Internal Revenue Code · 26 U.S.C.
§ 591. Deduction for dividends paid on deposits
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. § 591
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 16, 1962 by Pub. L. 87–834
- Last amended
- August 13, 1981 by Pub. L. 97–34
- Amendments
- 1 dated changes in the source credit
- Length
- 2 subsections · 170 words · about 1 min to read
- Defines
- 1 term
- Cross-references
- cites 0; cited by 8 Code sections and 9 other regulations
- Regulations
- 1 issued under this section
In the case of mutual savings banks, cooperative banks, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under Federal or State law, there shall be allowed as deductions in computing taxable income amounts paid to, or credited to the accounts of, depositors or holders of accounts as dividends or interest on their deposits or withdrawable accounts, if such amounts paid or credited are withdrawable on demand subject only to customary notice of intention to withdraw.
(Aug. 16, 1954, ch. 736, 68A Stat. 204; Pub. L. 87–834, § 6(f), Oct. 16, 1962, 76 Stat. 984; Pub. L. 97–34, title II, § 245(a), Aug. 13, 1981, 95 Stat. 255.)
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 § 591
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited by 8 Code sections
- § 1(h)(11)(B)(ii)(II) Tax imposed
- § 165(l)(3)(B) Losses
- § 243(d)(1) Dividends received by corporations
- § 465(c)(7)(D)(iv) Deductions limited to amount at risk
- § 501(c)(14)(B)(iv) Exemption from tax on corporations, certain trusts, etc.
- § 582(c)(2)(A)(ii) Bad debts, losses, and gains with respect to securities held by financial institutions
- § 593(e)(1) Reserves for losses on loans
- § 871(i)(3)(B) Tax on nonresident alien individuals
Cited in 9 regulations not issued under it
- § 1.243-2 Special rules for certain distributions.
- § 1.382-2T Definition of ownership change under section 382, as amended by the Tax Reform Act of 1986 (temporary).
- § 1.581-2 Mutual savings banks, building and loan associations, and cooperative banks.
- § 1.861-2 Interest.
- § 1.861-11T Special rules for allocating and apportioning interest expense of an affiliated group of corporations (temporary).
- § 1.1381-1 Organizations to which part applies.
- § 1.7872-5T Exempted loans (temporary).
- § 301.6311-1 Payment by check or money order.
- § 301.9100-8 Time and manner of making certain elections under the Technical and Miscellaneous Revenue Act of 1988.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 97–34
- Enacted by Pub. L. 87–834
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter H Banking Institutions
- Part II MUTUAL SAVINGS BANKS, ETC.
Nearby sections
- § 591 Deduction for dividends paid on deposits
- § 592 Repealed
- § 593 Reserves for losses on loans
- § 594 Alternative tax for mutual savings banks conducting life insurance business
- § 595, 596 Repealed
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1981—Pub. L. 97–34 designated existing provisions as subsec. (a), inserted heading “In general”, and added subsec. (b).
1962—Pub. L. 87–834 included other savings institutions chartered and supervised as savings and loan or similar associations under Federal or State law, and authorized amounts paid as interest as a deduction.
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Pub. L. 97–34, title II, § 246(d), Aug. 13, 1981, 95 Stat. 256, provided that: “The amendments made by section 245 [amending this section and section 593 of this title] shall apply with respect to taxable years ending after the date of the enactment of this Act [Aug. 13, 1981].”