What Is Section 319 of the Internal Revenue Code?
Clarify a common search query about the tax code. Learn why IRC Section 319 doesn't exist and explore the likely tax or environmental laws you may be seeking.
A search for Section 319 of the Internal Revenue Code (IRC) often leads to confusion, as there is no substantive tax law under this specific number. The designation’s most prominent use in federal law is within the Clean Water Act. Individuals searching for tax information may have mistyped a different section number.
Potentially Related Internal Revenue Codes
A common reason for landing on the non-existent tax code 319 is an error when searching for IRC Section 316. This section defines what a “dividend” is for income tax purposes. A distribution from a corporation to a shareholder is considered a dividend if it comes from the corporation’s current or accumulated “earnings and profits.”
If a distribution exceeds the company’s earnings and profits, the excess amount is treated as a non-taxable return of capital until the shareholder’s basis in the stock is zero. Any further amount is taxed as a capital gain. This rule prevents a return of a shareholder’s original investment from being taxed as ordinary income.
Another potential typo is a search for IRC Section 318, which contains the “constructive ownership” or attribution rules. These regulations determine when a person or entity is legally considered to own stock that is actually held by a related party. For example, an individual is treated as owning the stock owned by their spouse, children, grandchildren, and parents. These rules are applied in specific corporate transactions to prevent tax avoidance.
The Clean Water Act Section 319
The most common official use of “Section 319” in federal law is in the Clean Water Act, which established the Nonpoint Source Management Program. Administered by the U.S. Environmental Protection Agency (EPA), this program provides federal grants to states, territories, and tribes. The funds are used to manage pollution that does not come from a single, identifiable source, such as a pipe.
Nonpoint source pollution includes runoff from agricultural lands, urban areas, or forestry activities that carries pollutants into rivers, lakes, and streams. States use Section 319 grant funds for technical assistance, watershed restoration projects, public education, and implementing best management practices. Examples of these practices include installing systems to treat stormwater runoff or restoring stream banks.