26 USC Sec. 301

 

 

-EXPCITE-

 

TITLE 26 - INTERNAL REVENUE CODE

 

Subtitle A - Income Taxes

 

CHAPTER 1 - NORMAL TAXES AND SURTAXES

 

Subchapter C - Corporate Distributions and Adjustments

 

PART I - DISTRIBUTIONS BY CORPORATIONS

 

Subpart A - Effects on Recipients

 

 

-HEAD-

 

Sec. 301. Distributions of property

 

 

-STATUTE-

 

(a) In general

Except as otherwise provided in this chapter, a distribution of

property (as defined in section 317(a)) made by a corporation to a

shareholder with respect to its stock shall be treated in the

manner provided in subsection (c).

 

Sections 301(a), (c)(1), (2), (3)(A)

 

 

Assumption: Accumulated earnings and profits are from prior years. Treatment of distribution to A: first, 50 dividend to extent of current earnings and profits, second, 75 dividend to extent of accumulated earnings and profits, third, return of basis of 30 (reducing A's stock basis to 0) and finally, gain of 45 as though from a sale of stock (calculated as 200 distribution - (50 + 75 + 30)).

 

 

(b) Amount distributed

(1) General rule

For purposes of this section, the amount of any distribution

shall be the amount of money received, plus the fair market value

of the other property received.

 

 

Sections 301(b)(1), (3), (d)

 

 

 

Assumptions: Accumulated earnings amount is as of end of prior year. The amount of distribution is 200, treated (to A) in the same fashion as a cash distribution of 200: dividend of 125, return of basis of 30, gain of 45 as though from a sale of the stock. The land's fair market value is determined as of the time of distribution to A. A will have a basis in that land equal to its fair market value of 140.

 

 

 

(2) Reduction for liabilities

The amount of any distribution determined under paragraph (1)

shall be reduced (but not below zero) by -

(A) the amount of any liability of the corporation assumed by

the shareholder in connection with the distribution, and

(B) the amount of any liability to which the property

received by the shareholder is subject immediately before, and

immediately after, the distribution.

 

Section 301 (b)(2) Ex. 1

 

 

 

 

 

Assumptions: 1. Accumulated earnings and profits amount is as of end of prior year 2. the liability transferred includes an assumable mortgage of 70 (which A assumes) and back property taxes of 30 which the property is subject to. The amount of distribution is 200: the land's fair market value of 300 less both the liability assumed of 70 and liability to which the property was subject of 30. The treatment to A is similar to the example from section 301(a): dividend of 125, tax-free return of stock basis of 30 (reducing basis to 0), gain as though from a sale of stock of 45.

 

 

Section 301(b)(2) Ex. 2

 

 

Assumptions: 130 liability associated with land which includes an assumable mortgage of 100 (which A assumes) and back property taxes of 30 which the property is subject to. In addition, A assumes an X note payable of 200. Treatment: the amount of distribution equals 0: 300 (FMV of land) - (30 + 100 + 200 liabilities) but not below 0. The excess of 30 should instead be treated as a contribution to capital increasing A's stock basis from 30 to 60.

 

 

 

 

(3) Determination of fair market value

For purposes of this section, fair market value shall be

determined as of the date of the distribution.

 

(c) Amount taxable

In the case of a distribution to which subsection (a) applies -

(1) Amount constituting dividend

That portion of the distribution which is a dividend (as

defined in section 316) shall be included in gross income.

(2) Amount applied against basis

That portion of the distribution which is not a dividend shall

be applied against and reduce the adjusted basis of the stock.

(3) Amount in excess of basis

(A) In general

Except as provided in subparagraph (B), that portion of the

distribution which is not a dividend, to the extent that it

exceeds the adjusted basis of the stock, shall be treated as

gain from the sale or exchange of property.

(B) Distributions out of increase in value accrued before March

1, 1913

That portion of the distribution which is not a dividend, to

the extent that it exceeds the adjusted basis of the stock and

to the extent that it is out of increase in value accrued

before March 1, 1913, shall be exempt from tax.

 

Section 301(c)(3)(B)

 

 

Example is modified version of Reg. Sec. 1.301-1(f) Ex.3

Assumptions: X had acquired timber land prior to March 1, 1913, at a cost 0f 50, 5 of which is allocated to the land and 45 to the timber. On March 1, 1913, the value of the timber land was 150, 15 attributable to the land, 135 attributable to the timber. The pre-1913 appreciation of 90 in the timber (135 - 45) is realized through depletion deductions in years prior to the current year (see section 1053). In the current year, X sells the land and therefore has an economic gain of 15, 5 of which is taxable (10 is not taxable due to the appreciation of 10 as of March 1, 1913). X has no earnings and profits or deficit for prior years. In the current year, X has earnings and profits of 20, 5 of which is from the taxable gain on the land sale, 15 is from unrelated sources.

Treatment of 75 distribution to A: 20 dividend (and, therefore taxable), 30 tax-free reduction of stock basis (to 0), 25 exempt from tax because it is from pre-3/1/1913 realized appreciation.

 

 

(d) Basis

The basis of property received in a distribution to which

subsection (a) applies shall be the fair market value of such

property.

 

(e) Special rule for certain distributions received by 20 percent

corporate shareholder

(1) In general

Except to the extent otherwise provided in regulations, solely

for purposes of determining the taxable income of any 20 percent

corporate shareholder (and its adjusted basis in the stock of the

distributing corporation), section 312 shall be applied with

respect to the distributing corporation as if it did not contain

subsections (k) and (n) thereof.

 

 

Sections 301(e)(1) & (2) Ex. 1

 

 

 

Assumptions: No E&P prior to the current year. This year's E&P prior to depreciation is 80. Accelerated depreciation allowable to X on all of its assets is 30. Depreciation under the section 168(g)(2) alternative depreciation system would be 20.

Treatment of 30 distribution to corporation A is as though X had E&P of 50 because 301(e)(1) in essence recomputes X's E&P as to A as though 312 (k) (which adjusts depreciation) did not apply. The 30 distribution to A would therefore result in dividend income of 15, tax-free return of basis of 12, and gain as though from the sale of stock of 3.

Treatment of 30 distribution to individual B: dividend of 18 (30% of actual E&P of 60 as adjusted pursuant to 312(k)), tax-free reduction of basis of 12, and gain as though from the sale of stock of 0.

 

 

 

Sections 301(e)(1) & (2) Ex. 2

 

 

Assumptions: No E&P prior to the current year. This year's E&P prior to depreciation is 80. Accelerated depreciation allowable to X on all of its assets is 30. Depreciation under the section 168(g)(2) alternative depreciation system would be 20. Corporation A held the X stock a total of 20 days, after which the stock was sold.

Treatment to both A and B from the distribution of 30 to each: dividend of 18 each (30% of 60 E&P), reduction of basis of 12 and gain as though from sale of stock of 0.

A is not a "20 percent corporate shareholder" under 301(e)(2) because, even though A is a corporation owning at least 20% of X, A is not entitled to a dividend received deduction pursuant to 243 (or 244 or 245) because 246(c)(1) disallows that deduction because A did not own the X stock for a sufficient number of days.

 

 

(2) 20 percent corporate shareholder

For purposes of this subsection, the term "20 percent corporate

shareholder" means, with respect to any distribution, any

corporation which owns (directly or through the application of

section 318) -

(A) stock in the corporation making the distribution

possessing at least 20 percent of the total combined voting

power of all classes of stock entitled to vote, or

(B) at least 20 percent of the total value of all stock of

the distributing corporation (except nonvoting stock which is

limited and preferred as to dividends),

but only if, but for this subsection, the distributee corporation

would be entitled to a deduction under section 243, 244, or 245

with respect to such distribution.

 

 

Sections 301(e)(1) & (2) Ex. 1

 

 

 

Assumptions: No E&P prior to the current year. This year's E&P prior to depreciation is 80. Accelerated depreciation allowable to X on all of its assets is 30. Depreciation under the section 168(g)(2) alternative depreciation system would be 20.

Treatment of 30 distribution to corporation A is as though X had E&P of 50 because 301(e)(1) in essence recomputes X's E&P as to A as though 312 (k) (which adjusts depreciation) did not apply. The 30 distribution to A would therefore result in dividend income of 15, tax-free return of basis of 12, and gain as though from the sale of stock of 3.

Treatment of 30 distribution to individual B: dividend of 18 (30% of actual E&P of 60 as adjusted pursuant to 312(k)), tax-free reduction of basis of 12, and gain as though from the sale of stock of 0.

 

 

 

 

 

Sections 301(e)(1) & (2) Ex. 2

 

 

Assumptions: No E&P prior to the current year. This year's E&P prior to depreciation is 80. Accelerated depreciation allowable to X on all of its assets is 30. Depreciation under the section 168(g)(2) alternative depreciation system would be 20. Corporation A held the X stock a total of 20 days, after which the stock was sold.

Treatment to both A and B from the distribution of 30 to each: dividend of 18 each (30% of 60 E&P), reduction of basis of 12 and gain as though from sale of stock of 0.

A is not a "20 percent corporate shareholder" under 301(e)(2) because, even though A is a corporation owning at least 20% of X, A is not entitled to a dividend received deduction pursuant to 243 (or 244 or 245) because 246(c)(1) disallows that deduction because A did not own the X stock for a sufficient number of days.

 

 

(3) Application of section 312(n)(7) not affected

The reference in paragraph (1) to subsection (n) of section 312

shall be treated as not including a reference to paragraph (7) of

such subsection.

 

 

Section 301(e)(3)

 

 

 

Assumptions: Accumulated earnings and profits is before either transactions and there is no current earnings and profits.

312(n)(7) generally limits the reduction in E&P for redeemed shares (in a redemption treated as a sale or exchange under 302(a) or 303) to the ratable share of E&P attributable to the redeemed shares. 301(e)(1) and (2) generally provides for a different computation for the purpose of determining the income of 20% corporate shareholders, where such recomputation includes ignoring the adjustments of 312(k) and (n). 301(e)(3) overrides the general rule of 301(e)(1) and (2) for purposes of applying 312(n)(7). Hence, 312(n)(7) applies for all purposes, including the determination of income of 20% corporate shareholders.

Treatment: X's redemption of C's 10% reduces X's E&P from 50 to 45. Thus, corporation A and individual B receive similar treatment from receiving their distributions: dividend of 15 each, tax-free return of basis of 12 each (note they had equal bases before the transactions) and gain as though from the sale of the stock of 3 each.

 

 

(4) Regulations

The Secretary shall prescribe such regulations as may be

necessary or appropriate to carry out the purposes of this

subsection.

 

(f) Special rules

(1) For distributions in redemption of stock, see section

302.

(2) For distributions in complete liquidation, see part II

(sec. 331 and following).

(3) For distributions in corporate organizations and

reorganizations, see part III (sec. 351 and following).

(4) For taxation of dividends received by individuals at

capital gains rates, see section 1(h)(11).

 

-SOURCE-

 

(Aug. 16, 1954, ch. 736, 68A Stat. 84; Pub. L. 87-403, Sec. 2(a),

Feb. 2, 1962, 76 Stat. 5; Pub. L. 87-834, Secs. 5(a), (b),

13(f)(2), Oct. 16, 1962, 76 Stat. 977, 1035; Pub. L. 88-272, title

II, Sec. 231(b)(2), Feb. 26, 1964, 78 Stat. 105; Pub. L. 88-484,

Sec. 1(b)(1), Aug. 22, 1964, 78 Stat. 597; Pub. L. 89-570, Sec.

1(b)(2), Sept. 12, 1966, 80 Stat. 762; Pub. L. 89-809, title I,

Sec. 104(f), Nov. 13, 1966, 80 Stat. 1559; Pub. L. 91-172, title

II, Sec. 211(b)(1), (2), title IX, Sec. 905(b)(2), Dec. 30, 1969,

83 Stat. 570, 714; Pub. L. 92-178, title III, Sec. 312(a), Dec. 10,

1971, 85 Stat. 526; Pub. L. 94-455, title II, Sec. 205(c)(1)(B),

(C), title XIX, Secs. 1901(a)(41), (b)(32)(A), 1906(b)(13)(A), Oct.

4, 1976, 90 Stat. 1535, 1771, 1800, 1834; Pub. L. 95-628, Sec.

3(a), (b), Nov. 10, 1978, 92 Stat. 3627; Pub. L. 98-369, div. A,

title I, Secs. 54(b), 61(d), title VII, Sec. 712(i)(1), July 18,

1984, 98 Stat. 569, 582, 948; Pub. L. 99-514, title VI, Sec.

612(b)(1), title XVIII, Sec. 1804(f)(2)(B), Oct. 22, 1986, 100

Stat. 2250, 2805; Pub. L. 100-203, title X, Sec. 10222(b)(1), Dec.

22, 1987, 101 Stat. 1330-411; Pub. L. 100-647, title I, Sec.

1006(e)(10)-(12), title II, Sec. 2004(j)(3)(B), Nov. 10, 1988, 102

Stat. 3401, 3402, 3605; Pub. L. 108-27, title III, Sec. 302(e)(2),

May 28,2003, 117 Stat. 763)

 

 

-MISC1-

 

AMENDMENTS

 

2003 - Subsec. (f). Pub. L. 108-27, Sec. 302(e)(2), added par.

(4).

 

1988 - Subsec. (b)(1). Pub. L. 100-647, Sec. 1006(e)(10), amended

par. (1) generally. Prior to amendment, par. (1) contained subpars.

(A) to (D) which provided what the amount of any distribution would

be for noncorporate distributees, corporate distributees, certain

corporate distributees of foreign corporations, and foreign

corporate distributees.

 

Subsec. (d). Pub. L. 100-647, Sec. 1006(e)(11), amended subsec.

(d) generally. Prior to amendment, subsec. (d) contained pars. (1)

to (4) which provided what the basis of property received would be

for noncorporate distributees, corporate distributees, foreign

corporate distributees, and certain corporate distributees of

foreign corporations.

 

Subsec. (e). Pub. L. 100-647, Sec. 2004(j)(3)(B), added par. (3)

and redesignated former par. (3) as (4).

 

Pub. L. 100-647, Sec. 1006(e)(12), redesignated subsec. (f) as

(e) and struck out former subsec. (e) which related to special rule

for holding period of appreciated property distributed to

corporation.

 

Subsecs. (f), (g). Pub. L. 100-647, Sec. 1006(e)(12),

redesignated subsec. (g) as (f). Former subsec. (f) redesignated

(e).

 

1987 - Subsec. (f)(1). Pub. L. 100-203 substituted "subsections

(k) and (n)" for "subsection (n)".

 

1986 - Subsec. (f)(3). Pub. L. 99-514, Sec. 1804(f)(2)(B),

substituted "this subsection" for "this section".

 

Subsec. (g)(4). Pub. L. 99-514, Sec. 612(b)(1), struck out par.

(4) which provided: "For partial exclusion from gross income of

dividends received by individuals, see section 116."

 

1984 - Subsec. (e). Pub. L. 98-369, Sec. 54(b), added subsec.

(e). Former subsec. (e) redesignated (f).

 

Subsec. (e)(2). Pub. L. 98-369, Sec. 712(i)(1), substituted

"complete liquidation" for "partial or complete liquidation" in

subsec. (e)(2), which became subsec. (g)(2).

 

Subsec. (f). Pub. L. 98-369, Sec. 61(d), added subsec. (f).

Former subsec. (f) redesignated (g).

 

Pub. L. 98-369, Sec. 54(b), redesignated former subsec. (e) as

(f).

 

Subsec. (g). Pub. L. 98-369, Secs. 54(b), 61(d), redesignated

former subsec. (e) successively as subsec. (f) and as subsec. (g).

 

Subsec. (g)(2). Pub. L. 98-369, Sec. 712(i)(1), substituted

"complete liquidation" for "partial or complete liquidation" in

subsec. (e)(2), which became subsec. (g)(2).

 

1978 - Subsec. (b)(1)(B)(ii). Pub. L. 95-628, Sec. 3(a),

substituted "amount of gain recognized to the distributing

corporation on the distribution" for "amount of gain to the

distributing corporation which is recognized under subsection (b),

(c), or (d) of section 311, under section 341(f), or under section

617(d)(1), 1245(a), 1250(a), 1251(c), 1252(a), or 1254(a)".

 

Subsec. (d)(2)(B). Pub. L. 95-628, Sec. 3(b), substituted "amount

of gain recognized to the distributing corporation on the

distribution" for "amount of gain to the distributing corporation

which is recognized under subsection (b), (c), or (d) of section

311, under section 341(f), or under section 617(d)(1), 1245(a),

1250(a), 1251(c), 1252(a), or 1254(a)".

 

1976 - Subsec. (b)(1)(B)(ii). Pub. L. 94-455, Sec. 205(c)(1)(B),

substituted "1252(a), or 1254(a)" for "or 1252(a)".

 

Subsec. (b)(1)(C). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck

out "or his delegate" after "Secretary".

 

Subsec. (d)(2)(B). Pub. L. 94-455, Sec. 205(c)(1)(C), substituted

"1252(a), or 1254(a)" for "or 1252(a)".

 

Subsec. (e). Pub. L. 94-455, Sec. 1901(a)(41), (b)(32)(A),

redesignated subsec. (g) as (e). Former subsec. (e), which related

to exceptions for certain distributions by personal service

corporations, was struck out.

 

Subsec. (f). Pub. L. 94-455, Sec. 1901(b)(32)(A), struck out

subsec. (f) which related to special rules for distribution of

antitrust stock to corporations.

 

Subsec. (g). Pub. L. 94-455, Sec. 1901(b)(32)(A), redesignated

subsec. (g) as (e).

 

1971 - Subsec. (b)(1)(B). Pub. L. 92-178, Sec. 312(a)(1),

substituted "corporation, unless subparagraph (D) applies" for

"corporation" where first appearing.

 

Subsec. (b)(1)(D). Pub. L. 92-178, Sec. 312(a)(2), added subpar.

(D).

 

Subsec. (d)(2). Pub. L. 92-178, Sec. 312(a)(3), substituted

"corporation, unless paragraph (3) applies" for "corporation" where

first appearing.

 

Subsec. (d)(3), (4). Pub. L. 92-178, Sec. 312(a)(4), added par.

(3) and redesignated former par. (3) as (4).

 

1969 - Subsec. (b)(1)(B)(ii). Pub. L. 91-172, Secs. 211(b)(1),

905(b)(2), substituted "1250(a), 1251(c), or 1252(a)" for "or

1250(a)" and inserted reference to section 311(a).

 

Subsec. (d)(2)(B). Pub. L. 91-172, Secs. 211(b)(2), 905(b)(2),

substituted "1250(a), 1251(c), or 1252(a)", for "or 1250(a)" and

inserted reference to section 311(a).

 

1966 - Subsec. (b)(1)(B)(ii). Pub. L. 89-570 included reference

to section 617(d)(1).

 

Subsec. (b)(1)(C). Pub. L. 89-809 substituted "gross income which

is effectively connected with the conduct of a trade or business

within the United States" for "gross income from sources within the

United States" in cl. (i), "gross income which is not effectively

connected with the conduct of a trade or business within the United

States" for "gross income from sources without the United States"

in cl. (ii), and inserted text following cl. (ii) setting out the

treatment to be accorded gross income for any period before the

first taxable year beginning after December 31, 1966.

 

Subsec. (d)(2)(B). Pub. L. 89-570 included reference to section

617(d)(1).

 

1964 - Subsec. (b). Pub. L. 88-484 included amount of gain

recognized under section 341(f).

 

Pub. L. 88-272 inserted reference to section 1250(a).

 

Subsec. (d). Pub. L. 88-484 included amount of gain recognized

under section 341(f).

 

Pub. L. 88-272 inserted reference to section 1250(a).

 

1962 - Subsec. (b)(1)(B). Pub. L. 87-834, Sec. 13(f)(2),

substituted "subsection (b) or (c) of section 311 or under section

1245(a)" for "subsection (b) or (c) of section 311".

 

Subsec. (b)(1)(C). Pub. L. 87-834, Sec. 5(a), added subpar. (C).

 

Subsec. (d)(2). Pub. L. 87-834, Sec. 13(f)(2), substituted

"subsection (b) or (c) of section 311 or under section 1245(a)" for

"subsection (b) or (c) of section 311".

 

Subsec. (d)(3). Pub. L. 87-834, Sec. 5(b), added par. (3).

 

Subsecs. (f), (g). Pub. L. 87-403 added subsec. (f) and

redesignated former subsec. (f) as (g).

 

 

EFFECTIVE DATE OF 2003 AMENDMENT

 

Section 302(f) of Pub. L. 108-27 provided that: "(1) IN GENERAL.

Except as provided in paragraph (2), the amendments made by this

section shall apply to taxable years beginning after December

31, 2002.

(2) REGULATED INVESTMENT COMPANIES AND REAL ESTATE

INVESTMENT TRUSTS.-In the case of a regulated investment

company or a real estate investment trust, the amendments

made by this section shall apply to taxable years ending after

December 31, 2002; except that dividends received by such

a company or trust on or before such date shall not be treated

as qualified dividend income (as defined in section 1(h)(11)(B)

of the Internal Revenue Code of 1986, as added by this Act)."

 

Section 303 of Pub. L. 108-27 provided that: "All provisions of,

and amendments made by, this title shall not apply to taxable

years beginning after December 31, 2008, and the Internal Revenue

Code of 1986 shall be applied and administered to such years as

if such provisions and amendments had never been enacted."

 

 

 

EFFECTIVE DATE OF 1988 AMENDMENT

 

Amendment by section 1006(e)(10)-(12) of Pub. L. 100-647

effective, except as otherwise provided, as if included in the

provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which

such amendment relates, see section 1019(a) of Pub. L. 100-647, set

out as a note under section 1 of this title.

 

Amendment by section 2004(j)(3)(B) of Pub. L. 100-647 effective,

except as otherwise provided, as if included in the provisions of

the Revenue Act of 1987, Pub. L. 100-203, title X, to which such

amendment relates, see section 2004(u) of Pub. L. 100-647, set out

as a note under section 56 of this title.

 

 

EFFECTIVE DATE OF 1987 AMENDMENT

 

Section 10222(b)(2) of Pub. L. 100-203, as amended by Pub. L.

100-647, title II, Sec. 2004(j)(4), Nov. 10, 1988, 102 Stat. 3605,

provided that:

"(A) In general. - The amendment made by paragraph (1) [amending

this section] shall apply to distributions after December 15, 1987.

For purposes of applying such amendment to any such distribution -

"(i) for purposes of determining earnings and profits, such

amendment shall be deemed to be in effect for all periods whether

before, on, or after December 15, 1987, but

"(ii) such amendment shall not affect the determination of

whether any distribution on or before December 15, 1987, is a

dividend and the amount of any reduction in accumulated earnings

and profits on account of any such distribution.

"(B) Exception. - The amendment made by paragraph (1) shall not

apply for purposes of determining gain or loss on any disposition

of stock after December 15, 1987, and before January 1, 1989, if

such disposition is pursuant to a written binding contract,

governmental order, letter of intent or preliminary agreement, or

stock acquisition agreement, in effect on or before December 15,

1987."

 

 

EFFECTIVE DATE OF 1986 AMENDMENT

 

Section 612(c) of Pub. L. 99-514 provided that: "The amendments

made by this section [amending this section and sections 584, 642,

643, 702, 854, and 857 of this title, repealing section 116 of this

title, and enacting provisions set out as a note under section 584

of this title] shall apply to taxable years beginning after

December 31, 1986."

 

Amendment by section 1804(f)(2)(B) of Pub. L. 99-514 effective,

except as otherwise provided, as if included in the provisions of

the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such

amendment relates, see section 1881 of Pub. L. 99-514, set out as a

note under section 48 of this title.

 

 

EFFECTIVE DATE OF 1984 AMENDMENT

 

Amendment by section 54(b) of Pub. L. 98-369 applicable to

distributions after July 18, 1984, in taxable years ending after

July 18, 1984, see section 54(d)(2) of Pub. L. 98-369, set out as a

note under section 311 of this title.

 

Section 61(e)(4) of Pub. L. 98-369 provided that: "The amendment

made by subsection (d) [amending this section] shall apply to

distributions after the date of the enactment of this Act [July 18,

1984] in taxable years ending after such date."

 

Amendment by section 712(i)(1) of Pub. L. 98-369 effective as if

included in the provision of the Tax Equity and Fiscal

Responsibility Act of 1982, Pub. L. 97-248, to which such amendment

relates, see section 715 of Pub. L. 98-369, set out as a note under

section 31 of this title.

 

 

EFFECTIVE DATE OF 1978 AMENDMENT

 

Section 3(d) of Pub. L. 95-628 provided that: "The amendments

made by this section [amending this section and section 312 of this

title] shall apply to distributions made after the date of the

enactment of this Act [Nov. 10, 1978]."

 

 

EFFECTIVE DATE OF 1976 AMENDMENT

 

Amendment by section 205(c)(1)(B), (C) of Pub. L. 94-455

effective for taxable years ending after Dec. 31, 1975, see section

205(e) of Pub. L. 94-455, set out as an Effective Date note under

section 1254 of this title.

 

Amendment by section 1901(a)(41), (b)(32)(A) of Pub. L. 94-455

effective for taxable years beginning after Dec. 31, 1976, see

section 1901(d) of Pub. L. 94-455, set out as a note under section

2 of this title.

 

 

EFFECTIVE DATE OF 1971 AMENDMENT

 

Section 312(b) of Pub. L. 92-178 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to distributions made after November 8, 1971."

 

 

EFFECTIVE DATE OF 1969 AMENDMENT

 

Section 211(c) of Pub. L. 91-172 provided that: "The amendments

made by this section [enacting section 1251 of this title and

amending this section and sections 312, 341, 453, and 751 of this

title] shall apply to taxable years beginning after December 31,

1969."

 

Amendment by section 905(b)(2) of Pub. L. 91-172 effective with

respect to distributions made after Nov. 30, 1969, see section

905(c) of Pub. L. 91-172, set out as a note under section 311 of

this title.

 

 

EFFECTIVE DATE OF 1966 AMENDMENTS

 

Amendment by Pub. L. 89-809 applicable with respect to taxable

years beginning after Dec. 31, 1966, see section 104(n) of Pub. L.

89-809, set out as a note under section 11 of this title.

 

Amendment by Pub. L. 89-570 applicable to taxable years ending

after Sept. 12, 1966, but only in respect of expenditures paid or

incurred after such date, see section 3 of Pub. L. 89-570, set out

as an Effective Date note under section 617 of this title.

 

 

EFFECTIVE DATE OF 1964 AMENDMENTS

 

Amendment by Pub. L. 88-484 applicable with respect to

transactions after Aug. 22, 1964, in taxable years ending after

such date, see section 2 of Pub. L. 88-484, set out as a note under

section 341 of this title.

 

Amendment by Pub. L. 88-272 applicable to dispositions after Dec.

31, 1963, in taxable years ending after such date, see section

231(c) of Pub. L. 88-272, set out as an Effective Date note under

section 1250 of this title.

 

 

EFFECTIVE DATE OF 1962 AMENDMENTS

 

Section 5(d) of Pub. L. 87-834 provided that: "The amendments

made by this section [amending this section and section 245 of this

title] shall apply to distributions made after December 31, 1962."

 

Amendment by section 13(f)(2) of Pub. L. 87-834 applicable to

taxable years beginning after Dec. 31, 1962, see section 13(g) of

Pub. L. 87-834, set out as an Effective Date note under section

1245 of this title.

 

Section 2(b) of Pub. L. 87-403 provided that: "The amendments

made by this section [amending this section] shall apply only with

respect to distributions made after the date of the enactment of

this Act [Feb. 2, 1962]."

 

 

STUDY OF CORPORATE PROVISIONS

 

Section 634 of Pub. L. 99-514 directed Secretary of the Treasury

or his delegate to conduct a study of proposals to reform the

provisions of subchapter C of chapter 1 of the Internal Revenue

Code of 1986, and not later than Jan. 1, 1988 (due date extended to

Jan. 1, 1992, by Pub. L. 101-508, title XI, Sec. 11831(b), Nov. 5,

1990, 104 Stat. 1388-559), to submit to Committee on Ways and Means

of House of Representatives and Committee on Finance of Senate a

report on the study conducted (together with such recommendations

he deemed advisable).

 

 

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

 

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

 

 

-SECREF-

 

SECTION REFERRED TO IN OTHER SECTIONS

 

This section is referred to in sections 279, 302, 304, 305, 306,

316, 317, 331, 341, 356, 646, 852, 877, 1023, 1059, 1368, 1445,

2107, 2501 of this title.