26 USC 565 - Consent dividends

U.S Code last checked for updates: May 19, 2024

§ 565.

Consent dividends

(a)

General rule

(b)

Limitations

A consent dividend shall not include—

(1)

an amount specified in a consent which, if distributed in money, would constitute, or be part of, a distribution which would be disqualified for purposes of the dividends paid deduction under section 562(c) (relating to preferential dividends), or

(2)

an amount specified in a consent which would not constitute a dividend (as defined in section 316) if the total amounts specified in consents filed by the corporation had been distributed in money to shareholders on the last day of the taxable year of such corporation.

(c)

Effect of consent

The amount of a consent dividend shall be considered, for purposes of this title—

(1)

as distributed in money by the corporation to the shareholder on the last day of the taxable year of the corporation, and

(2)

as contributed to the capital of the corporation by the shareholder on such day.

(d)

Consent dividends and other distributions

(e)

Nonresident aliens and foreign corporations

(f)

Definitions

(1)

Consent stock

(2)

Preferred dividends

(Aug. 16, 1954, ch. 736, 68A Stat. 200; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

cite as: 26 USC 565