26 USC 1371 - Coordination with subchapter C

U.S Code last checked for updates: Jan 30, 2026

§ 1371.

Coordination with subchapter C

(a)

Application of subchapter C rules

(b)

No carryover between C year and S year

(1)

From C year to S year

(2)

No carryover from S year

(3)

Treatment of S year as elapsed year

(c)

Earnings and profits

(1)

In general

(2)

Adjustments for redemptions, liquidations, reorganizations, divisives, etc.

(3)

Adjustments in case of distributions treated as dividends under section 1368(c)(2)

(d)

Coordination with investment credit recapture

(1)

No recapture by reason of election

(2)

Corporation continues to be liable

(3)

Adjustment to earnings and profits for amount of recapture

(e)

Cash distributions during post-termination transition period

(1)

In general

(2)

Election to distribute earnings first

(f)

Cash distributions following post-termination transition period

(Added Pub. L. 97–354, § 2, Oct. 19, 1982, 96 Stat. 1681; amended Pub. L. 98–369, div. A, title VII, § 721(e), (o), (x)(3), July 18, 1984, 98 Stat. 967, 970, 971;

cite as: 26 USC 1371