SUBTITLE E. Alcohol, Tobacco, and Certain Other Excise Taxes..

SUBTITLE F. Procedure and Administration.....

733

877

SUBTITLE G. The Joint Committee on Internal Revenue Taxation.......

APPENDIX..

1103

1107

SUBTITLE A. Income Taxes__.

1

CHAPTER 1. Normal Taxes and Surtaxes___

CHAPTER 2. Tax on Self-Employment Income..

CHAPTER 3. Withholding of Tax on Nonresident Aliens and Foreign

Corporations and Tax-Free Covenant Bonds...

1

443

453

CHAPTER 4. Rules Applicable to Recovery of Excessive Profits on

Government Contracts___.

457

CHAPTER 5. Tax on Transfers to Avoid Income Tax.

463

CHAPTER 23. Federal Unemployment Tax Act..

553

CHAPTER 24. Collection of Income Tax at Source on Wages.

571

CHAPTER 39. Regulatory Taxes_

CHAPTER 40. General Provisions Relating to Occupational Taxes..

SUBTITLE E. Alcohol, Tobacco, and Certain Other Excise Taxes_

CHAPTER 51. Distilled Spirits, Wines, and Beer..

CHAPTER 52. Tobacco, Cigars, Cigarettes, and Cigarette Papers and

Tubes..

CHAPTER 53. Machine Guns and Certain Other Firearms..

SUBTITLE F. Procedure and Administration..

CHAPTER 61. Information and Returns__

731

733

733

849

867

877

877

CHAPTER 68. Additions to the Tax, Additional Amounts, and Assess-

! ! ! ! ! ! ! ! !

657

661

669

673

683

CHAPTER 74. Closing Agreements and Compromises..

CHAPTER 75. Crimes, Other Offenses, and Forfeitures..

CHAPTER 76. Judicial Proceedings.

CHAPTER 77. Miscellaneous Provisions....

CHAPTER 78. Discovery of Liability and Enforcement of Title.
CHAPTER 79. Definitions__.

CHAPTER 80. General Rules...

SUBTITLE G. The Joint Committee on Internal Revenue Taxation__
CHAPTER 91. Organization and Membership of the Joint Committee.
CHAPTER 92. Powers and Duties of the Joint Committee...

APPENDIX.

1103
1105
1107

1019

1021

ויווס

1103

SUBTITLE A-INCOME TAXES

CHAPTER 1. Normal Taxes and Surtaxes.

SUBCHAPTER A. Determination of tax liability.

Part I. Tax on individuals.

Sec. 1. Tax imposed...

Sec. 2. Tax in case of joint return or return of sur-

viving spouse.-

Sec.

3. Optional tax if adjusted gross income is less

than $5,000...

Sec. 4. Rules for optional tax__

Sec. 5. Cross references relating to tax on individuals.

Part II. Tax on corporations.

Sec. 11. Tax imposed....

Sec. 12. Cross references relating to tax on corpora-

tions____

Part III. Changes in rates during a taxable year.

2 5

577

8

8

Sec. 21. Effect of changes.

9

Part IV. Credits against tax.

Sec. 31. Tax withheld on wages..

9

Sec. 32. Tax withheld at source on nonresident aliens

and foreign corporations and on tax-free

covenant bonds..

10

Sec. 33. Taxes of foreign countries and possessions of

the United States..

10

Sec. 34. Dividends received by individuals..

Sec. 35. Partially tax-exempt interest received by

10

9 99

Sec. 36. Credits not allowed to individuals paying op-

tional tax or taking standard deduction.___

223

Sec. 37. Retirement income..

Sec. 38. Overpayments of tax..

SUBCHAPTER_B. Computation of taxable income.

Part I. Definition of gross income, adjusted gross income, and

Sec. 71. Alimony and separate maintenance payments.

Sec. 72. Annuities; certain proceeds of endowment and

life insurance contracts..

Sec. 76. Mortgages made or obligations issued by

joint-stock land banks....

Sec. 77. Commodity credit loans---

CHAPTER 1. Normal Taxes and Surtaxes-Continued

SUBCHAPTER B. Computation of taxable income-Continued

Part III. Items specifically excluded from gross income.

Sec. 101. Certain death benefits..

Sec. 102. Gifts and inheritances..

Sec. 103. Interest on certain governmental obligations_

Sec. 104. Compensation for injuries or sickness....

Sec. 105. Amounts received under accident and health

plans...

Sec. 106. Contributions by employer to accident and

health plans---

Sec. 107. Rental value of parsonages.

Sec. 108. Income from discharge of indebtedness - -

Sec. 109. Improvements by lessee on lessor's property..

Sec. 110. Income taxes paid by lessee corporation...

Sec. 111. Recovery of bad debts, prior taxes, and de-

linquency amounts..........

Sec. 112. Certain combat pay of members of the Armed

Forces..

Sec. 113. Mustering-out payments for members of the

Armed Forces _ _

Sec. 114. Sports programs conducted for the American

National Red Cross---.

Sec. 115. Income of States, municipalities, etc...

Sec. 116. Partial exclusion of dividends received by in-

dividuals..

Sec. 117. Scholarships and fellowship grants..

Sec. 118. Contributions to the capital of a corporation_

Sec. 119. Meals or lodging furnished for convenience of

Sec. 121. Cross references to other acts..

37

38

Sec. 142. Individuals not eligible for standard deduc-

tion...

38

Sec. 143. Determination of marital status.

Sec. 144. Election of standard deduction_

38

Sec. 145. Cross reference..

39

employer..

Part IV. Standard deduction for individuals.

Sec. 141. Standard deduction_.

Part V. Deductions for personal exemptions.

Sec. 151. Allowance of deductions for personal exemp-

tions.

Sec. 152. Dependent defined.

Sec. 153. Determination of marital status.

Sec. 154. Cross references__

Part VI. Itemized deductions for individuals and corporations.

Sec. 161. Allowance of deductions.

Sec. 162. Trade or business expenses-

Sec. 163. Interest..

Sec. 164. Taxes.

Sec. 165. Losses..

Sec. 166. Bad debts.

Sec. 167. Depreciation..

Sec. 172. Net operating loss deduction.

Sec. 173. Circulation expenditures-

Sec. 174. Research and experimental expenditures..

Soil and water conservation expenditures...

68

Sec. 176. Payments with respect to employees of certain

foreign corporations--

Sec. 177. Trademark and trade name expenditures...

Sec. 178. Depreciation or amortization of improvements

made by lessee on lessor's property---

Sec. 179. Additional first-year depreciation allowance

for small business__

Sec. 180. Expenditures by farmers for fertilizer, etc.---

51

55

57

62

64

68

70

71

CHAPTER 1. Normal Taxes and Surtaxes-Continued

SUBCHAPTER B. Computation of taxable income-Continued

Part VII. Additional itemized deductions for Individuals.

Sec. 211. Allowance of deductions____

Sec. 212. Expenses for production of income.

Sec. 213. Medical, dental, etc., expenses...

Sec. 214. Expenses for care of certain dependents....

Sec. 215. Alimony, etc., payments----

Sec. 216.

Amounts representing taxes and interest paid

to cooperative housing corporation____

Sec. 217. Cross references..

Part VIII. Special deductions for corporations.

Sec. 241. Allowance of special deductions.

Sec. 242. Partially tax-exempt interest__

Sec. 243. Dividends received by corporations--

Sec. 244. Dividends received on certain preferred stock.

Sec. 245. Dividends received from certain foreign cor-

porations

Page

75

75

76

78

79

79

80

80

80

80

81

81

Sec. 246. Rules applying to deductions for dividends

received..

82

Sec. 247. Dividends paid on certain preferred stock of

public utilities__

83

Part IX. Items not deductible.

income.

Sec. 248. Organizational expenditures-

Sec. 261. General rule for disallowance of deductions___

Sec. 262. Personal, living, and family expenses.

Sec. 263. Capital expenditures..

Sec. 264.

Certain amounts paid in connection with in-

surance contracts..

Sec. 265. Expenses and interest relating to tax-exempt

Sec. 266. Carrying charges..

Sec. 267. Losses, expenses, and interest with respect to

transactions between related taxpayers..

84

85

85

85

86

86

86

86

Sec. 268. Sale of land with unharvested crop..

Sec. 269. Acquisitions made to evade or avoid income

Sec. 270. Limitation on deductions allowable to indi-

viduals in certain cases.

Sec. 273. Holders of life or terminable interest..

SUBCHAPTER C. Corporate distributions and adjustments.

Part I. Distributions by corporations.

Subpart A. Effects on recipients.

Sec. 301. Distributions of property-.

Sec. 302. Distributions in redemption of stock.

Sec. 303. Distributions in redemption of stock to pay

death taxes..

Sec. 304.

Redemption through use of related corpora-

tions.

Sec. 305. Distributions of stock and stock rights....

Sec. 306. Dispositions of certain stock...

Sec. 307. Basis of stock and stock rights acquired in dis-

Subpart B. Effects on corporation.

92

94

96

97

98

99

101

Sec. 311. Taxability of corporation on distribution_____

Sec. 312. Effect on earnings and profits---.

102

103

Subpart C. Definitions; constructive ownership of stock.

Sec. 316. Dividend defined.

Sec. 331. Gain or loss to shareholders in corporate liqui-

Sec. 332. Complete liquidations of subsidiaries..

Sec. 333, Election as to recognition of gain in certain

CHAPTER 1. Normal Taxes and Surtaxes-Continued

SUBCHAPTER C. Corporate distributions and adjustments-Con.

Part II. Corporate liquidations-Continued

Subpart B. Effects on corporation.

Sec. 336. General rule.____

Sec. 337. Gain or loss on sales or exchanges in connec-

tion with certain liquidations.

Page

114

114

Sec. 338.

Effect on earnings and profits...

116

Subpart C. Collapsible corporations; foreign personal hold-

ing companies.

Sec. 341. Collapsible corporations...

116

companies

Sec. 342. Liquidation of certain foreign personal holding

Subpart D. Definition.

-

Sec. 346. Partial liquidation defined.

Part III. Corporate organizations and reorganizations.

Subpart A. Corporate organizations.

Sec. 351. Transfer to corporation controlled by trans-

feror__

Subpart B. Effects on shareholders and security holders.

Sec. 354. Exchanges of stock and securities in certain

reorganizations...

123

123

124

125

Sec. 355. Distribution of stock and securities of a con-

trolled corporation...

Subpart C. Effects on corporation.

Sec. 361. Nonrecognition of gain or loss to corpora-

Sec. 371. Reorganization in certain receivership and

bankruptcy proceedings-----

134

Sec. 372. Basis in connection with certain receivership

and bankruptcy proceedings----

136

Sec. 373.

Loss not recognized in certain railroad reor-

ganizations...

137

Sec. 374. Gain or loss not recognized in certain railroad

reorganizations_ _ _

138

Part V. Carryovers.

Sec. 381. Carryovers in certain corporate acquisitions__

Sec. 382. Special limitations on net operating loss

Sec. 394. Effective date of part V...

Sec. 395. Special rules for application of this sub-

chapter...

SUBCHAPTER D. Deferred compensation, etc.

149

149

Part I. Pension, profit-sharing, stock bonus plans, etc.

Sec. 401. Qualified pension, profit-sharing, and stock

bonus plans..

150

Sec. 402. Taxability of beneficiary of employees' trust..

Sec. 403. Taxation of employee annuities__