Internal Revenue Code:Sec. 1. Tax imposed

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Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter A - Determination of Tax Liability
         PART I - TAX ON INDIVIDUALS
       

Statute

    Sec. 1. Tax imposed
 
    (a) Married individuals filing joint returns and surviving spouses
      There is hereby imposed on the taxable income of -
         (1) every married individual (as defined in section 7703) who
      makes a single return jointly with his spouse under section 6013,
      and
        (2) every surviving spouse (as defined in section 2(a)),
    a tax determined in accordance with the following table:
 
    ---------------------------------------------------------------------
    If taxable income is:              The tax is:
    ---------------------------------------------------------------------
    Not over $36,900                   15% of taxable income.
    Over $36,900 but not over $89,150  $5,535, plus 28% of the excess
                                        over $36,900.
    Over $89,150 but not over          $20,165, plus 31% of the excess
     $140,000                           over $89,150.
    Over $140,000 but not over         $35,928.50, plus 36% of the
     $250,000                           excess over $140,000.
    Over $250,000                      $75,528.50, plus 39.6% of the
                                        excess over $250,000.
                     -------------------------------
    (b) Heads of households
      There is hereby imposed on the taxable income of every head of a
    household (as defined in section 2(b)) a tax determined in
    accordance with the following table:
 
    ---------------------------------------------------------------------
    If taxable income is:              The tax is:
    ---------------------------------------------------------------------
    Not over $29,600                   15% of taxable income.
    Over $29,600 but not over $76,400  $4,440, plus 28% of the excess
                                        over $29,600.
    Over $76,400 but not over          $17,544, plus 31% of the excess
     $127,500                           over $76,400.
    Over $127,500 but not over         $33,385, plus 36% of the excess
     $250,000                           over $127,500.
    Over $250,000                      $77,485, plus 39.6% of the excess
                                        over $250,000.
                     -------------------------------
    (c) Unmarried individuals (other than surviving spouses and heads
        of households)
      There is hereby imposed on the taxable income of every individual
    (other than a surviving spouse as defined in section 2(a) or the
    head of a household as defined in section 2(b)) who is not a
    married individual (as defined in section 7703) a tax determined in
    accordance with the following table:
 
    ---------------------------------------------------------------------
    If taxable income is:              The tax is:
    ---------------------------------------------------------------------
    Not over $22,100                   15% of taxable income.
    Over $22,100 but not over $53,500  $3,315, plus 28% of the excess
                                        over $22,100.
    Over $53,500 but not over          $12,107, plus 31% of the excess
     $115,000                           over $53,500.
    Over $115,000 but not over         $31,172, plus 36% of the excess
     $250,000                           over $115,000.
    Over $250,000                      $79,772, plus 39.6% of the excess
                                        over $250,000.
                     -------------------------------
    (d) Married individuals filing separate returns
      There is hereby imposed on the taxable income of every married
    individual (as defined in section 7703) who does not make a single
    return jointly with his spouse under section 6013, a tax determined
    in accordance with the following table:
 
    ---------------------------------------------------------------------
    If taxable income is:              The tax is:
    ---------------------------------------------------------------------
    Not over $18,450                   15% of taxable income.
    Over $18,450 but not over $44,575  $2,767.50, plus 28% of the excess
                                        over $18,450.
    Over $44,575 but not over $70,000  $10,082.50, plus 31% of the
                                        excess over $44,575.
    Over $70,000 but not over          $17,964.25, plus 36% of the
     $125,000                           excess over $70,000.
    Over $125,000                      $37,764.25, plus 39.6% of the
                                        excess over $125,000.
                     -------------------------------
    (e) Estates and trusts
      There is hereby imposed on the taxable income of -
        (1) every estate, and
        (2) every trust,
    taxable under this subsection a tax determined in accordance with
    the following table:
    ---------------------------------------------------------------------
    If taxable income is:              The tax is:
    ---------------------------------------------------------------------
    Not over $1,500                    15% of taxable income.
    Over $1,500 but not over $3,500    $225, plus 28% of the excess over
                                        $1,500.
    Over $3,500 but not over $5,500    $785, plus 31% of the excess over
                                        $3,500.
    Over $5,500 but not over $7,500    $1,405, plus 36% of the excess
                                        over $5,500.
    Over $7,500                        $2,125, plus 39.6% of the excess
                                        over $7,500.
                     -------------------------------
    (f) Adjustments in tax tables so that inflation will not result in
        tax increases
      (1) In general
        Not later than December 15 of 1993, and each subsequent
      calendar year, the Secretary shall prescribe tables which shall
      apply in lieu of the tables contained in subsections (a), (b),
      (c), (d), and (e) with respect to taxable years beginning in the
      succeeding calendar year.
      (2) Method of prescribing tables
        The table which under paragraph (1) is to apply in lieu of the
      table contained in subsection (a), (b), (c), (d), or (e), as the
      case may be, with respect to taxable years beginning in any
      calendar year shall be prescribed -
         (A) by increasing the minimum and maximum dollar amounts for
        each rate bracket for which a tax is imposed under such table
        by the cost-of-living adjustment for such calendar year,
         (B) by not changing the rate applicable to any rate bracket
        as adjusted under subparagraph (A), and
         (C) by adjusting the amounts setting forth the tax to the
        extent necessary to reflect the adjustments in the rate
        brackets.
      (3) Cost-of-living adjustment
        For purposes of paragraph (2), the cost-of-living adjustment
      for any calendar year is the percentage (if any) by which -
         (A) the CPI for the preceding calendar year, exceeds
         (B) the CPI for the calendar year 1992.
      (4) CPI for any calendar year
        For purposes of paragraph (3), the CPI for any calendar year is
      the average of the Consumer Price Index as of the close of the
      12-month period ending on August 31 of such calendar year.
      (5) Consumer Price Index
        For purposes of paragraph (4), the term ''Consumer Price
      Index'' means the last Consumer Price Index for all-urban
      consumers published by the Department of Labor. For purposes of
      the preceding sentence, the revision of the Consumer Price Index
      which is most consistent with the Consumer Price Index for
      calendar year 1986 shall be used.
      (6) Rounding
         (A) In general
          If any increase determined under paragraph (2)(A), section
        63(c)(4), section 68(b)(2) or section 151(d)(4) is not a
        multiple of $50, such increase shall be rounded to the next
        lowest multiple of $50.
         (B) Table for married individuals filing separately
          In the case of a married individual filing a separate return,
        subparagraph (A) (other than with respect to subsection (c)(4)
        of section 63 (as it applies to subsections (c)(5)(A) and (f)
        of such section) and section 151(d)(4)(A)) shall be applied by
        substituting ''$25'' for ''$50'' each place it appears.
      (7) Special rule for certain brackets
         (A) Calendar year 1994
          In prescribing the tables under paragraph (1) which apply
        with respect to taxable years beginning in calendar year 1994,
        the Secretary shall make no adjustment to the dollar amounts at
        which the 36 percent rate bracket begins or at which the 39.6
        percent rate begins under any table contained in subsection
        (a), (b), (c), (d), or (e).
         (B) Later calendar years
          In prescribing tables under paragraph (1) which apply with
        respect to taxable years beginning in a calendar year after
        1994, the cost-of-living adjustment used in making adjustments
        to the dollar amounts referred to in subparagraph (A) shall be
        determined under paragraph (3) by substituting ''1993'' for ''1992''.
      (8) Elimination of marriage penalty in 15-percent bracket.--
        With respect to taxable years beginning after December 31, 2003,
        in prescribing the tables under paragraph (1)--
         (A) the maximum taxable income in the 15-percent 
           rate bracket in the table contained in subsection (a) 
           (and the minimum taxable income in the next higher 
           taxable income bracket in such table) shall be 200 
           percent of the maximum taxable income in the 15-percent 
           rate bracket in the table contained in subsection (c) 
           (after any other adjustment under this subsection), and
         (B) the comparable taxable income amounts in the 
           table contained in subsection (d) shall be \1/2\ of the 
           amounts determined under subparagraph (A).
    (g) Certain unearned income of minor children taxed as if parent's
        income
      (1) In general
        In the case of any child to whom this subsection applies, the
      tax imposed by this section shall be equal to the greater of -
          (A) the tax imposed by this section without regard to this
        subsection, or
          (B) the sum of -
            (i) the tax which would be imposed by this section if the
          taxable income of such child for the taxable year were
          reduced by the net unearned income of such child, plus
            (ii) such child's share of the allocable parental tax.
      (2) Child to whom subsection applies
        This subsection shall apply to any child for any taxable year
      if -
          (A) such child has not attained age 18 before the close of
        the taxable year,
          (B) either parent of such child is alive at the close of the
        taxable year, and
          (C) such child does not file a joint return for the taxable year.
      (3) Allocable parental tax
        For purposes of this subsection -
        (A) In general
          The term ''allocable parental tax'' means the excess of -
            (i) the tax which would be imposed by this section on the
          parent's taxable income if such income included the net
          unearned income of all children of the parent to whom this
          subsection applies, over
            (ii) the tax imposed by this section on the parent without
          regard to this subsection.
        For purposes of clause (i), net unearned income of all children
        of the parent shall not be taken into account in computing any
        exclusion, deduction, or credit of the parent.
        (B) Child's share
          A child's share of any allocable parental tax of a parent
        shall be equal to an amount which bears the same ratio to the
        total allocable parental tax as the child's net unearned income
        bears to the aggregate net unearned income of all children of
        such parent to whom this subsection applies.
        (C) Special rule where parent has different taxable year
          Except as provided in regulations, if the parent does not
        have the same taxable year as the child, the allocable parental
        tax shall be determined on the basis of the taxable year of the
        parent ending in the child's taxable year.
      (4) Net unearned income
        For purposes of this subsection -
        (A) In general
          The term ''net unearned income'' means the excess of -
            (i) the portion of the adjusted gross income for the
          taxable year which is not attributable to earned income (as
          defined in section 911(d)(2)), over
            (ii) the sum of -
              (I) the amount in effect for the taxable year under
            section 63(c)(5)(A) (relating to limitation on standard
            deduction in the case of certain dependents), plus
              (II) the greater of the amount described in subclause (I)
            or, if the child itemizes his deductions for the taxable
            year, the amount of the itemized deductions allowed by this
            chapter for the taxable year which are directly connected
            with the production of the portion of adjusted gross income
            referred to in clause (i).
        (B) Limitation based on taxable income
          The amount of the net unearned income for any taxable year
        shall not exceed the individual's taxable income for such
        taxable year.
        (C) Treatment of distributions from qualified 
          disability trusts.--For purposes of this subsection, in 
        the case of any child who is a beneficiary of a 
        qualified disability trust (as defined in section 
        642(b)(2)(C)(ii)), any amount included in the income of 
        such child under sections 652 and 662 during a taxable 
        year shall be considered earned income of such child for 
        such taxable year.
      (5) Special rules for determining parent to whom subsection
          applies
        For purposes of this subsection, the parent whose taxable
      income shall be taken into account shall be -
          (A) in the case of parents who are not married (within the
        meaning of section 7703), the custodial parent (within the
        meaning of section 152(e)) of the child, and
          (B) in the case of married individuals filing separately, the
        individual with the greater taxable income.
      (6) Providing of parent's TIN
        The parent of any child to whom this subsection applies for any
      taxable year shall provide the TIN of such parent to such child
      and such child shall include such TIN on the child's return of
      tax imposed by this section for such taxable year.
      (7) Election to claim certain unearned income of child on
          parent's return
        (A) In general
          If -
            (i) any child to whom this subsection applies has gross
          income for the taxable year only from interest and dividends
          (including Alaska Permanent Fund dividends),
            (ii) such gross income is more than the amount described in
          paragraph (4)(A)(ii)(I) and less than 10 times the amount so
          described,
            (iii) no estimated tax payments for such year are made in
          the name and TIN of such child, and no amount has been
          deducted and withheld under section 3406, and
            (iv) the parent of such child (as determined under
          paragraph (5)) elects the application of subparagraph (B),
        such child shall be treated (other than for purposes of this
        paragraph) as having no gross income for such year and shall
        not be required to file a return under section 6012.
        (B) Income included on parent's return
          In the case of a parent making the election under this
        paragraph -
            (i) the gross income of each child to whom such election
          applies (to the extent the gross income of such child exceeds
          twice the amount described in paragraph (4)(A)(ii)(I)) shall
          be included in such parent's gross income for the taxable
          year,
            (ii) the tax imposed by this section for such year with
          respect to such parent shall be the amount equal to the sum
          of -
              (I) the amount determined under this section after the
            application of clause (i), plus
              (II) for each such child, 10 percent of the lesser of the
            amount described in paragraph (4)(A)(ii)(I) or the excess
            of the gross income of such child over the amount so
            described, and
            (iii) any interest which is an item of tax preference under
          section 57(a)(5) of the child shall be treated as an item of
          tax preference of such parent (and not of such child).
        (C) Regulations
          The Secretary shall prescribe such regulations as may be
        necessary or appropriate to carry out the purposes of this
        paragraph.
    (h) Maximum capital gains rate
      (1) In general
        If a taxpayer has a net capital gain for any taxable year, the
        tax imposed by this section for such taxable year shall not
        exceed the sum of -
        (A) a tax computed at the rates and in the same manner as if
        this subsection had not been enacted on the greater of -
           (i) taxable income reduced by the net capital gain; or
           (ii) the lesser of -
              (I) the amount of taxable income taxed at a rate below 25
                  percent; or
              (II) taxable income reduced by the adjusted net capital
                  gain;
        (B) 5 percent (0 percent in the case of taxable years
        beginning after 2007) of so much of the adjusted net capital
        gain (or, if less, taxable income) as does not exceed 
        the excess (if  any) of -
           (i) the amount of taxable income which would (without
             regard to this paragraph) be taxed at a rate below 25
             percent, over
           (ii) the taxable income reduced by the adjusted net capital
             gain;
        (C) 15 percent of the adjusted net capital gain (or, if less,
        taxable income) in excess of the amount on which a tax is
        determined under subparagraph (B);
        (D) 25 percent of the excess (if any) of -
           (i) the unrecaptured section 1250 gain (or, if less, the
             net capital gain (determined without regard to paragraph(11)),
             over
           (ii) the excess (if any) of -
              (I) the sum of the amount on which tax is determined
                under subparagraph (A) plus the net capital gain, over
              (II) taxable income; and
        (E) 28 percent of the amount of taxable income in excess of
        the sum of the amounts on which tax is determined under the
        preceding subparagraphs of this paragraph.
      (2) Net capital gain taken into account as investment income
        For purposes of this subsection, the net capital gain for any
        taxable year shall be reduced (but not below zero) by the amount
        which the taxpayer takes into account as investment income under
        section 163(d)(4)(B)(iii).
      (3) Adjusted net capital gain
        For purposes of this 
        subsection, the term `adjusted net capital gain' means the sum 
        of--
        (A) net capital gain (determined without regard to 
          paragraph (11)) reduced (but not below zero) by the sum of--
           (i) unrecaptured section 1250 gain, and
           (ii) 28-percent rate gain, plus
        (B) qualified dividend income (as defined in paragraph (11)).
      (4) 28-percent rate gain
        For purposes of this subsection, the term ''28-percent rate
        gain'' means the excess (if any) of -
        (A) the sum of -
           (i) collectibles gain; and
           (ii) section 1202 gain, over
        (B) the sum of -
           (i) collectibles loss;
           (ii) the net short-term capital loss; and
           (iii) the amount of long-term capital loss carried under
             section 1212(b)(1)(B) to the taxable year.
      (5) Collectibles gain and loss
        For purposes of this subsection -
        (A) In general
          The terms ''collectibles gain'' and ''collectibles loss''
        mean gain or loss (respectively) from the sale or exchange of a
        collectible (as defined in section 408(m) without regard to
        paragraph (3) thereof) which is a capital asset held for more
        than 1 year but only to the extent such gain is taken into
        account in computing gross income and such loss is taken into
        account in computing taxable income.
        (B) Partnerships, etc.
          For purposes of subparagraph (A), any gain from the sale of
        an interest in a partnership, S corporation, or trust which is
        attributable to unrealized appreciation in the value of
        collectibles shall be treated as gain from the sale or exchange
        of a collectible.  Rules similar to the rules of section 751
        shall apply for purposes of the preceding sentence.
      (6) Unrecaptured section 1250 gain
        For purposes of this subsection -
        (A) In general
          The term ''unrecaptured section 1250 gain'' means the excess
        (if any) of -
           (i) the amount of long-term capital gain (not otherwise
             treated as ordinary income) which would be treated as
             ordinary income if section 1250(b)(1) included all
             depreciation and the applicable percentage under section
             1250(a) were 100 percent, over
           (ii) the excess (if any) of -
              (I) the amount described in paragraph (4)(B); over
              (II) the amount described in paragraph (4)(A).
        (B) Limitation with respect to section 1231 property
          The amount described in subparagraph (A)(i) from sales,
        exchanges, and conversions described in section 1231(a)(3)(A)
        for any taxable year shall not exceed the net section 1231 gain
        (as defined in section 1231(c)(3)) for such year.
      (7) Section 1202 gain
        For purposes of this subsection, the term ''section 1202 gain''
         means the excess of -
        (A) the gain which would be excluded from gross income under
        section 1202 but for the percentage limitation in section
        1202(a), over
        (B) the gain excluded from gross income under section 1202.
      (8) Coordination with recapture of net ordinary losses under section 1231
        If any amount is treated as ordinary income under section
        1231(c), such amount shall be allocated among the separate
        categories of net section 1231 gain (as defined in section
        1231(c)(3)) in such manner as the Secretary may by forms or
        regulations prescribe.
      (9) Regulations
        The Secretary may prescribe such regulations as are appropriate
        (including regulations requiring reporting) to apply this
        subsection in the case of sales and exchanges by pass-thru
        entities and of interests in such entities.
      (10) Pass-thru entity defined
        For purposes of this subsection, the term ''pass-thru entity''
        means -
        (A) a regulated investment company;
        (B) a real estate investment trust;
        (C) an S corporation;
        (D) a partnership;
        (E) an estate or trust;
        (F) a common trust fund; and
        (G) a qualified electing fund (as defined in section 1295).
      (11) Dividends taxed as net capital gain.--
        (A) In general.--For purposes of this subsection, 
          the term `net capital gain' means net capital gain 
          (determined without regard to this paragraph) increased 
           by qualified dividend income.
        (B) Qualified dividend income.--For purposes of 
          this paragraph--
           (i) In general.--The term `qualified 
             dividend income' means dividends received during 
             the taxable year from--
              (I) domestic corporations, and
              (II) qualified foreign corporations.
           (ii) Certain dividends excluded.--Such term shall not include--
              (I) any dividend from a 
               corporation which for the taxable year 
               of the corporation in which the 
               distribution is made, or the preceding 
               taxable year, is a corporation exempt 
               from tax under section 501 or 521,
              (II) any amount allowed as a 
               deduction under section 591 (relating to 
               deduction for dividends paid by mutual 
               savings banks, etc.), and
              (III) any dividend described in section 404(k).
           (iii) Coordination with section 246(c).--
              Such term shall not include any dividend on any 
              share of stock--
              (I) with respect to which the 
                holding period requirements of section 
                246(c) are not met (determined by 
                substituting in section 246(c) `60 
                days' for `45 days' each place it 
                appears and by substituting `121-day 
                period' for `91-day period'), or
              (II) to the extent that the 
                taxpayer is under an obligation (whether 
                pursuant to a short sale or otherwise) 
                to make related payments with respect to 
                positions in substantially similar or 
                related property.
        (C) Qualified foreign corporations.--
           (i) In general.--Except as otherwise 
             provided in this paragraph, the term `qualified 
             foreign corporation' means any foreign corporation 
                      if--
              (I) such corporation is 
                incorporated in a possession of the 
                United States, or
              (II) such corporation is eligible 
                for benefits of a comprehensive income 
                tax treaty with the United States which 
                the Secretary determines is satisfactory 
                for purposes of this paragraph and which 
                includes an exchange of information program.
           (ii) Dividends on stock readily tradable on 
             united states securities market.--A foreign 
             corporation not otherwise treated as a qualified 
             foreign corporation under clause (i) shall be so 
             treated with respect to any dividend paid by such 
             corporation if the stock with respect to which 
             such dividend is paid is readily tradable on an 
             established securities market in the United States.
           (iii) Exclusion of dividends of certain 
             foreign corporations.--Such term shall not include 
             any foreign corporation which for the taxable year 
             of the corporation in which the dividend was paid, 
             or the preceding taxable year, is a passive foreign
             investment company (as defined in section 1297).
           (iv) Coordination with <<NOTE: Applicability.>> foreign tax
             credit limitation.--Rules similar to the rules of section 
             904(b)(2)(B) shall apply with respect to the 
             dividend rate differential under this paragraph.
        (D) Special rules.--
           (i) Amounts taken into account as investment 
             income.--Qualified dividend income shall not 
             include any amount which the taxpayer takes into 
             account as investment income under section 163(d)(4)(B).
           (ii) Extraordinary dividends.--If a taxpayer to whom 
             this section applies receives, with respect to any share of 
             stock, qualified dividend income from 1 or more 
             dividends which are extraordinary dividends 
             (within the meaning of section 1059(c)), any loss 
             on the sale or exchange of such share shall, to 
             the extent of such dividends, be treated as long-
             term capital loss.
           (iii) Treatment of dividends from regulated 
             investment companies and real estate investment 
             trusts.--A dividend received from a regulated 
             investment company or a real estate investment 
             trust shall be subject to the limitations 
             prescribed in sections 854 and 857.''.
    (i) Rate reductions after 2000
      (1) 10-percent rate bracket
        (A) In general
          In the case of taxable years beginning after December 31,
        2000 -
            (i) the rate of tax under subsections (a), (b), (c), and
          (d) on taxable income not over the initial bracket amount
          shall be 10 percent, and
            (ii) the 15 percent rate of tax shall apply only to taxable
          income over the initial bracket amount but not over the
          maximum dollar amount for the 15-percent rate bracket.
        (B) Initial bracket amount
          For purposes of this paragraph, the initial bracket amount is -
            (i) $14,000 in the case of subsection (a),
            (ii) $10,000 in the case of subsection (b), and
            (iii) 1/2 the amount applicable under clause (i) (after
          adjustment, if any, under subparagraph (C)) in the case of
          subsections (c) and (d).
        (C) Inflation adjustment.--In prescribing the 
          tables under subsection (f) which apply with respect to 
          taxable years beginning in calendar years after 2003--
            (i) the cost-of-living adjustment shall be 
                determined under subsection (f)(3) by substituting 
                `2002' for `1992' in subparagraph (B) thereof, and
            (ii) the adjustments under clause (i) shall not apply to
                the amount referred to in subparagraph (B)(iii).
          If any amount after adjustment under the preceding 
          sentence is not a multiple of $50, such amount shall be 
          rounded to the next lowest multiple of $50.
        
        (D) Coordination with acceleration of 10 percent rate bracket
            benefit for 2001
          This paragraph shall not apply to any taxable year to which
        section 6428 applies.
      (2) Reductions in rates after June 30, 2001
        In the case of taxable years beginning in a calendar year after
      2000, the corresponding percentage specified for such calendar
      year in the following table shall be substituted for the
      otherwise applicable tax rate in the tables under subsections
      (a), (b), (c), (d), and (e).
                   --------------------------------------
             In the case of           The corresponding percentages     
              taxable years            shall be substituted for the
            beginning during              following percentages:       
             calendar year:             28%    31%    36%    39.6%    

             2001 ..................    27.5%  30.5%  35.5%  39.1% 
             2002 ..................    27.0   30.0   35.0   38.6          
             2003 and thereafter....    25.0%  28.0%  33.0%  35.0%
                   --------------------------------------
      (3) Adjustment of tables
        The Secretary shall adjust the tables prescribed under
      subsection (f) to carry out this subsection.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 5; Pub. L. 88-272, title I, Sec.
    111, Feb. 26, 1964, 78 Stat. 19; Pub. L. 89-809, title I, Sec.
    103(a)(2), Nov. 13, 1966, 80 Stat. 1550; Pub. L. 91-172, title
    VIII, Sec. 803(a), Dec. 30, 1969, 83 Stat. 678; Pub. L. 95-30,
    title I, Sec. 101(a), May 23, 1977, 91 Stat. 127; Pub. L. 95-600,
    title I, Sec. 101(a), Nov. 6, 1978, 92 Stat. 2767; Pub. L. 97-34,
    title I, Sec. 101(a), 104(a), Aug. 13, 1981, 95 Stat. 176, 188;
    Pub. L. 97-448, title I, Sec. 101(a)(3), Jan. 12, 1983, 96 Stat.
    2366; Pub. L. 99-514, title I, Sec. 101(a), title III, Sec. 302(a),
    title XIV, Sec. 1411(a), Oct. 22, 1986, 100 Stat. 2096, 2218, 2714;
    Pub. L. 100-647, title I, Sec. 1001(a)(3), 1014(e)(1)-(3), (6),
    (7), title VI, Sec. 6006(a), Nov. 10, 1988, 102 Stat. 3349, 3561,
    3562, 3686; Pub. L. 101-239, title VII, Sec. 7811(j)(1), 7816(b),
    7831(a), Dec. 19, 1989, 103 Stat. 2411, 2420, 2425; Pub. L.
    101-508, title XI, Sec. 11101(a)-(c), (d)(1)(A), (2), 11103(c),
    11104(b), Nov. 5, 1990, 104 Stat. 1388-403 to 1388-406, 1388-408;
    Pub. L. 103-66, title XIII, Sec. 13201(a), (b)(3)(A), (B),
    13202(a), 13206(d)(2), Aug. 10, 1993, 107 Stat. 457, 459, 461, 467;
    Pub. L. 104-188, title I, Sec. 1704(m)(1), (2), Aug. 20, 1996, 110
    Stat. 1882, 1883; Pub. L. 105-34, title III, Sec. 311(a), Aug. 5,
    1997, 111 Stat. 831; Pub. L. 105-206, title V, Sec. 5001(a)(1)-(4),
    title VI, Sec. 6005(d)(1), 6007(f)(1), July 22, 1998, 112 Stat.
    787, 788, 800, 810; Pub. L. 105-277, div.  J, title IV, Sec.
    4002(i)(1), (3), Oct. 21, 1998, 112 Stat. 2681-907, 2681-908; Pub.
    L. 106-554, Sec. 1(a)(7) (title I, Sec. 117(b)(1)), Dec. 21, 2000,
    114 Stat. 2763, 2763A-604; Pub. L. 107-16, title I, Sec. 101(a),
    (c)(1), (2), title III, Sec. 301(c)(1), 302(a), (b), June 7, 2001,
    115 Stat. 41, 43, 54.)
 

Amendment of Section

                            AMENDMENT OF SECTION

      2004 - Pub. L. 108-311 Sec. 101(c)and(d) amends Subsec. (f)(8)
     and Subsec. (i)(1)(B)(i) for elimination of marriage penalty.
     Effective Date.--The amendments made to these sections shall apply
     to taxable years beginning after December 31, 2003.

      2003 - Subsec.301(c), Pub. L. 108-27, provides for transitional
      rules as follows:
      For Taxable Years Which Include May 6, 2003.--For purposes 
      of applying section 1(h) of the Internal Revenue Code of 1986 
      in the case of a taxable year which includes May 6, 2003--
            (1) The amount of tax determined under subparagraph (B) of 
        section 1(h)(1) of such Code shall be the sum of--
                    (A) 5 percent of the lesser of--
                          (i) the net capital gain determined by taking 
                      into account only gain or loss properly taken into 
                      account for the portion of the taxable year on or 
                      after May 6, 2003 (determined without regard to 
                      collectibles gain or loss, gain described in 
                      section 1(h)(6)(A)(i) of such Code, and section 
                      1202 gain), or
                          (ii) the amount on which a tax is determined 
                      under such subparagraph (without regard to this 
                      subsection),
                    (B) 8 percent of the lesser of--
                          (i) the qualified 5-year gain (as defined in 
                      section 1(h)(9) of the Internal Revenue Code of 
                      1986, as in effect on the day before the date of 
                      the enactment of this Act) properly taken into 
                      account for the portion of the taxable year before 
                      May 6, 2003, or
                          (ii) the excess (if any) of--
                                    (I) the amount on which a tax is 
                                determined under such subparagraph 
                                (without regard to this subsection), 
                                over
                                    (II) the amount on which a tax is 
                                determined under subparagraph (A), plus
                    (C) 10 percent of the excess (if any) of--
                          (i) the amount on which a tax is determined 
                      under such subparagraph (without regard to this 
                      subsection), over
                          (ii) the sum of the amounts on which a tax is 
                      determined under subparagraphs (A) and (B).
            (2) The amount of tax determined under subparagraph (C) of 
        section (1)(h)(1) of such Code shall be the sum of--
                    (A) 15 percent of the lesser of--
                          (i) the excess (if any) of the amount of net 
                      capital gain determined under subparagraph (A)(i) 
                      of paragraph (1) of this subsection over the 
                      amount on which a tax is determined under 
                      subparagraph (A) of paragraph (1) of this 
                      subsection, or
                          (ii) the amount on which a tax is determined 
                      under such subparagraph (C) (without regard to 
                      this subsection), plus
                    (B) 20 percent of the excess (if any) of--
                          (i) the amount on which a tax is determined 
                      under such subparagraph (C) (without regard to 
                      this subsection), over
                          (ii) the amount on which a tax is determined 
                      under subparagraph (A) of this paragraph.
            (3) For <<NOTE: Applicability.>> purposes of applying 
        section 55(b)(3) of such Code, rules similar to the rules of 
        paragraphs (1) and (2) of this subsection shall apply
            (4) In applying this subsection with respect to any pass-
        thru entity, the determination of when gains and losses are 
        properly taken into account shall be made at the entity level.
            (5) For purposes of applying section 1(h)(11) of such Code, 
        as added by section 302 of this Act, to this subsection, 
        dividends which are qualified dividend income shall be treated 
        as gain properly taken into account for the portion of the 
        taxable year on or after May 6, 2003.
            (6) Terms used in this subsection which are also used in 
        section 1(h) of such Code shall have the respective meanings 
        that such terms have in such section.
      Effective Dates.--
            (1) In general.--Except as otherwise provided by this 
        subsection, the amendments made by this section shall apply to 
        taxable years ending on or after May 6, 2003.
            (2) Withholding.--The amendment made by subsection (a)(2)(C) 
        shall apply to amounts paid after the date of the enactment of 
        this Act.
            (3) Small business stock.--The amendments made by subsection 
        (b)(3) shall apply to dispositions on or after May 6, 2003.

      2003 - Subsec.301(b)(1)(A)(B)(C), Pub L. 108-27 amended 1(h)
      paragraphs (1) through (10) and Subsec. 302(a) added a new
      paragraph (11)
        For termination of amendment by section 901 of Pub. L. 107-16,
      see Effective and Termination Dates of 2001 Amendment note below.
        Pub. L. 107-16, title III, Sec. 302, title IX, Sec. 901, June
      7, 2001, 115 Stat. 54, 150, provided that, applicable to taxable
      years beginning after Dec. 31, 2004, subsection (f) of this
      section is temporarily amended as follows:
        (1) in heading, by inserting ''Phaseout of Marriage Penalty in
      15-Percent Bracket;'' before ''Adjustments'';
        (2) in paragraph (2)(A), by inserting ''except as provided in
      paragraph (8),'' before ''by increasing''; and
        (3) by adding at the end the following new paragraph:
      (8) Phaseout of marriage penalty in 15-percent bracket
        (A) In general
          With respect to taxable years beginning after December 31,
        2004, in prescribing the tables under paragraph (1) -
            (i) the maximum taxable income in the 15-percent rate
          bracket in the table contained in subsection (a) (and the
          minimum taxable income in the next higher taxable income
          bracket in such table) shall be the applicable percentage of
          the maximum taxable income in the 15-percent rate bracket in
          the table contained in subsection (c) (after any other
          adjustment under this subsection), and
            (ii) the comparable taxable income amounts in the table
          contained in subsection (d) shall be 1/2 of the amounts
          determined under clause (i).
        (B) Applicable percentage
          For purposes of subparagraph (A), the applicable percentage
        shall be determined in accordance with the following table:
    For taxable years beginning                           The applicable
     in calendar year -                                  percentage is -
          2005                                                       180
          2006                                                       187
          2007                                                       193
          2008 and thereafter                                       200.
        (C) Rounding
          If any amount determined under subparagraph (A)(i) is not a
        multiple of $50, such amount shall be rounded to the next
        lowest multiple of $50.
        Pub. L. 107-16, title III, Sec. 301(c)(1), (d), title IX, Sec.
      901, June 7, 2001, 115 Stat. 54, 150, provided that, applicable
      to taxable years beginning Dec. 31, 2004, subsection (f)(6)(B) of
      this section is temporarily amended by substituting ''(other than
      with respect to sections 63(c)(4) and 151(d)(4)(A)) shall be
      applied'' for ''(other than with'' and all that follows through
      ''shall be applied''.
               TAX TABLES FOR TAXABLE YEARS BEGINNING IN 2002
      Revenue Procedure 2001-59 provided:
    Section 1. Purpose
      This revenue procedure sets forth inflation adjusted items for
    2002.
    Section 2. Changes
      .01 Section 201 of the Economic Growth and Tax Relief
    Reconciliation Act of 2001 (EGTRRA) amended Sec. 24 to increase the
    amount of credit under Sec. 24 that may be refundable.  The value
    in Sec. 24(d)(1)(B)(i) used in determining the new potentially
    refundable amount is adjusted for inflation.
      .02 The amounts in Sec. 25A(b)(1) which are used in determining
    the Hope Scholarship Credit and the amounts in Sec.
    25A(d)(2)(A)(ii) which are used in determining the reduction in the
    amount of the Hope Scholarship and Lifetime Learning Credits
    otherwise allowable under Sec. 25A(a) are adjusted for inflation.
    Section 3. 2002 Adjusted Items
      .01 Tax Rate Tables. For tax years beginning in 2002, the tax
    rate tables under Sec. 1 are as follows:
 

Miscellaneous

 
     Table 1 - Section 1(a). - Married Individuals Filing Joint Returns
                           and Surviving Spouses
    ---------------------------------------------------------------------
    If Taxable Income Is:              The Tax Is:
    ---------------------------------------------------------------------
    Not Over $12,000                   10% of the taxable income
    Over $12,000 but not over $46,700  $1,200 plus 15% of excess over
                                        $12,000
    Over $46,700 but not over          $6,405 plus 27% of excess over
     $112,850                           $46,700
    Over $112,850 but not over         $24,265.50 plus 30% of excess
     $171,950                           over $112,850
    Over $171,950 but not over         $41,995.50 plus 35% of excess
     $307,050                           over $171,950
    Over $307,050                      $89,280.50 plus 38.6% of excess
                                        over $307,050
                     -------------------------------
 
               Table 2 - Section 1(b). - Heads of Households
    ---------------------------------------------------------------------
    If Taxable Income Is:              The Tax Is:
    ---------------------------------------------------------------------
    Not Over $10,000                   10% of the taxable income
    Over $10,000 but not over $37,450  $1,000 plus 15% of excess over
                                        $10,000
    Over $37,450 but not over $96,700  $5,117.50 plus 27% of the excess
                                        over $37,450
    Over $96,700 but not over          $21,115 plus 30% of the excess
     $156,600                           over $96,700
    Over $156,600 but not over         $39,085 plus 35% of the excess
     $307,050                           over $156,600
    Over $307,050                      $91,742.50 plus 38.6% of the
                                        excess over $307,050
                     -------------------------------
 
        Table 3 - Section 1(c). - Unmarried Individuals (Other Than
                Surviving Spouses and Heads of Households)
    ---------------------------------------------------------------------
    If Taxable Income Is:              The Tax Is:
    ---------------------------------------------------------------------
    Not Over $6,000                    10% of the taxable income
    Over $6,000 but not over $27,950   $600 plus 15% of the excess over
                                        $6,000
    Over $27,950 but not over $67,770  $3,892.50 plus 27% of the excess
                                        over $27,950
    Over $67,700 but not over          $14,625 plus 30% of the excess
     $141,250                           over $67,700
    Over $141,250 but not over         $36,690 plus 35% of the excess
     $307,050                           over $141,250
    Over $307,050                      $94,720 plus 38.6% of the excess
                                        over $307,050
                     -------------------------------
 
       Table 4 - Section 1(d). - Married Individuals Filing Separate
                                  Returns
    ---------------------------------------------------------------------
    If Taxable Income Is:              The Tax Is:
    ---------------------------------------------------------------------
    Not Over $6,000                    10% of the taxable income
    Over $6,000 but not over $23,350   $600.00 plus 15% of the excess
                                        over $6,000
    Over $23,350 but not over $56,425  $3,202.50 plus 27% of the excess
                                        over $23,350
    Over $56,425 but not over $85,975  $12,132.75 plus 30% of the excess
                                        over $56,425
    Over $85,975 but not over          $20,997.75 plus 35% of the excess
     $153,525                           over $85,975
    Over $153,525                      $44,640.25 plus 38.6% of the
                                        excess over $153,525
                     -------------------------------
 
               Table 5 - Section 1(e). - Estates and Trusts
    ---------------------------------------------------------------------
    If Taxable Income Is:              The Tax Is:
    ---------------------------------------------------------------------
    Not Over $1,850                    15% of the taxable income
    Over $1,850 but not over $4,400    $277.50 plus 27% of the excess
                                        over $1,850
    Over $4,400 but not over $6,750    $966.00 plus 30% of the excess
                                        over $4,400
    Over $6,750 but not over $9,200    $1,671.00 plus 35% of the excess
                                        over $6,750
    Over $9,200                        $2,528.50 plus 38.6% of the
                                        excess over $9,200
                     -------------------------------
      .02 Unearned Income of Minor Children Taxed as if Parent's Income
    (the ''Kiddie Tax''). For tax years beginning in 2002, the amount
    in Sec. 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned
    income reported on the child's return that is subject to the
    ''kiddie tax,'' is $750. (This amount is the same as the $750
    standard deduction amount provided in section 3.07(2) of this
    revenue procedure.) The same $750 amount is also used for purposes
    of Sec. 1(g)(7) (that is, determining whether a parent may elect to
    include a child's gross income in the parent's gross income and for
    calculating the ''kiddie tax'').  For example, one of the
    requirements for such a parental election is that a child's gross
    income be more than the amount referenced in Sec. 1(g)(4)(A)(ii)(I)
    but less than 10 times such amount; thus, a child's gross income
    for 2002 must be more than $750 but less than $7,500 to satisfy
    that requirement.
      .03 Child Tax Credit. Section 201 of the Economic Growth and Tax
    Relief Reconciliation Act of 2001 (EGTRRA) amended Sec. 24 to
    increase the amount of credit under Sec. 24 that may be
    refundable.  The value in Sec. 24(d)(1)(B)(i) used in determining
    the new potentially refundable amount is adjusted for inflation.
    For tax years beginning in 2002, that value is $10,350.
      .04 Hope and Lifetime Learning Credits.
      (1) For taxable years beginning in 2002, 100 percent of qualified
    tuition and related expenses not in excess of $1,000 and 50 percent
    of such expenses in excess of $1,000 are taken into account in
    determining the amount of the Hope Scholarship Credit under Sec.
    25A(b)(1).
      (2) For tax years beginning in 2002, a taxpayer's modified gross
    income in excess of $41,000 ($82,000 in the case of a joint return)
    is taken into account in determining the reduction under Sec.
    25A(d)(2)(A)(ii) in the amount of the Hope Scholarship and Lifetime
    Learning Credits otherwise allowable under Sec. 25A(a).
      .05 Earned Income Tax Credit.
      (1) In general.  For tax years beginning in 2002, the following
    amounts are used to determine the earned income tax credit under
    Sec. 32(b). The ''earned income amount'' is the amount of earned
    income at or above which the maximum amount of the earned income
    tax credit is allowed.  The ''threshold phaseout amount'' is the
    amount of adjusted gross income (or, if greater, earned income)
    above which the maximum amount of the credit begins to phase out.
    The ''completed phaseout amount'' is the amount of adjusted gross
    income (or if greater, earned income) at or above which no credit
    is allowed.
    ---------------------------------------------------------------------
    Item                               Item
                     ----------------
                                                                         
                     ----------------
                                       Number of Qualifying Children
                     ----------------
        Item
                                    ----------------
                                                  
                                    ----------------
        Number of Qualifying Children
                                    ----------------
                                                  
                                    ----------------
        Item
                                    ----------------
                   :               :One            :Two or More
                   :               :               :None
    ---------------------------------------------------------------------
    Earned Income  :$ 7,370        :$10,350        :$ 4,910
     Amount        :               :               :
    Maximum Amount :$ 2,506        :$ 4,140        :$  376
     of Credit     :               :               :
    Threshold      :$13,520        :$13,520        :$ 6,150
     Phaseout      :               :               :
     Amount        :               :               :
    Completed      :$29,201        :$33,178        :$11,060
     Phaseout      :               :               :
     Amount        :               :               :
    Threshold      :$14,520        :$14,520        :$ 7,150
     Phaseout      :               :               :
     Amount        :               :               :
     (Married      :               :               :
     Filing        :               :               :
     Jointly)      :               :               :
    Completed      :$30,201        :$34,178        :$12,060
     Phaseout      :               :               :
     Amount        :               :               :
     (Married      :               :               :
     Filing        :               :               :
     Jointly)      :               :               :
                     -------------------------------
      The Internal Revenue Service, in the instructions for the Form
    1040 series, provides tables showing the amount of the earned
    income tax credit for each type of taxpayer.
      (2) Excessive investment income.  For tax years beginning in
    2002, the earned income tax credit is denied under Sec. 32(i) if
    the aggregate amount of certain investment income exceeds $2,550.
      .06 Alternative Minimum Tax Exemption for a Child Subject to the
    ''Kiddie Tax.'' For tax years beginning in 2002, in the case of a
    child to whom the Sec. 1(g) ''kiddie tax'' applies, the exemption
    amount under Sec. 55 and Sec. 59(j) for purposes of the alternative
    minimum tax under Sec. 55 may not exceed the sum of (A) such
    child's earned income for the taxable year, plus (B) $5,500.
      .07 Standard Deduction.
      (1) In general.  For tax years beginning in 2002, the standard
    deduction amounts under Sec. 63(c)(2) are as follows:
 
    ---------------------------------------------------------------------
    Filing Status                      Standard Deduction
    ---------------------------------------------------------------------
    Married Individuals Filing Joint   $7,850
     Returns and Surviving Spouses
     (Sec. 1(a))
    Heads of Households (Sec. 1(b))    $6,900
    Unmarried Individuals (Other Than  $4,700
     Surviving Spouses and Heads of
     Households) (Sec. 1(c))
    Married Individuals Filing         $3,925
     Separate Returns (Sec. 1(d))
                     -------------------------------
      (2) Dependent. For tax years beginning in 2002, the standard
    deduction amount under Sec. 63(c)(5) for an individual who may be
    claimed as a dependent by another taxpayer may not exceed the
    greater of $750, or the sum of $250 and the individual's earned
    income.
      (3) Aged and blind.  For tax years beginning in 2002, the
    additional standard deduction amounts under Sec. 63(f) for the aged
    and for the blind are $900 for each.  These amounts are increased
    to $1,150 if the individual is also unmarried and not a surviving
    spouse.
      .08 Overall Limitation on Itemized Deductions. For tax years
    beginning in 2002, the ''applicable amount'' of adjusted gross
    income under Sec. 68(b), above which the amount of otherwise
    allowable itemized deductions is reduced under Sec. 68, is $137,300
    (or $68,650 for a separate return filed by a married individual).
      .09 Qualified Transportation Fringe. For tax years beginning in
    2002, the monthly limitation under Sec. 132(f)(2)(A), regarding the
    aggregate fringe benefit exclusion amount for transportation in a
    commuter highway vehicle and any transit pass, is $100. The monthly
    limitation under Sec. 132(f)(2)(B) regarding the fringe benefit
    exclusion amount for qualified parking is $185.
      .10 Income from United States Savings Bonds for Taxpayers Who Pay
    Qualified Higher Education Expenses. For tax years beginning in
    2002, the exclusion under Sec. 135, regarding income from United
    States savings bonds for taxpayers who pay qualified higher
    education expenses, begins to phase out for modified adjusted gross
    income above $86,400 for joint returns and $57,600 for other
    returns.  This exclusion completely phases out for modified
    adjusted gross income of $116,400 or more for joint returns and
    $72,600 or more for other returns.
      .11 Personal Exemption.
      (1) Exemption amount.  For tax years beginning in 2002, the
    personal exemption amount under Sec. 151(d) is $3,000.
      (2) Phaseout. For tax years beginning in 2002, the personal
    exemption amount begins to phase out at, and is completely phased
    out after, the following adjusted gross income amounts:
 
    ---------------------------------------------------------------------
    Filing Status          AGI - Beginning        AGI Above Which
                            Phaseout               Exemption Fully
                                                   Phased Out
    ---------------------------------------------------------------------
    Code Sec. 1(a)         $206,000               $328,500
    Code Sec. 1(b)         $171,650               $294,150
    Code Sec. 1(c)         $137,300               $259,800
    Code Sec. 1(d)         $103,000               $164,250
                     -------------------------------
      .12 Eligible Long-Term Care Premiums. For tax years beginning in
    2002, the limitations under Sec. 213(d), regarding eligible
    long-term care premiums includible in the term ''medical care,''
    are as follows:
 
    ---------------------------------------------------------------------
    Attained age before the close of   Limitation on premiums:
     the taxable year:
    ---------------------------------------------------------------------
    40 or less                         $  240
    More than 40 but not more than 50  $  450
    More than 50 but not more than 60  $  900
    More than 60 but not more than 70  $2,390
    More than 70                       $2,990
                     -------------------------------
      .13 Medical Savings Accounts.
      (1) Self-only coverage.  For tax years beginning in 2002, the
    term ''high deductible health plan'' as defined in Sec.
    220(c)(2)(A) means, in the case of self-only coverage, a health
    plan which has an annual deductible that is not less than $1,650
    and not more than $2,500, and under which the annual out-of-pocket
    expenses required to be paid (other than for premiums) for covered
    benefits does not exceed $3,300.
      (2) Family coverage.  For tax years beginning in 2002, the term
    ''high deductible health plan'' means, in the case of family
    coverage, a health plan which has an annual deductible that is not
    less than $3,300 and not more than $4,950, and under which the
    annual out-of-pocket expenses required to be paid (other than for
    premiums) for covered benefits does not exceed $6,050.
      .14 Treatment of Dues Paid to Agricultural or Horticultural
    Organizations. For tax years beginning in 2002, the limitation
    under Sec. 512(d)(1), regarding the exemption of annual dues
    required to be paid by a member to an agricultural or horticultural
    organization, is $120.
      .15 Insubstantial Benefit Limitations for Contributions
    Associated with Charitable Fund-Raising Campaigns.
      (1) Low cost article.  For tax years beginning in 2002, the
    unrelated business income of certain exempt organizations under
    Sec. 513(h)(2) does not include a ''low cost article'' of $7.90 or
    less.
      (2) Other insubstantial benefits.  For tax years beginning in
    2002, the $5, $25, and $50 guidelines in section 3 of Rev. Proc.
    90-12 (1990-1 C.B. 471) (as amplified and modified), for
    disregarding the value of insubstantial benefits received by a
    donor in return for a fully deductible charitable contribution
    under Sec. 170, are $7.90, $39.50 and $79.00, respectively.
      .16 Funeral Trusts. For a contract entered into during calendar
    year 2002 for a ''qualified funeral trust,'' as defined in Sec.
    685, the trust may not accept aggregate contributions by or for the
    benefit of an individual in excess of $7,700.
      .17 Expatriation to Avoid Tax. For calendar year 2002, the
    thresholds used under Sec. 877(a)(2), regarding whether an
    individual's loss of United States citizenship had the avoidance of
    United States taxes as one of its principal purposes, are more than
    $120,000 for ''average annual net income tax'' and $599,000 or more
    for ''net worth.''
      .18 Valuation of Qualified Real Property in Decedent's Gross
    Estate. For an estate of a decedent dying in calendar year 2002, if
    the executor elects to use the special use valuation method under
    Sec. 2032A for qualified real property, the aggregate decrease in
    the value of qualified real property resulting from electing to use
    Sec. 2032A that is taken into account for purposes of the estate
    tax may not exceed $820,000.
      .19 Annual Exclusion for Gifts.
      (1) For calendar year 2002, the first $11,000 of gifts to any
    person (other than gifts of future interests in property) are not
    included in the total amount of taxable gifts under Sec. 2503 made
    during that year.
      (2) For calendar year 2002, the first $110,000 of gifts to a
    spouse who is not a citizen of the United States (other than gifts
    of future interests in property) are not included in the total
    amount of taxable gifts under Sec. 2503 and 2523(i)(2) made during
    that year.
      .20 Generation-Skipping Transfer Tax Exemption. For calendar year
    2002, the generation-skipping transfer tax exemption under Sec.
    2631, which is allowed in determining the ''inclusion ratio''
    defined in Sec. 2642, is $1,100,000.
      .21 Luxury Automobile Excise Tax. For calendar year 2002, the
    excise tax under Sec. 4001 and 4003 is imposed on the first retail
    sale of a passenger vehicle (including certain parts or accessories
    installed within six months of the date after the vehicle was first
    placed in service), to the extent the price exceeds $40,000.
      .22 Passenger Air Transportation Excise Tax. For calendar year
    2002, the tax under Sec. 4261(c) on any amount paid (whether within
    or without the United States) for any transportation of any person
    by air, if such transportation begins or ends in the United States,
    generally is $13.20. However, in the case of a domestic segment
    beginning or ending in Alaska or Hawaii as described in Sec.
    4261(c)(3), the tax only applies to departures and is at the rate
    of $6.60.
      .23 Reporting Exception for Certain Exempt Organizations with
    Nondeductible Lobbying Expenditures. For tax years beginning in
    2002, the annual per person, family, or entity dues limitation to
    qualify for the reporting exception under Sec. 6033(e)(3) (and
    section 5.05 of Rev. Proc. 98-19, 1998-1 C.B. 547), regarding
    certain exempt organizations with nondeductible lobbying
    expenditures, is $83 or less.
      .24 Notice of Large Gifts Received from Foreign Persons. For tax
    years beginning in 2002, recipients of gifts from certain foreign
    persons may have to report these gifts under Sec. 6039F if the
    aggregate value of gifts received in a taxable year exceeds
    $11,642.
      .25 Persons against Which a Federal Tax Lien is Not Valid. For
    calendar year 2002, a federal tax lien is not valid against (1)
    certain purchasers under Sec. 6323(b)(4) that purchased personal
    property in a casual sale for less than $1,130 or (2) a mechanic's
    lienor under Sec. 6323(b)(7) that repaired or improved certain
    residential property if the contract price with the owner is not
    more than $5,660.
      .26 Property Exempt from Levy. For calendar year 2002, the value
    of property exempt from levy under Sec. 6334(a)(2) (fuel,
    provisions, furniture, and other household personal effects, as
    well as arms for personal use, livestock, and poultry) may not
    exceed $6,780. The value of property exempt from levy under Sec.
    6334(a)(3) (books and tools necessary for the trade, business, or
    profession of the taxpayer) may not exceed $3,390.
      .27 Interest on a Certain Portion of the Estate Tax Payable in
    Installments. For an estate of a decedent dying in calendar year
    2002, the dollar amount used to determine the ''2-percent portion''
    (for purposes of calculating interest under Sec. 6601(j)) of the
    estate tax extended as provided in Sec. 6166 is $1,100,000.
      .28 Attorney Fee Awards. For fees incurred in calendar year 2002,
    the attorney fee award limitation under Sec. 7430(c)(1)(B)(iii) is
    $150 per hour.
      .29 Periodic Payments Received under Qualified Long-Term Care
    Insurance Contracts or under Certain Life Insurance Contracts. For
    calendar year 2002, the stated dollar amount of the per diem
    limitation under Sec. 7702B(d)(4), regarding periodic payments
    received under a qualified long-term care insurance contract or
    periodic payments received under a life insurance contract that are
    treated as paid by reason of the death of a chronically ill
    individual, is $210.
    Section 4. Effective Date
      .01 General Rule. Except as provided in section 4.02, this
    revenue procedure applies to tax years beginning in 2002.
      .02 Calendar Year Rule. This revenue procedure applies to
    transactions or events occurring in calendar year 2002 for purposes
    of section 3.16 (funeral trusts), section 3.17 (expatriation to
    avoid tax), section 3.18 (valuation of qualified real property in
    decedent's gross estate), section 3.19 (annual exclusion for
    gifts), section 3.20 (generation-skipping transfer tax exemption),
    section 3.21 (luxury automobile excise tax), section 3.22
    (passenger air transportation excise tax), section 3.25 (persons
    against which a federal tax lien is not valid), section 3.26
    (property exempt from levy), section 3.27 (interest on a certain
    portion of the estate tax payable in installments), section 3.28
    (attorney fee awards), and section 3.29 (periodic payments received
    under qualified long-term care insurance contracts or under certain
    life insurance contracts).
                       TAX TABLES FOR PRIOR TAX YEARS
      Inflation adjusted items for certain prior tax years were
    contained in the following:
      Revenue Procedure 2001-13 provided inflation adjusted items for
    tax years beginning in 2001.
      Revenue Procedure 99-42 provided inflation adjusted items for tax
    years beginning in 2000.
      Revenue Procedure 98-61 provided inflation adjusted items for tax
    years beginning in 1999.
      Revenue Procedure 97-57 provided inflation adjusted items for tax
    years beginning in 1998.
      Revenue Procedure 96-59 provided inflation adjusted items for tax
    years beginning in 1997.
      Revenue Procedure 95-53 provided inflation adjusted items for tax
    years beginning in 1996.
      Revenue Procedure 94-72 provided inflation adjusted items for tax
    years beginning in 1995.
      Revenue Procedure 93-49 provided inflation adjusted items for tax
    years beginning in 1994.
      Revenue Procedure 92-102 provided inflation adjusted items for
    tax years beginning in 1993.
      Revenue Procedure 91-65 provided inflation adjusted items for tax
    years beginning in 1992.
      Revenue Procedure 90-64 provided inflation adjusted items for tax
    years beginning in 1991.
      Revenue Procedure 90-7 provided inflation adjusted items for tax
    years beginning in 1990.
      Revenue Procedure 88-56 provided inflation adjusted items for tax
    years beginning in 1989.
      Revenue Procedure 85-55 provided income tax cost-of-living
    adjustment (indexing) factor with respect to taxable years
    beginning in 1986.
      Revenue Procedure 84-79 provided income tax cost-of-living
    adjustment (indexing) factor with respect to taxable years
    beginning in 1985.
 

References in Text

                             REFERENCES IN TEXT
      The enactment of this clause, referred to in subsec.
    (h)(13)(A)(iii), means the date of enactment of Pub. L. 105-206,
    which was approved July 22, 1998.
 

Miscellaneous

                                 AMENDMENTS

2006 - Pension Protection Act of 2006 (P.L. 109-280)
SEC. 1304. <<NOTE: 26 USC 1 note.>> QUALIFIED TUITION PROGRAMS.
    (a) Permanent Extension of Modifications.--Section 901 of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to 
sunset provisions) shall not apply to section 402 of such Act (relating 
to modifications to qualified tuition programs).
   
    2006 - P.L. 109-222
    SEC. 510. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED INCOME IS 
            TAXED AS IF PARENT'S INCOME.
    (a) In General.--Section <<NOTE: 26 USC 1.>> 1(g)(2)(A) (relating to 
    child to whom subsection applies) is amended by striking ``age 14'' and 
    inserting ``age 18''.
    (b) Treatment of Distributions From Qualified Disability Trusts.--
    Section 1(g)(4) (relating to net unearned income) is amended by adding 
    at the end the following new subparagraph:
                    ``(C) Treatment of distributions from qualified 
                disability trusts.--For purposes of this subsection, in 
                the case of any child who is a beneficiary of a 
                qualified disability trust (as defined in section 
                642(b)(2)(C)(ii)), any amount included in the income of 
                such child under sections 652 and 662 during a taxable 
                year shall be considered earned income of such child for 
                such taxable year.''.
    (c) Conforming Amendment.--Section 1(g)(2) is amended by striking 
    ``and'' at the end of subparagraph (A), by striking the period at the 
    end of subparagraph (B) and inserting ``, and'', and by inserting after 
    subparagraph (B) the following new subparagraph:
                    ``(C) such child does not file a joint return for 
                the taxable year.''.
    (d) Effective Date.--The <<NOTE: 26 USC 1 note.>> amendments made by 
    this section shall apply to taxable years beginning after December 31, 
    2005.

     2006 - P.L. 109-222: 
     SEC. 102. CAPITAL GAINS AND DIVIDENDS RATES.
     Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 
     2003 is <<NOTE: 26 USC 1 note.>> amended by striking ``December 31, 
     2008'' and inserting ``December 31, 2010''.

     2004 - Pub. L. 108-357, Sec. 413(c)(1). Section 1(h) is amended in
     paragraph (10), by inserting ``and'' at the end of subparagraph (F),
     by striking subparagraph (G), and by redesignating subparagraph (H)
     as subparagraph (G), and  by striking ``a foreign personal holding
     company (as defined in section 552), a foreign investment company
     (as defined in section 1246(b)), or'' in paragraph (11)(C)(iii).

     2004 - Pub.L. 108-311, Sec 105.  APPLICATION OF EGTRRA SUNSET TO 
     THIS TITLE.
    Each amendment made by this title shall be subject to title IX of 
    the Economic Growth and Tax Relief Reconciliation Act of 2001 to the 
    same extent and in the same manner as the provision of such Act to which 
    such amendment relates.

    2004 - Subsec.408(a)(2),Pub.L.108-311, made clerical
    amendments to Sec.1(h)(6)(A)(ii)(I) and (II) by striking
    "(5)(A)" and "(5)(B)" and inserting "(4)(A)" and "(4)(B)".
    2004 - Pub. L. 108-311, Sec. 402.  Section 1(h)(1)(D) is 
    amended by inserting ``(determined without regard to paragraph (11))''
    after ``net capital gain''; Subclause (I) of section 1(h)(11)(B)(iii)
    is amended: by striking ``section 246(c)(1)'' and inserting 
    ``section 246(c)'',and by striking ``120-day period'' and inserting 
    ``121-day period'', and by striking ``90-day period'' and inserting 
    ``91-day period''; Clause (ii) of section 1(h)(11)(D) is amended by 
    striking ``an individual'' and inserting ``a taxpayer to whom 
    this section applies''.

      2003 - Subsec. 301(a)(1), Pub L. 108-27 amends Sec 1(h)(1)(B)
       as follows: striking ``10 percent'' and inserting ``5 percent   
      (0 percent in the case of taxable years beginning after 2007)''.
       Sec.1(h)(1)(C) is also amended to change 20% to 15%.
      2003 - Subsec. (i)(2).  Pub. L. 108-027 amends the tax rate
       table in subsec. (i)(2).  Amendment effective for taxable
       years beginning after December 31, 2002.

      2003 - Subsec.303, Pub. L. 108-27, Sunset Title -
            All provisions of, and amendments made by, this title
       shall not apply to taxable years beginning after December 31,
       2010, and the Internal Revenue Code of 1986 shall be applied 
       and administered to such years as if such provisions and 
       amendments had never been enacted
      2003 - Subsec.302(f), Pub. L. 108-27, states that--
         Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section (Sec. 302) shall apply to
        taxable years beginning after December 31, 2002.
            (2) Regulated investment companies and real estate 
        investment trusts.--In the case of a regulated investment 
        company or a real estate investment trust, the amendments made 
        by this section shall apply to taxable years ending after 
        December 31, 2002; except that dividends received by such a 
        company or trust on or before such date shall not be treated as 
        qualified dividend income (as defined in section 1(h)(11)(B) of 
        the Internal Revenue Code of 1986, as added by this Act).
 
      2003 - Subsec. (i)(1)(B) and (C).  Pub. L. 108-27, Sec. 104(a) & (b), Amends
       for taxable years beginning after December 31, 2004.

      2003 - Subsec. (f)(7)(B).  Pub. L. 108-27, Sec. 102(a)&(b), amends
       applicable percentage for years 2003 and 2004, and is effective for
       taxable years beginning after December 31, 2002.

      2002 - Subsec.414((b), Pub. L. 107-147, states that amendments
    by Sec. 414 related to and amending the Taxpayer Relief Act of     
    1997 shall take effect as if included in section 311 of the 
    Taxypayer Relief Act of 1997--
      Amendments Related to Section 311 of the Act.--Section 311(e) of 
      the Taxpayer Relief Act of 1997 (Public Law 105-34; 111 Stat. 
      836) <<NOTE: 26 USC 1 note.>>  is amended--
            (1) in paragraph (2)(A), by striking ``recognized'' and 
        inserting ``included in gross income'', and
            (2) by adding at the end the following new paragraph:
            ``(5) Disposition of interest in passive activity.--Section 
        469(g)(1)(A) of the Internal Revenue Code of 1986 shall not 
        apply by reason of an election made under paragraph (1).''.

      2001 - Subsec. (g)(7)(B)(ii)(II). Pub. L. 107-16, Sec. 101(c)(1),
    901, which directed amendment of subcl. (II) by temporarily
    substituting ''10 percent.'' for ''15 percent'', was executed by
    temporarily substituting ''10 percent'' for ''15 percent'', to
    reflect the probable intent of Congress. See Effective and
    Termination Dates of 2001 Amendment note below.
      Subsec. (h)(1)(A)(ii)(I), (B)(i). Pub. L. 107-16, Sec.
    101(c)(2)(A), 901, temporarily substituted ''25 percent'' for ''28
    percent''.  See Effective and Termination Dates of 2001 Amendment
    note below.
      Subsec. (h)(13). Pub. L. 107-16, Sec. 101(c)(2)(B), 901,
    temporarily struck out par. (13), which set out special rules for
    determination of 28-percent rate gain, unrecaptured section 1250
    gain, pass-thru entities, and charitable remainder trusts.  See
    Effective and Termination Dates of 2001 Amendment note below.
      Subsec. (i). Pub. L. 107-16, Sec. 101(a), 901, temporarily added
    subsec. (i). See Effective and Termination Dates of 2001 Amendment
    note below.
      2000 - Subsec.(h)(8). Pub. L. 106-554 substituted ''means the
    excess of - '' and subpars. (A) and (B) for ''means an amount equal
    to the gain excluded from gross income under section 1202(a).''
      1998 - Subsec. (g)(3)(C), (D). Pub. L. 105-206, Sec. 6007(f)(1),
    redesignated subpar. (D) as (C) and struck out heading and text of
    former subpar. (C). Text read as follows: ''If tax is imposed under
    section 644(a)(1) with respect to the sale or exchange of any
    property of which the parent was the transferor, for purposes of
    applying subparagraph (A) to the taxable year of the parent in
    which such sale or exchange occurs -
        ''(i) taxable income of the parent shall be increased by the
      amount treated as included in gross income under section
      644(a)(2)(A)(i), and
        ''(ii) the amount described in subparagraph (A)(ii) shall be
      increased by the amount of the excess referred to in section
      644(a)(2)(A).''
      Subsec. (h). Pub. L. 105-206, Sec. 6005(d)(1), reenacted subsec.
    heading without change and amended text of subsec. (h) generally,
    substituting present provisions comprising pars. (1) to (13) for
    former similar provisions comprising pars. (1) to (11).
      Subsec. (h)(5). Pub. L. 105-206, Sec. 5001(a)(1), amended par.
    (5) generally.  Prior to amendment, par. (5) read as follows:
      ''(5) 28-percent rate gain. - For purposes of this subsection -
        ''(A) In general. - The term '28-percent rate gain' means the
      excess (if any) of -
          ''(i) the sum of -
            ''(I) the aggregate long-term capital gain from property
          held for more than 1 year but not more than 18 months;
            ''(II) collectibles gain; and
            ''(III) section 1202 gain, over
          ''(ii) the sum of -
            ''(I) the aggregate long-term capital loss (not described
          in subclause (IV)) from property referred to in clause
          (i)(I);
            ''(II) collectibles loss;
            ''(III) the net short-term capital loss; and
            ''(IV) the amount of long-term capital loss carried under
          section 1212(b)(1)(B) to the taxable year.
        ''(B) Special rules. -
          ''(i) Short sale gains and holding periods. - Rules similar
        to the rules of section 1233(b) shall apply where the
        substantially identical property has been held more than 1 year
        but not more than 18 months; except that, for purposes of such
        rules -
            ''(I) section 1233(b)(1) shall be applied by substituting
          '18 months' for '1 year' each place it appears; and
            ''(II) the holding period of such property shall be treated
          as being 1 year on the day before the earlier of the date of
          the closing of the short sale or the date such property is
          disposed of.
          ''(ii) Long-term losses. - Section 1233(d) shall be applied
        separately by substituting '18 months' for '1 year' each place
        it appears.
          ''(iii) Options. - A rule similar to the rule of section
        1092(f) shall apply where the stock was held for more than 18
        months.
          ''(iv) Section 1256 contracts. - Amounts treated as long-term
        capital gain or loss under section 1256(a)(3) shall be treated
        as attributable to property held for more than 18 months.''
      Subsec. (h)(6)(A). Pub. L. 105-206, Sec. 5001(a)(2), substituted
    ''1 year'' for ''18 months''.
      Subsec. (h)(7)(A)(i), (ii). Pub. L. 105-206, Sec. 5001(a)(3),
    amended cls. (i) and (ii) generally.  Prior to amendment, cls. (i)
    and (ii) read as follows:
      ''(i) the amount of long-term capital gain (not otherwise treated
    as ordinary income) which would be treated as ordinary income if -
        ''(I) section 1250(b)(1) included all depreciation and the
      applicable percentage under section 1250(a) were 100 percent, and
        ''(II) only gain from property held for more than 18 months
      were taken into account, over
      ''(ii) the excess (if any) of -
        ''(I) the amount described in paragraph (5)(A)(ii), over
        ''(II) the amount described in paragraph (5)(A)(i).''
      Subsec. (h)(13). Pub. L. 105-206, Sec. 5001(a)(4), struck out
    ''for periods during 1997'' after ''Special rules'' in par. heading
    and amended headings and text of subpars. (A) and (B) generally.
    Prior to amendment, subpars. (A) and (B) read as follows:
      ''(A) Determination of 28-percent rate gain. - In applying
    paragraph (5) -
        ''(i) the amount determined under subclause (I) of paragraph
      (5)(A)(i) shall include long-term capital gain (not otherwise
      described in paragraph (5)(A)(i)) which is properly taken into
      account for the portion of the taxable year before May 7, 1997;
        ''(ii) the amounts determined under subclause (I) of paragraph
      (5)(A)(ii) shall include long-term capital loss (not otherwise
      described in paragraph (5)(A)(ii)) which is properly taken into
      account for the portion of the taxable year before May 7, 1997;
      and
        ''(iii) clauses (i)(I) and (ii)(I) of paragraph (5)(A) shall be
      applied by not taking into account any gain and loss on property
      held for more than 1 year but not more than 18 months which is
      properly taken into account for the portion of the taxable year
      after May 6, 1997, and before July 29, 1997.
      ''(B) Other special rules. -
        ''(i) Determination of unrecaptured section 1250 gain not to
      include pre-may 7, 1997 gain. - The amount determined under
      paragraph (7)(A)(i) shall not include gain properly taken into
      account for the portion of the taxable year before May 7, 1997.
        ''(ii) Other transitional rules for 18-month holding period. -
      Paragraphs (6)(A) and (7)(A)(i)(II) shall be applied by
      substituting '1 year' for '18 months' with respect to gain
      properly taken into account for the portion of the taxable year
      after May 6, 1997, and before July 29, 1997.''
      Subsec. (h)(13)(B). Pub. L. 105-277, Sec. 4002(i)(1), substituted
    ''paragraph (7)(A)(i)'' for ''paragraph (7)(A)'' in introductory
    provisions.
      Subsec. (h)(13)(D). Pub. L. 105-277, Sec. 4002(i)(3), added
    subpar. (D).
      1997 - Subsec. (h). Pub. L. 105-34 amended heading and text of
    subsec. (h) generally.  Prior to amendment, text read as follows:
    ''If a taxpayer has a net capital gain for any taxable year, then
    the tax imposed by this section shall not exceed the sum of -
        ''(1) a tax computed at the rates and in the same manner as if
      this subsection had not been enacted on the greater of -
          ''(A) taxable income reduced by the amount of the net capital
        gain, or
          ''(B) the amount of taxable income taxed at a rate below 28
        percent, plus
        ''(2) a tax of 28 percent of the amount of taxable income in
      excess of the amount determined under paragraph (1).
    For purposes of the preceding sentence, the net capital gain for
    any taxable year shall be reduced (but not below zero) by the
    amount which the taxpayer elects to take into account as investment
    income for the taxable year under section 163(d)(4)(B)(iii).''
      1996 - Subsec. (g)(7)(A)(ii). Pub. L. 104-188, Sec. 1704(m)(1),
    amended cl. (ii) generally.  Prior to amendment, cl. (ii) read as
    follows: ''such gross income is more than $500 and less than
    $5,000,''.
      Subsec. (g)(7)(B)(i). Pub. L. 104-188, Sec. 1704(m)(2)(A),
    substituted ''twice the amount described in paragraph
    (4)(A)(ii)(I)'' for ''$1,000''.
      Subsec. (g)(7)(B)(ii)(II). Pub. L. 104-188, Sec. 1704(m)(2)(B),
    amended subcl. (II) generally.  Prior to amendment, subcl. (II)
    read as follows: ''for each such child, the lesser of $75 or 15
    percent of the excess of the gross income of such child over $500,
    and''.
      1993 - Subsecs. (a) to (e). Pub. L. 103-66, Sec. 13201(a),
    13202(a), amended subsecs. (a) to (e) generally, substituting
    five-tiered tax tables for all categories applicable to tax years
    after December 31, 1992, for prior three-tiered tax tables.
      Subsec. (f)(1). Pub. L. 103-66, Sec. 13201(b)(3)(A)(i),
    substituted ''1993'' for ''1990''.
      Subsec. (f)(3)(B). Pub. L. 103-66, Sec. 13201(b)(3)(A)(ii),
    substituted ''1992'' for ''1989''.
      Subsec. (f)(7). Pub. L. 103-66, Sec. 13201(b)(3)(B), added par.
    (7).
      Subsec. (h). Pub. L. 103-66, Sec. 13206(d)(2), inserted as
    concluding provision at end ''For purposes of the preceding
    sentence, the net capital gain for any taxable year shall be
    reduced (but not below zero) by the amount which the taxpayer
    elects to take into account as investment income for the taxable
    year under section 163(d)(4)(B)(iii).''
      1990 - Subsecs. (a) to (e). Pub. L. 101-508, Sec. 11101(a),
    amended subsecs. (a) to (e) generally, substituting three-tiered
    tax tables for all categories applicable to tax years after Dec.
    31, 1990, for prior two-tiered tax tables.
      Subsec. (f)(1). Pub. L. 101-508, Sec. 11101(d)(1)(A)(i),
    substituted ''1990'' for ''1988''.
      Subsec. (f)(3)(B). Pub. L. 101-508, Sec. 11101(d)(1)(A)(ii),
    substituted ''1989'' for ''1987''.
      Subsec. (f)(6)(A). Pub. L. 101-508, Sec. 11104(b)(1), substituted
    ''section 151(d)(4)'' for ''section 151(d)(3)''.
      Pub. L. 101-508, Sec. 11103(c), inserted reference to section
    68(b)(2).
      Pub. L. 101-508, Sec. 11101(b)(2), struck out ''subsection
    (g)(4),'' after ''paragraph (2)(A),''.
      Subsec. (f)(6)(B). Pub. L. 101-508, Sec. 11104(b)(2), substituted
    ''section 151(d)(4)(A)'' for ''section 151(d)(3)''.
      Subsec. (g). Pub. L. 101-508, Sec. 11101(d)(2), redesignated
    subsec. (i) as (g).
      Pub. L. 101-508, Sec. 11101(b)(1), struck out subsec. (g) which
    provided for phaseout of 15-percent rate and personal exemptions.
      Subsec. (h). Pub. L. 101-508, Sec. 11101(d)(2), redesignated
    subsec. (j) as (h) and struck out former subsec. (h) which provided
    tax schedules for taxable years beginning in 1987.
      Subsec. (i). Pub. L. 101-508, Sec. 11101(d)(2), redesignated
    subsec. (i) as (g).
      Subsec. (j). Pub. L. 101-508, Sec. 11101(d)(2), redesignated
    subsec. (j) as (h).
      Pub. L. 101-508, Sec. 11101(c), amended subsec. (j) generally.
    Prior to amendment, subsec. (j) read as follows:
      ''(1) In general. - If a taxpayer has a net capital gain for any
    taxable year to which this subsection applies, then the tax imposed
    by this section shall not exceed the sum of -
        ''(A) a tax computed at the rates and in the same manner as if
      this subsection had not been enacted on the greater of -
          ''(i) the taxable income reduced by the amount of net capital
        gain, or
          ''(ii) the amount of taxable income taxed at a rate below 28
        percent, plus
        ''(B) a tax of 28 percent of the amount of taxable income in
      excess of the amount determined under subparagraph (A), plus
        ''(C) the amount of increase determined under subsection (g).
      ''(2) Years to which subsection applies. - This subsection shall
    apply to -
        ''(A) any taxable year beginning in 1987, and
        ''(B) any taxable year beginning after 1987 if the highest rate
      of tax set forth in subsection (a), (b), (c), (d), or (e)
      (whichever applies) for such taxable year exceeds 28 percent.''
      1989 - Subsec. (f)(6)(B). Pub. L. 101-239, Sec. 7831(a),
    substituted ''subsection (c)(4) of section 63 (as it applies to
    subsections (c)(5)(A) and (f) of such section) and section
    151(d)(3)'' for ''section 63(c)(4)''.
      Subsec. (i)(3)(C), (D). Pub. L. 101-239, Sec. 7811(j)(1),
    redesignated subpar. (C), relating to special rule where parent has
    different taxable year, as (D).
      Subsec. (i)(7)(A). Pub. L. 101-239, Sec. 7816(b), inserted
    ''(other than for purposes of this paragraph)'' after ''shall be
    treated'' in concluding provisions.
      1988 - Subsec. (g)(2). Pub. L. 100-647, Sec. 1001(a)(3), inserted
    provision relating to application of subpar. (B) at end of last
    sentence.
      Subsec. (i)(3)(A). Pub. L. 100-647, Sec. 1014(e)(2), substituted
    ''any exclusion, deduction, or credit'' for ''any deduction or
    credit''.
      Subsec. (i)(3)(C). Pub. L. 100-647, Sec. 1014(e)(7), added
    subpar. (C) relating to special rule where parent has different
    taxable year.
      Pub. L. 100-647, Sec. 1014(e)(1), added subpar. (C) relating to
    coordination with section 644.
      Subsec. (i)(4)(A)(i). Pub. L. 100-647, Sec. 1014(e)(3)(A),
    substituted ''adjusted gross income'' for ''gross income'' and
    inserted ''attributable to'' after ''which is not''.
      Subsec. (i)(4)(A)(ii)(II). Pub. L. 100-647, Sec.
    1014(e)(3)(B)-(D), substituted ''his deductions'' for ''his
    deduction'', ''the itemized deductions allowed'' for ''the
    deductions allowed'', and ''adjusted gross income'' for ''gross
    income''.
      Subsec. (i)(5)(A). Pub. L. 100-647, Sec. 1014(e)(6), substituted
    ''custodial parent (within the meaning of section 152(e))'' for
    ''custodial parent''.
      Subsec. (i)(7). Pub. L. 100-647, Sec. 6006(a), added par. (7).
      1986 - Subsecs. (a) to (e). Pub. L. 99-514, Sec. 101(a), in
    amending subsecs. (a) to (e) generally, substituted a general tax
    table for tax tables (1), (2), and (3) in each subsec. applicable
    to taxable years beginning in 1982, 1983, and after 1983,
    respectively.
      Subsec. (f). Pub. L. 99-514, Sec. 101(a), in amending subsec. (f)
    generally, in par. (1) substituted ''1988,'' for ''1984'' and
    struck out ''paragraph (3) of'' before ''subsections'', in par. (2)
    struck out ''paragraph (3) of'' before ''subsection'' in
    introductory provisions, substituted subpars. (A) to (C) for former
    subpars. (A) to (C) which read as follows:
        ''(A) by increasing -
          ''(i) the maximum dollar amount on which no tax is imposed
        under such table, and
          ''(ii) the minimum and maximum dollar amounts for each rate
        bracket for which a tax is imposed under such table,
      by the cost-of-living adjustment for such calendar year,
        ''(B) by not changing the rate applicable to any rate bracket
      as adjusted under subparagraph (A)(ii), and
        ''(C) by adjusting the amounts setting forth the tax to the
      extent necessary to reflect the adjustments in the rate
      brackets.'',
    and struck out concluding provisions which read as follows: ''If
    any increase determined under subparagraph (A) is not a multiple of
    $10, such increase shall be rounded to the nearest multiple of $10
    (or if such increase is a multiple of $5, such increase shall be
    increased to the next highest multiple of $10).'', in par. (3)(B)
    substituted ''1987'' for ''1983'', in par. (4) substituted ''August
    31'' for ''September 30'', in par. (5) inserted requirement that
    the Consumer Price Index most consistent with such Index for
    calendar year 1986 be used, and added par. (6).
      Subsecs. (g), (h). Pub. L. 99-514, Sec. 101(a), in amending
    section generally, added subsecs. (g) and (h).
      Subsec. (i). Pub. L. 99-514, Sec. 1411(a), added subsec. (i).
      Subsec. (j). Pub. L. 99-514, Sec. 302(a), added subsec. (j).
      1982 - Subsecs. (d), (e). Pub. L. 97-448, Sec. 101(a)(3), set out
    as a note below, provided for amendment of the tables applying to
    married individuals filing separately or to estates and trusts so
    as to correct any figure differing by not more than 50 cents from
    the correct amount under the formula used in constructing such
    table.  Corrections to the tables in subsecs. (d) and (e) appeared
    in Announcement 83-50 contained in Internal Revenue Bulletin No.
    1983-12 of Mar. 21, 1983.
      1981 - Subsecs. (a) to (e). Pub. L. 97-34, Sec. 101(a), generally
    revised tax tables downward providing for cumulative
    across-the-board reductions of 23 percent on a three phase schedule
    under which different new rates were set for taxable years
    beginning in 1982, for taxable years beginning in 1983, and for
    taxable years beginning after 1983.
      Subsec. (f). Pub. L. 97-34, Sec. 104(a), added subsec. (f).
      1978 - Subsec. (a). Pub. L. 95-600 generally made a downward
    revision of tax table for married individuals filing joint returns
    and surviving spouses resulting in a table under which, among other
    changes, a bottom bracket imposing no tax on taxable income of
    $3,400 or less was substituted for a bottom bracket imposing no tax
    on taxable income of $3,200 or less.
      Subsec. (b). Pub. L. 95-600 generally made a downward revision of
    tax table for heads of household resulting in a table under which,
    among other changes, a bottom bracket imposing no tax on taxable
    income of $2,300 or less was substituted for a bottom bracket
    imposing no tax on taxable income of $2,200 or less.
      Subsec. (c). Pub. L. 95-600 generally made a downward revision of
    tax table for unmarried individuals other than surviving spouses
    and heads of households resulting in a table under which, among
    other changes, a bottom bracket imposing no tax on taxable income
    of $2,300 or less was substituted for a bottom bracket imposing no
    tax on taxable income of $2,200 or less.
      Subsec. (d). Pub. L. 95-600 generally made a downward revision of
    tax tables for married individuals filing separate returns
    resulting in a table under which, among other changes, a bottom
    bracket imposing no tax on taxable income of $1,700 or less was
    substituted for a bottom bracket imposing no tax on taxable income
    of $1,600 or less.
      Subsec. (e). Pub. L. 95-600 generally made a downward revision of
    tax tables for estates and trusts resulting in a table under which,
    among other changes, a bottom bracket under which a tax of 14% is
    imposed on taxable income of $1,050 for a bottom bracket under
    which a tax of 14% was imposed on taxable income of $500 or less.
      1977 - Subsec. (a). Pub. L. 95-30 generally made a downward
    revision of tax table for married individuals filing joint returns
    and surviving spouses resulting in a table under which, among other
    changes, a bottom bracket imposing no tax on taxable income of
    $3,200 or less was substituted for a bottom bracket under which a
    tax of 14% had been imposed on a taxable income of $1,000 or less.
      Subsec. (b). Pub. L. 95-30 generally made a downward revision of
    tax table for heads of households resulting in a table under which,
    among other changes, a bottom bracket imposing no tax on taxable
    income of $2,200 or less was substituted for a bottom bracket under
    which a tax of 14% had been imposed on a taxable income of $1,000
    or less.
      Subsec. (c). Pub. L. 95-30 generally made a downward revision of
    tax table for unmarried individuals other than surviving spouses
    and heads of households resulting in a table under which, among
    other changes, a bottom bracket imposing no tax on taxable income
    of $2,200 or less was substituted for a bottom bracket under which
    a tax of 14% had been imposed on a taxable income of $500 or less.
      Subsec. (d). Pub. L. 95-30 generally made a downward revision of
    tax table for married individuals filing separate returns resulting
    in a table under which, among other changes, a bottom bracket
    imposing no tax on taxable income of $1,600 or less was substituted
    for a bottom bracket under which a tax of 14% had been imposed on a
    taxable income of $500 or less.  Provisions making table applicable
    to estates and trusts were struck out.  See subsec. (e).
      Subsec. (e). Pub. L. 95-30 added subsec. (e) consisting of table
    formerly contained in subsec. (d) but without any downward revision
    and limited so as to apply only to estates and trusts.
      1969 - Subsec. (a). Pub. L. 91-172 substituted a table of rates
    of tax for married individuals filing joint returns and surviving
    spouses for the tables of rates of tax on individuals.  For rates
    of taxes on unmarried individuals and married persons filing
    separate returns, see subsecs. (c) and (d) of this section.
      Subsec. (b). Pub. L. 91-172 generally revised rates of tax of
    heads of household downwards and struck out provisions defining
    head of household, determination of status, and limitations.  For
    definition of head of household, determination of status, and
    limitations, see section 2(b) of this title.
      Subsec. (c). Pub. L. 91-172 substituted rates of tax on unmarried
    individuals (other than surviving spouses and heads of household)
    for special rules explaining the rates of tax imposed under former
    subsecs. (a) and (b)(1) and prescribing a maximum limit of 87
    percent of the taxable year.
      Subsec. (d). Pub. L. 91-172 substituted a table of rates of tax
    for married individuals filing separate returns for provision
    prescribing the applicability of the rates to non-resident aliens.
    For applicability of rates of tax to non-resident aliens, see
    section 2(d) of this title.
      Subsec. (e). Pub. L. 91-172 struck out cross reference to section
    63. See section 2(e) of this title.
      1966 - Subsecs. (d), (e). Pub. L. 89-809 added subsec. (d) and
    redesignated former subsec. (d) as (e).
      1964 - Pub. L. 88-272 amended section generally by splitting the
    former first bracket which started at $2,000 into four new
    brackets, the 14 percent bracket representing a 30 percent
    reduction, the 15 percent bracket a 25 percent cut, and the 16
    percent bracket a 20 percent cut, and reducing all other brackets
    by cuts averaging about 20 percent and effectuated these cuts in
    two steps, one in 1964, and one in 1965.

                   EFFECTIVE DATE OF 2006 AMENDMENT            
    2006 - P.L. 109-222
    SEC. 510. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED INCOME IS 
            TAXED AS IF PARENT'S INCOME.
    (d) Effective Date.--The <<NOTE: 26 USC 1 note.>> amendments made by 
    this section shall apply to taxable years beginning after December 31, 
    2005.

             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Pub. L. 107-16, title I, Sec. 101(d), June 7, 2001, 115 Stat. 44,
    provided that:
      ''(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section (enacting section 6428 of this
    title and amending this section and sections 15, 531, 541, 3402,
    and 3406 of this title) shall apply to taxable years beginning
    after December 31, 2000.
      ''(2) Amendments to withholding provisions. - The amendments made
    by paragraphs (6), (7), (8), (9), (10), and (11) of subsection (c)
    (amending sections 3402 and 3406 of this title) shall apply to
    amounts paid after the 60th day after the date of the enactment of
    this Act (June 7, 2001). References to income brackets and rates of
    tax in such paragraphs shall be applied without regard to section
    1(i)(1)(D) of the Internal Revenue Code of 1986.''
      Pub. L. 107-16, title III, Sec. 301(d), June 7, 2001, 115 Stat.
    54, provided that: ''The amendments made by this section (amending
    this section and section 63 of this title) shall apply to taxable
    years beginning after December 31, 2004.''
      Pub. L. 107-16, title III, Sec. 302(c), June 7, 2001, 115 Stat.
    54, provided that: ''The amendments made by this section (amending
    this section) shall apply to taxable years beginning after December
    31, 2004.''

      Pub. L. 107-16, title IX, Sec. 901, June 7, 2001, 115 Stat. 150,
    provided that:
      ''(a) In General. - All provisions of, and amendments made by,
    this Act (see Tables for classification) shall not apply -
        ''(1) to taxable, plan, or limitation years beginning after
      December 31, 2010, or
        ''(2) in the case of title V (see Tables for classification),
      to estates of decedents dying, gifts made, or generation skipping
      transfers, after December 31, 2010.
      ''(b) Application of Certain Laws. - The Internal Revenue Code of
    1986 and the Employee Retirement Income Security Act of 1974 (29
    U.S.C. 1001 et seq.) shall be applied and administered to years,
    estates, gifts, and transfers described in subsection (a) as if the
    provisions and amendments described in subsection (a) had never
    been enacted.''
       Pub. L. 107-358 amended PL 107-16, Sec. 901, by inserting the
    following new subsection:
     "(c) Exception.--Subsection (a) shall not apply to section 803 
      (relating to no federal income tax on restitution received by 
      victims of the Nazi regime or their heirs or estates)."


                      EFFECTIVE DATE OF 2000 AMENDMENT
      Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec. 117(c)), Dec. 21,
    2000, 114 Stat. 2763, 2763A-605, provided that: ''The amendments
    made by this section (amending this section and section 1202 of
    this title) shall apply to stock acquired after the date of the
    enactment of this Act (Dec. 21, 2000).''
                     EFFECTIVE DATE OF 1998 AMENDMENTS
      Pub. L. 105-277, div.  J, title IV, Sec. 4002(k), Oct. 21, 1998,
    112 Stat. 2681-908, provided that: ''The amendments made by this
    section (amending this section and sections 408A, 6015, 6103, 6159,
    7421, 7443A, and 7491 of this title and amending provisions set out
    as a note under section 6601 of this title) shall take effect as if
    included in the provisions of the 1998 Act (Pub. L. 105-206) to
    which they relate.''
      Pub. L. 105-206, title V, Sec. 5001(b), July 22, 1998, 112 Stat.
    788, provided that:
      ''(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section (amending this section and sections
    1223 and 1235 of this title) shall apply to taxable years ending
    after December 31, 1997.
      ''(2) Subsection (a)(5). - The amendments made by subsection
    (a)(5) (amending sections 1223 and 1235 of this title) shall take
    effect on January 1, 1998.''
      Pub. L. 105-206, title VI, Sec. 6024, July 22, 1998, 112 Stat.
    826, provided that: ''Except as otherwise provided in this title
    (see Tables for classification), the amendments made by this title
    shall take effect as if included in the provisions of the Taxpayer
    Relief Act of 1997 (Pub. L. 105-34) to which they relate.''
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Section 311(d) of Pub. L. 105-34 provided that:
      ''(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section (amending this section, sections
    55, 57, 904, 1445, and 7518 of this title, and section 1177 of
    Title 46, Appendix, Shipping) shall apply to taxable years ending
    after May 6, 1997.
      ''(2) Withholding. - The amendment made by subsection (c)(1)
    (amending section 1445 of this title) shall apply only to amounts
    paid after the date of the enactment of this Act (Aug. 5, 1997).''
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 1704(m)(4) of Pub. L. 104-188 provided that: ''The
    amendments made by this subsection (amending this section and
    section 59 of this title) shall apply to taxable years beginning
    after December 31, 1995.''
                      EFFECTIVE DATE OF 1993 AMENDMENT
      Section 13201(c) of Pub. L. 103-66 provided that: ''The
    amendments made by this section (amending this section and sections
    41, 63, 68, 132, 151, 453A, 513, 531, and 541 of this title) shall
    apply to taxable years beginning after December 31, 1992.''
      Section 13202(c) of Pub. L. 103-66 provided that: ''The
    amendments made by this section (amending this section and sections
    531 and 541 of this title) shall apply to taxable years beginning
    after December 31, 1992.''
      Section 13206(d)(3) of Pub. L. 103-66 provided that: ''The
    amendments made by this subsection (amending this section and
    section 163 of this title) shall apply to taxable years beginning
    after December 31, 1992.''
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Section 11101(e) of Pub. L. 101-508 provided that: ''The
    amendments made by this section (amending this section, sections
    32, 41, 59, 63, 135, 151, 513, 691, 904, 6103, and 7518 of this
    title, and section 1177 of Title 46, Appendix, Shipping) shall
    apply to taxable years beginning after December 31, 1990.''
      Section 11103(e) of Pub. L. 101-508 provided that: ''The
    amendments made by this section (enacting section 68 of this title
    and amending this section and section 56 of this title) shall apply
    to taxable years beginning after December 31, 1990.''
      Section 11104(c) of Pub. L. 101-508 provided that: ''The
    amendments made by this section (amending this section and section
    151 of this title) shall apply to taxable years beginning after
    December 31, 1990.''
                      EFFECTIVE DATE OF 1989 AMENDMENT
      Section 7817 of Pub. L. 101-239 provided that: ''Except as
    otherwise provided in this part (part I (Sec. 7811-7817) of
    subtitle H of title VII of Pub. L. 101-239, see Tables for
    classification), any amendment made by this part shall take effect
    as if included in the provision of the 1988 Act (Pub. L. 100-647)
    to which such amendment relates.''
      Section 7831(g) of Pub. L. 101-239 provided that: ''Any amendment
    made by this section (amending this section and sections 42, 406,
    407, and 1250 of this title and provisions set out as notes under
    sections 141 and 263A of this title) shall take effect as if
    included in the provision of the Tax Reform Act of 1986 (Pub. L.
    99-514) to which such amendment relates.''
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Section 1019 of title I of Pub. L. 100-647 provided that:
      ''(a) General Rule. - Except as otherwise provided in this title,
    any amendment made by this title (see Tables for classification),
    shall take effect as if included in the provision of the Reform Act
    (Pub. L. 99-514) to which such amendment relates.
      ''(b) Waiver of Estimated Tax Penalties. - No addition to tax
    shall be made under section 6654 or 6655 of the 1986 Code for any
    period before April 16, 1989 (March 16, 1989 in the case of a
    taxpayer subject to section 6655 of the 1986 Code) with respect to
    any underpayment to the extent such underpayment was created or
    increased by any provision of this title or title II (see Tables
    for classification).''
      Section 6006(b) of Pub. L. 100-647 provided that: ''The amendment
    made by this section (amending this section) shall apply to taxable
    years beginning after December 31, 1988.''
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Section 151 of title I of Pub. L. 99-514 provided that:
      ''(a) General Rule. - Except as otherwise provided in this
    section, the amendments made by this title (enacting section 67 of
    this title, amending this section, sections 3, 5, 15, 21, 32, 62,
    63, 74, 85, 86, 102, 108, 117, 129, 151, 152, 164, 170, 172, 183,
    213, 265, 274, 280A, 402, 441, 443, 527, 541, 613A, 642, 667, 861,
    862, 901, 904, 1398, 1441, 2032A, 3121, 3231, 3306, 3401, 3402,
    3507, 4941, 4945, 6012 to 6014, 6212, 6504, 6511, and 7871 of this
    title, and section 409 of Title 42, The Public Health and Welfare,
    renumbering section 223 of this title as section 220 of this title,
    repealing sections 24, 221, 222, and 1301 to 1305 of this title,
    and enacting provisions set out as a note under section 32 of this
    title) shall apply to taxable years beginning after December 31,
    1986.
      ''(b) Unemployment Compensation. - The amendment made by section
    121 (amending section 85 of this title) shall apply to amounts
    received after December 31, 1986, in taxable years ending after
    such date.
      ''(c) Prizes and Awards. - The amendments made by section 122
    (amending sections 74, 102, 274, 3121, 3231, 3306, 3401, 4941, and
    4945 of this title and section 409 of Title 42, The Public Health
    and Welfare) shall apply to prizes and awards granted after
    December 31, 1986.
      ''(d) Scholarships. - The amendments made by section 123
    (amending sections 74, 117, 1441, and 7871 of this title) shall
    apply to taxable years beginning after December 31, 1986, but only
    in the case of scholarships and fellowships granted after August
    16, 1986.
      ''(e) Parsonage and Military Housing Allowances. - The amendment
    made by section 144 (amending section 265 of this title) shall
    apply to taxable years beginning before, on, or after, December 31,
    1986.''
      Section 302(b) of Pub. L. 99-514 provided that: ''The amendment
    made by this section (amending this section) shall apply to taxable
    years beginning after December 31, 1986.''
      Section 1411(c) of Pub. L. 99-514 provided that: ''The amendments
    made by this section (amending this section and section 6103 of
    this title) shall apply to taxable years beginning after December
    31, 1986.''
                      EFFECTIVE DATE OF 1983 AMENDMENT
      Section 109 of title I of Pub. L. 97-448 provided that: ''Except
    as otherwise provided in this title, any amendment made by this
    title (see Tables for classification) shall take effect as if it
    had been included in the provision of the Economic Recovery Tax Act
    of 1981 (Pub. L. 97-34, Aug. 13, 1981, 95 Stat. 172) to which such
    amendment relates.''
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Section 101(f)(1) of Pub. L. 97-34, as amended by Pub. L. 97-448,
    title I, Sec. 101(a)(1), Jan. 12, 1983, 96 Stat. 2365, provided
    that: ''The amendments made by subsections (a), (c), and (d)
    (amending this section and sections 3, 21, 55, 541, and 1304 of
    this title and repealing section 1348 of this title) shall apply to
    taxable years beginning after December 31, 1981; except that the
    amendment made by paragraph (3) of subsection (d) (amending section
    21 of this title) shall apply to taxable years ending after
    December 31, 1981.''
      Section 104(e) of Pub. L. 97-34 provided that: ''The amendments
    made by this section (amending this section and sections 63, 151,
    6012, and 6013 of this title) shall apply to taxable years
    beginning after December 31, 1984.''
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Section 101(f)(1) of Pub. L. 95-600 provided that: ''The
    amendments made by subsections (a), (b), (c), and (d) (amending
    sections 63, 402, 1302, and 6012 of this title) shall apply to
    taxable years beginning after December 31, 1978.''
                      EFFECTIVE DATE OF 1977 AMENDMENT
      Section 106(a) of Pub. L. 95-30 provided that: ''The amendments
    made by sections 101, 102, and 104 (amending this section and
    sections 3, 21, 42, 57, 63, 143, 161, 172, 211, 402, 441, 443, 511,
    584, 613A, 641, 642, 667, 703, 861, 862, 873, 904, 911, 931, 1034,
    1211, 1302, 6012, 6014, 6212, 6504, and 6654 of this title and
    repealing sections 36, 141, 142, 144, and 145 of this title) shall
    apply to taxable years beginning after December 31, 1976.''
                      EFFECTIVE DATE OF 1969 AMENDMENT
      Section 803(f) of Pub. L. 91-172, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''The
    amendments made by subsections (a) (amending this section), (b)
    (amending section 2 of this title), and (d) (other than paragraphs
    (1) and (8)) (amending sections 5, 511, 632, 641, 1347, and 6015 of
    this title) shall apply to taxable years beginning after December
    31, 1970, except that section 2(c) of the Internal Revenue Code of
    1986 (formerly I.R.C. 1954) (section 2(c) of this title), as
    amended by subsection (b), shall also apply to taxable years
    beginning after December 31, 1969. The amendments made by
    subsections (c) (amending section 3 of this title), (d)(1)
    (amending section 6014 of this title), and (d)(8) (amending section
    1304 of this title) shall apply to taxable years beginning after
    December 31, 1969''.
                      EFFECTIVE DATE OF 1966 AMENDMENT
      Section 103(n) of Pub. L. 89-809 provided that:
        ''(1) The amendments made by this section (other than the
      amendments made by subsections (h), (i), and (k)) (enacting
      section 877 of this title, amending this section and sections
      116, 154, 871, 872, 873, 874, 875, 932, 6015, and 7701 of this
      title, renumbering section 877 as 878, and repealing section 1493
      of this title) shall apply with respect to taxable years
      beginning after December 31, 1966.
        ''(2) The amendments made by subsection (h) (amending section
      1441 of this title) shall apply with respect to payments made in
      taxable years of recipients beginning after December 31, 1966.
        ''(3) The amendments made by subsection (i) (amending section
      1461 of this title) shall apply with respect to payments
      occurring after December 31, 1966.
        ''(4) The amendments made by subsection (k) (amending section
      3401 of this title) shall apply with respect to remuneration paid
      after December 31, 1966.''
                      EFFECTIVE DATE OF 1964 AMENDMENT
      Section 131 of Pub. L. 88-272, as amended by Pub. L. 99-514, Sec.
    2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''Except for
    purposes of section 21 of the Internal Revenue Code of 1986
    (formerly I.R.C. 1954) (relating to effect of changes in rates
    during a taxable year), the amendments made by parts I and II of
    this title (amending this section and sections 2, 11, 37, 141, 144,
    242, 821, 871, 963, 6016, 6074, 6154, 6212, 6504, and 6655 of this
    title) shall apply with respect to taxable years beginning after
    December 31, 1963.''
                       SHORT TITLE OF 2002 AMENDMENT
      Pub. L. 107-134, Sec. 1(a), Jan. 23, 2002, 115 Stat. 2427,
    provided that: This Act (enacting sections 139 and 5891 of this
    title and section 1148 of Title 29, Labor, amending sections 5,
    101, 104, 140, 642, 692, 2011, 2053, 2201, 6013, 6081, 6103, 6105,
    6161, 6404, 7213, 7508, and 7508A of this title and section 1302 of
    Title 29, enacting provisions set out as notes under sections 101,
    108, 139, 501, 642, 692, 2011, 5891, 6081, and 6103 of this title,
    section 401 of Title 42, The Public Health and Welfare, and section
    40101 of Title 49, Transportation, and amending provisions set out
    as a note under section 40101 of Title 49) may be cited as the
    'Victims of Terrorism Tax Relief Act of 2001'.''
                       SHORT TITLE OF 2001 AMENDMENTS
      Pub. L. 107-16, Sec. 1(a), June 7, 2001, 115 Stat. 38, provided
    that: ''This Act (see Tables for classification) may be cited as
    the 'Economic Growth and Tax Relief Reconciliation Act of 2001'.''
      Pub. L. 107-15, Sec. 1, June 5, 2001, 115 Stat. 37, provided
    that: ''This Act (amending provisions set out as a note under
    section 101 of this title) may be cited as the 'Fallen Hero
    Survivor Benefit Fairness Act of 2001'.''
                       SHORT TITLE OF 2000 AMENDMENTS
      Pub. L. 106-573, Sec. 1, Dec. 28, 2000, 114 Stat. 3061, provided
    that: ''This Act (amending section 453 of this title and enacting
    provisions set out as a note under section 453 of this title) may
    be cited as the 'Installment Tax Correction Act of 2000'.''
      Pub. L. 106-554, Sec. 1(a)(7) (Sec. 1(a)), Dec. 21, 2000, 114
    Stat. 2763, 2763A-587, provided that: ''This Act (H.R. 5662, as
    enacted by section 1(a)(7) of Pub. L. 106-554, see Tables for
    classification) may be cited as the 'Community Renewal Tax Relief
    Act of 2000'.''
      Pub. L. 106-519, Sec. 1(a), Nov. 15, 2000, 114 Stat. 2423,
    provided that: ''This Act (enacting sections 114 and 941 to 943 of
    this title, amending sections 56, 275, 864, 903 and 999 of this
    title, and repealing sections 921 to 927 of this title) may be
    cited as the 'FSC Repeal and Extraterritorial Income Exclusion Act
    of 2000'.''
      Pub. L. 106-476, title IV, Sec. 4001, Nov. 9, 2000, 114 Stat.
    2176, provided that: ''This title (enacting sections 1681 to 1681b
    of Title 19, Customs Duties, amending sections 5704, 5754, and 5761
    of this title, and enacting provisions set out as notes under
    sections 5704 and 5761 of this title and section 1681 of Title 19)
    may be cited as the 'Imported Cigarette Compliance Act of 2000'.''
                       SHORT TITLE OF 1999 AMENDMENT
      Pub. L. 106-170, title V, Sec. 500, Dec. 17, 1999, 113 Stat.
    1918, provided that: ''This title (see Tables for classification)
    may be cited as the 'Tax Relief Extension Act of 1999'.''
                       SHORT TITLE OF 1998 AMENDMENTS
      Pub. L. 105-277, div.  J, Sec. 1000(a), Oct. 21, 1998, 112 Stat.
    2681-886, provided that: ''This division (Sec. 1000-5301, see
    Tables for classification) may be cited as the 'Tax and Trade
    Relief Extension Act of 1998'.''
      Pub. L. 105-277, div.  C, title XV, Sec. 1501, Oct. 21, 1998, 112
    Stat. 2681-741, provided that: ''This title (amending sections 4132
    and 9510 of this title and section 300aa-11 of Title 42, The Public
    Health and Welfare, and enacting provisions set out as notes under
    sections 4132 and 9510 of this title) may be cited as the 'Vaccine
    Injury Compensation Program Modification Act'.''
      Pub. L. 105-206, Sec. 1(a), July 22, 1998, 112 Stat. 685,
    provided that: ''This Act (see Tables for classification) may be
    cited as the 'Internal Revenue Service Restructuring and Reform Act
    of 1998'.''
      Pub. L. 105-206, title III, Sec. 3000, July 22, 1998, 112 Stat.
    726, provided that: ''This title (see Tables for classification)
    may be cited as the 'Taxpayer Bill of Rights 3'.''
      Pub. L. 105-206, title VI, Sec. 6001(a), July 22, 1998, 112 Stat.
    790, provided that: ''This title (see Tables for classification)
    may be cited as the 'Tax Technical Corrections Act of 1998'.''
      Pub. L. 105-178, title IX, Sec. 9001(a), June 9, 1998, 112 Stat.
    499, provided that: ''This title (amending sections 40, 132, 4041,
    4051, 4071, 4081, 4091, 4221, 4481 to 4483, 6156, 6412, 6421, 6427,
    9503, and 9504 of this title and section 460l-11 of Title 16,
    Conservation, repealing section 9511 of this title, enacting
    provisions set out as notes under sections 40, 132, 172, 4041,
    6421, and 9503 of this title, and amending provisions set out as a
    note under section 172 of this title) may be cited as the 'Surface
    Transportation Revenue Act of 1998'.''
                       SHORT TITLE OF 1997 AMENDMENTS
      Pub. L. 105-35, Sec. 1, Aug. 5, 1997, 111 Stat. 1104, provided
    that: ''This Act (enacting section 7213A of this title, amending
    sections 7213 and 7431 of this title, and enacting provisions set
    out as notes under sections 7213 and 7431 of this title) may be
    cited as the 'Taxpayer Browsing Protection Act'.''
      Section 1(a) of Pub. L. 105-34 provided that: ''This Act (see
    Tables for classification) may be cited as the 'Taxpayer Relief Act
    of 1997'.''
      Pub. L. 105-2, Sec. 1(a), Feb. 28, 1997, 111 Stat. 4, provided
    that: ''This Act (amending sections 4041, 4081, 4091, 4261, 4271,
    and 9502 of this title and enacting provisions set out as notes
    under sections 4041, 4081, and 4261 of this title) may be cited as
    the 'Airport and Airway Trust Fund Tax Reinstatement Act of
    1997'.''
                       SHORT TITLE OF 1996 AMENDMENTS
      Section 1(a) of Pub. L. 104-188 provided that: ''This Act (see
    Tables for classification) may be cited as the 'Small Business Job
    Protection Act of 1996'.''
      Pub. L. 104-168, Sec. 1(a), July 30, 1996, 110 Stat. 1452,
    provided that: ''This Act (enacting sections 4958, 7434, 7435, and
    7524 of this title, amending sections 501, 4955, 4963, 6013, 6033,
    6041 to 6042, 6044, 6045, 6049, 6050B, 6050H to 6050K, 6050N, 6103,
    6104, 6159, 6201, 6213, 6323, 6334, 6343, 6404, 6503, 6601, 6651,
    6652, 6656, 6672, 6685, 7122, 7213, 7422, 7430, 7433, 7454, 7502,
    7608, 7609, 7623, 7802, 7805, and 7811 of this title, renumbering
    sections 7434 and 7435 as sections 7435 and 7436 of this title,
    enacting provisions set out as notes under sections 501, 4955,
    6013, 6033, 6041, 6103, 6104, 6159, 6201, 6311, 6323, 6334, 6404,
    6503, 6601, 6651, 6652, 6656, 6672, 7122, 7430, 7433 to 7435, 7524,
    7608, 7609, 7623, 7802, 7803, 7805, and 7811 of this title, and
    amending provisions set out as a note under section 7608 of this
    title) may be cited as the 'Taxpayer Bill of Rights 2'.''
                       SHORT TITLE OF 1994 AMENDMENTS
      Pub. L. 103-465, title VII, Sec. 750, Dec. 8, 1994, 108 Stat.
    5012, provided that: ''This subtitle (subtitle F (Sec. 750-781) of
    title VII of Pub. L. 103-465, enacting sections 1310, 1311, and
    1350 of Title 29, Labor, amending sections 401, 404, 411, 412, 415,
    417, 4971, and 4972 of this title and sections 1053 to 1056, 1082,
    1132, 1301, 1303, 1305, 1306, 1322, 1341, 1342, and 1343 of Title
    29, and enacting provisions set out as notes under sections 401,
    411, 412, and 4972 of this title and sections 1056, 1082, 1303,
    1306, 1310, 1311, 1322, 1341, and 1342 of Title 29) may be cited as
    the 'Retirement Protection Act of 1994'.''
      Pub. L. 103-387, Sec. 1, Oct. 22, 1994, 108 Stat. 4071, provided
    that: ''This Act (enacting section 3510 of this title, amending
    sections 3102 and 3121 of this title, section 3701 of Title 31,
    Money and Finance, and sections 401, 402, 404, 409, 410, and 1383
    of Title 42, The Public Health and Welfare, and enacting provisions
    set out as notes under sections 3102 and 3510 of this title,
    section 3701 of Title 31, and sections 401, 402, and 1383 of Title
    42) may be cited as the 'Social Security Domestic Employment Reform
    Act of 1994'.''
                       SHORT TITLE OF 1993 AMENDMENTS
      Pub. L. 103-152, Sec. 1, Nov. 24, 1993, 107 Stat. 1516, provided
    that: ''This Act (amending sections 503, 504, 1105, 1108, and 1382j
    of Title 42, The Public Health and Welfare, enacting provisions set
    out as notes under section 3304 of this title and sections 503 and
    1382j of Title 42, amending provisions set out as notes under
    section 3304 of this title and section 352 of Title 45, Railroads,
    and repealing provisions set out as a note under section 3304 of
    this title) may be cited as the 'Unemployment Compensation
    Amendments of 1993'.''
      Section 13001(a) of title XIII of Pub. L. 103-66 provided that:
    ''This chapter (chapter 1 (Sec. 13001-13444) of title XIII of Pub.
    L. 103-66, see Tables for classification) may be cited as the
    'Revenue Reconciliation Act of 1993'.''
      Pub. L. 103-6, Sec. 1, Mar. 4, 1993, 107 Stat. 33, provided that:
    ''This Act (enacting provisions set out as notes under section 3304
    of this title, section 31 of Title 2, The Congress, and section 352
    of Title 45, Railroads, and amending provisions set out as notes
    under section 3304 of this title and section 352 of Title 45) may
    be cited as the 'Emergency Unemployment Compensation Amendments of
    1993'.''
                       SHORT TITLE OF 1992 AMENDMENTS
      Pub. L. 102-486, title XIX, Sec. 19141, Oct. 24, 1992, 106 Stat.
    3036, provide