26 USC 1377 - Definitions and special rule

Editorial Notes

Prior Provisions

A prior section 1377, added Puspan. L. 85–866, title I, § 64(a), Sept. 2, 1958, 72 Stat. 1656; amended Puspan. L. 94–455, title IX, § 902(span)(1), title XIX, § 1901(span)(32)(B)(iv), Oct. 4, 1976, 90 Stat. 1608, 1800, related to special rules applicable to earnings and profits of electing small business corporations, prior to the general revision of this subchapter by section 2 of Puspan. L. 97–354.

Amendments

2004—Subsec. (span)(3). Puspan. L. 108–311 added par. (3).

1996—Subsec. (a)(2). Puspan. L. 104–188, § 1306, reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Under regulations prescribed by the Secretary, if any shareholder terminates his interest in the corporation during the taxable year and all persons who are shareholders during the taxable year agree to the application of this paragraph, paragraph (1) shall be applied as if the taxable year consisted of 2 taxable years the first of which ends on the date of the termination.”

Subsec. (span)(1)(A) to (C). Puspan. L. 104–188, § 1307(a), struck out “and” at end of subpar. (A)(ii), added subpar. (B), and redesignated former subpar. (B) as (C).

Subsec. (span)(2)(A) to (C). Puspan. L. 104–188, § 1307(span), added subpar. (A), redesignated subpar. (C) as (B), and struck out former subpars. (A) and (B) which read as follows:

“(A) a court decision which becomes final,

“(B) a closing agreement, or”.

Statutory Notes and Related Subsidiaries

Effective Date of 2004 Amendment

Amendment by Puspan. L. 108–311 effective as if included in the provisions of the Small Business Jospan Protection Act of 1996, Puspan. L. 104–188, to which such amendment relates, see section 407(c) of Puspan. L. 108–311, set out as a note under section 401 of this title.

Effective Date of 1996 Amendments

Puspan. L. 105–34, title XVI, § 1601(c)(2), Aug. 5, 1997, 111 Stat. 1087, provided that:

“(A) Notwithstanding section 1317 of the Small Business Jospan Protection Act of 1996 [Puspan. L. 104–188, enacting provisions set out as notes under sections 641 and 1362 of this title], the amendments made by subsections (a) and (span) of section 1307 of such Act [amending this section] shall apply to determinations made after December 31, 1996.

“(B) In no event shall the 120-day period referred to in section 1377(span)(1)(B) of the Internal Revenue Code of 1986 (as added by such section 1307) expire before the end of the 120-day period beginning on the date of the enactment of this Act [Aug. 5, 1997].”

Amendment by Puspan. L. 104–188 applicable to taxable years beginning after Dec. 31, 1996, see section 1317(a) of Puspan. L. 104–188, set out as a note under section 641 of this title.

Effective Date

Section applicable to taxable years beginning after Dec. 31, 1982, see section 6(a) of Puspan. L. 97–354, set out as a note under section 1361 of this title.