Internal Revenue Code · 26 U.S.C.
§ 316. Dividend defined
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 316
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- February 26, 1964 by Pub. L. 88–272
- Last amended
- December 22, 2010 by Pub. L. 111–325
- Amendments
- 3 dated changes in the source credit
- Length
- 2 subsections · 673 words · about 3 min to read
- Defines
- 2 terms
- Cross-references
- cites 7; cited by 9 Code sections and 54 other regulations
- Regulations
- 2 issued under this section
The term “dividend” also means any distribution of property (whether or not a dividend as defined in subsection (a)) which constitutes a “deficiency dividend” as defined in section 860(f).
In the case of a regulated investment company that has a taxable year other than a calendar year, if the distributions by the company with respect to any class of stock of such company for the taxable year exceed the company’s current and accumulated earnings and profits which may be used for the payment of dividends on such class of stock, the company’s current earnings and profits shall, for purposes of subsection (a), be allocated first to distributions with respect to such class of stock made during the portion of the taxable year which precedes January 1.
(Aug. 16, 1954, ch. 736, 68A Stat. 98; Mar. 13, 1956, ch. 83, § 5(1), 70 Stat. 49; Pub. L. 88–272, title II, § 225(f)(1), Feb. 26, 1964, 78 Stat. 87; Pub. L. 94–455, title XVI, § 1601(d), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1746, 1834; Pub. L. 95–600, title III, § 362(d)(1), Nov. 6, 1978, 92 Stat. 2851; Pub. L. 111–325, title III, § 305(a), Dec. 22, 2010, 124 Stat. 3549.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 316
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 7 other sections
- § 301 Distributions of property
- § 542 Definition of personal holding company
- § 563(b) Rules relating to dividends paid after close of taxable year
- § 547 Deduction for deficiency dividends
- § 545 Undistributed personal holding company income
- § 562(b) Rules applicable in determining dividends eligible for dividends paid deduction
- § 860(f) Deduction for deficiency dividends
Cited by 9 Code sections
- § 301(c)(1) Distributions of property
- § 331(b) Gain or loss to shareholder in corporate liquidations
- § 562(a) Rules applicable in determining dividends eligible for dividends paid deduction
- § 565(b)(2) Consent dividends
- § 904(d)(4)(C)(i)(I) Limitation on credit
- § 956(b)(1)(A) Investment of earnings in United States property
- § 959(c) Exclusion from gross income of previously taxed earnings and profits
- § 6042(b)(1)(A) Returns regarding payments of dividends and corporate earnings and profits
- § 7518(c)(1)(D) Tax incentives relating to merchant marine capital construction funds
Cited in 54 regulations not issued under it
- § 1.56(g)-1 Adjusted current earnings.
- § 1.61-9 Dividends.
- § 1.163(j)-4 General rules applicable to C corporations (including REITs, RICs, and members of consolidated groups) and tax-exempt corporations.
- § 1.163(j)-10 Allocation of interest expense, interest income, and other items of expense and gross income to an excepted trade or business.
- § 1.243-3 Certain dividends from foreign corporations.
- § 1.245-1 Dividends received from certain foreign corporations.
- § 1.245A-5 Limitation of section 245A deduction and section 954(c)(6) exception.
- § 1.250(b)-1 Computation of foreign-derived intangible income (FDII).
- § 1.301-1 Rules applicable with respect to distributions of money and other property.
- § 1.312-11 Effect on earnings and profits of certain other tax-free exchanges, tax-free distributions, and tax-free transfers from one corporation to another.
- § 1.331-1 Corporate liquidations.
- § 1.358-1 Basis to distributees.
- § 1.367(b)-7 Carryover of earnings and profits and foreign income taxes in certain foreign-to-foreign nonrecognition transactions.
- § 1.381(c)(17)-1 Deficiency dividend of personal holding company.
- § 1.385-3 Certain distributions of debt instruments and similar transactions.
- § 1.543-1 Personal holding company income.
- § 1.547-2 Requirements for deficiency dividends.
- § 1.562-1 Dividends for which the dividends paid deduction is allowable.
- § 1.563-3 Dividends considered as paid on last day of taxable year.
- § 1.565-2 Limitations.
- § 1.565-3 Effect of consent.
- § 1.815-2 Distributions to shareholders.
- § 1.856-1 Definition of real estate investment trust.
- § 1.860-2 Requirements for deficiency dividends.
Show 30 more
- § 1.861-3 Dividends and income inclusions under sections 951, 951A, and 1293 and associated section 78 dividends.
- § 1.871-10 Election to treat real property income as effectively connected with U.S. business.
- § 1.871-15 Treatment of dividend equivalents.
- § 1.884-2T Special rules for termination or incorporation of a U.S. trade or business or liquidation or reorganization of a foreign corporation or its domestic subsidiary (temporary).
- § 1.902-1 Credit for domestic corporate shareholder of a foreign corporation for foreign income taxes paid by the foreign corporation.
- § 1.902-2 Treatment of deficits in post-1986 undistributed earnings and pre-1987 accumulated profits of a first- or lower-tier corporation for purposes of computing an amount of foreign taxes deemed paid under § 1.902-1.
- § 1.902-3 Credit for domestic corporate shareholder of a foreign corporation for foreign income taxes paid with respect to accumulated profits of taxable years of the foreign corporation beginning before January 1, 1987.
- § 1.907(c)-2 Section 907(c)(3) items (for taxable years beginning after December 31, 1982).
- § 1.951-3 Coordination of subpart F with foreign personal holding company provisions.
- § 1.954-6 Foreign base company shipping income.
- § 1.955-6 Gross income from sources within less developed countries.
- § 1.959-3 Allocation of distributions to earnings and profits of foreign corporations.
- § 1.963-3 Distributions counting toward a minimum distribution.
- § 1.965-2 Adjustments to earnings and profits and basis.
- § 1.995-1 Taxation of DISC income to shareholders.
- § 1.996-3 Divisions of earnings and profits.
- § 1.1012-1 Basis of property.
- § 1.1244(c)-1 Section 1244 stock defined.
- § 1.1248-2 Earnings and profits attributable to a block of stock in simple cases.
- § 1.1248-3 Earnings and profits attributable to stock in complex cases.
- § 1.1248-4 Limitation on tax applicable to individuals.
- § 1.1362-2 Termination of election.
- § 1.1368-1 Distributions by S corporations.
- § 1.1371-1 Distributions of money by an eligible terminated S corporation.
- § 1.1411-10 Controlled foreign corporations and passive foreign investment companies.
- § 1.1502-43 Consolidated accumulated earnings tax.
- § 1.6042-3 Dividends subject to reporting.
- § 1.6045-2 Furnishing statement required with respect to certain substitute payments.
- § 1.7701(l)-3 Recharacterizing financing arrangements involving fast-pay stock.
- § 3.0 Statutory provisions; section 607, Merchant Marine Act, 1936, as amended.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 111–325Parts changed in 2010: (b)(4)
- Amended by Pub. L. 95–600Parts changed in 1978: (b)(3)
- Amended by Pub. L. 94–455Parts changed in 1976: (b)(2)(B)(ii) (b)(3)
- Enacted by Pub. L. 88–272Parts changed in 1964: (b)(2)
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter C Corporate Distributions and Adjustments
- Part I DISTRIBUTIONS BY CORPORATIONS
- Subpart C Definitions; Constructive Ownership of Stock
Nearby sections
- § 316 Dividend defined
- § 317 Other definitions
- § 318 Constructive ownership of stock
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2010—Subsec. (b)(4). Pub. L. 111–325 added par. (4).
1978—Subsec. (b)(3). Pub. L. 95–600 inserted “regulated investment company or” after “distributions by a” in heading and substituted in text “section 860(f)” for “section 859(d)”.
1976—Subsec. (b)(2)(B)(ii). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (b)(3). Pub. L. 94–455, § 1601(d), added par. (3).
1964—Subsec. (b)(2). Pub. L. 88–272 inserted definition of “distribution of property”.
1956—Subsec. (b)(1). Act Mar. 13, 1956, substituted “subchapter L” for “sections 803(e), 821(a)(2), and 832(c)(11)”.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–325, title III, § 305(b), Dec. 22, 2010, 124 Stat. 3549, provided that: “The amendment made by this section [amending this section] shall apply to distributions made in taxable years beginning after the date of the enactment of this Act [Dec. 22, 2010].”
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–600 applicable with respect to determinations (as defined in section 860(e) of this title) after Nov. 6, 1978, see section 362(e) of Pub. L. 95–600, set out as an Effective Date note under section 860 of this title.
Effective Date of 1976 Amendment
For effective date of amendment by section 1601(d) of Pub. L. 94–455, see section 1608(a) of Pub. L. 94–455, set out as a note under section 857 of this title.
Effective Date of 1964 Amendment
Pub. L. 88–272, title II, § 225(l), Feb. 26, 1964, 78 Stat. 94, provided that:
“(1) The amendments made by this section [enacting section 1022, redesignating former section 1022 as 1023, amending this section and sections 331, 333, 381, 541, 542, 543, 544, 545, 551, 553, 554, 562, 856, 1016, 1361, 6501, and the analysis preceding section 1011, and enacting provisions set out as a note under section 333 of this title] (other than by subsections (c)(1), (f), (g), and (j) [enacting section 1022, redesignating former section 1022 as 1023, amending this section and sections 331, 333, 542, 551, 562, 1016, and the analysis preceding section 1011 of this title]) shall apply to taxable years beginning after December 31, 1963.“(2) The amendment made by subsection (c)(1) [amending section 542 of this title] shall apply to taxable years beginning after October 16, 1962.“(3) The amendments made by subsections (f) and (g) [amending this section and sections 331, 333, 551, and 562 of this title] shall apply to distributions made in any taxable year of the distributing corporation beginning after December 31, 1963.“(4) The amendments made by subsection (j) [enacting section 1022, redesignating former section 1022 as 1023, and amending section 1016 and the analysis preceding section 1011 of this title] shall apply in respect of decedents dying after December 31, 1963.“(5) Subsection (h) [set out as a note under section 333 of this title] shall apply to taxable years beginning after December 31, 1963.”
Effective Date of 1956 Amendment
Act Mar. 13, 1956, ch. 83, § 6, 70 Stat. 49, provided that: “The amendments made by this Act [amending this section and sections 501, 594, 801 to 805, 811 to 813, 816 to 818, 821, 822, 832, 841, 842, 843, 891, 1201, 1504, and 4371 of this title] shall apply only to taxable years beginning after December 31, 1954.”