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Title 26 — Internal Revenue CodeRelease 119-73not60

§1379 Transitional Rules on Enactment

Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 1— NORMAL TAXES AND SURTAXES › Subchapter S— Tax Treatment of S Corporations and Their Shareholders › Part IV— DEFINITIONS; MISCELLANEOUS › § 1379

Last updated Apr 5, 2026|Official source

Summary

Old S‑corporation elections made before the 1982 revision must count as elections under the updated S‑corporation rule. Tax code references to subchapter provisions also cover the matching pre‑1982 versions unless they conflict. If a corporation was an electing small business corporation in the last preenactment year, section 1375(d) and 1375(f) still apply to undistributed taxable income and pre‑revision carryforwards. Last preenactment year = last taxable year beginning before January 1, 1983. 1st postenactment year = first taxable year beginning after December 31, 1982.

Full Legal Text

Title 26, §1379

Internal Revenue Code — Source: USLM XML via OLRC

(a)Any election made under section 1372(a) (as in effect before the enactment of the Subchapter S Revision Act of 1982) shall be treated as an election made under section 1362.
(b)Any references in this title to a provision of this subchapter shall, to the extent not inconsistent with the purposes of this subchapter, include a reference to the corresponding provision as in effect before the enactment of the Subchapter S Revision Act of 1982.
(c)If a corporation was an electing small business corporation for the last preenactment year, subsections (f) and (d) of section 1375 (as in effect before the enactment of the Subchapter S Revision Act of 1982) shall continue to apply with respect to distributions of undistributed taxable income for any taxable year beginning before January 1, 1983.
(d)If a corporation was an electing small business corporation for the last preenactment year and is an S corporation for the 1st postenactment year, any carryforward to the 1st post­enactment year which arose in a taxable year for which the corporation was an electing small business corporation shall be treated as arising in the 1st postenactment year.
(e)For purposes of this subsection—
(1)The term “last preenactment year” means the last taxable year of a corporation which begins before January 1, 1983.
(2)The term “1st postenactment year” means the 1st taxable year of a corporation which begins after December 31, 1982.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The enactment of the Subchapter S Revision Act of 1982, referred to in subsecs. (a) to (c), is the enactment of Pub. L. 97–354, which was approved Oct. 19, 1982.

Prior Provisions

A prior section 1379, added Pub. L. 91–172, title V, § 531(a), Dec. 30, 1969, 83 Stat. 654; amended Pub. L. 93–406, title II, § 2001(b), Sept. 2, 1974, 88 Stat. 952; Pub. L. 97–34, title III, § 312(c)(6), Aug. 13, 1981, 95 Stat. 284; Pub. L. 97–248, title II, § 238(c), Sept. 3, 1982, 96 Stat. 513, related to certain qualified pension, etc., plans, prior to the general revision of this subchapter by section 2 of Pub. L. 97–354.

Amendments

1984—Subsec. (b). Pub. L. 98–369 struck out “In applying this subchapter to any taxable year beginning after December 31, 1982,” and substituted “Any references in this title to a provision” for “any reference in this subchapter to another provision”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–369 effective as if included in Subchapter S Revision Act of 1982, Pub. L. 97–354, see section 721(y)(1) of Pub. L. 98–369, set out as a note under section 1361 of this title.

Effective Date

Section applicable to taxable years beginning after Dec. 31, 1983, except that this section as in effect before Oct. 19, 1982, to remain in effect for years beginning before Jan. 1, 1984, see section 6(a), (b)(1) of Pub. L. 97–354, set out as a note under section 1361 of this title. Coordination of

Repeals

of Certain SectionsSubsec. (b) of this section as in effect on day before Sept. 3, 1982, inapplicable to any section 401(j) plan, see section 713(d)(8) of Pub. L. 98–369, set out as a note under section 404 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 1379

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60