Internal Revenue Code · 26 U.S.C.
§ 5881. Greenmail
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 5881
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- December 22, 1987 by Pub. L. 100–203
- Last amended
- November 10, 1988 by Pub. L. 100–647
- Amendments
- 1 dated changes in the source credit
- Length
- 5 subsections · 364 words · about 2 min to read
- Defines
- 2 terms
- Cross-references
- cites 2; cited by 0 Code sections and 11 other regulations
- Regulations
- 1 issued under this section
There is hereby imposed on any person who receives greenmail a tax equal to 50 percent of gain or other income of such person by reason of such receipt.
The term “public tender offer” means any offer to purchase or otherwise acquire stock or assets in a corporation if such offer was or would be required to be filed or registered with any Federal or State agency regulating securities.
A person is related to another person if the relationship between such persons would result in the disallowance of losses under section 267 or 707(b).
For purposes of the deficiency procedures of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.
(Added Pub. L. 100–203, title X, § 10228(a), Dec. 22, 1987, 101 Stat. 1330–417; amended Pub. L. 100–647, title II, § 2004(o)(1)(A), (B)(i), (C), (2), Nov. 10, 1988, 102 Stat. 3608.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 5881
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
- § 1223 Holding period of property
- § 267 Losses, expenses, and interest with respect to transactions between related taxpayers
Cited in 11 regulations not issued under it
- § 156.6011-1 General requirement of return, statement, or list.
- § 156.6060-1 Reporting requirements for tax return preparers.
- § 156.6071-1 Time for filing returns relating to greenmail.
- § 156.6107-1 Tax return preparer must furnish copy of return and claim for refund to taxpayer and must retain a copy or record.
- § 156.6109-1 Tax return preparers furnishing identifying numbers for returns or claims for refund.
- § 156.6694-1 Section 6694 penalties applicable to tax return preparer.
- § 156.6694-2 Penalties for understatement due to an unreasonable position.
- § 156.6694-3 Penalty for understatement due to willful, reckless, or intentional conduct.
- § 156.6694-4 Extension of period of collection when tax return preparer pays 15 percent of a penalty for understatement of taxpayer's liability and certain other procedural matters.
- § 156.6695-1 Other assessable penalties with respect to the preparation of tax returns or claims for refund for other persons.
- § 156.6696-1 Claims for credit or refund by tax return preparers.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1988—Subsec. (a). Pub. L. 100–647, § 2004(o)(1)(A), substituted “gain or other income of such person by reason of such receipt” for “gain realized by such person on such receipt”.
Subsec. (b). Pub. L. 100–647, § 2004(o)(1)(B)(i), substituted “a corporation (or any person acting in concert with such corporation) to directly or indirectly acquire stock of such corporation” for “a corporation to directly or indirectly acquire its stock”.
Subsec. (d). Pub. L. 100–647, § 2004(o)(1)(C), substituted “amount” for “gain” in heading and inserted “or other income” after “the gain” in text.
Subsec. (e). Pub. L. 100–647, § 2004(o)(2), added subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by section 2004(o)(1)(A), (C), (2) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.
Pub. L. 100–647, title II, § 2004(o)(1)(B)(ii), Nov. 10, 1988, 102 Stat. 3608, provided that: “The amendment made by clause (i) [amending this section] shall apply to transactions occurring on or after March 31, 1988.”
Effective Date
Pub. L. 100–203, title X, § 10228(d), Dec. 22, 1987, 101 Stat. 1330–418, provided that: “The amendments made by this section [enacting this chapter and amending section 275 of this title] shall apply to consideration received after the date of the enactment of this Act [Dec. 22, 1987] in taxable years ending after such date; except that such amendments shall not apply in the case of any acquisition pursuant to a written binding contract in effect on December 15, 1987, and at all times thereafter before the acquisition.”