Sec. 28. (d) (1) Unless it files (in accordance with regulations prescribed by the Commissioner with the approval of the Secretary) with its return for such year, or within one year after the date of enactment of the Revenue Act of 1942, in the case of a corporation which is a personal holding company for the taxable year with respect to which it claims the benefits of this section, signed consents made under oath by persons who were shareholders, on the last day of the taxable year of the corporation, of any class of consent stock; and Sec. 28. (d) (2) Unless in each such consent the shareholder agrees that he will include as a taxable dividend, in his return for the taxable year in which or with which the taxable year of the corporation ends, a specific amount; and Sec. 28. (d) (3) Unless the consents filed are made by such of the shareholders and the amount specified in each consent is such, that the consent distribution would not have been a preferential distribution (A) If there was no partial distribution during the last month of the taxable year of the corporation, or (B) If there was such a partial distribution, then when considered in connection with such partial distribution; and Sec. 28. (d) (1) Unless it files (in accordance with regulations prescribed by the Commissioner with the approval of the Secretary) with its return for such year, or within one year after the date of enactment of the Revenue Act of 1942, in the case of a corporation which is a personal holding company for the taxable year with respect to which it claims the benefits of this section, signed consents made under oath by persons who were shareholders, on the last day of the taxable year of the corporation, of any class of consent stock; and Sec. 28. (d) (2) Unless in each such consent the shareholder agrees that he will include as a taxable dividend, in his return for the taxable year in which or with which the taxable year of the corporation ends, a specific amount; and Sec. 28. (d) (3) Unless the consents filed are made by such of the shareholders and the amount specified in each consent is such, that the consent distribution would not have been a preferential distribution (A) If there was no partial distribution during the last month of the taxable year of the corporation, or (B) If there was such a partial distribution, then when considered in connection with such partial distribution; and L Taxable Years Sec. 28. (d) (4) Unless in each consent made by a shareholder who is taxable with respect to a dividend only if received from sources within the United States, such shareholder agrees that the specific amount stated in the consent shall be considered as a dividend received by him from sources within the United States; and Sec. 28. (d) (5) Unless each consent filed is accompanied by cash, or such other medium of payment as the Commissioner may by regulations authorize, in an amount equal to the amount that would be required by section 143 (b) or 144 to be deducted and withheld by the corporation if the amount specified in the consent had been, on the last day of the taxable year of the corporation, paid to the shareholder in cash as a dividend. The amount accompanying the consent shall be credited against the tax imposed by section 211 (a) or 231 (a) upon the shareholder. Sec. 28. (e) Consent distribu Sec. 28. (e) Consent distribution as part of entire distribu- tion as part of entire distribution. If during the last month of tion. Sec. 28. (e) Consent distribution as part of entire distribution. Same as 1944. Sec. 28. (d) (5) Unless each consent filed is accompanied by cash, or such other medium of payment as the Commissioner may by regulations authorize, in an amount equal to the amount that would be required by section 143 (b) or 144 to be deducted and withheld by the corporation if the amount specified in the consent had been, on the last day of the taxable year of the corporation, paid to the shareholder in cash as a dividend. The amount accompanying the consent shall be credited against the tax imposed by section 211 (a) or 231 (a) upon the shareholder. Taxable Years Beginning before 1944 Sec. 28. (e) Consent distribution as part of entire distribution. Same as 1944. Sec. 28. (f) Taxability amounts specified in consents. Same as 1944. Section originated 1938 as Sec. 28 (e), R. A. of 1938. For any amendments prior to 1944, see Eighth Edition, p. 83, Sec. 28. (e) Consent distribuSec. 28. (e) Consent distribution as part of entire distribu- tion as part of entire distribution.-If during the last month of tion. the taxable year with respect to which shareholders' consents are filed by the corporation under subsection (d) there is made a partial distribution, then, for the purposes of this chapter, such partial distribution and the consent distribution and the consent distribution shall be considered as having been made in connection with each other and each shall be considered together with the other as one entire distribution. Sec. 28. (f) Taxability of amounts specified in consents.The total amount specified in a consent filed under subsection (d) shall be included as a taxable dividend in the gross income of the shareholder making such consent, and, if the shareholder is taxable with respect to a dividend only if received from sources within the United States, shall be included in the computation of his tax as a dividend received from sources within the United States; regardless of Sec. 28. (f) Taxability amounts specified in consents. Section originated 1938 as Eighth Edition, p. 83, of Sec. 28. (h) Basis of stock in hands of shareholders. The amount specified in a consent made under subsection (d) shall, for the purpose of adjusting the basis of the consent stock with respect to which the consent was given, be treated as having been reinvested by the shareholder as a contribution to the capital of the corporation; but only in an amount which bears the same ratio to the consent dividends credit of the corporation as the amount of such shareholder's consent stock bears to the total amount of consent stock with respect to which consents are made. Sec. 28. (h) Basis of stock in hands of shareholders. Same as 1944. Sec. 28. (i) Effect on capital Sec. 28. (i) Effect on capital account of corporation. amount of the consent dividends credit allowed under subsection (c) shall be considered as paid in surplus or as a contribution to the capital of the corporation, and the accumulated earnings and profits as of the close of the taxable year shall be correspondingly reduced. Same as 1944. Sec. 28. (j) Amounts not in Sec. 28. (j) Amounts not included in shareholder's return.- cluded in shareholder's return. The failure of a shareholder of consent stock to include in his Same as 1944. Sec. 28. (h) Basis of stock in hands of shareholders. Same as 1944. Sec. 28. (i) Effect on capital account of corporation. Same as 1944. Sec. 28. (3) Amounts not included in shareholder's return. Same as 1944. |