
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 101(c)(5)]
[CITE: 26USC541]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
   Subchapter G--Corporations Used to Avoid Income Tax on Shareholders
 
                   PART II--PERSONAL HOLDING COMPANIES
 
Sec. 541. Imposition of personal holding company tax

    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 39.6 percent of the undistributed personal holding company income.

(Aug. 16, 1954, ch. 736, 68A Stat. 182; Pub. L. 88-272, title II, 
Sec. 225(a), Feb. 26, 1964, 78 Stat. 79; Pub. L. 97-34, title I, 
Sec. 101(d)(2), Aug. 13, 1981, 95 Stat. 184; Pub. L. 99-514, title I, 
Sec. 104(b)(8), Oct. 22, 1986, 100 Stat. 2105; Pub. L. 101-508, title 
XI, Sec. 11802(f)(1), Nov. 5, 1990, 104 Stat. 1388-530; Pub. L. 103-66, 
title XIII, Secs. 13201(b)(2), 13202(b), Aug. 10, 1993, 107 Stat. 459, 
461.)


                               Amendments

    1993--Pub. L. 103-66, Sec. 13202(b), substituted ``39.6 percent'' 
for ``36 percent''.
    Pub. L. 103-66, Sec. 13201(b)(2), substituted ``36 percent'' for 
``28 percent''.
    1990--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 substituted ``28 percent (38.5 percent in the 
case of taxable years beginning in 1987)'' for ``50 percent''.
    1981--Pub. L. 97-34 substituted ``50 percent'' for ``70 percent''.
    1964--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.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-66 applicable to taxable years beginning 
after Dec. 31, 1992, see sections 13201(c) and 13202(c) of Pub. L. 103-
66, set out as notes under section 1 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to taxable years beginning 
after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out as a 
note under section 1 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable to taxable years beginning 
after Dec. 31, 1981, see section 101(f)(1) of Pub. L. 97-34, set out as 
a note under section 1 of this title.


                    Effective Date of 1964 Amendment

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


                            Savings Provision

    For provisions that nothing in amendment by Pub. 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(b) of Pub. L. 101-508, set out as a note under section 29 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 26, 30A, 111, 535, 542, 545, 
546, 547, 556, 563, 882, 936, 992, 6683 of this title.
