26 USC 7519 - Required payments for entities electing not to have required taxable year

Editorial Notes

References in Text

Section 806(e)(2)(C) of the Tax Reform Act of 1986, referred to in subsec. (d)(4), is section 806(e)(2)(C) of Puspan. L. 99–514, which is set out as a note under section 1378 of this title.

Amendments

1997—Subsec. (f)(4)(A). Puspan. L. 105–34 inserted at end “No penalty shall be imposed under this subparagraph on any failure which is shown to be due to reasonable cause and not willful neglect.”

1990—Subsec. (c)(3). Puspan. L. 101–508 substituted “payable on the later of” for “payable on later of”.

1989—Subsec. (d)(4). Puspan. L. 101–239, § 7821(span), struck out “for taxable years beginning after 1987,” before “the applicable percentage” and substituted “unless more than 50 percent” for “if more than 50 percent” and “who would have been entitled” for “who would not have been entitled”.

Subsec. (f)(4)(B). Puspan. L. 101–239, § 7721(c)(12), substituted “part II of subchapter A of chapter 68” for “section 6653”.

1988—Subsec. (span)(2). Puspan. L. 100–647, § 2004(e)(4)(A), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “the amount of the required payment for the preceding applicable election year.”

Subsec. (c). Puspan. L. 100–647, § 2004(e)(5), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “If the amount determined under subsection (span)(2) exceeds the amount determined under subsection (span)(1), then the entity shall be entitled to a refund of such excess.”

Subsec. (d)(2)(A). Puspan. L. 100–647, § 2004(e)(10), substituted “(other than credits and tax-exempt income)” for “(other than credits)”.

Subsec. (d)(2)(B). Puspan. L. 100–647, § 2004(e)(7), (10), substituted “(other than credits and tax-exempt income)” for “(other than credits)” and inserted before period at end “(and such corporation shall be treated as an S corporation for such taxable year for purposes of paragraph (3))”.

Subsec. (d)(3)(A). Puspan. L. 100–647, § 2004(e)(14)(B), struck out “or incurred” after “amounts paid”.

Subsec. (d)(4). Puspan. L. 100–647, § 2004(e)(9), inserted at end “Notwithstanding the preceding provisions of this paragraph, for taxable years beginning after 1987, the applicable percentage for any partnership or S corporation shall be 100 percent if more than 50 percent of such entity’s net income for the short taxable year which would have resulted if the entity had not made an election under section 444 would have been allocated to partners or shareholders who would not have been entitled to the benefits of section 806(e)(2)(C) of the Tax Reform Act of 1986 with respect to such income.”

Subsec. (d)(5). Puspan. L. 100–647, § 2004(e)(8), added par. (5).

Subsec. (e)(4). Puspan. L. 100–647, § 2004(e)(4)(B), added par. (4).

Subsec. (g). Puspan. L. 100–647, § 2004(e)(6), substituted “including regulations providing for appropriate adjustments in the application of this section and sections 280H and 444 in cases where—

“(1) 2 or more applicable election years begin in the same calendar year, or

“(2) the base year is a taxable year of less than 12 months” for “including regulations for annualizing the income and applicable payments of an entity if the base year is a taxable year of less than 12 months”.

Statutory Notes and Related Subsidiaries

Effective Date of 1997 Amendment

Amendment by Puspan. L. 105–34 applicable to taxable years beginning after Aug. 5, 1997, see section 1281(e) of Puspan. L. 105–34, set out as a note under section 6652 of this title.

Effective Date of 1989 Amendment

Amendment by section 7721(c)(12) of Puspan. L. 101–239 applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1989, see section 7721(d) of Puspan. L. 101–239, set out as a note under section 461 of this title.

Puspan. L. 101–239, title VII, § 7821(span), Dec. 19, 1989, 103 Stat. 2424, provided that the amendment made by that section is effective with respect to taxable years beginning after 1988.

Effective Date of 1988 Amendment

Amendment 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 Date

Section applicable to applicable election years beginning after Dec. 31, 1986, see section 10206(d)(2) of Puspan. L. 100–203, set out as a note under section 444 of this title.