§1379 Transitional rules on enactment

Summary

If a company chose S-corporation status under the rules in effect before the 1982 changes, that choice is treated as if it were made under the new rules. References in this part of the tax code can also include the matching pre-1982 rules when that makes sense. If a company was an electing small business corporation in its last taxable year that began before January 1, 1983, two prior rules about undistributed taxable income keep applying for any taxable year starting before January 1, 1983. Any carryforwards from years when the company was under the old rules are treated as arising in the first taxable year that begins after December 31, 1982.