26 U.S.

Code § 7701 – Definitions

(a)When used in this title, where not otherwise distinctly expressed or
manifestly incompatible with the intent thereof—
(1)PERSON
The term “person” shall be construed to mean and include an individual, a
trust, estate, partnership, association, company or corporation.
(2)PARTNERSHIP AND PARTNER
The term “partnership” includes a syndicate, group, pool, joint venture, or
other unincorporated organization, through or by means of which any
business, financial operation, or venture is carried on, and which is not,
within the meaning of this title, a trust or estate or a corporation; and the
term “partner” includes a member in such a syndicate, group, pool, joint venture,
or organization.
(3)CORPORATION
The term “corporation” includes associations, joint-stock companies, and
insurance companies.
(4)DOMESTIC
The term “domestic” when applied to a corporation or partnership means
created or organized in the United States or under the law of the United
States or of any State unless, in the case of
a partnership, the Secretary provides otherwise by regulations.
(5)FOREIGN
The term “foreign” when applied to a corporation or partnership means
a corporation or partnership which is not domestic.
(6)FIDUCIARY
The term “fiduciary” means a guardian, trustee, executor, administrator,
receiver, conservator, or any person acting in any fiduciary capacity for
any person.
(7)STOCK
The term “stock” includes shares in an association, joint-stock company, or
insurance company.
(8)SHAREHOLDER
The term “shareholder” includes a member in an association, joint-
stock company, or insurance company.
(9)UNITED STATES
The term “United States” when used in a geographical sense includes only
the States and the District of Columbia.
(10)STATE
The term “State” shall be construed to include the District of Columbia,
where such construction is necessary to carry out provisions of this title.
(11)SECRETARY OF THE TREASURY AND SECRETARY
(A)Secretary of the Treasury
The term “Secretary of the Treasury” means the Secretary of the Treasury,
personally, and shall not include any delegate of his.
(B)Secretary
The term “Secretary” means the Secretary of the Treasury or his delegate.
(12)DELEGATE
(A)In generalThe term “or his delegate”—
(i)
when used with reference to the Secretary of the Treasury, means any
officer, employee, or agency of the Treasury Department duly authorized by
the Secretary of the Treasury directly, or indirectly by one or more re-
delegations of authority, to perform the function mentioned or described in
the context; and
(ii)
when used with reference to any other official of the United States, shall be
similarly construed.
(B)Performance of certain functions in Guam or American Samoa
The term “delegate,” in relation to the performance of functions in Guam or
American Samoa with respect to the taxes imposed by chapters 1, 2, and
21, also includes any officer or employee of any other department or agency
of the United States, or of any possession thereof, duly authorized by
the Secretary (directly, or indirectly by one or more redelegations of
authority) to perform such functions.
(13)COMMISSIONER
The term “Commissioner” means the Commissioner of Internal Revenue.
(14)TAXPAYER
The term “taxpayer” means any person subject to any internal revenue tax.
(15)MILITARY OR NAVAL FORCES AND ARMED FORCES OF THE UNITED STATES
The term “military or naval forces of the United States” and the term “Armed
Forces of the United States” each includes all regular and reserve
components of the uniformed services which are subject to the jurisdiction of
the Secretary of Defense, the Secretary of the Army, the Secretary of the
Navy, or the Secretary of the Air Force, and each term also includes
the Coast Guard. The members of such forces include commissioned officers
and personnel below the grade of commissioned officers in such forces.
(16)WITHHOLDING AGENT
The term “withholding agent” means any person required to deduct and
withhold any tax under the provisions of section 1441, 1442, 1443, or 1461.
(17)HUSBAND AND WIFE
As used in section 2516, if the husband and wife therein referred to are
divorced, wherever appropriate to the meaning of such section, the term
“wife” shall be read “former wife” and the term “husband” shall be read
“former husband”; and, if the payments described in such section are made
by or on behalf of the wife or former wife to the husband or former husband
instead of vice versa, wherever appropriate to the meaning of such section,
the term “husband” shall be read “wife” and the term “wife” shall be read
“husband.”
(18)INTERNATIONAL ORGANIZATION
The term “international organization” means a public international
organization entitled to enjoy privileges, exemptions, and immunities as
an international organization under the International Organizations
Immunities Act (22 U.S.C. 288–288f).
(19)DOMESTIC BUILDING AND LOAN ASSOCIATIONThe term “domestic building
and loan association” means a domestic building and loan association,
a domestic savings and loan association, and a Federal savings and loan
association—
(A)
which is subject by law to supervision and examination by State or Federal
authority having supervision over such associations;
(B)
the business of which consists principally of acquiring the savings of the
public and investing in loans; and
(C)at least 60 percent of the amount of the total assets of which (at the
close of the taxable year) consists of—
(i)
cash,
(ii)
obligations of the United States or of a State or political subdivision thereof,
and stock or obligations of a corporation which is an instrumentality of
the United States or of a State or political subdivision thereof, but not
including obligations the interest on which is excludable from gross income
under section 103,

(iii) certificates of deposit in, or obligations of, a corporation organized

under a State law which specifically authorizes such corporation to insure the
deposits or share accounts of member associations,
(iv) loans secured by a deposit or share of a member,
(v)loans (including redeemable ground rents, as defined in section 1055)
secured by an interest in real property which is (or, from the proceeds of the
loan, will become) residential real property or real property used primarily
for church purposes, loans made for the improvement of residential real
property or real property used primarily for church purposes, provided that
for purposes of this clause, residential real property shall include single or
multifamily dwellings, facilities in residential developments dedicated to
public use or property used on a nonprofit basis for residents, and mobile
homes not used on a transient basis,
(vi)
loans secured by an interest in real property located within an urban renewal
area to be developed for predominantly residential use under an urban
renewal plan approved by the Secretary of Housing and Urban Development
under part A or part B of title I of the Housing Act of 1949, as amended, or
located within any area covered by a program eligible for assistance under
section 103 of the Demonstration Cities and Metropolitan Development Act
of 1966, as amended, and loans made for the improvement of any such real
property,
(vii)
loans secured by an interest in educational, health, or welfare institutions or
facilities, including structures designed or used primarily for residential
purposes for students, residents, and persons under care, employees, or
members of the staff of such institutions or facilities,
(viii)
property acquired through the liquidation of defaulted loans described in
clause (v), (vi), or (vii),
(ix)
loans made for the payment of expenses of college or university education
or vocational training, in accordance with such regulations as may be
prescribed by the Secretary,
(x)
property used by the association in the conduct of the business described in
subparagraph (B), and
(xi)
any regular or residual interest in a REMIC, but only in the proportion which
the assets of such REMIC consist of property described in any of the
preceding clauses of this subparagraph; except that if 95 percent or more of
the assets of such REMIC are assets described in clauses (i) through (x), the
entire interest in the REMIC shall qualify.

At the election of the taxpayer, the percentage specified in this subparagraph shall
be applied on the basis of the average assets outstanding during the taxable year,
in lieu of the close of the taxable year, computed under regulations prescribed by
the Secretary. For purposes of clause (v), if a multifamily structure securing a loan
is used in part for nonresidential purposes, the entire loan is deemed a residential
real property loan if the planned residential use exceeds 80 percent of the
property’s planned use (determined as of the time the loan is made). For purposes
of clause (v), loans made to finance the acquisition or development of land shall be
deemed to be loans secured by an interest in residential real property if, under
regulations prescribed by the Secretary, there is reasonable assurance that the
property will become residential real property within a period of 3 years from the
date of acquisition of such land; but this sentence shall not apply for any taxable
year unless, within such 3-year period, such land becomes residential real property.
For purposes of determining whether any interest in a REMIC qualifies under clause
(xi), any regular interest in another REMIC held by such REMIC shall be treated as a
loan described in a preceding clause under principles similar to the principles of
clause (xi); except that, if such REMIC’s are part of a tiered structure, they shall be
treated as 1 REMIC for purposes of clause (xi).

(20)EMPLOYEE
For the purpose of applying the provisions of section 79 with respect to
group-term life insurance purchased for employees, for the purpose of
applying the provisions of sections 104, 105, and 106 with respect to
accident and health insurance or accident and health plans, and for the
purpose of applying the provisions of subtitle A with respect to contributions
to or under a stock bonus, pension, profit-sharing, or annuity plan, and with
respect to distributions under such a plan, or by a trust forming part of such
a plan, and for purposes of applying section 125 with respect to cafeteria
plans, the term “employee” shall include a full-time life insurance salesman
who is considered an employee for the purpose of chapter 21.
(21)LEVY
The term “levy” includes the power of distraint and seizure by any means.
(22)ATTORNEY GENERAL
The term “Attorney General” means the Attorney General of the United
States.
(23)TAXABLE YEAR
The term “taxable year” means the calendar year, or the fiscal year ending
during such calendar year, upon the basis of which the taxable income is
computed under subtitle A. “Taxable year” means, in the case of a return
made for a fractional part of a year under the provisions of subtitle A or
under regulations prescribed by the Secretary, the period for which such
return is made.
(24)FISCAL YEAR
The term “fiscal year” means an accounting period of 12 months ending on
the last day of any month other than December.
(25)PAID OR INCURRED, PAID OR ACCRUED
The terms “paid or incurred” and “paid or accrued” shall be construed
according to the method of accounting upon the basis of which the taxable
income is computed under subtitle A.
(26)TRADE OR BUSINESS
The term “trade or business” includes the performance of the functions of a
public office.
(27)TAX COURT
The term “Tax Court” means the United States Tax Court.
(28)OTHER TERMS
Any term used in this subtitle with respect to the application of, or in
connection with, the provisions of any other subtitle of this title shall have
the same meaning as in such provisions.
(29)INTERNAL REVENUE CODE
The term “Internal Revenue Code of 1986” means this title, and the term
“Internal Revenue Code of 1939” means the Internal Revenue
Code enacted February 10, 1939, as amended.
(30)UNITED STATES PERSONThe term “United States person” means—
(A)
a citizen or resident of the United States,

(B)
a domestic partnership,
(C)
a domestic corporation,
(D)
any estate (other than a foreign estate, within the meaning of paragraph
(31)), and
(E)any trust if—
(i)
a court within the United States is able to exercise primary supervision over
the administration of the trust, and
(ii)
one or more United States persons have the authority to control all
substantial decisions of the trust.

(31)FOREIGN ESTATE OR TRUST

(A)Foreign estate
The term “foreign estate” means an estate the income of which, from
sources without the United States which is not effectively connected with the
conduct of a trade or business within the United States, is not includible in
gross income under subtitle A.
(B)Foreign trust
The term “foreign trust” means any trust other than a trust described in
subparagraph (E) of paragraph (30).
(32)COOPERATIVE BANKThe term “cooperative bank” means an institution
without capital stock organized and operated for mutual purposes and
without profit, which—
(A)
is subject by law to supervision and examination by State or Federal
authority having supervision over such institutions, and
(B)
meets the requirements of subparagraphs (B) and (C) of paragraph (19) of
this subsection (relating to definition of domestic building and loan
association).
In determining whether an institution meets the requirements referred to in
subparagraph (B) of this paragraph, any reference to an association or to
a domestic building and loan association contained in paragraph (19) shall
be deemed to be a reference to such institution.