Sample Form 886-A - Explanations of ItemsThe sample form is an example of Form 886-A, which is used as a schedule or exhibit in examination reports. The sample form is an example of a completed form with a narrative related to personal holding company tax and states, It has been determined that the taxpayer for its taxable year ended 12/31/2002 is a Personal Holding Company as defined in IRC section 542 of the Internal Revenue Code. As such it is subject to the special tax of 38.6% on undistributed Personal Holding Company income.Additionally, there is a computation showing Taxable Income before special deductions of $53,395, less Federal Income Tax of $8,349, equalling Undistributed Personal Holding Co. income of $45,046. The amount of $45,046 is multiplied by the tax rate of .386 for a total of $17,388 (representing the personal holding company tax.)