Internal Revenue Code · 26 U.S.C.
§ 561. Definition of deduction for dividends paid
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. § 561
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- February 2, 1962 by Pub. L. 87–403
- Last amended
- October 4, 1976 by Pub. L. 94–455
- Amendments
- 1 dated changes in the source credit
- Length
- 2 subsections · 128 words · about 1 min to read
- Cross-references
- cites 4; cited by 12 Code sections and 28 other regulations
- Regulations
- 2 issued under this section
In determining the deduction for dividends paid, the rules provided in section 562 (relating to rules applicable in determining dividends eligible for dividends paid deduction) and section 563 (relating to dividends paid after the close of the taxable year) shall be applicable.
(Aug. 16, 1954, ch. 736, 68A Stat. 198; Pub. L. 87–403, § 3(f), Feb. 2, 1962, 76 Stat. 8; Pub. L. 94–455, title XIX, § 1901(b)(32)(H), Oct. 4, 1976, 90 Stat. 1800.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 561
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 4 other sections
- § 565 Consent dividends
- § 564 Dividend carryover
- § 562 Rules applicable in determining dividends eligible for dividends paid deduction
- § 563 Rules relating to dividends paid after close of taxable year
Cited by 12 Code sections
- § 162(k)(2)(A)(iii) Trade or business expenses
- § 172(d)(6)(C) Net operating loss deduction
- § 535(a) Accumulated taxable income
- § 545(a) Undistributed personal holding company income
- § 547(d)(1) Deduction for deficiency dividends
- § 564(a) Dividend carryover
- § 565(a) Consent dividends
- § 852(a)(1) Taxation of regulated investment companies and their shareholders
- § 857(a)(1) Taxation of real estate investment trusts and their beneficiaries
- § 860(d)(1)(A) Deduction for deficiency dividends
- § 4981(c)(1)(A) Excise tax on undistributed income of real estate investment trusts
- § 4982(c)(1)(A) Excise tax on undistributed income of regulated investment companies
Cited in 28 regulations not issued under it
- § 1.59A-3 Base erosion payments and base erosion tax benefits.
- § 1.162(k)-1 Disallowance of deduction for reacquisition payments.
- § 1.172-2 Net operating loss in case of a corporation.
- § 1.381(c)(14)-1 Dividend carryover to personal holding company.
- § 1.381(c)(17)-1 Deficiency dividend of personal holding company.
- § 1.381(c)(25)-1 Deficiency dividend of a qualified investment entity.
- § 1.522-2 Manner of taxation of cooperative associations subject to section 522.
- § 1.535-1 Definition.
- § 1.535-3 Accumulated earnings credit.
- § 1.545-1 Definition.
- § 1.547-2 Requirements for deficiency dividends.
- § 1.547-4 Effect on dividends paid deduction.
- § 1.564-1 Dividend carryover.
- § 1.565-1 General rule.
- § 1.597-2 Taxation of FFA.
- § 1.811-2 Dividends to policyholders.
- § 1.852-1 Taxation of regulated investment companies.
- § 1.852-2 Method of taxation of regulated investment companies.
- § 1.852-3 Investment company taxable income.
- § 1.852-10 Distributions in redemption of interests in unit investment trusts.
- § 1.852-11 Treatment of certain losses attributable to periods after October 31 of a taxable year.
- § 1.857-1 Taxation of real estate investment trusts.
- § 1.857-2 Real estate investment trust taxable income and net capital gain.
- § 1.860-2 Requirements for deficiency dividends.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter G Corporations Used to Avoid Income Tax on Shareholders
- Part IV DEDUCTION FOR DIVIDENDS PAID
Nearby sections
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1976—Subsec. (b). Pub. L. 94–455 redesignated existing provisions of par. (1) as subsec. (b) and struck out par. (2) relating to special adjustment on disposition of antitrust stock as a dividend.
1962—Subsec. (b). Pub. L. 87–403 designated existing provisions as par. (1) and added par. (2).
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Effective Date of 1962 Amendment
Amendment by Pub. L. 87–403 applicable only with respect to distributions made after Feb. 2, 1962, see section 3(g) of Pub. L. 87–403, set out as a note under section 312 of this title.