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Title 26, Internal Revenue CodeRelease 119-102

§891 Doubling of Rates of Tax on Citizens and Corporations of Certain Foreign Countries

Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter N — Tax Based on Income From Sources Within or Without the United States › PART II — NONRESIDENT ALIENS AND FOREIGN CORPORATIONS › Subpart D — Miscellaneous Provisions › § 891

Last updated Aug 21, 2026|Official source

Summary

If the President finds a foreign country is taxing U.S. citizens or companies unfairly or beyond its borders, he must proclaim it. For the taxable year of that proclamation and every year after, the tax rates in sections 1, 3, 11, 801, 831, 852, 871, and 881 that apply to citizens and corporations of that foreign country are doubled and treated as if imposed by those sections. The higher tax cannot make the taxpayer pay more than 80 percent of taxable income, calculated without the increase and without counting deductions allowed by section 151 and by part VIII of subchapter B. If the President later proclaims the foreign laws were fixed, the doubling stops for taxable years that begin after that proclamation.

Full Legal Text

Title 26, §891

Internal Revenue Code, Source: USLM XML via OLRC

Whenever the President finds that, under the laws of any foreign country, citizens or corporations of the United States are being subjected to discriminatory or extraterritorial taxes, the President shall so proclaim and the rates of tax imposed by section 1, 3, 11, 801, 831, 852, 871, and 881 shall, for the taxable year during which such proclamation is made and for each taxable year thereafter, be doubled in the case of each citizen and corporation of such foreign country; but the tax at such doubled rate shall be considered as imposed by such sections as the case may be. In no case shall this section operate to increase the taxes imposed by such sections (computed without regard to this section) to an amount in excess of 80 percent of the taxable income of the taxpayer (computed without regard to the deductions allowable under section 151 and under part VIII of subchapter B). Whenever the President finds that the laws of any foreign country with respect to which the President has made a proclamation under the preceding provisions of this section have been modified so that discriminatory and extraterritorial taxes applicable to citizens and corporations of the United States have been removed, he shall so proclaim, and the provisions of this section providing for doubled rates of tax shall not apply to any citizen or corporation of such foreign country with respect to any taxable year beginning after such proclamation is made.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1986—Pub. L. 99–514 struck out reference to section 821. 1984—Pub. L. 98–369 substituted “801” for “802”. 1959—Pub. L. 86–69 struck out reference to section 811. 1956—Act Mar. 13, 1956, inserted reference to section 811.

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 1024(e) of Pub. L. 99–514, set out as a note under section 831 of this title.

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as an

Effective Date

note under section 801 of this title.

Effective Date

of 1959 AmendmentAmendment by Pub. L. 86–69 applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 4 of Pub. L. 86–69, set out an

Effective Date

note under section 381 of this title.

Effective Date

of 1956 AmendmentAmendment by act Mar. 13, 1956, applicable only to taxable years beginning after Dec. 31, 1954, see section 6 of act Mar. 13, 1956, set out as a note under section 316 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 891

Title 26, Internal Revenue Code

Last Updated

Aug 21, 2026

Release point: 119-102