
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1381]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
              Subchapter T--Cooperatives and Their Patrons
 
                  PART I--TAX TREATMENT OF COOPERATIVES
 
Sec. 1381. Organizations to which part applies


(a) In general

    This part shall apply to--
        (1) any organization exempt from tax under section 521 (relating 
    to exemption of farmers' cooperatives from tax), and
        (2) any corporation operating on a cooperative basis other than 
    an organization--
            (A) which is exempt from tax under this chapter,
            (B) which is subject to the provisions of--
                (i) part II of subchapter H (relating to mutual savings 
            banks, etc.), or
                (ii) subchapter L (relating to insurance companies), or

            (C) which is engaged in furnishing electric energy, or 
        providing telephone service, to persons in rural areas.

(b) Tax on certain farmers' cooperatives

    An organization described in subsection (a)(1) shall be subject to 
the taxes imposed by section 11 or 1201.

(Added Pub. L. 87-834, Sec. 17(a), Oct. 16, 1962, 76 Stat. 1045.)


                             Effective Date

    Section 17(c) of Pub. L. 87-834, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) For the cooperatives.--Except as provided in paragraph (3), 
the amendments made by subsections (a) and (b) [enacting this 
subchapter, amending sections 521 and 6072 of this title, and repealing 
section 522 of this title] shall apply to taxable years of organizations 
described in section 1381(a) of the Internal Revenue Code of 1986 
[formerly I.R.C. 1954] (as added by subsection (a)) beginning after 
December 31, 1962.
    ``(2) For the patrons.--Except as provided in paragraph (3), section 
1385 of the Internal Revenue Code of 1986 (as added by subsection (a)) 
shall apply with respect to any amount received from any organization 
described in section 1381(a) of such Code, to the extent that such 
amount is paid by such organization in a taxable year of such 
organization beginning after December 31, 1962.
    ``(3) Application of existing law.--In the case of any money, 
written notice of allocation, or other property paid by any organization 
described in section 1381(a)--
        ``(A) before the first day of the first taxable year of such 
    organization beginning after December 31, 1962, or
        ``(B) on or after such first day with respect to patronage 
    occurring before such first day,
the tax treatment of such money, written notice of allocation, or other 
property (including the tax treatment of gain or loss on the redemption, 
sale, or other disposition of such written notice of allocation) by any 
person shall be made under the Internal Revenue Code of 1986 without 
regard to subchapter T of chapter 1 of such Code [this subchapter].''

                  Section Referred to in Other Sections

    This section is referred to in sections 52, 860E, 1382, 1385, 6044, 
6072 of this title; title 12 section 3019.
