26 U.S. Code § 855 - Dividends paid by regulated investment company after close of taxable year
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(a) General rule
For purposes of this chapter, if a regulated investment company—
(1) declares a dividend before the later of—
(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
(c) Foreign tax election
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(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.)
References in Text
The Investment Company Act of 1940, referred to in subsec. (a), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80a–51 of Title 15 and Tables.
2010—Subsec. (a). Pub. L. 111–325, § 304(c), in concluding provisions, inserted at end “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.”
Pub. L. 111–325, § 301(g)(2), substituted “and (c)” for “, (c) and (d)” in concluding provisions.
Subsec. (a)(1). Pub. L. 111–325, § 304(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “declares a dividend prior to the time prescribed by law for the filing of its return for a taxable year (including the period of any extension of time granted for filing such return), and”.
Subsec. (a)(2). Pub. L. 111–325, § 304(b), substituted “the first dividend payment of the same type of dividend” for “the first regular dividend payment”.
Subsecs. (c), (d). Pub. L. 111–325, § 301(g)(1), redesignatedsubsec. (d) as (c) and struck out former subsec. (c). Text of former subsec. (c) read as follows: “In the case of amounts to which subsection (a) is applicable, any notice to shareholders required under this part with respect to such amounts shall be made not later than 60 days after the close of the taxable year in which the distribution is made.”
1986—Subsec. (b). Pub. L. 99–514, § 651(b)(1)(B), substituted “Except as provided in section 852 (b)(6), amounts” for “Amounts”.
Subsec. (c). Pub. L. 99–514, § 655(a)(5), substituted “60 days” for “45 days”.
1976—Subsec. (a). Pub. L. 94–455struck out “or his delegate” after “Secretary”.
1964—Subsec. (c). Pub. L. 88–272substituted “45 days” for “30 days”.
1960—Subsec. (c). Pub. L. 86–779substituted “this part” for “this subchapter”.
Effective Date of 2010 Amendment
Amendment by section 301(g) ofPub. L. 111–325applicable to taxable years beginning after Dec. 22, 2010, see section 301(h) ofPub. L. 111–325, set out as a note under section 852 of this title.
Pub. L. 111–325, title III, § 304(d),Dec. 22, 2010, 124 Stat. 3549, provided that: “The amendments made by this section [amending this section] shall apply to distributions in taxable years beginning after the date of the enactment of this Act [Dec. 22, 2010].”
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–647effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) ofPub. L. 100–647, set out as a note under section 1 of this title.
Effective Date of 1986 Amendment
Amendment by section 651(b)(1)(B) ofPub. L. 99–514applicable to calendar years beginning after Dec. 31, 1986, see section 651(d) ofPub. L. 99–514, set out as an Effective Date note under section 4982 of this title.
Amendment by section 655(a)(5) ofPub. L. 99–514applicable to taxable years beginning after Oct. 22, 1986, see section 655(b) ofPub. L. 99–514, set out as a note under section 852 of this title.
Effective Date of 1964 Amendment
Amendment by Pub. L. 88–272applicable to taxable years of regulated investment companies ending on or after Feb. 26, 1964, see section 229(c) ofPub. L. 88–272, set out as a note under section 852 of this title.
Effective Date of 1960 Amendment