Notes on 26 U.S.C. § 1401 : US Code - Notes

Search Notes on 26 U.S.C. § 1401 : US Code - Notes

(Aug. 16, 1954, ch. 736, 68A Stat. 353; Sept. 1, 1954, ch. 1206,
title II, Sec. 208(a), 68 Stat. 1093; Aug. 1, 1956, ch. 836, title
II, Sec. 202(a), 70 Stat. 845; Pub. L. 85-840, title IV, Sec.
401(a), Aug. 28, 1958, 72 Stat. 1041; Pub. L. 87-64, title II, Sec.
201(a), June 30, 1961, 75 Stat. 140; Pub. L. 89-97, title I, Sec.
111(c)(4), title III, Sec. 321(a), July 30, 1965, 79 Stat. 342,
394; Pub. L. 90-248, title I, Sec. 109(a)(1), (b)(1), Jan. 2, 1968,
81 Stat. 835, 836; Pub. L. 92-336, title II, Sec. 204 (a)(1),
(b)(1), July 1, 1972, 86 Stat. 420, 421; Pub. L. 92-603, title I,
Sec. 135(a)(1), (b)(1), Oct. 30, 1972, 86 Stat. 1362, 1363; Pub. L.
93-233, Sec. 6(b)(1), Dec. 31, 1973, 87 Stat. 955; Pub. L. 94-455,
title XIX, Sec. 1901(a)(154), Oct. 4, 1976, 90 Stat. 1789; Pub. L.
95-216, title I, Sec. 101(a)(3), (b)(3), title III, Sec. 317(b)(1),
Dec. 20, 1977, 91 Stat. 1511, 1512, 1539; Pub. L. 98-21, title I,
Sec. 124(a), (b), Apr. 20, 1983, 97 Stat. 89; Pub. L. 101-508,
title XI, Sec. 11801(a)(36), (c)(16), Nov. 5, 1990, 104 Stat. 1388-
521, 1388-527; Pub. L. 108-203, title IV, Sec. 415, Mar. 2, 2004,
118 Stat. 530.)
REFERENCES IN TEXT
Section 233 of the Social Security Act, referred to in subsec.
(c), is classified to section 433 of Title 42, The Public Health
and Welfare.
AMENDMENTS
2004 - Subsec. (c). Pub. L. 108-203 substituted "exclusively to
the laws applicable to" for "to taxes or contributions for similar
purposes under".
1990 - Subsecs. (c), (d). Pub. L. 101-508 redesignated subsec.
(d) as (c) and struck out former subsec. (c) which provided a
credit against self-employment taxes imposed by this section.
1983 - Subsec. (a). Pub. L. 98-21, Sec. 124(a), amended subsec.
(a) generally, substituting a table for former pars. (1) to (7)
which had imposed a tax on the self-employment income of every
individual (1) in the case of any taxable year beginning before
Jan. 1, 1978, to be equal to 7.0 percent of the amount of the self-
employment income for such taxable year; (2) in the case of any
taxable year beginning after Dec. 31, 1977, and before Jan. 1,
1979, to be equal to 7.10 percent of the amount of the self-
employment income for such taxable year; (3) in the case of any
taxable year beginning after Dec. 31, 1978, and before Jan. 1,
1981, to be equal to 7.05 percent of the amount of the self-
employment income for such taxable year; (4) in the case of any
taxable year beginning after Dec. 31, 1980, and before Jan. 1,
1982, to be equal to 8.00 percent of the amount of the self-
employment income for such taxable year; (5) in the case of any
taxable year beginning after Dec. 31, 1981, and before Jan. 1,
1985, to be equal to 8.05 percent of the amount of the self-
employment income for such taxable year; (6) in the case of any
taxable year beginning after Dec. 31, 1984, and before Jan. 1,
1990, to be equal to 8.55 percent of the amount of the self-
employment income for such taxable year; and (7) in the case of
any taxable year beginning after Dec. 31, 1989, to be equal to 9.30
percent of the amount of the self-employment income for such
taxable year.
Subsec. (b). Pub. L. 98-21, Sec. 124(a), amended subsec. (b)
generally, substituting a table for former pars. (1) to (6) which
had imposed a tax on the self-employment income of every individual
(1) in the case of any taxable year beginning after Dec. 31, 1973,
and before Jan. 1, 1978, to be equal to 0.90 percent of the amount
of the self-employment income for such taxable year; (2) in the
case of any taxable year beginning after Dec. 31, 1977, and before
Jan. 1, 1979, to be equal to 1.00 percent of the amount of the self-
employment income for such taxable year; (3) in the case of any
taxable year beginning after Dec. 31, 1978, and before Jan. 1,
1981, to be equal to 1.05 percent of the amount of the self-
employment income for such taxable year; (4) in the case of any
taxable year beginning after Dec. 31, 1980, and before Jan. 1,
1985, to be equal to 1.30 percent of the amount of the self-
employment income for such taxable year; (5) in the case of any
taxable year beginning after Dec. 31, 1984, and before Jan. 1,
1986, to be equal to 1.35 percent of the amount of the self-
employment income for such taxable year; and (6) in the case of
any taxable year beginning after Dec. 31, 1985, to be equal to 1.45
percent of the amount of the self-employment income for such
taxable year.
Subsecs. (c), (d). Pub. L. 98-21, Sec. 124(b), added subsec. (c)
and redesignated former subsec. (c) as (d).
1977 - Subsec. (a). Pub. L. 95-216, Sec. 101(a)(3), substituted
provisions calling for a graduated increase in the tax from 7.0
percent for taxable years beginning before Jan. 1, 1978, to 9.30
percent for taxable years beginning after Dec. 31, 1989, for
provisions under which the tax had been set at 7.0 percent without
any increase in the rate in future years.
Subsec. (b). Pub. L. 95-216, Sec. 101(b)(3), substituted "after
December 31, 1977, and before January 1, 1979" for "after December
31, 1977, and before January 1, 1981" and "1.00 percent" for "1.10
percent" in par. (2), substituted "after December 31, 1978, and
before January 1, 1981" for "after December 31, 1980, and before
January 1, 1986" and "1.05 percent" for "1.35 percent" in par. (3),
substituted "after December 31, 1980, and before January 1, 1985"
for "after December 31, 1985" and "1.30 percent" for "1.50 percent"
in par. (4), and added pars. (5) and (6).
Subsec. (c). Pub. L. 95-216, Sec. 317(b)(1), added subsec. (c).
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1901(a)(154)(A), among
other changes, substituted provisions relating to a uniform tax
rate of 7 percent on self-employment income of every individual for
provisions relating to varied tax rate of 5.8 percent of the amount
of self-employment income for any taxable year beginning after Dec.
31, 1967, and before Jan. 1, 1969, 6.3 percent for any taxable year
beginning after Dec. 31, 1968, and before Jan. 1, 1971, 6.9 percent
for any taxable year beginning after Dec. 31, 1970, and before Jan.
1, 1973, and 7.0 percent for any taxable year beginning after Dec.
31, 1972.
Subsec. (b). Pub. L. 94-455, Sec. 1901(a)(154)(B), redesignated
pars. (3) to (6) as (1) to (4). Former pars. (1) and (2), which
related to a 6 percent tax rate on self-employment income for any
taxable year beginning after Dec. 31, 1967, and before Jan. 1,
1974, and 1 percent tax rate on self-employment income for any
taxable year beginning after Dec. 31, 1972, and before Jan. 1,
1974, were struck out.
1973 - Subsec. (b)(2). Pub. L. 93-233 substituted "1974" for
"1978".
Subsec. (b)(3). Pub. L. 93-233 substituted "1973" and "1978" for
"1977" and "1981" and decreased the rate of tax from 1.25 percent
to 0.90 percent.
Subsec. (b)(4). Pub. L. 93-233 substituted "1977" and "1981" for
"1980" and "1986" and decreased the rate of tax from 1.35 percent
to 1.10 percent.
Subsec. (b)(5). Pub. L. 93-233 substituted "beginning after
December 31, 1980, and before January 1, 1986" for "beginning after
December 31, 1985" and decreased the rate of tax from 1.45 percent
to 1.35 percent.
Subsec. (b)(6). Pub. L. 93-233 added par. (6).
1972 - Subsec. (a)(3). Pub. L. 92-603, Sec. 135(a)(1)(A),
substituted "1973" for "1978".
Subsec. (a)(4). Pub. L. 92-603, Sec. 135(a)(1)(B), substituted
provisions that in the case of taxable years beginning after Dec.
31, 1972, the tax shall be equal to 7.0 percent of the amount of
the self-employment income for such taxable year, for provisions
that in the case of taxable years beginning after Dec. 31, 1977,
and before Jan. 1, 2011, the tax shall be equal to 6.7 percent of
the amount of the self-employment income for such taxable year.
Subsec. (a)(5). Pub. L. 92-603, Sec. 135(a)(1)(B), struck out
par. (5) which provided that in the case of taxable years beginning
after Dec. 31, 2010, the tax shall be equal to 7.0 percent of the
amount of the self-employment income for the taxable year.
Subsec. (a)(3) to (5). Pub. L. 92-336, Sec. 204(a)(1),
substituted "January 1, 1978" for "January 1, 1973" and struck out
"and" after "such taxable year" in par. (3), extended from any
taxable year beginning after December 31, 1972 to any taxable year
beginning after December 31, 1977, and before January 1, 2011, and
decreased from 7.0 percent to 6.7 percent the provisions relating
to the tax on self-employment income in par. (4), and added par.
(5).
Subsec. (b)(2). Pub. L. 92-603, Sec. 135(b)(1), increased the
rate of tax from 0.9 percent to 1.0 percent.
Subsec. (b)(3). Pub. L. 92-603, Sec. 135(b)(1), substituted
"1981" for "1986" and "1.25" for "1.0".
Subsec. (b)(4). Pub. L. 92-603, Sec. 135(b)(1), substituted
"1980" for "1985", "1986" for "1993", and "1.35" for "1.1".
Subsec. (b)(5). Pub. L. 92-603, Sec. 135(b)(1), substituted
"1985" for "1992" and "1.45" for "1.2".
Subsec. (b)(2) to (5). Pub. L. 92-336, Sec. 204(b)(1),
substituted "1978" for "1976" and "0.9" for "0.65" in subsec.
(b)(2), "1977" for "1975", "1986" for "1980" and "1.0" for "0.70"
in par. (3), "1985" for "1979", "1993" for "1987" and "1.1" for
"0.80" in par. (4), and "1992" for "1986" and "1.2" for "0.90" in
par. (5).
1968 - Subsecs. (a)(1) to (4). Pub. L. 90-248, Sec. 109(a)(1),
substituted "December 31, 1967" and "January 1, 1969" for "December
31, 1965" and "January 1, 1967" in par. (1), "December 31, 1968",
"January 1, 1971" and "6.3" for "December 31, 1966", "January 1,
1969", and "5.9" in par. (2), and "December 31, 1970" and "6.9" for
"December 31, 1968" and "6.6" in par. (3), and reenacted par. (4)
without change.
Subsec. (b)(1) to (5). Pub. L. 90-248, Sec. 109(b)(1), struck out
par. (1) provision for rate of 0.35 percent of amount of self-
employment income for any taxable year beginning after Dec. 31,
1965, and before Jan. 1, 1967, redesignated former pars. (2) to (6)
as (1) to (5), substituted "December 31, 1967" for "December 31,
1966" in such par. (1) and increased the rate by 0.10 percent to
0.60, 0.65, 0.70, 0.80, and 0.90 in pars. (1) to (5), respectively.
1965 - Pub. L. 89-97, Sec. 321(a), divided the total tax imposed
under the entire section for each taxable year upon the self-
employment income for such taxable year into two separate taxes by
dividing the section into subsecs. (a) and (b), with subsec. (a)
reflecting the tax for old-age, survivors, and disability insurance
and subsec. (b) reflecting a separate tax for hospital insurance;
reduced from 6.2 percent to 6.15 percent the rate of total tax
imposed under the entire section for taxable years beginning after
Dec. 31, 1965, and before Jan. 1, 1967 (resulting from a tax of 5.8
percent under subsec. (a) and 0.35 percent under subsec. (b)),
increased from 6.2 percent to 6.4 percent the rate for taxable
years beginning after Dec. 31, 1966, and before Jan. 1, 1968
(resulting from a tax of 5.9 percent under subsec. (a) and 0.50
percent under subsec. (b)), reduced from 6.9 percent to 6.4 percent
the rate for taxable years beginning after Dec. 31, 1967, and
before Jan. 1, 1969 (resulting from a tax of 5.9 percent under
subsec. (a) and 0.50 percent under subsec. (b)), increased from 6.9
percent to 7.1 percent the rate for taxable years beginning after
Dec. 31, 1968, and before Jan. 1, 1973 (resulting from a tax of 6.6
percent under subsec. (a) and 0.50 percent under subsec. (b)), from
6.9 percent to 7.55 percent the rate for taxable years beginning
after Dec. 31, 1972, and before Jan. 1, 1976 (resulting from a tax
of 7.0 percent under subsec. (a) and 0.55 percent under subsec.
(b)), from 6.9 percent to 7.60 percent the rate for taxable years
beginning after Dec. 31, 1975, and before Jan. 1, 1980 (resulting
from a tax of 7.0 percent under subsec. (a) and 0.60 percent under
subsec. (b)), from 6.9 percent to 7.70 percent the rate for taxable
years beginning after Dec. 31, 1979, and before Jan. 1, 1987
(resulting from a tax of 7.0 percent under subsec. (a) and 0.70
percent under subsec. (b)), and from 6.9 percent to 7.80 percent
the rate for taxable years beginning after Dec. 31, 1986 (resulting
from a tax of 7.0 percent under subsec. (a) and 0.80 percent under
subsec. (b)), and provided that the exclusion of employee
representatives by section 1402(c)(3) should not apply for purposes
of the tax imposed by subsec. (b).
Subsec. (b). Pub. L. 89-97, Sec. 111(c)(4), struck out provision
that for purposes of the tax imposed by this subsection, the
exclusion of employee representatives by section 1402(c)(3) shall
not apply.
1961 - Pub. L. 87-64 increased the rate of tax for taxable years
beginning after Dec. 31, 1961, and before Jan. 1, 1963, from 4 1/2
to 4.7 percent, taxable years beginning after Dec. 31, 1962, and
before Jan. 1, 1966, from 5 1/4 to 5.4 percent, taxable years
beginning after Dec. 31, 1965, and before Jan. 1, 1968, from 6 to
6.2 percent, taxable year beginning after Dec. 31, 1967, and before
Jan. 1, 1969, from 6 to 6.9 percent, and taxable years beginning
after Dec. 31, 1968, from 6 3/4 to 6.9 percent.
1958 - Pub. L. 85-840 increased the rate of tax by substituting
provisions imposing a tax of 3 3/4 percent for taxable years
beginning after Dec. 31, 1958, 4 1/2 percent for years beginning
after Dec. 31, 1959, 5 1/4 percent for years beginning after Dec.
31, 1962, 6 percent for years beginning after Dec. 31, 1965, and 6
3/4 percent for years beginning after Dec. 31, 1968, for
provisions which imposed a tax of 3 3/8 percent for taxable years
beginning after Dec. 31, 1956, 4 1/8 percent for years beginning
after Dec. 31, 1959, 4 7/8 percent for years beginning after Dec.
31, 1964, 5 5/8 percent for years beginning after Dec. 31, 1969,
and 6 3/8 percent for years beginning after Dec. 31, 1974.
1956 - Act Aug. 1, 1956, increased the rate of tax for all
taxable years beginning after Dec. 31, 1956, by three-eighths
percent.
1954 - Act Sept. 1, 1954, increased the 4 7/8 percent rate of
tax on self-employment income for taxable years beginning after
Dec. 31, 1969, to 5 1/4 percent for taxable years beginning after
Dec. 31, 1969, and before Jan. 1, 1975, and 6 percent for taxable
years beginning after Dec. 31, 1974.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 124(d) of Pub. L. 98-21 provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section, sections
32, 164, 275, 401, and 1402 of this title, and section 411 of Title
42, The Public Health and Welfare] shall apply to taxable years
beginning after December 31, 1983.
"(2) Subsection (c). - The amendments made by subsection (c)
[amending sections 32, 164, 275, 401, and 1402 of this title and
section 411 of Title 42] shall apply to taxable years beginning
after December 31, 1989."
EFFECTIVE DATE OF 1977 AMENDMENT
Section 104 of title I of Pub. L. 95-216 provided that: "The
amendments made by this title [amending this section, sections 3101
and 3111 of this title, and sections 401, 415, and 430 of Title 42,
The Public Health and Welfare] shall apply with respect to
remuneration paid or received, and taxable years beginning, after
1977."
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 effective for taxable years beginning
after Dec. 31, 1976, see section 1901(d) set out as a note under
section 2 of this title.
EFFECTIVE DATE OF 1973 AMENDMENT
Section 6(c) of Pub. L. 93-233 provided that: "The amendment made
by subsection (b)(1) [amending this section] shall apply only with
respect to taxable years beginning after December 31, 1973. The
remaining amendments made by this section [amending sections 3101
and 3111 of this title] shall apply only with respect to
remuneration paid after December 31, 1973."
EFFECTIVE DATE OF 1972 AMENDMENTS
Section 135(c) of Pub. L. 92-603 provided that: "The amendments
made by subsections (a)(1) and (b)(1) [amending this section] shall
apply only with respect to taxable years beginning after December
31, 1972. The remaining amendments made by this section [amending
sections 3101 and 3111 of this title] shall apply only with respect
to remuneration paid after December 31, 1972."
Section 204(c) of Pub. L. 92-336 provided that: "The amendments
made by subsections (a)(1) and (b)(1) [amending this section] shall
apply only with respect to taxable years beginning after December
31, 1972. The remaining amendments made by this section [amending
sections 3101 and 3111 of this title] shall apply only with respect
to remuneration paid after December 31, 1972."
EFFECTIVE DATE OF 1968 AMENDMENT
Section 109(c) of Pub. L. 90-248 provided that: "The amendments
made by subsections (a)(1) and (b)(1) [amending this section] shall
apply only with respect to taxable years beginning after December
31, 1967. The remaining amendments made by this section [amending
sections 3101 and 3111 of this title] shall apply only with respect
to remuneration paid after December 31, 1967."
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 111(c)(4) of Pub. L. 89-97 applicable to
calendar year 1966 or to any subsequent calendar year but only if
by October 1 immediately preceding such calendar year the Railroad
Retirement Tax Act [section 3201 et seq. of this title] provides
for a maximum amount of monthly compensation taxable under such Act
during all months of such calendar year equal to one-twelfth of
maximum wages which Federal Insurance Contributions Act [section
3101 et seq. of this title] provides may be counted for such
calendar year, see section 111(e) of Pub. L. 89-97, set out as an
Effective Date note under section 1395i-1 of Title 42, The Public
Health and Welfare.
Section 321(d) of Pub. L. 89-97 provided that: "The amendments
made by subsection (a) [amending this section] shall apply only
with respect to taxable years beginning after December 31, 1965.
The amendments made by subsections (b) and (c) [amending sections
3101 and 3111 of this title] shall apply only with respect to
remuneration paid after December 31, 1965."
EFFECTIVE DATE OF 1961 AMENDMENT
Section 201(d) of Pub. L. 87-64 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to taxable years beginning after December 31, 1961. The
amendments made by subsections (b) and (c) [amending sections 3101
and 3111 of this title] shall apply with respect to remuneration
paid after December 31, 1961."
EFFECTIVE DATE OF 1958 AMENDMENT
Section 401(d) of Pub. L. 85-840 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to taxable years beginning after December 31, 1958. The
amendments made by subsections (b) and (c) [amending sections 3101
and 3111 of this title] shall apply with respect to remuneration
paid after December 31, 1958."
EFFECTIVE DATE OF 1956 AMENDMENT
Section 202(d) of act Aug. 1, 1956, provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to taxable years beginning after December 31, 1956. The
amendments made by subsections (b) and (c) [amending sections 3101
and 3111 of this title] shall apply with respect to remuneration
paid after December 31, 1956."
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 45K of this title.
LAND DIVERTED UNDER 1983 PAYMENT-IN-KIND PROGRAM
Land diverted from production of agricultural commodities under a
1983 payment-in-kind program to be treated, for purposes of this
chapter, as used during the 1983 crop year by qualified taxpayers
in the active conduct of the trade or business of farming, with
qualified taxpayers who materially participate in the diversion and
devotion to conservation uses under a 1983 payment-in-kind program
to be treated as materially participating in the operation of such
land during the 1983 crop year, see section 3 of Pub. L. 98-4, set
out as a note under section 61 of this title.
DEDUCTION BY OR CREDIT AGAINST INDIVIDUAL INCOME TAX FOR TAXES PAID
INTO FOREIGN SOCIAL SECURITY SYSTEM PURSUANT TO INTERNATIONAL
AGREEMENT
Section 317(b)(4) of Pub. L. 95-216 provided that:
"Notwithstanding any other provision of law, taxes paid by any
individual to any foreign country with respect to any period of
employment or self-employment which is covered under the social
security system of such foreign country in accordance with the
terms of an agreement entered into pursuant to section 233 of the
Social Security Act [section 433 of Title 42, The Public Health and
Welfare] shall not, under the income tax laws of the United States,
be deductible by, or creditable against the income tax of, any such
individual."