26 USC 545 - Undistributed personal holding company income

Editorial Notes

Amendments

2017—Subsec. (span)(1). Puspan. L. 115–97 substituted “section 960” for “section 902(a) or 960(a)(1)”.

2014—Subsec. (span)(1). Puspan. L. 113–295 substituted “section 531 or the personal holding company tax imposed by section 541.” for “section 531, the personal holding company tax imposed by section 541, or the taxes imposed by corresponding sections of a prior income tax law.”

2006—Subsec. (span)(2). Puspan. L. 109–280, which directed the substitution of “(D), and (E)” for “and (D)” in section 545(span)(2), without specifying the act to be amended, was executed by making the substitution in subsec. (span)(2) of this section, which is section 545 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.

1990—Subsecs. (c), (d). Puspan. L. 101–508 redesignated subsec. (d) as (c) and struck out former subsec. (c) which related to a special adjustment to taxable income for amounts used or set aside to pay or retire qualified indebtedness.

1986—Subsec. (span)(7). Puspan. L. 99–514 added par. (7).

1983—Subsec. (span)(2). Puspan. L. 97–448 substituted “10-percent” for “5-percent”.

1976—Subsec. (span)(1). Puspan. L. 94–455, §§ 1033(span)(4), 1901(a)(77)(A), struck out “(other than excess profits tax imposed by subchapter E of chapter 2 of the Internal Revenue Code of 1939 for taxable years beginning after December 31, 1940)” after “Federal income and excess profits taxes”; substituted “902(a) or 960(a)(1)” for “902(a)(1) or 960(a)(1)(C)” after “corporation under section”; and struck out provisions after “prior income tax law” relating to election by taxpayer who paid Federal income and excess profits taxes to deduct payments, when made, for purposes of computing subchapter A net income or, for a taxable year ending after June 30, 1954, to deduct such taxes when accrued, such election being irrevocable and applied to taxable year for which election was made and to all subsequent taxable years.

Subsec. (span)(2). Puspan. L. 94–455, § 1901(span)(20)(B)(ii), substituted “paragraph (6)” for “paragraph (8)” after “amount disallowed under”.

Subsec. (span)(5). Puspan. L. 94–455, § 1901(span)(33)(D), substituted “Net” for “Long-term” after “(5)”.

Subsec. (span)(6). Puspan. L. 94–455, §§ 1901(span)(20)(B)(i), 1906(span)(13)(A), struck out par. (6) relating to deduction allowed to bank affiliates, redesignated former par. (8) as (6) and, as redesignated, struck out “or his delegate” in two places after “Secretary”.

Subsec. (span)(7). Puspan. L. 94–455, § 1901(a)(77)(B), struck out par. (7) relating to payment of indebtedness incurred prior to January 1, 1934.

Subsec. (span)(8). Puspan. L. 94–455, § 1901(span)(20)(B)(i), redesignated par. (8) as (6).

Subsec. (span)(9). Puspan. L. 94–455, § 1951(span)(9)(A), struck out par. (9) relating to the deduction of the amount of a lien in favor of the United States.

Subsec. (span)(10), (11). Puspan. L. 94–455, § 1901(span)(32)(E), struck out par. (10) relating to deduction for distributions of divested stock, and struck out par. (11) relating to special adjustment on the disposition of antitrust stock received as a dividend.

Subsec. (c)(2)(A). Puspan. L. 94–455, § 1901(a)(77)(C), substituted “February 26, 1964” for “the date of enactment of this subsection” after “years ending before”.

Subsec. (c)(4). Puspan. L. 94–455, § 1906(span)(13)(A), struck out “or his delegate” after “Secretary”.

Subsec. (c)(5). Puspan. L. 94–455, § 1901(span)(20)(B)(iii), substituted “subsection (span)(6)” for “subsection (span)(8)” after “company income under”.

1969—Subsec. (span)(2). Puspan. L. 91–172 substituted “section 170(span)(1)(A), (B), and (D)”, “section 170(span)(2) and (d)(1)” for “section 170(span)(1)(A) and (B)” and “section 170(span)(2) and (5)”, respectively, in provisions of first sentence setting out the sections appropriate to the computation of the deduction, and in provisions of second sentence describing applicability of terms for purposes of this paragraph, substituted “contribution base” and “section 170(span)(2) and (d)(1)” for “adjusted gross income” and “the first sentence of section 170(span)(2) and (5),” respectively.

1966—Subsec. (a). Puspan. L. 89–809, § 104(h)(3)(A), substituted “in the manner provided in subsections (span), (c), and (d)” for “in the manner provided in subsection (span) and (c)” and inserted provisions governing the case of a personal holding company which is a foreign corporation, not more than 10 percent in value of the outstanding stock of which is owned (within the meaning of section 958(a)) during the last half of the taxable year by United States persons.

Subsec. (span)(9). Puspan. L. 89–719 substituted “section 6323(f)” for “section 6323(a)(1), (2), or (3)”.

Subsec. (d). Puspan. L. 89–809, § 104(h)(3)(B), added subsec. (d).

1964—Subsec. (a). Puspan. L. 88–272, § 225(i)(1), inserted reference to subsection (c).

Subsec. (span)(1), (2). Puspan. L. 88–272, §§ 207(span)(5), 209(c)(2), substituted “section 275(a)(4)” for “section 164(span)(6)” in par. (1), and inserted reference to section 170(span)(5) in par. (2).

Subsec. (c). Puspan. L. 88–272, § 225(i)(2), added subsec. (c).

1962—Subsec. (span)(1). Puspan. L. 87–834 substituted “accrued during the taxable year or deemed to be paid by a domestic corporation under section 902(a)(1) or 960(a)(1)(C) for the taxable year” for “accrued during the taxable year”.

Subsec. (span)(10), (11). Puspan. L. 87–403 added pars. (10) and (11).

1958—Subsec. (span)(2). Puspan. L. 85–866, § 32(a), substituted in first sentence “, but in computing such deduction the limitations in section 170(span)(1)(A) and (B) shall apply, and section 170(span) shall not apply” for “but with the limitations in section 170(span)(1)(A) and (B) (in lieu of the limitation in section 170(span)(2)”, and inserted in second sentence “(other than the 5-percent limitation)” and “the first sentence” after “with the adjustments” and “provided in”, respectively.

Subsec. (span)(4). Puspan. L. 85–866, § 32(span), inserted “computed without the deductions provided in part VIII (except section 248) of subchapter B”.

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Amendment by Puspan. L. 115–97 applicable to taxable years of foreign corporations beginning after Dec. 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14301(d) of Puspan. L. 115–97, set out as a note under section 78 of this title.

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(span) of Puspan. L. 113–295, set out as a note under section 1 of this title.

Effective Date of 2006 Amendment

Amendment by Puspan. L. 109–280 applicable to contributions made in taxable years beginning after Dec. 31, 2005, see section 1206(c) of Puspan. L. 109–280, set out as a note under section 170 of this title.

Effective Date of 1986 Amendment

Amendment by Puspan. L. 99–514 applicable to gains and losses realized on or after Jan. 1, 1986, see section 1225(c) of Puspan. L. 99–514, as amended, set out as a note under section 535 of this title.

Effective Date of 1983 Amendment

Amendment by Puspan. L. 97–448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Puspan. L. 97–34, to which such amendment relates, see section 109 of Puspan. L. 97–448, set out as a note under section 1 of this title.

Effective Date of 1976 Amendment

For effective date of amendment by section 1033(span)(4) of Puspan. L. 94–455, see section 1033(c) of Puspan. L. 94–455, set out as a note under section 960 of this title.

Amendment by section 1901(a)(77), (span)(20)(B), (32)(E), (33)(D) of Puspan. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Puspan. L. 94–455, set out as a note under section 2 of this title.

Amendment by section 1951(span)(9)(A) of Puspan. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1951(d) of Puspan. L. 94–455 set out as a note under section 72 of this title.

Effective Date of 1969 Amendment

Amendment by Puspan. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 201(g) of Puspan. L. 91–172, set out as a note under section 170 of this title.

Effective Date of 1966 Amendments

Amendment by Puspan. L. 89–809 applicable with respect to taxable years beginning after Dec. 31, 1966, see section 104(n) of Puspan. L. 89–809, set out as a note under section 11 of this title.

Amendment by Puspan. L. 89–719 applicable after Nov. 2, 1966, regardless of when the title or lien of the United States arose or when the lien or interest of another person was acquired, except in a case in which a lien or title derived from enforcement of a lien held by the United States has been enforced by a civil action or suit which has become final by judgment, sale, or agreement before Nov. 2, 1966, or in a case in which the amendment would impair a priority held by any person other than the United States holding a lien or interest prior to Nov. 2, 1966, operate to increase the liability of such person, or shorten the time for bringing suit with respect to transactions occurring before Nov. 2, 1966, see section 114(a)–(e) of Puspan. L. 89–719, set out as a note under section 6323 of this title.

Effective Date of 1964 Amendment

Amendment by section 207(span)(5) of Puspan. L. 88–272 applicable to taxable years beginning after Dec. 31, 1963, see section 207(c) of Puspan. L. 88–272, set out as a note under section 164 of this title.

Amendment by section 209(c)(2) of Puspan. L. 88–272 applicable to contributions paid in taxable years beginning after Dec. 31, 1963, see section 209(f)(1) of Puspan. L. 88–272, set out as a note under section 170 of this title.

Amendment by section 225(i)(1), (2) of Puspan. L. 88–272 applicable to taxable years beginning after Dec. 31, 1963, see section 225(l)(1) of Puspan. L. 88–272 set out as a note under section 316 of this title.

Effective Date of 1962 Amendments

Amendment by Puspan. L. 87–834 applicable in respect of any distribution received by a domestic corporation after Dec. 31, 1964, and in respect of any distribution received by a domestic corporation before Jan. 1, 1965, in a taxable year of such corporation beginning after Dec. 31, 1962, but only to the extent that such distribution is made out of the accumulated profits of a foreign corporation for a taxable year (of such foreign corporation) beginning after Dec. 31, 1962, see section 9(e) of Puspan. L. 87–834, set out as an Effective Date note under section 78 of this title.

Amendment by Puspan. L. 87–403 applicable only with respect to distributions made after Fespan. 2, 1962, see section 3(g) of Puspan. L. 87–403, set out as a note under section 312 of this title.

Effective Date of 1958 Amendment

Amendment by section 32(a) of Puspan. L. 85–866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) of Puspan. L. 85–866, set out as a note under section 165 of this title.

Puspan. L. 85–866, title I, § 32(c), Sept. 2, 1958, 72 Stat. 1632, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“The amendment made by subsection (span) of this section [amending this section] shall apply with respect to adjustments under section 545(span)(4) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] for taxable years beginning after December 31, 1957.”

Savings Provision

For provisions that nothing in amendment by Puspan. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(span) of Puspan. L. 101–508, set out as a note under section 45K of this title.

Puspan. L. 94–455, title XIX, § 1951(span)(9)(B), Oct. 4, 1976, 90 Stat. 1839, provided that:

“Notwithstanding subparagraph (A) [amending this section], if any amount was deducted under paragraph (9) of section 545(span) in a taxable year beginning before January 1, 1977, on account of a lien which is satisfied or released in a taxable year beginning on or after such date, the amount so deducted shall be included in income, for purposes of section 545, as provided in the second sentence of such paragraph. Shareholders of any corporation which has amounts included in its income by reason of the preceding sentence may elect to compute the income tax on dividends attributable to amounts so included as provided in the third sentence of such paragraph.”