Category Archives: Uncategorized

Deductions

Deductions

Code Sections about Deductions

  • Sec. 67. 2-percent floor on miscellaneous itemized deductions
  • Sec. 68. Overall limitation on itemized deductions
  • Sec. 151. Allowance of deductions for personal exemptions
  • Sec. 161. Allowance of deductions
  • Sec. 211. Allowance of deductions
  • Sec. 241. Allowance of special deductions
  • Sec. 246. Rules applying to deductions for dividends received
  • Sec. 261. General rule for disallowance of deductions
  • Sec. 277. Deductions incurred by certain membership organizations in transactions with members
  • Sec. 464. Limitations on deductions for certain farming
  • Sec. 465. Deductions limited to amount at risk
  • Sec. 470. Limitation on deductions allocable to property used by governments or other tax-exempt entities
  • Sec. 482. Allocation of income and deductions among taxpayers
  • Sec. 642. Special rules for credits and deductions
  • Sec. 671. Trust income, deductions, and credits attributable to grantors and others as substantial owners
  • Sec. 804. Life insurance deductions
  • Sec. 805. General deductions
  • Sec. 809. Reduction in certain deductions of mutual life insurance companies – REPEALED
  • Sec. 873. Deductions
  • Sec. 874. Allowance of deductions and credits
  • Sec. 1358. Allocation of credits, income, and deductions
  • Sec. 2524. Extent of deductions
  • Sec. 3123. Deductions as constructive payments
  • Sec. 3307. Deductions as constructive payments
  • Sec. 6034. Returns by trusts described in section 4947(a)(2) or claiming charitable deductions under section 642(c)
  • Some Content about Deductions

  • Alimony Paid
  • Autos, Computers, Electronic Devices (Listed Property) (IRS FAQ)
  • Bad Debt Deduction
  • Business Entertainment Expenses
  • Business Travel Expenses
  • Business Use of Car
  • Business Use of Home
  • Business Use of Home – Is It Deductible?
  • Car Donations
  • Casualty and Theft Losses
  • Casualty, Disaster, and Theft Losses
  • Clean-Fuel Deduction
  • Contributions
  • Contributions (IRS FAQ)
  • Contributions of Motor Vehicles, Boats, and Airplanes
  • Deductible Taxes
  • Deducting a Sec. 754 Depreciation Adjustment
  • Domestic Production Activities Deduction
  • Education & Work-Related Expenses (IRS FAQ)
  • Educational Expenses
  • Educator Expense Deduction
  • Employee Business Expenses
  • Equitable or Beneficial Ownership
  • Gifts & Charitable Contributions (IRS FAQ)
  • Home Mortgage Points
  • Home Office Expenses of a One-Man Corporation
  • Individual Retirement Arrangements (IRAs)
  • Interest Expense
  • Interest, Investment, Money Transactions (Alimony, Bad Debts, Applicable Federal Interest Rate, Gambling, Legal Fees, Loans, etc.) (IRS FAQ)
  • Meals
  • Medical and Dental Expenses
  • Medical, Nursing Home, Special Care Expenses (IRS FAQ)
  • Miscellaneous Expenses
  • Mortgage Interest Deduction on Sale of Second Home Held for Investment Purposes
  • Moving Expenses
  • Other Deduction Questions (IRS FAQ)
  • Partner Section 179 Expense Deduction
  • Points Paid by Seller
  • Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses) (IRS FAQ)
  • Sales Tax Deduction – Optional Table Method
  • Should I Itemize?
  • State Deductions (CA – NOL Deductions Suspended then Reinstated and PA – Section 179 Deduction)
  • Student Loan Interest Deduction
  • Tax Shelters
  • Tuition and Fees Deduction
  • Description and Definition of Deductions

    Items that directly reduce taxable income. Deductions such as alimony, capital losses, moving expenses, business losses, and deductible IRA and Keogh contributions can offset gross income even if you don't have enough deductions to itemize. Personal expenses such as medical costs, mortgage interest, state and local taxes, employee business expenses, and charitable contributions are deductible only if you itemize your deductions. All taxpayers may claim a standard deduction. If your qualifying expenses exceed your standard deduction, you may claim the higher amount by itemizing your deductions. Although no records are needed to back up your right to the standard deduction, you must maintain records of qualifying expenditures if you itemize.

    Section 179 Deductions Issue

    You may find information about Section 179 Deductions in this Tax Platform of the American Encyclopedia of Law.

    Resources

    See Also

    Further Reading

    Gambling

    Gambling

    Gambling Income and Expenses

    Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings on line 21. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income.

    A payer is required to issue you a Form W-2G (PDF) if you receive $600 or more in gambling winnings or if you have any gambling winnings subject to Federal income tax withholding. The $600 amount is increased to $ 1,200 for winnings from bingo or slot machines and to $ 1,500 for winning from Keno. If you have won more than $5,000, the payer generally is required to withhold 25% of the proceeds for Federal Income Tax. If you did not provide your social security number the payer may have to withhold 28%. For more information on withholding, refer to Publication 505, Tax Withholding and Estimated Tax.

    Per IRC Sec. 165(d) you may deduct gambling losses only if you itemize deductions and only to the extent of the gains from such transactions. (This was formerly Sec. 23(h) of IRC of 1934. You may need to know this for legal research. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A (PDF), line 27. This bifurcation results in the “Gambler’s AGI Penalty.”

    There is much confusion regarding how to report gambling transactions; i.e. should transactions be reported based on each pull of the slot machine, roll of the dice, and draw of the card. Conversely, should gamblers simply report the “net amount for the year?” The courts and IRS have said no. Instead the courts and IRS have developed the concept of the “Gambling Session.” Gamblers should report the total of all “winning” gambling sessions on Form 1040, Page 1, Line 21. Gamblers should report all “losing” gambling sessions on Schedule A, Other Miscellaneous Deductions as “Gambling Losses to the Extent of Gambling Winnings.” Many glossary terms used in reporting gambling winnings and losses have very specific meanings as they pertain to reporting. Preparers should be familiar with these glossary terms.

    It is important to keep an accurate diary or similar record of your gambling winnings and losses. There are many unfortunate myths surrounding the documentation required to deduct gambling losses. According to Rev. Proc. 77-29 gamblers must keep a diary that shows 1) the date & type of wager, 2) the name of the gambling establishment, 3) the address of the gambling estabishment, 4) the name of any other persons present at the time, and 5) the amount won or lost. Related court cases shed additional light on how the courts and IRS have interpreted Sec. 165(d)

    Refer to Publication 529, Miscellaneous Deductions, for more information.

    Description and Definition of Gambling Income and Losses

    Income and losses from gambling, such as lotteries, bingo, and racing. Even if your wager was illegal the winnings are taxable. Gambling losses are only deductible to the extent that you report gambling income for the tax year.

    Resources

    See Also

    Further Reading

    Taxation

    Taxation

    Resources

    Further Reading

    • Tax Aspects of Divorce and Separation (LJP)
    • Tax Controversies: Audits, Investigations, Trials
    • Tax Planning For Corporations and Shareholders
    • Tax Planning for Corporations and Shareholders-Forms
    • Tax Planning for Retirees
    • Tax Planning for S Corporations
    • Tax Planning for the Alternative Minimum Tax
    • Tax, Estate & Financial Planning for the Elderly
    • Taxation of Executive Compensation: Planning and Practice
    • Taxation of Financial Institutions
    • Taxation of Hospitals and Health Care Organizations
    • Taxation of Intellectual Property and Technology
    • Taxation of Mining Operations
    • Taxation of Securities Transactions

    What’s New

    What’s New

    • 2016 Tax Law Changes – a summary of changes for 2016
    • 2015 Tax Law Changes – a summary of changes for 2015
    • 2014 Tax Law Changes – a summary of changes for 2014
    • 2013 Tax Law Changes – a summary of changes for 2013
    • 2012 Tax Law Changes – a summary of changes for 2012
    • 2011 Tax Law Changes – a summary of changes for 2011
    • 2010 Tax Law Changes – a summary of changes for 2010
    • 2009 Tax Law Changes – a summary of changes for 2009
    • 2008 Tax Law Changes – a summary of changes for 2008 (IRS)
    • 2007 Tax Law Changes – a summary of changes for 2007
    • 2006 Tax Law Changes – a summary of changes for 2006
    • 2005 Tax Law Changes – a summary of changes for 2005

    Miscellaneous

    Miscellaneous

    Below are articles related to miscellaneous subjects.

    Alternative Filing Methods

    Age-Name-SSN Rejects, Errors, Correction Procedures (IRS FAQ)
    Amended Returns (IRS FAQ)
    Due Dates & Extension Dates for e-file (IRS FAQ)
    Electronic Filing
    Electronic Signatures
    Filing Business Returns Electronically
    Forms W-2 & Other Attachments (IRS FAQ)
    How to Choose a Paid Tax Preparer
    Substitute Tax Forms
    TeleFile
    TeleFile (IRS FAQ)

    Basis of Assets, Depreciation, and Sale of Assets

    Basis of Assets
    Depreciation
    Installment Sales
    Sale of Your Home

    Employer Tax Information

    Employer Identification Number (EIN) – How to Apply
    Employment Taxes for Household Employees
    Form 940 and 940-EZ – Deposit Requirements
    Form 940 and 940-EZ – Employer’s Annual Federal Unemployment Tax Returns
    Form 941 – Deposit Requirements
    Form 941 – Employer’s Quarterly Federal Tax Return
    Form W-2 – Where, When, and How to File
    Form W-4 – Employee’s Withholding Allowance Certificate
    Form W-5 – Advance Earned Income Credit
    Independent Contractor vs. Employee
    Social Security and Medicare Withholding Rates
    Tips – Withholding and Reporting

    Foreign Taxes

    Income Tax Treaties
    Australian tax
    Canadian Tax

    Magnetic Media Filers

    Applications, Forms, and Information
    Electronic Filing of Information Returns
    Magnetic Media Filers (2004 IRS FAQ)
    Test Files and Combined Federal and State Filing
    Waivers and Extensions
    Who Must File Magnetically

    IRS Collection

    Failure to Pay Child Support, Federal Non-Tax and State Income Tax Obligations
    Innocent Spouse Relief (And Separation of Liability and Equitable Relief)
    Offers-in-Compromise
    The Collection Process
    What To Do If You Can’t Pay Your Tax

    IRS Help Available

    IRS Services – Volunteer Tax Assistance, Toll-Free Telephone, Walk-in Assistance, and Outreach Programs
    Tax Assistance for Individuals with Disabilities and the Hearing Impaired
    Tax Help for Small Businesses and Self-Employed
    Tax Relief for Victims of Terrorist Attacks
    Taxpayer Advocate Program – Help for Problem Situations

    IRS Links

    IRS Home Page
    IRS Fact Sheets
    Forms And Publications
    Frequently Asked Questions
    IRS Hot Topics
    IRS News Releases
    Tax Professionals
    IRS Tax Tips

    IRS Notices

    IRS Notices and Bills, Penalties and Interest Charges
    Notice of Underreported Income CP2000
    Notices – What to Do

    IRS Procedures

    Circular 230 Information
    2004 Forms W-2 and Form 1099-R (What to Do if Not Received)
    Address Changes (IRS FAQ)
    Amended Returns & Form 1040X (IRS FAQ)
    Change of Address – How to Notify IRS
    Code, Revenue Procedures, Regulations, Letter Rulings (IRS FAQ)
    Collection Procedural Questions (IRS FAQ)
    Copies & Transcripts (IRS FAQ)
    Copy of Your Tax Return – How to Get One
    Ensuring Proper Credit of Payments
    Extensions (IRS FAQ)
    Forms & Publications (IRS FAQ)
    Forms and Publications – How to Order
    General Procedural Questions (IRS FAQ)
    Injured & Innocent Spouse (IRS FAQ)
    Name Changes & Social Security Number Matching Issues (IRS FAQ)
    Notices & Letters (IRS FAQ)
    Refund Inquiries (IRS FAQ)
    Prior Year(s) Form W-2 – (How to Get a Copy of)
    Refunds – How Long They Should Take
    Reporting Fraud (IRS FAQ)
    Signing the Return (IRS FAQ)
    W-2 – Additional, Incorrect, Lost, Non-receipt, Omitted (IRS FAQ)
    W-4 – Allowances, Excess FICA, Students, Withholding
    What To Do if You Haven’t Filed Your Tax Return
    Your Appeal Rights

    Earnings for Clergy
    Minister / Clergy Taxation
    Ministers’ Compensation & Housing Allowance (IRS FAQ)
    Minister’s Housing Allowance
    Sec. 107. Rental value of parsonages
    Publication 1828 – Tax Guide for Churches and Religious Organizations

    Estates

    Estates

    Income Taxation of Trusts and Estates

    Introduction

    This entry covers the federal income taxation of estates and trusts, which is generally covered in Subchapter J of the IRC. It covers both testate and intestate estates, inter vivo trusts and testamentary trusts. It includes consideration of:

    • the theory and overview of subchapter J;
    • a working definition of estates and trusts;
    • general taxation rules; and (4) special rules for estates and trusts.

    Practical application of these rules is provided throughout the analysis.

    The entry explains the implementation of the general income tax theory which imposes a tax on the income earned from gifts and devices, but not the gifts and devices themselves. It also discusses the concepts unique to Subchapter J applicable to estates and trusts such as distributable net income as a qualitative and quantitative measure for allocating income between the estate or trust and its beneficiaries.

    The entry contrasts estates and trusts with other entities such as corporations and associations, and with other relationships, such as agency relationships and debtor-creditor relationships. Consideration is also given to when an estate or trust begins and ends for federal income tax purposes.

    The entry also addresses the repeal of the throwback rules, the election to treat the decedent’s revocable trust as part of the decedent’s estate, and the simplified taxation available for pre-need funeral trusts, as well as the impact of related IRS regulations.

    Internal Revenue Ruling 2004-38

    Internal Revenue Ruling 2004-38 — Health Savings Accounts

    Section 223. – Health Savings Accounts

    ISSUE

    May an individual contribute to a Health Savings Account (HSA) under section 223 of the Internal Revenue Code if the individual is covered by both a high deductible health plan (HDHP) that does not cover prescription drug benefits and by a separate prescription drug plan (or rider) that does not qualify as an HDHP because the plan

    provides benefits before the individual has satisfied the minimum annual deductible required by section 223(c)(2)(A)?

    FACTS

    Individual A is covered by a health plan that satisfies the requirements for an HDHP under section 223(c)(2), including the minimum annual deductible required by section 223(c)(2)(A). The HDHP does not include coverage for prescription drug benefits. Individual A is also covered by another plan (or rider) which provides prescription drug benefits. The prescription drug coverage is not subject to a deductible, but requires a copayment for each prescription. Individual A has no other health coverage, is not eligible for Medicare and may not be claimed as a dependent on another’s return.

    LAW AND ANALYSIS

    Section 223(a) allows a deduction for contributions to an HSA for an “eligible individual.” Section 223(c)(1)(A) provides that an “eligible individual” means, with respect to any month, any individual who, in addition to other requirements, is covered under an HDHP on the first day of such month and is not, while covered under an HDHP, “covered under any health plan which is not a high deductible health plan, and which provides coverage for any benefit which is covered under the high deductible health plan. ”

    Section 223(c)(2)(A) defines an HDHP as a health plan that satisfies certain requirements with respect to minimum annual deductibles and maximum annual out-of-pocket expenses.

    Section 223(c)(1)(B) provides that, in addition to coverage under an HDHP, an eligible individual may also have specifically enumerated coverage that is disregarded for purposes of the deductible. Disregarded coverage includes “permitted insurance” and other specified coverage (“permitted coverage”).

    “Permitted insurance” is coverage under which substantially all of the coverage provided relates to liabilities incurred under workers’ compensation laws, tort liabilities, liabilities relating to ownership or use of property, insurance for a specified disease or illness, and insurance that pays a fixed amount per day (or other period) of hospitalization. “Permitted coverage ” (whether through insurance or otherwise) is coverage for accidents, disability, dental care, vision care or long-term care. Prescription drug benefits are not listed as permitted insurance or as permitted coverage under section 223(c)(1)(B).

    The legislative history of section 223 exp lains these provisions by stating that “eligible individuals for HSAs are individuals who are covered by a high deductible health plan and no other health plan that is not a high deductible health plan.” The legislative history also explains that, “[a]n individual with other coverage in addition to a high deductible health plan is still eligible for an HSA if such other coverage is certain permitted insurance or permitted coverage.” H.R. Conf. Rep. No. 391, 108 th Cong., 1st Sess. 841 (2003).

    Under section 223, an eligible individual cannot be covered by a health plan that is not an HDHP unless that health plan provides coverage for permitted insurance or permitted coverage. A plan that provides benefits for prescription drugs is a health plan.  Prescription drug benefits are not in the list of permitted insurance or permitted coverage. Consequently, an individual who is covered by both an HDHP and by a prescription drug plan is not an eligible individual for the purpose of contributing to an HSA unless the prescription drug coverage is also an HDHP (i.e., the prescription drug plan does not provide benefits unless the required minimum annual deductible under section 223(c)(2)(A) for an HDHP has been satisfied).

    HOLDINGS

    Individual A is covered by both an HDHP that does not cover prescription drugs and by a separate prescription drug plan (or rider) that provides benefits before the minimum annual deductible of the HDHP has been satisfied. Individual A is not an “eligible individual” under section 223(c)(1)(A) and may not make contribut ions to an HSA. The result is the same if this prescription drug benefit is provided as a benefit under a health plan (and not separately) or as a benefit for Individual A under a spouse’s plan.

    However, if a separate prescription drug plan (or rider) does not provide benefits until the minimum annual deductible of the HDHP has been satisfied, or the prescription drug plan is part of an HDHP and subject to the minimum annual deductible, Individual A is an eligible individual under section 223(c)(1)(A).

    See Rev. Proc. 2004-22 published elsewhere in this Internal Revenue Bulletin for information concerning transition relief.

    DRAFTING INFORMATION

    The principal author of this notice is Shoshanna Tanner of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities)

    See Also:

    • Internal Revenue Ruling 2004-2 — Health Savings Accounts
    • Internal Revenue Notice 2004-23 — Health Savings Accounts
    • Internal Revenue Notice 2004-25 — Health Savings Accounts
    • Internal Revenue Ruling 2004-38 — Health Savings Accounts
    • Internal Revenue Procedure 2004-22 — Health Savings Accounts
    • Internal Revenue Notice 2004-50 — Health Savings Accounts
    • Employer Comparable Contributions……..Section 4980G
    • Statute HR 6111 (Tax Relief And Health Care Act of 2006)

    Principal Business Activity Codes

    Principal Business Activity Codes

    Agriculture, Forestry, and Fishing

    Crop production

    • 111100 – Oilseed & grain farming
    • 111210 – Vegetable and melon farming
    • 111300 – Fruit & tree nut farming
    • 111400 – Greenhouse, nursery, & floriculture production
    • 111900 – Other crop farming (tobacco, cotton, etc.)

    Animal production

    • 112111 – Beef cattle ranching & farming
    • 112112 – Cattle feedlots
    • 112120 – Dairy cattle and milk production
    • 112210 – Hog & pig farming
    • 112300 – Poultry & egg production
    • 112400 – Sheep & goat farming
    • 112510 – Animal aquaculture
    • 112900 – Other animal production

    Forestry and logging

    • 113110 – Timber tract operations
    • 113210 – Forest nurseries & gathering of forest products
    • 113310 – Logging

    Fishing, hunting and trapping

    • 114110 – Fishing
    • 114210 – Hunting & trapping

    Support activities for agriculture and forestry

    • 115110 – Support activities for crop production
    • 115210 – Support activities for animal production
    • 115310 – Support activities for forestry

    Mining

    • 211110 – Oil and gas extraction
    • 212110 – Coal mining
    • 212200 – Metal ore mining
    • 212310 – Stone mining & quarrying
    • 212320 – Sand, gravel, clay, etc., mining & quarrying
    • 212390 – Other nonmetallic mineral mining & quarrying
    • 213110 – Support activities for mining

    Utilities

      • 221100 – Electric power generation, transmission, & distr.
      • 221210 – Natual gas distribution
      • 221300 – Water, sewage, & other systems

        Construction

        Construction of buildings

      • 236110 – Residential building construction
      • 236200 – Nonresidential building construction

        Heavy and civil engineering construction

      • 237100 – Utility system construction
      • 237210 – Land subdivision
      • 237310 – Highway, street, & bridge construction
      • 237990 – Other heavy & civil engineering construction

    Specialty trade contractors

      • 238100 – Foundation, structure, & building exterior contractors
      • 238210 – Electical contractors
      • 238220 – Plumbing, heating, & air-conditioning contractors
      • 238290 – Other building equipment contractors
      • 238300 – Building finishing contractors
      • 238900 – Other specialty trade contractors

    Manufacturing

    Food manufacturing

      • 311110 – Animal food mfg
      • 311200 – Grain & oilseed milling
      • 311300 – Sugar & confectionery product mfg
      • 311400 – Fruit & veg. preserving & specialty mfg
      • 311500 – Dairy product mfg
      • 311610 – Animal slaughtering & processing
      • 311710 – Seafood product prep. & packaging
      • 311800 – Bakeries & tortilla mfg
      • 311900 – Other food mfg (coffee, tea, etc.)

    Beverage and tobacco product manufacturing

      • 312110 – Soft drink & ice mfg
      • 312120 – Breweries
      • 312130 – Wineries
      • 312140 – Distilleries
      • 312200 – Tobacco mfg

    Textile mills and textile product mills

      • 313000 – Textile mills
      • 314000 – Textile product mills

    Apparel manufacturing

      • 315100 – Apparel knitting mills
      • 315210 – Cut & sew apparel contractors
      • 315220 – Men’s & boy’s cut & sew apparel mfg
      • 315230 – Women’s & girl’s cut & sew apparel mfg
      • 315290 – Other cut & sew apparel mfg
      • 315990 – Apparel accessories & other apparel mfg

    Leather & allied product manufacturing

      • 316110 – Leather & hide tanning & finishing
      • 316210 – Footwear mfg
      • 316990 – Other leather & allied product mfg

    Wood product manufacturing

      • 321110 – Sawmills & wood preservation
      • 321210 – Veneer, plywood, & eng. wood products
      • 321900 – Other wood product mfg

    Paper manufacturing

      • 322100 – Pulp, paper, paperboard mills
      • 322200 – Converted paper product mfg

    Printing & related support activities

      • 323100 – Printing & related support activities

    Petroleum & coal products manufacturing

      • 324110 – Petroleum refineries
      • 324120 – Asphalt paving, roofing, saturated materials
      • 324190 – Other petroleum & coal products mfg

    Chemical manufacturing

      • 325100 – Basic chemical mfg
      • 325200 – Resin, synthetic rubber, etc., mfg
      • 325300 – Pesticide, fertilizer, other agric. chemicals mfg
      • 325410 – Pharmaceuticals & medicine mfg
      • 325500 – Paint, coating, adhesive mfg
      • 325600 – Soap, cleaning compound, toilet prep. mfg
      • 325900 – Other chemical product & prep. mfg

    Plastics & rubber products manufacturing

      • 326100 – Plastics product mfg
      • 326200 – Rubber product mfg

    Nonmetallic mineral product manufacturing

      • 327100 – Clay product & refractory mfg
      • 327210 – Glass & glass product mfg
      • 327300 – Cement & concreate product mfg
      • 327400 – Lime & gypsum product mfg
      • 327900 – Other nonmetallic mineral product mfg

    Primary metal manufacturing

      • 331110 – Iron & steel mills & ferroalloy mfg
      • 331200 – Steel product mfg from purchased steel
      • 331310 – Alumina & aluminum production & processing
      • 331400 – Nonferrous metals (exept aluminum)
      • 331500 – Foundries

    Fabricated metal product manufacturing

      • 332110 – Forging & stamping
      • 332210 – Cutlery & handtool mfg
      • 332300 – Architectural & structural metals mfg
      • 332400 – Boiler, tank, shipping container mfg
      • 332510 – Hardware mfg
      • 332610 – Spring & wire product mfg
      • 332700 – Machine shops, turned prod, screws, nuts, etc.
      • 332810 – Coating, engraving, heat treating, etc.
      • 332900 – Other fabricated metal product mfg

    Machinery manufacturing

      • 333100 – Agricult., constr, & mining machinery
      • 333200 – Industrial machinery
      • 333310 – Commercial & service industry machinery
      • 333410 – Ventilation, heating, air-cond., etc. machinery
      • 333510 – Metalworking machinery
      • 333610 – Engine, turbine, power transm. equipment
      • 333900 – Other general purpose machinery

    Computer & electronic product manufacturing

      • 334110 – Computer & peripheral equipment
      • 334200 – Communications equipment
      • 334310 – Audio & video equipment
      • 334410 – Semiconductor & other electronic comp. equip.
      • 334500 – Naviagational, measuing, etc. instruments
      • 334610 – Manufact. & reproducing magnetic & optical media

    Electical equipment, appliance, component manufacturing

      • 335100 – Electric lighting equipment mfg
      • 335200 – Household appliance mfg
      • 335310 – Electical equipment mfg
      • 335900 – Other electical equip. & component mfg

    Transportation equipment manufacturing

      • 336100 – Motor vehicle mfg
      • 336210 – Motor vehicle body & trailer mfg
      • 336300 – Motor vehicle parts mfg
      • 336410 – Aerospace product & parts mfg
      • 336510 – Railroad rolling stock mfg
      • 336610 – Ship & boat building
      • 336990 – Other transporation equimpment mfg

    Furniture and related product manufacturing

      • 337000 – Furniture and related product mfg

    Miscellaneous manufacturing

      • 339110 – Medical equipment & supplies mfg
      • 339900 – Other miscellaneous manufacturing

    Wholesale Trade

    Merchant wholesalers, durable goods

      • 423100 – Motor vehicle & parts & supplies
      • 423200 – Furniture & home furnishing
      • 423300 – Lumber & other construction materials
      • 423400 – Professional & commercial equipment & supplies
      • 423500 – Metal & mineral (except petroleum)
      • 423600 – Electrical & electronic goods
      • 423700 – Hardware, plumbing, & heating equipment
      • 423800 – Machinery, equipment, & supplies
      • 423910 – Sporting & recreational goods & supplies
      • 423920 – Toy & hobby goods & supplies
      • 423930 – Recyclable material
      • 423940 – Jewelry, watch, precious stone & precious metal
      • 423990 – Other miscellaneous durable goods

    Merchant wholesalers, nondurable goods

      • 424100 – Paper & paper product
      • 424210 – Drugs & druggists’ sundries
      • 424300 – Apparel, piece goods, & notions
      • 424400 – Grocery & related product
      • 424500 – Farm product raw material
      • 424600 – Chemical & allied products
      • 424700 – Petroleum & petroleum products
      • 424800 – Beer, wine, & distilled alcoholic beverage
      • 424910 – Farm supplies
      • 424920 – Book, periodical, & newspaper
      • 424930 – Flower, nursery stock, & florists’ supplies
      • 424940 – Tobacco & tobacco product
      • 424950 – Paint, varnish, & supplies
      • 424990 – Other miscellaneous nondurable goods

    Wholesale electronic markets and agents and brokers

      • 425110 – Business to business electronic markets
      • 425120 – Wholesale trade agents & brokers

    Retail Trade

    Motor vehicle & parts dealers

      • 441110 – New car dealers
      • 441120 – Used car dealers
      • 441210 – Recreational vehicle dealers
      • 441221 – Motorcycle dealers
      • 441222 – Boat dealers
      • 441229 – All other motor vehicle dealers
      • 441300 – Automotive parts, accessories, & tire stores

    Furniture & home furnishings stores

      • 442110 – Furniture stores
      • 442210 – Floor covering stores
      • 442291 – Window treatment stores
      • 442299 – All other home furnishings stores

    Electronics & appliance stores

      • 443111 – Household appliance stores
      • 443112 – Radio, television, & other electronics stores
      • 443120 – Computer & software stores
      • 443130 – Camera & photographic supplies stores

    Building material & garden equip. & supplies dealers

      • 444110 – Home centers
      • 444120 – Paint & wallpaper stores
      • 444130 – Hardware stores
      • 444190 – Other building material dealers
      • 444200 – Lawn & garden equipment & supplies stores

    Food & beverage stores

      • 445110 – Supermarkets & other grocery (except convenience)
      • 445120 – Convenience stores
      • 445210 – Meat markets
      • 445220 – Fish & seafood markets
      • 445230 – Fruit & vegetable markets
      • 445291 – Baked goods stores
      • 445292 – Confectionery & nut stores
      • 445299 – All other speciality food stores
      • 445310 – Beer, wine, liquor stores

    Health & personal care stores

      • 446110 – Pharmacies & drug stores
      • 446120 – Cosmetics, beauty supplies, & perfume stores
      • 446130 – Optical goods stores
      • 446190 – Other health & personal care stores

    Gasoline stations

      • 447100 – Gasoline stations (incl convenience stores w/gas)

    Clothing & clothing accessories stores

      • 448110 – Men’s clothing stores
      • 448120 – Women’s clothing stores
      • 448130 – Children’s & infant’s clothing stores
      • 448140 – Family clothing stores
      • 448150 – Clothing accessories stores
      • 448190 – Other clothing stores
      • 448210 – Shoe stores
      • 448310 – Jewelry stores
      • 448320 – Luggage & leather goods stores

    Sporting goods, hobby, book, & music stores

      • 451110 – Sporting goods stores
      • 451120 – Hobby, toy, & game stores
      • 451130 – Sewing, needlework, & piece goods stores
      • 451140 – Musical instrument & supplies stores
      • 451211 – Book stores
      • 451212 – News dealers & newsstands
      • 451220 – Prerecorded tape, compact disc, & record stores

    General merchandise stores

      • 452110 – Department stores
      • 452900 – Other general merchandise stores

    Miscellaneous store retailers

      • 453110 – Florists
      • 453210 – Office supplies & stationery stores
      • 453220 – Gift, novelty, & souvenir stores
      • 453310 – Used merchandise stores
      • 453910 – Pet & pet supplies stores
      • 453920 – Art dealers
      • 453930 – Manufactured (mobile) home dealers
      • 453990 – All other miscellaneous store retailers

    Nonstore retailers

      • 454110 – Electronic shopping & mail-order houses
      • 454210 – Vending machine operators
      • 454311 – Heating oil dealers
      • 454312 – Liquefied petroleum gas (bottled gas) dealers
      • 454319 – Other fuel dealers
      • 454390 – Other direct selling establishments
      • Transportation & warehousing

        Air, rail, & water transportation

      • 481000 – Air transportation
      • 482110 – Rail transportation
      • 483000 – Water transportation

      • Truck transportation

      • 484110 – General freight trucking, local
      • 484120 – General freight trucking, long-distance
      • 484200 – Specialized freight trucking
      • Transit & ground passenger transportation

      • 485110 – Urban transit systems
      • 485210 – Interurban & rural bus transportation
      • 485310 – Taxi service
      • 485320 – Limousine service
      • 485410 – School & employee bus transportation
      • 485510 – Charter bus industry
      • 485990 – Other transit & ground passenger transportation
      • Pipeline transportation

      • 486000 – Pipeline transportation
      • Scenic & sightseeing transportation

      • 487000 – Scenic & sightseeing transportation
      • Support activities for transportation

      • 488100 – Support activities for air transportation
      • 488210 – Support activities for rail transportation
      • 488300 – Support activities for water transportation
      • 488410 – Motor vehicle towing
      • 488490 – Other support activities for road transportation
      • 488510 – Freight transportation arrangement
      • 488990 – Other support activities for transportation
      • Couriers & messengers

      • 492110 – Couriers
      • 492210 – Local messengers & local delivery

    Warehousing & storage

      • 493100 – Warehousing & storage (except self storage,etc.)

    Information

    Publishing industries (except internet)

      • 511110 – Newspaper publishers
      • 511120 – Periodical publishers
      • 511130 – Book publishers
      • 511140 – Database & directory publishers
      • 511190 – Other publishers
      • 511210 – Software publishers

    Motion picture & sound recording industries

      • 512100 – Motion picture & video industries (except rental)
      • 512200 – Sound recording industries

    Broadcasting (except internet)

      • 515100 – Radio & television broadcasting
      • 515210 – Cable & other subscription programming

    Internet publishing and broadcasting

      • 516110 – Internet publishing & broadcasting

    Telecommunications

      • 517000 – Telecommunications

    Internet service providers, web search portals, and data processing

      • 518111 – Internet service providers
      • 518112 – Web search portals
      • 518210 – Data processing, hosting, & related services

    Other information services

      • 519100 – Information (news syndicates, on-line services)

    Finance & insurance

    Depository credit intermediation

      • 522110 – Commercial banking
      • 522120 – Savings institutions
      • 522130 – Credit unions
      • 522190 – Other depository credit intermediation

    Nondepository credit intermediation

      • 522210 – Credit card issuing
      • 522220 – Sales financing
      • 522291 – Consumer lending
      • 522292 – Real estate credit (including mortgage bankers)
      • 522293 – International trade financing
      • 522294 – Secondary market financing
      • 522298 – All other nondepository credit intermediation

    Activities related to credit intermediation

      • 522300 – Activities related to credit intermediation

    Securities, commodity contracts, & related activities

      • 523110 – Investment banking & securities dealing
      • 523120 – Securities brokerage
      • 523130 – Commodity contracts dealing
      • 523140 – Commodity contracts brokerage
      • 523210 – Securities & commodity exchanges
      • 523900 – Other financial investment activities

    Insurance carriers & related activities

      • 524140 – Direct life, health, & medical & reinsurance
      • 524150 – Direct, & reinsurance (not life/health/medical)
      • 524210 – Insurance agencies & brokerages
      • 524290 – Other insurance related activities

    Funds, trusts, & other financial vehicles

      • 525100 – Insurance & employee benefit funds
      • 525910 – Open-end investment funds (Form 1120-RIC)
      • 525920 – Trusts, estates, & agency accounts
      • 525930 – Real estate investment trusts (Form 1120-REIT)
      • 525990 – Other financial vehicles

    Real estate & rental & leasing

    Real estate

      • 531110 – Lessors of residential buildings & dwellings
      • 531120 – Lessors of nonresidential buildings
      • 531130 – Lessors of miniwarehouses & self-storage units
      • 531190 – Lessors of other real estate property
      • 531210 – Offices of real estate agents & brokers
      • 531310 – Real estate property managers
      • 531320 – Offices of real estate appraisers
      • 531390 – Other activities related to real estate

    Rental & leasing services

      • 532100 – Automotive equipment rental & leasing
      • 532210 – Consumer electronics & appliances rental
      • 532220 – Formal wear & costume rental
      • 532230 – Video tape & disc rental
      • 532290 – Other consumer goods rental
      • 532310 – General rental centers
      • 532400 – Commercial/industrial machinery/equip rental/lease

    Lessors of nonfinancial intangible assets

      • 533110 – Lessors of nonfinancial intangible assets

    Professional, scientific, & technical services

    Legal services

    • 541110 – Offices of lawyers
    • 541190 – Other legal services

    Accounting, tax preparation, bookkeeping, & payroll

    • 541211 – Offices of certified public accountants
    • 541213 – Tax preparation services
    • 541214 – Payroll services
    • 541219 – Other accounting services

    Architectural, engineering, & related services

    • 541310 – Architectural services
    • 541320 – Landscape architecture services
    • 541330 – Engineering services
    • 541340 – Drafting services
    • 541350 – Building inspection services
    • 541360 – Geophysical surveying & mapping services
    • 541370 – Surveying & mapping (except geophysical) services
    • 541380 – Testing laboratories

    Specialized design services

    • 541400 – Specialized design services (interior/fashion)

    Computer systems design & related services

    • 541511 – Custom computer programming services
    • 541512 – Computer systems design services
    • 541513 – Computer facilities management services
    • 541519 – Other computer related services

    Other professional, scientific, & technical services

    • 541600 – Management, scientific, & technical consulting
    • 541700 – Scientific research & development services
    • 541800 – Advertising & related services
    • 541910 – Marketing research & public opinion polling
    • 541920 – Photographic services
    • 541930 – Translation & interpretation services
    • 541940 – Veterinary services
    • 541990 – All other professional, scientific, & technical

    Management of companies (holding companies)

    • 551111 – Offices of bank holding companies
    • 551112 – Offices of other holding companies

    Administrative & support & waste management & remediation

    Administrative & support services

    • 561110 – Office administrative services
    • 561210 – Facilities support services
    • 561300 – Employment services
    • 561410 – Document preparation services
    • 561420 – Telephone call centers
    • 561430 – Business service centers
    • 561440 – Collection agencies
    • 561450 – Credit bureaus
    • 561490 – Other business support services
    • 561500 – Travel arrangement & reservation services
    • 561600 – Investigation & security services
    • 561710 – Exterminating & pest control services
    • 561720 – Janitorial services
    • 561730 – Landscaping services
    • 561740 – Carpet & upholstery cleaning
    • 561790 – Other services to buildings & dwellings
    • 561900 – Other support services

    Waste management & remediation services

    • 562000 – Waste management & remediation services

    Educational services

    • 611000 – Educational services (schools, colleges, & univ.)

    Health care & social assistance

    Offices of physicians & dentists

    • 621111 – Physicians (except mental health specialists)
    • 621112 – Physicians, mental health specialists
    • 621210 – Dentists

    Offices of other health practitioners

    • 621310 – Chiropractors
    • 621320 – Optometrists
    • 621330 – Mental health practitioners (except physicians)
    • 621340 – Physical, occupational & speech & audiologists
    • 621391 – Podiatrists
    • 621399 – All other miscellaneous health practitioners

    Outpatient care centers

    • 621410 – Family planning
    • 621420 – Outpatient mental health & substance abuse
    • 621491 – HMO medical
    • 621492 – Kidney dialysis
    • 621493 – Freestanding ambulatory surgical & emergency
    • 621498 – All other outpatient care

    Medical & diagnostic laboratories

    • 621510 – Medical & diagnostic laboratories

    Home health care services

    • 621610 – Home health care services

    Other ambulatory health care services

    • 621900 – Other ambulatory health care services

    Hospitals

    • 622000 – Hospitals

    Nursing & residential care facilities

    • 623000 – Nursing & residential care facilities

    Social assistance

    • 624100 – Individual & family services
    • 624200 – Community food & housing & emergency & other
    • 624310 – Vocational rehabilitation services
    • 624410 – Child day care services

    Arts, entertainment, & recreation

    Performing arts/spectator sports/related industries

    • 711100 – Performing arts companies
    • 711210 – Spectator sports (sports clubs & racetracks)
    • 711300 – Promoters of performing arts/sports/related events
    • 711410 – Agents & managers for artists/athletes/entertainer
    • 711510 – Independent artists, writers, & performers

    Museums, historical sites, & similar institutions

    • 712100 – Museums, historical sites, & similar institutions

    Amusement, gambling, & recreation industries

    • 713100 – Amusement parks & arcades
    • 713200 – Gambling industries
    • 713900 – Other amusement (golf courses/skiing/marinas etc.)

    Accomodation & food services

    Accomodations

    • 721110 – Hotels (except casino hotels) & motels
    • 721120 – Casino hotels
    • 721191 – Bed & breakfast inns
    • 721199 – All other travel accomodation
    • 721210 – RV (recreational vehicle) parks & RV camps
    • 721310 – Rooming & boarding houses

    Food services & drinking places

    • 722110 – Full-service restaurants
    • 722210 – Limited-service eating places
    • 722300 – Special food services (contractors & caterers)
    • 722410 – Drinking places (alcoholic beverages)

    Other services

    Repair & maintenance

    • 811110 – Automotive mechanical & electrical
    • 811120 – Automotive, body, paint, interior, & glass
    • 811190 – Other (incl. oil change/lube shops & car washes)
    • 811210 – Electronic & precision equipment
    • 811310 – Commercial & industrial machinery & equipment
    • 811410 – Home & garden equipment & applicance
    • 811420 – Reupholstery & furniture
    • 811430 – Footwear & leather goods
    • 811490 – Other personal & household goods

    Personal & laundry services

    • 812111 – Barber shops
    • 812112 – Beauty salons
    • 812113 – Nail salons
    • 812190 – Other personal care services (diet/weight centers)
    • 812210 – Funeral homes & funeral services
    • 812220 – Cemetaries & crematories
    • 812310 – Coin-operated laundries & drycleaners
    • 812320 – Drycleaning & laundry services (except coin-op.)
    • 812330 – Linen & uniform supply
    • 812910 – Pet care (except veterinary) services
    • 812920 – Photofinishing
    • 812930 – Parking lots & garages
    • 812990 – All other personal services

    Religious/grantmaking/civic/professional/similar orgs.

    • 813000 – Religious/grantmaking/civic/professional orgs.

    Legislative History

    Locating Tax Legislative History Materials

    Locating Tax Legislative Histories by Code Section

    • Tax Management- Primary Sources, BNA, This set includes five loose-leaf volumes of legislative history documents from 1969 onward. The legislative histories appear in code section order and include presidential messages, House and Senate reports, Conference reports and debates.
    • Federal Income, Gift and Estate Taxation, Rabkin and Johnson, Volumes 6, 6A, 6B, 7, 7A, and 7B of this loose-leaf set are arranged in code section order and contain select committee reports concerning the 1954 Code only.
    • Seidman’s Legislative History of Federal Income Tax Laws, 1861-1938,
    • Seidman’s Legislative History of Federal Income and Excess Profits Tax Laws, 1953-1939,
    • Seidman’s is helpful in ascertaining the legislative history of provisions of the 1939 Code or earlier provisions. This series provides the text of Code sections, followed by committee reports, hearings citations, and citations to the Congressional Record.

    Locating Legislative Histories by Public Law Number

    • A Guide and Analytical Index to the Internal Revenue Acts of the United States, 1909-1950, This work provides very comprehensive legislative histories. Its volumes include the congressional version of revenue bills and the full text of hearings, committee reports, and regulations. The set includes a chronological index, which lists the acts and all the items making up the acts’ legislative histories.
    • Internal Revenue Bulletin. This is the official weekly publication of the Internal Revenue Service, which contains committee reports, conference reports, and the full text of tax laws in Part II. It is eventually compiled into the Cumulative Bulletin, Westlaw and Lexis.
    • Internal Revenue Acts. These pamphlets are issued on a yearly basis and are helpful in researching the text and history of sections from the 1954 and 1986 Codes. The pamphlets include the full text of recently enacted statutes in chronological order and, in the second section of the pamphlets, include the text of selected committee reports and Congressional Record statements.

    Other Sources for Locating Legislative History

    • Joint Committee Blue Books (in the House website). Generally, at the end of each Congress, the Joint Committee Staff, in consultation with the staffs of the House Committee on Ways and Means and the Senate Committee on Finance, prepare explanations of the enacted tax legislation. The explanation follows the chronological order of the tax legislation as signed into law. For each provision, the document includes a description of present law, explanation of the provision, and effective date. Present law describes the law in effect immediately prior to enactment. It does not reflect changes to the law made by the provision or subsequent to the enactment of the provision. For many provisions, the reasons for change are also included.
    • Westlaw: (previous) Federal Taxation Legislative History Database: FTX-LH This database contained the Congressional committee reports as reprinted in U.S. Code Congressional and Administrative News from 1948 through the present.
    • Lexis: Federal Tax Legislation, Congressional Reports, & Bills Database: (previous) FEDTAX;LEGIS.  This database contains selected House, Senate, and Conference Committee bills and reports, as well as Public Laws, from 1954 to the present.

    For additional information on locating legislative history materials in resources which are not tax-specific click on the following link to access information about Researching Legislative History in the World Encyclopedia of Law.

    Citing Legislative History Materials in Bluebook

    See Bluebook Rule 13 for information on citing bills, committee hearings, and reports