Title 26 — Internal Revenue CodeRelease 119-73
§855 Dividends paid by regulated investment company after close of taxable year
Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter M— - Regulated Investment Companies and Real Estate Investment Trusts › Part PART I— - REGULATED INVESTMENT COMPANIES › § 855
Summary
If a regulated investment company declares a dividend by the later of the 15th day of the ninth month after its tax year ends or the tax return due date with any extension, and then pays that dividend within 12 months after the end of the tax year and no later than the company’s first later payment of the same kind of dividend, the dividend is counted as received by the shareholder in the tax year when the company actually pays it (except as limited by section 852(b)(7)). If the company is one covered by section 853, any amounts that section 853(b)(2) says belong to that distribution must also be treated by shareholders as paid or received in the tax year when the distribution is made.
Full Legal Text
Title 26, §855
Internal Revenue Code — Source: USLM XML via OLRC
(a)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,
(b)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.
(c)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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
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.
Amendments
2014—Subsec. (a)(1). Pub. L. 113–295 inserted “on or” before “before” in introductory provisions. 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), redesignated subsec. (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.” 1988—Subsec. (b). Pub. L. 100–647 substituted “section 852(b)(7)” for “section 852(b)(6)”. 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. 94–455 struck out “or his delegate” after “Secretary”. 1964—Subsec. (c). Pub. L. 88–272 substituted “45 days” for “30 days”. 1960—Subsec. (c). Pub. L. 86–779 substituted “this part” for “this subchapter”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2014 AmendmentAmendment by Pub. L. 113–295 effective as if included in the provision of the Regulated Investment Company Modernization Act of 2010, Pub. L. 111–325, to which such amendment relates, with
Savings Provision
in certain cases of an election by a regulated investment company under section 852(b)(8) of this title, see section 205(f) of Pub. L. 113–295, set out as a note under section 852 of this title.
Effective Date
of 2010 AmendmentAmendment by section 301(g) of Pub. L. 111–325 applicable to taxable years beginning after Dec. 22, 2010, see section 301(h) of Pub. 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 AmendmentAmendment by Pub. L. 100–647 effective, 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) of Pub. L. 100–647, set out as a note under section 1 of this title.
Effective Date
of 1986 AmendmentAmendment by section 651(b)(1)(B) of Pub. L. 99–514 applicable to calendar years beginning after Dec. 31, 1986, see section 651(d) of Pub. L. 99–514, set out as an
Effective Date
note under section 4982 of this title. Amendment by section 655(a)(5) of Pub. L. 99–514 applicable to taxable years beginning after Oct. 22, 1986, see section 655(b) of Pub. L. 99–514, set out as a note under section 852 of this title.
Effective Date
of 1964 AmendmentAmendment by Pub. L. 88–272 applicable to taxable years of regulated investment companies ending on or after Feb. 26, 1964, see section 229(c) of Pub. L. 88–272, set out as a note under section 852 of this title.
Effective Date
of 1960 AmendmentAmendment by Pub. L. 86–779 applicable with respect to taxable years of real estate investment trusts beginning after Dec. 31, 1960, see section 10(k) of Pub. L. 86–779, set out as an
Effective Date
note under section 856 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 855
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73