US Code

Public Law 119-73 (01/23/2026)

26 U.S.C. § 855

Dividends paid by regulated investment company after close of taxable year

(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.

(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.

Aug. 16, 1954, ch. 73668A Stat. 274Pub. L. 86–779, § 10(b)(2)74 Stat. 1009Pub. L. 88–272, title II, § 229(a)(5)78 Stat. 99Pub. L. 94–455, title XIX, § 1906(b)(13)(A)90 Stat. 1834Pub. L. 99–514, title VI100 Stat. 2296Pub. L. 100–647, title I, § 1006l102 Stat. 3413Pub. L. 111–325, title III124 Stat. 3547–3549Pub. L. 113–295, div. A, title II, § 205(b)128 Stat. 4026(, ; , , ; , , ; , , ; , §§ 651(b)(1)(B), 655(a)(5), , , 2299; ()(1)(B), , ; , §§ 301(g), 304(a)–(c), , ; , , .)

Editorial Notes

References in Text

act Aug. 22, 1940, ch. 68654 Stat. 789section 80a–51 of Title 15The Investment Company Act of 1940, referred to in subsec. (a), is title I of , , 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 and Tables.

Amendments

Pub. L. 113–2952014—Subsec. (a)(1). inserted “on or” before “before” in introductory provisions.

Pub. L. 111–325, § 304(c)2010—Subsec. (a). , 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.

Pub. L. 111–325, § 304(a)Subsec. (a)(1). , 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”.

Pub. L. 111–325, § 304(b)Subsec. (a)(2). , substituted “the first dividend payment of the same type of dividend” for “the first regular dividend payment”.

Pub. L. 111–325, § 301(g)(1)Subsecs. (c), (d). , 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.”

Pub. L. 100–6471988—Subsec. (b). substituted “section 852(b)(7)” for “section 852(b)(6)”.

Pub. L. 99–514, § 651(b)(1)(B)1986—Subsec. (b). , substituted “Except as provided in section 852(b)(6), amounts” for “Amounts”.

Pub. L. 99–514, § 655(a)(5)Subsec. (c). , substituted “60 days” for “45 days”.

Pub. L. 94–4551976—Subsec. (a). struck out “or his delegate” after “Secretary”.

Pub. L. 88–2721964—Subsec. (c). substituted “45 days” for “30 days”.

Pub. L. 86–7791960—Subsec. (c). substituted “this part” for “this subchapter”.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Pub. L. 113–295Pub. L. 111–325section 852(b)(8) of this titlesection 205(f) of Pub. L. 113–295section 852 of this titleAmendment by effective as if included in the provision of the Regulated Investment Company Modernization Act of 2010, , to which such amendment relates, with savings provision in certain cases of an election by a regulated investment company under , see , set out as a note under .

Effective Date of 2010 Amendment

section 301(g) of Pub. L. 111–325section 301(h) of Pub. L. 111–325section 852 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Pub. L. 111–325, title III, § 304(d)124 Stat. 3549

“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 [].”
, , , provided that:

Effective Date of 1988 Amendment

Pub. L. 100–647Pub. L. 99–514section 1019(a) of Pub. L. 100–647section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .

Effective Date of 1986 Amendment

section 651(b)(1)(B) of Pub. L. 99–514section 651(d) of Pub. L. 99–514section 4982 of this titleAmendment by applicable to calendar years beginning after , see , set out as an Effective Date note under .

section 655(a)(5) of Pub. L. 99–514section 655(b) of Pub. L. 99–514section 852 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 1964 Amendment

Pub. L. 88–272section 229(c) of Pub. L. 88–272section 852 of this titleAmendment by applicable to taxable years of regulated investment companies ending on or after , see , set out as a note under .

Effective Date of 1960 Amendment

Pub. L. 86–779section 10(k) of Pub. L. 86–779section 856 of this titleAmendment by applicable with respect to taxable years of real estate investment trusts beginning after , see , set out as an Effective Date note under .