The following content is former OneLine Tax Code lines which no longer exist due to alterations in 26 USC. There are cases where official government publications, such as Internal Revenue Bulletins, refer to portions of the tax code which are not currently enacted, so it is important to have some reference the old code.

Less importantly, since I try to do everything that I can to prevent my hard work from going to waste, rather than simply delete code which is no longer current, I keep such content here. In this manner, you can think of this as an Archive, or a way to see how the OneLine Tax Code has evolved.

·§1(h)(1)(C)15% of adjusted net capital gain in excess of taxed amount by (B);

·§23(b)(4)Credit by (a) for any TY where §26(a)(2) doesn't apply is limited to excess of—
·§23(b)(4)(A)the sum of regular tax liability (§26(b)) plus tax imposed by §55, over
·§23(b)(4)(B)the sum of credits allowable under §§21 - 26 & 27 for the taxable year.

·§24(a)This paragraph explains the credit amounts and qualifications.
·§24(a)(1)A credit against tax is allowed to each qualifying child for a certain amount.
·§24(a)(2)For (1), the certain amount is set by a table based on tax years. Minimum $700.
·§24(c)(1)The term means any individual if all the following apply:
·§24(c)(1)(A)the taxpayer is allowed a deduction (§151) with respect to the individual.
·§24(c)(1)(B)such individual is not age 17 at close of calendar year in which tax year ends.
·§24(c)(1)(C)such individual bears a relationship to the taxpayer as in §32(c)(3)(B).
·§24(b)(3)Credit by (a) for any TY where §26(a)(2) doesn't apply is limited to excess of—
·§24(b)(3)(A)the sum of regular tax liability (§26(b)) plus tax imposed by §55, over
·§24(b)(3)(B)credits by §§21 - 26 & 27 (except §§25A(i), 25B, 25D, 30, &c.) for the TY.
·§25(e)(1)(C)"Applicable tax limit" is limitation by §26(a) reduced by sum of most credits.
·§25(e)(1)(C)The "applicable tax limit" is, regarding §26, the limit imposed by such—
·§25(e)(1)(C)(i)(a)(2) (if applicable), less credits by §§21 - 26 (except §§23, 25D, 1400C), or
·§25(e)(1)(C)(ii)(a)(1), less credit by §§21 - 26 (except §§24, 25A(i), 25B, 25D, 30, &c.).
·§25A(i)(5)If §26(a)(2) doesn't apply, (a) credit related to (b) is limited to excess of—
·§25A(i)(5)(A)the sum of regular tax liability by §26(b) plus tax imposed by §55, over
·§25A(i)(5)(B)credits under §§21 - 26 (except (i), 25D, & 30D) and 27 for the TY.
·§25B(b)The applicable percentage is determined by this table. Maximum is 50%.
·§25B(h)This section does not apply to tax years beginning after 20061231.
·§25B(g)Credit by (a) for any TY where §26(a)(2) doesn't apply is limited to excess of—
·§25B(g)(1)the sum of regular tax liability (§26(b)) plus tax imposed by §55, over
·§25B(g)(2)total credit by §§21 - 26 & 27 (except §§25A(i), 25D, 30, &c.) for the TY.
·§25C(a)Credit is allowed against tax imposed by chapter 1 equal to 30% of the sum of—
·§25C(a)(1)payments for qualified energy efficiency improvements installed in TY, &
·§25C(a)(2)amount of residential energy property expenditures paid by taxpayer in TY.
·§25C(b)Credit by §25C for TYs starting in 2009 and 2010 is limited to $1500.
·§25C(c)(4)(B) or (C) of (2) is met if such component is within a U factor & SHGC of 0.30.
·§25C(d)(3)(C)a geothermal pump which in the case of a—
·§25C(d)(3)(C)(i)closed loop product, has EER of at least 14.1, and a COP of at least 3.3,
·§25C(d)(3)(C)(ii)open loop product, has EER of at least 16.2, and a COP of at least 3.6, and
·§25C(d)(3)(C)(iii)direct expansion product, has EER of at least 15, and a COP of at least 3.5,
·§25C(d)(4)"Qualified natural gas, propane, and oil furnace and hot water blowers".
·§25C(d)(4)(A)A natural gas furnace with annual fuel utilization of 95% or more is qualified.
·§25C(d)(4)(B)Natural gas hot water boiler with 90% or more of such utilization is qualified.
·§25C(d)(4)(C)A propane furnace with annual fuel utilization of 95% or more is qualified.
·§25C(d)(4)(D)Propane hot water boiler with 90% or more of such utilization is qualified.
·§25C(d)(4)(E)An oil furnace with 90% or more of such utilization is qualified.
·§25C(d)(4)(F)An oil hot water boiler with 90% or more of such utilization is qualified.
·§25D(b)(1)Credit by (a) (without accounting (c)) for any TY is limited to expenditures of—
·§25D(b)(1)(A)$2000 for any qualified solar water heating property,
·§25D(b)(1)(B)$500 for each ½KW of capacity of fuel cell property (§48(c)(1)),
·§25D(b)(1)(C)$500 for each ½KW of capacity (up to $4K) of wind turbines, and
·§25D(b)(1)(D)$2000 for any qualified geothermal heat pump property.
·§25D(c)This subsection sets the carryfoward of unused credit.
·§25D(c)(1)Excess of (a) over applicable limitation by §26(a)(2) is carried to next TY.
·§25D(c)(2)Excess of (a) over §26(a)(1), less certain credits by §§21 - 26 is so carried.
·§25D(e)(4)(A)Maximum expenditures accounted by (a) for all individuals for the unit is—
·§25D(e)(4)(A)(i)$6667 for any qualified solar water property expenditures,
·§25D(e)(4)(A)(ii)$1667 for each ½KW of capacity of qualified §48(c)(1) property expenditures,
·§25D(e)(4)(A)(iii)$1667 for each ½KW of capacity of wind turbine property expenditures, and.
·§25D(e)(4)(A)(iv)$6667 for any qualified geothermal heat pump property expenditures.
·§25D(e)(4)(C)(A) and (B) are applied separately to costs by (1) - (3) of (d).
·§25D(e)(9)Subsidized energy financing (§48(a)(4)(C)) doesn't apply to figure expenditures.
·§25D(c)A limitation based on amount of tax and a carryforward of unused credit.
·§25D(c)(1)If §26(a)(2) doesn't apply, (a) credit for the TY is limited to the excess of—
·§25D(c)(1)(A)the sum of regular tax liability by §26(b) plus tax imposed by §55, over
·§25D(c)(1)(B)the sum of credits by subpart B (except §25D) and §27 for the taxable year.
·§25D(c)(2)This paragraph sets the carryforward of unused credit.
·§25D(c)(2)(A)If §26(a)(2) applies, excess of (a) over such limit is added to (a) for next TY.
·§25D(c)(2)(B)If (A) doesn't apply, excess of (a) over (1) limit is added to (a) for next TY.
·§30(b)(2)For vehicles placed in service after 20031231, credit of (a) is reduced by—
·§30(b)(2)(A)25% of property placed in service in 2004,
·§30(b)(2)(B)50% of property placed in service in 2005, and
·§30(b)(2)(C)75% of property placed in service in 2006.
·§30This section discusses the credit for qualified electric vehicles.
·§30(a)Credit is 10% of cost of any qualified electric vehicle placed in service.
·§30(b)This subsection sets limitations.
·§30(b)(1)Credit by (a) for any vehicle is limited to $4000.
·§30(b)(2)Credit by (a) is reduced 75% for vehicles placed in service after 20051231.
·§30(b)(3)Credit of (a) for any taxable year shall not exceed excess of—
·§30(b)(3)(A)regular tax reduced by sum of credits allowed by subpart A and §27 over
·§30(b)(3)(B)the tentative minimum tax for the taxable year.
·§30(c)This subsection defines a "qualified electric vehicle".
·§30(c)(1)A qualified electric vehicle is any motor vehicle—
·§30(c)(1)(A)which is powered by an electric motor sourced from batteries, fuel cells, &c.,
·§30(c)(1)(B)the original use of which commences with the taxpayer, and
·§30(c)(1)(C)which is acquired for use by the taxpayer and not for resale.
·§30(c)(2)A "motor vehicle" is made primarily for use on roads and has at least 4 wheels.
·§30(d)This subsection sets special rules.
·§30(d)(1)Basis of property is reduced by any credit allowed (without accounting (b)(3)).
·§30(d)(2)Sec. sets recapture for any property which ceases to be eligible for credit.
·§30(d)(3)No credit allowed for any property under §50(b) or cost accounted by §179.
·§30(d)(4)Credit by (a) is not allowed if taxpayer elects to not have §30 apply.
·§30(e)This section does not apply to property placed in service after 20061231.
·§30(c)(2)This paragraph sets rules for personal credit.
·§30(c)(2)(A)Credit by (a) (after (1)) is a credit allowed under subpart A for such TY.
·§30(c)(2)(B)If §26(a)(2) doesn't apply, credit by (a) for a TY is limited to any excess of—
·§30(c)(2)(B)(i)the sum of regular tax liability by §26(b) plus tax imposed by §55, over
·§30(c)(2)(B)(ii)the sum of credits under subpart A (except §§25D, 30, & 30D) and §27.
·§30B(g)(2)Credit by (a) for any TY is limited to any excess of—
·§30B(g)(2)(A)liability by §26(b) reduced by credits by §§21 - 26, 27, & 30, over
·§30B(g)(2)(B)the tentative minimum tax for the taxable year.
·§30B(g)(2)This paragraph sets rules for personal credit.
·§30B(g)(2)(A)Credit by (a) (after (1)) is a credit allowed under subpart A for such TY.
·§30B(g)(2)(B)If §26(a)(2) doesn't apply, credit by (a) for a TY is limited to any excess of—
·§30B(g)(2)(B)(i)the sum of regular tax liability by §26(b) plus tax imposed by §55, over
·§30B(g)(2)(B)(ii)the sum of credits under §§21 - 26 & 27 (except §§25D, 30, 30B, & 30D).
·§30C(c)Definition of "qualified alternative fuel vehicle refueling property".
·§30C(c)(1)Such property has the same meaning as given by §179A(d), but only for fuel—
·§30C(c)(1)(A)at least 85% of which is ethanol, natural gas, hydrogen, &c., or
·§30C(c)(1)(B)any mixture with 20% biodiesel (§40A(d)(1)) or more & diesel fuel (§4083(a)(3)),
·§30C(c)(2)§179A(d)(1) doesn't apply to property installed on a principal residence (§121).
·§30DThis section discusses new qualified plug-in electric drive motor vehicles.
·§30D(a)This subsection sets the allowance of credit against chapter 1 tax.
·§30D(a)(1)(2) amount regarding each (c) vehicle put in service in a TY is such a credit.
·§30D(a)(2)For (1), the applicable amount is the sum of—
·§30D(a)(2)(A)$2500, plus
·§30D(a)(2)(B)$417 per KWH of traction battery capacity in excess of 4 KWH.
·§30D(b)This subsection sets limitations.
·§30D(b)(1)Credit by (a) allowed under (a)(2) is limited to, regarding a vehicle by (c)—
·§30D(b)(1)(A)$7500, if such vehicle's weight is within 10000 pounds,
·§30D(b)(1)(B)$10000, if such vehicle's weight is between 10001 and 14000 pounds,
·§30D(b)(1)(C)$12500, if such vehicle's weight is between 14001 and 26000 pounds, and
·§30D(b)(1)(D)$15000, if such vehicle's weight exceeds 26000 pounds.
·§30D(b)(2)Limitation on number of vehicles and light trucks eligible for credit.
·§30D(b)(2)(A)If (c) vehicle is sold in period by (B), apply percentage by (C) to (a) credit.
·§30D(b)(2)(B)Phaseout period starts 2nd quarter after 250K (c) vehicles have sold after 2008.
·§30D(b)(2)(C)For (A), the applicable percentage is—
·§30D(b)(2)(C)(i)50% for the first 2 calendar quarters of the phaseout period,
·§30D(b)(2)(C)(ii)25% for the 3rd and 4th calendar quarters of the phaseout period, and
·§30D(b)(2)(C)(iii)0% for each calendar quarter thereafter.
·§30D(b)(2)(D)Rules by §30B(f)(4) apply for purposes of (b).
·§30D(c)For §30D, a "new qualified plug-in electric dive motor vehicle" is a vehicle—
·§30D(c)(1)which is propulsed using a traction battery with at least 4 KWH of capacity,
·§30D(c)(2)which uses an offboard source of energy to recharge such battery,
·§30D(c)(3)which (if such vehicle weighs up to 8500 lbs.) is ceritified under PL 88-206, &
·§30D(c)(3)(A)if such weight is within 6000 lbs., meets the Bin 5 Tier II emission standard, &
·§30D(c)(3)(B)if such weight is between 6001 and 8500, the Bin 8 Tier II emission standard,
·§30D(c)(4)the original use of which commences with the taxpayer,
·§30D(c)(5)which is acquired for use or lease by the taxpayer and not for resale, and
·§30D(c)(6)whcih is made by a manufacturer.
·§30D(d)This subsection sets application with other credits.
·§30D(d)(1)Credit by (a) attributable to depreciable property is treated as §38(b) credit.
·§30D(d)(2)This paragraph sets rules for personal credit.
·§30D(d)(2)(A)For 26 USC, credit by (a) (after applying (1)) is allowed under subpart A.
·§30D(d)(2)(B)If §26(a)(2) doesn't apply, credit by (a) (after applying (1)) is limited to—
·§30D(d)(2)(B)(i)the sum of regular tax liability (as by §26(b)) plus §55 tax which exceeds
·§30D(d)(2)(B)(ii)the sum of credits allowable under subpart A (except §23 & §25D) and §27.
·§30D(e)This subsection sets other definitions and special rules.
·§30D(e)(1)A "motor vehicle" is defined by §30(c)(2).
·§30D(e)(2)"Passenger automobile", "manufacturer", &c., are by title II of PL 88-206.
·§30D(e)(3)Traction battery capcity is measured in KWH from 100% charge to 0% charge.
·§30D(e)(4)Basis of property subject to credit by (a) is reduced by amount of such credit.
·§30D(e)(5)Any other chapter 1 credit for vehicle by (c) is reduced by credit by (a).
·§30D(e)(6)If use meets (3) or (4) of §50(b), vehicle's seller has put vehicle in service.
·§30D(e)(7)No credit by (a) is allowed to property subject to §50(b)(1) or §179.
·§30D(e)(8)Sec. may recapture credit by (a) if property ceases to be eligible for credit.
·§30D(e)(9)No credit by (a) is allowed if the taxpayer elects for §30D to not apply.
·§30D(e)(10)To be eligible for credit by §30D, a motor vehicle must be in compliance with—
·§30D(e)(10)(A)the applicable rules by PL 88-206 (unless §209(b) of such PL applies), and
·§30D(e)(10)(B)the motor vehicle safety provisions of §§30101 - 30169 of 49 USC.
·§30D(f)This subection sets rules for regulations.
·§30D(f)(1)Except as set by (2), Sec. sets regulations as necessary to carry out §30D.
·§30D(f)(2)Vehicle eligibility is determined by Sec. with Sec. of Transportation and EPA.
·§30D(g)§30D doesn't apply to property purchased after 20141231.
·§30D(c)(2)This paragraph sets rules for personal credit.
·§30D(c)(2)(A)Credit by (a) (after (1)) is a credit allowed under subpart A for such TY.
·§30D(c)(2)(B)If §26(a)(2) doesn't apply, credit by (a) for a TY is limited to any excess of—
·§30D(c)(2)(B)(i)the sum of regular tax liability by §26(b) plus tax imposed by §55, over
·§30D(c)(2)(B)(ii)the sum of credits under subpart A (except §§25D & 30D) and §27.
·§32(c)(1)(C)This subparagraph explains the rules when 2 or more individuals claim a child.
·§32(c)(1)(C)(i)Child claimed by two or more individuals is qualifying child for taxpayer who—
·§32(c)(1)(C)(i)(I)is a parent of the child, or
·§32(c)(1)(C)(i)(II)if (I) does not apply, the taxpayer with the highest AGI for the tax year.
·§32(c)(1)(C)(ii)If parents individually claim child on separate returns, child qualifies for—
·§32(c)(1)(C)(ii)(I)the parent with child resided for longest period of time in tax year, or
·§32(c)(1)(C)(ii)(II)if child resides with both parents equally, the parent with the higher AGI.
·§32(c)(3)(A)A qualifying child is, with respect to any taxpayer for a TY, an individual—
·§32(c)(3)(A)(i)who bears a relationship to taxpayer as described in (B),
·§32(c)(3)(A)(ii)who has the same main home as taxpayer for more than half the year, and
·§32(c)(3)(A)(iii)who meets the age requirements of (C).
·§32(c)(3)(B)To qualify, a child must meet the relationship test.
·§32(c)(3)(B)(i)An individual bears a relationship to the taxpayer if such individual is—
·§32(c)(3)(B)(i)(I)a son, daughter, stepchild, or a descendant of any such person,
·§32(c)(3)(B)(i)(II)a sibling, stepsibling, or descendent thereof, given taxpayer's support, or
·§32(c)(3)(B)(i)(III)an eligible foster child of the taxpayer.
·§32(c)(3)(B)(ii)(i) does not apply to married children unless deduction is allowed (§151).
·§32(c)(3)(B)(iii)An "eligible foster child" is a person not meeting (I) or (II) of (i) who—
·§32(c)(3)(B)(iii)(I)is placed with the taxpayer by an authorized placement agency, and
·§32(c)(3)(B)(iii)(II)the taxpayer cares for as the taxpayer's own child.
·§32(c)(3)(B)(iv)A child who is legally adopted is treated as a child by blood.
·§32(c)(3)(C)An individual meets the age requirements for the credit if such person—
·§32(c)(3)(C)(i)has not reached age 19 as of the end of the calendar year in the tax year,
·§32(c)(3)(C)(ii)is a student (§151(c)(4)) who has not reached age 24, or
·§32(c)(3)(C)(iii)becomes permanently disabled (§22(e)(3)) at any time during the tax year.
·§32(c)(3)(E)The requirements of (A)(ii) is met only if principal place of abode is in US.
·§32(g)This subsection sets coordination with advance payments of earned income credit.
·§32(g)(1)Chapter 1 tax is increased by aggregate amount of payments made under §3507.
·§32(g)(2)Increase by (1) is not considered tax imposed for purposes of determining (a).
·§34(a)(1)under §6420 for gas used on a farm for farming purposes (ignoring (§6420(g))),
·§34(a)(2)under §6421 with respect to gas used during the tax year—
·§34(a)(2)(A)other than as a fuel in a highway vehicle, or
·§34(a)(2)(B)in vehicles while furnishing certain public transportation service, and
·§34(a)(3)by §6427 for fuels used for nontaxable purposes or resold (ignoring (§6427(k))).
·§35(a)Individual may claim 65% of insurance coverage cost for months by (b) as credit.
·§35(c)(2)(1)(A) person has at least 1 month of trade readjustment allowance by PL 93-618.
·§36B(c)(2)(D)Such term doesn't include month individual has voucher by §10108 of PL 111-148.
·§36B(b)(3)(A)(i)Such rate is 2.8% plus number of percentage points bearing to 7% as—
·§36B(b)(3)(A)(i)(I)household income exceeding 100% of the poverty line for the family size bears to
·§36B(b)(3)(A)(i)(II)the amount equal to 200% of the poverty line for such family size.
·§36B(b)(3)(A)(ii)Such rate is 2% if excess of income over poverty line is between 100% - 133%.
·§36B(b)(3)(A)(iii)After 2014, Sec. adjusts rates by (i) and (ii) to reflect premium growth.
·§40(d)(4)The volume of alcohol includes any denaturant (up to 5% of total) in figuring—
·§40(d)(4)(A)the number of gallons of alcohol to which a credit is allowed under (a), or
·§40(d)(4)(B)the percentage of any mixture which has alcohol for §4041(k) or §4081(c).
·§40(b)(6)(F)Rules similar to rules by (g)(6) apply for purposes of (6).
·§40(b)(6)(G)Credit under (6) requires taxpayer to be a registered producer under §4101.
·§41(f)(3)(A)Taxpayer increases a proportion of expenses & receipts of an acquired business.
·§41(f)(3)(B)Qualified expenses is decreased by related portion disposed by a taxpayer if—
·§41(f)(3)(B)(i)a taxpayer disposes a major portion of any business to which (A) applies, and
·§41(f)(3)(B)(ii)the taxpayer provided the acquiror necessary data for the application of (A).
·§42(b)(1)For qualified low-income buildings put in service in 1987, the percentage is—
·§42(b)(1)(A)9% for new buildings which are not federally subsidized for the TY, or
·§42(b)(1)(B)4% for—
·§42(b)(1)(B)(i)new buildings which are federally subsidized for the TY, and
·§42(b)(1)(B)(ii)existing buildings.
·§42(b)(2)This paragraph sets rules for buildings placed in service after 1987.
·§42(b)(2)(A)For such building, applicable percentage is appropriate rate set for earlier of—
·§42(b)(2)(A)(i)the month in which the building is placed in service, or
·§42(b)(2)(A)(ii)at the election of the taxpayer, in the month which—
·§42(b)(2)(A)(ii)(I)the taxpayer & housing credit agency enter agreement on an allocable amount, or
·§42(b)(2)(A)(ii)(II)tax-exempt obligations are issued, if (h)(4)(B) applies. (ii) is irrevocable.
·§42(b)(2)(B)Percentages must yield, in 10 year period, credit by (a) presently equal to—
·§42(b)(2)(B)(i)70% of the qualified basis of a building by (1)(A), and
·§42(b)(2)(B)(ii)30% of the qualified basis of a building by (1)(B).
·§42(d)(2)(B)(ii)there is at least 10 years between taxpayer's acquisition and later of the date—
·§42(d)(2)(B)(ii)(I)the building was last placed in service, or
·§42(d)(2)(B)(ii)(II)of the most recent nonqualified substantial improvement of the building,
·§42(d)(2)(D)(i)This clause defines a "nonqualified substantial improvement" for (B)(ii).
·§42(d)(2)(D)(i)(I)Such improvement is any as if §167(k) was elected or §168 applied.
·§42(d)(2)(D)(i)(II)The date of improvement is the last day of the 24-month period in (III).
·§42(d)(2)(D)(i)(III)Improvements exceeding 25% of adjusted basis in 2 year period are substantial.
·§42(d)(2)(D)(iii)Definition of related person, &c.
·§42(d)(2)(D)(iii)(I)For (B)(i), swap "10%" for "50%" in §§179(d)(7), 267(b) and 707(b).
·§42(d)(2)(D)(iii)(II)Persons are related if §52 or §§267(b) or 707(b)(1) (adjusted by (I)) applies.
·§42(d)(4)(C)(ii)Maximum increase by (i) is 10% of eligible basis of low-income housing portion.
·§42(d)(5)(B)Basis doesn't include amounts attributable to election made by §167(k).
·§42(d)(6)(A)Secretary may waive (2)(B)(ii) for federally-assisted buildings if needed—
·§42(d)(6)(A)(i)to avert mortgage assignment by property in project to HUD or FHA, or
·§42(d)(6)(A)(ii)to avert claim against Federal mortgage insurance fund. (7)(B) doesn't apply.
·§42(d)(6)(B)For (A), a "federally-assisted building" is one which is mostly operated under—
·§42(d)(6)(B)(i)§8 of the United States Housing Act of 1937 (PL 75-412),
·§42(d)(6)(B)(ii)§§221(d)(3) or 236 of the National Housing Act (PL 73-479), or
·§42(d)(6)(B)(iii)§515 of PL 81-171; such PLs apply as in effect as of 19861022.
·§42(d)(6)(C)A waiver may be granted by (A) regarding a building by (ii) or (iii) of (B) if—
·§42(d)(6)(C)(i)mortgage can be prepaid by certain laws within 1 year after application,
·§42(d)(6)(C)(ii)it is certified that building will not meet requirements if not granted, and
·§42(d)(6)(C)(iii)prepay eligibility without Federal approval is waived by all eligible persons.
·§42(d)(6)(D)(A) may apply to a building acquired from a depository institution in default.
·§42(d)(6)(E)For (A), an "appropriate Federal official" means the Secretary of—
·§42(d)(6)(E)(i)HUD for any building described in (i) or (ii) of (B), and
·§42(d)(6)(E)(ii)Agriculture for any building described in (B)(iii).
·§42(i)(2)(D)A below market Federal loan has an interest rate less than rate by §1274(d)(1).
·§42(i)(2)(E)Rules for building receiving HOME or Native American housing assistance.
·§42(i)(2)(E)(i)Such assistance doesn't apply to (D) if 40% of are within 50% of median income.
·§42(i)(2)(E)(ii)For buildings in city by §142(d)(6), apply (i) by substituting "25%" for "40%".
·§42(j)(6)For building disposition, liability for additional tax is discharged if—
·§42(j)(6)(A)the taxpayer furnishes a bond to the Secretary, meeting requirements, and
·§42(j)(6)(B)the building will operate as low-income for remainder of compliance period.
·§45(d)(2)(B)(ii)credit is multiplied by ratio of thermal content (biomass to total fuel) used, &
·§45D(e)(2)Secretary may declare any area in a census tract as a low-income community if—
·§45D(e)(2)(A)the boundary of such area is continuous,
·§45D(e)(2)(B)the area would meet (1) if it were a census tract, and
·§45D(e)(2)(C)an inadequate access to investment capital exists in the area.
·§45H(d)Reduce the basis of any applicable property by this credit.
·§45H(e)(4)Increase by (B) isn't tax imposed by this chapter for determining credit by §55.
·§45M(b)This subsection sets the applicable amount.
·§45M(b)(1)For (a):
·§45M(b)(1)(A)The amount is the energy savings amount for a dishwasher which—
·§45M(b)(1)(A)(i)is manufactured in 2006 or 2007, and
·§45M(b)(1)(A)(ii)meets Energy Star program requirements in effect for 2007.
·§45M(b)(1)(B)The amount is $100 for clothes washers which—
·§45M(b)(1)(B)(i)are manufactured in 2006 or 2007, and
·§45M(b)(1)(B)(ii)meet Energy Star program requirements in effect in 2007.
·§45M(b)(1)(C)This subparagraph sets the amount for refrigerators.
·§45M(b)(1)(C)(i)The amount is $75 for a refrigerator which—
·§45M(b)(1)(C)(i)(I)is manufactured in 2006, and
·§45M(b)(1)(C)(i)(II)uses between 15% to 20% less kilowatt hours per year than 2001 energy standards.
·§45M(b)(1)(C)(ii)The amount is $125 for a refrigerator which—
·§45M(b)(1)(C)(ii)(I)is manufactured in 2006 or 2007, and
·§45M(b)(1)(C)(ii)(II)uses between 20% to 25% less kilowatt hours per year than 2001 energy standards.
·§45M(b)(1)(C)(iii)The amount is $175 for a refrigerator which—
·§45M(b)(1)(C)(iii)(I)is manufactured in 2006 or 2007, and
·§45M(b)(1)(C)(iii)(II)uses at least 25% less kilowatt hours per year than 2001 energy standards.
·§45M(b)(2)This paragraph sets energy savings amount for (1)(A).
·§45M(b)(2)(A)The energy savings amount is the lesser of—
·§45M(b)(2)(A)(i)the product of—
·§45M(b)(2)(A)(i)(I)$3, and
·§45M(b)(2)(A)(i)(II)100 multiplied by the energy savings percentage, or
·§45M(b)(2)(B)For (A), the energy savings percentage is the ratio of—
·§45M(b)(2)(B)(i)the Energy Star required EF in 2007 minus such EF for 2005, to
·§45M(b)(2)(B)(ii)the Energy Star required EF for dishwashers in 2007.
·§48(c)(4)(B)Credit by (a)(1) for property by (A) is limited to $4K in a TY.
·§49(a)(1)(C)(iii)the amortizable basis of any qualified timber property.
·§51(d)(1)(D)a high-risk youth,
·§51(d)(3)(A)In a food stamp program, at least a 3-month period in 1 year before hiring date.
·§51(d)(5)This paragraph defines a "high-risk youth".
·§51(d)(5)(A)The term means any individual certified by the designated local agency as—
·§51(d)(5)(A)(i)having attained age 18 but not age 25 on the hiring date, and
·§51(d)(5)(A)(ii)having his principal place of abode within an empowerment zone, &c.
·§51(d)(5)(B)Qualified wages don't include payments when such abode is outside of such areas.
·§51(c)(4)(B)(i)20121231, in the case of a qualified veteran, and
·§51(c)(4)(B)(ii)20111231, in the case of any other individual.
·§51ATemporary incentives for employing long-term family assistance recipients.
·§51A(a)For §38, this welfare-to-work credit for the TY is equal to—
·§51A(a)(1)35% of qualified first-year wages for such TY, and
·§51A(a)(2)50% of qualified second-year wages for such TY.
·§51A(b)This subsection defines "qualified wages".
·§51A(b)(1)Such term means wages paid to long-term family assistance recipients.
·§51A(b)(2)"Qualified first-year wages" are within 1-year period starting on 1st work day.
·§51A(b)(3)"Qualified second-year wages" are within 1-year period starting after (2) ends.
·§51A(b)(4)Accountable amounts of (2) and (3) are limited to $10000 per individual per TY.
·§51A(b)(5)This paragraph defines "wages".
·§51A(b)(5)(A)The term is defined by §51(c), ignoring (4) thereof.
·§51A(b)(5)(B)Wages include payments which are excludable from recipient's gross income by—
·§51A(b)(5)(B)(i)§105 (amounts received under accident and health plans),
·§51A(b)(5)(B)(ii)§106 (contributions by employer to accident and health plans),
·§51A(b)(5)(B)(iii)§127 (educational assistance programs), limited to unrelated persons, or
·§51A(b)(5)(B)(iv)§129 (dependent care assistance). (i) and (ii) are limited by §4980B(f)(4).
·§51A(b)(5)(C)If (A) or (B) of §51(h)(1) applies, apply such paragraph by substituting—
·§51A(b)(5)(C)(i)"$10000" for "$6000" in §51(h)(1)(A), and
·§51A(b)(5)(C)(ii)"$833.33" for "$500" in §51(h)(1)(B).
·§51A(c)This subsection defines "long-term family assistance recipients".
·§51A(c)(1)The term means any individual who is certified by agency (§51(d)(11)) as—
·§51A(c)(1)(A)a member of a family in a IV-A program within 1.5 years before hiring date,
·§51A(c)(1)(B)(i)being a member of a family in such program within 1.5 years after enactment, and
·§51A(c)(1)(B)(ii)having a hiring date in 2 years after end of earliest such 1.5 year period, or
·§51A(c)(1)(C)(i)being a member of a family which ceased to be eligible for such program, and
·§51A(c)(1)(C)(ii)having a hiring date in 2 years after date of such ineligibility.
·§51A(c)(2)"Hiring date" is defined by §51(d).
·§51A(d)This subsection sets certain rules to apply.
·§51A(d)(1)Rules of §§51(d)(11), (f), (g), (i), (j), (k), and 52 apply here.
·§51A(d)(2)References to §51 in §§38(b), 280C(a), & 1396(c)(3) also refer to this section.
·§51A(e)Recipients of credit are not considered targeted group members in applying §51.
·§51A(f)This section does not apply to individuals who begin work after 20051231.
·§53(d)(1)(B)(iii)Increase adjusted net minimum tax by amounts excluded solely by §30(b)(3)(B).
·§54(c)(2)sum of credits allowable under part IV (except subpart C, §1400N(l), and §54).
·§54(l)(4)Sec. sets credit to shareholders for bonds held by regulated investment company.
·§54(l)(5)Issuer of bond by (d) must make equal principal payment each outstanding year.
·§54A(c)(1)(B)sum of credits allowable under part IV (other than subparts C and I).
·§54A(h)Sec. sets rules for allocation of (a) and (f) to shareholders of a RIC or REIT.
·§54E(c)(1)National zone academy bond limitation for 2008 and 2009 is $400M. $0 thereafter.
·§56(d)(1)(A)(ii)(I)amount related to sum of NOL carrybacks or carryforward from TY 2001 or 2002, or
·§121(d)(11)§121 applies (accounting decedent's ownership and use) to property sold by—
·§121(d)(11)(A)the estate of a decedent,
·§121(d)(11)(B)any individual who acquired such property from the decedent (as by §1022), and
·§121(d)(11)(C)a trust formed by the decedent which was a trust as by §645(b)(1) before death.
·§139DThis section discusses Indian health care benefits.
·§139D(a)Gross income doesn't include the value of qualified Indian health care benefits.
·§139D(b)For §139D, "qualified Indian health care benefit" is—
·§139D(b)(1)health service provided by the Indian Health Service through a grant or program,
·§139D(b)(2)medical care (or payments therefor) by an Indian tribe for a member thereof,
·§139D(b)(3)coverage under health insurance from an Indian tribe for a member thereof, &
·§139D(b)(4)any other medical care provided by an Indian tribe, &c., for a member thereof.
·§139D(c)This subsection sets definitions for purposes of §139D.
·§139D(c)(1)An "Indian tribe" is by §45A(c)(6).
·§139D(c)(2)A "tribal organization" is by §4(l) of PL 93-638.
·§139D(c)(3)"Medical care" is by §213.
·§139D(c)(4)"Accident and health insurance" or "accident or health plan" is by §105.
·§139D(c)(5)"Dependent" is by §152; disregard such (b)(1), (b)(2), and (d)(1)(B).
·§139D(d)(a) doesn't apply to any benefit by (b) otherwise excluded from gross income.
·§139DAmount of voucher by §10108 of PL 111-148 used to pay health plan is excludable.
·§143(l)(3)(B)A State veterans limit for any year is equal to—
·§143(l)(3)(B)(i)aggregate amount of such bonds issued between 19790101 and 19840622, divided by
·§143(l)(3)(B)(ii)number of years between 1980 & 1984 which State issued qualified veterans bonds.
·§143(l)(4)For (l), a "qualified veteran" is any veteran—
·§143(l)(4)(A)who served on active duty before 19770101, and
·§143(l)(4)(B)who applied for the financing before the later of—
·§143(l)(4)(B)(i)30 years after the last date that the veteran left active service, or
·§148(f)(4)(D)(ii)(II)all bonds issued to make loans to other gov't units are not accounted,
·§149(a)(2)(C)described by §163(f)(2)(B).
·§149(f)(2)(A)Issuer expects 95% or more of proceeds will make loans to ultimate borrowers.
·§151(d)(3)(C)For (3), the "threshold amount" is—
·§151(d)(3)(C)(i)$150000 for a joint return or surviving spouse (as under §2(a)),
·§151(d)(3)(C)(ii)$125000 for a head of household (as under §2(b)),
·§151(d)(3)(C)(iii)$100000 for individuals who are not head of household or married (§7703), and
·§151(d)(3)(C)(iv)$75000 for married persons filing separately; swap "$1250" for "$2500" in (B).
·§151(d)(3)(E)This subparagraph sets a reduction of the phaseout.
·§151(d)(3)(E)(i)For TYs between 2006 and 2009, reduction of (A) is equal to applicable fraction.
·§151(d)(3)(E)(ii)###Applicable fraction is by ###; 2/3 for 2006 & 2007; 1/3 for 2008 & 2009.
·§151(d)(3)(F)(3) doesn't apply to any TY beginning after 20091231.
·§151(d)(4)(B)For TYs beginning after 1991, amounts in (3)(C) are increased by—
·§151(d)(4)(B)(i)such dollar amount, multiplied by
·§151(d)(4)(B)(ii)the cost-of-living adjustment by §1(f)(3); swap "1990" for "1992" in such (B).
·§162(l)(1)This paragraph sets an allowance of a deduction.
·§162(l)(1)(A)For such individuals, an applicable percentage of medical costs can be deducted.
·§162(l)(1)(B)The applicable percentage is based from this table. After 2002, it is 100%.
·§163(f)(2)(A)(iv)is described by (B).
·§163(f)(2)(B)An obligation meets this subparagraph if—
·§163(f)(2)(B)(i)it is designed to ensure that it will only be sold to non-US persons, and
·§163(f)(2)(B)(ii)for obligations not in registered form—
·§163(f)(2)(B)(ii)(I)interest on such obligation is payable only outside the US & its possessions, &
·§163(f)(2)(B)(ii)(II)the obligation's face states that US persons will be subject to limitations.
·§168(e)(8)(E)Such term doesn't include property placed in service after 20091231.
·§168(k)(4)(D)(iv)swap "20110101" for "20120101" in such (A)(iv), and
·§168(k)(4)(D)(v)swap "20100101" for "20110101" in such (A).
·§168(l)(3)Such ethanol is produced by the hydrolysis of certain cellulosic matter.
·§168(l)(5)(B)"20130101" for "20110101" each place it appears therein, and
·§172(b)(1)(H)Swap "5" for "2" in (A)(i) and ignore (F) for NOL in TYs ending in 2001 & 2002.
·§172(b)(1)(H)A carryback for 2008 net operating losses of small businesses.
·§172(b)(1)(H)(i)If business by (iv) elects application of (H) to loss by (ii)—
·§172(b)(1)(H)(i)(I)swap any whole number between 3 and 5 for "2" in (A)(i),
·§172(b)(1)(H)(i)(II)swap a whole number one less than number by (I) for "2" in (E)(ii), and
·§172(b)(1)(H)(i)(III)(F) doesn't apply.
·§172(b)(1)(H)(ii)For (H), the "applicable 2008 net operating loss" is—
·§172(b)(1)(H)(ii)(I)the taxpayer's net operating loss for any TY ending in 2008, or
·§172(b)(1)(H)(ii)(II)if elected in lieu of (I), the taxpayer's NOL for any TY beginning in 2008.
·§172(b)(1)(H)(iii)Election under (H) is made within due date to file return of NOL TY.
·§172(b)(1)(H)(iv)An "eligible small business" is by (F)(iii); swap "$15M" for "$5M" in §448(c).
·§179(b)(1)(C)$25K in the case of taxable years beginning after 2011.
·§179(b)(7)For any taxable year beginning in 2008 or 2009—
·§179(b)(7)(A)the dollar limitation under (1) is $250000,
·§179(b)(7)(B)the dollar limitation under (2) is $800000, and
·§179(b)(7)(C)the amounts by (A) and (B) are not adjusted under (5).
·§179(b)(1)(C)$125K in the case of taxable years beginning in 2012, and
·§179(b)(6)This paragraph sets adjustments for inflation.
·§179(b)(6)(A)For TYs beginning in 2012, the amounts in (1)(C) and (2)(C) are increased by—
·§179(b)(6)(A)(i)such dollar amount, multiplied by
·§179(b)(6)(A)(ii)the cost-of-living adjustment by §1(f)(3); swap "2006" for "1992" in such (B).
·§179(b)(6)(B)This subparagraph sets rules for rounding.
·§179(b)(6)(B)(i)Round (1) as adjusted by (A) to nearest multiple of $1K.
·§179(b)(6)(B)(ii)Round (2) as adjusted by (A) to nearest multiple of $10K.
·§199(b)(2)"W-2 wages" is sum of amounts by (3) & (8) of §6051(a) paid by such person.
·§199(d)(1)(A)(iii)for (b), each member is treated as having W-2 wages equal to the lesser of—
·§199(d)(1)(A)(iii)(I)his allocable share of W-2 wages of such entity for the TY, or
·§199(d)(1)(A)(iii)(II)2 times 9% of his qualified production activities income of (ii) for the TY.
·§249(b)This subsection sets special rules for purposes of (a).
·§249(b)(1)Adjusted issue price is issue price & any discount or less any included premium.
·§249(b)(2)"Control" has the same meaning as by §368(c).
·§280C(g)No deduction is allowed for premiums allowed a credit in the TY by §36B(a).
·§280F(d)(4)(A)(v)any cellular telephone (or other similar telecommunications equipment), and
·§401(a)(29)(A)A plan isn't qualified unless a contributing sponsor provides security if—
·§401(a)(29)(A)(i)a defined benefit plan by §412 adopts an amendment to increase its liability, &
·§401(a)(29)(A)(ii)funded current liability of the plan year for such amendment is less than 60%.
·§401(a)(29)(B)The security required under (A) consists of—
·§401(a)(29)(B)(i)a bond issued by a corporate surety company which meets §412 of PL 93-406,
·§401(a)(29)(B)(ii)cash, or US notes maturing in 3 years or less, held in escrow by a bank, &c., or
·§401(a)(29)(B)(iii)a form of security which satisfies the Secretary and any parties involved.
·§401(a)(29)(C)The security required under (A) is an amount equal to the excess of—
·§401(a)(29)(C)(i)the lesser of—
·§401(a)(29)(C)(i)(I)additional plan assets which would increase funded current liability to 60%, or
·§401(a)(29)(C)(i)(II)liability increase of such amendment & others between adoption & 19871222, over
·§401(a)(29)(D)Security is released in 1st plan year where funded liability is 60% or more.
·§401(a)(29)(E)For (29), terms relating to liability are defined by §412(l). Exception applies.
·§411(a)(2)Except by (12), a plan must meet (A) or (B).
·§411(a)(2)(A)An employee with at least 5 years of service has rights to 100% of benefits.
·§411(a)(2)(B)Percentage of benefit right is by this table based off of service years.
·§411(a)(12)For matching contributions (as by §401(m)(4)(A)), (2) is applied—
·§411(a)(12)(A)by substituting "3 years" for "5 years" in such (A), and
·§411(a)(12)(B)by using this table for (B). Percentage is 100% at 6 or more service years.
·§412This section discusses minimum funding standards.
·§412(a)§412 applies if a plan has no accumulated funding deficiency & at year's start—
·§412(a)(1)such plan includes a trust qualified (by Sec. ruling or not) under §401(a), or
·§412(a)(2)such plan meets (by Sec. ruling or not) the requirements of §403(a).
·§412(b)This subsection sets rules for funding standard accounts.
·§412(b)(1)Each plan of (a) requires a funding standard account. §412 sets account rules.
·§412(b)(2)For a plan year, the funding standard account is charged with the sum of—
·§412(b)(2)(A)the normal cost of the plan for the plan year,
·§412(b)(2)(B)amounts necessary to amortize in equal annual installments (until fulfilled)—
·§412(b)(2)(B)(i)for plans at 19740101, the unfunded service liability over 40 plan years,
·§412(b)(2)(B)(ii)for plans after 19740101, the unfunded service liability over 30 plan years,
·§412(b)(2)(B)(iii)separately, any net increase in such liability due to amendments, over 30 years,
·§412(b)(2)(B)(iv)separately, any net loss in the plan, over 5 years (15 if multiemployer), and
·§412(b)(2)(B)(v)separately, net loss by actuarial assumptions, over 10 or 30 years (as by (iv)),
·§412(b)(2)(C)amounts to annually amortize each waived funding deficiency over 5 or 15 years,
·§412(b)(2)(D)amounts to annually amortize any credit by (3)(D) over a period of 5 years, and
·§412(b)(2)(E)required contributions (except by (c)(7)(A)(i)(I)) amortized over 20 years.
·§412(b)(3)For a plan year, the funding standard account is credited with the sum of—
·§412(b)(3)(A)employer contributions to or under the plan for the plan year,
·§412(b)(3)(B)amounts to separately amortize in equal annual installments (until fulfilled)—
·§412(b)(3)(B)(i)any net decrease by amendments in unfunded past service liability over 30 years,
·§412(b)(3)(B)(ii)any net experience gain under the plan, over 5 years (15 if multiemployer), and
·§412(b)(3)(B)(iii)any net gain by actuarial assumptions, over 10 years (30 if multiemployer),
·§412(b)(3)(C)amount of waived funding deficiency (as by (d)(3)) for the plan year, and
·§412(b)(3)(D)any debit balance in standard account over that in alternative minimum account.
·§412(b)(4)Per Sec.'s rules, amortization required by (2) or (3) may be—
·§412(b)(4)(A)combined into 1 amount & amortized by basis of remaining period of all items, &
·§412(b)(4)(B)offset against each other, with the resulting amount amortized as by (A).
·§412(b)(5)This paragraph sets rules for the charge or credit of interest.
·§412(b)(5)(A)Apply interest at rate consistent with the plan's to funding standard account.
·§412(b)(5)(B)To figure a plan's current liability and required contribution by (l)—
·§412(b)(5)(B)(i)The plan uses a new interest rate in permissible range if not already within it.
·§412(b)(5)(B)(ii)This clause defines the "permissible range".
·§412(b)(5)(B)(ii)(I)Such range is within 10% of 4 year average rate on 30-year Treasury securities.
·§412(b)(5)(B)(ii)(II)For plan years in 20031231 - 20060101, range is between such average & 10% less.
·§412(b)(5)(B)(ii)(III)If (I) or (II) is unreasonably high, Sec. may set a lower range of interest.
·§412(b)(5)(B)(iii)Except for (c)(3)(A)(i), interest rate used under the plan is—
·§412(b)(5)(B)(iii)(I)figured without accounting for plan experience and reasonable expectations, but
·§412(b)(5)(B)(iii)(II)consistent with assumptions of purchase rates used to satisfy plan liabilities.
·§412(b)(6)For multiemployer plans existing before date of PL 96-364 enactment, amortize—
·§412(b)(6)(A)amounts of (ii) or (iii) of (2)(B) or (3)(B)(i) before such date over 40 years;
·§412(b)(6)(B)amounts of (2)(B)(iv) or (3)(B)(ii) before such date over 20 years;
·§412(b)(6)(C)past service liability changes within 3 years after such date over 40 years; &
·§412(b)(6)(D)as by (C) but within 2 such years if a group's benefit level is changed—
·§412(b)(6)(D)(i)under a schedule of benefits adopted before such date, and
·§412(b)(6)(D)(ii)such schedule applied to any participant at 1st plan year on or after such date.
·§412(b)(7)This paragraph sets special rules for multiemployer plans.
·§412(b)(7)(A)Receipt of withdrawal liability (PL 93-406) is an employer plan contribution.
·§412(b)(7)(B)If multiemployer plan was in reorganization in previous (and not current) year—
·§412(b)(7)(B)(i)offset any funding standard account balance by a credit or charge, but
·§412(b)(7)(B)(ii)account for such balance by amortizing over 30 subsequent plan years.
·§412(b)(7)(C)Payments to PBGC by PL 93-406 or to a §501(c)(22) fund reduces contributions.
·§412(b)(7)(D)Refund of withdrawal liability payment is charged to standard funding account.
·§412(b)(7)(E)For (c)(7), accrued liability in a plan doesn't include nonforfeitable benefits.
·§412(b)(7)(F)An election to defer charge for portion of net experience loss.
·§412(b)(7)(F)(i)Up to 80% of charge by (2)(B)(iv) may be deferred from & to certain plan years.
·§412(b)(7)(F)(ii)Funding standard account is charged with interest on (i) amount at rate by (d).
·§412(b)(7)(F)(iii)Amendments which change liabilities, &c., are adopted in (i) period, unless—
·§412(b)(7)(F)(iii)(I)such amendment will increase annual charges to funding standard account, or
·§412(b)(7)(F)(iii)(II)the amendment is required by an effective collective bargaining agreement.
·§412(b)(7)(F)(iv)For (F), an "eligible multiemployer plan" is a multiemployer plan which—
·§412(b)(7)(F)(iv)(I)had a loss of at least 10% of asset's FMV for 1st plan year after 20011231, and
·§412(b)(7)(F)(iv)(II)will have an accumulated funding deficiency for certain plan years.
·§412(b)(7)(F)(v)In no event is a plan treated as an eligible multiemployer plan by (iv) if—
·§412(b)(7)(F)(v)(I)in 10-year period before election of (i), any excise tax by §4971 was not paid,
·§412(b)(7)(F)(v)(II)in certain plan years, average required employer contribution is 10¢ or less, or
·§412(b)(7)(F)(v)(III)in certain plan years, a waiver was granted by (d) or §303 of PL 93-406, &c.
·§412(b)(7)(F)(vi)Election of (F) is made in time and manner as the Secretary prescribes.
·§412(c)This subsection sets special rules.
·§412(c)(1)Figure normal costs, liabilities, &c., by plan's funding method to figure costs.
·§412(c)(2)This paragraph sets rules for the valuation of assets.
·§412(c)(2)(A)Plan's asset value is by any reasonable actuarial method which accounts for FMV.
·§412(c)(2)(B)Non-default debt value may be elected to use an amortizable basis. Rules apply.
·§412(c)(3)All costs, rates, &c., under a plan is figured on basis of actuarial methods—
·§412(c)(3)(A)in the case of a plan which is—
·§412(c)(3)(A)(i)multiemployer, each of which is reasonable or forms a reasonable aggregate, or
·§412(c)(3)(A)(ii)not multiemployer, which is reasonable in aggregate, and
·§412(c)(3)(B)which, in combination, gives the best estimate of plan's anticipated experience.
·§412(c)(4)Any increase or decrease is treated as an experience loss or gain if—
·§412(c)(4)(A)benefits by SSA or in other retirement benefits by State law are changed, or
·§412(c)(4)(B)the definition of "wages" by §3121 or accounting of wages by §401(a)(5) changes.
·§412(c)(5)A requirement of approval for change in funding method or plan year.
·§412(c)(5)(A)A change in funding method or plan year is used only with Sec.'s approval.
·§412(c)(5)(B)Changes in assumptions by certain plans with additional funding requirement.
·§412(c)(5)(B)(i)Except by (l)(7)(C), changes in actuarial assumption require Sec.'s approval.
·§412(c)(5)(B)(ii)(B) applies to a single-employer plan only if—
·§412(c)(5)(B)(ii)(I)it is a defined benefit plan to which title IV of PL 93-406 applies;
·§412(c)(5)(B)(ii)(II)sum of certain unfunded vested benefits by certain sponsors, &c., exceed $50M; &
·§412(c)(5)(B)(ii)(III)plan's liability is reduced by more than $50M or $5M plus 5% of current amount.
·§412(c)(6)If at plan year end, accumulated funding deficiency exceeds full funding limit—
·§412(c)(6)(A)the funding standard account is credited with such excess, and
·§412(c)(6)(B)amounts of (2)(B), (C) & (D) & (3)(B) of (B) are considered fully amortized.
·§412(c)(7)This paragraph defines the "full-funding limitation".
·§412(c)(7)(A)For (6), such limitation is any excess of—
·§412(c)(7)(A)(i)the lesser of
·§412(c)(7)(A)(i)(I)applicable percentage of current liability (for plan years before 20040101), or
·§412(c)(7)(A)(i)(II)plan's accrued liability (by entry age normal funding method if necessary), over
·§412(c)(7)(A)(ii)the lesser of—
·§412(c)(7)(A)(ii)(I)the FMV of the plan's assets, or
·§412(c)(7)(A)(ii)(II)the value of such assets determined under (2).
·§412(c)(7)(B)"Current liability" is generally by (l)(7) with interest rate of (b)(5)(B).
·§412(c)(7)(C)For (6)(B), apply (A)(i) by ignoring (I) thereof.
·§412(c)(7)(D)Secretary may, by regulations, provide—
·§412(c)(7)(D)(i)adjustments of percentage of (A)(i) for participants' ages or service lengths, &
·§412(c)(7)(D)(ii)alternative methods to figure (A)(i) by factors other than current liability.
·§412(c)(7)(E)This subparagraph sets the minimum amount for the full-funding limitation.
·§412(c)(7)(E)(i)Full-funding limitation of (A) must at least be equal to any excess of—
·§412(c)(7)(E)(i)(I)90% of plan's current liability (plus any increase by benefit accruement), over
·§412(c)(7)(E)(i)(II)the value of the plan's assets as determined by (2).
·§412(c)(7)(E)(ii)For (i)—
·§412(c)(7)(E)(ii)(I)"current liability" is defined by (l)(7) (ignoring such (D)), and
·§412(c)(7)(E)(ii)(II)assets aren't reduced by any credit balance in the funding standard account.
·§412(c)(7)(F)Applicable percentage of (A)(i)(I) for 2002 & 2003 plan years is by this table.
·§412(c)(8)A plan amendment is considered made on 1st day of applicable plan year if it—
·§412(c)(8)(A)applies within 2½ months (2 years for multiemployer plans) after such year ends,
·§412(c)(8)(B)doesn't reduce any participant's accrued benefit at start of such plan year, and
·§412(c)(8)(C)doesn't reduce any benefit determined at time of adoption (unless required).
·§412(c)(9)This paragraph sets rules for annual valuation.
·§412(c)(9)(A)Valuation of plan liability and experience is made at least annually.
·§412(c)(9)(B)This subparagraph sets the valuation date for (A).
·§412(c)(9)(B)(i)Valuation is made as of date within plan year or one month prior to such year.
·§412(c)(9)(B)(ii)(A) may be in prior plan year if assets are at least 100% of current liability.
·§412(c)(9)(B)(iii)Information for (ii) is actuarially adjusted to show participant differences.
·§412(c)(9)(B)(iv)Funding method change to use (ii) requires assets at 125% of current liability.
·§412(c)(10)This paragraph sets the time when certain contributions are deemed made.
·§412(c)(10)(A)Defined benefit plan contributions are considered made on last day of period—
·§412(c)(10)(A)(i)starting on the day after the last day of such plan year, and
·§412(c)(10)(A)(ii)ending on the day which is 8½ months after such last day.
·§412(c)(10)(B)For plans not of (A), period is between such last day and 2½ months afterward.
·§412(c)(11)This paragraph sets rules for the liability of contributions.
·§412(c)(11)(A)Required contributions or installments of (m) are paid by employer of (b)(3)(A).
·§412(c)(11)(B)Rules for joint and several liability for employers in a controlled group.
·§412(c)(11)(B)(i)If employer of (A) is in a controlled group, each group member is liable.
·§412(c)(11)(B)(ii)A "controlled group" is a single employer by (b), (c), (m) or (o) of §414.
·§412(c)(12)Funding method of §413(a) plans anticipate benefit increases in agreement term.
·§412(d)This subsection sets an allowance for variance from minimum funding standard.
·§412(d)(1)In certain hardship, (a) may be waived except (b)(2)(C) portion & interest of—
·§412(d)(1)(A)for plans which are not multiemployer plans, the greater of
·§412(d)(1)(A)(i)150% of Federal mid-term rate (as by §1274 for 1st month of such plan year), or
·§412(d)(1)(A)(ii)the rate used under the plan to figure costs (and adjustments by (b)(5)(B)), and
·§412(d)(1)(B)for multiemployer plans, the rate determined by §6621(b).
·§412(d)(2)Factors used to determine temporary substantial business hardship include if—
·§412(d)(2)(A)the employer is operating at an economic loss,
·§412(d)(2)(B)there is substantial unemployment in the trade and in the related industry,
·§412(d)(2)(C)the sales and profits of the related industry are depressed or declining, and
·§412(d)(2)(D)the plan is expected to be continued only if the waiver is granted.
·§412(d)(3)"Waived funding deficiency" is part of minimum funding standard waived by Sec.
·§412(d)(4)Waiver must be applied for within 15th day of 3rd month after plan year ends.
·§412(d)(5)This paragraph sets a special rule if employer is a controlled group member.
·§412(d)(5)(A)For (1), nonmultiemployer plans of an employer who is in a controlled group—
·§412(d)(5)(A)(i)such employer must meet the requirements of (1), and
·§412(d)(5)(A)(ii)such controlled grope must meet the requirements of (1).
·§412(d)(5)(B)A "controlled group" is a single employer by (b), (c), (m) or (o) of §414.
·§412(e)(b)(2)(B) liability amortization period may be extended to meet PL 93-406 if—
·§412(e)(1)failure to permit such extension would result in—
·§412(e)(1)(A)a substantial risk to the voluntary continuation of the plan, or
·§412(e)(1)(B)a substantial curtailment of pension benefit levels or employee compensation, &
·§412(e)(2)it isn't adverse to all plan participant interests. Extension interest rate is—
·§412(e)(2)(A)150% of Federal mid-term rate (as by §1274 for 1st month of such plan year), or
·§412(e)(2)(B)that used by the plan to figure costs. Multiemployer plans use rate by §6621(b).
·§412(f)This subsection sets requirements relating to waivers and extensions.
·§412(f)(1)Certain plan amendments aren't adopted if (c)(8), (d)(1) or (e) applies.
·§412(f)(2)(1) doesn't apply to any plan amendment which—
·§412(f)(2)(A)is deemed reasonable by Sec. of Labor and sets de minimis liability increases,
·§412(f)(2)(B)only repeals an amendment described by (c)(8), or
·§412(f)(2)(C)is required as a condition of qualification under §§401 - 420.
·§412(f)(3)Rules for security for waivers, extensions, and consultations.
·§412(f)(3)(A)This subparagraph sets a rule for when security may be required.
·§412(f)(3)(A)(i)Plans as by §4001(a)(15) of PL 93-406 may require security for (d) or (e).
·§412(f)(3)(A)(ii)Security of (i) is perfected & enforced only by PBGC or a contributing sponsor.
·§412(f)(3)(B)Before granting waiver by (d) or extension of (e) for such plan, the Sec. will—
·§412(f)(3)(B)(i)provide the Pension Benefit Guaranty Corporation with—
·§412(f)(3)(B)(i)(I)notice of the completed application for a waiver, extension, or modification, &
·§412(f)(3)(B)(i)(II)a chance to comment on the application within 30 days after receipt of notice, &
·§412(f)(3)(B)(ii)(I)any comments by the PBGC under (i)(II), and
·§412(f)(3)(B)(ii)(II)any views of any employee organization which represents plan participants.
·§412(f)(3)(C)This subparagraph sets an exception for certain waivers and extensions.
·§412(f)(3)(C)(i)Ignore (3) if $1M is greater than the sum of outstanding deficiencies of—
·§412(f)(3)(C)(i)(I)accumulated funding deficiencies (as by (a) & §302(a) of PL 93-406) of the plan,
·§412(f)(3)(C)(i)(II)waived funding deficiencies (as by (d) or §303 of such PL) of the plan, and
·§412(f)(3)(C)(i)(III)decreases in the minimum funding standard (as by (e) or §304 of such PL).
·§412(f)(3)(C)(ii)For (i)(I), add any increase which would arise if all applications were denied.
·§412(f)(4)This paragraph sets rules for additional requirements for waivers & extensions.
·§412(f)(4)(A)Each appliant must provide notice of application to all beneficiaries, &c.
·§412(f)(4)(B)Sec. considers any relevant facts provided by a recipient of notice by (A).
·§412(g)This subsection sets an alternative minimum funding standard.
·§412(g)(1)Plans requiring contributions at normal funding method may set an alternative.
·§412(g)(2)For a plan year, the alternative minimum funding standard account is—
·§412(g)(2)(A)charged with the sum of—
·§412(g)(2)(A)(i)the lesser of normal cost by plan's funding method or by unit credit method,
·§412(g)(2)(A)(ii)any excess of accrued benefit present value over FMV of assets, and
·§412(g)(2)(A)(iii)any excess of credits to the alternative account for all prior plan years, and
·§412(g)(2)(B)credited with amount considered contributed by the employer to such plan.
·§412(g)(3)Such alternative account is charged or credited with interest as by (b)(5).
·§412(h)§412 doesn't apply to—
·§412(h)(1)any profit-sharing or stock bonus plan,
·§412(h)(2)any insurance contract plan as by (i),
·§412(h)(3)any governmental plan (as by §414(d)),
·§412(h)(4)any church plan (as by §414(e)) to which the election of §410(d) wasn't made,
·§412(h)(5)any plan which has not provided for employer contributions as of 19740902, or
·§412(h)(6)any plan of an entity by (8) or (9) of §501(c) with no employer contributions.
·§412(i)A plan is described by this subsection if—
·§412(i)(1)the plan is funded exclusively by purchase of individual insurance contracts,
·§412(i)(2)the contracts provide level payments up to retirement age for plan participants,
·§412(i)(3)benefits are guaranteed & equal to that of contracts' at normal retirement age,
·§412(i)(4)premiums of such contracts for all plan years are paid before reinstatement,
·§412(i)(5)no rights of such contracts are subject to security interest at any time, and
·§412(i)(6)no policy loans are outstanding at any time in the plan year.
·§412(j)§412 applies to plans to which §4021 of PL 93-406 applies until the plan ends.
·§412(k)Assistance by PBGC to any plan (and repayment) is accounted per Sec.'s rules.
·§412(l)Additional funding requirements for non-multiemployer plans.
·§412(l)(1)If (9) applies to a benefit plan, increase amount charged to account by sum of—
·§412(l)(1)(A)any excess of—
·§412(l)(1)(A)(i)the deficit reduction contribution determined by (2) for such plan year, over
·§412(l)(1)(A)(ii)the sum of charges for such year by (b)(2), less credits by (b)(3)(B), plus
·§412(l)(1)(B)any unpredictable contingent event amount for such plan year.
·§412(l)(2)For (1), the deficit reduction contribution for any plan year is the sum of—
·§412(l)(2)(A)the unfunded old liability amount,
·§412(l)(2)(B)the unfunded new liability amount,
·§412(l)(2)(C)the expected increase in current liability due to benefit accruement, and
·§412(l)(2)(D)the aggregate of the unfunded mortality increase amounts.
·§412(l)(3)This paragraph defines the unfunded old liability amount.
·§412(l)(3)(A)Such amount is that required to amortize such liability over 18 plan years.
·§412(l)(3)(B)"Unfunded old liability" is unfunded current liability as of 19880101.
·§412(l)(3)(C)Special rules for benefit increases in collective bargaining agreements.
·§412(l)(3)(C)(i)For (A), add amount to amortize benefit increase in 18 plan years starting at—
·§412(l)(3)(C)(i)(I)the plan year in which the benefit increase to liability occurs, or
·§412(l)(3)(C)(i)(II)the 1st plan year starting after 19881231, if elected.
·§412(l)(3)(C)(ii)For (i), the unfunded existing benefit increase liability is figured—
·§412(l)(3)(C)(ii)(I)by accounting only for liabilities attributable to such benefit increase, and
·§412(l)(3)(C)(ii)(II)by reducing amount of (8)(A)(ii) by current liability, ignoring such increase.
·§412(l)(3)(C)(iii)Any modification, &c., of agreements after 19871028 aren't taken into account.
·§412(l)(3)(D)A special rule for required changes in actuarial assumptions.
·§412(l)(3)(D)(i)Add amount required to amortize additional liability over 12 years to (A).
·§412(l)(3)(D)(ii)For (i), such "additional unfunded old liability" is any excess of—
·§412(l)(3)(D)(ii)(I)plan's current liability of 1st plan year after 19941231 (as by (7)(C)), over
·§412(l)(3)(D)(ii)(II)such liability using same assumptions and prior interest rate instead of (7)(C).
·§412(l)(3)(D)(iii)"Prior interest rate" for (ii) is weighted average by (b)(5)(B)(ii)(I).
·§412(l)(3)(E)An optional rule for additional unfunded old liability.
·§412(l)(3)(E)(i)If election is made, additional unfunded old liability of (D) is any excess of—
·§412(l)(3)(E)(i)(I)unfunded liability by assumptions of (7)(C) for plan years after 19941231, over
·§412(l)(3)(E)(i)(II)unamortized part of unfunded old liability as of 1st plan year after 19941231.
·§412(l)(3)(E)(ii)This clause sets rules for the election of this subparagraph.
·§412(l)(3)(E)(ii)(I)An employer may make this irrevocable election in 1st plan year after 19941231.
·§412(l)(3)(E)(ii)(II)If election is made, increase by (1) follows provisions of (l) before 19950101.
·§412(l)(4)This paragraph defines the unfunded new liability amount.
·§412(l)(4)(A)Such amount is the applicable percentage of the unfunded new liability.
·§412(l)(4)(B)The "unfunded new liability" is unfunded current liability figured by ignoring—
·§412(l)(4)(B)(i)unfunded old liability, additional old liability, &c., which aren't amortized, &
·§412(l)(4)(B)(ii)the liability with respect to unpredictable contingent event benefits.
·§412(l)(4)(C)The "applicable percentage" is, for any plan year, 30%, reduced by multiplying—
·§412(l)(4)(C)(i).40 with
·§412(l)(4)(C)(ii)the percent by which the funded current liability exceeds 60%.
·§412(l)(5)This paragraph defines the unpredictable contingent event amount.
·§412(l)(5)(A)Such amount, for any plan year, is equal to the greatest of—
·§412(l)(5)(A)(i)the applicable percentage of the product of—
·§412(l)(5)(A)(i)(I)100%, reduced by the funded current liability percentage for the plan year, with
·§412(l)(5)(A)(i)(II)unpredictable contingent event benefits paid, plus annuity contract purchases,
·§412(l)(5)(A)(ii)the resultant amount in amortizing contingent liabilities over 7 plan years, or
·§412(l)(5)(A)(iii)the amount by (4)(A) if such liabilities were added to unfunded new liability.
·§412(l)(5)(B)Applicable percentage of (A)(i) is by this table. After 2000, it is 100%.
·§412(l)(5)(C)Ignore (5) for benefits related to events before 1st plan year after 19881231.
·§412(l)(5)(D)Amount of (A) is 150% of the amount of (A)(i); Sec. sets amortization afterward.
·§412(l)(5)(E)Present value of (A) for 1 event is limited to attributable benefit liabilities.
·§412(l)(6)This paragraph sets special rules for small plans.
·§412(l)(6)(A)(l) doesn't apply if plan had less than 101 participants in prior plan year.
·§412(l)(6)(B)If (A) doesn't apply and plan had less than 151 participants in such year—
·§412(l)(6)(B)(i)multiply the amount of increase of (1) (by ignoring (B)) by—
·§412(l)(6)(B)(ii)2% of the highest number of participants over 100 on any such day in such year.
·§412(l)(6)(C)All defined benefit plans by same employer are treated as 1 plan.
·§412(l)(7)This paragraph defines "current liability".
·§412(l)(7)(A)Such term is all liabilities to employees and beneficiaries under the plan.
·§412(l)(7)(B)This subparagraph sets the treatment of unpredictable contingent event benefits.
·§412(l)(7)(B)(i)For (A), any such benefit is not accounted until the contingent event occurs.
·§412(l)(7)(B)(ii)The "unpredictable contingent event benefit" is based upon any event except—
·§412(l)(7)(B)(ii)(I)age, service, compensation, death, or disability, or
·§412(l)(7)(B)(ii)(II)an event which is reasonably and reliably predictable (as determined by Sec.).
·§412(l)(7)(C)Interest rate and mortality assumptions used for plan years after 19941231.
·§412(l)(7)(C)(i)This clause sets the interest rate.
·§412(l)(7)(C)(i)(I)In general, such rate is as by (b)(5), except highest range is limited by (II).
·§412(l)(7)(C)(i)(II)Specified percentage is by this table. For years after 1998, it is 105%.
·§412(l)(7)(C)(i)(III)If started in 2002 or 2003, limit of rate is 120% of average by (b)(5)(B)(II).
·§412(l)(7)(C)(i)(IV)If started in 2004 or 2005, rate of interest is by (b)(5). Ignore (I).
·§412(l)(7)(C)(ii)This clause sets the mortality tables.
·§412(l)(7)(C)(ii)(I)For plans started in years before (II) applies, use table by §807(d)(5)(A).
·§412(l)(7)(C)(ii)(II)Sec. sets tables based on actuarial experience for plans started after 19991231.
·§412(l)(7)(C)(ii)(III)Sec. reviews tables set by (l) at least every 5 years and updates as necessary.
·§412(l)(7)(C)(iii)This clause sets separate mortality tables for disabled individuals.
·§412(l)(7)(C)(iii)(I)For plan years after 19951231, Sec. sets tables for disabled individuals.
·§412(l)(7)(C)(iii)(II)For disabilities in plan years after 19941231, title II of SSA must apply.
·§412(l)(7)(C)(iii)(III)After 1994, plan may use its own mortality assumptions for such individuals.
·§412(l)(7)(D)This subparagraph sets a rule to disregard certain service.
·§412(l)(7)(D)(i)If (D) applies, account applicable percentage of service before participation.
·§412(l)(7)(D)(ii)For (D), such percentage is by this table. For 5 years of participation: 100%.
·§412(l)(7)(D)(iii)(D) applies to any participant who, when participation began—
·§412(l)(7)(D)(iii)(I)didn't accrue any other benefit under any defined benefit plan of the employer,
·§412(l)(7)(D)(iii)(II)first became a plan participant in a plan year starting after 19871231, and
·§412(l)(7)(D)(iii)(III)has years of service greater than minimum required for plan participation.
·§412(l)(7)(D)(iv)Employer may elect to have (D) not apply. Sec. must approve revocation.
·§412(l)(8)This paragraph sets other definitions for purposes of (l).
·§412(l)(8)(A)"Unfunded current liability" is, for any plan year, any excess of—
·§412(l)(8)(A)(i)the plan's current liability, over
·§412(l)(8)(A)(ii)the value of the plan's assets as determined by (c)(2).
·§412(l)(8)(B)The "funded current liability percentage" is, for any plan year, that which—
·§412(l)(8)(B)(i)the amount determined under (A)(ii), is of
·§412(l)(8)(B)(ii)the plan's current liability.
·§412(l)(8)(C)A "controlled group" is treated as 1 employer by (b), (c), (m) and (o) of §414.
·§412(l)(8)(D)Sec. adjusts credits and charges under §412 to avoid duplication or omission.
·§412(l)(8)(E)Reduce (A)(ii) amount by any credit balance in funding standard account.
·§412(l)(9)This paragraph sets rules for the applicability of (l).
·§412(l)(9)(A)Except by (6)(A), (l) applies if percentage of (8)(B) is less than 90%.
·§412(l)(9)(B)(A) doesn't apply to a plan for a plan year if—
·§412(l)(9)(B)(i)such funded current liability percentage for the plan year is at least 80%, and
·§412(l)(9)(B)(ii)such percentage for each of the 2 preceding plan years is at least 90%.
·§412(l)(9)(C)The "funded current liability percentage" is by (8)(B), except determined—
·§412(l)(9)(C)(i)by ignoring (8)(E), and
·§412(l)(9)(C)(ii)by using the highest rate allowable for the plan year by (7)(C).
·§412(l)(9)(D)This subparagraph sets transition rules for purposes of (9).
·§412(l)(9)(D)(i)Funded percentage for plan years before 19950101 is treated as at least 90% if:
·§412(l)(9)(D)(i)(I)the full-funding limitation by (c)(7) for the plan was zero,
·§412(l)(9)(D)(i)(II)the plan had no additional funding requirement under (l) (or if (C) applied), or
·§412(l)(9)(D)(i)(III)additional funding requirement was less than .5% of current liability or $5M.
·§412(l)(9)(D)(ii)Plan meets (B)(ii) if plan met (i) for any two plan years in 1992 - 1994.
·§412(l)(10)This paragraph discusses the unfunded mortality increase amount.
·§412(l)(10)(A)Such amount is amortized over 10 plan years (starting at mortality table use).
·§412(l)(10)(B)For (A), the "unfunded mortality increase" is equal to the excess of—
·§412(l)(10)(B)(i)the plan's current liability in 1st plan year of mortality table use, over
·§412(l)(10)(B)(ii)such liability which would have come from such table's use in the previous year.
·§412(l)(11)This paragraph sets the Phase-in of funding increases required by PL 103-465.
·§412(l)(11)(A)If elected for any applicable year, increase of (1) is limited to greater of—
·§412(l)(11)(A)(i)increase by (1) as if provisions for plan years before 19950101 were used, or
·§412(l)(11)(A)(ii)the amount necessary to add applicable number of points to liability percentage.
·§412(l)(11)(B)This subparagraph sets the "applicable number of percentage points".
·§412(l)(11)(B)(i)For plans with initial liability percentage under 76%, points are by this table.
·§412(l)(11)(B)(ii)If this clause applies, such points for any applicable plan year is the sum of—
·§412(l)(11)(B)(ii)(II)the applicable points under this clause for the preceding plan year;
·§412(l)(11)(B)(ii)(III).1 times any excess of 85% over the sum of initial percentage and (II);
·§412(l)(11)(B)(ii)(IV)1%, for applicable plan years beginning in 2000; and
·§412(l)(11)(B)(ii)(V)2%, for applicable plan years beginning in 2001.
·§412(l)(11)(B)(iii)This clause sets rules for where (ii) applies.
·§412(l)(11)(B)(iii)(I)(ii) applies if plan's initial current liability percentage is more than 75%.
·§412(l)(11)(B)(iii)(II)If (i) initially applies, (ii) applies when liability percentage exceeds 75%.
·§412(l)(11)(C)This subparagraph sets definitions for purposes of (11).
·§412(l)(11)(C)(i)An "applicable plan year" begins after 19941231 and before 20020101.
·§412(l)(11)(C)(ii)"Initial unfunded current liability percentage" is upon 1st plan day after 1994.
·§412(l)(12)This paragraph sets an allowance of election for certain plans.
·§412(l)(12)(A)For applicable employers, if (l) didn't apply as of 2000, increase of (1) is—
·§412(l)(12)(A)(i)20% of increased amount by (1) figured by ignoring (12), or, if greater
·§412(l)(12)(A)(ii)amount by (1) if amount by (2) was figured by ignoring (A), (B) and (D) of (2).
·§412(l)(12)(B)Adopt no amendment which alters benefits or rates in an applicable year unless—
·§412(l)(12)(B)(i)annual contributions will exceed the increase in charges to standard account, or
·§412(l)(12)(B)(ii)required by a collective bargaining agreement in effect when (B) is enacted.
·§412(l)(12)(C)For (12), an "applicable employer" is one which is—
·§412(l)(12)(C)(i)a commercial passenger airline,
·§412(l)(12)(C)(ii)primarily manufactures a steel mill product or processes iron ore pellets, or
·§412(l)(12)(C)(iii)by §501(c)(5) and established such plan as of 19550630.
·§412(l)(12)(D)This subparagraph defines an "applicable plan year".
·§412(l)(12)(D)(i)Such year is any elected and starting after 200312227 and before 20051228.
·§412(l)(12)(D)(ii)Election may not be made by (12) for more than 2 plan years.
·§412(l)(12)(E)Elections by (12) are made in time and manner as prescribed by Sec.
·§412(m)This subsection sets requirements for quarterly contributions.
·§412(m)(1)While funded current liability installment isn't paid, interest for (b)(5) is—
·§412(m)(1)(A)175% of Federal mid-term rate (as by §1274 for 1st month of such plan year), or
·§412(m)(1)(B)if greater, rate of interest used to figure costs (& adjustments by (b)(5)(B)).
·§412(m)(2)This paragraph defines the amount and period of underpayment.
·§412(m)(2)(A)The amount of underpayment is any excess of—
·§412(m)(2)(A)(i)the required installment, over
·§412(m)(2)(A)(ii)any installment contributed to or under the plan before its due date.
·§412(m)(2)(B)Interest is charged from installment due date until portion is contributed.
·§412(m)(2)(C)Credit contributions against unpaid required installments in order of payment.
·§412(m)(3)This paragraph sets the number of required installments and due dates.
·§412(m)(3)(A)There are four required installments for each plan year.
·§412(m)(3)(B)Due dates for each payment are the 15th of April, July, October, and January.
·§412(m)(4)This paragraph sets the amount of the required installment.
·§412(m)(4)(A)Such amount is applicable percentage of required annual payment.
·§412(m)(4)(B)The "required annual payment" is the lesser of—
·§412(m)(4)(B)(i)90% of amount required to be contributed to the plan by §412 (ignoring (d)), or
·§412(m)(4)(B)(ii)100% of the amount so required in previous plan year (with 12 months).
·§412(m)(4)(C)Applicable percentage is by this table. 25% for plan years starting after 1992.
·§412(m)(4)(D)If (l) applies and plan has unpredictable contingent event benefit liabilities—
·§412(m)(4)(D)(i)Ignore such liabilities to figure required annual payment under (B).
·§412(m)(4)(D)(ii)Each required installment is increased by the greatest of—
·§412(m)(4)(D)(ii)(I)the unfunded percentage by (l)(5)(A)(i) paid in 3 months before due date,
·§412(m)(4)(D)(ii)(II)25% of the amount by (l)(5)(A)(ii) for the plan year, or
·§412(m)(4)(D)(ii)(III)25% of the amount by (l)(5)(A)(iii) for the plan year.
·§412(m)(4)(D)(iii)The "unfunded percentage" is determined by (l)(5)(A)(i)(I) for the plan year.
·§412(m)(4)(D)(iv)Increases by (ii) is limited to amount to increase (l)(8)(B) percentage to 100%.
·§412(m)(5)This paragraph sets the liquidity requirement.
·§412(m)(5)(A)Full installment is not paid if value of liquid assets is less than shortfall.
·§412(m)(5)(B)Apply (5) to a defined benefit plan (except multiemployer or by (l)(6)(A)) if—
·§412(m)(5)(B)(i)it is required to pay installments under (m) for a plan year, and
·§412(m)(5)(B)(ii)it has a liquidity shortfall for any quarter during such plan year.
·§412(m)(5)(C)Any unpaid installment is treated as unpaid until end of quarter when due.
·§412(m)(5)(D)Increase by (A) is limited to amount to increase (l)(8)(B) percentage to 100%.
·§412(m)(5)(E)This subparagraph sets definitions for purposes of (5).
·§412(m)(5)(E)(i)"Liquidity shortfall" is excess of base amount over plan's liquid asset value.
·§412(m)(5)(E)(ii)This clause defines the "base amount".
·§412(m)(5)(E)(ii)(I)Such amount is 3 times the sum of adjusted disbursements from plan in 12 months.
·§412(m)(5)(E)(ii)(II)For (I), nonrecurring circumstances can be ignored in certain cases.
·§412(m)(5)(E)(iii)"Disbursements from the plan" is all from trust, and annuity purchases, &c.
·§412(m)(5)(E)(iv)"Adjusted disbursements" is from the plan reduced by the product of—
·§412(m)(5)(E)(iv)(I)its funded current liability percentage (as by (l)(8)) for the plan year, &
·§412(m)(5)(E)(iv)(II)the sum of purchases of annuities, &c., as Sec. sets by regulations.
·§412(m)(5)(E)(v)"Liquid assets" is cash, marketable securities, and other assets as set by Sec.
·§412(m)(5)(E)(vi)A "quarter" is the 3-month period before the month of the installment due date.
·§412(m)(5)(F)Sec. sets regulations as necessary to carry out the purposes of (5).
·§412(m)(6)This paragraph sets rules for fiscal years and short years.
·§412(m)(6)(A)If plan year starts on date except January 1, adjust specified months in (m).
·§412(m)(6)(B)Apply (m) to plan years with less than 12 months per Sec.'s regulations.
·§412(m)(7)In certain cases for plan years starting in 2002, (l)(7)(C)(i)(II) is 120%.
·§412(n)An imposition of lien when required contributions are not made.
·§412(n)(1)A lien is placed on all property of a person (& controlled group co-member) if—
·§412(n)(1)(A)such person fails to make an installment by (m) or any other required payment, &
·§412(n)(1)(B)the unpaid balance of such installment, when added to aggregate, exceeds $1M.
·§412(n)(2)Apply (n) if (l)(8)(B) is less than 100%, unless §4021 of PL 93-406 is ignored.
·§412(n)(3)Amount of lien for (1) is the sum unpaid balance of required payments—
·§412(n)(3)(A)for plan years beginning after 1987, and
·§412(n)(3)(B)for which payment hasn't been made before the due date.
·§412(n)(4)This paragraph sets rules for notice of payment failure and lien.
·§412(n)(4)(A)Person of (1) notifies PBGC of such failure within 10 days of payment due date.
·§412(n)(4)(B)Lien lasts from such due date until last day of plan year when (1)(B) isn't met.
·§412(n)(4)(C)Lien is treated as imposed tax; rules by (c) - (e) of §4068 of PL 93-406 apply.
·§412(n)(5)Lien of (1) may be perfected or enforced only by PBGC or a contributing sponsor.
·§412(n)(6)This paragraph sets definitions for purposes of (n).
·§412(n)(6)(A)"Due date" & "required installment" are by (m), except otherwise by §412.
·§412(n)(6)(B)A "controlled group" is treated as 1 employer by (b), (c), (m) and (o) of §414.
·§417(e)(3)(A)This subparagraph sets the general rule.
·§417(e)(3)(A)(i)Present value is calculated by applicable mortality table and interest rate.
·§417(e)(3)(A)(ii)This clause sets definitions for purposes of (i).
·§417(e)(3)(A)(ii)(I)The "applicable mortality table" is set by Sec., based on §807(d)(5)(A).
·§417(e)(3)(A)(ii)(II)"Applicable interest rate" is that on 30-year Treasury securities in such month.
·§417(e)(3)(B)Rate used by PBGC for lump sum distributions as of 19930901 may be used for—
·§417(e)(3)(B)(i)distributions after a plan amendment to which (A) applies is adopted, or
·§417(e)(3)(B)(ii)distributions as of the 1st day of 1st plan year after 19991231.
·§420(e)(4)For a qualified transfer to a health benefits account, for §412,—
·§420(e)(4)(A)assets transferred before valuation date is treated as assets in the plan, and
·§420(e)(4)(B)the plan is treated as having a net experience loss equal to transferred amount.
·§420(b)(4)This paragraph sets a special rule for transfers in 1990.
·§420(b)(4)(A)Subject to (c), a transfer is treated as qualified if such transfer—
·§420(b)(4)(A)(i)is made after end of TY before 1st TY beginning after 19901231, and before—
·§420(b)(4)(A)(i)(I)the due date (and extensions) for tax return filing in such previous TY, or
·§420(b)(4)(A)(i)(II)the date such return is filed, if earlier, and
·§420(b)(4)(A)(ii)doesn't exceed costs for qualified health liabilities for such previous TY.
·§420(b)(4)(B)Deductions allowed is reduced by any qualified transfer to which (4) applies.
·§420(b)(4)(C)(e)(1)(B) doesn't apply to a transfer by (A).
·§420(c)(2)(B)For (b)(4), (A) must be applied to benefits for those separated from service.
·§852(b)(5)(A)Such dividend amount is paid & set by a RIC, limited by ratio to any excess of—
·§852(b)(5)(A)(i)the amount of interest excludable from gross income under §103(a), over
·§852(b)(5)(B)(ii)amounts disallowed as deductions under §171(a)(2) and §265.
·§852(b)(5)(B)Shareholders treat an exempt-interest dividend as excludable by §103(a) for—
·§852(b)(5)(B)(i)the determination of gross income and taxable income,
·§852(b)(5)(B)(ii)the determination of distributable net income under subchapter J,
·§852(b)(5)(B)(iii)the allowance and calculation of any credit or deduction, and
·§852(b)(5)(B)(iv)determination of basis for any stock in the hands of any shareholder.
·§852(b)(8)Net foreign currency loss arising after October 31 is attributable to next year.
·§852(b)(10)Apply rule of (8) for reduction in value of passive foreign investment company.
·§852(c)(1)RIC earnings are not reduced by any amount which is not deductible.
·§854(b)(2)RIC notifies shareholders of qualified dividend income within 60 days after TY.
·§855(a)(1)declares a dividend prior to filing deadline (plus extensions) for a TY, and
·§855(c)Shareholder notice required under part I is made within 60 days after TY ends.
·§860(j)See §6697 for penalty on RIC's tax liability which is deductible under (a).
·§861(a)(1)(A)interest from a resident alien or domestic corporation which meets (c)(1),
·§861(c)This subsection sets foreign business requirements.
·§861(c)(1)This paragraph sets foreign business requirements.
·§861(c)(1)(A)At least 80% of income in testing period must be active foreign business income.
·§861(c)(1)(B)For (A), "active foreign business income" is gross income which is from—
·§861(c)(1)(B)(i)sources outside the US or related to income so derived by a subsidiary, and
·§861(c)(1)(B)(ii)active conduct of a business in a foreign country or US possession.
·§861(c)(1)(C)In general, the "testing period" is 3 years before TY of payment.
·§861(c)(2)A rule for look-through if related person receives interest.
·§861(c)(2)(A)If related person gets interest from (1)(A) person, apply ratio to (a)(1)(A) as—
·§861(c)(2)(A)(i)gross income of such person in period of (C) from sources not in the US bears to
·§861(c)(2)(A)(ii)total gross income of such person for such testing period.
·§861(c)(2)(B)For (2), a "related person" is defined by §954(d)(3), except that—
·§861(c)(2)(B)(i)"the person making payment" is swapped for "controlled foreign corporation", and
·§861(c)(2)(B)(ii)"10% or more" is swapped for "more than 50%" each place it appears.
·§871(h)(2)"Portfolio interest" would otherwise taxed by (a) and is any of the following:
·§871(h)(2)(A)Interest which is paid on any obligation which—
·§871(h)(2)(A)(i)is not in registered form, and
·§871(h)(2)(A)(ii)is described in §163(f)(2)(B).
·§871(h)(2)(B)Interest which is paid on any obligation which—
·§871(h)(2)(B)(i)is in registered form, and
·§871(h)(2)(B)(ii)has a beneficial owner who is not a US person.
·§871(k)(2)(C)"Short-term capital gain dividend" is set as such by RIC, per certain rules.
·§871(k)(2)(D)"Qualified short-term gain" is excess over net long-term capital loss. For (D)—
·§871(k)(2)(D)(i)the RIC's net short-term capital gain includes dividends from other RIC stock, &
·§871(k)(2)(D)(ii)figure such excess without regard to loss from transactions after October 31.
·§881(c)(2)"Portfolio interest" would otherwise be taxed by (a) & is any of the following:
·§881(c)(2)(A)Interest which is paid on any obligation by §871(h)(2)(A).
·§881(c)(2)(B)Interest which is paid on an obligation—
·§881(c)(2)(B)(i)which is in registered form, and
·§881(c)(2)(B)(ii)has a beneficial owner who is not a US person.
·§904(h)(9)For income treated as not from sources within the US under—
·§904(h)(9)(A)§861(a)(1)(A), treat payor of such interest as a US-owned foreign corporation, &
·§904(h)(9)(B)§861(a)(2)(A), treat payor of such dividend as a US-owned foreign corporation.
·§904(i)Apply §§21 - 26 to reduce tax subject to (a) if §26(a)(2) doesn't apply.
·§1014(f)§1014 doesn't apply to decedents whose date of death is after 20091231.
·§1022Treatment of property acquired from a decedent dying after 20091231.
·§1022(a)Except as otherwise provided in §1022—
·§1022(a)(1)property acquired from such a decedent is treated as a gift transfer, and
·§1022(a)(2)the basis of such property in hands of acquiror therefrom is the lesser of—
·§1022(a)(2)(A)the adjusted basis in the hands of the decedent, or
·§1022(a)(2)(B)the FMV of the property at the date of the decedent's death.
·§1022(b)This subsection sets rules for basis increase for certain property.
·§1022(b)(1)If applicable, basis of property by (a) is increased by amount set in (2).
·§1022(b)(2)This paragraph sets the basis increase for purposes of (b).
·§1022(b)(2)(A)Such increase is part of aggregate basis increase related to §1022 property.
·§1022(b)(2)(B)For any estate, aggregate basis increase under (b) is $1.3M.
·§1022(b)(2)(C)Limitation by (B) is increased by—
·§1022(b)(2)(C)(i)sum of carryovers by §1212(b) and §172 from decedent's last TY, plus
·§1022(b)(2)(C)(ii)sum of losses allowed by §165 as if acquired property was sold before death.
·§1022(b)(3)For decedent nonresidents who are not US citizens—
·§1022(b)(3)(A)swap "$60K" for "$1.3M", and
·§1022(b)(3)(B)(2)(C) doesn't apply.
·§1022(c)Rules for additional basis increase for property acquired by surviving spouse.
·§1022(c)(1)For qualified spousal property, basis by (a) is increased by (b) and by (2).
·§1022(c)(2)This paragraph sets the spousal property basis increase.
·§1022(c)(2)(A)Such increase is part of increase by (B) related to §1022 property.
·§1022(c)(2)(B)The aggregate spousal property basis increase is $3M.
·§1022(c)(3)For purposes of (c), "qualified spousal property" is—
·§1022(c)(3)(A)outright transfer property, and
·§1022(c)(3)(B)qualified terminable interest property.
·§1022(c)(4)This paragraph defines "outright transfer property" for purposes of (c).
·§1022(c)(4)(A)Such property is interest in property surviving spouse acquires from decedent.
·§1022(c)(4)(B)(A) doesn't apply if an interest passing to surviving spouse ceases or fails—
·§1022(c)(4)(B)(i)because interest in such property passes from the decedent to any person—
·§1022(c)(4)(B)(i)(I)who is any person other than the surviving spouse, and
·§1022(c)(4)(B)(i)(II)who may possess or enjoy any part of such property after such failure, or
·§1022(c)(4)(B)(ii)if executor of trust is to acquire such interest for the surviving spouse.
·§1022(c)(4)(C)An interest is not terminated or failed by death of surviving spouse if—
·§1022(c)(4)(C)(i)such death occurs within 6 months after decedent's death or by disaster, and
·§1022(c)(4)(C)(ii)such termination or failure does not in fact occur.
·§1022(c)(5)This paragraph defines "qualified terminable interest property".
·§1022(c)(5)(A)Such property is property—
·§1022(c)(5)(A)(i)which passes from the decedent, and
·§1022(c)(5)(A)(ii)in which the surviving spouse has a qualifying income interest for life.
·§1022(c)(5)(B)The surviving spouse has a qualifying income interest for life if—
·§1022(c)(5)(B)(i)such spouse gets payments at least annually or has usufruct interest for life, &
·§1022(c)(5)(B)(ii)no part of such property may be appointed to any person except such spouse.
·§1022(c)(5)(C)"Property" includes an interest in property.
·§1022(c)(5)(D)Treat a specific portion (figured by fractional basis) as separate property.
·§1022(d)This subsection sets definitions and special rules for applying (b) and (c).
·§1022(d)(1)This paragraph sets rules for property to which (b) and (c) apply.
·§1022(d)(1)(A)Basis may be increased by (b) or (c) only if owned by decedent at time of death.
·§1022(d)(1)(B)This subparagraph sets rules relating to ownership.
·§1022(d)(1)(B)(i)For property owned by joint tenants with survivorship rights, the decedent owns—
·§1022(d)(1)(B)(i)(I)50% of property if other such joint tenant is surviving spouse, or
·§1022(d)(1)(B)(i)(II)proportion of property to extent of consideration given to acquire property, and
·§1022(d)(1)(B)(i)(III)proportion based on number of joint tenants for property acquired by gift, &c.
·§1022(d)(1)(B)(ii)Decedent owns property transferred during life to a trust by §645(b)(1).
·§1022(d)(1)(B)(iii)Decedent doesn't own property by holding a power of appointment thereon.
·§1022(d)(1)(B)(iv)Decedent owns ½ share of community property if he owns at least 50% of interest.
·§1022(d)(1)(C)Rules for property acquired by decedent by gift within 3 years of death.
·§1022(d)(1)(C)(i)(b) & (c) doesn't apply to property acquired by gift, &c., in such period.
·§1022(d)(1)(C)(ii)Ignore (i) for property acquired from spouse unless obtained by spouse as gift.
·§1022(d)(1)(D)(b) and (c) doesn't apply to—
·§1022(d)(1)(D)(i)stock or securities of a foreign personal holding company,
·§1022(d)(1)(D)(ii)stock of a DISC or former DISC,
·§1022(d)(1)(D)(iii)stock of a foreign investment company, or
·§1022(d)(1)(D)(iv)stock of a passive foreign investment company unless it is a fund by §1295.
·§1022(d)(2)(b) & (c) do not increase basis above FMV in hands of decedent as of death date.
·§1022(d)(3)This paragraph sets rules for allocation.
·§1022(d)(3)(A)Executor allocates adjustments by (b) and (c) on return required by §6018.
·§1022(d)(3)(B)Allocations of (A) may be changed only as provided by the Secretary.
·§1022(d)(4)This paragraph sets an inflation adjustment of basis adjustment amounts.
·§1022(d)(4)(A)For decedents dying after 2010, amounts in (b) and (c)(2)(B) are increased by—
·§1022(d)(4)(A)(i)such applicable dollar amount, multiplied by
·§1022(d)(4)(A)(ii)the adjustment by §1(f)(3) for such year; swap "2009" for "1992" in such (B).
·§1022(d)(4)(B)Round increase by (A) to the next lowest multiple of—
·§1022(d)(4)(B)(i)$100K in the case of the $1.3M amount,
·§1022(d)(4)(B)(ii)$5K in the case of the $60K amount, and
·§1022(d)(4)(B)(iii)$250K in the case of the $3M amount.
·§1022(e)For §1022, this property is considered to have been acquired from the decedent:
·§1022(e)(1)Property acquired by bequest, &c., or by estate from the decedent.
·§1022(e)(2)Property transferred by the decedent during his lifetime—
·§1022(e)(2)(A)to a qualified revocable trust (as by §645(b)(1)), or
·§1022(e)(2)(B)to any other trust for which the decedent had rights to alter, &c., the trust.
·§1022(e)(3)Any property passing from the decedent without consideration by reason of death.
·§1022(f)§1022 doesn't apply to right to receive income from a decedent under §691.
·§1022(g)This subsection sets rules to disregard certain liabilities.
·§1022(g)(1)Ignore liabilities exceeding basis to figure gain, &c., of property acquisition—
·§1022(g)(1)(A)from a decedent by a decedent's estate or any beneficiary not by (2), and
·§1022(g)(1)(B)from the decedent's estate by any beneficiary not by (2).
·§1022(g)(2)For (1), a "tax-exempt beneficiary" is—
·§1022(g)(2)(A)the US, a State, a US possession, an Indian tribal gov't (§7871), &c.,
·§1022(g)(2)(B)an organization (except by §521) which is exempt from tax imposed by chapter 1,
·§1022(g)(2)(C)any foreign person or entity (as by §168(h)(2)), and
·§1022(g)(2)(D)any recipient of property for the purpose of tax avoidance, per regulations.
·§1022(h)Sec. sets regulations as necessary to carry out the purposes of §1022.
·§1374(d)(7)"Recognition period" is 10 years from beginning of 1st TY of being an S-Corp.
·§1400C(d)A carryforward of unused credit. Carry excess of (a) over, in respect of §26(a)—
·§1400C(d)(1)such (2) (reduced by credits by §§21 - 26 except §25D) to next TY, or
·§1400C(d)(2)such (1) (less §§21 - 26 credit except §§23, 24, 25A(i), 25D, &c.) to next TY.
·§2001(c)(2)This paragraph sets a phasedown of maximum rate of tax.
·§2001(c)(2)(A)If death is between 2002 - 2010, Sec. figures tentative tax as by (1); except—
·§2001(c)(2)(A)(i)maximum rate of tax for any year is determined in table by (B), and
·§2001(c)(2)(A)(ii)brackets and amounts setting tax are adjusted to reflect adjustments by (A).
·§2001(c)(2)(B)Maximum rate is by this table. For 2007 - 2009, rate is 45%.
·§2010(c)Applicable credit amount is tentative tax by §2001(c) as if exclusion is by #.
·§2210This section sets rules of termination.
·§2210(a)Except by (b), chapter 11 doesn't apply to decedents dying after 20091231.
·§2210(b)To apply §2056A to the surviving spouse of a decedent dying before 20100101—
·§2210(b)(1)§2056A(b)(1)(A) doesn't apply to distributions made after 20201231, and
·§2210(b)(2)§2056A(b)(1)(B) doesn't apply after 20091231.
·§2664Chapter 13 doesn't apply to generation-skipping transfers after 20091231.
·§3101(b)For Medicare, employment (§3121(b)) wages (§3121(a)) are taxed at these rates:
·§3101(b)(1)For wages received between 1974 and 1977, the rate is 0.90%.
·§3101(b)(2)For wages received in calendar year 1978, the rate is 1.00%.
·§3101(b)(3)For wages received between 1979 and 1980, the rate is 1.05%.
·§3101(b)(4)For wages received between 1981 and 1984, the rate is 1.30%.
·§3101(b)(5)For wages received in calendar year 1985, the rate is 1.35%.
·§3101(b)(6)For wages received after 19851231, the rate is 1.45%.
·§3303(f)State may exempt certain electing entities from making required payments until—
·§3303(f)(1)contributions paid by such entity for period before §3309(a)(2) election exceeds
·§3303(f)(2)unemployment compensation in such period paid under State law, &c.
·§3303(g)State may exempt entities subject to §3309(a)(1)(A) from making payments until—
·§3303(g)(1)contributions paid by such entity for period before §3309(a)(2) election exceeds
·§3303(g)(2)unemployment compensation in such period paid under State law, &c.
·§3402(t)Extension of withholding to certain payments made by Government entities.
·§3402(t)(1)Gov't of US, States, &c., deducts 3% of payments to persons as tax withholding.
·§3402(t)(2)(1) doesn't apply to any payment—
·§3402(t)(2)(A)except by (B), subject to withholding under any rule by chapters 3 or 24,
·§3402(t)(2)(B)subject to withholding under §3406 & from which amounts are withheld thereunder,
·§3402(t)(2)(C)of interest,
·§3402(t)(2)(D)for real property,
·§3402(t)(2)(E)to any gov't entity subject to (1), any tax-exempt entity, or any foreign gov't,
·§3402(t)(2)(F)under a classified or confidential contract by §6050M(e)(3),
·§3402(t)(2)(G)made by a State subdivision making less than $100M of such payments annually,
·§3402(t)(2)(H)related to a welfare program for which income or need determines eligibility, &
·§3402(t)(2)(I)to any gov't employee not otherwise excludable in respect of such service.
·§3402(t)(3)For subtitle F, treat payments subject to withholding as if paid by employer.
·§3507This section discusses advance payment of earned income credit.
·§3507(a)If (b) certificate is in effect, employer adds (c) amount to wages paid.
·§3507(b)An earned income eligibility certificate is given from employee to employer and—
·§3507(b)(1)certifies the employee as eligible to receive credit by §32 for the TY,
·§3507(b)(2)certifies the employee as having 1 or more children by §32(c)(3) for such TY,
·§3507(b)(3)certifies employee as having no other such certificate with another employer, &
·§3507(b)(4)states if employee's spouse has such a certificate in effect.
·§3507(c)This subsection sets the "earned income advance amount".
·§3507(c)(1)For 26 USC, such amount is determined for any payroll period—
·§3507(c)(1)(A)on basis of employee's wages from employer for such period, and
·§3507(c)(1)(B)in accordance with tables prescribed by the Secretary.
·§3507(c)(2)The tables referred to in (1)(B)—
·§3507(c)(2)(A)are similar to those by §3402 and coordinated to maximum feasible extent, and
·§3507(c)(2)(B)if employee is unwed, or spouse has no (b) certificate, treat §32 credit as if—
·§3507(c)(2)(B)(i)it is 60% of rate by §32(b)(1) for person with 1 child on income by §32(b)(2), &
·§3507(c)(2)(B)(ii)as if (i) amount phases out at 60% of phaseout rate by §32(b)(1), or
·§3507(c)(2)(C)treat §32 credit as ½ of (B) amount if spouse has effective (b) certificate.
·§3507(d)Rules for payments to be treated as payments of withholding and FICA taxes.
·§3507(d)(1)For 26 USC, payments made by employer to employee under (a) in a payroll period—
·§3507(d)(1)(A)are not treated as payment of compensation, and
·§3507(d)(1)(B)are treated as made from & paid to Sec., in respect of such payroll period, for—
·§3507(d)(1)(B)(i)amounts required to be deducted and withheld under §3401,
·§3507(d)(1)(B)(ii)amounts required to be deducted under §3102, and
·§3507(d)(1)(B)(iii)amounts of taxes imposed under §3111.
·§3507(d)(2)Payments exceeding (1)(B) sum is reduced by ratio of excess to all payments.
·§3507(d)(3)Sec. sets rules for which employer may elect (in lieu of applying (2))—
·§3507(d)(3)(A)to pay in full all earned income advance amounts, and
·§3507(d)(3)(B)to treat additional amounts paid under (3) as advance payment of 26 USC taxes.
·§3507(d)(4)Treat failure to make advance payments as failure to withhold tax by chapter 24.
·§3507(e)Rules for furnishing and the taking effect of certificates.
·§3507(e)(1)This paragraph sets rules for when certificate takes effect.
·§3507(e)(1)(A)1st certificate given is effective as of 1st payroll period ending afterward.
·§3507(e)(1)(B)Other certificates apply as of 1st such period ending after determination date.
·§3507(e)(2)Certificates are effective until revoked or another certificate is effective.
·§3507(e)(3)This paragraph sets rules for change of status.
·§3507(e)(3)(A)Employee gives new (or revokes current) certificate if circumstances—
·§3507(e)(3)(A)(i)make the employee ineligible for credit by §32 for the TY, or
·§3507(e)(3)(A)(ii)cause an earned income eligibility to be in effect for employee's spouse.
·§3507(e)(3)(B)Employee may give new certificate if made for spouse and not effective.
·§3507(e)(4)Sec. sets rules for form and information required in eligibility certificates.
·§3507(e)(5)The "TY" is employee's last TY under subtitle A in year of wage payment.
·§3507(f)IRS notifies recipients of credit by §32 of advance amounts given by §3507.
·§4980H(b)(3)(1) doesn't apply to any month employer offers voucher by §10108 of PL 111-148.
·§4980H(d)(2)(D)For an employer with substantial receipts from the construction industry, apply—
·§4980H(d)(2)(D)(i)"employer has 5 (4) employees whose prior year payroll exceeds $250K" for (A), &
·§4980H(d)(2)(D)(ii)"5" for "50" in each instance "50" appears in (B).
·§4980I(b)(3)(D)This subparagraph sets a transition rule for states with highest coverage costs.
·§4980I(b)(3)(D)(i)Such limitation for residents of (iii) States is adjusted by (ii) rate.
·§4980I(b)(3)(D)(ii)Applicable percentage is 120% for 2013, 110% for 2014, and 105% for 2015.
·§4980I(b)(3)(D)(iii)A "high cost State" is each of 17 States with highest cost for (d)(1) coverage.
·§4982(e)(5)Account §988 transactions occurring after October 31 in next calendar year.
·§4982(e)(6)To figure a regulated investment company's ordinary income—
·§4982(e)(6)(A)§1296 is applied as if such company's taxable year ends on October 31, and
·§4982(e)(6)(B)apply disposition of stock in a §1297 company after such date to next year.
·§5000A(c)(4)(D)This subparagraph defines the "poverty line".
·§5000A(c)(4)(D)(i)The poverty line is determined under §2110(c)(5) of SSA (42 USC §1397jj(c)(5)).
·§5000A(c)(4)(D)(ii)Line for a TY is that most recently published at 1st of year ending therein.
·§5081This section sets the imposition and rate of tax.
·§5081(a)A tax of $1K per year is imposed on every proprietor of—
·§5081(a)(1)a distilled spirits plant,
·§5081(a)(2)a bonded wine cellar,
·§5081(a)(3)a bonded wine warehouse, or
·§5081(a)(4)a taxpaid wine bottling house.
·§5081(b)This subsection sets reduced rates for small proprietors.
·§5081(b)(1)Swap "$500" for "$1K" in (a) if receipts in applicable period is within $500K.
·§5081(b)(2)For (1), treatment of persons under §5061(e)(3) applies.
·§5081(b)(3)For (1), apply rules similar to those by (B) and (C) of §448(c)(3).
·§5081(c)(a) doesn't apply to proprietors of eligible plants by §5181(c)(4).
·§5091This section sets the imposition and rate of tax.
·§5091(a)Every brewer pays $1000 per year in respect of each brewery.
·§5091(b)Rules by §5081(b) apply for purposes of (a).
·§5092Persons who brew beer and produce beer for sale are considered brewers.
·§5093This section sets cross references. See:
·§5093(1)§5113(a) for brewer's exemption from special tax as wholesale and retail dealer.
·§5093(2)§5143(c) special tax liability for carrying business in multiple locations.
·§5093(3)§5113(c) for exemption from tax on sales made on purchaser dearlers' premises.
·§5111This section sets the imposition and rate of tax.
·§5111(a)Wholesale dealers in liquors pay a special tax of $500 per year.
·§5111(b)Wholesale dealers in beer pay a special tax of $500 per year.
·§5113This section discusses exemptions.
·§5113(a)Tax by §5111 or §5121 doesn't apply to spirits, &c., sold from where produced.
·§5113(b)§5111 tax may not apply to sales to dealers by certain stores run by State, &c.
·§5113(c)Rules for casual sales. A person isn't considered a dealer by reason of:
·§5113(c)(1)Receipt of spirits as security for debt or as executor, &c., by order of court.
·§5113(c)(2)Sale of spirits as a retiring partner to remaining or incoming partners.
·§5113(c)(3)Bona fide return of spirits to the selling dealer; §5117 doesn't apply.
·§5113(d)Rules for sales by wholesale dealers on wholesale or retail dealer's premises.
·§5113(d)(1)§5111(a) tax is not reimposed for sales of spirits at purchaser's premises.
·§5113(d)(2)§5111(b) tax is not reimposed for sales of beer at purchaser's premises.
·§5113(e)A retail dealer isn't a wholesale dealer due to liquidation of entire stock.
·§5113(f)Sales to limited retail dealers as by §5122(c). Tax by §5111 doesn't apply to:
·§5113(f)(1)Retail dealers in liquors who pay §5121(a) tax for sale to such dealers.
·§5113(f)(2)Retail dealers in beer who pay §5121(b) tax for sale to such dealers.
·§5113(g)§5111(a) tax doesn't apply to activity at any place if tax by §5111(b) is paid.
·§5121This section sets the imposition and rate of tax.
·§5121(a)Retail dealers in liquors pay a special tax of $250 per year.
·§5121(b)Retail dealers in beer pay a special tax of $250 per year.
·§5123This section discusses exemptions.
·§5123(a)This subsection sets rules for wholesale dealers.
·§5123(a)(1)Tax by §5121 doesn't apply due to sale of spirits for which §5111(a) applies.
·§5123(a)(2)Tax by §5121 doesn't apply due to sale of beer for which §5111(b) applies.
·§5123(b)This subsection sets rules for business conducted in more than one location.
·§5123(b)(1)A retail dealer may procure a tax stamp which covers activities within US.
·§5123(b)(2)Nothing in chapter 51 prevents the issue of such special tax stamps to—
·§5123(b)(2)(A)retail dealers on trains, aircraft, or other vessels which carry passengers; or
·§5123(b)(2)(B)retail dealers which exclusively supply vessels at a port or harbor.
·§5123(b)(3)A State, &c., isn't required to pay more than one tax as a dealer by §5121(a).
·§5123(c)§5121(a) tax doesn't apply to activity at any place if tax by §5121(b) is paid.
·§5123(d)This subsection sets cross references. See:
·§5123(d)(1)§5113(a) for exemption of proprietors from special tax as dealers.
·§5123(d)(2)§5113(c)(1) for sales by creditors, fiduciaries, and officers of courts.
·§5123(d)(3)§5113(c)(2) for sales by retiring partners to incoming or remaining partners.
·§5123(d)(4)§5113(c)(3) for return of liquors for credit, refund, or exchange.
·§5123(d)(5)§5113(e) for sales by retail dealers in liquidation.
·§5124This section discusses records.
·§5124(a)Retail dealers forfeit and keep records and invoices of spirits, &c., received.
·§5124(b)Retail dealers may be required to keep records or disposed spirits, &c.
·§5124(c)See §5146 for preservation and entry of premises for inspection.
·§5125This section sets cross references. See:
·§5125(1)§5117 for rules relating to prohibited purchases by dealers.
·§5125(2)§5691(b) for liability as wholesale dealer for sale of 20 wine gallons or more.
·§5141See §7011(a) for registration of persons in business subject to special tax.
·§5142This section discusses the payment of tax.
·§5142(a)No business subject to part II is engaged until applicable special tax is paid.
·§5142(b)Part II taxes are imposed as of July 1 of each year or when business commences.
·§5142(c)This subsection sets rules for the method of payment.
·§5142(c)(1)Part II taxes are paid on basis of return per Secretary's regulations.
·§5142(c)(2)Sec. issues appropriate stamp to denote proper tax payment & return execution.
·§5147Subpart G applies to other subparts of part II and persons subject to tax.
·§5148This section discusses the suspension of occupational tax.
·§5148(a)Tax under §§5081, 5091, 5111, 5121, and 5131 is 0 during the suspension period.
·§5148(b)For (a), the suspension period is between 20050701 and 20080630.
·§5149This section sets cross references. See:
·§5149(1)§5691 for penalties for willful nonpayment of special taxes.
·§5149(2)Subchapter J for penalties generally applicable to subpart G.
·§5149(3)Subtitle F for penalties, assessments, and other rules applicable to part II.
·§5691This section sets penalties for nonpayment of special taxes.
·§5691(a)Up to $5K fine or 2 year jail term applies if tax by §5276, &c., is unpaid.
·§5691(b)Sale of 20 gallons or more of spirits, &c., is evidence of being a dealer.
·§5731(c)Rules similar to those by §§5141 - 5149 apply for purposes of §5731.
·§6012(a)(8)Every individual receiving payments in the year in which §3507 applies.
·§6041(h)This subsection sets the treatment of rental property expense payments.
·§6041(h)(1)For (a), recipient of real estate rental income is in trade of renting property.
·§6041(h)(2)(1) doesn't apply to any individual—
·§6041(h)(2)(A)and USAF members, &c., if income is from temporary rent of principal residence,
·§6041(h)(2)(B)who receives rental income within minimal amount set by Sec.'s regulations, and
·§6041(h)(2)(C)for whom the requirements of §6041 would cause hardship, per Sec.'s regulations.
·§6041(i)For §6041, a "person" includes any organization not exempt from tax by §501(a).
·§6041(j)Sec. sets rules for §6041 and to prevent duplicative transaction reporting.
·§6051(a)(7)the total amount paid to the employee under §3507,
·§6056(b)(2)(C)(v)option for which (f)(1) employer pays the largest portion of plan cost,
·§6056(f)This subsection sets definitions for purposes of §6056.
·§6056(f)(1)This paragraph defines an "offering employer".
·§6056(f)(1)(A)Employer is by §10108(b) of PL 111-148 if §5000A(e)(1)(B) exceeds 8% of wages.
·§6056(f)(1)(B)After 2014, 8% rate by (A) is adjusted to reflect the rate of premium growth.
·§6302(i)See §3507(d) for treatment of earned income advances as payment of FICA tax, &c.
·§6402(f)(3)(1) applies if address shown on Federal return is within State seeking offset.
·§6402(f)(8)§6402 doesn't apply to refunds payable after 20180930.
·§6409Refunds under 26 USC disregarded in the administration of Federal programs.
·§6409(a)Such refunds are not income for 12 months to figure Federal program eligibility.
·§6409(b)(a) doesn't apply to any amount received after 20121231.
·§6428Acceleration of 10% income tax rate bracket benefit for 2001.
·§6428(a)Individuals by (c) receive credit against chapter 1 tax for 1st TY in 2001.
·§6428(b)Such credit is 5% of §1(i)(1)(B) amount and is considered as under §§21 - 26.
·§6428(c)For §6428, an "eligible individual" is any individual except—
·§6428(c)(1)any estate or trust,
·§6428(c)(2)any nonresident alien individual, and
·§6428(c)(3)any individual for which another taxpayer may take deduction by §151 for the TY.
·§6428(d)This subsection sets coordination with advance refunds of credit.
·§6428(d)(1)Credit under §6428 is reduced by refunds allowed under (e).
·§6428(d)(2)Half of refund by (e) is considered given to individual from a joint return.
·§6428(e)Rules for advance refunds based on prior year data.
·§6428(e)(1)Individuals by (a) make chapter 1 tax payment of amount by (2) for the TY.
·§6428(e)(2)For (1), the advance refund amount is that allowed by §6428 for the 1st TY if—
·§6428(e)(2)(A)§6428 (except (b), (d), & (e)) had applied to such taxable year, and
·§6428(e)(2)(B)the credit for such taxable year was limited to any excess of—
·§6428(e)(2)(B)(i)the sum of the regular liability (§26(b)) plus tax imposed by §55, over
·§6428(e)(2)(B)(ii)total credits by §§21 - 54 (except §§31 - 36).
·§6428(e)(3)Refund is made as soon as possible before 20011001 & disallowed after 20011231.
·§6428(e)(4)No interest is allowed on any overpayment attributable to (e).
·§6707A(b)This subsection sets the amount of penalty.
·§6707A(b)(1)Except by (2), penalty imposed by (a) is—
·§6707A(b)(1)(A)$10000 in the case of a natural person, and
·§6707A(b)(1)(B)$50000 in any other case.
·§6707A(b)(2)Penalty imposed by (a) in respect to a listed transaction is—
·§6707A(b)(2)(A)$100000 in the case of a natural person, and
·§6707A(b)(2)(B)$200000 in any other case.
·§6716Failure to file information regarding certain transfers at death and gifts.
·§6716(a)Penalty of $10K applies to failure to file data by §6018 ($500 for such (b)(2)).
·§6716(b)Penalty of $50 is imposed per failure to furnish data by §6018(e) or §6019(b).
·§6716(c)Penalty by (a) or (b) isn't imposed if failure is due to reasonable cause.
·§6716(d)Penalty by (a) or (b) is 5% of property FMV if failure is intentional.
·§6716(e)§§6211 - 6216 doesn't apply for assessment or collection of penalty by §6716.
·§6722This section discusses failure to furnish correct payee statements.
·§6722(a)Penalty of $50 (up to $100K) is imposed for each failure by (b).
·§6722(b)For (a), the failures described by (b) are any failure—
·§6722(b)(1)to furnish a statement to the payee within date prescribed therefor, and
·§6722(b)(2)to include all correct information required shown on such payee statement.
·§6722(c)For each failure by (a) which is due to intentional disregard—
·§6722(c)(1)penalty imposed by (a) is $100, or, if greater, regarding payee statement—
·§6722(c)(1)(A)not by §§6045(b), 6041A(e), 6050H(d), &c., 10% of items required reported, or
·§6722(c)(1)(B)under §§6045(b), 6050K(b), or 6050L(c), 5% of items required reported, and
·§6722(c)(2)in the case of penalty determined under (1)—
·§6722(c)(2)(A)the $100K limitation under (a) doesn't apply, and
·§6722(c)(2)(B)such penalty isn't accounted to apply limitation to penalties not by (1).
·§6697This section discusses assessable penalties for RIC tax liability.
·§6697(a)RICs pay a penalty of any interest on tax increased by §860(c)(1)(A).
·§6697(b)Penalty by §6697 is limited to ½ of deduction allowed by §860(a) for such TY.
·§6697(c)§§6211 - 6216 doesn't apply for assessment or collection of penalty by (a).
·§7471(a)Tax Court may, subject to 5 USC, &c., appoint employees to execute functions.
·§7527(d)Certificate by (c) is a written statement of eligibility by §35(c) and—
·§7527(d)(1)is certified by the Secretary of Labor (if (2) or (3) of §35(c) applies), or
·§7527(d)(2)is certified by the PBGC (if §35(c)(4) applies).
·§7701(a)(47)An "executor" is the executor of estate or possessor of decedent's property.
·§7701(n)Special rules to figure when status as US citizen or long-term resident ends.
·§7701(n)(1)An individual continues to be treated as a US citizen until such individual—
·§7701(n)(1)(A)notifies Sec. of State of expatriating act (with intent to end citizenship), and
·§7701(n)(1)(B)provides a statement in accordance with §6039G (if otherwise required).
·§7701(n)(2)Resident by §877(e)(2) who would meet §877(e)(1) is considered a resident until—
·§7701(n)(2)(A)he gives notice of residency termination to the Sec. of Homeland Security, and
·§7701(n)(2)(B)he provides a statement in accordance with §6039G (if otherwise required).
·§9009(a)(4)costs a national committee of a party incurs regarding a nominating convention;
·§9009(a)(5)amounts certified by §9008(g) for payment to each national committee; and
·§9009(a)(6)any payments required from such candidates (and reason therefor) under §9008(h).
·§9012(c)(2)Payment received by §9008(b)(3) may only be used for purposes by §9008(c).
·§9503(c)(2)Transfers from Highway Trust Fund for certain repayments and credits.
·§9503(c)(2)(A)Sec. may pay from such Fund into general fund of Treasury amounts equal to—
·§9503(c)(2)(A)(i)the amounts paid before 20120701 and claimed before 20111001 under—
·§9503(c)(2)(A)(i)(I)§6420 (relating to amounts paid in respect of gasoline used on farms),
·§9503(c)(2)(A)(i)(II)§6421 (relating to amounts paid in respect of gasoline for nonhighway use), and
·§9503(c)(2)(A)(i)(III)§6427 (relating to fuels not used for taxable purposes), and
·§9503(c)(2)(A)(ii)credit under §34 regarding fuel used before 20111001.
·§9503(c)(2)(B)Transfers by (A) are based on Sec.'s estimates, subject to proper adjustments.
·§9503(c)(2)(C)(2) doesn't apply to amounts related to use of fuel by motorboats or aircraft.
·§9503(f)(1)(A)The opening balance of the Highway Trust Fund by (e)(5)(A) on 19981001 is $8B, &
·§9503(f)(1)(B)despite §9602(b), obligations held after 19980930 are non-interest US notes.
·§9503(f)(2)Highway Trust Fund is appropriated $7B from unappropriated Treasury money.
·§9812(c)This subsection sets exemptions. §9812 doesn't apply to a group health plan:
·§9812(c)(1)For any plan year of a small employer (§4980D(d)(2)).
·§9812(c)(2)If application of §9812 results in at least a 1% increase of plan cost.
·§9812(f)§9812 doesn't apply to benefits for services furnished—
·§9812(f)(1)on or after 20010930 and before 20020110,
·§9812(f)(2)on or after 20040101 and before 20041004, and
·§9812(f)(3)after 20071231.
Rules and abbreviations. Table of Contents - 26 USC The OneLine Tax Code.
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