§1561 — Limitation on accumulated earnings credit in the case of certain controlled corporations
14 cases·7 followed·7 cited—50% support
Statute Text — 26 U.S.C. §1561
The component members of a controlled group of corporations on a December 31 shall, for their taxable years which include such December 31, be limited for purposes of this subtitle to one $250,000 ($150,000 if any component member is a corporation described in section 535(c)(2)(B)) amount for purposes of computing the accumulated earnings credit under section 535(c)(2) and (3). Such amount shall be divided equally among the component members of such group on such December 31 unless the Secretary prescribes regulations permitting an unequal allocation of such amount.
If a corporation has a short taxable year which does not include a December 31 and is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle, the amount to be used in computing the accumulated earnings credit under section 535(c)(2) and (3) of such corporation for such taxable year shall be the amount specified in subsection (a) with respect to such group, divided by the number of corporations which are component members of such group on the last day of such taxable year. For purposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.1561-0 Table of contents
- Treas. Reg. §Treas. Reg. §1.1561-0(a) Filing of form.
- Treas. Reg. §Treas. Reg. §1.1561-0(b) No apportionment plan in effect.
- Treas. Reg. §Treas. Reg. §1.1561-0(c) Apportionment plan in effect.
- Treas. Reg. §Treas. Reg. §1.1561-0(d) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §1.1561-0(e) Short taxable year not including a December 31st date.
- Treas. Reg. §Treas. Reg. §1.1561-0(f) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §1.1561-1 General rules regarding certain tax benefits available to the component members of a controlled group of corporations
- Treas. Reg. §Treas. Reg. §1.1561-1(a) In general—(1)—Limitation.
- Treas. Reg. §Treas. Reg. §1.1561-1(b) Special rules—(1) S Corporation.
- Treas. Reg. §Treas. Reg. §1.1561-1(c) Tax avoidance.
- Treas. Reg. §Treas. Reg. §1.1561-1(d) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §1.1561-2 Special rules for allocating reductions of certain section 1561(a) tax-benefit items
- Treas. Reg. §Treas. Reg. §1.1561-2(a) Additional tax—(1) Calculation—(i) In general.
- Treas. Reg. §Treas. Reg. §1.1561-2(b) Reduction to the amount exempted from the alternative minimum tax—(1) Calculation.
- Treas. Reg. §Treas. Reg. §1.1561-2(c) Accumulated earnings credit.
- Treas. Reg. §Treas. Reg. §1.1561-2(d) §1.1561-2(d)
- Treas. Reg. §Treas. Reg. §1.1561-2(e) Short taxable years not including a December 31st date—(1) General rule.
- Treas. Reg. §Treas. Reg. §1.1561-2(i) §1.1561-2(i)
- Treas. Reg. §Treas. Reg. §1.1561-3 Allocation of the section 1561(a) tax items
- Treas. Reg. §Treas. Reg. §1.1561-3(a) Filing of form—(1) In general.
- Treas. Reg. §Treas. Reg. §1.1561-3(b) No apportionment plan in effect.
- Treas. Reg. §Treas. Reg. §1.1561-3(c) Apportionment plan in effect—(1) Adoption of plan.
- Treas. Reg. §Treas. Reg. §1.1561-3(d) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §1.1561-3(i) §1.1561-3(i)
14 Citing Cases
For purposes ofthis section, the surtax exemption of the group for a consolidatedreturn year is $25,000, or ifa lesser amount is allowed under section 1561, such lesser amount.
For purposes of this section, the surtax exemption of the group for a consolidated return year is $25,000, or if a lesser amount is allowed under section 1561, such lesser amount.
The income tax brackets, environmental tax exemptions, and any other tax benefits described in section 1561, will be allocated equally among the members of the controlled group as specified in section 1561 for years ending June 30, 1989, 1990, 1991, and 1992.