§ 1.541-1 Imposition of tax.
Amended 1964, 1981, 1986, 1990, 1993, 2001, 2003, 2013
- 2013 Pub. L. 112-240 Pub. L. 112–240 substituted “20 percent” for “15 percent”.
- 2003 Pub. L. 108-27 Pub. L. 108–27 substituted “equal to 15 percent of the undistributed personal holding company income.” for “equal to the product of the highest rate of tax under section 1(c) and the undistributed personal holding company income.”
- 2001 Pub. L. 107-16 Pub. L. 107–16 substituted “equal to the product of the highest rate of tax under section 1(c) and the undistributed personal holding company income.” for “equal to 39.6 percent of the undistributed personal holding company income.”
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13202(b), substituted “39.6 percent” for “36 percent”.
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13201(b)(2), substituted “36 percent” for “28 percent”.
- 1990 Pub. L. 101-508 Pub. L. 101–508 struck out “(38.5 percent in the case of taxable years beginning in 1987)” after “28 percent”.
- 1986 Pub. L. 99-514 Pub. L. 99–514 substituted “28 percent (38.5 percent in the case of taxable years beginning in 1987)” for “50 percent”.
- 1981 Pub. L. 97-34 Pub. L. 97–34 substituted “50 percent” for “70 percent”.
- 1964 Pub. L. 88-272 Pub. L. 88–272 reduced the tax from 75 percent of undistributed income not in excess of $2,000, and 85 percent when in excess of $2,000, to 70 percent.
Cases: Pleasanton Gravel Co. v. Commissioner, 64 T.C. 510 (1975); Montgomery Coca-Cola Bottling Co. v. United States, 615 F.2d 1318 (Ct. Cl. 1980)
In addition to other taxes imposed by this chapter, there is hereby imposed for each taxable year on the undistributed personal holding company income (as defined in section 545) of every personal holding company (as defined in section 542) a personal holding company tax equal to 20 percent of the undistributed personal holding company income.