[Code of Federal Regulations]
[Title 26, Volume 9]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.852-6]

[Page 25]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.852-6  Records to be kept for purpose of determining whether a 

corporation claiming to be a regulated investment company is a personal 
holding company.

    (a) Every regulated investment company shall maintain in the 
internal revenue district in which it is required to file its income tax 
return permanent records showing the information relative to the actual 
owners of its stock contained in the written statements required by this 
section to be demanded from the shareholders. The actual owner of stock 
includes the person who is required to include in gross income in his 
return the dividends received on the stock. Such records shall be kept 
at all times available for inspection by any internal revenue officer or 
employee, and shall be retained so long as the contents thereof may 
become material in the administration of any internal revenue law.
    (b) For the purpose of determining whether a domestic corporation 
claiming to be a regulated investment company is a personal holding 
company as defined in section 542, the permanent records of the company 
shall show the maximum number of shares of the corporation (including 
the number and face value of securities convertible into stock of the 
corporation) to be considered as actually or constructively owned by 
each of the actual owners of any of its stock at any time during the 
last half of the corporation's taxable year, as provided in section 544.
    (c) Statements setting forth the information (required by paragraph 
(b) of this section) shall be demanded not later than 30 days after the 
close of the corporation's taxable year as follows:
    (1) In the case of a corporation having 2,000 or more record owners 
of its stock on any dividend record date, from each record holder of 5 
percent or more of its stock; or
    (2) In the case of a corporation having less than 2,000 and more 
than 200 record owners of its stock, on any dividend record date, from 
each record holder of 1 percent or more of its stock; or
    (3) In the case of a corporation having 200 or less record owners of 
its stock, on any dividend record date, from each record holder of one-
half of 1 percent or more of its stock.

When making demand for the written statements required of each 
shareholder by this paragraph, the company shall inform each of the 
shareholders of his duty to submit as a part of his income tax return 
the statements which are required by Sec. 1.852-7 if he fails or 
refuses to comply with such demand. A list of the persons failing or 
refusing to comply in whole or in part with a company's demand shall be 
maintained as a part of its record required by this section. A company 
which fails to keep such records to show the actual ownership of its 
outstanding stock as are required by this section shall be taxable as an 
ordinary corporation and not as a regulated investment company.