Amendments
2018—Subsec. (a)(3). Pub. L. 115-141 struck out concluding provisions which read as follows: “For treatment of certain citizens of possessions of the United States, see section 932(c).”
2015—Subsec. (k)(1)(C)(v). Pub. L. 114-113 struck out cl. (v). Text read as follows: “The term ‘interest related dividend’ shall not include any dividend with respect to any taxable year of the company beginning after December 31, 2014.”
Subsec. (k)(2)(C)(v). Pub. L. 114-113 struck out cl. (v). Text read as follows: “The term ‘short-term capital gain dividend’ shall not include any dividend with respect to any taxable year of the company beginning after December 31, 2014.”
2014—Subsec. (a)(1)(B). Pub. L. 113-295, § 221(a)(71), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “gains described in section 631(b) or (c), and gains on transfers described in section 1235 made on or before October 4, 1966,”.
Subsec. (k)(1)(C)(v), (2)(C)(v). Pub. L. 113-295, § 132(a), substituted “December 31, 2014” for “December 31, 2013”.
2013—Subsec. (k)(1)(C)(v), (2)(C)(v). Pub. L. 112-240 substituted “December 31, 2013” for “December 31, 2011”.
2010—Subsec. (h)(2). Pub. L. 111-147, § 502(b)(1), amended par. (2) generally. Prior to amendment, par. (2) defined portfolio interest to also include interest on certain obligations not in registered form.
Subsec. (h)(3)(A). Pub. L. 111-147, § 502(b)(2)(A), struck out “subparagraph (A) or (B) of” before “paragraph (2)”.
Subsec. (i)(2)(B). Pub. L. 111-226, § 217(b)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “A percentage of any dividend paid by a domestic corporation meeting the 80-percent foreign business requirements of section 861(c)(1) equal to the percentage determined for purposes of section 861(c)(2)(A).”
Subsec. (k)(1)(A). Pub. L. 111-325, § 302(b)(2), inserted “which meets the requirements of section 852(a) for the taxable year with respect to which the dividend is paid” before period at end.
Subsec. (k)(1)(C). Pub. L. 111-325, § 301(f)(1), substituted introductory provisions, cls. (i) to (iv), and cl. (v) heading and “The term ‘interest related dividend’ shall not include any dividend with respect to” for “For purposes of this paragraph, the term ‘interest-related dividend’ means any dividend (or part thereof) which is designated by the regulated investment company as an interest-related dividend in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year. If the aggregate amount so designated with respect to a taxable year of the company (including amounts so designated with respect to dividends paid after the close of the taxable year described in section 855) is greater than the qualified net interest income of the company for such taxable year, the portion of each distribution which shall be an interest-related dividend shall be only that portion of the amounts so designated which such qualified net interest income bears to the aggregate amount so designated. Such term shall not include any dividend with respect to”.
Pub. L. 111-312, § 748(a), substituted “December 31, 2011” for “December 31, 2009”.
Subsec. (k)(2)(A). Pub. L. 111-325, § 302(b)(2), inserted “which meets the requirements of section 852(a) for the taxable year with respect to which the dividend is paid” before period at end.
Subsec. (k)(2)(C). Pub. L. 111-325, § 301(f)(2), substituted introductory provisions, cls. (i) to (iv), and cl. (v) heading and “The term ‘short-term capital gain dividend’ shall not include any dividend with respect to” for “For purposes of this paragraph, the term ‘short-term capital gain dividend’ means any dividend (or part thereof) which is designated by the regulated investment company as a short-term capital gain dividend in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year. If the aggregate amount so designated with respect to a taxable year of the company (including amounts so designated with respect to dividends paid after the close of the taxable year described in section 855) is greater than the qualified short-term gain of the company for such taxable year, the portion of each distribution which shall be a short-term capital gain dividend shall be only that portion of the amounts so designated which such qualified short-term gain bears to the aggregate amount so designated. Such term shall not include any dividend with respect to”.
Pub. L. 111-312, § 748(a), substituted “December 31, 2011” for “December 31, 2009”.
Subsec. (k)(2)(D). Pub. L. 111-325, § 308(b)(3), substituted “For purposes of this subparagraph, the net short-term capital gain of the regulated investment company shall be computed by treating any short-term capital gain dividend includible in gross income with respect to stock of another regulated investment company as a short-term capital gain.” for “For purposes of this subparagraph—
“(i) the net short-term capital gain of the regulated investment company shall be computed by treating any short-term capital gain dividend includible in gross income with respect to stock of another regulated investment company as a short-term capital gain, and
“(ii) the excess of the net short-term capital gain for a taxable year over the net long-term capital loss for a taxable year (to which an election under section 4982(e)(4) does not apply) shall be determined without regard to any net capital loss or net short-term capital loss attributable to transactions after October 31 of such year, and any such net capital loss or net short-term capital loss shall be treated as arising on the 1st day of the next taxable year.
To the extent provided in regulations, clause (ii) shall apply also for purposes of computing the taxable income of the regulated investment company.”
Subsec. (l). Pub. L. 111-226, § 217(b)(2), added subsec. (l). Former subsec. (l) redesignated (m).
Pub. L. 111-147, § 541(a), added subsec. (l). Former subsec. (l) redesignated (m).
Subsec. (m). Pub. L. 111-226, § 217(b)(2), redesignated subsec. (l) as (m). Former subsec. (m) redesignated (n).
Pub. L. 111-147, § 541(a), redesignated subsec. (l) as (m).
Subsec. (n). Pub. L. 111-226, § 217(b)(2), redesignated subsec. (m) as (n).
2008—Subsec. (k)(1)(C), (2)(C). Pub. L. 110-343 substituted “December 31, 2009” for “December 31, 2007”.
2006—Subsec. (k)(2)(E). Pub. L. 109-222 added subpar. (E).
2004—Subsec. (i)(2)(D). Pub. L. 108-357, § 409(a), added subpar. (D).
Subsecs. (k), (l). Pub. L. 108-357, § 411(a)(1), added subsec. (k) and redesignated former subsec. (k) as (l).
2000—Subsec. (f)(2)(B). Pub. L. 106-554 inserted opening parenthesis before “19 U.S.C.”.
1999—Subsec. (h)(4)(C)(iv). Pub. L. 106-170 substituted “to manage” for “to reduce”.
1998—Subsec. (f)(2)(B). Pub. L. 105-206 substituted “19 U.S.C. 2461 et seq.)” for “(19 U.S.C. 2462)”.
1996—Subsec. (b)(1). Pub. L. 104-188, § 1401(b)(10), substituted “section 1 or 55” for “section 1, 55, or 402(d)(1)”.
Subsec. (f)(2)(B). Pub. L. 104-188, § 1954(b)(1), substituted “under title V” for “within the meaning of section 502”.
1994—Subsec. (a)(3)(A). Pub. L. 103-465 substituted “85 percent” for “one-half”.
Subsec. (c). Pub. L. 103-296 substituted “(J), (M), or (Q)” for “(J), or (M)” in two places.
1993—Subsec. (a)(2). Pub. L. 103-66, § 13113(d)(5), inserted “such gains and losses shall be determined without regard to section 1202 and” after “except that” in second sentence.
Subsec. (h)(2)(B)(ii). Pub. L. 103-66, § 13237(c)(1), substituted “paragraph (5)” for “paragraph (4)”.
Subsec. (h)(4) to (7). Pub. L. 103-66, § 13237(a)(1), added par. (4) and redesignated former pars. (4) to (6) as (5) to (7), respectively.
1992—Subsec. (a)(1)(B). Pub. L. 102-318, § 521(b)(28), struck out “402(a)(2), 403(a)(2), or” before “631(b)”.
Subsec. (b)(1). Pub. L. 102-318, § 521(b)(29), substituted “402(d)(1)” for “402(e)(1)”.
Subsec. (k)(1). Pub. L. 102-318, § 521(b)(30), substituted “402(e)(2)” for “402(a)(4)”.
1988—Subsec. (c). Pub. L. 100-647, § 1001(d)(2)(B), substituted “the second sentence of section 1441(b)” for “section 1441(b)(1) or (2)”, and “(F), (J), or (M)” for “(F) or (J)” in two places.
Subsecs. (j), (k). Pub. L. 100-647, § 6134(a)(1), added subsec. (j) and redesignated former subsec. (j) as (k).
1986—Subsec. (a)(1). Pub. L. 99-514, § 1810(d)(3)(A), substituted “subsection (h)” for “subsection (i)” in introductory provisions.
Subsec. (a)(1)(C). Pub. L. 99-514, § 1810(e)(2)(A), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “in the case of—
“(i) a sale or exchange of an original issue discount obligation, the amount of any gain not in excess of the original issue discount accruing while such obligation was held by the nonresident alien individual (to the extent such discount was not theretofore taken into account under clause (ii)), and
“(ii) the payment of interest on an original issue discount obligation, an amount equal to the original issue discount accrued on such obligation since the last payment of interest thereon (except that such original issue discount shall be taken into account under this clause only to the extent that the tax thereon does not exceed the interest payment less the tax imposed by subparagraph (A) thereon), and”.
Subsec. (a)(1)(D). Pub. L. 99-514, § 1211(b)(4), struck out “or from payments which are treated as being so contingent under subsection (e),” after “sold or exchanged,”.
Subsec. (a)(2). Pub. L. 99-514, § 301(b)(9), struck out “such gains and losses shall be determined without regard to section 1202 (relating to deduction for capital gains) and” after “United States, except that”.
Subsec. (a)(3). Pub. L. 99-272 inserted at end “For treatment of certain citizens of possessions of the United States, see section 932(c).”
Subsec. (e). Pub. L. 99-514, § 1211(b)(5), struck out subsec. (e) which related to gains from sale or exchange of certain intangible property, par. (1) treating payments as contingent on use, etc., and par. (2) containing source rule.
Subsec. (h)(2). Pub. L. 99-514, § 1810(d)(1)(A), (3)(B), inserted “which would be subject to tax under subsection (a) but for this subsection and” in introductory provisions and substituted “receives a statement” for “has received a statement” in subpar. (B)(ii).
Subsec. (h)(3)(C)(ii), (iii). Pub. L. 99-514, § 1810(d)(2), added cl. (ii) and redesignated former cl. (ii) as (iii).
Subsecs. (i), (j). Pub. L. 99-514, § 1214(c)(1), added subsec. (i) and redesignated former subsec. (i) as (j).
1984—Subsec. (a)(1). Pub. L. 98-369, § 127(a)(2), substituted “Except as provided in subsection (i), there” for “There”.
Subsec. (a)(1)(A). Pub. L. 98-369, § 42(a)(9), substituted “section 1273” for “section 1232(b)”.
Subsec. (a)(1)(C). Pub. L. 98-369, § 128(a)(1), amended subpar. (C) generally, substituting in cl. (i), “a sale or exchange of an original issue discount obligation, the amount of any gain not in excess of the original issue discount accruing while such obligation was held by the nonresident alien individual (to the extent such discount was not theretofore taken into account under clause (ii)), and” for “bonds or other evidences of indebtedness issued after September 28, 1965, and before April 1, 1972, amounts which under section 1232(a)(2)(B) are considered as ordinary income, and, in the case of corporate obligations issued after May 27, 1969, and before April 1, 1972, amounts which would be so considered but for the fact the obligations were issued after May 27, 1969,”, substituting in cl. (ii), “the payment of interest on an original issue discount obligation, an amount equal to the original issue discount accrued on such obligation since the last payment of interest thereon (except that such original issue discount shall be taken into account under this clause only to the extent that the tax thereon does not exceed the interest payment less the tax imposed by subparagraph (A) thereon), and” for “bonds or other evidences of indebtedness issued after March 31, 1972, and payable more than 6 months from the date of original issue (without regard to the period held by the taxpayer), amounts which under section 1232(a)(2)(B) would be considered as ordinary income but for the fact such obligations were issued after May 27, 1969, and”, and striking out cl. (iii) which required that in the case of the payment of interest on an obligation described in cl. (ii), an amount equal to the original issue discount, but not in excess of such interest less the tax imposed by subpar. (A) thereon, accrued on such obligation since the last payment of interest thereon, be included for purpose of the 30 percent tax.
Subsec. (g). Pub. L. 98-369, § 128(a)(2), added subsec. (g). Former subsec. (g), relating to cross references, redesignated (h).
Subsec. (g)(6) to (8). Pub. L. 98-369, § 412(b)(1), amended subsec. (g), relating to cross references, by striking out par. (6) referring to section 6015(j) for the requirement of making a declaration of estimated tax by certain nonresident alien individuals and redesignating pars. (7) and (8) as (6) and (7), respectively.
Subsec. (h). Pub. L. 98-369, § 127(a), added subsec. (h). Former subsec. (h), relating to cross references, redesignated (i).
Pub. L. 98-369, § 128(a)(2), redesignated subsec. (g), relating to cross references, as (h).
Subsec. (i). Pub. L. 98-369, § 127(a)(1), redesignated subsec. (h), relating to cross references, as (i).
1983—Subsec. (a)(3). Pub. L. 98-21, § 121(c)(1), added par. (3).
Subsec. (a)(3)(A). Pub. L. 98-21, § 335(b)(2)(B), inserted “(notwithstanding section 207 of the Social Security Act)” after “income”.
1981—Subsec. (g)(6). Pub. L. 97-34 substituted “6015(j)” for “6015(i)”.
1980—Subsec. (b)(1). Pub. L. 96-222 substituted “55” for “section 55”.
Subsec. (f). Pub. L. 96-605 designated existing provision as par. (1), inserted heading “In general” and redesignated par. (1) as subpar. (A), cls. (A) and (B) of subpar. (A) as so redesignated as cls. (i) and (ii), and par. (2) as subpar. (B), and added par. (2).
Subsec. (g)(8). Pub. L. 96-499 added par. (8).
1978—Subsec. (b)(1). Pub. L. 95-600, §§ 401(b)(3), 421(e)(4), substituted “section 1, section 55, or 402(e)(1)” for “section 1, 402(e)(1), or 1201(b)”.
1976—Subsec. (a)(1)(C)(i), (ii). Pub. L. 94-455, § 1901(b)(3)(I), substituted “ordinary income” for “gain from the sale or exchange of property which is not a capital asset”.
Subsec. (d). Pub. L. 94-455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”, each time appearing.
Subsec. (g)(7). Pub. L. 94-455, § 1012(a)(2), added par. (7).
1974—Subsec. (b)(1). Pub. L. 93-406 inserted reference to section 402(e)(1).
1971—Subsec. (a)(1)(A). Pub. L. 92-178, § 313(a), inserted “(other than original issue discount as defined in section 1232(b))” after “interest”.
Subsec. (a)(1)(C). Pub. L. 92-178, § 313(b), designated existing provisions as cl. (i), inserted “and before April 1, 1972,” after “September 28, 1965,”, substituted “section 1232(a)(2)(B)” for “section 1232”, and inserted “, in the case of corporate obligations issued after May 27, 1969, and before April 1, 1972, amounts which would be so considered but for the fact the obligations were issued after May 27, 1969,”, and added cls. (ii) and (iii).
1966—Subsecs. (a), (b). Pub. L. 89-809 consolidated the substance of former subsecs. (a) to (c) and, as part of the consolidation, revised the overall income tax treatment of nonresident alien individuals by substituting provisions dividing their income for tax purposes into two basic groups according to whether or not the income is effectively connected with a United States trade or business for provisions calling for different tax treatment based upon whether or not they are, or are not, engaged in a trade or business in the United States, with a further breakdown of those not engaged in trade or business in the United States as to whether their income is over or under $21,200.
Subsec. (c). Pub. L. 89-809 redesignated subsec. (d) as (c) and inserted provisions that any income described in section 1441(b)(1) or (2) which is received by such individual shall, to the extent derived from sources within the United States, be treated as effectively connected with the conduct of a trade or business within the United States. Substance of former subsec. (c) revised and incorporated into subsecs. (a) and (b).
Subsecs. (d) to (f). Pub. L. 89-809 added subsecs. (d) to (f) and redesignated former subsecs. (d) and (e) as (c) and (g), respectively.
Subsec. (g). Pub. L. 89-809 redesignated former subsec. (e) as (g), added pars. (2) and (4) to (6), and redesignated former pars. (1) and (2) as (3) and (1), respectively.
1964—Subsec. (a). Pub. L. 88-272, § 113(b)(2), substituted “30 percent tax” for “and gross income of not more than $15,400” in heading.
Subsec. (b). Pub. L. 88-272, §§ 113(b)(1), (3), 201(d)(12), substituted “$19,000 in the case of a taxable year beginning in 1964 or more than $21,200 in the case of a taxable year beginning after 1964” for “$15,400”, “the credit under section 35” for “the sum of the credits under sections 34 and 35” in text, and “Regular tax” for “and gross income of more than $15,400” in heading.
1961—Subsecs. (d), (e). Pub. L. 87-256 added subsec. (d) and redesignated former subsec. (d) as (e).
1960—Subsec. (d). Pub. L. 86-437 substituted “Cross references” for “Doubling of tax” in heading, and inserted cross reference to section 402(a)(4).
1958—Subsec. (a)(1). Pub. L. 85-866, § 40(a), inserted “section 403(a)(2),” after “section 402(a)(2),”.
Subsec. (b). Pub. L. 85-866, § 41(a), inserted last par. covering former provisions of par. (3), which was struck out by the amendment, and containing new provisions with references to credits under section 34 and 35 and exclusion under section 116 of this title.