26 U.S.C. § 482 — Allocation of income and deductions

Page 1657 TITLE 26—INTERNAL REVENUE CODE § 483 made within six months after Sept. 2, 1958. Claims for refunds of overpayments of tax resulting from the elec- tion were to be filed within one year after the date of the election. Such an election was to be considered a consent to an assessment of a deficiency resulting from the election, where the assessment is made within one year after the date of the election. § 482. Allocation of income and deductions among taxpayers In any case of two or more organizations, trades, or businesses (whether or not incor- porated, whether or not organized in the United States, and whether or not affiliated) owned or controlled directly or indirectly by the same in- terests, the Secretary may distribute, appor- tion, or allocate gross income, deductions, cred- its, or allowances between or among such orga- nizations, trades, or businesses, if he determines that such distribution, apportionment, or allo- cation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades, or businesses. In the case of any transfer (or license) of intangible property (within the meaning of section 367(d)(4)), the income with respect to such trans- fer or license shall be commensurate with the income attributable to the intangible. For pur- poses of this section, the Secretary shall require the valuation of transfers of intangible property (including intangible property transferred with other property or services) on an aggregate basis or the valuation of such a transfer on the basis of the realistic alternatives to such a transfer, if the Secretary determines that such basis is the most reliable means of valuation of such trans- fers. (Aug. 16, 1954, ch. 736, 68A Stat. 162; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 99–514, title XII, § 1231(e)(1), Oct. 22, 1986, 100 Stat. 2562; Pub. L. 115–97, title I, § 14221(b)(2), Dec. 22, 2017, 131 Stat. 2219; Pub. L. 115–141, div. U, title IV, § 401(d)(1)(D)(viii)(III), Mar. 23, 2018, 132 Stat. 1207.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–141 substituted ‘‘section 367(d)(4)’’ for ‘‘section 936(h)(3)(B)’’. 2017—Pub. L. 115–97 inserted at end ‘‘For purposes of this section, the Secretary shall require the valuation of transfers of intangible property (including intangible property transferred with other property or services) on an aggregate basis or the valuation of such a trans- fer on the basis of the realistic alternatives to such a transfer, if the Secretary determines that such basis is the most reliable means of valuation of such trans- fers.’’ 1986—Pub. L. 99–514 inserted at end ‘‘In the case of any transfer (or license) of intangible property (within the meaning of section 936(h)(3)(B)), the income with respect to such transfer or license shall be commensu- rate with the income attributable to the intangible.’’ 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Amendment by Pub. L. 115–97 applicable to transfers in taxable years beginning after Dec. 31, 2017, see sec- tion 14221(c)(1) of Pub. L. 115–97, set out as a note under section 367 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, but only with re- spect to transfers after Nov. 16, 1985, or licenses granted after such date, or before such date with respect to property not in existence or owned by the taxpayer on such date, except that for purposes of [former] section 936(h)(5)(C) of this title, such amendment applicable to taxable years beginning after Dec. 31, 1986, without re- gard to when the transfer or license was made, see sec- tion 1231(g)(2) of Pub. L. 99–514, set out as a note under section 367 of this title. REGULATIONS For requirement that, not later than 180 days after July 18, 1984, the Secretary of the Treasury modify the safe harbor interest rates applicable under the regula- tions prescribed under this section so that such rates are consistent with the rates applicable under section 483 of this title by reason of the amendments made by Pub. L. 98–369, see section 44(b)(2) of Pub. L. 98–369, set out as an Effective Date note under section 1271 of this title. SAVINGS PROVISION For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining li- ability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title. STUDY OF APPLICATION AND ADMINISTRATION OF THIS SECTION Pub. L. 101–508, title XI, § 11316, Nov. 5, 1990, 104 Stat. 1388–458, directed Secretary of the Treasury or his dele- gate to conduct a study of the application and adminis- tration of section 482 of the Internal Revenue Code of 1986 and not later than Mar. 1, 1992, submit to Com- mittee on Ways and Means of House of Representatives and Committee on Finance of Senate a report on the study, together with such recommendations as he deemed advisable. § 483. Interest on certain deferred payments (a) Amount constituting interest For purposes of this title, in the case of any payment— (1) under any contract for the sale or ex- change of any property, and (2) to which this section applies, there shall be treated as interest that portion of the total unstated interest under such contract which, as determined in a manner consistent with the method of computing interest under section 1272(a), is properly allocable to such pay- ment. (b) Total unstated interest For purposes of this section, the term ‘‘total unstated interest’’ means, with respect to a con- tract for the sale or exchange of property, an amount equal to the excess of— (1) the sum of the payments to which this section applies which are due under the con- tract, over (2) the sum of the present values of such pay- ments and the present values of any interest payments due under the contract. For purposes of the preceding sentence, the present value of a payment shall be determined under the rules of section 1274(b)(2) using a dis-