Page:United States Statutes at Large Volume 96 Part 2.djvu/307

 PUBLIC LAW 97-354—OCT. 19, 1982

96 STAT. 1669

Public Law 97-354 97th Congress An Act To revise subchapter S of the Internal Revenue Code of 1954 (relating to small business corporations).

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. SECTION 1. SHORT TITLE; AMENDMENT OF 1954 CODE. (a) SHORT TITLE.—This Act may be cited as the "Subchapter S

Oct. 19, 1982 [H.R. 6055]

Subchapter S

Revision Act of 1982. ^^ ^^

^ "°*^-

Revision Act of 1982". (b) AMENDMENT OF 1954 CODE.—Except as otherwise expressly

provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954.

26 USC i et seq.

SEC. 2. AMENDMENT OF SUBCHAPTER S.

Subchapter S of chapter 1 is amended to read as follows:

"Subchapter S—Tax Treatment of S Corporations and Their Shareholders "Part "Part "Part "Part

I. In general. II. Tax treatment of shareholders. III. Special rules. IV. Definitions; miscellaneous.

"PART I—IN GENERAL "Sec. 1361. S corporation defined. "Sec. 1362. Election; revocation; termination. "Sec. 1363. Effect of election on corporation. "SEC. 1361. S CORPORATION DEFINED. "(a) S CORPORATION DEFINED.—

"(1) IN GENERAL.—For purposes of this title, the term *S corporation' means, with respect to any taxable year, a small business corporation for which an election under section 1362(a) is in effect for such year. "(2) CORPORATION.—For purposes of this title, the term 'C corporation' means, with respect to any taxable year, a corporation which is not an S corporation for such year. "(b) SMALL BUSINESS CORPORATION.—

"(1) IN GENERAL.—For purposes of this subchapter, the term 'small business corporation means a domestic corporation which is not an ineligible corporation and which does not— "(A) have more than 35 shareholders, "(B) have as a shareholder a person (other than an estate and other than a trust described in subsection (c)(2)) who is not an individual, "(C) have a nonresident alien as a shareholder, and

26 USC 1361.

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