# Distributions of Stock and Stock Rights
> **IRS** · Final regulations. · Published 1995-12-21 · Effective 1995-12-20 · 60 FR 66134
## Document
- **Document number:** 95-30831
- **Category:** tax-irs
- **Sub-agency:** IRS
- **Federal Register citation:** 60 FR 66134
- **CFR reference:** 26 CFR 1
- **Publication date:** 1995-12-21
- **Effective date:** 1995-12-20
- **Treasury docket:** TD 8643
## Abstract

This document contains final regulations amending regulations under section 305(c) of the Internal Revenue Code relating to constructive distributions on preferred stock. The final regulations concern the treatment of stock redeemable at a premium by the issuer. The regulations generally treat a call premium as giving rise to a constructive distribution only if redemption pursuant to the call provision is more likely than not to occur. The final regulations also reflect 1990 amendments to section 305(c).

## Source
- [Federal Register document](https://www.federalregister.gov/documents/1995/12/21/95-30831/distributions-of-stock-and-stock-rights)
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