26 U.S.C. § 4982
There is hereby imposed a tax on every regulated investment company for each calendar year equal to 4 percent of the excess (if any) of-
For purposes of this section-
The term "required distribution" means, with respect to any calendar year, the sum of-
The amount determined under paragraph (1) for any calendar year shall be increased by the excess (if any) of-
The grossed up required distribution for any calendar year is the required distribution for such year determined-
For purposes of this section-
The term "distributed amount" means, with respect to any calendar year, the sum of-
The amount determined under paragraph (1) for any calendar year shall be increased by the excess (if any) of-
The amount of the dividends paid during any calendar year shall be determined without regard to-
In the case of a regulated investment company which elects the application of this paragraph for any calendar year-
For purposes of this paragraph, the term "qualified estimated tax payments" means, with respect to any calendar year, payments of estimated tax of a tax described in paragraph (1)(B) for any taxable year which begins (but does not end) in such calendar year.
The tax imposed by this section for any calendar year shall be paid on or before March 15 of the following calendar year.
For purposes of this section-
The term "ordinary income" means the investment company taxable income (as defined in section 852(b)(2)) determined-
Except as provided in subparagraph (B), the term "capital gain net income" has the meaning given such term by section 1222(9) (determined by treating the 1-year period ending on October 31 of any calendar year as the company's taxable year).
The amount determined under subparagraph (A) shall be reduced (but not below the net capital gain) by the amount of the company's net ordinary loss for the calendar year.
For purposes of this paragraph-
The term "net capital gain" has the meaning given such term by section 1222(11) (determined by treating the 1-year period ending on October 31 of the calendar year as the company's taxable year).
The net ordinary loss for the calendar year is the amount which would be the net operating loss of the company for the calendar year if the amount of such loss were determined in the same manner as ordinary income is determined under paragraph (1).
In the case of any deficiency dividend (as defined in section 860(f))-
If-
subsection (b)(1)(B) and paragraph (2) of this subsection shall be applied by taking into account the company's taxable year in lieu of the 1-year period ending on October 31 of the calendar year.
An election under this paragraph, once made, may be revoked only with the consent of the Secretary.
Any specified gain or specified loss which (but for this paragraph) would be properly taken into account for the portion of the calendar year after October 31 shall be treated as arising on January 1 of the following calendar year.
For purposes of this paragraph-
The term "specified gain" means ordinary gain from the sale, exchange, or other disposition of property (including the termination of a position with respect to such property). Such term shall include any foreign currency gain attributable to a section 988 transaction (within the meaning of section 988) and any amount includible in gross income under section 1296(a)(1).
The term "specified loss" means ordinary loss from the sale, exchange, or other disposition of property (including the termination of a position with respect to such property). Such term shall include any foreign currency loss attributable to a section 988 transaction (within the meaning of section 988) and any amount allowable as a deduction under section 1296(a)(2).
In the case of any company making an election under paragraph (4), subparagraph (A) shall be applied by substituting the last day of the company's taxable year for October 31.
For purposes of determining a regulated investment company's ordinary income, notwithstanding paragraph (1)(C), each specified mark to market provision shall be applied as if such company's taxable year ended on October 31. In the case of a company making an election under paragraph (4), the preceding sentence shall be applied by substituting the last day of the company's taxable year for October 31.
For purposes of this paragraph, the term "specified mark to market provision" means sections 1256 and 1296 and any other provision of this title (or regulations thereunder) which treats property as disposed of on the last day of the taxable year or which determines income by reference to the value of an item on the last day of the taxable year.
Except as provided in regulations prescribed by the Secretary, in the case of a regulated investment company which has a taxable year other than the calendar year-
This section shall not apply to any regulated investment company for any calendar year if at all times during such calendar year each shareholder in such company was-
For purposes of the preceding sentence, any shares attributable to an investment in the regulated investment company (not exceeding $250,000) made in connection with the organization of such company shall not be taken into account.
26 U.S.C. § 4982
EDITORIAL NOTES
AMENDMENTS2014-Subsec. (e)(6)(B). Pub. L. 113-295, §205(d)(1), inserted "or which determines income by reference to the value of an item on the last day of the taxable year" before period at end. Subsec. (e)(7)(A). Pub. L. 113-295, §205(d)(2), substituted "such company may elect to determine its ordinary income and net ordinary loss (as defined in paragraph (2)(C)(ii)) for the calendar year without regard to any portion of any net ordinary loss" for "such company may elect to determine its ordinary income for the calendar year without regard to any net ordinary loss".Subsec. (f)(2). Pub. L. 113-295, §220(s), inserted comma at end.2010-Subsec. (b)(1)(B). Pub. L. 111-325, §404(a), substituted "98.2 percent" for "98 percent".Subsec. (c)(4). Pub. L. 111-325, §403(a), added par. (4).Subsec. (e)(5) to (7). Pub. L. 111-325, §402(a), added pars. (5) to (7) and struck out former pars. (5) and (6) which related to treatment of foreign currency gains and losses after October 31 of calendar year and treatment of gain recognized under section 1296, respectively.Subsec. (f). Pub. L. 111-325, §401(a)(1), struck out "either" before dash at end of introductory provisions. Subsec. (f)(3), (4). Pub. L. 111-325, §401(a)(2) -(4), added pars. (3) and (4).1997-Subsec. (e)(6). Pub. L. 105-34 added par. (6).1989-Subsec. (b)(1)(A). Pub. L. 101-239 substituted "98 percent" for "97 percent". 1988-Subsec. (e)(2). Pub. L. 100-647, §1006(l)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "The term 'capital gain net income' has the meaning given to such term by section 1222(9) (determined by treating the 1-year period ending on October 31 of any calendar year as the company's taxable year)."Subsec. (e)(5). Pub. L. 100-647, §1006(l)(5), added par. (5). Subsec. (f). Pub. L. 100-647, §1006(l)(6), added subsec. (f).1987-Subsec. (b)(1)(B). Pub. L. 100-203 substituted "98 percent" for "90 percent".
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2014 AMENDMENT Amendment by section 205(d) of Pub. L. 113-295 effective as if included in the provision of the Regulated Investment Company Modernization Act of 2010, Pub. L. 111-325, to which such amendment relates, with savings provision in certain cases of an election by a regulated investment company under section 852(b)(8) of this title, see section 205(f) of Pub. L. 113-295, set out as a note under section 852 of this title.
EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111-325, §401(b), Dec. 22, 2010, 124 Stat. 3552, provided that: "The amendment made by this section [amending this section] shall apply to calendar years beginning after the date of the enactment of this Act [Dec. 22, 2010]." Pub. L. 111-325, §402(b), Dec. 22, 2010, 124 Stat. 3553, provided that: "The amendments made by this section [amending this section] shall apply to calendar years beginning after the date of the enactment of this Act [Dec. 22, 2010]." Pub. L. 111-325, §403(b), Dec. 22, 2010, 124 Stat. 3554, provided that: "The amendment made by this section [amending this section] shall apply to calendar years beginning after the date of the enactment of this Act [Dec. 22, 2010]." Pub. L. 111-325, §404(b), Dec. 22, 2010, 124 Stat. 3554, provided that: "The amendments made by this section [amending this section] shall apply to calendar years beginning after the date of the enactment of this Act [Dec. 22, 2010]."
EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105-34 applicable to taxable years of United States persons beginning after Dec. 31, 1997, and to taxable years of foreign corporations ending with or within such taxable years of United States persons, see section 1124 of Pub. L. 105-34, set out as a note under section 532 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101-239, §7204(a)(2), Dec. 19, 1989, 103 Stat. 2334, provided that: "The amendment made by paragraph (1) [amending this section] shall apply to calendar years ending after July 10, 1989."
EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100-203, title X, §10104(b)(2), Dec. 22, 1987, 101 Stat. 1330-387, provided that: "The amendment made by paragraph (1) [amending this section] shall take effect as if included in the amendments made by section 651 of the Tax Reform Act of 1986 [section 651 of Pub. L. 99-514, see Effective Date note below]."
EFFECTIVE DATE Pub. L. 99-514, title VI, §651(d), Oct. 22, 1986, 100 Stat. 2297, provided that: "The amendments made by this section [enacting this section and amending sections 852 and 855 of this title] shall apply to calendar years beginning after December 31, 1986."
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- shareholder
- The term "shareholder" includes a member in an association, joint-stock company, or insurance company.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- transaction
- The term "transaction" includes a series of transactions.