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Federal Tax

 

  

Federal Individual Income Tax: With Commentary, 2010-2011 Edition

Table of Contents


TECHNICAL NOTE ........................................ xv
Outline of the Internal Revenue Code ................................ 1
Sec. 1. Tax imposed ........................................ 4
TERMINATION DATES OF 2001 AND 2003 AMENDMENTS ................. 12
Sec. 2. Definitions and special rules ............................... 13
Sec. 3. Tax tables for individuals .................................. 14
Sec. 11. Tax imposed ........................................ 15
Sec. 21. Expenses for household and dependent care services for gainful employment ...... 15
Sec. 22. Credit for the elderly and the permanently and totally disabled ............. 24
Sec. 23. Adoption expenses .................................... 26
Sec. 24. Child tax credit ...................................... 28
Sec. 25A. Hope and Lifetime Learning credits ........................... 30
Sec. 25B. Elective deferrals and IRA contributions by certain individuals ............ 39
Sec. 25C. Nonbusiness energy property ............................. 40
Sec. 25D. Residential energy efficient property ......................... 42
Sec. 26. Limitation based on tax liability; definition of tax liability ................ 44
Sec. 30. Certain plug-in electric vehicles .............................. 44
Sec. 30B. Alternative motor vehicle credit ............................. 46
Sec. 30D. New qualified plug-in electric drive motor vehicles .................. 55
Sec. 31. Tax withheld on wages .................................. 57
Sec. 32. Earned income ...................................... 57
Sec. 35. Health insurance costs of eligible individuals ....................... 62
Sec. 36. First-time homebuyer credit ................................ 68
Sec. 36A. Making work pay credit ................................ 71
Sec. 36B. Refundable credit for coverage under a qualified health plan .............. 72
Sec. 38. General business credit .................................. 77
Sec. 39. Carryback and carryforward of unused credits ..................... 79
Sec. 41. Credit for increasing research activities .......................... 80
Sec. 42. Low-income housing credit ................................ 90
Sec. 45R. Employee health insurance expenses of small employers ................ 98
Sec. 46. Amount of credit ..................................... 102
Sec. 47. Rehabilitation credit .................................. 102
Sec. 48. Energy credit ....................................... 104
Sec. 50. Other special rules ................................... 104
Sec. 51. Amount of credit ..................................... 106
Sec. 53. Credit for prior year minimum tax liability ....................... 106
Sec. 55. Alternative minimum tax imposed ............................ 107
Sec. 56. Adjustments in computing alternative minimum taxable income ........... 109
Sec. 57. Items of tax preference .................................. 116
Sec. 58. Denial of certain losses ................................. 118
Sec. 59. Other definitions and special rules ............................ 119
Sec. 61. Gross income defined ................................. 120
Sec. 62. Adjusted gross income defined ............................. 136
Sec. 63. Taxable income defined ................................ 142
Sec. 64. Ordinary income defined ................................ 145
Sec. 65. Ordinary loss defined .................................. 145
Sec. 66. Treatment of community income ............................ 146
Sec. 67. 2-percent floor on miscellaneous itemized deductions ................. 146
Sec. 68. Overall limitation on itemized deductions ........................ 150
Sec. 71. Alimony and separate maintenance payments ...................... 151
Sec. 72. Annuities; certain proceeds of endowment and life insurance contracts ......... 160
Sec. 73. Services of child .................................... 215
Sec. 74. Prizes and awards .................................... 215
Sec. 79. Group-term life insurance purchased for employees .................. 219
Sec. 82. Reimbursement for expenses of moving ......................... 219
Sec. 83. Property transferred in connection with performance of services ........... 219
Sec. 84. Transfer of appreciated property to political organization ................ 233
Sec. 85. Unemployment compensation ............................. 233
Sec. 86. Social security and tier 1 railroad retirement benefits ................. 233
Sec. 101. Certain death benefits ................................. 236
Sec. 102. Gifts and inheritances ................................. 246
Sec. 103. Interest on State and local bonds ........................... 248
Sec. 104. Compensation for injuries or sickness ........................ 248
Sec. 105. Amounts received under accident and health plans ................... 250
Sec. 106. Contributions by employer to accident and health plans ................ 253
Sec. 107. Rental value of parsonages ............................... 254
Sec. 108. Income from discharge of indebtedness ........................ 255
Sec. 109. Improvements by lessee on lessor's property ...................... 264
Sec. 111. Recovery of tax benefit items .............................. 264
Sec. 112. Certain combat zone compensation of members of the Armed Forces ......... 264
Sec. 117. Qualified scholarships ................................. 264
Sec. 118. Contributions to the capital of a corporation ..................... 270
Sec. 119. Meals or lodging furnished for the convenience of the employer ........... 271
Sec. 121. Exclusion of gain from sale of principal residence ................... 276
Sec. 123. Amounts received under insurance contracts for certain living expenses ....... 291
Sec. 125. Cafeteria plans .................................... 291
Sec. 127. Educational assistance programs ........................... 295
Sec. 129. Dependent care assistance programs ......................... 297
Sec. 130. Certain personal injury liability assignments ...................... 300
Sec. 131. Certain foster care payments ............................. 301
Sec. 132. Certain fringe benefits ................................. 302
Sec. 134. Certain military benefits ................................ 339
Sec. 135. Income from United States savings bonds used to pay high. ed, tuition and fees ... 339
Sec. 137. Adoption assistance programs ............................. 341
Sec. 139. Disaster relief payments ................................. 342
Sec. 139B. Benefits provided to volunteer firefighters and emergency medical providers .... 343
Sec. 141. Private activity bond; qualified bond .......................... 343
Sec. 142. Exempt facility bond ................................. 344
Sec. 143. Mortgage revenue bonds: qualified mort. bond and qualified veterans' mort. bond . 345
Sec. 144. Qualified small issue bnd; qualified student loan bnd; qualified redevelopment bnd . 345
Sec. 145. Qualified 501(c)(3) bond ................................ 346
Sec. 146. Volume cap ...................................... 346
Sec. 148. Arbitrage ....................................... 346
Sec. 149. Bonds must be registered to be tax exempt; other requirements ........... 347
Sec. 151. Allowance of deductions for personal exemptions.................. 347
Sec. 152. Dependent defined .................................. 350
Sec. 161. Allowance of deductions ............................... 355
Sec. 162. Trade or business expenses ............................... 356
Sec. 163. Interest ........................................ 384
Sec. 164. Taxes ......................................... 412
Sec. 165. Losses ......................................... 418
Sec. 166. Bad debts ....................................... 431
Sec. 167. Depreciation ...................................... 439
Sec. 168. Accelerated cost recovery system ........................... 445
Sec. 169. Amortization of pollution control facilities ....................... 462
Sec. 170. Charitable, etc., contributions and gifts ........................ 462
Sec. 171. Amortizable bond premium .............................. 509
Sec. 172. Net operating loss deduction ............................. 511
Sec. 173. Circulation expenditures ............................... 517
Sec. 174. Research and experimental expenditures ........................ 517
Sec. 175. Soil and water conservation expenditures ....................... 519
Sec. 179. Election to expense certain depreciable business assets ............... 519
Sec. 179C. Election to expense certain refineries ......................... 521
Sec. 179D. Energy efficient commercial buildings deduction .................. 521
Sec. 180. Expenditures by farmers for fertilizer, etc. ...................... 522
Sec. 183. Activities not engaged in for profit ........................... 522
Sec. 186. Recoveries of damages for antitrust violations, etc. .................. 533
Sec. 190. Expenditures to remove barriers to the handicapped and elderly ............ 538
Sec. 193. Tertiary injectants .................................... 538
Sec. 194. Treatment of reforestation expenditures ........................ 538
Sec. 195. Start-up expenditures .................................. 539
Sec. 197. Amortization of goodwill and certain other intangibles ................ 541
Sec. 198. Expensing of environmental remediation costs .................... 551
Sec. 198A. Expensing of qualified disaster expenses ...................... 551
Sec. 211. Allowance of deductions ............................... 552
Sec. 212. Expenses for production of income ........................... 552
Sec. 213. Medical, dental, etc., expenses ............................ 555
Sec. 215. Alimony, etc., payments ................................ 567
Sec. 216. Deduction of taxes, interest, and depreciation by coop. hous. corp. tenant-shh .... 568
Sec. 217. Moving expenses .................................... 568
Sec. 219. Retirement savings .................................. 586
Sec. 220. Archer MSAs ...................................... 591
Sec. 221. Interest on education loans .............................. 599
Sec. 222. Qualified tuition and related expenses ........................ 606
Sec. 223. Health savings accounts ................................ 607
Sec. 243. Dividends received by corporations .......................... 614
Sec. 248. Organizational expenditures .............................. 614
Sec. 261. General rule for disallowance of deductions ..................... 614
Sec. 262. Personal, living, and family expenses ......................... 614
Sec. 263. Capital expenditures .................................. 616
Sec. 263A. Capitalization and inclusion in inventory costs of certain expenses ........ 639
Sec. 264. Certain amounts paid in connection with insurance contracts ............ 649
Sec. 265. Expenses and interest relating to tax-exempt income ................. 651
Sec. 266. Carrying charges ................................... 653
Sec. 267. Losses, expenses, and interest with respect to trans. between related taxpayers ... 653
Sec. 269. Acquisitions made to evade or avoid income tax .................... 657
Sec. 269A. Personal service corporations formed or availed of to avoid or evade income tax .. 657
Sec. 274. Disallowance of certain entertainment, etc., expenses ................ 657
Sec. 275. Certain taxes ..................................... 698
Sec. 276. Certain indirect contributions to political parties .................... 698
Sec. 280A. Disallowance of exp. with business use of home, rental of vacation homes, etc. .. 699
Sec. 280B. Demolition of structures ............................... 704
Sec. 280E. Expenditures in connection with the illegal sale of drugs .............. 704
Sec. 280F. Limitation on dep. for automobiles; limit. where prop. used for personal purposes 705
Sec. 280G. Golden parachute payments .............................. 710
Sec. 291. Special rules relating to corporate preference items ................. 712
Sec. 301. Distributions of property ............................... 713
Sec. 302. Distributions in redemption of stock ......................... 714
Sec. 312. Effect on earnings and profits ............................. 714
Sec. 316. Dividend defined ................................... 714
Sec. 318. Constructive ownership of stock ........................... 714
Sec. 331. Gain or loss to shareholders in corporate liquidations ................ 716
Sec. 338. Certain stock purchases treated as asset acquisitions .................. 716
Sec. 351. Transfer to corporation controlled by transferor ................... 718
Sec. 362. Basis to corporations ................................. 718
Sec. 401. Qualified pension, profit-sharing, and stock bonus plans ............... 718
Sec. 402. Taxability of beneficiary of employees' trust ...................... 721
Sec. 404. Ded. for cont. to ees' trust or annuity plan and under a deferred-payment plan .... 721
Sec. 408. Individual retirement accounts ............................ 721
Sec. 408A. Roth IRAs ...................................... 723
Sec. 409A. Inclusion in income of deferred comp. under nonqualified plans .......... 725
Sec. 414. Definitions and special rules ............................. 733
Sec. 415. Limitations on benefits and contribution under qualified plans ............ 734
Sec. 416. Special rules for top-heavy plans ............................ 736
Sec. 421. General rules ..................................... 737
Sec. 422. Incentive stock options................................ 738
Sec. 441. Period for computation of taxable income ...................... 739
Sec. 443. Returns for a period of less than 12 months ...................... 740
Sec. 446. General rule for methods of accounting ........................ 741
Sec. 448. Limitation on use of cash method of accounting .................... 745
Sec. 451. General rule for taxable year of inclusion ....................... 750
Sec. 453. Installment method .................................. 754
Sec. 453A. Special rules for nondealers ............................. 782
Sec. 453B. Gain or loss disposition of installment obligations .................. 784
Sec. 454. Obligations issued at discount ............................. 784
Sec. 455. Prepaid subscription income ............................. 786
Sec. 461. General rule for taxable year of deduction ...................... 787
Sec. 465. Deductions limited to amount at risk .......................... 798
Sec. 467. Certain payments for the use of property or services .................. 803
Sec. 469. Passive activity losses and credits limited....................... 805
Sec. 471. General rule for inventories .............................. 825
Sec. 472. Last-in, first-out inventories .............................. 834
Sec. 482. Allocation of income and deductions among taxpayers ................ 835
Sec. 483. Interest on certain deferred payments ......................... 835
Sec. 501. Exemption from tax on corporations, certain trusts, etc. ............... 838
Sec. 509. Private foundation defined .............................. 846
Sec. 529. Qualified tuition programs .............................. 848
Sec. 530. Coverdell education savings accounts ........................ 851
Sec. 542. Definition of personal holding company ....................... 855
Sec. 611. Allowance of deduction for depletion ......................... 855
Sec. 612. Basis for cost depletion ................................. 855
Sec. 613. Percentage depletion ................................. 855
Sec. 613A. Limitations on percentage depletion in case of oil and gas wells........... 857
Sec. 616. Development expenditures .............................. 857
Sec. 617. Deduction and recapture of certain mining exploration expenditures ......... 858
Sec. 631. Gain or loss in the case of timber, coal, or domestic iron ore ............. 858
Sec. 641. Imposition of tax ................................... 858
Sec. 642. Special rules for credits and deductions ........................ 859
Sec. 651. Deduction for trusts distributing current income only ................ 859
Sec. 652. Inclusion in gross income of beneficiaries of trusts distributing current income only 860
Sec. 661. Deduction for estates and trusts accumulating income or distributing corpus .... 862
Sec. 662. [I]ncome of bens. of estates and trusts accumulating income or distributing corpus .. 862
Sec. 671. Trust [items] attributable to grantors and others as substantial owners ......... 864
Sec. 672. Definitions and rules ................................. 864
Sec. 674. Power to control beneficial enjoyment ......................... 865
Sec. 678. Person other than grantor treated as substantial owner ................. 869
Sec. 682. Income of an estate or trust in case of divorce, etc. .................. 869
Sec. 691. Recipients of income in respect of decedents ..................... 870
Sec. 701. Partners, not partnership, subject to tax ........................ 874
Sec. 702. Income and credits of partner .............................. 875
Sec. 703. Partnership computations ................................ 875
Sec. 704. Partner's distributive share .............................. 876
Sec. 721. Nonrecognition of gain or loss on contribution .................... 876
Sec. 911. Citizens or residents of the United States living abroad ................ 876
Sec. 1001. Determination of amount of and recognition of gain or loss ............. 877
Sec. 1002. Recognition of gain or loss (repealed) ........................ 885
Sec. 1011. Adjusted basis for determining gain or loss ...................... 886
Sec. 1012. Basis of property - cost ............................... 888
Sec. 1014. Basis of property acquired from a decedent ...................... 896
Sec. 1015. Basis of property acquired by gifts and transfers in trust .............. 901
Sec. 1016. Adjustments to basis ................................. 904
Sec. 1017. Discharge of indebtedness............................... 906
Sec. 1019. Property on which lessee has made improvements ................. 908
Sec. 1022. Treatment of property acquired from a decedent dying after December 31, 2009 .. 908
Sec. 1031. Exchange of property held for productive use or investment ............ 912
Sec. 1032. Exchange of stock for property ........................... 935
Sec. 1033. Involuntary conversions ................................ 935
Sec. 1038. Certain reacquisitions of real property ........................ 940
Sec. 1041. Transfers of property between spouses or incident to divorce ............ 941
Sec. 1045. Rollover of gain from qualified small business stock ................. 944
Sec. 1060. Special allocation rules for certain asset acquisitions ................. 944
Sec. 1091. Loss from wash sales of stock or securities ...................... 945
Sec. 1092. Straddles ........................................ 948
Sec. 1201. Alternative tax for corporations ............................ 952
Sec. 1202. Partial exclusion for gain from certain small business stock ............ 952
Sec. 1211. Limitation on capital losses ............................. 953
Sec. 1212. Capital loss carrybacks and carryovers ....................... 953
Sec. 1221. Capital asset defined ................................. 954
Sec. 1222. Other terms relating to capital gains and losses .................... 956
Sec. 1223. Holding period of property ............................. 957
Sec. 1231. Property used in the trade or business and involuntary conversions ......... 960
Sec. 1233. Gains and losses from short sales .......................... 962
Sec. 1234. Options to buy or sell ................................ 965
Sec. 1234A. Gains or losses from certain terminations ...................... 966
Sec. 1234B. Gains or losses from securities futures contracts .................. 966
Sec. 1235. Sale or exchange of patents ............................. 967
Sec. 1236. Dealers in securities .................................. 967
Sec. 1237. Real property subdivided for sale ........................... 969
Sec. 1239. Gain from sale of depreciable property between certain related taxpayers ..... 970
Sec. 1241. Cancellation of lease or distributor's agreement ................... 971
Sec. 1242. Losses on small business investment company stock ................. 971
Sec. 1243. Loss of small business investment company ..................... 971
Sec. 1244. Losses on small business stock ........................... 972
Sec. 1245. Gain from dispositions of certain depreciable property ................ 973
Sec. 1250. Gain from dispositions of certain depreciable realty ................. 978
Sec. 1252. Gain from disposition of farm land ......................... 980
Sec. 1253. Transfers of franchises, trademarks, and trade names ................. 980
Sec. 1254. Gain from disposition of oil, gas, geothermal, or other mineral properties ..... 981
Sec. 1256. Section 1256 contracts marked to market ....................... 982
Sec. 1258. Recharacterization of gain from certain financial transactions ........... 987
Sec. 1271. Treatment of amnts rec'd on retirement or sale or exchange of debt instruments ... 988
Sec. 1272. Current inclusion in income of original issue discount ............... 990
Sec. 1273. Determination of amount of original issue discount ................. 992
Sec. 1274. Determination of issue price in the case of debt instruments issued for property ... 993
Sec. 1274A. Special rules for trans. where stated principal amnt does not exceed $2,800,000 .. 996
Sec. 1275. Other definitions and special rules .......................... 998
Sec. 1276. Disposition gain representing accrued market discount treated as ordinary income . 999
Sec. 1277. Deferral of interest deduction allocable to accrued market discount ........ 1001
Sec. 1278. Definitions and special rules ............................. 1002
Sec. 1281. Current inclusion in income of discount on certain short-term obligations .... 1004
Sec. 1283. Definitions and special rules ............................. 1005
Sec. 1286. Tax treatment of stripped bonds .......................... 1006
Sec. 1288. Treatment of original issue discount on tax-exempt obligations ........... 1008
Sec. 1311. Correction of error................................. 1008
Sec. 1312. Circumstances of adjustment ............................ 1009
Sec. 1313. Definitions. ..................................... 1010
Sec. 1314. Amount and method of adjustment ......................... 1011
Sec. 1341. Computation of tax where taxpayer restores substantial amnt under claim of right 1012
Sec. 1361. S corporation defined ................................ 1018
Sec. 1363. Effect of election on corporation ........................... 1018
Sec. 1366. Pass-thru of items to shareholders ......................... 1018
Sec. 1402. Definitions ...................................... 1019
Sec. 1411. Imposition of tax ................................... 1021
Sec. 1504. Definitions ...................................... 1022
Sec. 2031. Definition of gross estate .............................. 1023
Sec. 2032. Alternate Valuation .................................. 1027
Sec. 2032A. Valuation of certain farm, etc., real property .................... 1027
Sec. 2512. Valuation of gifts ................................... 1028
Sec. 3401. Definitions ...................................... 1030
Sec. 3402. Income tax collected at source ............................ 1035
Sec. 4911. Tax on excess expenditures to influence legislation ................ 1038
Sec. 4974. Excise tax on certain accumulations in qualified retirement plans ......... 1040
Sec. 6001. Notice or regulations requiring records, statements, and special returns ...... 1040
Sec. 6011. General requirement of return, statement, or list ................... 1041
Sec. 6012. Persons required to make returns of income ..................... 1048
Sec. 6013. Joint returns of income tax by husband and wife .................. 1049
Sec. 6015. Relief from joint and several liability on joint return ................ 1052
Sec. 6041. Information at source ................................ 1055
Sec. 6041A. Returns regarding payments of remuneration for services and direct sales ... 1056
Sec. 6042. Returns regarding payments of dividends and corporate earnings and profits .... 1056
Sec. 6045. Returns of brokers ................................. 1056
Sec. 6050W. Returns relating to pmnts made [on] payment card and network transactions .. 1060
Sec. 6053. Reporting of tips ................................... 1062
Sec. 6061. Signing of returns and other documents ...................... 1064
Sec. 6071. Time for filing returns and other documents ..................... 1064
Sec. 6072. Time for filing income tax returns .......................... 1065
Sec. 6103. Confidentiality and disclosure of returns and return information ......... 1066
Sec. 6109. Identifying numbers ................................ 1066
Sec. 6110. Public inspection of written determinations .................... 1066
Sec. 6111. Disclosure of reportable transactions ........................ 1069
Sec. 6115. Disclosure related to quid pro quo contributions .................. 1070
Sec. 6151. Time and place for paying tax shown on returns................... 1070
Sec. 6201. Assessment authority ................................ 1070
Sec. 6203. Method of assessment ............................... 1071
Sec. 6211. Definition of a deficiency .............................. 1071
Sec. 6213. Restrictions applicable to deficiencies; petition to Tax Court ........... 1072
Sec. 6215. Assessment of deficiency found by Tax Court .................... 1074
Sec. 6401. Amounts treated as overpayments ......................... 1074
Sec. 6501. Limitations on assessment and collection ..................... 1076
Sec. 6511. Limitations on credit or refund ............................ 1078
Sec. 6601. Interest on underpayment, nonpayment, or extensions of time for payment, of tax 1080
Sec. 6611. Interest on overpayments .............................. 1082
Sec. 6651. Failure to file tax return or to pay tax ....................... 1085
Sec. 6654. Failure by individual to pay estimated income tax.................. 1086
Sec. 6662. Imposition of accuracy-related penalty on underpayments ............. 1090
Sec. 6662A. Imposition of accuracy-related penalty with respect to reportable transactions . 1096
Sec. 6663. Imposition of fraud penalty ............................. 1097
Sec. 6664. Definitions, special rules. .............................. 1098
Sec. 6694. Understatement of taxpayer's liability by tax return preparer ........... 1102
Sec. 6700. Promoting abusive tax shelters, etc. ........................ 1107
Sec. 6701. Penalties for aiding and abetting understatement of tax liability .......... 1108
Sec. 6702. Frivolous Tax Submissions ............................. 1109
Sec. 6707. Failure to furnish information regarding reportable transactions ........... 1110
Sec. 6707A. Penalty for failure to include reportable transaction information with return ... 1111
Sec. 7121. Closing agreements .................................. 1111
Sec. 7122. Compromises ..................................... 1113
Sec. 7201. Attempt to evade or defeat tax ........................... 1118
Sec. 7202. Willful failure to collect or pay over tax ...................... 1118
Sec. 7203. Willful failure to file return, supply information, or pay tax ............ 1119
Sec. 7206. Fraud and false statements ............................. 1119
Sec. 7217. Prohibition on executive branch influence over investigations ............ 1119
Sec. 7408. Actions to enjoin sp. conduct related to tax shelters and reportable transactions .. 1120
Sec. 7421. Prohibition of suits to restrain assessment or collection ............... 1120
Sec. 7422. Civil actions for refund ............................... 1120
Sec. 7430. Awarding of costs and certain fees .......................... 1122
Sec. 7454. Burden of proof in fraud, foundation manager, and transferee cases ........ 1128
Sec. 7463. Disputes involving $50,000 or less ......................... 1128
Sec. 7482. Courts of review .................................. 1129
Sec. 7491. Burden of proof ................................... 1130
Sec. 7502. Timely mailing treated as timely filing and paying ................. 1130
Sec. 7503. Time for performance where last day falls on Saturday, Sunday, or legal holiday . 1130
Sec. 7504. Fractional parts of a dollar .............................. 1131
Sec. 7520. Valuation tables ................................... 1131
Sec. 7602. Examination of books and witnesses ........................ 1131
Sec. 7701. Definitions ...................................... 1131
Sec. 7702. Life insurance contract defined ........................... 1136
Sec. 7702A. Modified endowment contract defined....................... 1139
Sec. 7702B. Treatment of qualified long-term care insurance .................. 1139
Sec. 7703. Determination of marital status ........................... 1142
Sec. 7704. Certain publicly traded partnerships treated as corporations ............ 1143
Sec. 7805. Rules and regulations ................................ 1144
Sec. 7806. Construction of title ................................ 1145
Sec. 7872. Treatment of loans with below-market interest rates ................ 1145
I.R.S. Procedural Rules ..................................... 1153
Depreciation Tables ........................................ 1167
2010 Inflation Adjustments and Automobile Mileage and Depreciation Amounts ....... 1171

 

Federal Individual, Corporate and Partnership Income Tax: With Commentary, 2010-2011 Edition

Table of Contents

TECHNICAL NOTE ........................................ xvii
Outline of the Internal Revenue Code ................................ 1
Sec. 1. Tax imposed ........................................ 4
TERMINATION DATES OF 2001 AND 2003 AMENDMENTS ................. 12
Sec. 2. Definitions and special rules ............................... 13
Sec. 3. Tax tables for individuals .................................. 14
Sec. 11. Tax imposed ........................................ 15
Sec. 21. Expenses for household and dependent care services nec. for gainful employment ... 15
Sec. 22. Credit for the elderly and the permanently and totally disabled ............. 24
Sec. 23. Adoption expenses .................................... 26
Sec. 24. Child tax credit ...................................... 28
Sec. 25A. Hope and Lifetime Learning credits ........................... 30
Sec. 25B. Elective deferrals and IRA contributions by certain individuals ............ 39
Sec. 25C. Nonbusiness energy property ............................. 40
Sec. 25D. Residential energy efficient property ......................... 42
Sec. 26. Limitation based on tax liability; definition of tax liability ................ 44
Sec. 30. Certain plug-in electric vehicles.............................. 44
Sec. 30B. Alternative motor vehicle credit ............................. 46
Sec. 30D. New qualified plug-in electric drive motor vehicles .................. 55
Sec. 31. Tax withheld on wages .................................. 57
Sec. 32. Earned income ...................................... 57
Sec. 35. Health insurance costs of eligible individuals ....................... 62
Sec. 36. First-time homebuyer credit ................................ 68
Sec. 36A. Making work pay credit ................................ 71
Sec. 36B. Refundable credit for coverage under a qualified health plan .............. 72
Sec. 38. General business credit ................................. 77
Sec. 39. Carryback and carryforward of unused credits ..................... 79
Sec. 41. Credit for increasing research activities .......................... 80
Sec. 42. Low-income housing credit ................................ 90
Sec. 45R. Employee health insurance expenses of small employers ................ 98
Sec. 46. Amount of credit ..................................... 102
Sec. 47. Rehabilitation credit .................................. 102
Sec. 48. Energy credit ....................................... 104
Sec. 50. Other special rules ................................... 104
Sec. 51. Amount of credit ..................................... 106
Sec. 53. Credit for prior year minimum tax liability ....................... 106
Sec. 55. Alternative minimum tax imposed ............................ 107
Sec. 56. Adjustments in computing alternative minimum taxable income ........... 109
Sec. 57. Items of tax preference .................................. 116
Sec. 58. Denial of certain losses ................................. 118
Sec. 59. Other definitions and special rules ............................ 119
Sec. 61. Gross income defined ................................. 120
Sec. 62. Adjusted gross income defined ............................. 136
Sec. 63. Taxable income defined ................................ 142
Sec. 64. Ordinary income defined ................................ 145
Sec. 65. Ordinary loss defined .................................. 145
Sec. 66. Treatment of community income ............................ 145
Sec. 67. 2-percent floor on miscellaneous itemized deductions ................. 146
Sec. 68. Overall limitation on itemized deductions ........................ 150
Sec. 71. Alimony and separate maintenance payments ...................... 151
Sec. 72. Annuities; certain proceeds of endowment and life insurance contracts ......... 159
Sec. 73. Services of child .................................... 215
Sec. 74. Prizes and awards .................................... 215
Sec. 79. Group-term life insurance purchased for employees .................. 219
Sec. 82. Reimbursement for expenses of moving ......................... 219
Sec. 83. Property transferred in connection with performance of services ........... 219
Sec. 84. Transfer of appreciated property to political organization ................ 233
Sec. 85. Unemployment compensation ............................. 233
Sec. 86. Social security and tier 1 railroad retirement benefits ................. 233
Sec. 101. Certain death benefits ................................. 236
Sec. 102. Gifts and inheritances ................................. 246
Sec. 103. Interest on State and local bonds ........................... 248
Sec. 104. Compensation for injuries or sickness ........................ 248
Sec. 105. Amounts received under accident and health plans ................... 250
Sec. 106. Contributions by employer to accident and health plans ................ 253
Sec. 107. Rental value of parsonages ............................... 254
Sec. 108. Income from discharge of indebtedness ........................ 255
Sec. 109. Improvements by lessee on lessor's property ...................... 264
Sec. 111. Recovery of tax benefit items .............................. 264
Sec. 112. Certain combat zone compensation of members of the Armed Forces ......... 264
Sec. 117. Qualified scholarships ................................. 264
Sec. 118. Contributions to the capital of a corporation ..................... 270
Sec. 119. Meals or lodging furnished for the convenience of the employer ........... 270
Sec. 121. Exclusion of gain from sale of principal residence ................... 276
Sec. 123. Amounts received under insurance contracts for certain living expenses ....... 291
Sec. 125. Cafeteria plans .................................... 291
Sec. 127. Educational assistance programs ........................... 295
Sec. 129. Dependent care assistance programs ......................... 297
Sec. 130. Certain personal injury liability assignments ...................... 300
Sec. 131. Certain foster care payments ............................. 300
Sec. 132. Certain fringe benefits ................................. 302
Sec. 134. Certain military benefits ................................ 339
Sec. 135. Inc. from U.S. savings bonds used to pay higher education tuition and fees ...... 339
Sec. 137. Adoption assistance programs ............................. 340
Sec. 139. Disaster relief payments ................................ 341
Sec. 139B. Benefits provided to volunteer firefighters and emergency medical providers .... 342
Sec. 141. Private activity bond; qualified bond .......................... 343
Sec. 142. Exempt facility bond ................................. 344
Sec. 143. Mort. revenue bonds: qualified mort. bond and qualified veterans' mortgage bond . 344
Sec. 144. Qual. small issue bond; qual. student loan bond; qual. redevelopment bond ...... 345
Sec. 145. Qualified 501(c)(3) bond ................................ 345
Sec. 146. Volume cap ...................................... 346
Sec. 148. Arbitrage ....................................... 346
Sec. 149. Bonds must be registered to be tax exempt; other requirements ........... 346
Sec. 151. Allowance of deductions for personal exemptions.................. 346
Sec. 152. Dependent defined .................................. 350
Sec. 161. Allowance of deductions ............................... 355
Sec. 162. Trade or business expenses ............................... 355
Sec. 163. Interest ........................................ 383
Sec. 164. Taxes ......................................... 412
Sec. 165. Losses ......................................... 418
Sec. 166. Bad debts ....................................... 431
Sec. 167. Depreciation ...................................... 438
Sec. 168. Accelerated cost recovery system ........................... 445
Sec. 169. Amortization of pollution control facilities ....................... 462
Sec. 170. Charitable, etc., contributions and gifts ........................ 462
Sec. 171. Amortizable bond premium .............................. 508
Sec. 172. Net operating loss deduction ............................. 510
Sec. 173. Circulation expenditures ............................... 517
Sec. 174. Research and experimental expenditures ........................ 517
Sec. 175. Soil and water conservation expenditures ....................... 518
Sec. 179. Election to expense certain depreciable business assets ............... 519
Sec. 179C. Election to expense certain refineries ......................... 521
Sec. 179D. Energy efficient commercial buildings deduction .................. 521
Sec. 180. Expenditures by farmers for fertilizer, etc. ...................... 522
Sec. 183. Activities not engaged in for profit ........................... 522
Sec. 186. Recoveries of damages for antitrust violations, etc. .................. 533
Sec. 190. Expend. to remove arch. and trans. barriers to the handicapped and elderly ...... 538
Sec. 193. Tertiary injectants .................................... 538
Sec. 194. Treatment of reforestation expenditures ........................ 538
Sec. 195. Start-up expenditures .................................. 539
Sec. 197. Amortization of goodwill and certain other intangibles ................ 541
Sec. 198. Expensing of environmental remediation costs .................... 551
Sec. 198A. Expensing of qualified disaster expenses ...................... 551
Sec. 211. Allowance of deductions ............................... 552
Sec. 212. Expenses for production of income ........................... 552
Sec. 213. Medical, dental, etc., expenses ............................ 555
Sec. 215. Alimony, etc., payments ................................ 567
Sec. 216. Ded. of taxes, interest, and bus. dep. by coop. housing corp. tenant-stockholder ... 568
Sec. 217. Moving expenses .................................... 568
Sec. 219. Retirement savings .................................. 586
Sec. 220. Archer MSAs ...................................... 591
Sec. 221. Interest on education loans .............................. 599
Sec. 222. Qualified tuition and related expenses ........................ 606
Sec. 223. Health savings accounts ................................ 607
Sec. 243. Dividends received by corporations .......................... 614
Sec. 246. Rules applying to deductions for dividends received .................. 615
Sec. 246A. Dividends received deduction reduced where portfolio stock is debt financed.... 616
Sec. 248. Organizational expenditures .............................. 617
Sec. 261. General rule for disallowance of deductions ..................... 617
Sec. 262. Personal, living, and family expenses ......................... 617
Sec. 263. Capital expenditures .................................. 619
Sec. 263A. Capitalization and inclusion in inventory costs of certain expenses ........ 642
Sec. 264. Certain amounts paid in connection with insurance contracts ............ 652
Sec. 265. Expenses and interest relating to tax-exempt income ................. 653
Sec. 266. Carrying charges ................................... 655
Sec. 267. Losses, expenses, and interest with respect to trans. between related taxpayers ... 656
Sec. 269. Acquisitions made to evade or avoid income tax .................... 661
Sec. 269A. Personal service corporations formed or availed of to avoid or evade income tax .. 663
Sec. 274. Disallowance of certain entertainment, etc., expenses ................ 663
Sec. 275. Certain taxes ..................................... 704
Sec. 276. Certain indirect contributions to political parties .................... 704
Sec. 280A. Dis. of cert. exp. in connect. with bus. use of home, rental of vaca. homes, etc. ... 704
Sec. 280B. Demolition of structures ............................... 710
Sec. 280E. Expenditures in connection with the illegal sale of drugs .............. 710
Sec. 280F. Limit. on dep. for luxury autos; limit. where cert. prop. used for personal purposes 710
Sec. 280G. Golden parachute payments .............................. 715
Sec. 291. Special rules relating to corporate preference items ................. 718
Sec. 301. Distributions of property ............................... 719
Sec. 302. Distributions in redemption of stock ......................... 722
Sec. 303. Distributions in redemption of stock to pay death taxes ............... 731
Sec. 304. Redemption through use of related corporations .................... 735
Sec. 305. Distributions of stock and stock rights ........................ 742
Sec. 306. Dispositions of certain stock ............................. 754
Sec. 307. Basis of stock and stock rights acquired in distributions ................ 759
Sec. 311. Taxability of corporation on distribution ....................... 760
Sec. 312. Effect on earnings and profits ............................. 760
Sec. 316. Dividend defined ................................... 768
Sec. 317. Other definitions ................................... 770
Sec. 318. Constructive ownership of stock ........................... 770
Sec. 331. Gain or loss to shareholders in corporate liquidations ................ 775
Sec. 332. Complete liquidations of subsidiaries ......................... 776
Sec. 334. Basis of property received in liquidations ....................... 779
Sec. 336. Gain or loss recognized on property distributed in complete liquidation ........ 779
Sec. 337. Nonrecog. for property distributed to parent in complete liquidation of subsidiary . 781
Sec. 338. Certain stock purchases treated as asset acquisitions .................. 782
Sec. 346. Definition and special rule .............................. 808
Sec. 351. Transfer to corporation controlled by transferor ................... 808
Sec. 354. Exchanges of stock and securities in certain reorganizations.............. 812
Sec. 355. Distribution of stock and securities of a controlled corporation ........... 815
Sec. 356. Receipt of additional consideration ........................... 850
Sec. 357. Assumption of liability ................................ 854
Sec. 358. Basis to distributees .................................. 857
Sec. 361. Nonrecognition of gain or loss to corporations; treatment of distributions ....... 871
Sec. 362. Basis to corporations ................................. 873
Sec. 368. Definitions relating to corporate reorganizations .................... 875
Sec. 381. Carryovers in certain corporate acquisitions ..................... 899
Sec. 382. Limit. on n.o.l carryforwards and cert. built-in losses following ownership change .. 903
Sec. 383. Special limitations on certain excess credits, etc. ................... 913
Sec. 384. Limitation on use of preacquisition losses to offset built-in gains .......... 913
Sec. 385. Treatment of certain interests in corporations as stock or indebtedness ........ 915
Sec. 401. Qualified pension, profit-sharing, and stock bonus plans ............... 916
Sec. 402. Taxability of beneficiary of employees' trust ...................... 919
Sec. 404. Ded. for conts. to an ees' trust or annuity plan and comp. under a def'd-pmnt plan .. 919
Sec. 408. Individual retirement accounts ............................ 919
Sec. 408A. Roth IRAs ...................................... 921
Sec. 409A. Incl. in gross income of def'd comp. under nonqualified def'd comp. plans .... 923
Sec. 414. Definitions and special rules ............................. 930
Sec. 415. Limitations on benefits and contribution under qualified plans ............ 932
Sec. 416. Special rules for top-heavy plans ............................ 934
Sec. 421. General rules ..................................... 935
Sec. 422. Incentive stock options................................ 936
Sec. 441. Period for computation of taxable income ...................... 937
Sec. 443. Returns for a period of less than 12 months ...................... 938
Sec. 446. General rule for methods of accounting ........................ 938
Sec. 448. Limitation on use of cash method of accounting .................... 943
Sec. 451. General rule for taxable year of inclusion ....................... 947
Sec. 453. Installment method .................................. 951
Sec. 453A. Special rules for nondealers ............................. 979
Sec. 453B. Gain or loss disposition of installment obligations .................. 981
Sec. 454. Obligations issued at discount ............................. 982
Sec. 455. Prepaid subscription income ............................. 984
Sec. 461. General rule for taxable year of deduction ...................... 984
Sec. 465. Deductions limited to amount at risk .......................... 996
Sec. 467. Certain payments for the use of property or services ................ 1000
Sec. 469. Passive activity losses and credits limited....................... 1003
Sec. 471. General rule for inventories .............................. 1023
Sec. 472. Last-in, first-out inventories .............................. 1031
Sec. 482. Allocation of income and deductions among taxpayers ................ 1032
Sec. 483. Interest on certain deferred payments ......................... 1033
Sec. 501. Exemption from tax on corporations, certain trusts, etc. ............... 1035
Sec. 509. Private foundation defined .............................. 1043
Sec. 529. Qualified tuition programs .............................. 1045
Sec. 530. Coverdell education savings accounts ........................ 1049
Sec. 531. Imposition of accumulated earnings tax........................ 1052
Sec. 532. Corporations subject to accumulated earnings tax .................. 1052
Sec. 533. Evidence of purpose to avoid income tax ....................... 1053
Sec. 534. Burden of proof ................................... 1053
Sec. 535. Accumulated taxable income ............................ 1053
Sec. 536. Income not placed on annual basis .......................... 1055
Sec. 541. Imposition of personal holding company tax .................... 1055
Sec. 542. Definition of personal holding company ....................... 1056
Sec. 543. Personal holding company income ......................... 1058
Sec. 544. Rules for determining stock ownership ....................... 1063
Sec. 545. Undistributed personal holding company income ................... 1063
Sec. 546. Income not placed on annual basis .......................... 1064
Sec. 547. Deduction for deficiency dividends .......................... 1064
Sec. 611. Allowance of deduction for depletion ......................... 1066
Sec. 612. Basis for cost depletion ............................... 1066
Sec. 613. Percentage depletion ................................. 1066
Sec. 613A. Limitations on percentage depletion in case of oil and gas wells......... 1068
Sec. 616. Development expenditures .............................. 1068
Sec. 617. Deduction and recapture of certain mining exploration expenditures ......... 1068
Sec. 631. Gain or loss in the case of timber, coal, or domestic iron ore ............. 1069
Sec. 641. Imposition of tax ................................... 1069
Sec. 642. Special rules for credits and deductions ........................ 1069
Sec. 651. Deduction for trusts distributing current income only ................ 1070
Sec. 652. Incl. of amnts in gross inc. of benes. of trusts distributing current income only ... 1071
Sec. 661. Deduction for estates and trusts accumulating income or distributing corpus .... 1073
Sec. 662. Incl. of amnts in gross inc. of benes. of estates and trusts acc. inc. or dist. corpus . 1073
Sec. 671. Trust inc, deds, and credits attributable to grantors and others as sub. owners ... 1075
Sec. 672. Definitions and rules ................................. 1075
Sec. 674. Power to control beneficial enjoyment ....................... 1076
Sec. 678. Person other than grantor treated as substantial owner ............... 1080
Sec. 682. Income of an estate or trust in case of divorce, etc. .................. 1080
Sec. 691. Recipients of income in respect of decedents ..................... 1081
Sec. 701. Partners, not partnership, subject to tax ........................ 1085
Sec. 702. Income and credits of partner ............................ 1094
Sec. 703. Partnership computations .............................. 1097
Sec. 704. Partner's distributive share .............................. 1099
Sec. 705. Determination of basis of partner's interest ..................... 1173
Sec. 706. Taxable years of partner and partnership ...................... 1176
Sec. 707. Transactions between partner and partnership .................... 1188
Sec. 708. Continuation of partnership .............................. 1201
Sec. 709. Treatment of organization and syndication fees .................... 1207
Sec. 721. Nonrecognition of gain or loss on contribution .................... 1209
Sec. 722. Basis of contributing partner's interest ........................ 1212
Sec. 723. Basis of property contributed to partnership ..................... 1213
Sec. 724. Character of gain or loss on contrib'd unreal. rec, inv. items, and capital loss prop. . 1213
Sec. 731. Extent of recognition of gain or loss on distribution ................. 1214
Sec. 732. Basis of distributed property other than money .................... 1222
Sec. 733. Basis of distributee partner's interest ........................ 1228
Sec. 734. Adjust. to basis of undist. p'shp prop. where sect. 754 elec. or sub. basis reduction . 1229
Sec. 735. Character of gain or loss on disposition of distributed property ........... 1231
Sec. 736. Payments to a retiring partner or a deceased partner's successor in interest ..... 1232
Sec. 737. Recog. of precontrib. gain in case of certain distributions to contributing partner . 1235
Sec. 741. Recognition and character of gain or loss on sale or exchange ........... 1241
Sec. 742. Basis of transferee partner's interest .......................... 1241
Sec. 743. Special rules where section 754 election or substantial built-in loss ........ 1242
Sec. 751. Unrealized receivables and inventory items ...................... 1249
Sec. 752. Treatment of certain liabilities ............................ 1262
Sec. 753. Partner receiving income in respect of decedent ................... 1275
Sec. 754. Manner of electing optional adjustment to basis of partnership property ....... 1275
Sec. 755. Rules for allocation of basis .............................. 1276
Sec. 761. Terms defined .................................... 1281
Sec. 771. Application of subchapter to electing large partnerships .............. 1285
Sec. 772. Simplified flow-through ................................ 1285
Sec. 773. Computations at partnership level ........................... 1286
Sec. 774. Other modifications .................................. 1287
Sec. 775. Electing large partnership defined .......................... 1288
Sec. 777. Regulations ..................................... 1289
Sec. 911. Citizens or residents of the United States living abroad ................ 1289
Sec. 1001. Determination of amount of and recognition of gain or loss ............. 1289
Sec. 1002. Recognition of gain or loss (repealed) ........................ 1298
Sec. 1011. Adjusted basis for determining gain or loss .................... 1298
Sec. 1012. Basis of property - cost ............................... 1300
Sec. 1014. Basis of property acquired from a decedent .................... 1309
Sec. 1015. Basis of property acquired by gifts and transfers in trust .............. 1313
Sec. 1016. Adjustments to basis ................................. 1316
Sec. 1017. Discharge of indebtedness............................. 1319
Sec. 1019. Property on which lessee has made improvements ................. 1321
Sec. 1022. Treatment of property acquired from a decedent dying after December 31, 2009 .. 1321
Sec. 1031. Exchange of property held for productive use or investment ............ 1325
Sec. 1032. Exchange of stock for property ........................... 1347
Sec. 1033. Involuntary conversions .............................. 1349
Sec. 1036. Stock for stock of same corporation ........................ 1353
Sec. 1038. Certain reacquisitions of real property ........................ 1354
Sec. 1041. Transfers of property between spouses or incident to divorce ............ 1355
Sec. 1045. Rollover of gain from qual. small bus. stock to another qual. small bus. stock .. 1358
Sec. 1059. Corp. shareholder's basis in stock reduced by nontaxed port. of extra. dividends .. 1358
Sec. 1060. Special allocation rules for certain asset acquisitions ............... 1362
Sec. 1091. Loss from wash sales of stock or securities .................... 1365
Sec. 1092. Straddles ...................................... 1368
Sec. 1201. Alternative tax for corporations .......................... 1372
Sec. 1202. Partial exclusion for gain from certain small business stock ............ 1372
Sec. 1211. Limitation on capital losses ............................. 1373
Sec. 1212. Capital loss carrybacks and carryovers ....................... 1373
Sec. 1221. Capital asset defined ................................. 1374
Sec. 1222. Other terms relating to capital gains and losses .................. 1376
Sec. 1223. Holding period of property ............................. 1377
Sec. 1231. Property used in the trade or business and involuntary conversions ......... 1380
Sec. 1233. Gains and losses from short sales .......................... 1383
Sec. 1234. Options to buy or sell ................................ 1385
Sec. 1234A. Gains or losses from certain terminations .................... 1386
Sec. 1234B. Gains or losses from securities futures contracts .................. 1386
Sec. 1235. Sale or exchange of patents ............................. 1387
Sec. 1236. Dealers in securities ................................ 1387
Sec. 1237. Real property subdivided for sale ......................... 1389
Sec. 1239. Gain from sale of depreciable property between certain related taxpayers ..... 1390
Sec. 1241. Cancellation of lease or distributor's agreement ................... 1391
Sec. 1242. Losses on small business investment company stock ............... 1391
Sec. 1243. Loss of small business investment company ..................... 1391
Sec. 1244. Losses on small business stock ........................... 1392
Sec. 1245. Gain from dispositions of certain depreciable property .............. 1393
Sec. 1250. Gain from dispositions of certain depreciable realty ................. 1400
Sec. 1252. Gain from disposition of farm land ......................... 1402
Sec. 1253. Transfers of franchises, trademarks, and trade names ............... 1403
Sec. 1254. Gain from disp. of interest in oil, gas, geothermal, or other mineral properties .. 1404
Sec. 1256. Section 1256 contracts marked to market ..................... 1405
Sec. 1258. Recharacterization of gain from certain financial transactions ........... 1409
Sec. 1271. Treatment of amounts received on retirement or sale or exchange of debt insts. .. 1411
Sec. 1272. Current inclusion in income of original issue discount ............... 1412
Sec. 1273. Determination of amount of original issue discount ................. 1414
Sec. 1274. Det. of issue price in the case of certain debt instruments issued for property ... 1416
Sec. 1274A. Spec. rules for cert. trans. where stated princ. amnt does not exc. $2,800,000 .. 1419
Sec. 1275. Other definitions and special rules .......................... 1420
Sec. 1276. Disposition gain representing accrued market discount treated as ordinary inc. .. 1422
Sec. 1277. Deferral of interest deduction allocable to accrued market discount ........ 1424
Sec. 1278. Definitions and special rules ............................. 1425
Sec. 1281. Current inclusion in income of discount on certain short-term obligations .... 1427
Sec. 1283. Definitions and special rules ............................. 1428
Sec. 1286. Tax treatment of stripped bonds .......................... 1429
Sec. 1288. Treatment of original issue discount on tax-exempt obligations ........... 1430
Sec. 1311. Correction of error................................. 1431
Sec. 1312. Circumstances of adjustment ............................ 1432
Sec. 1313. Definitions. ..................................... 1433
Sec. 1314. Amount and method of adjustment ......................... 1434
Sec. 1341. Comp. of tax where taxpayer restores sub. amount held under claim of right .... 1435
Sec. 1361. S corporation defined ................................ 1441
Sec. 1362. Election; revocation; termination .......................... 1454
Sec. 1363. Effect of election on corporation ........................... 1465
Sec. 1366. Pass-thru of items to shareholders ......................... 1467
Sec. 1367. Adjustments to basis of stock of shareholders, etc. ................. 1471
Sec. 1368. Distributions .................................... 1475
Sec. 1371. Coordination with subchapter C .......................... 1480
Sec. 1374. Tax imposed on certain built-in gains ....................... 1481
Sec. 1375. Tax imp. when pass. inv. inc. of corp. having acc. E&P exceeds 25% of gross rec. 1485
Sec. 1377. Definitions and special rule ............................. 1486
Sec. 1378. Taxable year of S corporation ........................... 1488
Sec. 1402. Definitions ...................................... 1489
Sec. 1411. Imposition of tax ................................... 1491
Sec. 1501. Privilege to file consolidated returns ......................... 1492
Sec. 1502. Regulations ..................................... 1492
Sec. 1504. Definitions ...................................... 1502
Sec. 1561. Limit. on cert. multiple tax benefits in the case of cert. controlled corps. ...... 1503
Sec. 1563. Definitions and special rules ............................. 1503
Sec. 2031. Definition of gross estate .............................. 1508
Sec. 2032. Alternate Valuation .................................. 1512
Sec. 2032A. Valuation of certain farm, etc., real property .................... 1513
Sec. 2512. Valuation of gifts ................................... 1513
Sec. 3401. Definitions ...................................... 1515
Sec. 3402. Income tax collected at source ............................ 1520
Sec. 4911. Tax on excess expenditures to influence legislation ................ 1523
Sec. 4974. Excise tax on certain accumulations in qualified retirement plans ......... 1525
Sec. 6001. Notice or regulations requiring records, statements, and special returns ...... 1525
Sec. 6011. General requirement of return, statement, or list ................... 1526
Sec. 6012. Persons required to make returns of income ..................... 1534
Sec. 6013. Joint returns of income tax by husband and wife .................. 1535
Sec. 6015. Relief from joint and several liability on joint return ................ 1538
Sec. 6041. Information at source ................................ 1540
Sec. 6041A. Returns regarding payments of remuneration for services and direct sales ... 1541
Sec. 6042. Returns regarding payments of dividends and corporate earnings and profits .... 1541
Sec. 6045. Returns of brokers ................................. 1541
Sec. 6050W. Returns relat. to pmnts made in settle. of pmnt card and third party net. trans. . 1545
Sec. 6053. Reporting of tips ................................... 1547
Sec. 6061. Signing of returns and other documents ...................... 1549
Sec. 6071. Time for filing returns and other documents ..................... 1549
Sec. 6072. Time for filing income tax returns .......................... 1550
Sec. 6103. Confidentiality and disclosure of returns and return information ......... 1551
Sec. 6109. Identifying numbers ................................ 1551
Sec. 6110. Public inspection of written determinations .................... 1551
Sec. 6111. Disclosure of reportable transactions ........................ 1554
Sec. 6115. Disclosure related to quid pro quo contributions .................. 1555
Sec. 6151. Time and place for paying tax shown on returns................... 1555
Sec. 6201. Assessment authority ................................ 1555
Sec. 6203. Method of assessment ............................... 1556
Sec. 6211. Definition of a deficiency .............................. 1556
Sec. 6213. Restrictions applicable to deficiencies; petition to Tax Court ........... 1557
Sec. 6215. Assessment of deficiency found by Tax Court .................... 1559
Sec. 6401. Amounts treated as overpayments ......................... 1559
Sec. 6402. Authority to make credit or refund .......................... 1560
Sec. 6501. Limitations on assessment and collection ..................... 1561
Sec. 6511. Limitations on credit or refund ............................ 1563
Sec. 6601. Interest on underpayment, nonpayment, or extensions of time for pmnt, of tax ... 1565
Sec. 6611. Interest on overpayments .............................. 1567
Sec. 6651. Failure to file tax return or to pay tax ....................... 1570
Sec. 6654. Failure by individual to pay estimated income tax.................. 1571
Sec. 6662. Imposition of accuracy-related penalty on underpayments ............. 1575
Sec. 6662A. Imp. of accuracy-related penalty on understatements w/ respect to report. trans. 1581
Sec. 6663. Imposition of fraud penalty ............................. 1582
Sec. 6664. Definitions, special rules ............................... 1583
Sec. 6694. Understatement of taxpayer's liability by tax return preparer ........... 1587
Sec. 6700. Promoting abusive tax shelters, etc. ........................ 1592
Sec. 6701. Penalties for aiding and abetting understatement of tax liability .......... 1593
Sec. 6702. Frivolous Tax Submissions ............................. 1594
Sec. 6707. Failure to furnish information regarding reportable transactions .......... 1595
Sec. 6707A. Penalty for failure to include reportable transaction information with return .. 1596
Sec. 7121. Closing agreements ................................. 1596
Sec. 7122. Compromises .................................... 1598
Sec. 7201. Attempt to evade or defeat tax ............................ 1603
Sec. 7202. Willful failure to collect or pay over tax ....................... 1603
Sec. 7203. Willful failure to file return, supply information, or pay tax ............. 1604
Sec. 7206. Fraud and false statements .............................. 1604
Sec. 7217. Prohibition on exec. branch influence over tp'er audits and other investigations . 1604
Sec. 7408. Actions to enjoin spec. conduct related to tax shelters and reportable trans. .... 1605
Sec. 7421. Prohibition of suits to restrain assessment or collection ............... 1605
Sec. 7422. Civil actions for refund ............................... 1605
Sec. 7430. Awarding of costs and certain fees .......................... 1607
Sec. 7454. Burden of proof in fraud, foundation manager, and transferee cases ........ 1613
Sec. 7463. Disputes involving $50,000 or less ......................... 1613
Sec. 7482. Courts of review .................................. 1614
Sec. 7491. Burden of proof ................................... 1615
Sec. 7502. Timely mailing treated as timely filing and paying ................. 1615
Sec. 7503. Time for perf. of acts where last day falls on Saturday, Sunday, or legal holiday . 1615
Sec. 7519. Required payments for entities electing not to have required taxable year ..... 1616
Sec. 7504. Fractional parts of a dollar .............................. 1617
Sec. 7520. Valuation tables ................................... 1618
Sec. 7602. Examination of books and witnesses ........................ 1618
Sec. 7701. Definitions ...................................... 1618
Sec. 7702. Life insurance contract defined ........................... 1628
Sec. 7702A. Modified endowment contract defined....................... 1631
Sec. 7702B. Treatment of qualified long-term care insurance .................. 1631
Sec. 7703. Determination of marital status ........................... 1634
Sec. 7704. Certain publicly traded partnerships treated as corporations ............ 1635
Sec. 7805. Rules and regulations ................................ 1636
Sec. 7806. Construction of title ................................ 1637
Sec. 7872. Treatment of loans with below-market interest rates ................ 1638
I.R.S. Procedural Rules ..................................... 1645
Depreciation Tables ........................................ 1659
2010 Inflation Adjustments and Automobile Mileage and Depreciation Amounts ....... 1663