26 U.S.C. § 985
Functional currency
United States · Title 26 — INTERNAL REVENUE CODE · Status: effective
Cite this
- Citation
- 26 U.S.C. § 985, Functional currency, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/462853
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Full text
Unless otherwise provided in regulations, all determinations under this subtitle shall be made in the taxpayer’s functional currency.
For purposes of this subtitle, the term “functional currency” means—
The functional currency of any qualified business unit shall be the dollar if activities of such unit are primarily conducted in dollars.
To the extent provided in regulations, the taxpayer may elect to use the dollar as the functional currency for any qualified business unit if—
Any change in the functional currency shall be treated as a change in the taxpayer’s method of accounting for purposes of section 481 under procedures to be established by the Secretary.
Legislative history
The public laws that enacted or amended this section. Tallies are for the whole bill as it passed each chamber — often an omnibus covering far more than this provision — not a vote on this section alone.
- Tax Reform Act of 1986House: no recorded tallySenate: no recorded tally