§1379 Transitional Rules on Enactment

Summary

Treat any election made under section 1372(a) as if it were made under section 1362. When the tax rules in this subchapter mention an old provision, they also cover the matching version that existed before the Subchapter S Revision Act of 1982, unless that would clash with the subchapter’s purpose. If a corporation was an electing small business corporation in its last preenactment year, the old parts (subsections (f) and (d) of section 1375 as they used to be) keep applying to distributions of undistributed taxable income for any taxable year that begins before January 1, 1983. If that corporation is an S corporation in its 1st postenactment year, any carryforward that came from a year it was an electing small business corporation must be treated as arising in the 1st postenactment year. "Last preenactment year" means the last taxable year that begins before January 1, 1983. "1st postenactment year" means the first taxable year that begins after December 31, 1982.