
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-519 Section 4(2)]
[CITE: 26USC275]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
                      PART IX--ITEMS NOT DEDUCTIBLE
 
Sec. 275. Certain taxes


(a) General rule

    No deduction shall be allowed for the following taxes:
        (1) Federal income taxes, including--
            (A) the tax imposed by section 3101 (relating to the tax on 
        employees under the Federal Insurance Contributions Act);
            (B) the taxes imposed by sections 3201 and 3211 (relating to 
        the taxes on railroad employees and railroad employee 
        representatives); and
            (C) the tax withheld at source on wages under section 3402.

        (2) Federal war profits and excess profits taxes.
        (3) Estate, inheritance, legacy, succession, and gift taxes.
        (4) Income, war profits, and excess profits taxes imposed by the 
    authority of any foreign country or possession of the United States 
    if--
            (A) the taxpayer chooses to take to any extent the benefits 
        of section 901,
            (B) such taxes are paid or accrued with respect to foreign 
        trade income (within the meaning of section 923(b)) \1\ of a 
        FSC, or
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    \1\ See References in Text note below.
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            (C) such taxes are paid or accrued with respect to 
        qualifying foreign trade income (as defined in section 941).

        (5) Taxes on real property, to the extent that section 164(d) 
    requires such taxes to be treated as imposed on another taxpayer.
        (6) Taxes imposed by chapters 41, 42, 43, 44, 46, and 54.

Paragraph (1) shall not apply to the tax imposed by section 59A. 
Paragraph (1) shall not apply to any taxes to the extent such taxes are 
allowable as a deduction under section 164(f). A rule similar to the 
rule of section 943(d) shall apply for purposes of paragraph (4)(C).

(b) Cross reference

            For disallowance of certain other taxes, see section 164(c).

(Added Pub. L. 88-272, title II, Sec. 207(b)(3)(A), Feb. 26, 1964, 78 
Stat. 42; amended Pub. L. 93-406, title II, Sec. 1016(a)(1), Sept. 2, 
1974, 88 Stat. 929; Pub. L. 94-455, title XIII, Sec. 1307(d)(2)(A), 
title XVI, Sec. 1605(b)(1), title XIX, Sec. 1901(a)(39), Oct. 4, 1976, 
90 Stat. 1727, 1754, 1771; Pub. L. 95-600, title VII, Sec. 701(t)(3)(B), 
Nov. 6, 1978, 92 Stat. 2912; Pub. L. 97-248, title III, Secs. 305(a), 
308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98-21, title I, 
Sec. 124(c)(5), Apr. 20, 1983, 97 Stat. 91; Pub. L. 98-67, title I, 
Sec. 102(a) Aug. 5, 1983, 97 Stat. 369; Pub. L. 98-369, div. A, title I, 
Sec. 67(b)(2), title VIII, Sec. 801(d)(5), July 18, 1984, 98 Stat. 587, 
996; Pub. L. 99-499, title V, Sec. 516(b)(2)(B), Oct. 17, 1986, 100 
Stat. 1771; Pub. L. 100-203, title X, Sec. 10228(b), Dec. 22, 1987, 101 
Stat. 1330-418; Pub. L. 106-519, Sec. 4(2), Nov. 15, 2000, 114 Stat. 
2432.)

                       References in Text

    The Federal Insurance Contributions Act, referred to in subsec. 
(a)(1)(A), is act Aug. 16, 1954, ch. 736, Secs. 3101, 3102, 3111, 3112, 
3121 to 3128, 68A Stat. 415, as amended, which is classified generally 
to chapter 21 (Sec. 3101 et seq.) of this title. For complete 
classification of this Act to the Code, see section 3128 of this title 
and Tables.
    Section 923, referred to in subsec. (a)(4)(B), was repealed by Pub. 
L. 106-519, Sec. 2, Nov. 15, 2000, 114 Stat. 2423.

                          Codification

    Pub. L. 95-600, Sec. 701(t)(3)(B) (effective Oct. 4, 1976, see Pub. 
L. 95-600, Sec. 701(t)(5), set out as an Effective Date of 1978 
Amendment note under section 859 of this title) repealed Sec. 1605(b)(1) 
of Pub. L. 94-455, cited as a credit to this section, which had 
duplicated the amendment to subsec. (a)(6) made by Sec. 1307(d)(2)(A) of 
Pub. L. 94-455.


                               Amendments

    2000--Subsec. (a). Pub. L. 106-519, Sec. 4(2)(B), inserted at end 
``A rule similar to the rule of section 943(d) shall apply for purposes 
of paragraph (4)(C).''
    Subsec. (a)(4)(C). Pub. L. 106-519, Sec. 4(2)(A), added subpar. (C).
    1987--Subsec. (a)(6). Pub. L. 100-203 substituted ``46, and 54'' for 
``and 46''.
    1986--Subsec. (a). Pub. L. 99-499 inserted at end ``Paragraph (1) 
shall not apply to the tax imposed by section 59A.''
    1984--Subsec. (a)(4). Pub. L. 98-369, Sec. 801(d)(5), inserted 
provision disallowing a deduction for income, war profits, and excess 
profits taxes if such taxes are paid or accrued with respect to foreign 
trade income, within the meaning of section 923(b), of a FSC.
    Subsec. (a)(6). Pub. L. 98-369, Sec. 67(b)(2), inserted reference to 
chapter 46.
    1983--Subsec. (a). Pub. L. 98-21 inserted at end ``Paragraph (1) 
shall not apply to any taxes to the extent such taxes are allowable as a 
deduction under section 164(f).''
    Subsec. (a)(1). Pub. L. 98-67 repealed amendments made by Pub. L. 
97-248. See 1982 Amendment note below.
    1982--Subsec. (a)(1). Pub. L. 97-248 provided that, applicable to 
payments of interest, dividends, and patronage dividends paid or 
credited after June 30, 1983, par. (1) is amended by striking out 
``and'' at end of subpar. (B), by substituting ``; and'' for the period 
at end of subpar. (C), and by inserting subpar. (D) relating to the tax 
withheld at source on interest, dividends, and patronage dividends under 
section 3451. Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 5, 
1983, 97 Stat. 369, repealed subtitle A (Secs. 301-308) of title III of 
Pub. L. 97-248 as of the close of June 30, 1983, and provided that the 
Internal Revenue Code of 1954 [now 1986] [this title] shall be applied 
and administered (subject to certain exceptions) as if such subtitle A 
(and the amendments made by such subtitle A) had not been enacted.
    1976--Subsec. (a)(1)(C). Pub. L. 94-455, Sec. 1901(a)(39), struck 
out ``, and corresponding provisions of prior revenue laws'' after 
``under section 3402''.
    Subsec. (a)(6). Pub. L. 94-455, Secs. 1307(d)(2)(A), 1605(b)(1), 
inserted reference to chapters 41 and 44.
    1974--Subsec. (a)(6). Pub. L. 93-406 added par. (6).


                    Effective Date of 2000 Amendment

    Amendment by Pub. L. 106-519 applicable to transactions after Sept. 
30, 2000, with special rules relating to existing foreign sales 
corporations, see section 5 of Pub. L. 106-519, set out as an Effective 
Date note under section 941 of this title.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-203 applicable to consideration received 
after Dec. 22, 1987, in taxable years ending after such date, except not 
applicable in the case of any acquisition pursuant to a written binding 
contract in effect on Dec. 15, 1987, and at all times thereafter before 
the acquisition, see section 10228(d) of Pub. L. 100-203, set out as an 
Effective Date note under section 5881 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-499 applicable to taxable years beginning 
after Dec. 31, 1986, see section 516(c) of Pub. L. 99-499, set out as a 
note under section 26 of this title.


                    Effective Date of 1984 Amendment

    Amendment by section 67(b)(2) of Pub. L. 98-369 applicable to 
payments under agreements entered into or renewed after June 14, 1984, 
in taxable years ending after such date, with contracts entered into 
before June 15, 1984, which are amended after June 14, 1984, in any 
significant relevant aspect to be treated as a contract entered into 
after June 14, 1984, see section 67(e) of Pub. L. 98-369, set out as an 
Effective Date note under section 280G of this title.
    Amendment by section 801(d)(5) of Pub. L. 98-369 applicable to 
transactions after Dec. 31, 1984, in taxable years ending after such 
date, see section 805(a)(1) of Pub. L. 98-369, as amended, set out as a 
note under section 245 of this title.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 98-21 applicable to taxable years beginning 
after Dec. 31, 1989, see section 124(d)(2) of Pub. L. 98-21, set out as 
a note under section 1401 of this title.


                    Effective Date of 1976 Amendment

    For effective date of amendment by section 1307(d)(2)(A) of Pub. L. 
94-455, see section 1307(e) of Pub. L. 94-455, set out as a note under 
section 501 of this title.
    For effective date of amendment by section 1605(b)(1) of Pub. L. 94-
455, see section 1608(d) of Pub. L. 94-455, set out as a note under 
section 856 of this title.
    Amendment by section 1901(a)(39) 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 1974 Amendment

    Amendment by Pub. L. 93-406 applicable, except as otherwise provided 
in section 1017(c) through (i) of Pub. L. 93-406, for plan years 
beginning after Sept. 2, 1974, but, in the case of plans in existence on 
Jan. 1, 1974, amendment by Pub. L. 93-406 applicable for plan years 
beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93-406, set 
out as a note under section 410 of this title.


                             Effective Date

    Section applicable to taxable years beginning after Dec. 31, 1963, 
see section 207(c) of Pub. L. 88-272, set out as an Effective Date of 
1964 Amendment note under section 164 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 535, 545, 556, 901, 903, 
908, 4971 of this title.
