§551 — [§§551 to 558. Repealed. Pub. L. 108–357, title IV, §413(a)(1), Oct. 22, 2004, 118 Stat. 1506 ] Section 551, acts Aug. 16, 1954, ch. 736, 68A Stat. 193 ; Pub. L. 88–272, title II, §225(f)(4), Feb. 26, 1964, 78 Stat. 88 ; Pub. L. 94–455, title XIX, §1901(a)(79), (b)(1)(F)(i), (12)(A), Oct. 4, 1976, 90 Stat. 1777 , 1790, 1795; Pub. L. 98–369, div. A, title I, §132(b), July 18, 1984, 98 Stat. 666 ; Pub. L. 99–514, title XII, §1235(e), title XVIII, §1810(h)(2), Oct. 22, 1986, 100 Stat. 2575 , 2829; Pub. L. 100–647, title I, §1012(bb)(1)(A), (B), Nov. 10, 1988, 102 Stat. 3533 ; Pub. L. 105–34, title XI, §1122(d)(2), Aug. 5, 1997, 111 Stat. 977 , provided for taxation of foreign personal holding company income to United States shareholders.

53 cases·4 followed·6 distinguished·2 criticized·3 overruled·38 cited—8% support

Statute Text — 26 U.S.C. §551

Statute text not available for this section.

Treasury Regulations

Treas. Reg. §Treas. Reg. §1.551-1 General rule
Treas. Reg. §Treas. Reg. §1.551-2 Amount included in gross income
Treas. Reg. §Treas. Reg. §1.551-2(a) The undistributed foreign personal holding company income is included only in the gross income of the United States shareholders who were shareholders in the company on the last day of its taxable year on which a United States group (as defined in section 552(a)(2)) existed with respect to the company.
Treas. Reg. §Treas. Reg. §1.551-2(b) The United States shareholders must include in their gross income their distributive shares of that proportion of the undistributed foreign personal holding company income for the taxable year of the company which is equal in ratio to that which the portion of the taxable year up to and including the last day on which the United States group with respect to the company existed bears to the entire taxable year.
Treas. Reg. §Treas. Reg. §1.551-2(c) The amount which each United States shareholder must return is that amount which he would have received as a dividend if the above-specified portion of the undistributed foreign personal holding company income had in fact been distributed by the foreign personal holding company as a dividend on the last day of its taxable year on which the required United States group existed.
Treas. Reg. §Treas. Reg. §1.551-2(d) The assumed distribution of the required portion of the undistributed foreign personal holding company income must be returned as dividend income by the United States shareholders for their respective taxable years in which or with which the taxable year of the foreign personal holding company ends.
Treas. Reg. §Treas. Reg. §1.551-2(e) For the treatment of gain on the sale of certain stock, see section 306(f) and paragraph (h) of § 1.

53 Citing Cases

DIST. Osvaldo & Ana M. Rodriguez, Petitioner 137 T.C. No. 14 · 2011

Unlike section 951, various other Code sections expressly characterize certain types o items as distributions or dividends. See, e.g., sec. S4A(g) (as,enacted in 2008, providing that allocation to S corporation·shareholders of a tax credit. with respect to certain bonda "shall be treated as a distribution"); secs. 302(a) 304(a), 305(c) (all providing identically that certain redemptions "shall be treated as a . distribution"); sec. 551(b) 'providing that certaïn undistributed foreign personal ho

The Diversified Group Incorporated, Petitioner 166 T.C. No. 2 · 2026 · T.C.

§ 551 for the definition of “agency action”). The February 11, 2014, letters to Mr. Haber and Diversified reflect proposed reasoning and potential future action, not “final action” taken by the Commissioner. Cf. Comput. Scis. Corp. v. Commissioner, No. 4823-21, 165 T.C., slip op. at 15–19 (Oct. 6, 2025) (discussing the Administrative Procedure Act

Brad L. Barnhill, Petitioner T.C. Memo. 2002-116 · 2002

do not apply to * * * [section 6330 hearings]”. Sec. 301.6330-1(d), A-D6, Proced. & Admin. Regs. This regulation also provides that a face-to-face interview is not required at a section 6330 hearing and that a taxpayer does not have the right to subpoena and examine witnesses. Sec. 301.6330-1(d), Proced. & Admin. Regs. Accordingl

Ian D. Smith, Petitioner T.C. Memo. 2024-65 · 2024

Therefore, summary judgment serves as a mechanism for deciding, as a matter of law, whether the agency action is supported by the administrative record and is not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Van Bemmelen v. Commissioner, 155 T.C. at 79. Petitioner contends that responde

Paul C. Wondries & Patricia Wondries, Petitioners T.C. Memo. 2023-5 · 2023

A deficiency case in the Tax Court is not a review of an agency action pursuant to the APA. See Ax v. Commissioner, 146 T.C. 153 (2016). Petitioners contend that an audit for 2004 determined that they intended to make a profit from their ranch. A taxpayer’s liability is based on the merits and not on any previous record developed at the a

3M Company and Subsidiaries, Petitioner 160 T.C. No. 3 · 2023

§§ 551–559, 701–706, in promulgating Treasury Regulation § 1.482-1(h)(2) (2006). The answer to this question is relevant because “deference [under Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984),] is not warranted where the regulation is ‘procedurally defective’—that is, where the agency errs by failing to follo

Thomas Shands, Petitioner 160 T.C. No. 5 · 2023

§ 551(4) (1994), which defined a “rule” as “the whole or a part of an agency statement of general or particular applicability and future effect.” Bergerco, 129 F.3d at 192 n.2 (emphasis added) (citing Bowen, 488 U.S. at 216 (Scalia, J., concurring)). 11 OFAC’s use of the October 18 criteria, irrespective of the agency’s motive in deferring action

Vista Hill Investments, LLC, Bobby A. Branch, Tax Matters Partner, Petitioner 159 T.C. No. 5 · 2022

On January 7, 2022, petitioner filed a written objection to respondent’s third Motions for Partial Summary Judgment. Petitioner’s principal argument is that respondent cannot assess penalties under section 6662A as a matter of law. On February 11, 2022, respondent filed a written objection to petitioner’s Cross-Motions for Summa

Montgomery-Alabama River, LLC, Parkway South, LLC, Tax Matters Partner, Petitioner T.C. Memo. 2021-62 · 2021

551(1)(B)), with McQuiston v. Commissioner, 78 T.C. 807, 810-812 (1982) (holding that this Court is not a “court of the United States” for purposes of 28 U.S.C. sec. 451), aff’d, 711 F.2d 1064 (9th Cir. 1983). In 1988 we certified a question to the Supreme Court of Montana. See Grant Creek Water Works, Ltd. v. Commissioner, 91 T.C. 322 (1988).

Stanley Battat & Zmira Battat, Petitioners · 2017

551 (2012) provides in pertinent part as follows: "For the purpose ofthis subchapter--(1) 'agency' means each authority ofthe Government ofthe United States, whether or not it is within or subject to review by another agency, but does not include--(A) the Congress, (B) the courts ofthe United States". -28- torts committed within the scope oft

Sam E. Scott, Petitioner T.C. Memo. 2007-91 · 2007

551-557 (1994) should apply to the sec . 6320/6330 hearing . Respondent has stated in procedural regulations that a hearing under sections 6320 and 6330 is not under the formal hearing provisions of the Administrative Procedure Act . See sec . 301 .6320-1(d)(2), Q&A-D6, Proced . & Admin . Regs . ; sec. 301 .6330-1(d)(2), Q&A-D6, Proced . & Adm

Estate of Whitlock v. Commissioner 59 T.C. 490 · 1972

Tyler v. U.S. Dep't of Educ. Rehab. Servs. Admin. 904 F.3d 1167 · Cir.

IN RE: SANDRA TILLMAN V. LAWRENCE WARFIELD · Cir.

Rodriguez v. Commissioner 137 T.C. 174 · 2011

Mariani Frozen Foods, Inc. v. Commissioner 81 T.C. 448 · 1983

Gray v. Commissioner 71 T.C. 719 · 1979

Gutierrez v. Commissioner 53 T.C. 394 · 1969

Securities & Exchange Commission v. Credit Bancorp, Ltd. 297 F.3d 127 · Cir.

Securities And Exchange Commission v. Credit Bancorp, Ltd. 297 F.3d 127 · Cir.

Foil v. Commissioner 92 T.C. 376 · 1989

Rumsey Land Company v. Resource Land Holdings 944 F.3d 1259 · Cir.

Alec J. Megibow v. Clerk of the United States Tax Court, Docket No. 04-6204 Cv 432 F.3d 387 · Cir.

Joseph D. & Wanda S. Lunsford, Petitioner 117 T.C. No. 16 · 2001

Lunsford v. Commissioner 117 T.C. 159 · 2001

Stamos v. Commissioner 95 T.C. 624 · 1990

Davis v. Commissioner 88 T.C. 1460 · 1987

Furstenberg v. Commissioner 83 T.C. 755 · 1984

Wing v. Commissioner 81 T.C. 17 · 1983

Estate of Petschek v. Commissioner 81 T.C. 260 · 1983

Riland v. Commissioner 79 T.C. 185 · 1982

Wendland v. Commissioner 79 T.C. 355 · 1982

McQuiston v. Commissioner 78 T.C. 807 · 1982

Alfieri v. Commissioner 60 T.C. 296 · 1973

Nappi v. Commissioner 58 T.C. 282 · 1972

Wissing v. Commissioner 54 T.C. 1428 · 1970

TX Medical Association v. HHS · Cir.

NRDC v. US FDA · Cir.

Mitchell Energy & Development Corp. v. Fain 311 F.3d 685 · Cir.

Schmitt v. City of Detroit 395 F.3d 327 · Cir.

State of Texas v. USA · Cir.

Willy v. Administrative Review Board 423 F.3d 483 · Cir.

Duquesne Light Holdings Inc v. Commissioner of Internal Reven 861 F.3d 396 · Cir.

United States v. Clayton · Cir.

Mann Constr., Inc. v. United States 27 F.4th 1138 · Cir.

Rost v. United States 44 F.4th 294 · Cir.

Schmitt v. City of Detroit 395 F.3d 327 · Cir.

The First Marblehead Corp. v. Gregory House 473 F.3d 1 · Cir.

Windsor v. United States 699 F.3d 169 · Cir.

Wilson v. Commissioner 705 F.3d 980 · Cir.

Treasurer of New Jersey v. United States Department of the Treasury 684 F.3d 382 · Cir.

Natural Resources Defense Council, Inc. v. United States Food & Drug Administration 760 F.3d 151 · Cir.

Rost v. United States · Cir.

53 Citing Cases

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