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)]).
(c) Repurchase. For purposes of this section—
(1) In general. The term “repurchase” means—
(A) a redemption within the meaning of section 317(b) [26 USCS § 317(b)] with regard to the stock of a covered corporation, and
(B) any transaction determined by the Secretary to be economically similar to a transaction described in subparagraph (A).
(2) Treatment of purchases by specified affiliates.
(A) In general. The acquisition of stock of a covered corporation by a specified affiliate of such covered corporation, from a person who is not the covered ...