Title 26 — Internal Revenue CodeRelease 119-73

§1373 Foreign income

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter S— - Tax Treatment of S Corporations and Their Shareholders › Part PART III— - SPECIAL RULES › § 1373

Last updated Apr 6, 2026|Official source

Summary

For subparts A and F of part III, and part V, of subchapter N (rules about income from sources outside the United States), an S corporation must be treated like a partnership and its shareholders must be treated like partners. For section 904(f) (relating to recapture of overall foreign loss), making or ending an election to be treated as an S corporation must be treated as a disposition of the business.

Full Legal Text

Title 26, §1373

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of subparts A and F of part III, and part V, of subchapter N (relating to income from sources without the United States)—

(1)an S corporation shall be treated as a partnership, and

(2)the shareholders of such corporation shall be treated as partners of such partnership.

(b)For purposes of section 904(f) (relating to recapture of overall foreign loss), the making or termination of an election to be treated as an S corporation shall be treated as a disposition of the business.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1373, added Pub. L. 85–866, title I, § 64(a), Sept. 2, 1958, 72 Stat. 1652; amended Pub. L. 89–389, § 2(b)(3), Apr. 14, 1966, 80 Stat. 114; Pub. L. 91–172, title III, § 301(b)(10), Dec. 30, 1969, 83 Stat. 586, related to taxation of corporation undistributed taxable income to shareholders, prior to the general revision of this subchapter by section 2 of Pub. L. 97–354.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to taxable years beginning after Dec. 31, 1982, see section 6(a) of Pub. L. 97–354, set out as a note under section 1361 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 1373

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73