[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: 26CFR1.547-6]

[Page 283]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.547-6  Suspension of statute of limitations and stay of collection.

    (a) Statute of limitations. If the corporation files a claim for a 
deduction for deficiency dividends under section 547(e) and paragraph 
(b)(2) of Sec. 1.547-2, the running of the statute of limitations upon 
assessment, distraint, and collection in court in respect of the 
deficiency, and all interest, additional amounts, or assessable 
penalties, shall be suspended for a period of two years after the date 
of the determination under section 547(c) and paragraph (b)(1) of Sec. 
1.547-2.
    (b) Stay of collection. If a deficiency in personal holding company 
tax is established by a determination under section 547(c) and paragraph 
(b)(1) of Sec. 1.547-2, collection by distraint or court proceeding 
(except in case of jeopardy), of the deficiency and all interest, 
additional amounts, and assessable penalties, shall be stayed for a 
period of 120 days after the date of such determination, and, to the 
extent any part of such deficiency remains after deduction for 
deficiency dividends, for an additional period until the date the claim 
is disallowed. After such claim is allowed or rejected, either in whole 
or in part, the amount of the deficiency which was not eliminated by the 
application of section 547, together with interest, additional amounts 
and assessable penalties, will be assessed and collected in the usual 
manner.