Internal Revenue Code:Sec. 15. Effect of changes
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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 III - CHANGES IN RATES DURING A TAXABLE YEAR
Statute
Sec. 15. Effect of changes
(a) General rule
If any rate of tax imposed by this chapter changes, and if the
taxable year includes the effective date of the change (unless that
date is the first day of the taxable year), then -
(1) tentative taxes shall be computed by applying the rate for
the period before the effective date of the change, and the rate
for the period on and after such date, to the taxable income for
the entire taxable year; and
(2) the tax for such taxable year shall be the sum of that
proportion of each tentative tax which the number of days in each
period bears to the number of days in the entire taxable year.
(b) Repeal of tax
For purposes of subsection (a) -
(1) if a tax is repealed, the repeal shall be considered a
change of rate; and
(2) the rate for the period after the repeal shall be zero.
(c) Effective date of change
For purposes of subsections (a) and (b) -
(1) if the rate changes for taxable years ''beginning after''
or ''ending after'' a certain date, the following day shall be
considered the effective date of the change; and
(2) if a rate changes for taxable years ''beginning on or
after'' a certain date, that date shall be considered the
effective date of the change.
(d) Section not to apply to inflation adjustments
This section shall not apply to any change in rates under
subsection (f) of section 1 (relating to adjustments in tax tables
so that inflation will not result in tax increases).
(e) References to highest rate
If the change referred to in subsection (a) involves a change in
the highest rate of tax imposed by section 1 or 11(b), any
reference in this chapter to such highest rate (other than in a
provision imposing a tax by reference to such rate) shall be
treated as a reference to the weighted average of the highest rates
before and after the change determined on the basis of the
respective portions of the taxable year before the date of the
change and on or after the date of the change.
(f) Rate reductions enacted by Economic Growth and Tax Relief
Reconciliation Act of 2001
This section shall not apply to any change in rates under
subsection (i) of section 1 (relating to rate reductions after
2000).
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 12, Sec. 21; Pub. L. 88-272,
title I, Sec. 132, Feb. 26, 1964, 78 Stat. 30; Pub. L. 91-172,
title VIII, Sec. 803(e), Dec. 30, 1969, 83 Stat. 685; Pub. L.
92-178, title II, Sec. 205, Dec. 10, 1971, 85 Stat. 511; Pub. L.
94-12, title III, Sec. 305(b)(2), Mar. 29, 1975, 89 Stat. 45; Pub.
L. 94-164, Sec. 4(d)(2), Dec. 23, 1975, 89 Stat. 975; Pub. L.
94-455, title IX, Sec. 901(c)(2), Oct. 4, 1976, 90 Stat. 1607; Pub.
L. 95-30, title I, Sec. 101(d)(2), May 23, 1977, 91 Stat. 133; Pub.
L. 95-600, title I, Sec. 106, Nov. 6, 1978, 92 Stat. 2776; Pub. L.
97-34, title I, Sec. 101(d)(3), Aug. 13, 1981, 95 Stat. 184;
renumbered Sec. 15, Pub. L. 98-369, div. A, title IV, Sec.
474(b)(1), July 18, 1984, 98 Stat. 830; Pub. L. 99-514, title I,
Sec. 101(b), Oct. 22, 1986, 100 Stat. 2099; Pub. L. 100-647, title
I, Sec. 1006(a), Nov. 10, 1988, 102 Stat. 3393; Pub. L. 107-16,
title I, Sec. 101(c)(3), June 7, 2001, 115 Stat. 43.)
Amendment of Section
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
Miscellaneous
AMENDMENTS
2001 - Subsec. (f). Pub. L. 107-16, Sec. 101(c)(3), 901,
temporarily added subsec. (f). See Effective and Termination Dates
of 2001 Amendment note below.
1988 - Subsec. (e). Pub. L. 100-647 added subsec. (e).
1986 - Subsec. (d). Pub. L. 99-514 amended subsec. (d) generally,
substituting ''apply to inflation adjustments'' for ''apply to
section 1 rate changes made by Economic Recovery Tax Act of 1981''
in heading and struck out ''section 1 attributable to the
amendments made by section 101 of the Economic Tax Act of 1981 or''
before ''subsection (f)'' in text.
1984 - Pub. L. 98-369 renumbered section 21 of this title as this
section.
1981 - Subsec. (d). Pub. L. 97-34 substituted provisions that
this section shall not apply to any change in rates under section 1
attributable to the amendments made by section 101 of the Economic
Recovery Tax Act of 1981 or subsec. (f) of section 1 for provisions
that had related to the changes made by section 303(b) of the Tax
Reduction Act of 1975 in the surtax exemption.
Subsecs. (e), (f). Pub. L. 97-34 struck out subsecs. (e) and (f)
which had related, respectively, to changes made by the Tax
Reduction and Simplification Act of 1977 and to changes made by
Revenue Act of 1978.
1978 - Subsec. (f). Pub. L. 95-600 added subsec. (f).
1977 - Subsec. (d). Pub. L. 95-30, Sec. 101(d)(2)(A), (B),
redesignated subsec. (f) as (d). Former subsec. (d), which directed
that, in applying subsec. (a) to a taxable year of an individual
which was not a calendar year, each change made by the Tax Reform
Act of 1969 in part I or in the application of part IV or V of
subchapter B for purposes of the determination of taxable income
should be treated as a change in a rate of tax, was struck out.
Subsec. (e). Pub. L. 95-30, Sec. 101(d)(2)(A), (C), added subsec.
(e). Former subsec. (e), which directed that, in applying subsec.
(a) to a taxable year of an individual which was not a calendar
year, each change made by the Revenue Act of 1971 in section 141
(relating to the standard deduction) and section 151 (relating to
personal exemptions) should be treated as a change in a rate of
tax, was struck out.
Subsec. (f). Pub. L. 95-30, Sec. 101(d)(2)(B), redesignated
subsec. (f) as (d).
1976 - Subsec. (f). Pub. L. 94-455 substituted ''in the surtax
exemption and any change under section 11(d) in the surtax
exemption'' for ''and the change made by section 3(c) of the
Revenue Adjustment Act of 1975 in section 11(d) (relating to
corporate surtax exemption)''.
1975 - Subsec. (f). Pub. L. 94-164 inserted reference to change
made by section 3(c) of the Revenue Adjustment Act of 1975.
Pub. L. 94-12 added subsec. (f).
1971 - Subsec. (e). Pub. L. 92-178 added subsec. (e).
1969 - Subsec. (d). Pub. L. 91-172 substituted provisions
covering changes made by the Tax Reform Act of 1969 in case of
individuals for provisions covering changes made by Revenue Act of
1964.
1964 - Subsec. (d). Pub. L. 88-272 amended subsection generally
by substituting provisions relating to changes made by the Revenue
Act of 1964, for provisions relating to taxable years beginning
before Jan. 1, 1954, and ending after Dec. 31, 1953.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to taxable years beginning
after Dec. 31, 2000, see section 101(d)(1) of Pub. L. 107-16, set
out as a note under section 1 of this title.
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to taxable years beginning
after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to taxable years beginning
after Dec. 31, 1981, see section 101(f)(1) of Pub. L. 97-34, set
out as a note under section 1 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 applicable with respect to taxable
years ending after Dec. 31, 1975, see section 901(d) of Pub. L.
94-455, set out as a note under section 11 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94-164 applicable to taxable years beginning
after Dec. 31, 1975, see section 4(e) of Pub. L. 94-164, set out as
an Effective and Termination Dates of 1975 Amendments note under
section 11 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 132 of Pub. L. 88-272 provided that the amendment made by
that section is effective with respect to taxable years ending
after Dec. 31, 1963.
COORDINATION OF 1997 AMENDMENT WITH SECTION 15
Pub. L. 105-34, title I, Sec. 1(c), Aug. 5, 1997, 111 Stat. 788,
provided that: ''No amendment made by this Act (see Tables for
classification) shall be treated as a change in a rate of tax for
purposes of section 15 of the Internal Revenue Code of 1986.''
COORDINATION OF 1993 AMENDMENT WITH SECTION 15
Pub. L. 103-66, title XIII, Sec. 13001(c), Aug. 10, 1993, 107
Stat. 416, provided that: ''Except in the case of the amendments
made by section 13221 (amending sections 11, 852, 1201, and 1445 of
this title) (relating to corporate rate increase), no amendment
made by this chapter (chapter 1 (Sec. 13001-13444) of title XIII of
Pub. L. 103-66, see Tables for classification) shall be treated as
a change in a rate of tax for purposes of section 15 of the
Internal Revenue Code of 1986.''
COORDINATION OF 1990 AMENDMENT WITH SECTION 15
Pub. L. 101-508, title XI, Sec. 11001(c), Nov. 5, 1990, 104 Stat.
1388-400, provided that: ''Except as otherwise expressly provided
in this title, no amendment made by this title (see Tables for
classification) shall be treated as a change in a rate of tax for
purposes of section 15 of the Internal Revenue Code of 1986.''
COORDINATION OF 1987 AMENDMENT WITH SECTION 15
Pub. L. 100-203, title X, Sec. 10000(c), Dec. 22, 1987, 101 Stat.
1330-382, provided that: ''No amendment made by this title (see
Tables for classification) shall be treated as a change in a rate
of tax for purposes (of) section 15 of the Internal Revenue Code of
1986.''
COORDINATION OF 1986 AMENDMENT WITH SECTION 15
Section 3(b) of Pub. L. 99-514 provided that:
''(1) In general. - Except as provided in paragraph (2), for
purposes of section 15 of the Internal Revenue Code of 1986, no
amendment or repeal made by this Act (see Tables for
classification) shall be treated as a change in the rate of a tax
imposed by chapter 1 of such Code.
''(2) Exception. - Paragraph (1) shall not apply to the amendment
made by section 601 (amending section 11 of this title) (relating
to corporate rate reductions).''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 59A, 441, 6013 of this
title.
