Sec. 1.1377-3 Applicability dates.
(a) In general. Except as otherwise provided in this section, §§1.1377-1 and 1.1377-2 apply to taxable years of an S corporation beginning after December 31, 1996.
(b) Certain conversions. Section 1.1377-1(a)(2)(iii) and (c)(3) Example 3 are applicable for taxable years beginning on and after May 14, 2002.
(c) Special treatment of distributions of money during post-termination transition period.
(1) In general. Except as provided in paragraph (c)(2) of this section, §1.1377-2(b) applies to taxable years beginning after October 20, 2020. For taxable years beginning on or before October 20, 2020, see §1.1377-2(b) as contained in 26 CFR part 1, revised April 1, 2020.
(2) Taxable years beginning on or before October 20, 2020. A corporation may choose to apply §1.1377-2(b) to taxable years beginning on or before October 20, 2020 and with respect to which the period described in section 6501(a) has not expired. If a corporation makes the choice described in the previous sentence, all shareholders of the corporation must report consistently, and the corporation must adopt §§1.481-5, 1.1371-1, 1.1371-2, if an ETSC, and 1.1377-2(b) in their entity and continue to apply those rules in their entirety for the corporation’s subsequent taxable years.
[T.D. 8696, 61 FR 67454-67458, Dec. 23, 1996. Revised by T.D. 8994, 67 FR 34388-34401, May 14, 2002; T.D. 9914, 85 66471-66484, Oct. 20, 2020.]
