26 CFR § 1.1377-3 - Applicability dates.

---
identifier: "/us/cfr/t26/s1.1377-3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 1.1377-3 - Applicability dates."
title_number: 26
title_name: "Internal Revenue"
section_number: "1.1377-3"
section_name: "Applicability dates."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "1"
part_name: "INCOME TAXES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise noted."
regulatory_source: "T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted."
cfr_part: "1"
---


# 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. 9914, 85 FR 66484, Oct. 20, 2020]