View all text of Part II [§ 541 - § 547]
§ 547. Deduction for deficiency dividends
(a) General rule
(b) Rules for application of section
(1) Allowance of deduction
(2) Credit or refund
(c) Determination
For purposes of this section, the term “determination” means—
(1) a decision by the Tax Court or a judgment, decree, or other order by any court of competent jurisdiction, which has become final;
(2) a closing agreement made under section 7121; or
(3) under regulations prescribed by the Secretary, an agreement signed by the Secretary and by, or on behalf of, the taxpayer relating to the liability of such taxpayer for personal holding company tax.
(d) Deficiency dividends
(1) Definition
(2) Effect on dividends paid deduction
(A) For taxable year in which paid
(B) For prior taxable year
(e) Claim required
(f) Suspension of statute of limitations and stay of collection
(1) Suspension of running of statute
(2) Stay of collection
In the case of any deficiency with respect to the tax imposed by section 541 established by a determination under this section—
(A) the collection of the deficiency and all interest, additional amounts, and assessable penalties shall, except in cases of jeopardy, be stayed until the expiration of 120 days after the date of the determination, and
(B) if claim for deficiency dividend deduction is filed under subsection (e), the collection of such part of the deficiency as is not reduced by the deduction for deficiency dividends provided in subsection (a) shall be stayed until the date the claim is disallowed (in whole or in part) and if disallowed in part collection shall be made only with respect to the part disallowed.
No distraint or proceeding in court shall be begun for the collection of an amount the collection of which is stayed under subparagraph (A) or (B) during the period for which the collection of such amount is stayed.
(g) Deduction denied in case of fraud, etc.
(Aug. 16, 1954, ch. 736, 68A Stat. 191; Pub. L. 94–455, title XIX, §§ 1901(a)(78), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1777, 1834.)