§ 3502. — Nondeductibility of taxes in computing taxable income.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 26USC3502]
TITLE 26--INTERNAL REVENUE CODE
Subtitle C--Employment Taxes
CHAPTER 25--GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES
Sec. 3502. Nondeductibility of taxes in computing taxable income
(a) The taxes imposed by section 3101 of chapter 21, and by sections
3201 and 3211 of chapter 22 shall not be allowed as a deduction to the
taxpayer in computing taxable income under subtitle A.
(b) The tax deducted and withheld under chapter 24 shall not be
allowed as a deduction either to the employer or to the recipient of the
income in computing taxable income under subtitle A.
(Aug. 16, 1954, ch. 736, 68A Stat. 471; Pub. L. 97-248, title III,
Secs. 305(b), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98-67,
title I, Sec. 102(a), Aug. 5, 1983, 97 Stat. 369.)
Amendments
1983--Subsecs. (b), (c). Pub. L. 98-67 repealed amendments made by
Pub. L. 97-248. See 1982 Amendment note below.
1982--Subsecs. (b), (c). Pub. L. 97-248 provided that, applicable to
payments of interest, dividends, and patronage dividends paid or
credited after June 30, 1983, subsec. (b) is amended and a new subsec.
(c) is added. Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 5,
1983, 97 Stat. 369, repealed subtitle A (Secs. 301-308) of title III of
Pub. L. 97-248 as of the close of June 30, 1983, and provided that the
Internal Revenue Code of 1954 [now 1986] [this title] shall be applied
and administered (subject to certain exceptions) as if such subtitle A
(and the amendments made by such subtitle A) had not been enacted.
