§563 — Rules relating to dividends paid after close of taxable year
5 cases·1 followed·1 questioned·3 cited—20% support
Statute Text — 26 U.S.C. §563
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.
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—
The undistributed personal holding company income of the corporation for the taxable year, computed without regard to this subsection, or
20 percent of the sum of the dividends paid during the taxable year, computed without regard to this subsection.
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.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.563-1 Accumulated earnings tax
- Treas. Reg. §Treas. Reg. §1.563-2 Personal holding company tax
- Treas. Reg. §Treas. Reg. §1.563-2(a) §1.563-2(a)
- Treas. Reg. §Treas. Reg. §1.563-2(b) In the case of a taxable year beginning after December 31, 1969, 20 percent (10 percent, in the case of a taxable year beginning before Jan.
- Treas. Reg. §Treas. Reg. §1.563-3 Dividends considered as paid on last day of taxable year
- Treas. Reg. §Treas. Reg. §1.563-3(a) General rule.
- Treas. Reg. §Treas. Reg. §1.563-3(b) Personal holding company tax.
- Treas. Reg. §Treas. Reg. §1.563-3(c) Dividends paid on or before December 15, 1955.
5 Citing Cases
This designation came with a variety of restrictions and requirements from OTS. Although OTS noted that Platinum remained adequately capitalized, it cautioned that “this capital designation may not fully capture the high level of risk and uncertainty associated” with Platinum’s held-for-sale loan portfolio. Another examination that bega