I.R.C. § 367(a) Transfers Of Property From The United States
I.R.C. § 367(a)(1) General Rule —
If, in connection with any exchange described in section 332, 351, 354, 356,
or 361, a United
States person transfers property to a foreign corporation, such foreign
corporation shall not, for purposes of determining the extent to
which gain shall be recognized on such transfer, be considered to
be a corporation.
I.R.C. § 367(a)(2) Exception For Certain Stock Or Securities —
Except to the extent provided in regulations, paragraph (1) shall not apply to the transfer
of stock or securities of a foreign corporation which is a party
to the exchange or a party to the reorganization.
I.R.C. § 367(a)(3) Special Rule For Transfer Of Partnership Interests —
Except as provided in regulations prescribed by the
Secretary, a transfer by a United States person of an interest in
a partnership to a foreign corporation in an exchange described in
paragraph (1) shall, for
purposes of this subsection, be treated as a transfer to such corporation
of such person's pro rata share of the assets of the partnership.
I.R.C. § 367(a)(4) Paragraph (2) Not To Apply To Certain Section 361 Transactions —
Paragraph (2) shall
not apply in the case of an exchange described in subsection (a) or (b) of
section 361. Subject
to such basis adjustments and such other conditions as shall be provided
in regulations, the preceding sentence shall not apply if the transferor
corporation is controlled (within the meaning of section 368(c)) by 5 or fewer domestic
corporations. For purposes of the preceding sentence, all members
of the same affiliated group (within the meaning of section 1504) shall be treated as 1 corporation.
I.R.C. § 367(a)(5) Secretary May Exempt Certain Transactions From Application Of
This Subsection —
Paragraph (1) shall
not apply to the transfer of any property which the Secretary, in
order to carry out the purposes of this subsection, designates by
regulation.
I.R.C. § 367(b) Other Transfers
I.R.C. § 367(b)(1) Effect Of Section To Be Determined Under Regulations —
In the case of any exchange described in section 332, 351, 354, 355, 356, or 361 in connection with which there
is no transfer of property described in subsection (a)(1), a foreign corporation shall
be considered to be a corporation except to the extent provided in
regulations prescribed by the Secretary which are necessary or appropriate
to prevent the avoidance of Federal income taxes.
I.R.C. § 367(b)(2) Regulations Relating To Sale Or Exchange Of Stock In Foreign
Corporations —
The regulations prescribed pursuant to paragraph (1) shall include (but shall not
be limited to) regulations dealing with the sale or exchange of stock
or securities in a foreign corporation by a United States person,
including regulations providing—
I.R.C. § 367(b)(2)(A) —
the circumstances under which—
I.R.C. § 367(b)(2)(A)(i) —
gain shall be recognized currently,
or amounts included in gross income currently as a dividend, or both,
or
I.R.C. § 367(b)(2)(A)(ii) —
gain or other amounts may be deferred
for inclusion in the gross income of a shareholder (or his successor
in interest) at a later date, and
I.R.C. § 367(b)(2)(B) —
the extent to which adjustments shall
be made to earnings and profits, basis of stock or securities, and
basis of assets.
I.R.C. § 367(c) Transactions To Be Treated As Exchanges
I.R.C. § 367(c)(1) Section 355 Distribution —
For purposes of this section, any distribution described
in section 355 (or
so much of section 356 as
relates to section 355)
shall be treated as an exchange whether or not it is an exchange.
I.R.C. § 367(c)(2) Contribution Of Capital To Controlled Corporations —
For purposes of this chapter, any transfer of property
to a foreign corporation as a contribution to the capital of such
corporation by one or more persons who, immediately after the transfer,
own (within the meaning of section 318)
stock possessing at least 80 percent of the total combined voting
power of all classes of stock of such corporation entitled to vote
shall be treated as an exchange of such property for stock of the
foreign corporation equal in value to the fair market value of the
property transferred.
I.R.C. § 367(d) Special Rules Relating To Transfers Of Intangibles
I.R.C. § 367(d)(1) In General —
Except as provided in regulations prescribed by the
Secretary, if a United States person transfers any intangible property
to a foreign corporation in an exchange described in section 351 or 361—
I.R.C. § 367(d)(1)(A) —
subsection (a) shall not apply to the
transfer of such property, and
I.R.C. § 367(d)(1)(B) —
the provisions of this subsection shall
apply to such transfer.
I.R.C. § 367(d)(2) Transfer Of Intangibles Treated As Transfer Pursuant To Sale
Of Contingent Payments
I.R.C. § 367(d)(2)(A) In General —
If paragraph (1) applies
to any transfer, the United States person transferring such property
shall be treated as—
I.R.C. § 367(d)(2)(A)(i) —
having sold such property in exchange
for payments which are contingent upon the productivity, use, or
disposition of such property, and
I.R.C. § 367(d)(2)(A)(ii) —
receiving amounts which reasonably
reflect the amounts which would have been received—
I.R.C. § 367(d)(2)(A)(ii)(I) —
annually in the form of such payments
over the useful life of such property, or
I.R.C. § 367(d)(2)(A)(ii)(II) —
in the case of a disposition following
such transfer (whether direct or indirect), at the time of the disposition.
The amounts taken into account under clause (ii) shall be commensurate
with the income attributable to the intangible.
I.R.C. § 367(d)(2)(B) Effect On Earnings And Profits —
For purposes of this chapter, the earnings and profits
of a foreign corporation to which the intangible property was transferred
shall be reduced by the amount required to be included in the income
of the transferor of the intangible property under subparagraph (A)(ii).
I.R.C. § 367(d)(2)(C) Amounts Received Treated As Ordinary Income —
For purposes of this chapter, any amount included in
gross income by reason of this subsection shall be treated as ordinary
income. For purposes of applying section 904(d), any such amount shall
be treated in the same manner as if such amount were a royalty.
I.R.C. § 367(d)(2)(D) Regulatory Authority —
For purposes of the last sentence of subparagraph (A),
the Secretary shall require—
I.R.C. § 367(d)(2)(D)(i) —
the valuation of transfers of intangible
property, including intangible property transferred with other property
or services, on an aggregate basis, or
I.R.C. § 367(d)(2)(D)(ii) —
the valuation of such a transfer on
the basis of the realistic alternatives to such a transfer,
if the Secretary determines that
such basis is the most reliable means of valuation of such transfers.
I.R.C. § 367(d)(3) Regulations Relating To Transfers Of Intangibles To Partnerships —
The Secretary may provide by regulations that the rules
of paragraph (2) also
apply to the transfer of intangible property by a United States person
to a partnership in circumstances consistent with the purposes of
this subsection.
I.R.C. § 367(d)(4) Intangible Property —
For purposes of this subsection, the term “intangible
property” means any—
I.R.C. § 367(d)(4)(A) —
patent, invention, formula, process, design, pattern,
or know-how,
I.R.C. § 367(d)(4)(B) —
copyright, literary, musical, or artistic composition,
I.R.C. § 367(d)(4)(C) —
trademark, trade name, or brand name,
I.R.C. § 367(d)(4)(D) —
franchise, license, or contract,
I.R.C. § 367(d)(4)(E) —
method, program, system, procedure, campaign, survey,
study, forecast, estimate, customer list, or technical data,
I.R.C. § 367(d)(4)(F) —
goodwill, going concern value, or workforce in place
(including its composition and terms and conditions (contractual or
otherwise) of its employment), or
I.R.C. § 367(d)(4)(G) —
other item the value or potential value of which is
not attributable to tangible property or the services of any individual.
I.R.C. § 367(e) Treatment Of Distributions Described In Section 355 Or Liquidations
Under Section 332
I.R.C. § 367(e)(1) Distributions Described In Section 355 —
In the case of any distribution described in section 355 (or so much of section 356 as relates to section 355) by a domestic corporation
to a person who is not a United States person, to the extent provided
in regulations, gain shall be recognized under principles similar
to the principles of this section.
I.R.C. § 367(e)(2) Liquidations Under Section 332 —
In the case of any liquidation to which section 332 applies, except as provided
in regulations, subsections (a) and (b)(1) of section 337 shall not apply where the
80-percent distributee (as defined in section 337(c)) is a foreign corporation.
I.R.C. § 367(f) Other Transfers —
To the extent provided in regulations, if a United
States person transfers property to a foreign corporation as paid-in
surplus or as a contribution to capital (in a transaction not otherwise
described in this section), such transfer shall be treated as a sale
or exchange for an amount equal to the fair market value of the property
transferred, and the transferor shall recognize as gain the excess
of—
I.R.C. § 367(f)(1) —
the fair market value of the property
so transferred, over
I.R.C. § 367(f)(2) —
the adjusted basis (for purposes
of determining gain) of such property in the hands of the transferor.
(Aug. 16, 1954, ch. 736, 68A Stat. 119; Jan. 12, 1971,
Pub. L. 91-681, Sec. 1(a), 84 Stat. 2065; Oct. 4, 1976, Pub. L. 94-455, title X, Sec. 1042(a), 90 Stat. 1634; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 213(d), 96 Stat. 465; July 18, 1984, Pub. L. 98-369, div. A, title I, Sec. 131(a)-(c), 98 Stat. 662-664; Oct. 22, 1986, Pub. L. 99-514, title VI, Sec. 631(d)(1),
title XII, Sec. 1231(e)(2), title XVIII, Sec. 1810(g)(1), (4), 100 Stat. 2272, 2563, 2828, 2829; Nov.
10, 1988, Pub. L. 100-647, title
I, Sec. 1006(e)(13)(A), 102 Stat. 3402;
Nov. 5, 1990, Pub. L. 101-508,
title XI, Sec. 11702(a)(1), 104 Stat.
1388-514; Pub. L. 105-34,
title XI, Sec. 1131(b), Aug. 5, 1997, 111
Stat 788; Pub. L. 106-170,
title V, Sec. 532(c), Dec. 17, 1999, 113
Stat 1860; Pub. L. 108-357,
title IV, Sec. 406(a), Oct. 22, 2004, 118
Stat. 1418; Pub. L. 115-97,
title I, Sec. 14102(e), 14221(b)(1), Dec. 22, 2017, 131 Stat. 2054; Pub.
L. 115-141, Div. U, title IV, Sec. 401(d)(1)(D)(viii)(I)–(II),
Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 Subsec.
(d). Pub. L. 115-141, Div. U,
Sec. 401(d)(1)(D)(viii)(I), amended subsec. (d) by adding new par.
(4).
Subsec. (d)(1). Pub.
L. 115-141, Div. U, Sec. 401(d)(1)(D)(viii)(II), amended
par. (1) by striking “(within the meaning of section 936(h)(3)(B))”.
2017 Subsec.
(a)(3)-(6). Pub. L. 115-97, Sec.
14102(e)(1), amended subsec. (a) by striking paragraph (3),
and redesignating paragraphs (4), (5), and (6) as paragraphs (3),
(4), and (5), respectively. Before being struck, par. (3) read as
follows:
“(3) Exception For Transfers Of Certain
Property Used In The Active Conduct Of A Trade Or Business
“(A) In General.—Except as provided
in regulations prescribed by the Secretary, paragraph (1) shall not
apply to any property transferred to a foreign corporation for use
by such foreign corporation in the active conduct of a trade or business
outside of the United States.
“(B) Paragraph Not To Apply To Certain Property.—Except
as provided in regulations prescribed by the Secretary, subparagraph
(A) shall not apply to any—
“(i) property described in paragraph (1)
or (3) of section 1221(a) (relating to inventory and copyrights, etc.),
“(ii) installment obligations, accounts
receivable, or similar property,
“(iii) foreign currency or other property
denominated in foreign currency,
“(iv) intangible property (within the meaning
of section 936(h)(3)(B)), or
“(v) property with respect to which the
transferor is a lessor at the time of the transfer, except that this
clause shall not apply if the transferee was the lessee.
“(C) Transfer Of Foreign Branch With Previously
Deducted Losses.—Except as provided in regulations prescribed
by the Secretary, subparagraph (A) shall not apply to gain realized
on the transfer of the assets of a foreign branch of a United States
person to a foreign corporation in an exchange described in paragraph
(1) to the extent that—
“(i) the sum of losses—
“(I) which were incurred by the foreign
branch before the transfer, and
“(II) with respect to which a deduction
was allowed to the taxpayer, exceeds
“(ii) the sum of—
“(I) any taxable income of such branch
for a taxable year after the taxable year in which the loss was incurred
and through the close of the taxable year of the transfer, and
“(II) the amount which is recognized under
section 904(f)(3) on account of the transfer.
“Any gain recognized by reason of the preceding
sentence shall be treated for purposes of this chapter as income from
sources outside the United States having the same character as such
losses had.”
Subsec. (a)(4). Pub. L. 115-97, Sec. 14102(e)(2)(B),
amended par. (4) by substituting ‘‘PARAGRAPH (2)”
for ‘PARAGRAPHS (2) AND (3)’’ in the heading.
Subsec. (a)(4). Pub. L. 115-97, Sec. 14102(e)(2)(A),
(B), amended par. (4), as redesignated, by substituting ‘‘Paragraph
(2)’’ for ‘‘Paragraphs (2) and (3)’’.
Subsec. (d)(2). Pub.
L. 115-97, Sec. 14221(b)(1), amended par. (2) by adding
new subpar. (D).
2004 - Subsec. (d)(2)(C). Pub. L. 108-357, Sec. 406(a), amended
subpar. (C) by adding the sentence at the end.
1999 - Subsec. (a)(3)(B). Pub. L. 106-170, Sec. 532(c), amended
clause (i) by substituting “section 1221(a)” for “section 1221”.
1997 - Subsec. (d)(2)(C). Pub. L. 105-34, Sec. 1131(b)(4) [note
that there were two subsec. (b)s], amended subpar. (C). Prior to amendment
it read as follows:
“(C) Amounts received treated
as United States source ordinary income
For purposes of this chapter,
any amount included in gross income by reason of this subsection shall
be treated as ordinary income from sources within the United States.”
Subsec. (d)(3). Pub. L. 105-34, Sec. 1131(b)(5)(A) [note
that there were two subsec. (b)s], added par. (3).
Subsec. (f). Pub.
L. 105-34, Sec. 1131(b)(2) [note that there were two subsec.
(b)s], added subsec. (f).
1990 - Subsec. (a)(5). Pub. L. 101-508 substituted ‘subsection
(a) or (b) of section 361’ for ‘section 361’.
1988 - Subsec. (a)(5), (6). Pub. L. 100-647 added par. (5) and redesignated
former par. (5) as (6).
1986 - Subsec. (a)(1). Pub. L. 99-514, Sec. 1810(g)(4)(A),
struck out ‘355,’ after ‘354,’.
Subsec. (d)(2)(A). Pub. L. 99-514, Sec. 1231(e)(2),
inserted at end ‘The amounts taken into account under clause (ii)
shall be commensurate with the income attributable to the intangible.’
Subsec. (e). Pub.
L. 99-514, Sec. 631(d)(1), amended subsec. (e) generally.
Prior to amendment, subsec. (e) read as follows:
“(e) TREATMENT OF LIQUIDATIONS UNDER SECTION
336.—In the case of any distribution described in section 336
by a domestic corporation which is made to a person who is not a United
States person, to the extent provided in regulations, gain shall be
recognized under principles similar to the principles of this section.”
Subsec. (f). Pub.
L. 99-514, Sec. 1810(g)(1), struck out subsec. (f) which
related to transitional rules in the case of any exchanges beginning
before Jan. 1, 1978.
Pub. L.
99-514, Sec. 1810(g)(4)(B), in heading substituted ‘distributions
described in section 336 or 355’ for ‘liquidations under section 336’,
and in text inserted ‘or 355 (or so much of section 356 as relates
to section 355)’.
1984 - Subsec. (a). Pub. L. 98-369, Sec. 131(a), amended
subsec. (a) generally, revising provisions of pars. (1) and (2), and
adding pars. (3) to (5).
Subsec. (d). Pub.
L. 98-369, Sec. 131(b), amended subsec. (d) generally, substituting
provision providing special rules relating to transfers of intangibles
for provision providing special rules relating to transfers of intangibles
by possession corporation.
Subsecs. (e), (f). Pub.
L. 98-369, Sec. 131(c), added subsec. (e) and redesignated
former subsec. (e) as (f).
1982 - Subsecs. (d), (e). Pub. L. 97-248 added subsec. (d) and redesignated
former subsec. (d) as (e).
1976 - Pub.
L. 94-455, among other changes, inserted provisions permitting
nonrecognition of gain if a request for a ruling that tax avoidance
is not present is filed within 183 days after beginning of an exchange,
relating to an organization, reorganization, and liquidation of a
foreign corporation, in the case of outbound transfers, however, for
all other transfers, regulations are to provide the extent that earnings
are to be taken into account as dividends and provisions relating
to Tax Court review of the tax avoidance rulings.
1971 - Subsec. (a). Pub. L. 91-681 designated existing provisions
as subsec. (a), and, as so designated, inserted provisions relating
to instances of an exchange, described in subsec. (b). Provisions
relating to distributions described in section 355 (or so much of
section 356 as relates to section 355) were stricken and were transferred
to subsec. (c).
Subsec. (b). Pub. L. 91-681 added
subsec. (b).
Subsec. (c). Pub. L. 91-681 designated
as subsec. (c) provisions relating to distribution described in section
355 (or so much of section 356 as relates to section 355).
Subsec. (d). Pub. L. 91-681 added
subsec. (d).
EFFECTIVE DATE OF 2018
AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 401(d)(1),
effective March 23, 2018.
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following
Savings Provision:
“(e) General Savings
Provision With Respect To Deadwood Provisions.—If—
“(1) any provision
amended or repealed by the amendments made by subsection (b) or (d)
applied to—
“(A) any transaction
occurring before the date of the enactment of this Act,
“(B) any property
acquired before such date of enactment, or
“(C) any item of income,
loss, deduction, or credit taken into account before such date of
enactment, and
“(2) the treatment
of such transaction, property, or item under such provision would
(without regard to the amendments or repeals made by such subsection)
affect the liability for tax for periods ending after such date of
enactment,
“nothing in the amendments
or repeals made by this section shall be construed to affect the treatment
of such transaction, property, or item for purposes of determining
liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2017
AMENDMENTS
Amendments by Pub.
L. 115-97, Sec. 14102(e), effective for transfers after
December 31, 2017.
Amendment by Pub.
L. 115-97, Sec. 14221(b)(1), effective for transfers in
taxable years beginning after December 31, 2017.
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendment by Sec. 406(a) of Pub.
L. 108-357 effective for amounts treated as received pursuant
to section 367(d)(2) of the Internal
Revenue Code of 1986 on or after August 5, 1997.
EFFECTIVE DATE OF 1999 AMENDMENTS
Amendment by Sec. 532(c) of Pub.
L. 106-170 effective for any instrument held, acquired,
or entered into, any transaction entered into, and supplies held or
acquired on or after the date of the enactment of this Act [Enacted:
Dec. 17, 1999].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 1131 of Pub.
L. 105-34 effective on the date of the enactment of this
Act [Aug. 5, 1997].
EFFECTIVE DATE OF 1990 AMENDMENTS
Amendment by Pub. L.
101-508 effective as if included in the provision of the
Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such amendment
relates, see section 11702(j) of Pub. L.
101-508, set out as a note under section 59 of this title.
EFFECTIVE DATE OF 1988 AMENDMENTS
Section 1006(e)(13)(B) of Pub.
L. 100-647 provided that: ‘The amendment made by subparagraph
(A) (amending this section) shall apply to exchanges on or after June
21, 1988, except that such amendment shall not apply to any exchange
pursuant to any reorganization for which a plan of reorganization
was adopted before June 21, 1988.’
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by section 631(d)(1) 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 1231(e)(2) of Pub. L. 99-514 applicable to taxable years
beginning after Dec. 31, 1986, but only with respect to transfers
after Nov. 16, 1985, or licenses granted after such date, or before
such date with respect to property not in existence or owned by taxpayer
on such date, except that for purposes of section 936(h)(5)(C) of
this title, such amendment applicable to taxable years beginning after
Dec. 31, 1986, without regard to when the transfer or license was
made, see section 1231(g)(2) of Pub. L. 99-514,
set out as a note under section 936 of this title.
Amendment by section 1810(g)(1), (4) 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.
EFFECTIVE DATE OF 1984 AMENDMENTS
Section 131(g) 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 amendments made by this
section (enacting section 6038B of this title, amending this section
and sections 1492, 1494, 6501, and 7482 of this title, and repealing
section 7477 of this title) shall apply to transfers or exchanges
after December 31, 1984, in taxable years ending after such date.
‘(2) Special rule for certain transfers of intangibles.
-
‘(A) In general. - If, after
June 6, 1984, and before January 1, 1985, a United States person transfers
any intangible property (within the meaning of section 936(h)(3)(B) of the Internal Revenue
Code of 1986 (formerly I.R.C.
1954)) to a foreign corporation or in a transfer
described in section 1491, such transfer shall be treated for purposes
of sections 367(a), 1492(2), and 1494(b) of such Code as pursuant
to a plan having as 1 of its principal purposes the avoidance of Federal
income tax.
‘(B) Waiver. - Subject to such
terms and conditions as the Secretary of the Treasury or his delegate
may prescribe, the Secretary may waive the application of subparagraph
(A) with respect to any transfer.
‘(3) Ruling request before march 1, 1984. - The
amendments made by this section (and the provisions of paragraph (2)
of this subsection) shall not apply to any transfer or exchange of
property described in a request filed before March 1, 1984, under
section 367(a), 1492(2), or 1494(b)
of the Internal Revenue Code of 1986 (as in effect before
such amendments).'
EFFECTIVE DATE OF 1982 AMENDMENTS
Amendment by Pub. L. 97-248 applicable
to taxable years ending after Aug. 14, 1982, see section 213(e)(3)
of Pub. L. 97-248, set out as a
note under section 936 of this title.
EFFECTIVE DATE OF 1976 AMENDMENTS
Section 1042(e) of Pub.
L. 94-455, as amended by Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095, provided that:
‘(1) The amendments made by this section (other
than by subsection (d)) (amending this section and sections 751 and
1248 of this title) shall apply to transfers beginning after October
9, 1975, and to sales, exchanges, and distributions taking place after
such date. The amendments made by subsection (d) (enacting section
7477 of this title and amending sections 7476 and 7482 of this title)
shall apply with respect to pleadings filed with the Tax Court after
the date of the enactment of this Act (Oct. 4, 1976) but only with
respect to transfers beginning after October 9, 1975.
‘(2) In the case of any exchange described in section 367 of the Internal Revenue Code of
1986 (formerly I.R.C. 1954)
(as in effect on December 31, 1974) in any taxable year beginning
after December 31, 1962, and before the date of the enactment of this
Act (Oct. 4, 1976), which does not involve the transfer of property
to or from a United States person, a taxpayer shall have for purposes
of such section until 183 days after the date of the enactment of
this Act (Oct. 4, 1976) to file a request with the Secretary of the
Treasury or his delegate seeking to establish to the satisfaction
of the Secretary of the Treasury or his delegate that such exchange
was not in pursuance of a plan having as one of its principal purposes
the avoidance of Federal income taxes and that for purposes of such
section a foreign corporation is to be treated as a foreign corporation.'
EFFECTIVE DATE OF 1971 AMENDMENTS
Section 1(c) of Pub. L.
91-681, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095, provided that: ‘The amendments made by this
section (amending this section and section 1492 of this title) shall
apply to transfers made after December 31, 1967; except that sections
367(d) and 1492 of the Internal Revenue
Code of 1986 (formerly I.R.C.
1954) (as amended by this section) shall apply only
with respect to transfers made after December 31, 1970.'
APPLICABILITY OF SUBSECTION (e)(2)
Section 1006(e)(13)(C) of Pub.
L. 100-647 provided that: ‘Section 367(e)(2) of the 1986
Code (as amended by the Reform Act (Pub.
L. 99-514)) shall not apply in the case of any corporation
completely liquidated before June 10, 1987, into a corporation organized
in a country which has an income tax treaty with the United States.'
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 (Sec. 1101-1147 and 1171-1177)
or title XVIII (Sec. 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.
