)(17). Pub. L. 98–369, § 422(d)(3), struck out reference to sections 71 and 215.
Subsec. (a)(33)(E). Pub. L. 98–443substituted “Secretary of Transportation” for “Civil Aeronautics Board”.
Subsec. (a)(33)(G). Pub. L. 98–216substituted “subchapter I of chapter 105 of title 49” for “part I of the Interstate Commerce Act”.
Subsec. (a)(34). Pub. L. 98–369, § 412(b)(11), repealed par. (34) which defined estimated income tax in the case of an individual or a corporation as the estimated tax defined in section 6015
(d) or 6154
Subsec. (a)(37)(C). Pub. L. 98–369, § 491(d)(53), struck out subpar. (C) which included a retirement bond described in section 409 within the term “individual plan”.
Subsec. (a)(42) to (45). Pub. L. 98–369, § 43(a)(1), added pars. (42) to (45).
Subsec. (a)(46). Pub. L. 98–369, § 526(c)(1), added par. (46).
Subsec. (b). Pub. L. 98–369, § 138(a), added subsec. (b). Former subsec. (b), relating to includes and including, redesignated (c).
Subsec. (c). Pub. L. 98–369, § 138(a), redesignated former subsec. (b), relating to includes and including, as (c). Former subsec. (c), relating to Commonwealth of Puerto Rico, redesignated (d).
Subsec. (d). Pub. L. 98–369, § 138(a), redesignated former subsec. (c), relating to Commonwealth of Puerto Rico, as (d). Former subsec. (d), relating to cross references, redesignated (e).
Subsec. (e). Pub. L. 98–369, § 31(e), added subsec. (e). Former subsec. (e), relating to cross references, redesignated (f).
Pub. L. 98–369, § 138(a), redesignated former subsec. (d), relating to cross references, as (e).
Subsec. (f). Pub. L. 98–369, § 53(c), added subsec. (f). Former subsec. (f), relating to cross references, redesignated (g).
Pub. L. 98–369, § 31(e), redesignated former subsec. (e), relating to cross references, as (f).
Subsec. (g). Pub. L. 98–369, § 75(c), added subsec. (g). Former subsec. (g), relating to cross references, redesignated (h).
Pub. L. 98–369, § 53(c), redesignated former subsec. (f), relating to cross references, as (g).
Subsec. (h). Pub. L. 98–369, § 75(c), redesignated former subsec. (g), relating to cross references, as (h).
1983—Subsec. (a)(16). Pub. L. 98–67, § 102(a), repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below.
Subsec. (a)(33)(F). Pub. L. 97–449, § 5(e)(1), substituted “subchapter III of chapter 105 of title 49” for “part III of the Interstate Commerce Act”.
Subsec. (a)(33)(H). Pub. L. 97–449, § 5(e)(2), substituted “subchapter I of chapter 105 of title 49” for “part I of the Interstate Commerce Act”.
Subsec. (a)(38), (39). Pub. L. 97–448, § 306(b)(3), redesignated par. (38), as added by Pub. L. 97–248, § 336(a), relating to persons residing outside the United States, as (39).
Subsec. (a)(40). Pub. L. 97–473added par. (40).
Subsec. (a)(41). Pub. L. 98–67, § 104(d)(1), added par. (41).
1982—Subsec. (a)(16). Pub. L. 97–248, §§ 307(a)(17), 308(a), provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, par. (16) is amended by substituting “1461 or 3451” for “or 1461”. Section 102(a), (b) ofPub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.
Subsec. (a)(38). Pub. L. 97–248, § 201(d)(10), formerly § 201(c)(10), added par. (38) relating to joint return.
Pub. L. 97–248, § 336(a), added par. (38) relating to persons residing outside the United States.
1981—Subsec. (a)(34)(A). Pub. L. 97–34substituted “section 6015
(d)” for “section 6015
1978—Subsec. (a)(36)(B)(iii). Pub. L. 95–600, § 701(cc)(2), substituted “prepares as a fiduciary a return or claim for refund for any person, or” for “prepares a return or claim for refund for any trust or estate with respect to which he is a fiduciary, or”.
Subsec. (a)(37). Pub. L. 95–600, § 157(k)(2), added par. (37).
1976—Subsec. (a)(4). Pub. L. 94–455, § 1906(c)(3), struck out “or Territory” after “any State”.
Subsec. (a)(11). Pub. L. 94–455, § 1906(a)(57)(A), substituted definitions of “Secretary of the Treasury” and “Secretary” for “Secretary.—The term ‘Secretary’ means the Secretary of the Treasury”.
Subsec. (a)(12)(A). Pub. L. 94–455, § 1906(a)(57)(B), substituted definition of “or his delegate” for definition of “Secretary of his delegate”.
Subsec. (a)(19), (23), (33). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
Subsec. (a)(36). Pub. L. 94–455, § 1203(a), added par. (36).
1974—Subsec. (a)(35). Pub. L. 93–406added par. (35).
1972—Subsec. (a)(12)(B). Pub. L. 92–606inserted reference to chapter 1.
1969—Subsec. (a)(19)(A). Pub. L. 91–172, § 432(c) reenacted subpar. (A) without change.
Subsec. (a)(19)(B). Pub. L. 91–172, § 432(c), struck out reference to subpar. (C).
Subsec. (a)(19)(C). Pub. L. 91–172, § 432(c), substituted 60 percent for 90 percent in text preceding cl. (i), reenacted cl. (i) without change, in cl. (ii), excluded obligations the interest on which was excludible from gross income under section 103, expanded provisions of former cl. (iii) and transferred them to cl. (v), reenacted cl. (iv) without change, redesignated former cls. (v) and (vi) as cls. (viii) and (x) and added cls. (iii), (vi), (vii) and (ix), and text following cl. (x).
Subsec. (a)(19)(D) to (F). Pub. L. 91–172, § 432(c), struck out subpars. (D) to (F) and text following subpar. (F) which had further qualified the assets.
Subsec. (a)(27). Pub. L. 91–172, § 960(j), substituted “United States Tax Court” for “Tax Court of the United States”.
Subsec. (a)(32). Pub. L. 91–172, § 432(d), struck out references to subpars. (D), (E) and (F) and struck out “determined with the application of the second, third, and fourth sentences of paragraph (19).” in subpar. (B) and, in text following subpar. (B), struck out provisions relating to the deduction allowable for a reasonable addition to the reserve for bad debts.
1968—Subsec. (a)(34)(B). Pub. L. 90–364substituted “section 6154
(c)” for “section 6016
1966—Subsec. (a)(31). Pub. L. 89–809substituted “, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States,” for “from sources without the United States”.
Pub. L. 89–368added par. (34).
1964—Subsec. (a)(20). Pub. L. 88–272inserted “For the purpose of applying the provisions of section 79 with respect to group-term life insurance purchased for employees”.
Subsec. (a)(33). Pub. L. 88–272added par. (33).
1962—Subsec. (a)(19). Pub. L. 87–834, § 6(c), amended par. (19) generally. Prior to such amendment, subsection read as follows: “The term ‘domestic building and loan association’ means a domestic building and loan association, a domestic savings and loan association, and a Federal savings and loan association, substantially all the business of which is confined to making loans to members.”
Subsec. (a)(30), (31). Pub. L. 87–834, § 7(h), added pars. (30), (31).
Subsec. (a)(32). Pub. L. 87–870added par. (32).
1960—Subsec. (a)(9), (10). Pub. L. 86–624, § 18(i), (j), struck out reference to the Territory of Hawaii.
Subsec. (a)(12). Pub. L. 86–778designated existing provisions as par. (A) and added par. (B).
1959—Subsec. (a)(9). Pub. L. 86–70, § 22(g), substituted “the Territory of Hawaii” for “the Territories of Alaska and Hawaii”.
Subsec. (a)(10). Pub. L. 86–70, § 22(h), substituted “Territory of Hawaii” for “Territories”.
Amendment by Pub. L. 111–152applicable to transactions entered into after Mar. 30, 2010, see section 1409(e)(1) ofPub. L. 111–152, set out as an Effective Date of 2010 Amendment note under section 6662 of this title.
Amendment by section 1207(f) ofPub. L. 109–280effective Jan. 1, 2007, see section 1207(g)(1) ofPub. L. 109–280, set out as a note under section 4041 of this title.
Amendment by section 804(b) ofPub. L. 108–357applicable to individuals who expatriate after June 3, 2004, see section 804(f) ofPub. L. 108–357, set out as a note under section 877 of this title.
Amendment by section 835(b)(10), (11) ofPub. L. 108–357effective Jan. 1, 2005, with exception for any FASIT in existence on Oct. 22, 2004, to the extent that regular interests issued by the FASIT before such date continue to remain outstanding in accordance with the original terms of issuance, see section 835(c) ofPub. L. 108–357, set out as a note under section 56 of this title.
Pub. L. 108–357, title VIII, § 852(c),Oct. 22, 2004, 118 Stat. 1609, provided that:
“(1) In general.—Except as provided in paragraph (2), the amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [Oct. 22, 2004].
“(2) Fuel taxes.—With respect to taxes imposed under subchapter B of chapter 31 and part III of subchapter A of chapter 32, the amendment made by this section shall apply to taxable periods beginning after the date of the enactment of this Act.”
Amendment by Pub. L. 108–311applicable to taxable years beginning after Dec. 31, 2004, see section 208 ofPub. L. 108–311, set out as a note under section 2 of this title
Section 1151(b) ofPub. L. 105–34provided that: “Any regulations issued with respect to the amendment made by subsection (a) [amending this section] shall apply to partnerships created or organized after the date determined under section 7805(b) of the Internal Revenue Code of 1986 (without regard to paragraph (2) thereof) with respect to such regulations.”
Section 1174(c) ofPub. L. 105–34provided that:
“(1) In general.—The amendments made by this section [amending this section and sections 861 and 863 of this title] shall apply to remuneration for services performed in taxable years beginning after December 31, 1997.
“(2) Presence.—The amendment made by subsection (b) [amending this section] shall apply to taxable years beginning after December 31, 1997.”
Amendment by section 1601(i)(3)(A) ofPub. L. 105–34effective as if included in the provisions of the Small Business Job Protection Act of 1996, Pub. L. 104–188, to which it relates, see section 1601(j) ofPub. L. 105–34, set out as a note under section 36C of this title.
Section 1601(i)(4) ofPub. L. 105–34provided that: “The Secretary of the Treasury may by regulations or other administrative guidance provide that the amendments made by section 1907(a) of the Small Business Job Protection Act of 1996 [Pub. L. 104–188, amending this section] shall not apply to a trust with respect to a reasonable period beginning on the date of the enactment of such Act [Aug. 20, 1996], if—
“(A) such trust is in existence on August 20, 1996, and is a United States person for purposes of the Internal Revenue Code of 1986 on such date (determined without regard to such amendments),
“(B) no election is in effect under section 1907(a)(3)(B) of such Act [set out as a note below] with respect to such trust,
“(C) before the expiration of such reasonable period, such trust makes the modifications necessary to be treated as a United States person for purposes of such Code (determined with regard to such amendments), and
“(D) such trust meets such other conditions as the Secretary may require.”
Amendment by section 1402(b)(3) ofPub. L. 104–188applicable with respect to decedents dying after Aug. 20, 1996, see section 1402(c) ofPub. L. 104–188, set out as a note under section 101 of this title.
Amendment by section 1621(b)(8), (9) ofPub. L. 104–188effective Sept. 1, 1997, see section 1621(d) ofPub. L. 104–188, set out as a note under section 26 of this title.
Section 1907(a)(3) ofPub. L. 104–188, as amended by Pub. L. 105–34, title XI, § 1161(a),Aug. 5, 1997, 111 Stat. 987, provided that: “The amendments made by this subsection [amending this section] shall apply—
“(A) to taxable years beginning after December 31, 1996, or
“(B) at the election of the trustee of a trust, to taxable years ending after the date of the enactment of this Act [Aug. 20, 1996].
[Section 1161(b) ofPub. L. 105–34provided that: “The amendment made by subsection (a) [amending section 1907(a)(3) ofPub. L. 104–188, set out above] shall take effect as if included in the amendments made by section 1907(a) of the Small Business Job Protection Act of 1996 [Pub. L. 104–188].”]
Amendment by Pub. L. 102–90effective Jan. 1, 1992, see section 314(g)(1) ofPub. L. 102–90, as amended, set out as a note under section 31–2 of Title 2, The Congress.
Amendment by section 11812(b)(13) ofPub. L. 101–508applicable to property placed in service after Nov. 5, 1990, but not applicable to any property to which section 168 of this title does not apply by reason of subsec. (f)(5) ofsection 168, and not applicable to rehabilitation expenditures described in section 252(f)(5) ofPub. L. 99–514, see section 11812(c) ofPub. L. 101–508, set out as a note under section 42 of this title.
Section 603 of title VI of Pub. L. 101–194provided that: “The amendments made by this title [amending this section, sections 31–1 and 441i of Title 2, The Congress, and title V of the Ethics in Government Act of 1978, Pub. L. 95–521, set out in the Appendix to Title 5, Government Organization and Employees] shall take effect on January 1, 1991. Such amendments shall cease to be effective if the provisions of section 703 [5 U.S.C. 5318 note] are subsequently repealed, in which case the laws in effect before such amendments shall be deemed to be reenacted.”
Amendment by title I of Pub. L. 100–647effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) ofPub. L. 100–647, set out as a note under section 1 of this title.
Amendment by section 201(c), (d)(14) ofPub. L. 99–514applicable to property placed in service after Dec. 31, 1986, in taxable years ending after such date, with exceptions, see sections 203 and 204 ofPub. L. 99–514, set out as a note under section 168 of this title.
Amendment by section 201(c), (d)(14) ofPub. L. 99–514not applicable to any property placed in service before Jan. 1, 1994, if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) ofPub. L. 99–514, set out as a note under section 46 of this title.
Amendment by section 671(b)(3) ofPub. L. 99–514applicable to taxable years beginning after Dec. 31, 1986, see section 675 ofPub. L. 99–514, set out as an Effective Date note under section 860A of this title.
Amendment by section 673 ofPub. L. 99–514effective Jan. 1, 1992, but not applicable to any entity in existence on Dec. 31, 1991, except with respect to any entity as of the first day after Dec. 31, 1991, on which there is a substantial transfer of cash or other property to such entity, and for purposes of applying section 860F
(d) of this title, applicable to taxable years beginning after Dec. 31, 1986, see section 675(c) ofPub. L. 99–514, set out as an Effective Date note under section 860A of this title.
Section 1166(b) ofPub. L. 99–514provided that: “The amendment made by subsection (a) [amending this section] shall apply to years beginning after December 31, 1985.”
Amendment by sections 1802(a)(9)(C), 1810(l)(1)–(4), 1842(d) of Pub. L. 99–514effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 ofPub. L. 99–514, set out as a note under section 48 of this title.
Section 1810(l)(5)(B) ofPub. L. 99–514provided that: “The amendments made by this paragraph [amending this section] shall apply to periods after the date of the enactment of this Act [Oct. 22, 1986].”
Amendment by section 31(e) ofPub. L. 98–369effective, except as otherwise provided in section 31(g) ofPub. L. 98–369, as to property placed in service by the taxpayer after May 23, 1983, in taxable years ending after such date and to property placed in service by the taxpayer on or before May 23, 1983, if the lease to the tax-exempt entity is entered into after May 23, 1983, except that in the case of a service contract or other arrangement described in section 7701
(e) of this title with respect to which no party is a tax-exempt entity, section 7701
(e) shall not apply to (A) such contract or other arrangement if such contract or other arrangement was entered into before Nov. 5, 1983, or (B) any renewal or other extension of such contract or other arrangement pursuant to an option contained in such contract or other arrangement on Nov. 5, 1983, see section 31(g)(1), (13) ofPub. L. 98–369, set out as a note under section 168 of this title.
Amendment by section 43(a)(1) ofPub. L. 98–369applicable to taxable years ending after July 18, 1984, see section 44 ofPub. L. 98–369, set out as an Effective Date note under section 1271 of this title.
Amendment by section 53(c) ofPub. L. 98–369effective July 18, 1984, except as otherwise provided, see section 53(e)(3) ofPub. L. 98–369, as amended, set out as an Effective Date note under section 1059 of this title.
Amendment by section 75(c) ofPub. L. 98–369applicable to distributions, sales, and exchanges made after Mar. 31, 1984, in taxable years ending after such date, see section 75(e) ofPub. L. 98–369, set out as an Effective Date note under section 386 of this title.
Section 138(b) ofPub. L. 98–369, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) In general.—The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1984.
“(A) If an alien individual was not a resident of the United States as of the close of calendar year 1984, the determination of whether such individual meets the substantial presence test of section 7701(b)(3) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by this section) shall be made by only taking into account presence after 1984.
“(3) Transitional rule for applying lawful residence test.—In the case of any individual who—
“(B) was present in the United States at any time during 1984 while such individual was a lawful permanent resident of the United States (within the meaning of such section 7701
(b)(5)),
Amendment by section 412(b)(11) ofPub. L. 98–369applicable with respect to taxable years beginning after Dec. 31, 1984, see section 414(a)(1) ofPub. L. 98–369, set out as a note under section 6654 of this title.
Amendment by section 422(d)(3) ofPub. L. 98–369applicable with respect to divorce or separation instruments executed after Dec. 31, 1984, or executed before Jan. 1, 1985, but modified on or after Jan. 1, 1985, with express provision for application of amendment to modification, see section 422(e)(1), (2) ofPub. L. 98–369, set out as a note under section 71 of this title.
Amendment by section 474(r)(29)(K) ofPub. L. 98–369not applicable with respect to obligations issued before Jan. 1, 1984, see section 475(b) ofPub. L. 98–369, set out as a note under section 33 of this title.
Amendment by section 491(d)(53) ofPub. L. 98–369applicable to obligations issued after Dec. 31, 1983, see section 491(f)(1) ofPub. L. 98–369, set out as a note under section 62 of this title.
Section 526(c)(2) ofPub. L. 98–369provided that: “The amendment made by this subsection [amending this section] shall take effect on April 1, 1984.”
Amendment by section 104(d)(1) ofPub. L. 98–67applicable with respect to payments made after Dec. 31, 1983, see section 110(a) ofPub. L. 98–67, set out as a note under section 31 of this title.
Amendment by section 201(d)(10) ofPub. L. 97–248applicable to taxable years beginning after Dec. 31, 1982, see section 201(e)(1) ofPub. L. 97–248, set out as a note under section 5 of this title.
Section 336(b) ofPub. L. 97–248provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the day after the date of the enactment of this Act [Sept. 3, 1982].”
Amendment by Pub. L. 97–34applicable to estimated tax for taxable years beginning after Dec. 31, 1980, see section 725(d) ofPub. L. 97–34, set out as a note under section 871 of this title.
Amendment by section 157(k)(2) ofPub. L. 95–600applicable to taxable years beginning after Dec. 31, 1974, see section 157(k)(3) ofPub. L. 95–600, set out as a note under section 6058 of this title.
Amendment by section 701(cc)(2) ofPub. L. 95–600applicable to documents prepared after Dec. 31, 1976, see section 701(cc)(3) ofPub. L. 95–600, set out as a note under section 6695 of this title.
Section 1203(j) ofPub. L. 94–455provided that: “The amendments made by this section [enacting sections 6060, 6107, 6694, 6695, 6696, 7407, and 7427 of this title, renumbering former sections 7407 and 7427 as 7408 and 7428 of this title, respectively, and amending this section and sections 6109, 6503, 6504, and 6511 of this title] shall apply to documents prepared after December 31, 1976.”
Amendment by section 1906(a)(57), (b)(13)(A), (c)(3) ofPub. L. 94–455effective on first day of first month which begins more than ninety days after Oct. 4, 1976, see section 1906(d)(1) ofPub. L. 94–455, set out as a note under section 6013 of this title.
Amendment by Pub. L. 92–606applicable with respect to taxable years beginning after Dec. 31, 1972, see section 2 ofPub. L. 92–606, set out in part as an Effective Date note under section 931 of this title.
Amendment by section 432(c), (d) ofPub. L. 91–172effective for taxable years beginning after July 11, 1969, see section 432(e) ofPub. L. 91–172, set out as a note under section 593 of this title.
Amendment by section 960(j) ofPub. L. 91–172effective Dec. 30, 1969, see section 962(a) ofPub. L. 91–172, set out as a note under section 7441 of this title.
Amendment by section 204(a)(3) ofPub. L. 88–272applicable to group-term life insurance provided after Dec. 31, 1963, in taxable years ending after such date, see section 204(d) ofPub. L. 88–272, set out as an Effective Date note under section 79 of this title.
Amendment by section 234(b)(3) ofPub. L. 88–272applicable to taxable years beginning after Dec. 31, 1963, see section 234(c) ofPub. L. 88–272, set out as a note under section 1503 of this title.
Section 5(b) ofPub. L. 87–870provided that: “The amendment made by subsection (a) of this section [amending this section] shall apply with respect to taxable years beginning after the date of the enactment of the Revenue Act of 1962 [Oct. 16, 1962].”
Section 6(g)(3) ofPub. L. 87–834provided that: “The amendment made by subsection (c) [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Oct. 16, 1962].”
Amendment by Pub. L. 86–778effective Sept. 13, 1960, see section 103(v)(1) ofPub. L. 86–778, set out as an Effective Date of 1960 Amendment note under section 402 of Title 42, The Public Health and Welfare.
For provisions that nothing in amendment by section 11812(b)(13) ofPub. L. 101–508be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) ofPub. L. 101–508, set out as a note under section 45K of this title.
Coast Guard transferred to Department of Transportation and all functions, powers, and duties, relating to Coast Guard, of Secretary of the Treasury and of other offices and officers of Department of the Treasury transferred to Secretary of Transportation by Pub. L. 89–670, § 6(b)(1),Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) ofPub. L. 89–670, however, provided that notwithstanding such transfer of functions, Coast Guard shall operate as part of Navy in time of war or when President directs as provided in section 3 of Title 14, Coast Guard. See section 108 of Title 49, Transportation.
Pub. L. 96–605, title IV, § 402,Dec. 28, 1980, 94 Stat. 3532, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) In General.—An author or artist performing services under contract with a corporation shall be considered as an employee of the corporation for the purpose of applying the provisions specified in section 7701(a)(20) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], if, on December 31, 1977, such author or artist was a participant in one or more of the pension, profit-sharing or annuity plans of such corporation which are described in subsection (b)(2).
“(1) Contract.—The term ‘contract’ means a contract which during its term—
“(2) Corporation.—The term ‘corporation’ means a corporation which for at least 15 years prior to January 1, 1978, had in effect one or more pension, profit-sharing and annuity plans, each of which—
“(A) had contained from its inception a definition of the term ‘employee’ that included the category of ‘authors and artists under contract’, and
“(B) had been determined by the Secretary of the Treasury (taking into account the definition described in subparagraph (A)) to be a qualified plan within part I of subchapter D of chapter 1 of subtitle A of the Internal Revenue Code of 1986 [section 401 et seq. of this title] for all of such years.
“(c) Effective Date.—The provisions of this section shall apply to taxable years ending after December 31, 1980.”