Treatment of Payments from Partnerships to Partners for Property or Services
Section 70602 · Sec. 70602 ·
What this chapter is about
This part rewrites the opening words of a partnership tax rule. The rule no longer waits on regulations. It reaches work done and property moved after this law passed. It says no view is taken on earlier payments.
“Section 707(a)(2) is amended by striking "Under regulations prescribed" and inserting "Except as provided".”
The section strikes the words Under regulations prescribed at the start of section 707(a)(2) of the Internal Revenue Code of 1986 and inserts Except as provided.
What the document actually says
“Section 707(a)(2) is amended by striking "Under regulations prescribed" and inserting "Except as provided".”
That sentence, in plain words
Three words are taken out of a tax rule. Three new ones are put in.
What this is about
The old words tied the rule to regulations. The new ones do not. So the rule stands on its own.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70602 in the PDF
What the document says
“The amendment made by this section shall apply to services performed, and property transferred, after the date of the enactment of this Act.”
The section applies its amendment to services performed and property transferred after the date of enactment. It also provides that nothing in the section creates any inference about the proper treatment under section 707(a) of payments for services performed or property transferred on or before that date.
What the document actually says
“The amendment made by this section shall apply to services performed, and property transferred, after the date of the enactment of this Act.”
That sentence, in plain words
The change reaches work done after this law passed. It also reaches property moved after that day.
What this is about
Earlier work and transfers are left out. The law says no view is taken on them. That is stated in its own subsection.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: change the opening words of the rule, fix the effective date, and state that no inference is drawn about earlier payments.
Nothing in the section is left out. It has three subsections and each is recorded.
The section works by amending section 707(a)(2) of the Internal Revenue Code of 1986, which is not indexed here, so what the rule does cannot be checked against anything on this site.
