Internal Revenue Code · 26 U.S.C.
§ 997. Special subchapter C rules
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. § 997
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- December 10, 1971 by Pub. L. 92–178
- Length
- 2 subsections · 87 words · about 1 min to read
- Regulations
- 1 issued under this section
For purposes of applying the provisions of subchapter C of chapter 1, any distribution in property to a corporation by a DISC or former DISC which is made out of previously taxed income or accumulated DISC income shall—
¶(1) be treated as a distribution in the same amount as if such distribution of property were made to an individual, and
¶(2) have a basis, in the hands of the recipient corporation, equal to the amount determined under paragraph (1).
(Added Pub. L. 92–178, title V, § 501, Dec. 10, 1971, 85 Stat. 549.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 997
Amendment history
From the source credit and the official notes, newest first.
- Added by Pub. L. 92–178
Where it sits in the Code
- 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 IV DOMESTIC INTERNATIONAL SALES CORPORATIONS
- Subpart B Treatment of Distributions to Shareholders
Nearby sections
- § 995 Taxation of DISC income to shareholders
- § 996 Rules for allocation in the case of distributions and losses
- § 997 Special subchapter C rules