26 U.S.C. § 5881 Greenmail
(a) Imposition of taxThere 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.
(b) GreenmailFor purposes of this section, the term “greenmail” means any consideration transferred by a corporation (or any person acting in concert with such corporation) to directly or indirectly acquire stock of such corporation from any shareholder if—(1) such shareholder held such stock (as determined under section 1223) for less than 2 years before entering into the agreement to make the transfer, (2) at some time during the 2-year period ending on the date of such acquisition—(A) such shareholder, (B) any person acting in concert with such shareholder, or (C) any person who is related to such shareholder or person described in subparagraph (B), made or threatened to make a public tender offer for stock of such corporation, and (3) such acquisition is pursuant to an offer which was not made on the same terms to all shareholders. For purposes of the preceding sentence, payments made in connection with, or in transactions related to, an acquisition shall be treated as paid in such acquisition.
(c) Other definitionsFor purposes of this section—(1) Public tender offerThe 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. (2) Related personA 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).
(d) Tax applies whether or not amount recognizedThe tax imposed by this section shall apply whether or not the gain or other income referred to in subsection (a) is recognized.
(e) Administrative provisionsFor purposes of the deficiency procedures of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.