Source: https://www.law.cornell.edu/uscode/text/26/898?qt-us_code_tabs=0
Timestamp: 2016-04-29 15:57:09
Document Index: 387590736

Matched Legal Cases: ['§\u202f898', '§\u202f7401', '§\u202f413', '§\u202f413', '§\u202f413', '§\u202f413', '§\u202f413', '§\u202f7401']

§ 898.
Taxable year of certain foreign corporations
(b) Specified foreign corporationFor purposes of this section—
(1) In generalThe term “specified foreign corporation” means any foreign corporation—
(A) In generalThe ownership requirements of this paragraph are met with respect to any foreign corporation if a United States shareholder owns, on each testing day, more than 50 percent of—
The term “United States shareholder” has the meaning given to such term by section 951(b), except that, in the case of a foreign corporation having related person insurance income (as defined in section 953(c)(2)), the Secretary may treat any person as a United States shareholder for purposes of this section if such person is treated as a United States shareholder under section 953(c)(1).
(1) In generalThe required year is—
(A) In generalFor purposes of this subsection, the term “majority U.S. shareholder year” means the taxable year (if any) which, on each testing day, constituted the taxable year of—
(B) Testing dayThe testing days shall be—
(Added Pub. L. 101–239, title VII, § 7401(a), Dec. 19, 1989, 103 Stat. 2355; amended Pub. L. 108–357, title IV, § 413(c)(13), Oct. 22, 2004, 118 Stat. 1507.)
2004—Subsec. (b)(1)(A). Pub. L. 108–357, § 413(c)(13)(A), amended subpar. (A) generally. Prior to amendment, subpar (A) read as follows:
Subsec. (b)(2)(B). Pub. L. 108–357, § 413(c)(13)(B), struck out “and sections 551(f) and 554, whichever are applicable,” after “section 958”.
Subsec. (b)(3). Pub. L. 108–357, § 413(c)(13)(C), reenacted heading without change, struck out “(A) In general” before “The term”, and struck out heading and text of subpar. (B). Text read as follows: “In the case of any foreign personal holding company (as defined in section 552) which is not a specified foreign corporation by reason of paragraph (1)(A)(i), the term ‘United States shareholder’ means any person who is treated as a United States shareholder under section 551.”
Subsec. (c). Pub. L. 108–357, § 413(c)(13)(D), reenacted heading without change and amended text of subsec. (c) generally, substituting provisions stating general rule and relating to 1-month deferral and majority U.S. shareholder year, consisting of pars. (1) to (3), for provisions stating general rule and relating to 1-month deferral and majority U.S. shareholder year, consisting of par. (1), and provisions relating to required year in the case of a foreign personal holding company, consisting of par. (2).
Pub. L. 101–239, title VII, § 7401(d), Dec. 19, 1989, 103 Stat. 2357, provided that:
The amendments made by this section [enacting this section and amending section 563 of this title] shall apply to taxable years of foreign corporations beginning after July 10, 1989.
“(2)Special rules.—If any foreign corporation is required by the amendments made by this section to change its taxable year for its first taxable year beginning after July 10, 1989—
such change shall be treated as having been made with the consent of the Secretary of the Treasury or his delegate, and
if, by reason of such change, any United States person is required to include in gross income for 1 taxable year amounts attributable to 2 taxable years of such foreign corporation, the amount which would otherwise be required to be included in gross income for such 1 taxable year by reason of the short taxable year of the foreign corporation resulting from such change shall be included in gross income ratably over the 4-taxable-year period beginning with such 1 taxable year.”