Source: https://www.law.cornell.edu/uscode/text/26/1551
Timestamp: 2016-07-29 16:01:54
Document Index: 745720193

Matched Legal Cases: ['§ 1551', '§ 1551', '§ 1551', '§\u202f1551', '§\u202f205', '§\u202f235', '§\u202f304', '§\u202f1901', '§\u202f301', '§\u202f232', '§\u202f1899', '§\u202f221', '§\u202f221', '§\u202f221', '§\u202f221', '§\u202f301', '§\u202f301', '§\u202f1901', '§\u202f235']

26 U.S. Code § 1551 - Disallowance of the benefits of the graduated corporate rates and accumulated earnings credit | US Law | LII / Legal Information Institute
U.S. Code › Title 26 › Subtitle A › Chapter 6 › Subchapter B › Part I › § 1551 26 U.S. Code § 1551 - Disallowance of the benefits of the graduated corporate rates and accumulated earnings credit
§ 1551.
any corporation transfers, directly or indirectly, all or part of its property (other than money) to a transferee corporation, or
five or fewer individuals who are in control of a corporation transfer, directly or indirectly, property (other than money) to a transferee corporation,
(b) ControlFor purposes of subsection (a), the term “control” means—
With respect to a transferee corporation described in subsection (a)(1), the ownership by the transferor corporation, its shareholders, or both, of stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of the stock; or
(2) With respect to each corporation described in subsection (a)(2), the ownership by the five or fewer individuals described in such subsection of stock possessing—
(c) Authority of the Secretary under this section
(Aug. 16, 1954, ch. 736, 68A Stat. 371; Pub. L. 85–866, title II, § 205(a), Sept. 2, 1958, 72 Stat. 1680; Pub. L. 88–272, title II, § 235(b), Feb. 26, 1964, 78 Stat. 125; Pub. L. 94–12, title III, § 304(b), Mar. 29, 1975, 89 Stat. 45; Pub. L. 94–455, title XIX, §§ 1901(a)(158), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1790, 1834; Pub. L. 95–600, title III, § 301(b)(18)(A), (B), Nov. 6, 1978, 92 Stat. 2823; Pub. L. 97–34, title II, § 232(b)(2), Aug. 13, 1981, 95 Stat. 250; Pub. L. 99–514, title XVIII, § 1899A(36), Oct. 22, 1986, 100 Stat. 2960; Pub. L. 113–295, div. A, title II, § 221(a)(94), Dec. 19, 2014, 128 Stat. 4051.)
2014—Subsec. (a). Pub. L. 113–295, § 221(a)(94)(A), redesignated pars. (2) and (3) as (1) and (2), respectively, struck out “after June 12, 1963,” after “indirectly,” in pars. (1) and (2), as so redesignated, and struck out former par. (1) which read as follows: “any corporation transfers, on or after January 1, 1951, and on or before June 12, 1963, all or part of its property (other than money) to a transferee corporation,”.
Subsec. (b)(1). Pub. L. 113–295, § 221(a)(94)(B)(i), struck out “or (2)” after “(a)(1)”.
Subsec. (b)(2). Pub. L. 113–295, § 221(a)(94)(B)(ii), substituted “(a)(2)” for “(a)(3)” in introductory provisions.
1986—Subsec. (c). Pub. L. 99–514 substituted “section 269(c)” for “section 269(b)”.
1981—Subsec. (a). Pub. L. 97–34 struck out “$150,000” before “accumulated earnings credit”.
1978—Pub. L. 95–600, § 301(b)(18)(B), substituted “the benefits of the graduated corporate rates” for “surtax exemption” in section catchline.
Subsec. (a). Pub. L. 95–600, § 301(b)(18)(A), in provisions following par. (3) substituted “disallow the benefits of the rates contained in section 11(b) which are lower than the highest rate specified in such section” for “disallow the surtax exemption (as defined in section 11(d))” and “such benefits or” for “such exemption or”.
1976—Subsec. (a). Pub. L. 94–455 §§ 1901(a)(158), 1906(b)(13)(A), substituted “subsection (c)” for “subsection (d)” after “determined under” and struck out “or his delegate” after “Secretary”.
1975—Subsec. (a). Pub. L. 94–12 substituted “$150,000” for “$100,000”.
1964—Pub. L. 88–272 amended section generally, and among other changes, designated provisions as subsecs. (a) to (c), included among corporations who are disallowed surtax exemption and accumulated earnings credit, corporations, and five or fewer individuals in charge of a corporation who, directly or indirectly, transfer property in contravention of subsec. (a) after June 12, 1963, substituted provisions permitting the Secretary or his delegate to disallow the exemption or the earnings credit, for provisions which disallowed the exemption and the credit except as otherwise determined by the Secretary of his delegate, provisions that for purposes of determining ownership of stock, section 1563(e) shall apply, for provisions which determined ownership in accordance with section 544, and defined control, with respect to corporations described in subsec. (a)(3), to include the additional test as stated in subsec. (b)(2)(B).
1958—Pub. L. 85–866 substituted “$100,000” for “$60,000”.
Amendment by section 1901(a)(158) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Pub. L. 88–272, title II, § 235(d), Feb. 26, 1964, 78 Stat. 127, provided that: “The amendments made by subsections (a) and (c) [enacting sections 1561 to 1563 of this title and amending sections 269, 441, and 802 of this title] shall apply with respect to taxable years ending after December 31, 1963. The amendment made by subsection (b) [amending this section] shall apply with respect to transfers made after June 12, 1963.”
Amendment by Pub. L. 85–866 applicable with respect to taxable years beginning after Dec. 31, 1957, see section 205(b) of Pub. L. 85–866, set out as a note under section 535 of this title.