26 U.S. Code § 1363 - Effect of election on corporation
Except as otherwise provided in this subchapter, an S corporation shall not be subject to the taxes imposed by this chapter.
Except as provided in paragraph (2), any election affecting the computation of items derived from an S corporation shall be made by the corporation.
Any increase in the tax imposed by this chapter by reason of this subsection shall be payable in 4 equal installments.
The first installment under subparagraph (A) shall be paid on or before the due date (determined without regard to extensions) for the return of the tax imposed by this chapter for the last taxable year for which the corporation was a C corporation and the 3 succeeding installments shall be paid on or before the due date (as so determined) for the corporation’s return for the 3 succeeding taxable years.
The term “inventory assets” means stock in trade of the corporation, or other property of a kind which would properly be included in the inventory of the corporation if on hand at the close of the taxable year.
2005—Subsec. (d)(5). Pub. L. 109–135 added par. (5).
1988—Subsec. (d). Pub. L. 100–647, § 1006(f)(7), struck out subsec. (d) which related to distributions of appreciated property.
Subsec. (d)(4)(D). Pub. L. 100–647, § 2004(n), added subpar. (D).
Subsec. (e). Pub. L. 100–647, § 1006(f)(7), struck out subsec. (e) which provided that subsec. (d) not apply to reorganizations, etc.
1987—Subsec. (d). Pub. L. 100–203 added subsec. (d) relating to recapture of LIFO benefits.
1986—Subsec. (a). Pub. L. 99–514, § 701(e)(4)(J), struck out “and in section 58(d)” after “this subchapter”.
Subsec. (c)(2). Pub. L. 99–514, § 511(d)(2)(C), redesignated subpars. (B) and (C) as (A) and (B), respectively, and struck out former subpar. (A) which read as follows: “section 163(d) (relating to limitation on interest on investment indebtedness),”.
Subsec. (e). Pub. L. 99–514, § 632(b), amended subsec. (e) generally, substituting “reorganizations, etc.” for “complete liquidations and reorganizations”, in heading and in text struck out reference to property in complete liquidation of the corporation.
1984—Subsec. (b)(4). Pub. L. 98–369, § 721(p), added par. (4).
Subsec. (c)(2). Pub. L. 98–369, § 721(b)(1), redesignated subpars. (B) to (D) as (A) to (C), respectively, and struck out subpar. (A) which provided “subsection (b)(5) or (d)(4) of section 108 (relating to income from discharge of indebtedness),”.
Subsec. (d). Pub. L. 98–369, § 721(a)(2), substituted “Except as provided in subsection (e), if” for “If”.
Subsec. (e). Pub. L. 98–369, § 721(a)(1), added subsec. (e).
Amendment by section 1006(f)(7) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Amendment by section 2004(n) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.
Amendment by section 632(b) of Pub. L. 99–514 applicable to any distribution in complete liquidation, and any sale or exchange, made by a corporation after July 31, 1986, unless such corporation is completely liquidated before Jan. 1, 1987, any transaction described in section 338 of this title for which the acquisition date occurs after Dec. 31, 1986, and any distribution, not in complete liquidation, made after Dec. 31, 1986, with exceptions and special and transitional rules, see section 633 of Pub. L. 99–514, set out as an Effective Date note under section 336 of this title.
Amendment by section 701(e)(4)(J) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 701(f) of Pub. L. 99–514, set out as an Effective Date note under section 55 of this title.
Amendment by Pub. L. 98–369 effective as if included in the Subchapter S Revision Act of 1982, Pub. L. 97–354, see section 721(y)(1) of Pub. L. 98–369, set out as a note under section 1361 of this title.
For applicability of amendment by section 701(e)(4)(J) of Pub. L. 99–514 notwithstanding any treaty obligation of the United States in effect on Oct. 22, 1986, with provision that for such purposes any amendment by title I of Pub. L. 100–647 be treated as if it had been included in the provision of Pub. L. 99–514 to which such amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100–647, set out as a note under section 861 of this title.
Written determinations for this section
These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.
Note that the IRS often titles documents in a very plain-vanilla, duplicative way. Do not assume that identically-titled documents are the same, or that a later document supersedes another with the same title. That is unlikely to be the case.
Release dates appear exactly as we get them from the IRS. Some are clearly wrong, but we have made no attempt to correct them, as we have no way guess correctly in all cases, and do not wish to add to the confusion.
We truncate results at 20000 items. After that, you're on your own.
- Active Business : 2011-01-14
- Certain Trusts Permitted as Shareholders : 2011-01-14
- Non Pro Rata Distributions, etc. : 2011-01-14
- Net Unrealized Built-in Gain : 2011-01-14
- Stock Owned by Husband and Wife : 2011-01-14
- Elections of an S Corporation : 2011-01-14
- Assets for Control of Transferee Type D : 2011-01-14
- Recapture of LIFO Benefits : 2010-03-12
- Grantor Trusts : 2008-01-11
- Recapture of LIFO Benefits : 2008-01-11
- Change in Identity, etc. Type F : 2008-01-11
- Assets for Control of Transferee Type D : 2008-01-11
- Recapitalization Type E : 2008-01-11
- Tax Imposed On Certain Built-In Gains for Corporations Electing S Status After 12 31 86 : 2008-01-11
- Election by Small Business Corporation : 2007-08-31
- Pass-Thru of Items to Shareholders : 2007-08-31
- Elections of an S Corporation : 2007-08-31
- Effect of Election on Corporation : 2007-08-31
- Assets for Control of Transferee Type D : 2007-08-31
- Recapture of LIFO Benefits : 2004-07-23
- Assets for Control of Transferee Type D : 2004-07-23
- Recapture of LIFO Benefits : 2000-12-15
- Recapture of LIFO Benefits : 1999-06-04
LII has no control over and does not endorse any external Internet site that contains links to or references LII.