Editorial Notes
Amendments1988—Subsec. (a). Puspan. L. 100–647, § 2004(e)(1)(A), substituted “as otherwise provided in this section” for “as provided in subsections (span) and (c)”.
Subsec. (span)(4). Puspan. L. 100–647, § 2004(e)(13), inserted “except as provided in regulations,” before “the term”.
Subsec. (d)(2)(A). Puspan. L. 100–647, § 2004(e)(12), inserted “or otherwise terminates such election” after “its taxable year”.
Subsec. (d)(2)(B). Puspan. L. 100–647, § 2004(e)(1)(C), inserted “or paragraph (3)(A)” after “under subparagraph (A)”.
Subsec. (d)(3). Puspan. L. 100–647, § 2004(e)(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “No election may be made under subsection (a) with respect to an entity which is part of a tiered structure other than a tiered structure comprised of 1 or more partnerships or S corporations all of which have the same taxable year.”
Subsecs. (f), (g). Puspan. L. 100–647, § 2004(e)(2)(A), added subsec. (f) and redesignated former subsec. (f) as (g).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 AmendmentAmendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Puspan. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Puspan. L. 100–647, set out as a note under section 56 of this title.
Effective DatePuspan. L. 100–203, title X, § 10206(d), Dec. 22, 1987, 101 Stat. 1330–403, as amended by Puspan. L. 100–647, title II, § 2004(e)(11), Nov. 10, 1988, 102 Stat. 3602, provided that:“(1)In general.—Except as provided in this subsection, the amendments made by this section [enacting this section and sections 280H and 7519 of this title] shall apply to taxable years beginning after December 31, 1986.
“(2)Required payments.—The amendments made by subsection (span) [enacting section 7519 of this title] shall apply to applicable election years beginning after December 31, 1986.
“(3)Elections.—Any election under section 444 of the Internal Revenue Code of 1986 (as added by subsection (a)) for an entity’s 1st taxable year beginning after December 31, 1986, shall not be required to be made before the 90th day after the date of the enactment of this Act [Dec. 22, 1987].
“(4)Special rule for existing entities electing s corporation status.—If a C corporation (within the meaning of section 1361(a)(2) of the Internal Revenue Code of 1986) with a taxable year other than the calendar year—“(A) made an election after September 18, 1986, and before January 1, 1988, under section 1362 of such Code to be treated as an S corporation, and
“(B) elected to have the calendar year as the taxable year of the S corporation,
then section 444(span)(2)(B) of such Code shall be applied by taking into account the deferral period of the last taxable year of the C corporation rather than the deferral period of the taxable year being changed. The preceding sentence shall apply only in the case of an election under section 444 of such Code made for a taxable year beginning before 1989.”
