26 U.S.C. § 855
§ 855. Dividends paid by regulated investment company after close of taxable year
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Part of the code since 1954. Last changed December 19, 2014 by the Tax Increase Prevention Act of 2014.
Every change, newest first (8)
- December 19, 2014Tax Increase Prevention Act of 2014
- December 22, 2010Public Law 111-325
- November 10, 1988Technical and Miscellaneous Revenue Act of 1988
- October 22, 1986Tax Reform Act of 1986
- October 4, 1976Tax Reform Act of 1976
- February 26, 1964Public Law 88-272
- September 14, 1960Public Law 86-779
- August 16, 1954Internal Revenue Code of 1954 (original text)
The law as written
Current through Public Law 119-102. Amendment notes omitted.
For purposes of this chapter, if a regulated investment company—
declares a dividend on or before the later of—
the 15th day of the 9th month following the close of the taxable year, or
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
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.
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.