[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: 26CFR1.542-1] [Page 255] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) PART 1_INCOME TAXES--Table of Contents Sec. 1.542-1 General rule. A personal holding company is any corporation (other than one specifically excepted under section 542(c)) which, for the taxable year, meets: (a) The gross income requirement specified in section 542(a)(1) and Sec. 1.542-2, and (b) The stock ownership requirement specified in section 542(a)(2) and Sec. 1.542-3. Both requirements must be satisfied with respect to each taxable year.