[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.541-1]

[Page 255]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.541-1  Imposition of tax.

    (a) Section 541 imposes a graduated tax upon corporations classified 
as personal holding companies under section 542. This tax, if 
applicable, is in addition to the tax imposed upon corporations 
generally under section 11. Unless specifically excepted under section 
542(c) the tax applies to domestic and foreign corporations and, to the 
extent provided by section 542(b), to an affiliated group of 
corporations filing a consolidated return. Corporations classified as 
personal holding companies are exempt brom the accumulated earnings tax 
imposed under section 531 but are not exempt from other income taxes 
imposed upon corporations, generally, under any other provisions of the 
Code. Unlike the accumulated earnings tax imposed under section 531, the 
personal holding company tax imposed by section 541 applies to all 
personal holding companies as defined in section 542, whether or not 
they were formed or availed of to avoid income tax upon shareholders. 
See section 6501(f) and Sec. 301.6501(f)-1 of this chapter (Regulations 
on Procedure and Administration) with respect to the period of 
limitation on assessment of personal holding company tax upon failure to 
file a schedule of personal holding company income.
    (b) A foreign corporation, whether resident or nonresident, which is 
classified as a personal holding company is subject to the tax imposed 
under section 541 with respect to its income from sources within the 
United States, even though such income is not fixed or determinable 
annual or periodical income specified in section 881. A foreign 
corporation is not classified as a personal holding company subject to 
tax under section 541 if it is a foreign personal holding company as 
defined in section 552 or if it meets the requirements of the exception 
provided in section 542(c)(10).