26 USC § 1373 - Foreign income

---
identifier: "/us/usc/t26/s1373"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 1373 - Foreign income"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "1373"
section_name: "Foreign income"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "S"
subchapter_name: "Tax Treatment of S Corporations and Their Shareholders"
part_number: "III"
part_name: "SPECIAL RULES"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 97–354, § 2, Oct. 19, 1982, 96 Stat. 1682.)"
---


# § 1373. Foreign income

**(a)** **S corporation treated as partnership, etc.** For purposes of subparts A and F of part III, and part V, of subchapter N (relating to income from sources without the United States)—

**(1)** an S corporation shall be treated as a partnership, and

**(2)** the shareholders of such corporation shall be treated as partners of such partnership.

**(b)** **Recapture of overall foreign loss** For purposes of section 904(f) (relating to recapture of overall foreign loss), the making or termination of an election to be treated as an S corporation shall be treated as a disposition of the business.

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**Source Credit**: (Added Pub. L. 97–354, § 2, Oct. 19, 1982, 96 Stat. 1682.)

## Editorial Notes

### Prior Provisions

A prior section 1373, added , , ; amended , , ; , , , related to taxation of corporation undistributed taxable income to shareholders, prior to the general revision of this subchapter by .

## Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to taxable years beginning after , see , set out as a note under .