
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 106-554 Section 1(a)(7)[401(i)]]
[Document affected by Public Law 107-16 Section 542(e)(3)]
[CITE: 26USC7701]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                         CHAPTER 79--DEFINITIONS
 
Sec. 7701. Definitions

    (a) When used in this title, where not otherwise distinctly 
expressed or manifestly incompatible with the intent thereof--

                             (1) Person

        The term ``person'' shall be construed to mean and include an 
    individual, a trust, estate, partnership, association, company or 
    corporation.

                     (2) Partnership and partner

        The term ``partnership'' includes a syndicate, group, pool, 
    joint venture, or other unincorporated organization, through or by 
    means of which any business, financial operation, or venture is 
    carried on, and which is not, within the meaning of this title, a 
    trust or estate or a corporation; and the term ``partner'' includes 
    a member in such a syndicate, group, pool, joint venture, or 
    organization.

                           (3) Corporation

        The term ``corporation'' includes associations, joint-stock 
    companies, and insurance companies.

                            (4) Domestic

        The term ``domestic'' when applied to a corporation or 
    partnership means created or organized in the United States or under 
    the law of the United States or of any State unless, in the case of 
    a partnership, the Secretary provides otherwise by regulations.

                             (5) Foreign

        The term ``foreign'' when applied to a corporation or 
    partnership means a corporation or partnership which is not 
    domestic.

                            (6) Fiduciary

        The term ``fiduciary'' means a guardian, trustee, executor, 
    administrator, receiver, conservator, or any person acting in any 
    fiduciary capacity for any person.

                              (7) Stock

        The term ``stock'' includes shares in an association, joint-
    stock company, or insurance company.

                           (8) Shareholder

        The term ``shareholder'' includes a member in an association, 
    joint-stock company, or insurance company.

                          (9) United States

        The term ``United States'' when used in a geographical sense 
    includes only the States and the District of Columbia.

                             (10) State

        The term ``State'' shall be construed to include the District of 
    Columbia, where such construction is necessary to carry out 
    provisions of this title.

            (11) Secretary of the Treasury and Secretary

        (A) Secretary of the Treasury

            The term ``Secretary of the Treasury'' means the Secretary 
        of the Treasury, personally, and shall not include any delegate 
        of his.

        (B) Secretary

            The term ``Secretary'' means the Secretary of the Treasury 
        or his delegate.

                            (12) Delegate

        (A) In general

            The term ``or his delegate''--
                (i) when used with reference to the Secretary of the 
            Treasury, means any officer, employee, or agency of the 
            Treasury Department duly authorized by the Secretary of the 
            Treasury directly, or indirectly by one or more 
            redelegations of authority, to perform the function 
            mentioned or described in the context; and
                (ii) when used with reference to any other official of 
            the United States, shall be similarly construed.

        (B) Performance of certain functions in Guam or American Samoa

            The term ``delegate,'' in relation to the performance of 
        functions in Guam or American Samoa with respect to the taxes 
        imposed by chapters 1, 2, and 21, also includes any officer or 
        employee of any other department or agency of the United States, 
        or of any possession thereof, duly authorized by the Secretary 
        (directly, or indirectly by one or more redelegations of 
        authority) to perform such functions.

                          (13) Commissioner

        The term ``Commissioner'' means the Commissioner of Internal 
    Revenue.

                            (14) Taxpayer

        The term ``taxpayer'' means any person subject to any internal 
    revenue tax.

    (15) Military or naval forces and armed forces of the United 
                                   States

        The term ``military or naval forces of the United States'' and 
    the term ``Armed Forces of the United States'' each includes all 
    regular and reserve components of the uniformed services which are 
    subject to the jurisdiction of the Secretary of Defense, the 
    Secretary of the Army, the Secretary of the Navy, or the Secretary 
    of the Air Force, and each term also includes the Coast Guard. The 
    members of such forces include commissioned officers and personnel 
    below the grade of commissioned officers in such forces.

                       (16) Withholding agent

        The term ``withholding agent'' means any person required to 
    deduct and withhold any tax under the provisions of section 1441, 
    1442, 1443, or 1461.

                        (17) Husband and wife

        As used in sections 152(b)(4), 682, and 2516, if the husband and 
    wife therein referred to are divorced, wherever appropriate to the 
    meaning of such sections, the term ``wife'' shall be read ``former 
    wife'' and the term ``husband'' shall be read ``former husband''; 
    and, if the payments described in such sections are made by or on 
    behalf of the wife or former wife to the husband or former husband 
    instead of vice versa, wherever appropriate to the meaning of such 
    sections, the term ``husband'' shall be read ``wife'' and the term 
    ``wife'' shall be read ``husband.''

                   (18) International organization

        The term ``international organization'' means a public 
    international organization entitled to enjoy privileges, exemptions, 
    and immunities as an international organization under the 
    International Organizations Immunities Act (22 U.S.C. 288-288f).

             (19) Domestic building and loan association

        The term ``domestic building and loan association'' means a 
    domestic building and loan association, a domestic savings and loan 
    association, and a Federal savings and loan association--
            (A) which either (i) is an insured institution within the 
        meaning of section 401(a) \1\ of the National Housing Act (12 
        U.S.C., sec. 1724(a)), or (ii) is subject by law to supervision 
        and examination by State or Federal authority having supervision 
        over such associations;
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    \1\ See References in Text note below.
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            (B) the business of which consists principally of acquiring 
        the savings of the public and investing in loans; and
            (C) at least 60 percent of the amount of the total assets of 
        which (at the close of the taxable year) consists of--
                (i) cash,
                (ii) obligations of the United States or of a State or 
            political subdivision thereof, and stock or obligations of a 
            corporation which is an instrumentality of the United States 
            or of a State or political subdivision thereof, but not 
            including obligations the interest on which is excludable 
            from gross income under section 103,
                (iii) certificates of deposit in, or obligations of, a 
            corporation organized under a State law which specifically 
            authorizes such corporation to insure the deposits or share 
            accounts of member associations,
                (iv) loans secured by a deposit or share of a member,
                (v) loans (including redeemable ground rents, as defined 
            in section 1055) secured by an interest in real property 
            which is (or, from the proceeds of the loan, will become) 
            residential real property or real property used primarily 
            for church purposes, loans made for the improvement of 
            residential real property or real property used primarily 
            for church purposes, provided that for purposes of this 
            clause, residential real property shall include single or 
            multifamily dwellings, facilities in residential 
            developments dedicated to public use or property used on a 
            nonprofit basis for residents, and mobile homes not used on 
            a transient basis,
                (vi) loans secured by an interest in real property 
            located within an urban renewal area to be developed for 
            predominantly residential use under an urban renewal plan 
            approved by the Secretary of Housing and Urban Development 
            under part A or part B of title I of the Housing Act of 
            1949, as amended, or located within any area covered by a 
            program eligible for assistance under section 103 of the 
            Demonstration Cities and Metropolitan Development Act of 
            1966, as amended, and loans made for the improvement of any 
            such real property,
                (vii) loans secured by an interest in educational, 
            health, or welfare institutions or facilities, including 
            structures designed or used primarily for residential 
            purposes for students, residents, and persons under care, 
            employees, or members of the staff of such institutions or 
            facilities,
                (viii) property acquired through the liquidation of 
            defaulted loans described in clause (v), (vi), or (vii),
                (ix) loans made for the payment of expenses of college 
            or university education or vocational training, in 
            accordance with such regulations as may be prescribed by the 
            Secretary,
                (x) property used by the association in the conduct of 
            the business described in subparagraph (B), and
                (xi) any regular or residual interest in a REMIC, and 
            any regular interest in a FASIT, but only in the proportion 
            which the assets of such REMIC or FASIT consist of property 
            described in any of the preceding clauses of this 
            subparagraph; except that if 95 percent or more of the 
            assets of such REMIC or FASIT are assets described in 
            clauses (i) through (x), the entire interest in the REMIC or 
            FASIT shall qualify.

        At the election of the taxpayer, the percentage specified in 
        this subparagraph shall be applied on the basis of the average 
        assets outstanding during the taxable year, in lieu of the close 
        of the taxable year, computed under regulations prescribed by 
        the Secretary. For purposes of clause (v), if a multifamily 
        structure securing a loan is used in part for nonresidential 
        purposes, the entire loan is deemed a residential real property 
        loan if the planned residential use exceeds 80 percent of the 
        property's planned use (determined as of the time the loan is 
        made). For purposes of clause (v), loans made to finance the 
        acquisition or development of land shall be deemed to be loans 
        secured by an interest in residential real property if, under 
        regulations prescribed by the Secretary, there is reasonable 
        assurance that the property will become residential real 
        property within a period of 3 years from the date of acquisition 
        of such land; but this sentence shall not apply for any taxable 
        year unless, within such 3-year period, such land becomes 
        residential real property. For purposes of determining whether 
        any interest in a REMIC qualifies under clause (xi), any regular 
        interest in another REMIC held by such REMIC shall be treated as 
        a loan described in a preceding clause under principles similar 
        to the principles of clause (xi); except that, if such REMIC's 
        are part of a tiered structure, they shall be treated as 1 REMIC 
        for purposes of clause (xi).

                            (20) Employee

        For the purpose of applying the provisions of section 79 with 
    respect to group-term life insurance purchased for employees, for 
    the purpose of applying the provisions of sections 104, 105, and 106 
    with respect to accident and health insurance or accident and health 
    plans, and for the purpose of applying the provisions of subtitle A 
    with respect to contributions to or under a stock bonus, pension, 
    profit-sharing, or annuity plan, and with respect to distributions 
    under such a plan, or by a trust forming part of such a plan, and 
    for purposes of applying section 125 with respect to cafeteria 
    plans, the term ``employee'' shall include a full-time life 
    insurance salesman who is considered an employee for the purpose of 
    chapter 21, or in the case of services performed before January 1, 
    1951, who would be considered an employee if his services were 
    performed during 1951.

                              (21) Levy

        The term ``levy'' includes the power of distraint and seizure by 
    any means.

                        (22) Attorney General

        The term ``Attorney General'' means the Attorney General of the 
    United States.

                          (23) Taxable year

        The term ``taxable year'' means the calendar year, or the fiscal 
    year ending during such calendar year, upon the basis of which the 
    taxable income is computed under subtitle A. ``Taxable year'' means, 
    in the case of a return made for a fractional part of a year under 
    the provisions of subtitle A or under regulations prescribed by the 
    Secretary, the period for which such return is made.

                          (24) Fiscal year

        The term ``fiscal year'' means an accounting period of 12 months 
    ending on the last day of any month other than December.

               (25) Paid or incurred, paid or accrued

        The terms ``paid or incurred'' and ``paid or accrued'' shall be 
    construed according to the method of accounting upon the basis of 
    which the taxable income is computed under subtitle A.

                       (26) Trade or business

        The term ``trade or business'' includes the performance of the 
    functions of a public office.

                           (27) Tax Court

        The term ``Tax Court'' means the United States Tax Court.

                          (28) Other terms

        Any term used in this subtitle with respect to the application 
    of, or in connection with, the provisions of any other subtitle of 
    this title shall have the same meaning as in such provisions.

                     (29) Internal Revenue Code

        The term ``Internal Revenue Code of 1986'' means this title, and 
    the term ``Internal Revenue Code of 1939'' means the Internal 
    Revenue Code enacted February 10, 1939, as amended.

                      (30) United States person

        The term ``United States person'' means--
            (A) a citizen or resident of the United States,
            (B) a domestic partnership,
            (C) a domestic corporation,
            (D) any estate (other than a foreign estate, within the 
        meaning of paragraph (31)), and
            (E) any trust if--
                (i) a court within the United States is able to exercise 
            primary supervision over the administration of the trust, 
            and
                (ii) one or more United States persons have the 
            authority to control all substantial decisions of the trust.

                    (31) Foreign estate or trust

        (A) Foreign estate

            The term ``foreign estate'' means an estate the income of 
        which, from sources without the United States which is not 
        effectively connected with the conduct of a trade or business 
        within the United States, is not includible in gross income 
        under subtitle A.

        (B) Foreign trust

            The term ``foreign trust'' means any trust other than a 
        trust described in subparagraph (E) of paragraph (30).

                        (32) Cooperative bank

        The term ``cooperative bank'' means an institution without 
    capital stock organized and operated for mutual purposes and without 
    profit, which--
            (A) either--
                (i) is an insured institution within the meaning of 
            section 401(a) \2\ of the National Housing Act (12 U.S.C., 
            sec. 1724(a)), or
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    \2\ See References in Text note below.
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                (ii) is subject by law to supervision and examination by 
            State or Federal authority having supervision over such 
            institutions, and
            (B) meets the requirements of subparagraphs (B) and (C) of 
        paragraph (19) of this subsection (relating to definition of 
        domestic building and loan association).

    In determining whether an institution meets the requirements 
    referred to in subparagraph (B) of this paragraph, any reference to 
    an association or to a domestic building and loan association 
    contained in paragraph (19) shall be deemed to be a reference to 
    such institution.

                    (33) Regulated public utility

        The term ``regulated public utility'' means--
            (A) A corporation engaged in the furnishing or sale of--
                (i) electric energy, gas, water, or sewerage disposal 
            services, or
                (ii) transportation (not included in subparagraph (C)) 
            on an intrastate, suburban, municipal, or interurban 
            electric railroad, on an intrastate, municipal, or suburban 
            trackless trolley system, or on a municipal or suburban bus 
            system, or
                (iii) transportation (not included in clause (ii)) by 
            motor vehicle--

        if the rates for such furnishing or sale, as the case may be, 
        have been established or approved by a State or political 
        subdivision thereof, by an agency or instrumentality of the 
        United States, by a public service or public utility commission 
        or other similar body of the District of Columbia or of any 
        State or political subdivision thereof, or by a foreign country 
        or an agency or instrumentality or political subdivision 
        thereof.
            (B) A corporation engaged as a common carrier in the 
        furnishing or sale of transportation of gas by pipe line, if 
        subject to the jurisdiction of the Federal Energy Regulatory 
        Commission.
            (C) A corporation engaged as a common carrier (i) in the 
        furnishing or sale of transportation by railroad, if subject to 
        the jurisdiction of the Surface Transportation Board, or (ii) in 
        the furnishing or sale of transportation of oil or other 
        petroleum products (including shale oil) by pipe line, if 
        subject to the jurisdiction of the Federal Energy Regulatory 
        Commission or if the rates for such furnishing or sale are 
        subject to the jurisdiction of a public service or public 
        utility commission or other similar body of the District of 
        Columbia or of any State.
            (D) A corporation engaged in the furnishing or sale of 
        telephone or telegraph service, if the rates for such furnishing 
        or sale meet the requirements of subparagraph (A).
            (E) A corporation engaged in the furnishing or sale of 
        transportation as a common carrier by air, subject to the 
        jurisdiction of the Secretary of Transportation.
            (F) A corporation engaged in the furnishing or sale of 
        transportation by a water carrier subject to jurisdiction under 
        subchapter II of chapter 135 of title 49.
            (G) A rail carrier subject to part A of subtitle IV of title 
        49, if (i) substantially all of its railroad properties have 
        been leased to another such railroad corporation or corporations 
        by an agreement or agreements entered into before January 1, 
        1954, (ii) each lease is for a term of more than 20 years, and 
        (iii) at least 80 percent or more of its gross income (computed 
        without regard to dividends and capital gains and losses) for 
        the taxable year is derived from such leases and from sources 
        described in subparagraphs (A) through (F), inclusive. For 
        purposes of the preceding sentence, an agreement for lease of 
        railroad properties entered into before January 1, 1954, shall 
        be considered to be a lease including such term as the total 
        number of years of such agreement may, unless sooner terminated, 
        be renewed or continued under the terms of the agreement, and 
        any such renewal or continuance under such agreement shall be 
        considered part of the lease entered into before January 1, 
        1954.
            (H) A common parent corporation which is a common carrier by 
        railroad subject to part A of subtitle IV of title 49 if at 
        least 80 percent of its gross income (computed without regard to 
        capital gains or losses) is derived directly or indirectly from 
        sources described in subparagraphs (A) through (F), inclusive. 
        For purposes of the preceding sentence, dividends and interest, 
        and income from leases described in subparagraph (G), received 
        from a regulated public utility shall be considered as derived 
        from sources described in subparagraphs (A) through (F), 
        inclusive, if the regulated public utility is a member of an 
        affiliated group (as defined in section 1504) which includes the 
        common parent corporation.

    The term ``regulated public utility'' does not (except as provided 
    in subparagraphs (G) and (H)) include a corporation described in 
    subparagraphs (A) through (F), inclusive, unless 80 percent or more 
    of its gross income (computed without regard to dividends and 
    capital gains and losses) for the taxable year is derived from 
    sources described in subparagraphs (A) through (F), inclusive. If 
    the taxpayer establishes to the satisfaction of the Secretary that 
    (i) its revenue from regulated rates described in subparagraph (A) 
    or (D) and its revenue derived from unregulated rates are derived 
    from the operation of a single interconnected and coordinated system 
    or from the operation of more than one such system, and (ii) the 
    unregulated rates have been and are substantially as favorable to 
    users and consumers as are the regulated rates, then such revenue 
    from such unregulated rates shall be considered, for purposes of the 
    preceding sentence, as income derived from sources described in 
    subparagraph (A) or (D).

         [(34) Repealed. Pub. L. 98-369, div. A, title IV, 
               Sec. 4112(b)(11), July 18, 1984, 98 Stat. 792]

                        (35) Enrolled actuary

        The term ``enrolled actuary'' means a person who is enrolled by 
    the Joint Board for the Enrollment of Actuaries established under 
    subtitle C of the title III of the Employee Retirement Income 
    Security Act of 1974.

                   (36) Income tax return preparer

        (A) In general

            The term ``income tax return preparer'' means any person who 
        prepares for compensation, or who employs one or more persons to 
        prepare for compensation, any return of tax imposed by subtitle 
        A or any claim for refund of tax imposed by subtitle A. For 
        purposes of the preceding sentence, the preparation of a 
        substantial portion of a return or claim for refund shall be 
        treated as if it were the preparation of such return or claim 
        for refund.

        (B) Exceptions

            A person shall not be an ``income tax return preparer'' 
        merely because such person--
                (i) furnishes typing, reproducing, or other mechanical 
            assistance,
                (ii) prepares a return or claim for refund of the 
            employer (or of an officer or employee of the employer) by 
            whom he is regularly and continuously employed,
                (iii) prepares as a fiduciary a return or claim for 
            refund for any person, or
                (iv) prepares a claim for refund for a taxpayer in 
            response to any notice of deficiency issued to such taxpayer 
            or in response to any waiver of restriction after the 
            commencement of an audit of such taxpayer or another 
            taxpayer if a determination in such audit of such other 
            taxpayer directly or indirectly affects the tax liability of 
            such taxpayer.

                   (37) Individual retirement plan

        The term ``individual retirement plan'' means--
            (A) an individual retirement account described in section 
        408(a), and
            (B) an individual retirement annuity described in section 
        408(b).

                          (38) Joint return

        The term ``joint return'' means a single return made jointly 
    under section 6013 by a husband and wife.

             (39) Persons residing outside United States

        If any citizen or resident of the United States does not reside 
    in (and is not found in) any United States judicial district, such 
    citizen or resident shall be treated as residing in the District of 
    Columbia for purposes of any provision of this title relating to--
            (A) jurisdiction of courts, or
            (B) enforcement of summons.

                    (40) Indian tribal government

        (A) In general

            The term ``Indian tribal government'' means the governing 
        body of any tribe, band, community, village, or group of 
        Indians, or (if applicable) Alaska Natives, which is determined 
        by the Secretary, after consultation with the Secretary of the 
        Interior, to exercise governmental functions.

        (B) Special rule for Alaska Natives

            No determination under subparagraph (A) with respect to 
        Alaska Natives shall grant or defer any status or powers other 
        than those enumerated in section 7871. Nothing in the Indian 
        Tribal Governmental Tax Status Act of 1982, or in the amendments 
        made thereby, shall validate or invalidate any claim by Alaska 
        Natives of sovereign authority over lands or people.

                              (41) TIN

        The term ``TIN'' means the identifying number assigned to a 
    person under section 6109.

                   (42) Substituted basis property

        The term ``substituted basis property'' means property which 
    is--
            (A) transferred basis property, or
            (B) exchanged basis property.

                   (43) Transferred basis property

        The term ``transferred basis property'' means property having a 
    basis determined under any provision of subtitle A (or under any 
    corresponding provision of prior income tax law) providing that the 
    basis shall be determined in whole or in part by reference to the 
    basis in the hands of the donor, grantor, or other transferor.

                    (44) Exchanged basis property

        The term ``exchanged basis property'' means property having a 
    basis determined under any provision of subtitle A (or under any 
    corresponding provision of prior income tax law) providing that the 
    basis shall be determined in whole or in part by reference to other 
    property held at any time by the person for whom the basis is to be 
    determined.

                   (45) Nonrecognition transaction

        The term ``nonrecognition transaction'' means any disposition of 
    property in a transaction in which gain or loss is not recognized in 
    whole or in part for purposes of subtitle A.

        (46) Determination of whether there is a collective 
                            bargaining agreement

        In determining whether there is a collective bargaining 
    agreement between employee representatives and 1 or more employers, 
    the term ``employee representatives'' shall not include any 
    organization more than one-half of the members of which are 
    employees who are owners, officers, or executives of the employer. 
    An agreement shall not be treated as a collective bargaining 
    agreement unless it is a bona fide agreement between bona fide 
    employee representatives and 1 or more employers.

(b) Definition of resident alien and nonresident alien

                           (1) In general

        For purposes of this title (other than subtitle B)--

        (A) Resident alien

            An alien individual shall be treated as a resident of the 
        United States with respect to any calendar year if (and only if) 
        such individual meets the requirements of clause (i), (ii), or 
        (iii):
            (i) Lawfully admitted for permanent residence

                Such individual is a lawful permanent resident of the 
            United States at any time during such calendar year.
            (ii) Substantial presence test

                Such individual meets the substantial presence test of 
            paragraph (3).
            (iii) First year election

                Such individual makes the election provided in paragraph 
            (4).

        (B) Nonresident alien

            An individual is a nonresident alien if such individual is 
        neither a citizen of the United States nor a resident of the 
        United States (within the meaning of subparagraph (A)).

       (2) Special rules for first and last year of residency

        (A) First year of residency

            (i) In general

                If an alien individual is a resident of the United 
            States under paragraph (1)(A) with respect to any calendar 
            year, but was not a resident of the United States at any 
            time during the preceding calendar year, such alien 
            individual shall be treated as a resident of the United 
            States only for the portion of such calendar year which 
            begins on the residency starting date.
            (ii) Residency starting date for individuals 
                    lawfully admitted for permanent residence

                In the case of an individual who is a lawfully permanent 
            resident of the United States at any time during the 
            calendar year, but does not meet the substantial presence 
            test of paragraph (3), the residency starting date shall be 
            the first day in such calendar year on which he was present 
            in the United States while a lawful permanent resident of 
            the United States.
            (iii) Residency starting date for individuals 
                    meeting substantial presence test

                In the case of an individual who meets the substantial 
            presence test of paragraph (3) with respect to any calendar 
            year, the residency starting date shall be the first day 
            during such calendar year on which the individual is present 
            in the United States.
            (iv) Residency starting date for individuals making 
                    first year election

                In the case of an individual who makes the election 
            provided by paragraph (4) with respect to any calendar year, 
            the residency starting date shall be the 1st day during such 
            calendar year on which the individual is treated as a 
            resident of the United States under that paragraph.

        (B) Last year of residency

            An alien individual shall not be treated as a resident of 
        the United States during a portion of any calendar year if--
                (i) such portion is after the last day in such calendar 
            year on which the individual was present in the United 
            States (or, in the case of an individual described in 
            paragraph (1)(A)(i), the last day on which he was so 
            described),
                (ii) during such portion the individual has a closer 
            connection to a foreign country than to the United States, 
            and
                (iii) the individual is not a resident of the United 
            States at any time during the next calendar year.

        (C) Certain nominal presence disregarded

            (i) In general

                For purposes of subparagraphs (A)(iii) and (B), an 
            individual shall not be treated as present in the United 
            States during any period for which the individual 
            establishes that he has a closer connection to a foreign 
            country than to the United States.
            (ii) Not more than 10 days disregarded

                Clause (i) shall not apply to more than 10 days on which 
            the individual is present in the United States.

                    (3) Substantial presence test

        (A) In general

            Except as otherwise provided in this paragraph, an 
        individual meets the substantial presence test of this paragraph 
        with respect to any calendar year (hereinafter in this 
        subsection referred to as the ``current year'') if--
                (i) such individual was present in the United States on 
            at least 31 days during the calendar year, and
                (ii) the sum of the number of days on which such 
            individual was present in the United States during the 
            current year and the 2 preceding calendar years (when 
            multiplied by the applicable multiplier determined under the 
            following table) equals or exceeds 183 days:

                                                          The applicable
      In the case of days in:                             multiplier is:
              Current year......................                     1  
              1st preceding year................                   \1/3\
              2nd preceding year................                   \1/6\

        (B) Exception where individual is present in the United States 
                during less than one-half of current year and closer 
                connection to foreign country is established

            An individual shall not be treated as meeting the 
        substantial presence test of this paragraph with respect to any 
        current year if--
                (i) such individual is present in the United States on 
            fewer than 183 days during the current year, and
                (ii) it is established that for the current year such 
            individual has a tax home (as defined in section 911(d)(3) 
            without regard to the second sentence thereof) in a foreign 
            country and has a closer connection to such foreign country 
            than to the United States.

        (C) Subparagraph (B) not to apply in certain cases

            Subparagraph (B) shall not apply to any individual with 
        respect to any current year if at any time during such year--
                (i) such individual had an application for adjustment of 
            status pending, or
                (ii) such individual took other steps to apply for 
            status as a lawful permanent resident of the United States.

        (D) Exception for exempt individuals or for certain medical 
                conditions

            An individual shall not be treated as being present in the 
        United States on any day if--
                (i) such individual is an exempt individual for such 
            day, or
                (ii) such individual was unable to leave the United 
            States on such day because of a medical condition which 
            arose while such individual was present in the United 
            States.

                       (4) First-year election

        (A) An alien individual shall be deemed to meet the requirements 
    of this subparagraph if such individual--
            (i) is not a resident of the United States under clause (i) 
        or (ii) of paragraph (1)(A) with respect to a calendar year 
        (hereinafter referred to as the ``election year''),
            (ii) was not a resident of the United States under paragraph 
        (1)(A) with respect to the calendar year immediately preceding 
        the election year,
            (iii) is a resident of the United States under clause (ii) 
        of paragraph (1)(A) with respect to the calendar year 
        immediately following the election year, and
            (iv) is both--
                (I) present in the United States for a period of at 
            least 31 consecutive days in the election year, and
                (II) present in the United States during the period 
            beginning with the first day of such 31-day period and 
            ending with the last day of the election year (hereinafter 
            referred to as the ``testing period'') for a number of days 
            equal to or exceeding 75 percent of the number of days in 
            the testing period (provided that an individual shall be 
            treated for purposes of this subclause as present in the 
            United States for a number of days during the testing period 
            not exceeding 5 days in the aggregate, notwithstanding his 
            absence from the United States on such days).

        (B) An alien individual who meets the requirements of 
    subparagraph (A) shall, if he so elects, be treated as a resident of 
    the United States with respect to the election year.
        (C) An alien individual who makes the election provided by 
    subparagraph (B) shall be treated as a resident of the United States 
    for the portion of the election year which begins on the 1st day of 
    the earliest testing period during such year with respect to which 
    the individual meets the requirements of clause (iv) of subparagraph 
    (A).
        (D) The rules of subparagraph (D)(i) of paragraph (3) shall 
    apply for purposes of determining an individual's presence in the 
    United States under this paragraph.
        (E) An election under subparagraph (B) shall be made on the 
    individual's tax return for the election year, provided that such 
    election may not be made before the individual has met the 
    substantial presence test of paragraph (3) with respect to the 
    calendar year immediately following the election year.
        (F) An election once made under subparagraph (B) remains in 
    effect for the election year, unless revoked with the consent of the 
    Secretary.

                    (5) Exempt individual defined

        For purposes of this subsection--

        (A) In general

            An individual is an exempt individual for any day if, for 
        such day, such individual is--
                (i) a foreign government-related individual,
                (ii) a teacher or trainee,
                (iii) a student, or
                (iv) a professional athlete who is temporarily in the 
            United States to compete in a charitable sports event 
            described in section 274(l)(1)(B).

        (B) Foreign government-related individual

            The term ``foreign government-related individual'' means any 
        individual temporarily present in the United States by reason 
        of--
                (i) diplomatic status, or a visa which the Secretary 
            (after consultation with the Secretary of State) determines 
            represents full-time diplomatic or consular status for 
            purposes of this subsection,
                (ii) being a full-time employee of an international 
            organization, or
                (iii) being a member of the immediate family of an 
            individual described in clause (i) or (ii).

        (C) Teacher or trainee

            The term ``teacher or trainee'' means any individual--
                (i) who is temporarily present in the United States 
            under subparagraph (J) or (Q) of section 101(15) of the 
            Immigration and Nationality Act (other than as a student), 
            and
                (ii) who substantially complies with the requirements 
            for being so present.

        (D) Student

            The term ``student'' means any individual--
                (i) who is temporarily present in the United States--
                    (I) under subparagraph (F) or (M) of section 101(15) 
                of the Immigration and Nationality Act, or
                    (II) as a student under subparagraph (J) or (Q) of 
                such section 101(15), and

                (ii) who substantially complies with the requirements 
            for being so present.

        (E) Special rules for teachers, trainees, and students

            (i) Limitation on teachers and trainees

                An individual shall not be treated as an exempt 
            individual by reason of clause (ii) of subparagraph (A) for 
            the current year if, for any 2 calendar years during the 
            preceding 6 calendar years, such person was an exempt person 
            under clause (ii) or (iii) of subparagraph (A). In the case 
            of an individual all of whose compensation is described in 
            section 872(b)(3), the preceding sentence shall be applied 
            by substituting ``4 calendar years'' for ``2 calendar 
            years''.
            (ii) Limitation on students

                For any calendar year after the 5th calendar year for 
            which an individual was an exempt individual under clause 
            (ii) or (iii) of subparagraph (A), such individual shall not 
            be treated as an exempt individual by reason of clause (iii) 
            of subparagraph (A), unless such individual establishes to 
            the satisfaction of the Secretary that such individual does 
            not intend to permanently reside in the United States and 
            that such individual meets the requirements of subparagraph 
            (D)(ii).

                    (6) Lawful permanent resident

        For purposes of this subsection, an individual is a lawful 
    permanent resident of the United States at any time if--
            (A) such individual has the status of having been lawfully 
        accorded the privilege of residing permanently in the United 
        States as an immigrant in accordance with the immigration laws, 
        and
            (B) such status has not been revoked (and has not been 
        administratively or judicially determined to have been 
        abandoned).

                  (7) Presence in the United States

        For purposes of this subsection--

        (A) In general

            Except as provided in subparagraph (B), (C), or (D), an 
        individual shall be treated as present in the United States on 
        any day if such individual is physically present in the United 
        States at any time during such day.

        (B) Commuters from Canada or Mexico

            If an individual regularly commutes to employment (or self-
        employment) in the United States from a place of residence in 
        Canada or Mexico, such individual shall not be treated as 
        present in the United States on any day during which he so 
        commutes.

        (C) Transit between 2 foreign points

            If an individual, who is in transit between 2 points outside 
        the United States, is physically present in the United States 
        for less than 24 hours, such individual shall not be treated as 
        present in the United States on any day during such transit.

        (D) Crew members temporarily present

            An individual who is temporarily present in the United 
        States on any day as a regular member of the crew of a foreign 
        vessel engaged in transportation between the United States and a 
        foreign country or a possession of the United States shall not 
        be treated as present in the United States on such day unless 
        such individual otherwise engages in any trade or business in 
        the United States on such day.

                        (8) Annual statements

        The Secretary may prescribe regulations under which an 
    individual who (but for subparagraph (B) or (D) of paragraph (3)) 
    would meet the substantial presence test of paragraph (3) is 
    required to submit an annual statement setting forth the basis on 
    which such individual claims the benefits of subparagraph (B) or (D) 
    of paragraph (3), as the case may be.

                          (9) Taxable year

        (A) In general

            For purposes of this title, an alien individual who has not 
        established a taxable year for any prior period shall be treated 
        as having a taxable year which is the calendar year.

        (B) Fiscal year taxpayer

            If--
                (i) an individual is treated under paragraph (1) as a 
            resident of the United States for any calendar year, and
                (ii) after the application of subparagraph (A), such 
            individual has a taxable year other than a calendar year,

        he shall be treated as a resident of the United States with 
        respect to any portion of a taxable year which is within such 
        calendar year.

                 (10) Coordination with section 877

        If--
            (A) an alien individual was treated as a resident of the 
        United States during any period which includes at least 3 
        consecutive calendar years (hereinafter referred to as the 
        ``initial residency period''), and
            (B) such individual ceases to be treated as a resident of 
        the United States but subsequently becomes a resident of the 
        United States before the close of the 3rd calendar year 
        beginning after the close of the initial residency period,

    such individual shall be taxable for the period after the close of 
    the initial residency period and before the day on which he 
    subsequently became a resident of the United States in the manner 
    provided in section 877(b). The preceding sentence shall apply only 
    if the tax imposed pursuant to section 877(b) exceeds the tax which, 
    without regard to this paragraph, is imposed pursuant to section 
    871.

                          (11) Regulations

        The Secretary shall prescribe such regulations as may be 
    necessary or appropriate to carry out the purposes of this 
    subsection.

(c) Includes and including

    The terms ``includes'' and ``including'' when used in a definition 
contained in this title shall not be deemed to exclude other things 
otherwise within the meaning of the term defined.

(d) Commonwealth of Puerto Rico

    Where not otherwise distinctly expressed or manifestly incompatible 
with the intent thereof, references in this title to possessions of the 
United States shall be treated as also referring to the Commonwealth of 
Puerto Rico.

(e) Treatment of certain contracts for providing services, etc.

    For purposes of chapter 1--

                           (1) In general

        A contract which purports to be a service contract shall be 
    treated as a lease of property if such contract is properly treated 
    as a lease of property, taking into account all relevant factors 
    including whether or not--
            (A) the service recipient is in physical possession of the 
        property,
            (B) the service recipient controls the property,
            (C) the service recipient has a significant economic or 
        possessory interest in the property,
            (D) the service provider does not bear any risk of 
        substantially diminished receipts or substantially increased 
        expenditures if there is nonperformance under the contract,
            (E) the service provider does not use the property 
        concurrently to provide significant services to entities 
        unrelated to the service recipient, and
            (F) the total contract price does not substantially exceed 
        the rental value of the property for the contract period.

                       (2) Other arrangements

        An arrangement (including a partnership or other pass-thru 
    entity) which is not described in paragraph (1) shall be treated as 
    a lease if such arrangement is properly treated as a lease, taking 
    into account all relevant factors including factors similar to those 
    set forth in paragraph (1).

     (3) Special rules for contracts or arrangements involving 
               solid waste disposal, energy, and clean water 
                                 facilities

        (A) In general

            Notwithstanding paragraphs (1) and (2), and except as 
        provided in paragraph (4), any contract or arrangement between a 
        service provider and a service recipient--
                (i) with respect to--
                    (I) the operation of a qualified solid waste 
                disposal facility,
                    (II) the sale to the service recipient of electrical 
                or thermal energy produced at a cogeneration or 
                alternative energy facility, or
                    (III) the operation of a water treatment works 
                facility, and

                (ii) which purports to be a service contract,

        shall be treated as a service contract.

        (B) Qualified solid waste disposal facility

            For purposes of subparagraph (A), the term ``qualified solid 
        waste disposal facility'' means any facility if such facility 
        provides solid waste disposal services for residents of part or 
        all of 1 or more governmental units and substantially all of the 
        solid waste processed at such facility is collected from the 
        general public.

        (C) Cogeneration facility

            For purposes of subparagraph (A), the term ``cogeneration 
        facility'' means a facility which uses the same energy source 
        for the sequential generation of electrical or mechanical power 
        in combination with steam, heat, or other forms of useful 
        energy.

        (D) Alternative energy facility

            For purposes of subparagraph (A), the term ``alternative 
        energy facility'' means a facility for producing electrical or 
        thermal energy if the primary energy source for the facility is 
        not oil, natural gas, coal, or nuclear power.

        (E) Water treatment works facility

            For purposes of subparagraph (A), the term ``water treatment 
        works facility'' means any treatment works within the meaning of 
        section 212(2) of the Federal Water Pollution Control Act.

           (4) Paragraph (3) not to apply in certain cases

        (A) In general

            Paragraph (3) shall not apply to any qualified solid waste 
        disposal facility, cogeneration facility, alternative energy 
        facility, or water treatment works facility used under a 
        contract or arrangement if--
                (i) the service recipient (or a related entity) operates 
            such facility,
                (ii) the service recipient (or a related entity) bears 
            any significant financial burden if there is nonperformance 
            under the contract or arrangement (other than for reasons 
            beyond the control of the service provider),
                (iii) the service recipient (or a related entity) 
            receives any significant financial benefit if the operating 
            costs of such facility are less than the standards of 
            performance or operation under the contract or arrangement, 
            or
                (iv) the service recipient (or a related entity) has an 
            option to purchase, or may be required to purchase, all or a 
            part of such facility at a fixed and determinable price 
            (other than for fair market value).

        For purposes of this paragraph, the term ``related entity'' has 
        the same meaning as when used in section 168(h).

        (B) Special rules for application of subparagraph (A) with 
                respect to certain rights and allocations under the 
                contract

            For purposes of subparagraph (A), there shall not be taken 
        into account--
                (i) any right of a service recipient to inspect any 
            facility, to exercise any sovereign power the service 
            recipient may possess, or to act in the event of a breach of 
            contract by the service provider, or
                (ii) any allocation of any financial burden or benefits 
            in the event of any change in any law.

        (C) Special rules for application of subparagraph (A) in the 
                case of certain events

            (i) Temporary shut-downs, etc.

                For purposes of clause (ii) of subparagraph (A), there 
            shall not be taken into account any temporary shut-down of 
            the facility for repairs, maintenance, or capital 
            improvements, or any financial burden caused by the 
            bankruptcy or similar financial difficulty of the service 
            provider.
            (ii) Reduced costs

                For purposes of clause (iii) of subparagraph (A), there 
            shall not be taken into account any significant financial 
            benefit merely because payments by the service recipient 
            under the contract or arrangement are decreased by reason of 
            increased production or efficiency or the recovery of energy 
            or other products.

            (5) Exception for certain low-income housing

        This subsection shall not apply to any property described in 
    clause (i), (ii), (iii), or (iv) of section 1250(a)(1)(B) (relating 
    to low-income housing) if--
            (A) such property is operated by or for an organization 
        described in paragraph (3) or (4) of section 501(c), and
            (B) at least 80 percent of the units in such property are 
        leased to low-income tenants (within the meaning of section 
        167(k)(3)(B)) (as in effect on the day before the date of the 
        enactment of the Revenue Reconcilation \3\ Act of 1990).
---------------------------------------------------------------------------
    \3\ So in original. Probably should be ``Reconciliation''.
---------------------------------------------------------------------------

                           (6) Regulations

        The Secretary may prescribe such regulations as may be necessary 
    or appropriate to carry out the provisions of this subsection.

(f) Use of related persons or pass-thru entities

    The Secretary shall prescribe such regulations as may be necessary 
or appropriate to prevent the avoidance of those provisions of this 
title which deal with--
        (1) the linking of borrowing to investment, or
        (2) diminishing risks,

through the use of related persons, pass-thru entities, or other 
intermediaries.

(g) Clarification of fair market value in the case of nonrecourse 
        indebtedness

    For purposes of subtitle A, in determining the amount of gain or 
loss (or deemed gain or loss) with respect to any property, the fair 
market value of such property shall be treated as being not less than 
the amount of any nonrecourse indebtedness to which such property is 
subject.

(h) Motor vehicle operating leases

                           (1) In general

        For purposes of this title, in the case of a qualified motor 
    vehicle operating agreement which contains a terminal rental 
    adjustment clause--
            (A) such agreement shall be treated as a lease if (but for 
        such terminal rental adjustment clause) such agreement would be 
        treated as a lease under this title, and
            (B) the lessee shall not be treated as the owner of the 
        property subject to an agreement during any period such 
        agreement is in effect.

       (2) Qualified motor vehicle operating agreement defined

        For purposes of this subsection--

        (A) In general

            The term ``qualified motor vehicle operating agreement'' 
        means any agreement with respect to a motor vehicle (including a 
        trailer) which meets the requirements of subparagraphs (B), (C), 
        and (D) of this paragraph.

        (B) Minimum liability of lessor

            An agreement meets the requirements of this subparagraph if 
        under such agreement the sum of--
                (i) the amount the lessor is personally liable to repay, 
            and
                (ii) the net fair market value of the lessor's interest 
            in any property pledged as security for property subject to 
            the agreement,

        equals or exceeds all amounts borrowed to finance the 
        acquisition of property subject to the agreement. There shall 
        not be taken into account under clause (ii) any property pledged 
        which is property subject to the agreement or property directly 
        or indirectly financed by indebtedness secured by property 
        subject to the agreement.

        (C) Certification by lessee; notice of tax ownership

            An agreement meets the requirements of this subparagraph if 
        such agreement contains a separate written statement separately 
        signed by the lessee--
                (i) under which the lessee certifies, under penalty of 
            perjury, that it intends that more than 50 percent of the 
            use of the property subject to such agreement is to be in a 
            trade or business of the lessee, and
                (ii) which clearly and legibly states that the lessee 
            has been advised that it will not be treated as the owner of 
            the property subject to the agreement for Federal income tax 
            purposes.

        (D) Lessor must have no knowledge that certification is false

            An agreement meets the requirements of this subparagraph if 
        the lessor does not know that the certification described in 
        subparagraph (C)(i) is false.

            (3) Terminal rental adjustment clause defined

        (A) In general

            For purposes of this subsection, the term ``terminal rental 
        adjustment clause'' means a provision of an agreement which 
        permits or requires the rental price to be adjusted upward or 
        downward by reference to the amount realized by the lessor under 
        the agreement upon sale or other disposition of such property.

        (B) Special rule for lessee dealers

            The term ``terminal rental adjustment clause'' also includes 
        a provision of an agreement which requires a lessee who is a 
        dealer in motor vehicles to purchase the motor vehicle for a 
        predetermined price and then resell such vehicle where such 
        provision achieves substantially the same results as a provision 
        described in subparagraph (A).

(i) Taxable mortgage pools

                (1) Treated as separate corporations

        A taxable mortgage pool shall be treated as a separate 
    corporation which may not be treated as an includible corporation 
    with any other corporation for purposes of section 1501.

                  (2) Taxable mortgage pool defined

        For purposes of this title--

        (A) In general

            Except as otherwise provided in this paragraph, a taxable 
        mortgage pool is any entity (other than a REMIC or a FASIT) if--
                (i) substantially all of the assets of such entity 
            consists of debt obligations (or interests therein) and more 
            than 50 percent of such debt obligations (or interests) 
            consists of real estate mortgages (or interests therein),
                (ii) such entity is the obligor under debt obligations 
            with 2 or more maturities, and
                (iii) under the terms of the debt obligations referred 
            to in clause (ii) (or underlying arrangement), payments on 
            such debt obligations bear a relationship to payments on the 
            debt obligations (or interests) referred to in clause (i).

        (B) Portion of entities treated as pools

            Any portion of an entity which meets the definition of 
        subparagraph (A) shall be treated as a taxable mortgage pool.

        (C) Exception for domestic building and loan

            Nothing in this subsection shall be construed to treat any 
        domestic building and loan association (or portion thereof) as a 
        taxable mortgage pool.

        (D) Treatment of certain equity interests

            To the extent provided in regulations, equity interest of 
        varying classes which correspond to maturity classes of debt 
        shall be treated as debt for purposes of this subsection.

                   (3) Treatment of certain REIT's

        If--
            (A) a real estate investment trust is a taxable mortgage 
        pool, or
            (B) a qualified REIT subsidiary (as defined in section 
        856(i)(2)) of a real estate investment trust is a taxable 
        mortgage pool,

    under regulations prescribed by the Secretary, adjustments similar 
    to the adjustments provided in section 860E(d) shall apply to the 
    shareholders of such real estate investment trust.

(j) Tax treatment of Federal Thrift Savings Fund

                           (1) In general

        For purposes of this title--
            (A) the Thrift Savings Fund shall be treated as a trust 
        described in section 401(a) which is exempt from taxation under 
        section 501(a);
            (B) any contribution to, or distribution from, the Thrift 
        Savings Fund shall be treated in the same manner as 
        contributions to or distributions from such a trust; and
            (C) subject to section 401(k)(4)(B) and any dollar 
        limitation on the application of section 402(e)(3), 
        contributions to the Thrift Savings Fund shall not be treated as 
        distributed or made available to an employee or Member nor as a 
        contribution made to the Fund by an employee or Member merely 
        because the employee or Member has, under the provisions of 
        subchapter III of chapter 84 of title 5, United States Code, and 
        section 8351 of such title 5, an election whether the 
        contribution will be made to the Thrift Savings Fund or received 
        by the employee or Member in cash.

                 (2) Nondiscrimination requirements

        Notwithstanding any other provision of law, the Thrift Savings 
    Fund is not subject to the nondiscrimination requirements applicable 
    to arrangements described in section 401(k) or to matching 
    contributions (as described in section 401(m)), so long as it meets 
    the requirements of this section.

              (3) Coordination with Social Security Act

        Paragraph (1) shall not be construed to provide that any amount 
    of the employee's or Member's basic pay which is contributed to the 
    Thrift Savings Fund shall not be included in the term ``wages'' for 
    the purposes of section 209 of the Social Security Act or section 
    3121(a) of this title.

                           (4) Definitions

        For purposes of this subsection, the terms ``Member'', 
    ``employee'', and ``Thrift Savings Fund'' shall have the same 
    respective meanings as when used in subchapter III of chapter 84 of 
    title 5, United States Code.

            (5) Coordination with other provisions of law

        No provision of law not contained in this title shall apply for 
    purposes of determining the treatment under this title of the Thrift 
    Savings Fund or any contribution to, or distribution from, such 
    Fund.

(k) Treatment of certain amounts paid to charity

    In the case of any payment which, except for section 501(b) of the 
Ethics in Government Act of 1978, might be made to any officer or 
employee of the Federal Government but which is made instead on behalf 
of such officer or employee to an organization described in section 
170(c)--
        (1) such payment shall not be treated as received by such 
    officer or employee for all purposes of this title and for all 
    purposes of any tax law of a State or political subdivision thereof, 
    and
        (2) no deduction shall be allowed under any provision of this 
    title (or of any tax law of a State or political subdivision 
    thereof) to such officer or employee by reason of having such 
    payment made to such organization.

For purposes of this subsection, a Senator, a Representative in, or a 
Delegate or Resident Commissioner to, the Congress shall be treated as 
an officer or employee of the Federal Government.

(l) Regulations relating to conduit arrangements

    The Secretary may prescribe regulations recharacterizing any 
multiple-party financing transaction as a transaction directly among any 
2 or more of such parties where the Secretary determines that such 
recharacterization is appropriate to prevent avoidance of any tax 
imposed by this title.

(m) Designation of contract markets

    Any designation by the Commodity Futures Trading Commission of a 
contract market which could not have been made under the law in effect 
on the day before the date of the enactment of the Commodity Futures 
Modernization Act of 2000 shall apply for purposes of this title except 
to the extent provided in regulations prescribed by the Secretary.

(n) Cross references

                        (1) Other definitions

            For other definitions, see the following sections of Title 1 
        of the United States Code:
                (1) Singular as including plural, section 1.
                (2) Plural as including singular, section 1.
                (3) Masculine as including feminine, section 1.
                (4) Officer, section 1.
                (5) Oath as including affirmation, section 1.
                (6) County as including parish, section 2.
                (7) Vessel as including all means of water 
            transportation, section 3.
                (8) Vehicle as including all means of land 
            transportation, section 4.
                (9) Company or association as including successors and 
            assigns, section 5.

                   (2) Effect of cross references

            For effect of cross references in this title, see section 
        7806(a).

(Aug. 16, 1954, ch. 736, 68A Stat. 911; Pub. L. 86-70, Sec. 22(g), (h), 
June 25, 1959, 73 Stat. 146; Pub. L. 86-624, Sec. 18(i), (j), July 12, 
1960, 74 Stat. 416; Pub. L. 86-778, title I, Sec. 103(t), Sept. 13, 
1960, 74 Stat. 941; Pub. L. 87-834, Secs. 6(c), 7(h), Oct. 16, 1962, 76 
Stat. 982, 988; Pub. L. 87-870, Sec. 5(a), Oct. 23, 1962, 76 Stat. 1161; 
Pub. L. 88-272, title II, Secs. 204(a)(3), 234(b)(3), Feb. 26, 1964, 78 
Stat. 36, 114; Pub. L. 89-368, title I, Sec. 102(b)(5), Mar. 15, 1966, 
80 Stat. 64; Pub. L. 89-809, title I, Sec. 103(l)(1), Nov. 13, 1966, 80 
Stat. 1554; Pub. L. 90-364, title I, Sec. 103(e)(6), June 28, 1968, 82 
Stat. 264; Pub. L. 91-172, title IV, Sec. 432(c), (d), title IX, 
Sec. 960(j), Dec. 30, 1969, 83 Stat. 622, 623, 735; Pub. L. 92-606, 
Sec. 1(f)(4), Oct. 31, 1972, 86 Stat. 1497; Pub. L. 93-406, title III, 
Sec. 3043, Sept. 2, 1974, 88 Stat. 1003; Pub. L. 94-455, title XII, 
Sec. 1203(a), title XIX, Sec. 1906(a)(57), (b)(13)(A), (c)(3), Oct. 4, 
1976, 90 Stat. 1688, 1832, 1834, 1835; Pub. L. 95-600, title I, 
Sec. 157(k)(2), title VII, Sec. 701(cc)(2), Nov. 6, 1978, 92 Stat. 2809, 
2923; Pub. L. 97-34, title VII, Sec. 725(c)(4), Aug. 13, 1981, 95 Stat. 
346; Pub. L. 97-248, title II, Sec. 201(d)(10), formerly 
Sec. 201(c)(10), title III, Secs. 307(a)(17), 308(a), 336(a), Sept. 3, 
1982, 96 Stat. 421, 590, 591, 628, renumbered Sec. 201(d)(10) and 
amended Pub. L. 97-448, title III, Sec. 306(a)(1)(A)(i), (b)(3), Jan. 
12, 1983, 96 Stat. 2400, 2406; Pub. L. 97-449, Sec. 5(e), Jan. 12, 1983, 
96 Stat. 2442; Pub. L. 97-473, title II, Sec. 203, Jan. 14, 1983, 96 
Stat. 2611; Pub. L. 98-67, title I, Secs. 102(a), 104(d)(1), Aug. 5, 
1983, 97 Stat. 369, 379; Pub. L. 98-216, Sec. 3(c)(2), Feb. 14, 1984, 98 
Stat. 6; Pub. L. 98-369, div. A, title I, Secs. 31(e), 43(a)(1), 53(c), 
75(c), 138(a), title IV, Secs. 412(b)(11), 422(d)(3), 474(r)(29)(K), 
491(d)(53), title V, Sec. 526(c)(1), July 18, 1984, 98 Stat. 518, 558, 
567, 595, 672, 792, 798, 845, 852, 874; Pub. L. 98-443, Sec. 9(q), Oct. 
4, 1984, 98 Stat. 1708; Pub. L. 99-514, title II, Sec. 201(c), (d)(14), 
title VI, Secs. 671(b)(3), 673, title XI, Secs. 1137, 1147(a), 1166(a), 
title XVIII, Secs. 1802(a)(9)(C), 1810(l)(1)-(5)(A), 1842(d), 1899A(63), 
(64), Oct. 22, 1986, 100 Stat. 2138, 2142, 2317, 2319, 2486, 2493, 2511, 
2790, 2830-2832, 2853, 2962; Pub. L. 100-202, Sec. 101(m) [title VI, 
Sec. 624(a)], Dec. 22, 1987, 101 Stat. 1329-390, 1329-429; Pub. L. 100-
647, Sec. 1(c), title I, Secs. 1001(d)(2)(D), 1002(a)(2), 1006(t)(12), 
(25)(A), 1011A(m)(1), 1011B(e), 1018(g)(3), Nov. 10, 1988, 102 Stat. 
3342, 3351, 3352, 3422, 3426, 3483, 3489, 3583; Pub. L. 101-194, title 
VI, Sec. 602, Nov. 30, 1989, 103 Stat. 1762; Pub. L. 101-508, title XI, 
Secs. 11704(a)(34), 11812(b)(13), Nov. 5, 1990, 104 Stat. 1388-519, 
1388-536; Pub. L. 102-90, title III, Sec. 314(e), Aug. 14, 1991, 105 
Stat. 470; Pub. L. 102-318, title V, Sec. 521(b)(43), July 3, 1992, 106 
Stat. 313; Pub. L. 103-66, title XIII, Sec. 13238, Aug. 10, 1993, 107 
Stat. 508; Pub. L. 103-296, title III, Sec. 320(a)(3), Aug. 15, 1994, 
108 Stat. 1535; Pub. L. 104-88, title III, Sec. 304(e), Dec. 29, 1995, 
109 Stat. 944; Pub. L. 104-188, title I, Secs. 1402(b)(3), 1621(b)(8), 
(9), 1907(a)(1), (2), Aug. 20, 1996, 110 Stat. 1790, 1867, 1916; Pub. L. 
105-34, title XI, Secs. 1151(a), 1174(b), title XVI, Sec. 1601(i)(3)(A), 
Aug. 5, 1997, 111 Stat. 986, 989, 1093; Pub. L. 106-554, Sec. 1(a)(7) 
[title IV, Sec. 401(i)], Dec. 21, 2000, 114 Stat. 2763, 2763A-650.)

                       References in Text

    Section 401 of the National Housing Act, referred to in subsec. 
(a)(19)(A), (32)(A)(i), which was classified to section 1724 of Title 
12, Banks and Banking, was repealed by Pub. L. 101-73, title IV, 
Sec. 407, Aug. 9, 1989, 103 Stat. 363.
    Part A and part B of title I of the Housing Act of 1949, referred to 
in subsec. (a)(19)(C)(vi), which were classified generally to part A 
(Sec. 1450 et seq.) and part B (Sec. 1469 et seq.) of subchapter II of 
chapter 8A of Title 42, The Public Health and Welfare, were omitted from 
the Code pursuant to section 5316 of Title 42, which terminated 
authority to make new loans and grants under title I of that Act after 
Jan. 1, 1975.
    Section 103 of the Demonstration Cities and Metropolitan Development 
Act of 1966, referred to in subsec. (a)(19)(C)(vi), which was classified 
to section 3303 of Title 42, was omitted from the Code pursuant to 
section 5316 of Title 42, which terminated authority to make new loans 
and grants under title I (Sec. 101 et seq.) of that Act after Jan. 1, 
1975.
    The Internal Revenue Code of 1939, referred to in subsec. (a)(29), 
is act Feb. 10, 1939, ch. 2, 53 Stat. 1, as amended. Prior to the 
enactment of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], 
the 1939 Code was classified to former Title 26, Internal Revenue Code. 
The Internal Revenue Code of 1954 was redesignated The Internal Revenue 
Code of 1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095. 
For table of comparisons of the 1939 Code to the 1986 Code, see Table I 
preceding section 1 of this title.
    The Employee Retirement Income Security Act of 1974, referred to in 
subsec. (a)(35), is Pub. L. 93-406, Sept. 2, 1974, 88 Stat. 829, as 
amended. Subtitle C of title III of the Employee Retirement Income 
Security Act of 1974 is classified to subtitle C (Sec. 1241 et seq.) of 
subchapter II of chapter 18 of Title 29, Labor and amended subsec. 
(a)(35) of this section. For complete classification of this Act to the 
Code, see Short Title note set out under section 1001 of Title 29 and 
Tables.
    The Indian Tribal Governmental Tax Status Act of 1982, referred to 
in subsec. (a)(40)(B), is title II of Pub. L. 97-473, Jan. 14, 1983, 96 
Stat. 2607, as amended, which is classified principally to subchapter C 
(Sec. 7871) of chapter 80 of this title. For complete classification of 
this Act to the Code, see Short Title of 1983 Amendments note set out 
under section 1 of this title and Tables.
    Section 101(15) of the Immigration and Nationality Act, referred to 
in subsec. (b)(5)(C)(i), (D)(i), probably means section 101(a)(15) of 
that Act, which is classified to section 1101(a)(15) of Title 8, Aliens 
and Nationality.
    Section 212(2) of the Federal Water Pollution Control Act, referred 
to in subsec. (e)(3)(E), is classified to section 1292(2) of Title 33, 
Navigation and Navigable Waters.
    The date of the enactment of the Revenue Reconciliation Act of 1990, 
referred to in subsec. (e)(5)(B), is the date of enactment of Pub. L. 
101-508, which was approved Nov. 5, 1990.
    Section 209 of the Social Security Act, referred to in subsec. 
(j)(3), is classified to section 409 of Title 42, The Public Health and 
Welfare.
    Section 501(b) of the Ethics in Government Act of 1978, referred to 
in subsec. (k), is section 501(b) of Pub. L. 95-521, which is set out in 
the Appendix to Title 5, Government Organization and Employees.
    The date of the enactment of the Commodity Futures Modernization Act 
of 2000, referred to in subsec. (m), is the date of enactment of Pub. L. 
106-554, which was approved Dec. 21, 2000.


                               Amendments

    2000--Subsecs. (m), (n). Pub. L. 106-554 added subsec. (m) and 
redesignated former subsec. (m) as (n).
    1997--Subsec. (a)(4). Pub. L. 105-34, Sec. 1151(a), inserted before 
period at end ``unless, in the case of a partnership, the Secretary 
provides otherwise by regulations''.
    Subsec. (a)(30)(E)(ii). Pub. L. 105-34, Sec. 1601(i)(3)(A), 
substituted ``persons'' for ``fiduciaries''.
    Subsec. (b)(7)(A). Pub. L. 105-34, Sec. 1174(b)(2), substituted ``, 
(C), or (D)'' for ``or (C)''.
    Subsec. (b)(7)(D). Pub. L. 105-34, Sec. 1174(b)(1), added subpar. 
(D).
    1996--Subsec. (a)(19)(C)(xi). Pub. L. 104-188, Sec. 1621(b)(8), 
amended cl. (xi) generally. Prior to amendment, cl. (xi) read as 
follows: ``any regular or residual interest in a REMIC, but only in the 
proportion which the assets of such REMIC consist of property described 
in any of the preceding clauses of this subparagraph; except that if 95 
percent or more of the assets of such REMIC are assets described in 
clauses (i) through (x), the entire interest in the REMIC shall 
qualify.''
    Subsec. (a)(20). Pub. L. 104-188, Sec. 1402(b)(3), struck out ``, 
for the purpose of applying the provisions of section 101(b) with 
respect to employees' death benefits'' after ``health plans''.
    Subsec. (a)(30)(C) to (E). Pub. L. 104-188, Sec. 1907(a)(1), struck 
out ``and'' at end of subpar. (C), added subpars. (D) and (E), and 
struck out former subpar. (D) which read as follows: ``any estate or 
trust (other than a foreign estate or foreign trust, within the meaning 
of section 7701(a)(31)).''
    Subsec. (a)(31). Pub. L. 104-188, Sec. 1907(a)(2), reenacted heading 
without change and amended text generally. Prior to amendment, text read 
as follows: ``The terms `foreign estate' and `foreign trust' mean an 
estate or trust, as the case may be, the income of which, from sources 
without the United States which is not effectively connected with the 
conduct of a trade or business within the United States, is not 
includible in gross income under subtitle A.''
    Subsec. (i)(2)(A). Pub. L. 104-188, Sec. 1621(b)(9), inserted ``or a 
FASIT'' after ``a REMIC'' in introductory provisions.
    1995--Subsec. (a)(33)(B). Pub. L. 104-88, Sec. 304(e)(1), 
substituted ``Federal Energy Regulatory Commission'' for ``Federal Power 
Commission''.
    Subsec. (a)(33)(C)(i). Pub. L. 104-88, Sec. 304(e)(2), substituted 
``Surface Transportation Board'' for ``Interstate Commerce Commission''.
    Subsec. (a)(33)(C)(ii). Pub. L. 104-88, Sec. 304(e)(3), substituted 
``Federal Energy Regulatory Commission'' for ``Interstate Commerce 
Commission''.
    Subsec. (a)(33)(F). Pub. L. 104-88, Sec. 304(e)(4), substituted ``a 
water carrier subject to jurisdiction under subchapter II of chapter 135 
of title 49'' for ``common carrier by water, subject to the jurisdiction 
of the Interstate Commerce Commission under subchapter III of chapter 
105 of title 49, or subject to the jurisdiction of the Federal Maritime 
Board under the Intercoastal Shipping Act, 1933''.
    Subsec. (a)(33)(G). Pub. L. 104-88, Sec. 304(e)(5), substituted 
``rail carrier subject to part A of subtitle IV'' for ``railroad 
corporation subject to subchapter I of chapter 105''.
    Subsec. (a)(33)(H). Pub. L. 104-88, Sec. 304(e)(6), substituted 
``part A of subtitle IV'' for ``subchapter I of chapter 105''.
    1994--Subsec. (b)(5)(C)(i), (D)(i)(II). Pub. L. 103-296 substituted 
``(J) or (Q)'' for ``(J)''.
    1993--Subsecs. (l), (m). Pub. L. 103-66 added subsec. (l) and 
redesignated former subsec. (l) as (m).
    1992--Subsec. (j)(1)(C). Pub. L. 102-318 substituted ``402(e)(3)'' 
for ``402(a)(8)''.
    1991--Subsec. (k). Pub. L. 102-90 amended last sentence generally. 
Prior to amendment, last sentence read as follows: ``For purposes of 
this subsection, a Representative in, or a Delegate or Resident 
Commissioner to, the Congress shall be treated as an officer or employee 
of the Federal Government and a Senator or officer (except the Vice 
President) or employee of the Senate shall not be treated as an officer 
or employee of the Federal Government.''
    1990--Subsec. (e)(5)(B). Pub. L. 101-508, Sec. 11812(b)(13), 
inserted before period at end ``(as in effect on the day before the date 
of the enactment of the Revenue Reconcilation [sic] Act of 1990)''.
    Subsec. (j)(1)(C). Pub. L. 101-508, Sec. 11704(a)(34), substituted 
``(C) subject to section 401(k)(4)(B) and any dollar limitation on the 
application of section 402(a)(8),'' for ``(C) subject to, section 
401(k)(4)(B), and any dollar limitation on the application of section 
402(a)(8),''.
    1989--Subsecs. (k), (l). Pub. L. 101-194 added subsec. (k) and 
redesignated former subsec. (k) as (l).
    1988--Subsec. (a)(19). Pub. L. 100-647, Sec. 1006(t)(25)(A), 
inserted at end ``For purposes of determining whether any interest in a 
REMIC qualifies under clause (xi), any regular interest in another REMIC 
held by such REMIC shall be treated as a loan described in a preceding 
clause under principles similar to the principles of clause (xi); except 
that, if such REMIC's are part of a tiered structure, they shall be 
treated as 1 REMIC for purposes of clause (xi).''
    Subsec. (a)(19)(C)(xi). Pub. L. 100-647, Sec. 1006(t)(12), 
substituted ``are assets described'' for ``are loans described''.
    Subsec. (a)(20). Pub. L. 100-647, Sec. 1011B(e), substituted ``and 
106'' for ``106, and 125'' and inserted ``and for purposes of applying 
section 125 with respect to cafeteria plans,'' before ``the term''.
    Subsec. (a)(29). Pub. L. 100-647, Sec. 1(c), substituted ``Internal 
Revenue Code of 1986'' for ``Internal Revenue Code of 1954''.
    Subsec. (b)(5)(A)(iv). Pub. L. 100-647, Sec. 1018(g)(3), substituted 
``section 274(l)(1)(B)'' for ``section 274(k)(2)''.
    Subsec. (b)(5)(D)(i)(I). Pub. L. 100-647, Sec. 1001(d)(2)(D), 
substituted ``subparagraph (F) or (M)'' for ``subparagraph (F)''.
    Subsec. (e)(5). Pub. L. 100-647, Sec. 1002(a)(2), made technical 
correction to language of Pub. L. 99-514, Sec. 201(d)(14)(B), see 1986 
Amendment note below.
    Subsec. (j)(1)(C). Pub. L. 100-647, Sec. 1011A(m)(1), inserted ``, 
section 401(k)(4)(B),'' after ``the provisions of paragraph (2)'' in 
subpar. (C), as it read before amendment by Pub. L. 100-202. See 
Effective Date of 1988 Amendment note below.
    1987--Subsec. (j)(1)(C). Pub. L. 100-202, Sec. 101(m) [title VI, 
Sec. 624(a)(1)], which directed that ``the provisions of paragraph (2) 
and'' after ``subject to'' be struck out, was executed by striking out 
``the provisions of paragraph (2)'' after ``subject to'' in view of the 
amendment by section 1011A(m)(1) of Pub. L. 100-647 which was effective 
as if it had been included in Pub. L. 99-514. See 1988 Amendment note 
above.
    Subsec. (j)(2). Pub. L. 100-202, Sec. 101(m) [title VI, 
Sec. 624(a)(2)], added par. (2) and struck out former par. (2) which 
read as follows: ``Paragraph (1)(C) shall not apply to the Thrift 
Savings Fund unless the Fund meets the antidiscrimination requirements 
(other than any requirement relating to coverage) applicable to 
arrangements described in section 401(k) and to matching contributions. 
Rules similar to the rules of sections 401(k)(8) and 401(m)(8) (relating 
to no disqualification if excess contributions distributed) shall apply 
for purposes of the preceding sentence.''
    1986--Subsec. (a)(17). Pub. L. 99-514, Sec. 1842(d), inserted 
reference to section 2516.
    Subsec. (a)(19)(C)(xi). Pub. L. 99-514, Sec. 671(b)(3), added cl. 
(xi).
    Subsec. (a)(20). Pub. L. 99-514, Sec. 1166(a), inserted reference to 
section 125.
    Subsec. (a)(46). Pub. L. 99-514, Sec. 1137, inserted last sentence.
    Subsec. (b)(1)(A). Pub. L. 99-514, Sec. 1810(l)(2), substituted 
``the requirements of clause (i), (ii), or (iii)'' for ``the 
requirements of clause (i) or (ii)'' in introductory provisions and 
added cl. (iii).
    Subsec. (b)(2)(A)(iv). Pub. L. 99-514, Sec. 1810(l)(3), added cl. 
(iv).
    Subsec. (b)(4). Pub. L. 99-514, Sec. 1810(l)(4), added par. (4). 
Former par. (4) redesignated (5).
    Subsec. (b)(5). Pub. L. 99-514, Sec. 1810(l)(4), redesignated par. 
(4) as (5). Former par. (5) redesignated (6).
    Subsec. (b)(5)(A)(iv). Pub. L. 99-514, Sec. 1810(l)(5)(A), which 
directed that cl. (iv) be added to subpar. (4)(A), was executed by 
adding cl. (iv) to subpar. (5)(A) to reflect the probable intent of 
Congress and the intervening redesignation of par. (4) as (5) by section 
1810(l)(4) of Pub. L. 99-514.
    Subsec. (b)(5)(E)(i). Pub. L. 99-514, Sec. 1810(l)(1), inserted last 
sentence.
    Pub. L. 99-514, Sec. 1899A(63), substituted ``preceding'' for 
``preceeding''.
    Subsec. (b)(6) to (11). Pub. L. 99-514, Sec. 1810(l)(4), 
redesignated pars. (5) to (10) as pars. (6) to (11), respectively.
    Subsec. (e)(4)(A). Pub. L. 99-514, Sec. 201(d)(14)(A), substituted 
``section 168(h)'' for ``section 168(j)''.
    Pub. L. 99-514, Sec. 1802(a)(9)(C), inserted at end ``For purposes 
of this paragraph, the term `related entity' has the same meaning as 
when used in section 168(j).''
    Subsec. (e)(5). Pub. L. 99-514, Sec. 201(d)(14)(B), as amended by 
Pub. L. 100-647, Sec. 1002(a)(2), substituted ``property described in 
clause (i), (ii), (iii), or (iv) of section 1250(a)(1)(B) (relating to 
low-income housing)'' for ``low-income housing (within the meaning of 
section 168(c)(2)(F))''.
    Pub. L. 99-514, Sec. 1899A(64), substituted ``section 
168(c)(2)(F))'' for ``section 168(C)(2)(F))''.
    Subsec. (h). Pub. L. 99-514, Sec. 201(c), added subsec. (h). Former 
subsec. (h), relating to cross references, was successively redesignated 
as (i), (j), and (k).
    Subsec. (i). Pub. L. 99-514, Sec. 673, added subsec. (i). Former 
subsec. (i), relating to cross references, as previously redesignated, 
was successively redesignated as (j) and (k).
    Subsec. (j). Pub. L. 99-514, Sec. 1147(a), added subsec. (j). Former 
subsec. (j), relating to cross references, as previously redesignated, 
was redesignated as (k).
    Subsec. (k). Pub. L. 99-514, Secs. 201(c), 673, 1147(a), 
successively redesignated subsec. (h), relating to cross references, as 
subsecs. (i), (j), and (k).
    1984--Subsec. (a)(16). Pub. L. 98-369, Sec. 474(r)(29)(K), struck 
out ``1451,'' after ``1443''.
    Subsec. (a)(17). Pub. L. 98-369, Sec. 422(d)(3), struck out 
reference to sections 71 and 215.
    Subsec. (a)(33)(E). Pub. L. 98-443 substituted ``Secretary of 
Transportation'' for ``Civil Aeronautics Board''.
    Subsec. (a)(33)(G). Pub. L. 98-216 substituted ``subchapter I of 
chapter 105 of title 49'' for ``part I of the Interstate Commerce Act''.
    Subsec. (a)(34). Pub. L. 98-369, Sec. 412(b)(11), repealed par. (34) 
which defined estimated income tax in the case of an individual or a 
corporation as the estimated tax defined in section 6015(d) or 6154(c), 
respectively.
    Subsec. (a)(37)(C). Pub. L. 98-369, Sec. 491(d)(53), struck out 
subpar. (C) which included a retirement bond described in section 409 
within the term ``individual plan''.
    Subsec. (a)(42) to (45). Pub. L. 98-369, Sec. 43(a)(1), added pars. 
(42) to (45).
    Subsec. (a)(46). Pub. L. 98-369, Sec. 526(c)(1), added par. (46).
    Subsec. (b). Pub. L. 98-369, Sec. 138(a), added subsec. (b). Former 
subsec. (b), relating to includes and including, redesignated (c).
    Subsec. (c). Pub. L. 98-369, Sec. 138(a), redesignated former 
subsec. (b), relating to includes and including, as (c). Former subsec. 
(c), relating to Commonwealth of Puerto Rico, redesignated (d).
    Subsec. (d). Pub. L. 98-369, Sec. 138(a), redesignated former 
subsec. (c), relating to Commonwealth of Puerto Rico, as (d). Former 
subsec. (d), relating to cross references, redesignated (e).
    Subsec. (e). Pub. L. 98-369, Sec. 31(e), added subsec. (e). Former 
subsec. (e), relating to cross references, redesignated (f).
    Pub. L. 98-369, Sec. 138(a), redesignated former subsec. (d), 
relating to cross references, as (e).
    Subsec. (f). Pub. L. 98-369, Sec. 53(c), added subsec. (f). Former 
subsec. (f), relating to cross references, redesignated (g).
    Pub. L. 98-369, Sec. 31(e), redesignated former subsec. (e), 
relating to cross references, as (f).
    Subsec. (g). Pub. L. 98-369, Sec. 75(c), added subsec. (g). Former 
subsec. (g), relating to cross references, redesignated (h).
    Pub. L. 98-369, Sec. 53(c), redesignated former subsec. (f), 
relating to cross references, as (g).
    Subsec. (h). Pub. L. 98-369, Sec. 75(c), redesignated former subsec. 
(g), relating to cross references, as (h).
    1983--Subsec. (a)(16). Pub. L. 98-67, Sec. 102(a), repealed 
amendments made by Pub. L. 97-248. See 1982 Amendment note below.
    Subsec. (a)(33)(F). Pub. L. 97-449, Sec. 5(e)(1), substituted 
``subchapter III of chapter 105 of title 49'' for ``part III of the 
Interstate Commerce Act''.
    Subsec. (a)(33)(H). Pub. L. 97-449, Sec. 5(e)(2), substituted 
``subchapter I of chapter 105 of title 49'' for ``part I of the 
Interstate Commerce Act''.
    Subsec. (a)(38), (39). Pub. L. 97-448, Sec. 306(b)(3), redesignated 
par. (38), as added by Pub. L. 97-248, Sec. 336(a), relating to persons 
residing outside the United States, as (39).
    Subsec. (a)(40). Pub. L. 97-473 added par. (40).
    Subsec. (a)(41). Pub. L. 98-67, Sec. 104(d)(1), added par. (41).
    1982--Subsec. (a)(16). Pub. L. 97-248, Secs. 307(a)(17), 308(a), 
provided that, applicable to payments of interest, dividends, and 
patronage dividends paid or credited after June 30, 1983, par. (16) is 
amended by substituting ``1461 or 3451'' for ``or 1461''. 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.
    Subsec. (a)(38). Pub. L. 97-248, Sec. 201(d)(10), formerly 
Sec. 201(c)(10), added par. (38) relating to joint return.
    Pub. L. 97-248, Sec. 336(a), added par. (38) relating to persons 
residing outside the United States.
    1981--Subsec. (a)(34)(A). Pub. L. 97-34 substituted ``section 
6015(d)'' for ``section 6015(c)''.
    1978--Subsec. (a)(36)(B)(iii). Pub. L. 95-600, Sec. 701(cc)(2), 
substituted ``prepares as a fiduciary a return or claim for refund for 
any person, or'' for ``prepares a return or claim for refund for any 
trust or estate with respect to which he is a fiduciary, or''.
    Subsec. (a)(37). Pub. L. 95-600, Sec. 157(k)(2), added par. (37).
    1976--Subsec. (a)(4). Pub. L. 94-455, Sec. 1906(c)(3), struck out 
``or Territory'' after ``any State''.
    Subsec. (a)(11). Pub. L. 94-455, Sec. 1906(a)(57)(A), substituted 
definitions of ``Secretary of the Treasury'' and ``Secretary'' for 
``Secretary.--The term `Secretary' means the Secretary of the 
Treasury''.
    Subsec. (a)(12)(A). Pub. L. 94-455, Sec. 1906(a)(57)(B), substituted 
definition of ``or his delegate'' for definition of ``Secretary of his 
delegate''.
    Subsec. (a)(19), (23), (33). Pub. L. 94-455, Sec. 1906(b)(13)(A), 
struck out ``or his delegate'' after ``Secretary'' wherever appearing.
    Subsec. (a)(36). Pub. L. 94-455, Sec. 1203(a), added par. (36).
    1974--Subsec. (a)(35). Pub. L. 93-406 added par. (35).
    1972--Subsec. (a)(12)(B). Pub. L. 92-606 inserted reference to 
chapter 1.
    1969--Subsec. (a)(19)(A). Pub. L. 91-172, Sec. 432(c) reenacted 
subpar. (A) without change.
    Subsec. (a)(19)(B). Pub. L. 91-172, Sec. 432(c), struck out 
reference to subpar. (C).
    Subsec. (a)(19)(C). Pub. L. 91-172, Sec. 432(c), substituted 60 
percent for 90 percent in text preceding cl. (i), reenacted cl. (i) 
without change, in cl. (ii), excluded obligations the interest on which 
was excludible from gross income under section 103, expanded provisions 
of former cl. (iii) and transferred them to cl. (v), reenacted cl. (iv) 
without change, redesignated former cls. (v) and (vi) as cls. (viii) and 
(x) and added cls. (iii), (vi), (vii) and (ix), and text following cl. 
(x).
    Subsec. (a)(19)(D) to (F). Pub. L. 91-172, Sec. 432(c), struck out 
subpars. (D) to (F) and text following subpar. (F) which had further 
qualified the assets.
    Subsec. (a)(27). Pub. L. 91-172, Sec. 960(j), substituted ``United 
States Tax Court'' for ``Tax Court of the United States''.
    Subsec. (a)(32). Pub. L. 91-172, Sec. 432(d), struck out references 
to subpars. (D), (E) and (F) and struck out ``determined with the 
application of the second, third, and fourth sentences of paragraph 
(19).'' in subpar. (B) and, in text following subpar. (B), struck out 
provisions relating to the deduction allowable for a reasonable addition 
to the reserve for bad debts.
    1968--Subsec. (a)(34)(B). Pub. L. 90-364 substituted ``section 
6154(c)'' for ``section 6016(b)''.
    1966--Subsec. (a)(31). Pub. L. 89-809 substituted ``, from sources 
without the United States which is not effectively connected with the 
conduct of a trade or business within the United States,'' for ``from 
sources without the United States''.
    Pub. L. 89-368 added par. (34).
    1964--Subsec. (a)(20). Pub. L. 88-272 inserted ``For the purpose of 
applying the provisions of section 79 with respect to group-term life 
insurance purchased for employees''.
    Subsec. (a)(33). Pub. L. 88-272 added par. (33).
    1962--Subsec. (a)(19). Pub. L. 87-834, Sec. 6(c), amended par. (19) 
generally. Prior to such amendment, subsection read as follows: ``The 
term `domestic building and loan association' means a domestic building 
and loan association, a domestic savings and loan association, and a 
Federal savings and loan association, substantially all the business of 
which is confined to making loans to members.''
    Subsec. (a)(30), (31). Pub. L. 87-834, Sec. 7(h), added pars. (30), 
(31).
    Subsec. (a)(32). Pub. L. 87-870 added par. (32).
    1960--Subsec. (a)(9), (10). Pub. L. 86-624, Sec. 18(i), (j), struck 
out reference to the Territory of Hawaii.
    Subsec. (a)(12). Pub. L. 86-778 designated existing provisions as 
par. (A) and added par. (B).
    1959--Subsec. (a)(9). Pub. L. 86-70, Sec. 22(g), substituted ``the 
Territory of Hawaii'' for ``the Territories of Alaska and Hawaii''.
    Subsec. (a)(10). Pub. L. 86-70, Sec. 22(h), substituted ``Territory 
of Hawaii'' for ``Territories''.


                    Effective Date of 1997 Amendment

    Section 1151(b) of Pub. L. 105-34 provided that: ``Any regulations 
issued with respect to the amendment made by subsection (a) [amending 
this section] shall apply to partnerships created or organized after the 
date determined under section 7805(b) of the Internal Revenue Code of 
1986 (without regard to paragraph (2) thereof) with respect to such 
regulations.''
    Section 1174(c) of Pub. L. 105-34 provided that:
    ``(1) In general.--The amendments made by this section [amending 
this section and sections 861 and 863 of this title] shall apply to 
remuneration for services performed in taxable years beginning after 
December 31, 1997.
    ``(2) Presence.--The amendment made by subsection (b) [amending this 
section] shall apply to taxable years beginning after December 31, 
1997.''
    Amendment by section 1601(i)(3)(A) of Pub. L. 105-34 effective as if 
included in the provisions of the Small Business Job Protection Act of 
1996, Pub. L. 104-188, to which it relates, see section 1601(j) of Pub. 
L. 105-34, set out as a note under section 23 of this title.


                    Effective Date of 1996 Amendments

    Section 1601(i)(4) of Pub. L. 105-34 provided that: ``The Secretary 
of the Treasury may by regulations or other administrative guidance 
provide that the amendments made by section 1907(a) of the Small 
Business Job Protection Act of 1996 [Pub. L. 104-188, amending this 
section] shall not apply to a trust with respect to a reasonable period 
beginning on the date of the enactment of such Act [Aug. 20, 1996], if--
        ``(A) such trust is in existence on August 20, 1996, and is a 
    United States person for purposes of the Internal Revenue Code of 
    1986 on such date (determined without regard to such amendments),
        ``(B) no election is in effect under section 1907(a)(3)(B) of 
    such Act [set out as a note below] with respect to such trust,
        ``(C) before the expiration of such reasonable period, such 
    trust makes the modifications necessary to be treated as a United 
    States person for purposes of such Code (determined with regard to 
    such amendments), and
        ``(D) such trust meets such other conditions as the Secretary 
    may require.''
    Amendment by section 1402(b)(3) of Pub. L. 104-188 applicable with 
respect to decedents dying after Aug. 20, 1996, see section 1402(c) of 
Pub. L. 104-188, set out as a note under section 101 of this title.
    Amendment by section 1621(b)(8), (9) of Pub. L. 104-188 effective 
Sept. 1, 1997, see section 1621(d) of Pub. L. 104-188, set out as a note 
under section 26 of this title.
    Section 1907(a)(3) of Pub. L. 104-188, as amended by Pub. L. 105-34, 
title XI, Sec. 1161(a), Aug. 5, 1997, 111 Stat. 987, provided that: 
``The amendments made by this subsection [amending this section] shall 
apply--
        ``(A) to taxable years beginning after December 31, 1996, or
        ``(B) at the election of the trustee of a trust, to taxable 
    years ending after the date of the enactment of this Act [Aug. 20, 
    1996].
Such an election, once made, shall be irrevocable. To the extent 
prescribed in regulations by the Secretary of the Treasury or his 
delegate, a trust which was in existence on August 20, 1996 (other than 
a trust treated as owned by the grantor under subpart E of part I of 
subchapter J of chapter 1 of the Internal Revenue Code of 1986), and 
which was treated as a United States person on the day before the date 
of the enactment of this Act may elect to continue to be treated as a 
United States person notwithstanding section 7701(a)(30)(E) of such 
Code.''
    [Section 1161(b) of Pub. L. 105-34 provided that: ``The amendment 
made by subsection (a) [amending section 1907(a)(3) of Pub. L. 104-188, 
set out above] shall take effect as if included in the amendments made 
by section 1907(a) of the Small Business Job Protection Act of 1996 
[Pub. L. 104-188].'']


                    Effective Date of 1995 Amendment

    Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2 of 
Pub. L. 104-88, set out as an Effective Date note under section 701 of 
Title 49, Transportation.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-296 effective with calendar quarter 
following Aug. 15, 1994, see section 320(c) of Pub. L. 103-296, set out 
as a note under section 871 of this title.


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-318 applicable to distributions after Dec. 
31, 1992, see section 521(e) of Pub. L. 102-318, set out as a note under 
section 402 of this title.


                    Effective Date of 1991 Amendment

    Amendment by Pub. L. 102-90 effective Jan. 1, 1992, see section 
314(g)(1) of Pub. L. 102-90, as amended, set out as a note under section 
31-2 of Title 2, The Congress.


                    Effective Date of 1990 Amendment

    Amendment by section 11812(b)(13) of Pub. L. 101-508 applicable to 
property placed in service after Nov. 5, 1990, but not applicable to any 
property to which section 168 of this title does not apply by reason of 
subsec. (f)(5) of section 168, and not applicable to rehabilitation 
expenditures described in section 252(f)(5) of Pub. L. 99-514, see 
section 11812(c) of Pub. L. 101-508, set out as a note under section 42 
of this title.


                    Effective Date of 1989 Amendment

    Section 603 of title VI of Pub. L. 101-194 provided that: ``The 
amendments made by this title [amending this section, sections 31-1 and 
441i of Title 2, The Congress, and title V of the Ethics in Government 
Act of 1978, Pub. L. 95-521, set out in the Appendix to Title 5, 
Government Organization and Employees] shall take effect on January 1, 
1991. Such amendments shall cease to be effective if the provisions of 
section 703 [5 U.S.C. 5318 note] are subsequently repealed, in which 
case the laws in effect before such amendments shall be deemed to be 
reenacted.''


                    Effective Date of 1988 Amendment

    Amendment by title I 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.


                    Effective Date of 1986 Amendment

    Amendment by section 201(c), (d)(14) of Pub. L. 99-514 applicable to 
property placed in service after Dec. 31, 1986, in taxable years ending 
after such date, with exceptions, see sections 203 and 204 of Pub. L. 
99-514, set out as a note under section 168 of this title.
    Amendment by section 201(c), (d)(14) of Pub. L. 99-514 not 
applicable to any property placed in service before Jan. 1, 1994, if 
such property placed in service as part of specified rehabilitations, 
and not applicable to certain additional rehabilitations, see section 
251(d)(2), (3) of Pub. L. 99-514, set out as a note under section 46 of 
this title.
    Amendment by section 671(b)(3) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, see section 675 of Pub. L. 
99-514, set out as an Effective Date note under section 860A of this 
title.
    Amendment by section 673 of Pub. L. 99-514 effective Jan. 1, 1992, 
but not applicable to any entity in existence on Dec. 31, 1991, except 
with respect to any entity as of the first day after Dec. 31, 1991, on 
which there is a substantial transfer of cash or other property to such 
entity, and for purposes of applying section 860F(d) of this title, 
applicable to taxable years beginning after Dec. 31, 1986, see section 
675(c) of Pub. L. 99-514, set out as an Effective Date note under 
section 860A of this title.
    Section 1166(b) of Pub. L. 99-514 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to years 
beginning after December 31, 1985.''
    Amendment by sections 1802(a)(9)(C), 1810(l)(1)-(4), 1842(d) 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.
    Section 1810(l)(5)(B) of Pub. L. 99-514 provided that: ``The 
amendments made by this paragraph [amending this section] shall apply to 
periods after the date of the enactment of this Act [Oct. 22, 1986].''


                    Effective Date of 1984 Amendments

    Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section 9(v) 
of Pub. L. 98-443, set out as a note under section 5314 of Title 5, 
Government Organization and Employees.
    Amendment by section 31(e) of Pub. L. 98-369 effective, except as 
otherwise provided in section 31(g) of Pub. L. 98-369, as to property 
placed in service by the taxpayer after May 23, 1983, in taxable years 
ending after such date and to property placed in service by the taxpayer 
on or before May 23, 1983, if the lease to the tax-exempt entity is 
entered into after May 23, 1983, except that in the case of a service 
contract or other arrangement described in section 7701(e) of this title 
with respect to which no party is a tax-exempt entity, section 7701(e) 
shall not apply to (A) such contract or other arrangement if such 
contract or other arrangement was entered into before Nov. 5, 1983, or 
(B) any renewal or other extension of such contract or other arrangement 
pursuant to an option contained in such contract or other arrangement on 
Nov. 5, 1983, see section 31(g)(1), (13) of Pub. L. 98-369, set out as a 
note under section 168 of this title.
    Amendment by section 43(a)(1) of Pub. L. 98-369 applicable to 
taxable years ending after July 18, 1984, see section 44 of Pub. L. 98-
369, set out as an Effective Date note under section 1271 of this title.
    Amendment by section 53(c) of Pub. L. 98-369 effective July 18, 
1984, except as otherwise provided, see section 53(e)(3) of Pub. L. 98-
369, as amended, set out as an Effective Date note under section 1059 of 
this title.
    Amendment by section 75(c) of Pub. L. 98-369 applicable to 
distributions, sales, and exchanges made after Mar. 31, 1984, in taxable 
years ending after such date, see section 75(e) of Pub. L. 98-369, set 
out as an Effective Date note under section 386 of this title.
    Section 138(b) of Pub. L. 98-369, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) In general.--The amendment made by subsection (a) [amending 
this section] shall apply to taxable years beginning after December 31, 
1984.
    ``(2) Transitional rule for applying substantial presence test.--
        ``(A) If an alien individual was not a resident of the United 
    States as of the close of calendar year 1984, the determination of 
    whether such individual meets the substantial presence test of 
    section 7701(b)(3) of the Internal Revenue Code of 1986 [formerly 
    I.R.C. 1954] (as added by this section) shall be made by only taking 
    into account presence after 1984.
        ``(B) If an alien individual was a resident of the United States 
    as of the close of calendar year 1984, but was not a resident of the 
    United States as of the close of calendar year 1983, the 
    determination of whether such individual meets such substantial 
    presence test shall be made by only taking into account presence in 
    the United States after 1983.
    ``(3) Transitional rule for applying lawful residence test.--In the 
case of any individual who--
        ``(A) was a lawful permanent resident of the United States 
    (within the meaning of section 7701(b)(5) of the Internal Revenue 
    Code of 1986, as added by this section) throughout calendar year 
    1984, or
        ``(B) was present in the United States at any time during 1984 
    while such individual was a lawful permanent resident of the United 
    States (within the meaning of such section 7701(b)(5)),
for purposes of section 7701(b)(2)(A) of such Code (as so added), such 
individual shall be treated as a resident of the United States during 
1984.''
    Amendment by section 412(b)(11) of Pub. L. 98-369 applicable with 
respect to taxable years beginning after Dec. 31, 1984, see section 
414(a)(1) of Pub. L. 98-369, set out as a note under section 6654 of 
this title.
    Amendment by section 422(d)(3) of Pub. L. 98-369 applicable with 
respect to divorce or separation instruments executed after Dec. 31, 
1984, or executed before Jan. 1, 1985, but modified on or after Jan. 1, 
1985, with express provision for application of amendment to 
modification, see section 422(e)(1), (2) of Pub. L. 98-369, set out as a 
note under section 71 of this title.
    Amendment by section 474(r)(29)(K) of Pub. L. 98-369 not applicable 
with respect to obligations issued before Jan. 1, 1984, see section 
475(b) of Pub. L. 98-369, set out as a note under section 33 of this 
title.
    Amendment by section 491(d)(53) of Pub. L. 98-369 applicable to 
obligations issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 
98-369, set out as a note under section 62 of this title.
    Section 526(c)(2) of Pub. L. 98-369 provided that: ``The amendment 
made by this subsection [amending this section] shall take effect on 
April 1, 1984.''


                    Effective Date of 1983 Amendments

    Amendment by section 104(d)(1) of Pub. L. 98-67 applicable with 
respect to payments made after Dec. 31, 1983, see section 110(a) of Pub. 
L. 98-67, set out as a note under section 31 of this title.
    For effective date of amendment by Pub. L. 97-473, see section 204 
of Pub. L. 97-473, set out as an Effective Date note under section 7871 
of this title.
    Amendment by Pub. L. 97-448 effective as if included in the 
provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. 
L. 97-248, to which such amendment relates, see section 311(d) of Pub. 
L. 97-448, set out as a note under section 31 of this title.


                    Effective Date of 1982 Amendment

    Amendment by section 201(d)(10) of Pub. L. 97-248 applicable to 
taxable years beginning after Dec. 31, 1982, see section 201(e)(1) of 
Pub. L. 97-248, set out as a note under section 5 of this title.
    Section 336(b) of Pub. L. 97-248 provided that: ``The amendment made 
by subsection (a) [amending this section] shall take effect on the day 
after the date of the enactment of this Act [Sept. 3, 1982].''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable to estimated tax for taxable 
years beginning after Dec. 31, 1980, see section 725(d) of Pub. L. 97-
34, set out as a note under section 871 of this title.


                    Effective Date of 1978 Amendment

    Amendment by section 157(k)(2) of Pub. L. 95-600 applicable to 
taxable years beginning after Dec. 31, 1974, see section 157(k)(3) of 
Pub. L. 95-600, set out as a note under section 6058 of this title.
    Amendment by section 701(cc)(2) of Pub. L. 95-600 applicable to 
documents prepared after Dec. 31, 1976, see section 701(cc)(3) of Pub. 
L. 95-600, set out as a note under section 6695 of this title.


                    Effective Date of 1976 Amendment

    Section 1203(j) of Pub. L. 94-455 provided that: ``The amendments 
made by this section [enacting sections 6060, 6107, 6694, 6695, 6696, 
7407, and 7427 of this title, renumbering former sections 7407 and 7427 
as 7408 and 7428 of this title, respectively, and amending this section 
and sections 6109, 6503, 6504, and 6511 of this title] shall apply to 
documents prepared after December 31, 1976.''
    Amendment by section 1906(a)(57), (b)(13)(A), (c)(3) of Pub. L. 94-
455 effective on first day of first month which begins more than ninety 
days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455, set 
out as a note under section 6013 of this title.


                    Effective Date of 1972 Amendment

    Amendment by Pub. L. 92-606 applicable with respect to taxable years 
beginning after Dec. 31, 1972, see section 2 of Pub. L. 92-606, set out 
in part as an Effective Date note under section 931 of this title.


                    Effective Date of 1969 Amendment

    Amendment by section 432(c), (d) of Pub. L. 91-172 effective for 
taxable years beginning after July 11, 1969, see section 432(e) of Pub. 
L. 91-172, set out as a note under section 593 of this title.
    Amendment by section 960(j) of Pub. L. 91-172 effective Dec. 30, 
1969, see section 962(a) of Pub. L. 91-172, set out as a note under 
section 7441 of this title.


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-364 applicable with respect to taxable years 
beginning after Dec. 31, 1967, except as provided by section 104 of Pub. 
L. 90-364, see section 103(f) of Pub. L. 90-364, set out as a note under 
section 243 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 103(n)(1) of Pub. L. 89-809, 
set out as a note under section 871 of this title.
    Amendment by Pub. L. 89-368 applicable with respect to taxable years 
beginning after Dec. 31, 1966, see section 102(d) of Pub. L. 89-368, set 
out as a note under section 6654 of this title.


                    Effective Date of 1964 Amendment

    Amendment by section 204(a)(3) of Pub. L. 88-272 applicable to 
group-term life insurance provided after Dec. 31, 1963, in taxable years 
ending after such date, see section 204(d) of Pub. L. 88-272, set out as 
an Effective Date note under section 79 of this title.
    Amendment by section 234(b)(3) of Pub. L. 88-272 applicable to 
taxable years beginning after Dec. 31, 1963, see section 234(c) of Pub. 
L. 88-272, set out as a note under section 1503 of this title.


                    Effective Date of 1962 Amendments

    Section 5(b) of Pub. L. 87-870 provided that: ``The amendment made 
by subsection (a) of this section [amending this section] shall apply 
with respect to taxable years beginning after the date of the enactment 
of the Revenue Act of 1962 [Oct. 16, 1962].''
    Section 6(g)(3) of Pub. L. 87-834 provided that: ``The amendment 
made by subsection (c) [amending this section] shall apply to taxable 
years beginning after the date of the enactment of this Act [Oct. 16, 
1962].''


                    Effective Date of 1960 Amendments

    Amendment by Pub. L. 86-778 effective Sept. 13, 1960, see section 
103(v)(1) of Pub. L. 86-778, set out as an Effective Date of 1960 
Amendment note under section 402 of Title 42, The Public Health and 
Welfare.
    Amendment by Pub. L. 86-624 effective August 21, 1959, see section 
18(k) of Pub. L. 86-624, set out as a note under section 3121 of this 
title.


                    Effective Date of 1959 Amendment

    Amendment by Pub. L. 86-70 effective Jan. 3, 1959, see section 22(i) 
of Pub. L. 86-70, set out as a note under section 3121 of this title.


                            Savings Provision

    For provisions that nothing in amendment by section 11812(b)(13) of 
Pub. L. 101-508 be construed to affect treatment of certain transactions 
occurring, property acquired, or items of income, loss, deduction, or 
credit taken into account prior to Nov. 5, 1990, for purposes of 
determining liability for tax for periods ending after Nov. 5, 1990, see 
section 11821(b) of Pub. L. 101-508, set out as a note under section 29 
of this title.

                          Transfer of Functions

    Coast Guard transferred to Department of Transportation and all 
functions, powers, and duties, relating to Coast Guard, of Secretary of 
the Treasury and of other offices and officers of Department of the 
Treasury transferred to Secretary of Transportation by Pub. L. 89-670, 
Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. L. 
89-670, however, provided that notwithstanding such transfer of 
functions, Coast Guard shall operate as part of Navy in time of war or 
when President directs as provided in section 3 of Title 14, Coast 
Guard. See section 108 of Title 49, Transportation.


           Plan Amendments Not Required Until January 1, 1998

    For provisions directing that if any amendments made by subtitle D 
[Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to 
any plan or annuity contract, such amendment shall not be required to be 
made before the first day of the first plan year beginning on or after 
Jan. 1, 1998, see section 1465 of Pub. L. 104-188, set out as a note 
under section 401 of this title.


           Plan Amendments Not Required Until January 1, 1994

    For provisions directing that if any amendments made by subtitle B 
[Secs. 521-523] of title V of Pub. L. 102-318 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, 1994, see section 523 
of Pub. L. 102-318, set out as a note under section 401 of this title.


           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.


 Authors or Artists Performing Services Under Contract With Corporation

    Pub. L. 96-605, title IV, Sec. 402, Dec. 28, 1980, 94 Stat. 3532, as 
amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, 
provided that:
    ``(a) In General.--An author or artist performing services under 
contract with a corporation shall be considered as an employee of the 
corporation for the purpose of applying the provisions specified in 
section 7701(a)(20) of the Internal Revenue Code of 1986 [formerly 
I.R.C. 1954], if, on December 31, 1977, such author or artist was a 
participant in one or more of the pension, profit-sharing or annuity 
plans of such corporation which are described in subsection (b)(2).
    ``(b) Definitions.--For purposes of this section--
        ``(1) Contract.--The term `contract' means a contract which 
    during its term--
            ``(A) requires such author or artist to give the corporation 
        first reading or first refusal on writings or drawings of 
        specified types, and prohibits him from offering any such 
        writing or drawing to any other publication unless it has been 
        offered to and rejected by the corporation; or
            ``(B) requires such author or artist to use his best efforts 
        to produce work of specified types for the corporation.
        ``(2) Corporation.--The term `corporation' means a corporation 
    which for at least 15 years prior to January 1, 1978, had in effect 
    one or more pension, profit-sharing and annuity plans, each of 
    which--
            ``(A) had contained from its inception a definition of the 
        term `employee' that included the category of `authors and 
        artists under contract', and
            ``(B) had been determined by the Secretary of the Treasury 
        (taking into account the definition described in subparagraph 
        (A)) to be a qualified plan within part I of subchapter D of 
        chapter 1 of subtitle A of the Internal Revenue Code of 1986 
        [section 401 et seq. of this title] for all of such years.
    ``(c) Effective Date.--The provisions of this section shall apply to 
taxable years ending after December 31, 1980.''

                  Section Referred to in Other Sections

    This section is referred to in sections 56, 118, 168, 246A, 269B, 
312, 357, 362, 401, 408, 408A, 542, 593, 597, 679, 682, 853, 860F, 865, 
877, 881, 884, 904, 958, 988, 993, 1246, 1247, 1249, 1313, 1341, 3405, 
4975, 6038, 6038A, 6039F, 6046, 6059, 6694, 7213 of this title; title 4 
section 114; title 5 section 8351; title 12 sections 1464, 1467a, 1823; 
title 22 sections 2314, 2755; title 29 section 1108; title 42 section 
1320a-7e.
