§ 7701. — Definitions.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 26USC7701]
TITLE 26--INTERNAL REVENUE CODE
Subtitle F--Procedure and Administration
CHAPTER 79--DEFINITIONS
Sec. 7701. Definitions
(a) When used in this title, where not otherwise distinctly
expressed or manifestly incompatible with the intent thereof--
(1) Person
The term ``person'' shall be construed to mean and include an
individual, a trust, estate, partnership, association, company or
corporation.
(2) 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.
(3) Corporation
The term ``corporation'' includes associations, joint-stock
companies, and insurance companies.
(4) 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.
(5) Foreign
The term ``foreign'' when applied to a corporation or
partnership means a corporation or partnership which is not
domestic.
(6) Fiduciary
The term ``fiduciary'' means a guardian, trustee, executor,
administrator, receiver, conservator, or any person acting in any
fiduciary capacity for any person.
(7) Stock
The term ``stock'' includes shares in an association, joint-
stock company, or insurance company.
(8) Shareholder
The term ``shareholder'' includes a member in an association,
joint-stock company, or insurance company.
(9) United States
The term ``United States'' when used in a geographical sense
includes only the States and the District of Columbia.
(10) 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.
(11) 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.
(B) Secretary
The term ``Secretary'' means the Secretary of the Treasury
or his delegate.
(12) Delegate
(A) In general
The term ``or his delegate''--
(i) when used with reference to the Secretary of the
Treasury, means any officer, employee, or agency of the
Treasury Department duly authorized by the Secretary of the
Treasury directly, or indirectly by one or more
redelegations of authority, to perform the function
mentioned or described in the context; and
(ii) when used with reference to any other official of
the United States, shall be similarly construed.
(B) 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.
(13) Commissioner
The term ``Commissioner'' means the Commissioner of Internal
Revenue.
(14) Taxpayer
The term ``taxpayer'' means any person subject to any internal
revenue tax.
(15) 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.
(16) 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.
(17) Husband and wife
As used in sections 152(b)(4), 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.''
(18) 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).
(19) 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--
(A) 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;
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(B) the business of which consists principally of acquiring
the savings of the public and investing in loans; and
(C) at least 60 percent of the amount of the total assets of
which (at the close of the taxable year) consists of--
(i) cash,
(ii) obligations of the United States or of a State or
political subdivision thereof, and stock or obligations of a
corporation which is an instrumentality of the United States
or of a State or political subdivision thereof, but not
including obligations the interest on which is excludable
from gross income under section 103,
(iii) certificates of deposit in, or obligations of, a
corporation organized under a State law which specifically
authorizes such corporation to insure the deposits or share
accounts of member associations,
(iv) loans secured by a deposit or share of a member,
(v) loans (including redeemable ground rents, as defined
in section 1055) secured by an interest in real property
which is (or, from the proceeds of the loan, will become)
residential real property or real property used primarily
for church purposes, loans made for the improvement of
residential real property or real property used primarily
for church purposes, provided that for purposes of this
clause, residential real property shall include single or
multifamily dwellings, facilities in residential
developments dedicated to public use or property used on a
nonprofit basis for residents, and mobile homes not used on
a transient basis,
(vi) loans secured by an interest in real property
located within an urban renewal area to be developed for
predominantly residential use under an urban renewal plan
approved by the Secretary of Housing and Urban Development
under part A or part B of title I of the Housing Act of
1949, as amended, or located within any area covered by a
program eligible for assistance under section 103 of the
Demonstration Cities and Metropolitan Development Act of
1966, as amended, and loans made for the improvement of any
such real property,
(vii) loans secured by an interest in educational,
health, or welfare institutions or facilities, including
structures designed or used primarily for residential
purposes for students, residents, and persons under care,
employees, or members of the staff of such institutions or
facilities,
(viii) property acquired through the liquidation of
defaulted loans described in clause (v), (vi), or (vii),
(ix) loans made for the payment of expenses of college
or university education or vocational training, in
accordance with such regulations as may be prescribed by the
Secretary,
(x) property used by the association in the conduct of
the business described in subparagraph (B), and
(xi) any regular or residual interest in a REMIC, and
any regular interest in a FASIT, but only in the proportion
which the assets of such REMIC or FASIT 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 or FASIT are assets described in
clauses (i) through (x), the entire interest in the REMIC or
FASIT shall qualify.
At the election of the taxpayer, the percentage specified in
this subparagraph shall be applied on the basis of the average
assets outstanding during the taxable year, in lieu of the close
of the taxable year, computed under regulations prescribed by
the Secretary. For purposes of clause (v), if a multifamily
structure securing a loan is used in part for nonresidential
purposes, the entire loan is deemed a residential real property
loan if the planned residential use exceeds 80 percent of the
property's planned use (determined as of the time the loan is
made). For purposes of clause (v), loans made to finance the
acquisition or development of land shall be deemed to be loans
secured by an interest in residential real property if, under
regulations prescribed by the Secretary, there is reasonable
assurance that the property will become residential real
property within a period of 3 years from the date of acquisition
of such land; but this sentence shall not apply for any taxable
year unless, within such 3-year period, such land becomes
residential real property. 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).
(20) 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.
(21) Levy
The term ``levy'' includes the power of distraint and seizure by
any means.
(22) Attorney General
The term ``Attorney General'' means the Attorney General of the
United States.
(23) 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.
(24) Fiscal year
The term ``fiscal year'' means an accounting period of 12 months
ending on the last day of any month other than December.
(25) 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.
(26) Trade or business
The term ``trade or business'' includes the performance of the
functions of a public office.
(27) Tax Court
The term ``Tax Court'' means the United States Tax Court.
(28) 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.
(29) 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.
(30) United States person
The term ``United States person'' means--
(A) a citizen or resident of the United States,
(B) a domestic partnership,
(C) a domestic corporation,
(D) any estate (other than a foreign estate, within the
meaning of paragraph (31)), and
(E) any trust if--
(i) a court within the United States is able to exercise
primary supervision over the administration of the trust,
and
(ii) one or more United States persons have the
authority to control all substantial decisions of the trust.
(31) 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.
(B) Foreign trust
The term ``foreign trust'' means any trust other than a
trust described in subparagraph (E) of paragraph (30).
(32) Cooperative bank
The term ``cooperative bank'' means an institution without
capital stock organized and operated for mutual purposes and without
profit, which--
(A) either--
(i) is an insured institution within the meaning of
section 401(a) \2\ of the National Housing Act (12 U.S.C.,
sec. 1724(a)), or
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(ii) is subject by law to supervision and examination by
State or Federal authority having supervision over such
institutions, and
(B) meets the requirements of subparagraphs (B) and (C) of
paragraph (19) of this subsection (relating to definition of
domestic building and loan association).
In determining whether an institution meets the requirements
referred to in subparagraph (B) of this paragraph, any reference to
an association or to a domestic building and loan association
contained in paragraph (19) shall be deemed to be a reference to
such institution.
(33) Regulated public utility
The term ``regulated public utility'' means--
(A) A corporation engaged in the furnishing or sale of--
(i) electric energy, gas, water, or sewerage disposal
services, or
(ii) transportation (not included in subparagraph (C))
on an intrastate, suburban, municipal, or interurban
electric railroad, on an intrastate, municipal, or suburban
trackless trolley system, or on a municipal or suburban bus
system, or
(iii) transportation (not included in clause (ii)) by
motor vehicle--
if the rates for such furnishing or sale, as the case may be,
have been established or approved by a State or political
subdivision thereof, by an agency or instrumentality of the
United States, by a public service or public utility commission
or other similar body of the District of Columbia or of any
State or political subdivision thereof, or by a foreign country
or an agency or instrumentality or political subdivision
thereof.
(B) A corporation engaged as a common carrier in the
furnishing or sale of transportation of gas by pipe line, if
subject to the jurisdiction of the Federal Energy Regulatory
Commission.
(C) 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.
(D) A corporation engaged in the furnishing or sale of
telephone or telegraph service, if the rates for such furnishing
or sale meet the requirements of subparagraph (A).
(E) A corporation engaged in the furnishing or sale of
transportation as a common carrier by air, subject to the
jurisdiction of the Secretary of Transportation.
(F) A corporation engaged in the furnishing or sale of
transportation by a water carrier subject to jurisdiction under
subchapter II of chapter 135 of title 49.
(G) 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.
(H) A common parent corporation which is a common carrier by
railroad subject to part A of subtitle IV of title 49 if at
least 80 percent of its gross income (computed without regard to
capital gains or losses) is derived directly or indirectly from
sources described in subparagraphs (A) through (F), inclusive.
For purposes of the preceding sentence, dividends and interest,
and income from leases described in subparagraph (G), received
from a regulated public utility shall be considered as derived
from sources described in subparagraphs (A) through (F),
inclusive, if the regulated public utility is a member of an
affiliated group (as defined in section 1504) which includes the
common parent corporation.
The term ``regulated public utility'' does not (except as provided
in subparagraphs (G) and (H)) include a corporation described in
subparagraphs (A) through (F), inclusive, unless 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
sources described in subparagraphs (A) through (F), inclusive. If
the taxpayer establishes to the satisfaction of the Secretary that
(i) its revenue from regulated rates described in subparagraph (A)
or (D) and its revenue derived from unregulated rates are derived
from the operation of a single interconnected and coordinated system
or from the operation of more than one such system, and (ii) the
unregulated rates have been and are substantially as favorable to
users and consumers as are the regulated rates, then such revenue
from such unregulated rates shall be considered, for purposes of the
preceding sentence, as income derived from sources described in
subparagraph (A) or (D).
[(34) Repealed. Pub. L. 98-369, div. A, title IV,
Sec. 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.
(36) Income tax return preparer
(A) In general
The term ``income 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 subtitle
A or any claim for refund of tax imposed by subtitle A. 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.
(B) Exceptions
A person shall not be an ``income tax return preparer''
merely because such person--
(i) furnishes typing, reproducing, or other mechanical
assistance,
(ii) prepares a return or claim for refund of the
employer (or of an officer or employee of the employer) by
whom he is regularly and continuously employed,
(iii) prepares as a fiduciary a return or claim for
refund for any person, or
(iv) prepares a claim for refund for a taxpayer in
response to any notice of deficiency issued to such taxpayer
or in response to any waiver of restriction after the
commencement of an audit of such taxpayer or another
taxpayer if a determination in such audit of such other
taxpayer directly or indirectly affects the tax liability of
such taxpayer.
(37) Individual retirement plan
The term ``individual retirement plan'' means--
(A) an individual retirement account described in section
408(a), and
(B) an individual retirement annuity described in section
408(b).
(38) Joint return
The term ``joint return'' means a single return made jointly
under section 6013 by a husband and wife.
(39) 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--
(A) jurisdiction of courts, or
(B) enforcement of summons.
(40) 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.
(B) 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.
(41) TIN
The term ``TIN'' means the identifying number assigned to a
person under section 6109.
(42) Substituted basis property
The term ``substituted basis property'' means property which
is--
(A) transferred basis property, or
(B) exchanged basis property.
(43) 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.
(44) 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.
(45) 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.
(46) 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.
(b) Definition of resident alien and nonresident alien
(1) In general
For purposes of this title (other than subtitle B)--
(A) 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):
(i) Lawfully admitted for permanent residence
Such individual is a lawful permanent resident of the
United States at any time during such calendar year.
(ii) Substantial presence test
Such individual meets the substantial presence test of
paragraph (3).
(iii) First year election
Such individual makes the election provided in paragraph
(4).
(B) 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)).
(2) Special rules for first and last year of residency
(A) First year of residency
(i) In general
If an alien individual is a resident of the United
States under paragraph (1)(A) with respect to any calendar
year, but was not a resident of the United States at any
time during the preceding calendar year, such alien
individual shall be treated as a resident of the United
States only for the portion of such calendar year which
begins on the residency starting date.
(ii) Residency starting date for individuals
lawfully admitted for permanent residence
In the case of an individual who is a lawfully permanent
resident of the United States at any time during the
calendar year, but does not meet the substantial presence
test of paragraph (3), the residency starting date shall be
the first day in such calendar year on which he was present
in the United States while a lawful permanent resident of
the United States.
(iii) Residency starting date for individuals
meeting substantial presence test
In the case of an individual who meets the substantial
presence test of paragraph (3) with respect to any calendar
year, the residency starting date shall be the first day
during such calendar year on which the individual is present
in the United States.
(iv) Residency starting date for individuals making
first year election
In the case of an individual who makes the election
provided by paragraph (4) with respect to any calendar year,
the residency starting date shall be the 1st day during such
calendar year on which the individual is treated as a
resident of the United States under that paragraph.
(B) 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--
(i) such portion is after the last day in such calendar
year on which the individual was present in the United
States (or, in the case of an individual described in
paragraph (1)(A)(i), the last day on which he was so
described),
(ii) during such portion the individual has a closer
connection to a foreign country than to the United States,
and
(iii) the individual is not a resident of the United
States at any time during the next calendar year.
(C) Certain nominal presence disregarded
(i) In general
For purposes of subparagraphs (A)(iii) and (B), an
individual shall not be treated as present in the United
States during any period for which the individual
establishes that he has a closer connection to a foreign
country than to the United States.
(ii) Not more than 10 days disregarded
Clause (i) shall not apply to more than 10 days on which
the individual is present in the United States.
(3) 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--
(i) such individual was present in the United States on
at least 31 days during the calendar year, and
(ii) the sum of the number of days on which such
individual was present in the United States during the
current year and the 2 preceding calendar years (when
multiplied by the applicable multiplier determined under the
following table) equals or exceeds 183 days:
The applicable
In the case of days in: multiplier is:
Current year...................... 1
1st preceding year................ \1/3\
2nd preceding year................ \1/6\
(B) 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--
(i) such individual is present in the United States on
fewer than 183 days during the current year, and
(ii) 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.
(C) 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--
(i) such individual had an application for adjustment of
status pending, or
(ii) such individual took other steps to apply for
status as a lawful permanent resident of the United States.
(D) 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--
(i) such individual is an exempt individual for such
day, or
(ii) such individual was unable to leave the United
States on such day because of a medical condition which
arose while such individual was present in the United
States.
(4) First-year election
(A) An alien individual shall be deemed to meet the requirements
of this subparagraph if such individual--
(i) is not a resident of the United States under clause (i)
or (ii) of paragraph (1)(A) with respect to a calendar year
(hereinafter referred to as the ``election year''),
(ii) was not a resident of the United States under paragraph
(1)(A) with respect to the calendar year immediately preceding
the election year,
(iii) is a resident of the United States under clause (ii)
of paragraph (1)(A) with respect to the calendar year
immediately following the election year, and
(iv) is both--
(I) present in the United States for a period of at
least 31 consecutive days in the election year, and
(II) present in the United States during the period
beginning with the first day of such 31-day period and
ending with the last day of the election year (hereinafter
referred to as the ``testing period'') for a number of days
equal to or exceeding 75 percent of the number of days in
the testing period (provided that an individual shall be
treated for purposes of this subclause as present in the
United States for a number of days during the testing period
not exceeding 5 days in the aggregate, notwithstanding his
absence from the United States on such days).
(B) An alien individual who meets the requirements of
subparagraph (A) shall, if he so elects, be treated as a resident of
the United States with respect to the election year.
(C) An alien individual who makes the election provided by
subparagraph (B) shall be treated as a resident of the United States
for the portion of the election year which begins on the 1st day of
the earliest testing period during such year with respect to which
the individual meets the requirements of clause (iv) of subparagraph
(A).
(D) The rules of subparagraph (D)(i) of paragraph (3) shall
apply for purposes of determining an individual's presence in the
United States under this paragraph.
(E) An election under subparagraph (B) shall be made on the
individual's tax return for the election year, provided that such
election may not be made before the individual has met the
substantial presence test of paragraph (3) with respect to the
calendar year immediately following the election year.
(F) An election once made under subparagraph (B) remains in
effect for the election year, unless revoked with the consent of the
Secretary.
(5) Exempt individual defined
For purposes of this subsection--
(A) In general
An individual is an exempt individual for any day if, for
such day, such individual is--
(i) a foreign government-related individual,
(ii) a teacher or trainee,
(iii) a student, or
(iv) a professional athlete who is temporarily in the
United States to compete in a charitable sports event
described in section 274(l)(1)(B).
(B) Foreign government-related individual
The term ``foreign government-related individual'' means any
individual temporarily present in the United States by reason
of--
(i) diplomatic status, or a visa which the Secretary
(after consultation with the Secretary of State) determines
represents full-time diplomatic or consular status for
purposes of this subsection,
(ii) being a full-time employee of an international
organization, or
(iii) being a member of the immediate family of an
individual described in clause (i) or (ii).
(C) Teacher or trainee
The term ``teacher or trainee'' means any individual--
(i) who is temporarily present in the United States
under subparagraph (J) or (Q) of section 101(15) of the
Immigration and Nationality Act (other than as a student),
and
(ii) who substantially complies with the requirements
for being so present.
(D) Student
The term ``student'' means any individual--
(i) who is temporarily present in the United States--
(I) under subparagraph (F) or (M) of section 101(15)
of the Immigration and Nationality Act, or
(II) as a student under subparagraph (J) or (Q) of
such section 101(15), and
(ii) who substantially complies with the requirements
for being so present.
(E) Special rules for teachers, trainees, and students
(i) Limitation on teachers and trainees
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''.
(ii) Limitation on students
For any calendar year after the 5th calendar year for
which an individual was an exempt individual under clause
(ii) or (iii) of subparagraph (A), such individual shall not
be treated as an exempt individual by reason of clause (iii)
of subparagraph (A), unless such individual establishes to
the satisfaction of the Secretary that such individual does
not intend to permanently reside in the United States and
that such individual meets the requirements of subparagraph
(D)(ii).
(6) Lawful permanent resident
For purposes of this subsection, an individual is a lawful
permanent resident of the United States at any time if--
(A) such individual has the status of having been lawfully
accorded the privilege of residing permanently in the United
States as an immigrant in accordance with the immigration laws,
and
(B) such status has not been revoked (and has not been
administratively or judicially determined to have been
abandoned).
(7) Presence in the United States
For purposes of this subsection--
(A) 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.
(B) 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.
(C) 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.
(D) 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.
(8) 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.
(9) 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.
(B) Fiscal year taxpayer
If--
(i) an individual is treated under paragraph (1) as a
resident of the United States for any calendar year, and
(ii) after the application of subparagraph (A), such
individual has a taxable year other than a calendar year,
he shall be treated as a resident of the United States with
respect to any portion of a taxable year which is within such
calendar year.
(10) Coordination with section 877
If--
(A) an alien individual was treated as a resident of the
United States during any period which includes at least 3
consecutive calendar years (hereinafter referred to as the
``initial residency period''), and
(B) such individual ceases to be treated as a resident of
the United States but subsequently becomes a resident of the
United States before the close of the 3rd calendar year
beginning after the close of the initial residency period,
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.
(11) Regulations
The Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out the purposes of this
subsection.
(c) 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.
(d) 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.
(e) Treatment of certain contracts for providing services, etc.
For purposes of chapter 1--
(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--
(A) the service recipient is in physical possession of the
property,
(B) the service recipient controls the property,
(C) the service recipient has a significant economic or
possessory interest in the property,
(D) the service provider does not bear any risk of
substantially diminished receipts or substantially increased
expenditures if there is nonperformance under the contract,
(E) the service provider does not use the property
concurrently to provide significant services to entities
unrelated to the service recipient, and
(F) the total contract price does not substantially exceed
the rental value of the property for the contract period.
(2) 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).
(3) 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--
(i) with respect to--
(I) the operation of a qualified solid waste
disposal facility,
(II) the sale to the service recipient of electrical
or thermal energy produced at a cogeneration or
alternative energy facility, or
(III) the operation of a water treatment works
facility, and
(ii) which purports to be a service contract,
shall be treated as a service contract.
(B) 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.
(C) 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.
(D) 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.
(E) 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.
(4) 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--
(i) the service recipient (or a related entity) operates
such facility,
(ii) the service recipient (or a related entity) bears
any significant financial burden if there is nonperformance
under the contract or arrangement (other than for reasons
beyond the control of the service provider),
(iii) the service recipient (or a related entity)
receives any significant financial benefit if the operating
costs of such facility are less than the standards of
performance or operation under the contract or arrangement,
or
(iv) the service recipient (or a related entity) has an
option to purchase, or may be required to purchase, all or a
part of such facility at a fixed and determinable price
(other than for fair market value).
For purposes of this paragraph, the term ``related entity'' has
the same meaning as when used in section 168(h).
(B) 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--
(i) any right of a service recipient to inspect any
facility, to exercise any sovereign power the service
recipient may possess, or to act in the event of a breach of
contract by the service provider, or
(ii) any allocation of any financial burden or benefits
in the event of any change in any law.
(C) Special rules for application of subparagraph (A) in the
case of certain events
(i) Temporary shut-downs, etc.
For purposes of clause (ii) of subparagraph (A), there
shall not be taken into account any temporary shut-down of
the facility for repairs, maintenance, or capital
improvements, or any financial burden caused by the
bankruptcy or similar financial difficulty of the service
provider.
(ii) Reduced costs
For purposes of clause (iii) of subparagraph (A), there
shall not be taken into account any significant financial
benefit merely because payments by the service recipient
under the contract or arrangement are decreased by reason of
increased production or efficiency or the recovery of energy
or other products.
(5) 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--
(A) such property is operated by or for an organization
described in paragraph (3) or (4) of section 501(c), and
(B) 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 \3\ Act of 1990).
---------------------------------------------------------------------------
\3\ So in original. Probably should be ``Reconciliation''.
---------------------------------------------------------------------------
(6) Regulations
The Secretary may prescribe such regulations as may be necessary
or appropriate to carry out the provisions of this subsection.
(f) 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--
(1) the linking of borrowing to investment, or
(2) diminishing risks,
through the use of related persons, pass-thru entities, or other
intermediaries.
(g) 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.
(h) 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--
(A) such agreement shall be treated as a lease if (but for
such terminal rental adjustment clause) such agreement would be
treated as a lease under this title, and
(B) the lessee shall not be treated as the owner of the
property subject to an agreement during any period such
agreement is in effect.
(2) Qualified motor vehicle operating agreement defined
For purposes of this subsection--
(A) 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.
(B) Minimum liability of lessor
An agreement meets the requirements of this subparagraph if
under such agreement the sum of--
(i) the amount the lessor is personally liable to repay,
and
(ii) the net fair market value of the lessor's interest
in any property pledged as security for property subject to
the agreement,
equals or exceeds all amounts borrowed to finance the
acquisition of property subject to the agreement. There shall
not be taken into account under clause (ii) any property pledged
which is property subject to the agreement or property directly
or indirectly financed by indebtedness secured by property
subject to the agreement.
(C) 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--
(i) under which the lessee certifies, under penalty of
perjury, that it intends that more than 50 percent of the
use of the property subject to such agreement is to be in a
trade or business of the lessee, and
(ii) which clearly and legibly states that the lessee
has been advised that it will not be treated as the owner of
the property subject to the agreement for Federal income tax
purposes.
(D) 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.
(3) 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.
(B) 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).
(i) 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.
(2) Taxable mortgage pool defined
For purposes of this title--
(A) In general
Except as otherwise provided in this paragraph, a taxable
mortgage pool is any entity (other than a REMIC or a FASIT) if--
(i) substantially all of the assets of such entity
consists of debt obligations (or interests therein) and more
than 50 percent of such debt obligations (or interests)
consists of real estate mortgages (or interests therein),
(ii) such entity is the obligor under debt obligations
with 2 or more maturities, and
(iii) under the terms of the debt obligations referred
to in clause (ii) (or underlying arrangement), payments on
such debt obligations bear a relationship to payments on the
debt obligations (or interests) referred to in clause (i).
(B) 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.
(C) 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.
(D) 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.
(3) Treatment of certain REIT's
If--
(A) a real estate investment trust is a taxable mortgage
pool, or
(B) a qualified REIT subsidiary (as defined in section
856(i)(2)) of a real estate investment trust is a taxable
mortgage pool,
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.
(j) Tax treatment of Federal Thrift Savings Fund
(1) In general
For purposes of this title--
(A) the Thrift Savings Fund shall be treated as a trust
described in section 401(a) which is exempt from taxation under
section 501(a);
(B) any contribution to, or distribution from, the Thrift
Savings Fund shall be treated in the same manner as
contributions to or distributions from such a trust; and
(C) 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.
(2) 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.
(3) 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(a) of this title.
(4) 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.
(5) 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.
(k) 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(c)--
(1) such payment shall not be treated as received by such
officer or employee for all purposes of this title and for all
purposes of any tax law of a State or political subdivision thereof,
and
(2) no deduction shall be allowed under any provision of this
title (or of any tax law of a State or political subdivision
thereof) to such officer or employee by reason of having such
payment made to such organization.
For purposes of this subsection, a Senator, a Representative in, or a
Delegate or Resident Commissioner to, the Congress shall be treated as
an officer or employee of the Federal Government.
(l) 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.
(m) 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.
(n) Cross references
(1) Other definitions
For other definitions, see the following sections of Title 1
of the United States Code:
(1) Singular as including plural, section 1.
(2) Plural as including singular, section 1.
(3) Masculine as including feminine, section 1.
(4) Officer, section 1.
(5) Oath as including affirmation, section 1.
(6) County as including parish, section 2.
(7) Vessel as including all means of water
transportation, section 3.
(8) Vehicle as including all means of land
transportation, section 4.
(9) Company or association as including successors and
assigns, section 5.
(2) Effect of cross references
For effect of cross references in this title, see section
7806(a).
(Aug. 16, 1954, ch. 736, 68A Stat. 911; Pub. L. 86-70, Sec. 22(g), (h),
June 25, 1959, 73 Stat. 146; Pub. L. 86-624, Sec. 18(i), (j), July 12,
1960, 74 Stat. 416; Pub. L. 86-778, title I, Sec. 103(t), Sept. 13,
1960, 74 Stat. 941; Pub. L. 87-834, Secs. 6(c), 7(h), Oct. 16, 1962, 76
Stat. 982, 988; Pub. L. 87-870, Sec. 5(a), Oct. 23, 1962, 76 Stat. 1161;
Pub. L. 88-272, title II, Secs. 204(a)(3), 234(b)(3), Feb. 26, 1964, 78
Stat. 36, 114; Pub. L. 89-368, title I, Sec. 102(b)(5), Mar. 15, 1966,
80 Stat. 64; Pub. L. 89-809, title I, Sec. 103(l)(1), Nov. 13, 1966, 80
Stat. 1554; Pub. L. 90-364, title I, Sec. 103(e)(6), June 28, 1968, 82
Stat. 264; Pub. L. 91-172, title IV, Sec. 432(c), (d), title IX,
Sec. 960(j), Dec. 30, 1969, 83 Stat. 622, 623, 735; Pub. L. 92-606,
Sec. 1(f)(4), Oct. 31, 1972, 86 Stat. 1497; Pub. L. 93-406, title III,
Sec. 3043, Sept. 2, 1974, 88 Stat. 1003; Pub. L. 94-455, title XII,
Sec. 1203(a), title XIX, Sec. 1906(a)(57), (b)(13)(A), (c)(3), Oct. 4,
1976, 90 Stat. 1688, 1832, 1834, 1835; Pub. L. 95-600, title I,
Sec. 157(k)(2), title VII, Sec. 701(cc)(2), Nov. 6, 1978, 92 Stat. 2809,
2923; Pub. L. 97-34, title VII, Sec. 725(c)(4), Aug. 13, 1981, 95 Stat.
346; Pub. L. 97-248, title II, Sec. 201(d)(10), formerly
Sec. 201(c)(10), title III, Secs. 307(a)(17), 308(a), 336(a), Sept. 3,
1982, 96 Stat. 421, 590, 591, 628, renumbered Sec. 201(d)(10) and
amended Pub. L. 97-448, title III, Sec. 306(a)(1)(A)(i), (b)(3), Jan.
12, 1983, 96 Stat. 2400, 2406; Pub. L. 97-449, Sec. 5(e), Jan. 12, 1983,
96 Stat. 2442; Pub. L. 97-473, title II, Sec. 203, Jan. 14, 1983, 96
Stat. 2611; Pub. L. 98-67, title I, Secs. 102(a), 104(d)(1), Aug. 5,
1983, 97 Stat. 369, 379; Pub. L. 98-216, Sec. 3(c)(2), Feb. 14, 1984, 98
Stat. 6; Pub. L. 98-369, div. A, title I, Secs. 31(e), 43(a)(1), 53(c),
75(c), 138(a), title IV, Secs. 412(b)(11), 422(d)(3), 474(r)(29)(K),
491(d)(53), title V, Sec. 526(c)(1), July 18, 1984, 98 Stat. 518, 558,
567, 595, 672, 792, 798, 845, 852, 874; Pub. L. 98-443, Sec. 9(q), Oct.
4, 1984, 98 Stat. 1708; Pub. L. 99-514, title II, Sec. 201(c), (d)(14),
title VI, Secs. 671(b)(3), 673, title XI, Secs. 1137, 1147(a), 1166(a),
title XVIII, Secs. 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, Sec. 101(m) [title VI,
Sec. 624(a)], Dec. 22, 1987, 101 Stat. 1329-390, 1329-429; Pub. L. 100-
647, Sec. 1(c), title I, Secs. 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, Sec. 602, Nov. 30, 1989, 103 Stat. 1762; Pub. L. 101-508, title XI,
Secs. 11704(a)(34), 11812(b)(13), Nov. 5, 1990, 104 Stat. 1388-519,
1388-536; Pub. L. 102-90, title III, Sec. 314(e), Aug. 14, 1991, 105
Stat. 470; Pub. L. 102-318, title V, Sec. 521(b)(43), July 3, 1992, 106
Stat. 313; Pub. L. 103-66, title XIII, Sec. 13238, Aug. 10, 1993, 107
Stat. 508; Pub. L. 103-296, title III, Sec. 320(a)(3), Aug. 15, 1994,
108 Stat. 1535; Pub. L. 104-88, title III, Sec. 304(e), Dec. 29, 1995,
109 Stat. 944; Pub. L. 104-188, title I, Secs. 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, Secs. 1151(a), 1174(b), title XVI, Sec. 1601(i)(3)(A),
Aug. 5, 1997, 111 Stat. 986, 989, 1093; Pub. L. 106-554, Sec. 1(a)(7)
[title IV, Sec. 401(i)], Dec. 21, 2000, 114 Stat. 2763, 2763A-650; Pub.
L. 107-16, title V, Sec. 542(e)(3), June 7, 2001, 115 Stat. 85.)
Amendment of Subsection (a)
Pub. L. 107-16, title V, Sec. 542(e)(3), (f)(1), title IX,
Sec. 901, June 7, 2001, 115 Stat. 85, 86, 150, provided that,
applicable to estates of decedents dying after Dec. 31, 2009,
subsection (a) of this section is temporarily amended by adding at
the end the following new paragraph:
(47) Executor
The term ``executor'' means the executor or administrator of the
decedent, or, if there is no executor or administrator appointed,
qualified, and acting within the United States, then any person in
actual or constructive possession of any property of the decedent.
See Effective and Termination Dates of 2001 Amendment note
below.
References in Text
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,
Sec. 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
(Sec. 1450 et seq.) and part B (Sec. 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 (Sec. 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, Sec. 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 (Sec. 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
(Sec. 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(a)(15) of Title 8, Aliens
and Nationality.
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.
The date of the enactment of the Revenue Reconciliation Act of 1990,
referred to in subsec. (e)(5)(B), is the date of enactment of Pub. L.
101-508, which was approved Nov. 5, 1990.
Section 209 of the Social Security Act, referred to in subsec.
(j)(3), is classified to section 409 of Title 42, The Public Health and
Welfare.
Section 501(b) of the Ethics in Government Act of 1978, referred to
in subsec. (k), is section 501(b) of Pub. L. 95-521, which is set out in
the Appendix to Title 5, Government Organization and Employees.
The date of the enactment of the Commodity Futures Modernization Act
of 2000, referred to in subsec. (m), is the date of enactment of Pub. L.
106-554, which was approved Dec. 21, 2000.
Amendments
2000--Subsecs. (m), (n). Pub. L. 106-554 added subsec. (m) and
redesignated former subsec. (m) as (n).
1997--Subsec. (a)(4). Pub. L. 105-34, Sec. 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, Sec. 1601(i)(3)(A),
substituted ``persons'' for ``fiduciaries''.
Subsec. (b)(7)(A). Pub. L. 105-34, Sec. 1174(b)(2), substituted ``,
(C), or (D)'' for ``or (C)''.
Subsec. (b)(7)(D). Pub. L. 105-34, Sec. 1174(b)(1), added subpar.
(D).
1996--Subsec. (a)(19)(C)(xi). Pub. L. 104-188, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 1621(b)(9), inserted ``or a
FASIT'' after ``a REMIC'' in introductory provisions.
1995--Subsec. (a)(33)(B). Pub. L. 104-88, Sec. 304(e)(1),
substituted ``Federal Energy Regulatory Commission'' for ``Federal Power
Commission''.
Subsec. (a)(33)(C)(i). Pub. L. 104-88, Sec. 304(e)(2), substituted
``Surface Transportation Board'' for ``Interstate Commerce Commission''.
Subsec. (a)(33)(C)(ii). Pub. L. 104-88, Sec. 304(e)(3), substituted
``Federal Energy Regulatory Commission'' for ``Interstate Commerce
Commission''.
Subsec. (a)(33)(F). Pub. L. 104-88, Sec. 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, Sec. 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, Sec. 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. 103-296 substituted
``(J) or (Q)'' for ``(J)''.
1993--Subsecs. (l), (m). Pub. L. 103-66 added subsec. (l) and
redesignated former subsec. (l) as (m).
1992--Subsec. (j)(1)(C). Pub. L. 102-318 substituted ``402(e)(3)''
for ``402(a)(8)''.
1991--Subsec. (k). Pub. L. 102-90 amended 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, Sec. 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, Sec. 11704(a)(34), substituted
``(C) subject to section 401(k)(4)(B) and any dollar limitation on the
application of section 402(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. 101-194 added subsec. (k) and
redesignated former subsec. (k) as (l).
1988--Subsec. (a)(19). Pub. L. 100-647, Sec. 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, Sec. 1006(t)(12),
substituted ``are assets described'' for ``are loans described''.
Subsec. (a)(20). Pub. L. 100-647, Sec. 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, Sec. 1(c), substituted ``Internal
Revenue Code of 1986'' for ``Internal Revenue Code of 1954''.
Subsec. (b)(5)(A)(iv). Pub. L. 100-647, Sec. 1018(g)(3), substituted
``section 274(l)(1)(B)'' for ``section 274(k)(2)''.
Subsec. (b)(5)(D)(i)(I). Pub. L. 100-647, Sec. 1001(d)(2)(D),
substituted ``subparagraph (F) or (M)'' for ``subparagraph (F)''.
Subsec. (e)(5). Pub. L. 100-647, Sec. 1002(a)(2), made technical
correction to language of Pub. L. 99-514, Sec. 201(d)(14)(B), see 1986
Amendment note below.
Subsec. (j)(1)(C). Pub. L. 100-647, Sec. 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, Sec. 101(m) [title VI,
Sec. 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) of Pub. L. 100-647 which 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, Sec. 101(m) [title VI,
Sec. 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, Sec. 1842(d), inserted
reference to section 2516.
Subsec. (a)(19)(C)(xi). Pub. L. 99-514, Sec. 671(b)(3), added cl.
(xi).
Subsec. (a)(20). Pub. L. 99-514, Sec. 1166(a), inserted reference to
section 125.
Subsec. (a)(46). Pub. L. 99-514, Sec. 1137, inserted last sentence.
Subsec. (b)(1)(A). Pub. L. 99-514, Sec. 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, Sec. 1810(l)(3), added cl.
(iv).
Subsec. (b)(4). Pub. L. 99-514, Sec. 1810(l)(4), added par. (4).
Former par. (4) redesignated (5).
Subsec. (b)(5). Pub. L. 99-514, Sec. 1810(l)(4), redesignated par.
(4) as (5). Former par. (5) redesignated (6).
Subsec. (b)(5)(A)(iv). Pub. L. 99-514, Sec. 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) of Pub. L. 99-514.
Subsec. (b)(5)(E)(i). Pub. L. 99-514, Sec. 1810(l)(1), inserted last
sentence.
Pub. L. 99-514, Sec. 1899A(63), substituted ``preceding'' for
``preceeding''.
Subsec. (b)(6) to (11). Pub. L. 99-514, Sec. 1810(l)(4),
redesignated pars. (5) to (10) as pars. (6) to (11), respectively.
Subsec. (e)(4)(A). Pub. L. 99-514, Sec. 201(d)(14)(A), substituted
``section 168(h)'' for ``section 168(j)''.
Pub. L. 99-514, Sec. 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(j).''
Subsec. (e)(5). Pub. L. 99-514, Sec. 201(d)(14)(B), as amended by
Pub. L. 100-647, Sec. 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, Sec. 1899A(64), substituted ``section
168(c)(2)(F))'' for ``section 168(C)(2)(F))''.
Subsec. (h). Pub. L. 99-514, Sec. 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, Sec. 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, Sec. 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, Secs. 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, Sec. 474(r)(29)(K), struck
out ``1451,'' after ``1443''.
Subsec. (a)(17). Pub. L. 98-369, Sec. 422(d)(3), struck out
reference to sections 71 and 215.
Subsec. (a)(33)(E). Pub. L. 98-443 substituted ``Secretary of
Transportation'' for ``Civil Aeronautics Board''.
Subsec. (a)(33)(G). Pub. L. 98-216 substituted ``subchapter I of
chapter 105 of title 49'' for ``part I of the Interstate Commerce Act''.
Subsec. (a)(34). Pub. L. 98-369, Sec. 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(c),
respectively.
Subsec. (a)(37)(C). Pub. L. 98-369, Sec. 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, Sec. 43(a)(1), added pars.
(42) to (45).
Subsec. (a)(46). Pub. L. 98-369, Sec. 526(c)(1), added par. (46).
Subsec. (b). Pub. L. 98-369, Sec. 138(a), added subsec. (b). Former
subsec. (b), relating to includes and including, redesignated (c).
Subsec. (c). Pub. L. 98-369, Sec. 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, Sec. 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, Sec. 31(e), added subsec. (e). Former
subsec. (e), relating to cross references, redesignated (f).
Pub. L. 98-369, Sec. 138(a), redesignated former subsec. (d),
relating to cross references, as (e).
Subsec. (f). Pub. L. 98-369, Sec. 53(c), added subsec. (f). Former
subsec. (f), relating to cross references, redesignated (g).
Pub. L. 98-369, Sec. 31(e), redesignated former subsec. (e),
relating to cross references, as (f).
Subsec. (g). Pub. L. 98-369, Sec. 75(c), added subsec. (g). Former
subsec. (g), relating to cross references, redesignated (h).
Pub. L. 98-369, Sec. 53(c), redesignated former subsec. (f),
relating to cross references, as (g).
Subsec. (h). Pub. L. 98-369, Sec. 75(c), redesignated former subsec.
(g), relating to cross references, as (h).
1983--Subsec. (a)(16). Pub. L. 98-67, Sec. 102(a), repealed
amendments made by Pub. L. 97-248. See 1982 Amendment note below.
Subsec. (a)(33)(F). Pub. L. 97-449, Sec. 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, Sec. 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, Sec. 306(b)(3), redesignated
par. (38), as added by Pub. L. 97-248, Sec. 336(a), relating to persons
residing outside the United States, as (39).
Subsec. (a)(40). Pub. L. 97-473 added par. (40).
Subsec. (a)(41). Pub. L. 98-67, Sec. 104(d)(1), added par. (41).
1982--Subsec. (a)(16). Pub. L. 97-248, Secs. 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) of Pub. L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369,
repealed subtitle A (Secs. 301-308) of title III of Pub. L. 97-248 as 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, Sec. 201(d)(10), formerly
Sec. 201(c)(10), added par. (38) relating to joint return.
Pub. L. 97-248, Sec. 336(a), added par. (38) relating to persons
residing outside the United States.
1981--Subsec. (a)(34)(A). Pub. L. 97-34 substituted ``section
6015(d)'' for ``section 6015(c)''.
1978--Subsec. (a)(36)(B)(iii). Pub. L. 95-600, Sec. 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, Sec. 157(k)(2), added par. (37).
1976--Subsec. (a)(4). Pub. L. 94-455, Sec. 1906(c)(3), struck out
``or Territory'' after ``any State''.
Subsec. (a)(11). Pub. L. 94-455, Sec. 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, Sec. 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, Sec. 1906(b)(13)(A),
struck out ``or his delegate'' after ``Secretary'' wherever appearing.
Subsec. (a)(36). Pub. L. 94-455, Sec. 1203(a), added par. (36).
1974--Subsec. (a)(35). Pub. L. 93-406 added par. (35).
1972--Subsec. (a)(12)(B). Pub. L. 92-606 inserted reference to
chapter 1.
1969--Subsec. (a)(19)(A). Pub. L. 91-172, Sec. 432(c) reenacted
subpar. (A) without change.
Subsec. (a)(19)(B). Pub. L. 91-172, Sec. 432(c), struck out
reference to subpar. (C).
Subsec. (a)(19)(C). Pub. L. 91-172, Sec. 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, Sec. 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, Sec. 960(j), substituted ``United
States Tax Court'' for ``Tax Court of the United States''.
Subsec. (a)(32). Pub. L. 91-172, Sec. 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. 90-364 substituted ``section
6154(c)'' for ``section 6016(b)''.
1966--Subsec. (a)(31). Pub. L. 89-809 substituted ``, 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. 89-368 added par. (34).
1964--Subsec. (a)(20). Pub. L. 88-272 inserted ``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. 88-272 added par. (33).
1962--Subsec. (a)(19). Pub. L. 87-834, Sec. 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, Sec. 7(h), added pars. (30),
(31).
Subsec. (a)(32). Pub. L. 87-870 added par. (32).
1960--Subsec. (a)(9), (10). Pub. L. 86-624, Sec. 18(i), (j), struck
out reference to the Territory of Hawaii.
Subsec. (a)(12). Pub. L. 86-778 designated existing provisions as
par. (A) and added par. (B).
1959--Subsec. (a)(9). Pub. L. 86-70, Sec. 22(g), substituted ``the
Territory of Hawaii'' for ``the Territories of Alaska and Hawaii''.
Subsec. (a)(10). Pub. L. 86-70, Sec. 22(h), substituted ``Territory
of Hawaii'' for ``Territories''.
Effective and Termination Dates of 2001 Amendment
Amendment by Pub. L. 107-16 applicable to estates of decedents dying
after Dec. 31, 2009, see section 542(f)(1) of Pub. L. 107-16, set out as
a note under section 121 of this title.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such amendment
had never been enacted, see section 901 of Pub. L. 107-16, set out as a
note under section 1 of this title.
Effective Date of 1997 Amendment
Section 1151(b) of Pub. L. 105-34 provided 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) of Pub. L. 105-34 provided 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) of Pub. L. 105-34 effective 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) of Pub.
L. 105-34, set out as a note under section 23 of this title.
Effective Date of 1996 Amendments
Section 1601(i)(4) of Pub. L. 105-34 provided 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) of Pub. L. 104-188 applicable with
respect to decedents dying after Aug. 20, 1996, see section 1402(c) of
Pub. L. 104-188, set out as a note under section 101 of this title.
Amendment by section 1621(b)(8), (9) of Pub. L. 104-188 effective
Sept. 1, 1997, see section 1621(d) of Pub. L. 104-188, set out as a note
under section 26 of this title.
Section 1907(a)(3) of Pub. L. 104-188, as amended by Pub. L. 105-34,
title XI, Sec. 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].
Such an election, once made, shall be irrevocable. To the extent
prescribed in regulations by the Secretary of the Treasury or his
delegate, a trust which was in existence on August 20, 1996 (other than
a trust treated as owned by the grantor under subpart E of part I of
subchapter J of chapter 1 of the Internal Revenue Code of 1986), and
which was treated as a United States person on the day before the date
of the enactment of this Act may elect to continue to be treated as a
United States person notwithstanding section 7701(a)(30)(E) of such
Code.''
[Section 1161(b) of Pub. L. 105-34 provided that: ``The amendment
made by subsection (a) [amending section 1907(a)(3) of Pub. 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].'']
Effective Date of 1995 Amendment
Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2 of
Pub. L. 104-88, set out as an Effective Date note under section 701 of
Title 49, Transportation.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-296 effective with calendar quarter
following Aug. 15, 1994, see section 320(c) of Pub. L. 103-296, set out
as a note under section 871 of this title.
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-318 applicable to distributions after Dec.
31, 1992, see section 521(e) of Pub. L. 102-318, set out as a note under
section 402 of this title.
Effective Date of 1991 Amendment
Amendment by Pub. L. 102-90 effective Jan. 1, 1992, see section
314(g)(1) of Pub. L. 102-90, as amended, set out as a note under section
31-2 of Title 2, The Congress.
Effective Date of 1990 Amendment
Amendment by section 11812(b)(13) of Pub. L. 101-508 applicable 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) of section 168, and not applicable to rehabilitation
expenditures described in section 252(f)(5) of Pub. L. 99-514, see
section 11812(c) of Pub. L. 101-508, set out as a note under section 42
of this title.
Effective Date of 1989 Amendment
Section 603 of title VI of Pub. L. 101-194 provided 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.''
Effective Date of 1988 Amendment
Amendment by title I of Pub. L. 100-647 effective, 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) of Pub. L. 100-647, set out as a note under section 1 of
this title.
Effective Date of 1986 Amendment
Amendment by section 201(c), (d)(14) of Pub. L. 99-514 applicable to
property placed in service after Dec. 31, 1986, in taxable years ending
after such date, with exceptions, see sections 203 and 204 of Pub. L.
99-514, set out as a note under section 168 of this title.
Amendment by section 201(c), (d)(14) of Pub. L. 99-514 not
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) of Pub. L. 99-514, set out as a note under section 46 of
this title.
Amendment by section 671(b)(3) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 675 of Pub. L.
99-514, set out as an Effective Date note under section 860A of this
title.
Amendment by section 673 of Pub. L. 99-514 effective 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) of Pub. L. 99-514, set out as an Effective Date note under
section 860A of this title.
Section 1166(b) of Pub. L. 99-514 provided 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. 99-514 effective, 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 of Pub. L. 99-514, set
out as a note under section 48 of this title.
Section 1810(l)(5)(B) of Pub. L. 99-514 provided 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].''
Effective Date of 1984 Amendments
Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section 9(v)
of Pub. L. 98-443, set out as a note under section 5314 of Title 5,
Government Organization and Employees.
Amendment by section 31(e) of Pub. L. 98-369 effective, except as
otherwise provided in section 31(g) of Pub. 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) of Pub. L. 98-369, set out as a
note under section 168 of this title.
Amendment by section 43(a)(1) of Pub. L. 98-369 applicable to
taxable years ending after July 18, 1984, see section 44 of Pub. L. 98-
369, set out as an Effective Date note under section 1271 of this title.
Amendment by section 53(c) of Pub. L. 98-369 effective July 18,
1984, except as otherwise provided, see section 53(e)(3) of Pub. L. 98-
369, as amended, set out as an Effective Date note under section 1059 of
this title.
Amendment by section 75(c) of Pub. L. 98-369 applicable to
distributions, sales, and exchanges made after Mar. 31, 1984, in taxable
years ending after such date, see section 75(e) of Pub. L. 98-369, set
out as an Effective Date note under section 386 of this title.
Section 138(b) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 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.
``(2) Transitional rule for applying substantial presence test.--
``(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.
``(B) If an alien individual was a resident of the United States
as of the close of calendar year 1984, but was not a resident of the
United States as of the close of calendar year 1983, the
determination of whether such individual meets such substantial
presence test shall be made by only taking into account presence in
the United States after 1983.
``(3) Transitional rule for applying lawful residence test.--In the
case of any individual who--
``(A) was a lawful permanent resident of the United States
(within the meaning of section 7701(b)(5) of the Internal Revenue
Code of 1986, as added by this section) throughout calendar year
1984, or
``(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)),
for purposes of section 7701(b)(2)(A) of such Code (as so added), such
individual shall be treated as a resident of the United States during
1984.''
Amendment by section 412(b)(11) of Pub. L. 98-369 applicable with
respect to taxable years beginning after Dec. 31, 1984, see section
414(a)(1) of Pub. L. 98-369, set out as a note under section 6654 of
this title.
Amendment by section 422(d)(3) of Pub. L. 98-369 applicable 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) of Pub. L. 98-369, set out as a
note under section 71 of this title.
Amendment by section 474(r)(29)(K) of Pub. L. 98-369 not applicable
with respect to obligations issued before Jan. 1, 1984, see section
475(b) of Pub. L. 98-369, set out as a note under section 33 of this
title.
Amendment by section 491(d)(53) of Pub. L. 98-369 applicable to
obligations issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L.
98-369, set out as a note under section 62 of this title.
Section 526(c)(2) of Pub. L. 98-369 provided that: ``The amendment
made by this subsection [amending this section] shall take effect on
April 1, 1984.''
Effective Date of 1983 Amendments
Amendment by section 104(d)(1) of Pub. L. 98-67 applicable with
respect to payments made after Dec. 31, 1983, see section 110(a) of Pub.
L. 98-67, set out as a note under section 31 of this title.
For effective date of amendment by Pub. L. 97-473, see section 204
of Pub. L. 97-473, set out as an Effective Date note under section 7871
of this title.
Amendment by Pub. L. 97-448 effective as if included in the
provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Pub.
L. 97-248, to which such amendment relates, see section 311(d) of Pub.
L. 97-448, set out as a note under section 31 of this title.
Effective Date of 1982 Amendment
Amendment by section 201(d)(10) of Pub. L. 97-248 applicable to
taxable years beginning after Dec. 31, 1982, see section 201(e)(1) of
Pub. L. 97-248, set out as a note under section 5 of this title.
Section 336(b) of Pub. L. 97-248 provided 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].''
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-34 applicable to estimated tax for taxable
years beginning after Dec. 31, 1980, see section 725(d) of Pub. L. 97-
34, set out as a note under section 871 of this title.
Effective Date of 1978 Amendment
Amendment by section 157(k)(2) of Pub. L. 95-600 applicable to
taxable years beginning after Dec. 31, 1974, see section 157(k)(3) of
Pub. L. 95-600, set out as a note under section 6058 of this title.
Amendment by section 701(cc)(2) of Pub. L. 95-600 applicable to
documents prepared after Dec. 31, 1976, see section 701(cc)(3) of Pub.
L. 95-600, set out as a note under section 6695 of this title.
Effective Date of 1976 Amendment
Section 1203(j) of Pub. L. 94-455 provided 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) of Pub. L. 94-
455 effective on first day of first month which begins more than ninety
days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455, set
out as a note under section 6013 of this title.
Effective Date of 1972 Amendment
Amendment by Pub. L. 92-606 applicable with respect to taxable years
beginning after Dec. 31, 1972, see section 2 of Pub. L. 92-606, set out
in part as an Effective Date note under section 931 of this title.
Effective Date of 1969 Amendment
Amendment by section 432(c), (d) of Pub. L. 91-172 effective for
taxable years beginning after July 11, 1969, see section 432(e) of Pub.
L. 91-172, set out as a note under section 593 of this title.
Amendment by section 960(j) of Pub. L. 91-172 effective Dec. 30,
1969, see section 962(a) of Pub. L. 91-172, set out as a note under
section 7441 of this title.
Effective Date of 1968 Amendment
Amendment by Pub. L. 90-364 applicable with respect to taxable years
beginning after Dec. 31, 1967, except as provided by section 104 of Pub.
L. 90-364, see section 103(f) of Pub. L. 90-364, set out as a note under
section 243 of this title.
Effective Date of 1966 Amendments
Amendment by Pub. L. 89-809 applicable with respect to taxable years
beginning after Dec. 31, 1966, see section 103(n)(1) of Pub. L. 89-809,
set out as a note under section 871 of this title.
Amendment by Pub. L. 89-368 applicable with respect to taxable years
beginning after Dec. 31, 1966, see section 102(d) of Pub. L. 89-368, set
out as a note under section 6654 of this title.
Effective Date of 1964 Amendment
Amendment by section 204(a)(3) of Pub. L. 88-272 applicable to
group-term life insurance provided after Dec. 31, 1963, in taxable years
ending after such date, see section 204(d) of Pub. L. 88-272, set out as
an Effective Date note under section 79 of this title.
Amendment by section 234(b)(3) of Pub. L. 88-272 applicable to
taxable years beginning after Dec. 31, 1963, see section 234(c) of Pub.
L. 88-272, set out as a note under section 1503 of this title.
Effective Date of 1962 Amendments
Section 5(b) of Pub. L. 87-870 provided 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) of Pub. L. 87-834 provided 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].''
Effective Date of 1960 Amendments
Amendment by Pub. L. 86-778 effective Sept. 13, 1960, see section
103(v)(1) of Pub. L. 86-778, set out as an Effective Date of 1960
Amendment note under section 402 of Title 42, The Public Health and
Welfare.
Amendment by Pub. L. 86-624 effective August 21, 1959, see section
18(k) of Pub. L. 86-624, set out as a note under section 3121 of this
title.
Effective Date of 1959 Amendment
Amendment by Pub. L. 86-70 effective Jan. 3, 1959, see section 22(i)
of Pub. L. 86-70, set out as a note under section 3121 of this title.
Savings Provision
For provisions that nothing in amendment by section 11812(b)(13) of
Pub. L. 101-508 be 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) of Pub. L. 101-508, set out as a note under section 29
of this title.
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the
Coast Guard, including the authorities and functions of the Secretary of
Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections 468(b), 551(d),
552(d), and 557 of Title 6, Domestic Security, and the Department of
Homeland Security Reorganization Plan of November 25, 2002, as modified,
set out as a note under section 542 of Title 6.
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,
Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. 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.
Plan Amendments Not Required Until January 1, 1998
For provisions directing that if any amendments made by subtitle D
[Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to
any plan or annuity contract, such amendment shall not be required to be
made before the first day of the first plan year beginning on or after
Jan. 1, 1998, see section 1465 of Pub. L. 104-188, set out as a note
under section 401 of this title.
Plan Amendments Not Required Until January 1, 1994
For provisions directing that if any amendments made by subtitle B
[Secs. 521-523] of title V of Pub. L. 102-318 require an amendment to
any plan, such plan amendment shall not be required to be made before
the first plan year beginning on or after Jan. 1, 1994, see section 523
of Pub. L. 102-318, set out as a note under section 401 of this title.
Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan,
such plan amendment shall not be required to be made before the first
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub.
L. 99-514, as amended, set out as a note under section 401 of this
title.
Authors or Artists Performing Services Under Contract With Corporation
Pub. L. 96-605, title IV, Sec. 402, Dec. 28, 1980, 94 Stat. 3532, as
amended by Pub. L. 99-514, Sec. 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).
``(b) Definitions.--For purposes of this section--
``(1) Contract.--The term `contract' means a contract which
during its term--
``(A) requires such author or artist to give the corporation
first reading or first refusal on writings or drawings of
specified types, and prohibits him from offering any such
writing or drawing to any other publication unless it has been
offered to and rejected by the corporation; or
``(B) requires such author or artist to use his best efforts
to produce work of specified types for the corporation.
``(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.''
Section Referred to in Other Sections
This section is referred to in sections 56, 118, 168, 246A, 269B,
312, 357, 362, 401, 408, 408A, 542, 593, 597, 679, 682, 853, 860F, 865,
877, 881, 884, 904, 958, 988, 993, 1246, 1247, 1249, 1313, 1341, 3405,
4975, 6038, 6038A, 6039F, 6046, 6059, 6694, 7213 of this title; title 4
section 114; title 5 section 8351; title 6 section 395; title 12
sections 1464, 1467a, 1823; title 22 sections 2314, 2755; title 29
section 1108; title 42 sections 1320a-7e, 1395r.
