26 U.S.C. § 855 — Dividends paid by regulated investment company after close of taxable year

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 292 words · no verdicts yet

in plain englishAI-generated · not legal advice

A regulated investment company may elect to treat certain dividends declared after its tax year as paid during that year. Shareholders generally treat them as received in the year of actual distribution.

(a) General rule. If a regulated investment company declares a dividend by the later of the 15th day of the ninth month after the tax year, or the extended return due date, and distributes it within the following 12 months and no later than the first later payment of the same type, the company may elect on its return to treat the dividend as paid during the earlier tax year. The election must follow the Secretary's regulations and is subject to subsections (b) and (c). A dividend tied to short-term capital gain for which the Investment Company Act requires notice is treated as the same type as a capital-gain dividend. (b) Shareholder receipt. Except as section 852(b)(7) provides, the shareholder treats the amount as received in the year the distribution is actually made. (c) Foreign-tax election. If section 853 applies and the company makes a distribution under subsection (a), amounts described in section 853(b)(2) allocated to that distribution are treated as paid or received, as applicable, in the year of distribution.

the actual law source: uscode.house.gov ↗public domain

(a) General rule

For purposes of this chapter, if a regulated investment company—

(1)

declares a dividend on or before the later of—

(A)

the 15th day of the 9th month following the close of the taxable year, or

(B)

in the case of an extension of time for filing the company’s return for the taxable year, the due date for filing such return taking into account such extension, and

(2)

distributes the amount of such dividend to shareholders in the 12-month period following the close of such taxable year and not later than the date of the first dividend payment of the same type of dividend made after such declaration,

the amount so declared and distributed shall, to the extent the company elects in such return in accordance with regulations prescribed by the Secretary, be considered as having been paid during such taxable year, except as provided in subsections (b) and (c). For purposes of paragraph (2), a dividend attributable to any short-term capital gain with respect to which a notice is required under the Investment Company Act of 1940 shall be treated as the same type of dividend as a capital gain dividend.

(b) Receipt by shareholder

Except as provided in section 852(b)(7), amounts to which subsection (a) is applicable shall be treated as received by the shareholder in the taxable year in which the distribution is made.

If an investment company to which section 853 is applicable for the taxable year makes a distribution as provided in subsection (a) of this section, the shareholders shall consider the amounts described in section 853(b)(2) allocable to such distribution as paid or received, as the case may be, in the taxable year in which the distribution is made.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 274; Pub. L. 86–779, § 10(b)(2), Sept. 14, 1960, 74 Stat. 1009; Pub. L. 88–272, title II, § 229(a)(5), Feb. 26, 1964, 78 Stat. 99; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 99–514, title VI, §§ 651(b)(1)(B), 655(a)(5), Oct. 22, 1986, 100 Stat. 2296, 2299; Pub. L. 100–647, title I, § 1006(l)(1)(B), Nov. 10, 1988, 102 Stat. 3413; Pub. L. 111–325, title III, §§ 301(g), 304(a)–(c), Dec. 22, 2010, 124 Stat. 3547–3549; Pub. L. 113–295, div. A, title II, § 205(b), Dec. 19, 2014, 128 Stat. 4026.)

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736
1960Amended · Pub. L. 86-779 · 74 Stat. 1009
1964Amended · Pub. L. 88-272 · 78 Stat. 99
1976Amended · Pub. L. 94-455 · 90 Stat. 1834
1986Amended · Pub. L. 99-514 · 100 Stat. 2296, 2299
1988Amended · Pub. L. 100-647 · 102 Stat. 3413
2010Amended · Pub. L. 111-325 · 124 Stat. 3547
2014Amended · Pub. L. 113-295 · 128 Stat. 4026

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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