D is corrent. The personal holding company (PHC) tax is self-assessed by a corporation filing a Schedule PH along with its regular Form 1120 tax return. The PHC tax may be imposed if more than 50% of a corporation’s stock is owned by 5 or fewer individuals, and 60% or more of the corporation’s adjusted ordinary gross income is PHC income. The penalty tax is assessed against undistributed PHC income, which may be reduced by dividend distributions.
A is incorrect. All statements are applicable to the personal holding company tax.
B is incorrect. All statements are applicable to the personal holding company tax.
A is incorrect. All statements are applicable to the personal holding company tax.
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