Internal Revenue Code · 26 U.S.C.
§ 1295. Qualified electing fund
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1295
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- October 22, 1986 by Pub. L. 99–514
- Last amended
- November 10, 1988 by Pub. L. 100–647
- Amendments
- 1 dated changes in the source credit
- Length
- 2 subsections · 263 words · about 1 min to read
- Cross-references
- cites 0; cited by 3 Code sections and 22 other regulations
- Regulations
- 3 issued under this section
A taxpayer may make an election under this subsection with respect to any passive foreign investment company for any taxable year of the taxpayer. Such an election, once made with respect to any company, shall apply to all subsequent taxable years of the taxpayer with respect to such company unless revoked by the taxpayer with the consent of the Secretary.
An election under this subsection may be made for any taxable year at any time on or before the due date (determined with regard to extensions) for filing the return of the tax imposed by this chapter for such taxable year. To the extent provided in regulations, such an election may be made later than as required in the preceding sentence where the taxpayer fails to make a timely election because the taxpayer reasonably believed that the company was not a passive foreign investment company.
(Added Pub. L. 99–514, title XII, § 1235(a), Oct. 22, 1986, 100 Stat. 2571; amended Pub. L. 100–647, title I, § 1012(p)(37)(A), title VI, § 6127(a), Nov. 10, 1988, 102 Stat. 3522, 3715.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 1295
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited by 3 Code sections
- § 1(h)(10)(G) Tax imposed
- § 6241(12)(B) Definitions and special rules
- § 6501(c)(8)(A) Limitations on assessment and collection
Cited in 22 regulations not issued under it
- § 1.163-12 Deduction of original issue discount on instrument held by related foreign person.
- § 1.163(j)-4 General rules applicable to C corporations (including REITs, RICs, and members of consolidated groups) and tax-exempt corporations.
- § 1.267A-3 Income inclusions and amounts not treated as disqualified hybrid amounts.
- § 1.338-2 Nomenclature and definitions; mechanics of the section 338 election.
- § 1.441-2 Election of taxable year consisting of 52-53 weeks.
- § 1.469-2T Passive activity loss (temporary).
- § 1.985-7 Adjustments required in connection with a change to DASTM.
- § 1.1061-3 Exceptions to the definition of an API.
- § 1.1061-4 Section 1061 computations.
- § 1.1061-6 Reporting rules.
- § 1.1291-1 Taxation of U.S. persons that are shareholders of section 1291 funds.
- § 1.1291-9 Deemed dividend election.
- § 1.1291-10 Deemed sale election.
- § 1.1293-0 Table of contents.
- § 1.1293-1 Current taxation of income from qualified electing funds.
- § 1.1294-1T Election to extend the time for payment of tax on undistributed earnings of a qualified electing fund (temporary).
- § 1.1297-1 Definition of passive foreign investment company.
- § 1.1298-1 Section 1298(f) annual reporting requirements for United States persons that are shareholders of a passive foreign investment company.
- § 1.1411-10 Controlled foreign corporations and passive foreign investment companies.
- § 1.6011-4 Requirement of statement disclosing participation in certain transactions by taxpayers.
- § 1.7701(l)-3 Recharacterizing financing arrangements involving fast-pay stock.
- § 301.9100-8 Time and manner of making certain elections under the Technical and Miscellaneous Revenue Act of 1988.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter P Capital Gains and Losses
- Part VI TREATMENT OF CERTAIN PASSIVE FOREIGN INVESTMENT COMPANIES
- Subpart B Treatment of Qualified Electing Funds
Nearby sections
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1988—Subsec. (a). Pub. L. 100–647, § 6127(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “For purposes of this part, the term ‘qualified electing fund’ means any passive foreign investment company if—
“(1) an election under subsection (b) applies to such company for the taxable year, and
“(2) such company complies for such taxable year with such requirements as the Secretary may prescribe for purposes of—
“(A) determining the ordinary earnings and net capital gain of such company for the taxable year,
“(B) ascertaining the ownership of its outstanding stock, and
“(C) otherwise carrying out the purposes of this subpart.”
Subsec. (b). Pub. L. 100–647, § 6127(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows:
“(1) In general.—A passive foreign investment company may make an election under this subsection for any taxable year. Such an election, once made, shall apply to all subsequent taxable years of such company for which such company is a passive foreign investment company unless revoked with the consent of the Secretary.
“(2) When made.—An election under this subsection may be made for any taxable year at any time before the 15th day of the 3rd month of the following taxable year. To the extent provided in regulations, such an election may be made later than as required by the preceding sentence in cases where the company failed to make a timely election because it reasonably believed it was not a passive foreign investment company.”
Pub. L. 100–647, § 1012(p)(37)(A), inserted sentence at end of par. (2) permitting a later election when a company reasonably believed it was not a passive foreign investment company.
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by section 1012(p)(37)(A) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Pub. L. 100–647, title VI, § 6127(c), Nov. 10, 1988, 102 Stat. 3715, provided that:
“(1) In general.— The amendments made by this section [amending this section and section 1291 of this title] shall take effect as if included in the amendments made by section 1235 of the Reform Act [Pub. L. 99–514].“(2) Time for making election.— The period during which an election under section 1295(b) of the 1986 Code may be made shall in no event expire before the date 60 days after the date of the enactment of this Act [Nov. 10, 1988].”
Effective Date
Section applicable to taxable years of foreign corporations beginning after Dec. 31, 1986, see section 1235(h) of Pub. L. 99–514, set out as a note under section 1291 of this title.
Expiration of Subsection (b) Election Period
Pub. L. 100–647, title I, § 1012(p)(37)(B), Nov. 10, 1988, 102 Stat. 3522, provided that: “The period during which an election under section 1295(b) of the 1986 Code may be made shall in no event expire before the date 60 days after the date of enactment of this Act [Nov. 10, 1988].”