
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1373]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
  Subchapter S--Tax Treatment of S Corporations and Their Shareholders
 
                         PART III--SPECIAL RULES
 
Sec. 1373. Foreign income


(a) S corporation treated as partnership, etc.

    For purposes of subparts A and F of part III, and part V, of 
subchapter N (relating to income from sources without the United 
States)--
        (1) an S corporation shall be treated as a partnership, and
        (2) the shareholders of such corporation shall be treated as 
    partners of such partnership.

(b) Recapture of overall foreign loss

    For purposes of section 904(f) (relating to recapture of overall 
foreign loss), the making or termination of an election to be treated as 
an S corporation shall be treated as a disposition of the business.

(Added Pub. L. 97-354, Sec. 2, Oct. 19, 1982, 96 Stat. 1682.)


                            Prior Provisions

    A prior section 1373, added Pub. L. 85-866, title I, Sec. 64(a), 
Sept. 2, 1958, 72 Stat. 1652; amended Pub. L. 89-389, Sec. 2(b)(3), Apr. 
14, 1966, 80 Stat. 114; Pub. L. 91-172, title III, Sec. 301(b)(10), Dec. 
30, 1969, 83 Stat. 586, related to taxation of corporation undistributed 
taxable income to shareholders, prior to the general revision of this 
subchapter by section 2 of Pub. L. 97-354.


                             Effective Date

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