[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: 26CFR1.545-1]

[Page 267-268]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.545-1  Definition.

    (a) Undistributed personal holding company income is the amount 
which is subject to the personal holding company tax imposed under 
section 541. Undistributed personal holding company income is the 
taxable income of the corporation adjusted in the manner described in 
section 545(b) and Sec. 1.545-2, and section 545(c) and Sec. 1.545-3, 
less the deduction for dividends paid. See part IV (section 561 and 
following), subchapter G, chapter 1 of the Code, and the regulations 
thereunder, relating to the dividends paid deduction.
    (b) For purposes of the imposition of the personal holding company 
tax on a foreign corporation, resident or nonresident, which files or 
causes to be filed a return, the undistributed personal holding company 
income shall be computed on the basis of the taxable income from sources 
within the United States, and such income shall be adjusted in 
accordance with the principles of section 545(b) and Sec. 1.545-2, and 
section 545(c) and Sec. 1.545-3. For purposes of the imposition of such 
tax on a foreign corporation, resident or nonresident, which files no 
return, the undistributed personal holding company income shall be 
computed on the basis of the gross income from sources within the United 
States without allowance of any deductions. For purposes of this

[[Page 268]]

paragraph, a nonresident foreign corporation will be considered to have 
filed a return for any taxable year ending before September 9, 1958, if 
the return for any such taxable year is filed on or before February 5, 
1960.

[T.D. 6949, 33 FR 5525, Apr. 9, 1968]