Editorial Notes
References in Text

The Tax Reform Act of 1986, referred to in subsec. (d), is Puspan. L. 99–514, Oct. 22, 1986, 100 Stat. 2085. Subtitle D (§§ 631–634) of title VI of the Tax Reform Act of 1986 enacted sections 336 and 337 of this title, amended sections 26, 311, 312, 332, 334, 338, 341, 346, 367, 453, 453B, 467, 852, 897, 1056, 1248, 1255, 1276, 1363, 1366, 1374, and 1375 of this title, and repealed former sections 333, 336, and 337 of this title. For complete classification of this Act to the Code, see Tables.

Prior Provisions

A prior section 337, acts Aug. 16, 1954, ch. 736, 68A Stat. 106; Sept. 2, 1958, Puspan. L. 85–866, title I, § 19, 72 Stat. 1615; Oct. 4, 1976, Puspan. L. 94–455, title XIX, §§ 1901(a)(46), 1906(span)(13)(A), title XXI, § 2118(a), 90 Stat. 1772, 1834, 1912; Nov. 6, 1978, Puspan. L. 95–600, title VII, § 701(i)(1), 92 Stat. 2904; Nov. 10, 1978, Puspan. L. 95–628, § 4(a), 92 Stat. 3628; Apr. 2, 1980, Puspan. L. 96–223, title IV, § 403(span)(2)(A), 94 Stat. 304; Oct. 19, 1980, Puspan. L. 96–471, § 2(c)(2), 94 Stat. 2254; Dec. 24, 1980, Puspan. L. 96–589, § 5(c), 94 Stat. 3405; Sept. 3, 1982, Puspan. L. 97–248, title II, § 224(c)(5), (6), 96 Stat. 489; Oct. 22, 1986, Puspan. L. 99–514, title XVIII, § 1804(e)(7)(A), 100 Stat. 2803, related to gain or loss on sales or exchanges in connection with certain liquidations, prior to repeal by Puspan. L. 99–514, § 631(a).

Amendments

1988—Subsec. (span)(2)(B)(i). Puspan. L. 100–647, § 1006(e)(4)(A), (B), substituted “described in section 511(a)(2)” for “described in section 511(a)(2) or 511(span)(2)” and “in an activity the income from which is subject to tax under section 511(a)” for “in an unrelated trade or business (as defined in section 513)”.

Subsec. (span)(2)(B)(ii). Puspan. L. 100–647, § 1006(e)(4)(C), substituted “an activity referred to in clause (i)” for “an unrelated trade or business of such organization”.

Subsec. (d). Puspan. L. 100–647, § 1006(e)(5)(A), in introductory provisions, substituted “amendments made by subtitle D of title VI of the Tax Reform Act of 1986” for “amendments made to this subpart by the Tax Reform Act of 1986”, and in par. (1), substituted “this subchapter) or through the use of a regulated investment company, real estate investment trust, or tax-exempt entity” for “this subchapter)”.

1987—Subsec. (c). Puspan. L. 100–203 inserted at end “For purposes of this section, the determination of whether any corporation is an 80-percent distributee shall be made without regard to any consolidated return regulation.”

Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment

Puspan. L. 100–647, title I, § 1006(e)(5)(B), Nov. 10, 1988, 102 Stat. 3401, provided that: “The amendment made by subparagraph (A)(ii) [amending this section] shall not apply to any reorganization if before June 10, 1987

“(i) the board of directors of a party to the reorganization adopted a resolution to solicit shareholder approval for the transaction, or
“(ii) the shareholders or the board of directors of a party to the reorganization approved the transaction.”

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1987 Amendment

Amendment by Puspan. L. 100–203 applicable to distributions or transfers after Dec. 15, 1987, with exceptions for certain distributee corporations and distributions covered by prior transition rule, see section 10223(d) of Puspan. L. 100–203, set out as a note under section 304 of this title.

Effective Date

Section applicable to any distribution in complete liquidation, and any sale or exchange, made by a corporation after July 31, 1986, unless such corporation is completely liquidated before Jan. 1, 1987, any transaction described in section 338 of this title for which the acquisition date occurs after Dec. 31, 1986, and any distribution, not in complete liquidation, made after Dec. 31, 1986, with exceptions and special and transitional rules, see section 633 of Puspan. L. 99–514, set out as a note under section 336 of this title.