Code Section 855

Code Section Effective Date Name of Act Name of Provision 10yr Revenue Estimate ($millions)
855 12/22/2010 Regulated Investment Company Modernization Act of 2010 Modification of Rules for Spillover Dividends of RICs Loss of less than .5

Modification of Rules for Spillover Dividends of RICs

Explanation of Provision

The time for declaring a spillover dividend is the later of the  15th day of the 9th month following the close of the taxable year or the extended due date for filing the return. Also, the requirement that the distribution be made not later than the date of the first dividend payment after the declaration is changed. The provision provides that the distribution must be made not later than the date of the first dividend payment of the same type of dividend (for example, an ordinary income dividend or a capital gain dividend) made after the declaration. For this purpose, a dividend attributable to 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.1892

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1892- See section 19 of the Investment Company Act of 1940, as amended, for rules requiring notice to shareholders identifying source of distribution.
-Return to Explanation of Provision

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