Internal Revenue Code · 26 U.S.C.

§ 563. Rules relating to dividends paid after close of taxable year

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

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. § 563

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Enacted: December 30, 1969 by Pub. L. 91–172
Last amended: July 31, 2015 by Pub. L. 114–41
Amendments: 3 dated changes in the source credit
Length: 3 subsections · 330 words · about 1 min to read
Cross-references: cites 3; cited by 5 Code sections and 6 other regulations
Regulations: 3 issued under this section

¶(a) Accumulated earnings tax

In the determination of the dividends paid deduction for purposes of the accumulated earnings tax imposed by section 531, a dividend paid after the close of any taxable year and on or before the 15th day of the fourth month following the close of such taxable year shall be considered as paid during such taxable year.

¶(b) Personal holding company tax In the determination of the dividends paid deduction for purposes of the personal holding company tax imposed by section 541, a dividend paid after the close of any taxable year and on or before the 15th day of the fourth month following the close of such taxable year shall, to the extent the taxpayer elects in its return for the taxable year, be considered as paid during such taxable year. The amount allowed as a dividend by reason of the application of this subsection with respect to any taxable year shall not exceed either—

¶(1) The undistributed personal holding company income of the corporation for the taxable year, computed without regard to this subsection, or

¶(2) 20 percent of the sum of the dividends paid during the taxable year, computed without regard to this subsection.

¶(c) Dividends considered as paid on last day of taxable year

For the purpose of applying section 562(a), with respect to distributions under subsection (a) or (b) of this section, a distribution made after the close of a taxable year and on or before the 15th day of the fourth month following the close of the taxable year shall be considered as made on the last day of such taxable year.

(Aug. 16, 1954, ch. 736, 68A Stat. 199; Pub. L. 91–172, title IX, § 914(a), Dec. 30, 1969, 83 Stat. 723; Pub. L. 101–239, title VII, § 7401(b), Dec. 19, 1989, 103 Stat. 2356; Pub. L. 108–357, title IV, § 413(c)(10), Oct. 22, 2004, 118 Stat. 1507; Pub. L. 114–41, title II, § 2006(a)(2)(B), July 31, 2015, 129 Stat. 457.)

Regulations under this section

Treasury regulations (26 CFR) issued under § 563

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 3 other sections

Cited by 5 Code sections

Cited in 6 regulations not issued under it

Amendment history

From the source credit and the official notes, newest first.

July 31, 2015Amended by Pub. L. 114–41
October 22, 2004Amended by Pub. L. 108–357Parts changed in 2004: (c)
December 19, 1989Amended by Pub. L. 101–239Parts changed in 1989: (c) (d)
December 30, 1969Enacted by Pub. L. 91–172Parts changed in 1969: (b)(2)

Where it sits in the Code

Nearby sections

§ 561 Definition of deduction for dividends paid
§ 562 Rules applicable in determining dividends eligible for dividends paid deduction
§ 563 Rules relating to dividends paid after close of taxable year
§ 564 Dividend carryover
§ 565 Consent dividends

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Amendments

2015—Pub. L. 114–41 substituted “fourth month” for “third month” wherever appearing.

2004—Subsecs. (c), (d). Pub. L. 108–357 redesignated subsec. (d) as (c), substituted “subsection (a) or (b)” for “subsection (a), (b), or (c)”, and struck out former subsec. (c) which related to foreign personal holding company tax.

1989—Subsec. (c). Pub. L. 101–239, § 7401(b)(1), added subsec. (c). Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 101–239, § 7401(b)(2), substituted “subsection (a), (b), or (c)” for “subsection (a) or (b)”.

Pub. L. 101–239, § 7401(b)(1), redesignated former subsec. (c) as (d).

1969—Subsec. (b)(2). Pub. L. 91–172 substituted “20 percent” for “10 percent”.

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–41 applicable to returns for taxable years beginning after Dec. 31, 2015, with special rule for certain C corporations, see section 2006(a)(3) of Pub. L. 114–41, set out as a note under section 170 of this title.

Effective Date of 2004 Amendment

Amendment by Pub. L. 108–357 applicable to taxable years of foreign corporations beginning after Dec. 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end, see section 413(d)(1) of Pub. L. 108–357, set out as an Effective and Termination Dates of 2004 Amendments note under section 1 of this title.

Effective Date of 1989 Amendment

Amendment by Pub. L. 101–239 applicable to taxable years of foreign corporations beginning after July 10, 1989, with special rules for any foreign corporation required by the amendments made by section 7401 of Pub. L. 101–239 to change its taxable year for its first taxable year beginning after July 10, 1989, see section 7401(d) of Pub. L. 101–239, set out as an Effective Date note under section 898 of this title.

Effective Date of 1969 Amendment

Pub. L. 91–172, title IX, § 914(b), Dec. 30, 1969, 83 Stat. 723, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1969.”