Treasury Regulations · 26 CFR
§ 1.909-1. Definitions and special rules.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 909
Cite as 26 CFR § 1.909-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- February 10, 2015 by T.D. 9710
- Issued under
- 26 U.S.C. § 909
- Length
- 695 words · about 3 min to read
- Defines
- 9 terms
- Cross-references
- cites 6 Code sections and 4 regulations; cited by 2
¶(a) Definitions. For purposes of section 909, this section, and §§ 1.909-2 through 1.909-5, the following definitions apply:
¶(3) The term payor means a person that pays or accrues a foreign income tax within the meaning of § 1.901-2(f), and also includes a person that takes foreign income taxes paid or accrued by a partnership, S corporation, estate or trust into account pursuant to section 702(a)(6), section 901(b)(5) or section 1373(a).
¶(4) The term covered person means, with respect to a payor—
¶(i) Any entity in which the payor holds, directly or indirectly, at least a 10 percent ownership interest (determined by vote or value);
¶(ii) Any person that holds, directly or indirectly, at least a 10 percent ownership interest (determined by vote or value) in the payor; or
¶(5) The term foreign income tax means any income, war profits, or excess profits tax paid or accrued to any foreign country or to any possession of the United States. A foreign income tax includes any tax paid or accrued in lieu of such a tax within the meaning of section 903.
¶(8) The term disregarded entity means an entity that is disregarded as an entity separate from its owner, as provided in § 301.7701-2(c)(2)(i) of this chapter.
¶(9) The term hybrid partnership means a partnership that is subject to income tax in a foreign country as a corporation (or otherwise at the entity level) on the basis of residence, place of incorporation, place of management or similar criteria.
¶(b) Taxes paid or accrued by a partnership, S corporation or trust. Under section 909(c)(1), section 909 applies at the partner level, and similar rules apply in the case of an S corporation or trust. Accordingly, in the case of foreign income taxes paid or accrued by a partnership, S corporation or trust, taxes allocated to one or more partners, shareholders or beneficiaries (as the case may be) will be treated as split taxes to the extent such taxes would be split taxes if the partner, shareholder or beneficiary had paid or accrued the taxes directly on the date such taxes are taken into account by the partner under sections 702 and 706(a), by the shareholder under section 1373(a), or by the beneficiary under section 901(b)(5). Any such split taxes will be suspended in the hands of the partner, shareholder or beneficiary.
¶(c) Related income of a partnership, S corporation or trust. For purposes of determining whether related income is taken into account by a covered person, related income of a partnership, S corporation or trust is considered to be taken into account by the partner, shareholder or beneficiary to whom the related income is allocated.
¶(d) Application of section 909 to pre-1987 accumulated profits and pre-1987 foreign income taxes. Section 909 and §§ 1.909-1 through 1.909-5 will apply to pre-1987 accumulated profits (as defined in § 1.902-1(a)(10)(i)) and pre-1987 foreign income taxes (as defined in § 1.902-1(a)(10)(iii)) of a section 902 corporation attributable to taxable years beginning on or after January 1, 2012.
¶(e) Effective/applicability date. This section applies to taxable years ending after February 9, 2015. See 26 CFR 1.909-1T (revised as of April 1, 2014) for rules applicable to taxable years beginning on or after January 1, 2011, and ending on or before February 9, 2015.
[T.D. 9710, 80 FR 7328, Feb. 10, 2015]
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
- covered person § 1.909-1(a)(4)
- disregarded entity § 1.909-1(a)(8)
- foreign income tax § 1.909-1(a)(5)
- hybrid partnership § 1.909-1(a)(9)
- payor § 1.909-1(a)(3)
- post-1986 foreign income taxes § 1.909-1(a)(6)
- post-1986 undistributed earnings § 1.909-1(a)(7)
- section 902 corporation § 1.909-1(a)(1)
- section 902 shareholder § 1.909-1(a)(2)
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 909 Suspension of taxes and credits until related income taken into account
- § 902 Repealed
- § 702 Income and credits of partner
- § 901 Taxes of foreign countries and of possessions of United States
- § 1373 Foreign income
- § 267 Losses, expenses, and interest with respect to transactions between related taxpayers
Regulations it cites
- § 1.909-2 Splitter arrangements.
- § 1.901-2 Income, war profits, or excess profits tax paid or accrued.
- § 1.902-1 Credit for domestic corporate shareholder of a foreign corporation for foreign income taxes paid by the foreign corporation.
- § 301.7701-2 Business entities; definitions.
Cited by 2 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 9710 (80 FR 7328)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Earned Income of Citizens or Residents of United States