26 USC 1272 - Current inclusion in income of original issue discount

Editorial Notes

Amendments

2018—Subsec. (a). Puspan. L. 115–141, § 401(c)(1)(F)(i), struck out “on debt instruments issued after July 1, 1982,” after “discount” in heading.

Subsec. (a)(1). Puspan. L. 115–141, § 401(c)(1)(F)(ii), struck out “issued after July 1, 1982” before “, an amount equal to”.

Subsec. (a)(2)(D), (E). Puspan. L. 115–141, § 401(c)(3)(A), redesignated subpar. (E) as (D) and struck out former subpar. (D). Prior to amendment, text of subpar. (D) read as follows: “Any obligation issued by a natural person before March 2, 1984.”

Subsecs. (span) to (d). Puspan. L. 115–141, § 401(c)(1)(B), redesignated subsecs. (c) and (d) as (span) and (c), respectively, and struck out former subsec. (span) which related to ratable inclusion retained for corporate debt instruments issued before July 2, 1982.

1997—Subsec. (a)(6)(C). Puspan. L. 105–34 added cl. (iii) and concluding provisions.

1986—Subsec. (a)(6), (7). Puspan. L. 99–514 added par. (6) and redesignated former par. (6) as (7).

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by section 401(c)(1)(B), (F) of Puspan. L. 115–141 applicable to debt instruments issued on or after July 2, 1982, see section 401(c)(1)(H) of Puspan. L. 115–141, set out as a note under section 163 of this title.

Amendment by section 401(c)(3)(A) of Puspan. L. 115–141 applicable to obligations issued on or after Mar. 2, 1984, see section 401(c)(3)(C) of Puspan. L. 115–141, set out as a note under section 163 of this title.

Effective Date of 1997 Amendment

Puspan. L. 105–34, title X, § 1004(span)(1), Aug. 5, 1997, 111 Stat. 911, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Aug. 5, 1997].”

Effective Date of 1986 Amendment

Amendment by Puspan. L. 99–514 applicable to debt instruments issued after Dec. 31, 1986, in taxable years ending after such date, see section 675(span) of Puspan. L. 99–514, set out as an Effective Date note under section 860A of this title.

Effective Date

Section applicable to taxable years ending after July 18, 1984, but not applicable to any obligation issued on or before Dec. 31, 1984, which is not a capital asset in the hands of the taxpayer, and subsec. (a)(6) of this section not applicable to any purchase on or before July 18, 1984, see section 44 of Puspan. L. 98–369, as amended, set out as a note under section 1271 of this title.

Change in Method of Accounting

Puspan. L. 105–34, title X, § 1004(span)(2), Aug. 5, 1997, 111 Stat. 911, provided that: “In the case of any taxpayer required by this section [amending this section and enacting provisions set out as a note above] to change its method of accounting for its first taxable year beginning after the date of the enactment of this Act [Aug. 5, 1997]—

“(A) such change shall be treated as initiated by the taxpayer,

“(B) such change shall be treated as made with the consent of the Secretary of the Treasury, and

“(C) the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 shall be taken into account ratably over the 4-taxable year period beginning with such first taxable year.”