[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: 26CFR1.547-1]

[Page 280]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.547-1  General rule.

    Section 547 provides a method under which, by virtue of dividend 
distributions, a corporation may be relieved from the payment of a 
deficiency in the personal holding company tax imposed by section 541 
(or by a corresponding provision of a prior income tax law), or may be 
entitled to a credit or refund of a part or all of any such deficiency 
which has been paid. The method provided by section 547 is to allow an 
additional deduction for a dividend distribution (which meets the 
requirements of this section) in computing undistributed personal 
holding company income for the taxable year for which a deficiency in 
personal holding company tax is determined. The additional deduction for 
deficiency dividends will not, however, be allowed for the purpose of 
determining interest, additional amounts, or assessable penalties, 
computed with respect to the personal holding company tax prior to the 
allowance of the additional deduction for deficiency dividends. Such 
amounts remain payable as if section 547 had not been enacted.