TITLE 26. INTERNAL REVENUE CODE § 4501. Repurchase of corporate stock., 26 USCS § 4501
Summary
(a) General rule. There is hereby imposed on each covered corporation a tax equal to 1 percent of the fair market value of any stock of the corporation which is repurchased by such corporation during the taxable year.
(b) Covered corporation. For purposes of this section, the term “covered corporation” means any domestic corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1) [26 USCS § 7704(b)(1)]).