Modification of Rules for Spillover Dividends

The Act modifies the time for declaring a spillover dividend to provide that the dividend must be declared by the later of the 15th day of the ninth month following the close of the taxable year (to which the spillover dividend applies) or the extended due date for filing the tax return for such year. The Act also changes the timing requirement for payments of spillover dividends. The changes to the spillover dividend rules apply to distributions in taxable years beginning after the Date of Enactment.

Explanation

A RIC can elect to treat as paid during a taxable year certain dividends actually paid by the RIC in the subsequent year.26 Such dividends are commonly referred to as spillover dividends. The spillover dividend election only affects the tax treatment of the RIC. The shareholders generally are taxed on dividends in the year of actual distribution of such dividends.

Prior to the Act, a RIC electing to relate a spillover dividend back to a prior taxable year had to declare the spillover dividend no later than the time prescribed for filing the RIC's tax return for such prior taxable year (including the period of any extension of time granted for filing such return).27

Although the due date for a RIC (or other corporate) tax return is normally the 15th day of the third month following the close of the year,28 (e.g., March 15th for a calendar year) an automatic extension of six months for filing the return can be obtained if Form 7004 is filed prior to the original due date of the tax return. Because RICs normally file for the automatic six-month extension for filing the tax return, RICs can normally declare spillover dividends within 9½ months after the taxable year.

Prior to the Act, because the date for a RIC declaring spillover dividends depended on whether there was an extension to file the RIC's tax return, a failure to file an extension in a timely manner could have resulted in a RIC not being able to utilize the spillover dividend procedure. The Act modifies the time for declaring a spillover dividend to provide that the dividend must be declared by the later of the 15th day of the ninth month following the close of the taxable year or the extended due date for filing the tax return.

Comments: As a result of the provision in the Act, a RIC will be able to declare spillover dividends within 9½ months after the end of the RIC's taxable year to which the spillover dividend relates, even if the RIC fails to file for an extension of its tax return.

Prior to the Act, spillover dividends needed to be distributed within the 12-month period following the close of the taxable year to which the spillover dividend related and not later than the date of the first "regular" dividend payment made after the declaration of the spillover dividend. This rule caused additional complexity in planning the timing of spillover dividends.

The Act retains the 12-month limit and changes the timing of the distribution requirement to provide that the distribution of a spillover dividend must be made not later than the date of the first dividend payment of the same type of dividend (for example, an ordinary dividend or a capital gain dividend) made after the declaration. For this purpose, a dividend attributable to short-term capital gains with respect to which a notice is required under the 1940 Act shall be treated as the same type of dividend as a capital gain dividend payable from long-term capital gains.29

The changes to the spillover dividend rules apply to distributions in taxable years beginning after the Date of Enactment.

Pass-Through of Exempt-Interest Dividends and Foreign Tax Credits in Fund of Funds Structures

The Act allows a qualified fund of funds (i) to pay exempt-interest dividends to its shareholders from exempt-interest dividends received from underlying funds and (ii) to elect to pass through the ability to take foreign tax credits (or deductions) to the extent that foreign taxes are passed through from underlying funds. A qualified fund of funds is a RIC that has at least 50% of the value of its total interests invested in other RICs at the end of each quarter of the taxable year. This provision is effective for taxable years beginning after the Date of Enactment.

Explanation

A RIC is able to pay exempt-interest dividends if, at the end of each quarter of the RIC's taxable year, at least 50% of the value of the RIC's total assets consists of obligations exempt from tax under Section 103.30 Prior to the Act, if a RIC structured as a fund of funds invested in an underlying RIC that paid exempt-interest dividends, the fund of funds would not be able to itself pay exempt-interest dividends unless the fund of funds itself had at least 50% of its assets invested directly in tax exempt obligations at the end of each quarter. For this purpose, the shares in the underlying RIC paying exempt-interest dividends would have not been treated as tax exempt obligations even if all of such underlying RIC's assets were invested in tax exempt obligations.

A RIC is also able to pass through to its shareholders the ability, subject to certain limitations, to take a credit (or deduction) for foreign taxes paid by the RIC if more than 50% of the RIC's assets at the close of the RIC's taxable year consist of stock or securities of foreign corporations.31 Prior to the Act, if a RIC structured as a fund of funds invested in an underlying fund that passed through the ability to take the foreign tax credit, the fund of funds was not able to pass through the foreign tax credit to its shareholders unless the fund of funds otherwise directly invested more than 50% of its assets in the stock or securities of foreign corporations.

A provision in the Act allows a qualified fund of funds (i) to pay exempt-interest dividends to its shareholders from exempt-interest dividends received from underlying funds and (ii) to elect to pass through the ability to take foreign tax credits (or deductions) to the extent that foreign taxes are passed through from underlying funds. A qualified fund of funds is a RIC that has at least 50% of the value of its total interests invested in other RICs at the end of each quarter of the taxable year. This provision is effective for taxable years beginning after the Date of Enactment.

Comments: If a fund of funds pays exempt-interest dividends to its shareholders, the fund of funds will not be able to deduct a portion of its expenses pursuant to Section 265(a)(3).

The provision in the Act may potentially encourage the formation of funds of funds that invest in underlying municipal bond funds or in funds that pass through the foreign tax credit. It should be noted, however, that redemptions by a fund of funds of shares in underlying funds could result in net taxable gains that would have to be distributed to the shareholders of the fund of funds in order to avoid tax at the fund of funds level. Further, to the extent that such net gains are short-term capital gains, such distributions would normally be taxed as ordinary income to shareholders of the fund of funds.

Clarification of the Treatment of Redemptions of Shares in Publicly Offered Open-End RICs

The Act clarifies that a redemption of stock in a publicly traded open-end RIC is treated as a sale of stock.

Explanation

Prior to the Act, if a shareholder redeemed stock in a RIC, the rules in Section 302 generally determined whether the redemption payment would be viewed as payment in exchange for the stock, that would generally result in a capital gain or loss, depending upon the stockholder's basis in the stock, or whether the redemption payment would be treated as a distribution to which Sections 301 and 316 apply.32 Distributions under Sections 301 and 316 are either treated as dividends or return of capital distributions or as gains from the sale of the stock, depending upon the amount of the RIC's current and accumulated earnings and profits.

Under the rules in Section 302, a redemption by a shareholder of all of its shares in a RIC would be treated as a sale of the shares.33 In determining whether all of the shareholder's shares have been redeemed, certain constructive ownership rules in Section 318 apply, attributing to the shareholder ownership of shares owned by certain relatives, partnerships, and controlled corporations.34

Under Section 302, a partial redemption of shares held in a RIC will be treated as a sale of the shares, and not as a dividend, if the redemption is "substantially disproportionate,"35 or if the redemption is "not essentially equivalent to a dividend."36 Generally, a redemption will be substantially disproportionate if the shareholder's percentage of ownership in the RIC is reduced by more than 20%.37 In other cases, the shareholder could argue that the redemption is not essentially equivalent to a dividend, particularly in situations where the shareholder has an insignificant ownership interest in the RIC.38

Although RICs have normally treated redemptions of their shares as sales (and not as distributions potentially treated as dividends), the application of the rules in Section 302 may not have been certain in particular cases because a RIC may not have full information regarding the percentage ownership of its shareholders, particularly if shares are held through brokers or other nominees. Also, in some cases the application of the "not essentially equivalent to a dividend" test may not have been certain.

The Act provides that, except to the extent provided in regulations, the redemption of stock of a publicly offered RIC is treated as a sale or exchange if the redemption is upon the demand of the shareholder and RIC issues only stock which is redeemable upon the demand of the shareholder (i.e., an open-end fund).

For this purpose, a publicly offered RIC is a RIC whose shares are:

  • continuously offered pursuant to a public offering (within the meaning of Section 4 of the Securities Act of 1933);
  • regularly traded on an established securities market; or
  • held by or for no fewer than 500 persons at all times during the taxable year.39

The provision applies to redemptions after the Date of Enactment.

Comment: The provision does not apply to redemptions of shares in closed-end RICs. Although such RICs normally do not redeem their shares, and instead such shares are typically sold on a stock exchange, closed-end RICs sometimes allow shareholders to redeem their shares pursuant to a tender offer by the RIC for its shares. Such redemptions would need to be analyzed under Section 302, without regard to the provision in the Act.

Redemptions of Shares in Fund of Funds

The Act clarifies that the loss deferral rule under Section 267(f) does not apply to losses on the redemption of shares in an underlying fund by a fund of funds.

Explanation

Under Section 267(f), any deduction in respect of a loss from the sale or exchange of property between members of a controlled group of corporations is deferred until the transfer of the property outside the group.40 In the case of a fund of funds, an underlying fund may be required to redeem shares in such fund that are owned by the fund of funds when the fund of fund shareholders demand redemption of their shares. Because the fund of funds and the underlying fund may be members of the same "controlled group" of corporations, any loss by the fund of funds on the redemption of the underlying fund shares may be deferred.

The Act amends Section 267(f) to provide that, except to the extent provided in regulations, the loss deferral rule does not apply to any redemption of stock of a RIC if the RIC issues only stock which is redeemable upon the demand of the shareholder and the redemption is upon the demand of a shareholder which is another RIC. The provision applies to redemptions after the date of enactment.

Comment: Losses on the redemption by a fund of funds of shares in an underlying RIC could also be subject to deferral under the wash sale rule in Section 1091.

Modification of Loss Disallowance Rule for Sales of RIC Shares after Payment of Exempt-interest Dividends

The Act modifies the loss disallowance rule for sales of RIC shares after payment of exempt-interest dividends to exclude a regular dividend paid by a RIC which declares exempt-interest dividends on a daily basis in an amount equal to at least 90% of its net tax-exempt interest and distributes such dividends on a monthly or more frequent basis.

Explanation

Losses on the sale of shares in a RIC held for six months or less are generally disallowed to the extent of any exempt-interest dividends received with respect to such shares.41 Under the Act, this loss disallowance rule will not apply (except as otherwise provided by regulations) to regular dividends paid by a RIC that declares exempt-interest dividends on a daily basis in an amount equal to at least 90% of its net tax-exempt interest and distributes such dividends on a monthly or more frequent basis. The provision applies to losses incurred on shares with a holding period beginning after the Date of Enactment.

Comments: Losses on the sale of shares in a RIC could also be subject to deferral under the wash sale rule in Section 1091.

The Act did not change a related rule which provides that losses on the sale of shares in a RIC held for six months or less are treated as long-term capital losses to the extent that the selling shareholder received capital gain dividends (which are taxed as long-term capital gains) with respect to such shares.42

Deferral of Losses in Computing Taxable Income and Capital Gains

The Act amends the post-October loss rules, for taxable years beginning after the Date of Enactment.

Explanation

In general, a RIC may pay capital gain dividends to its shareholders to the extent of the RIC's net capital gain for the taxable year. The shareholders treat capital gain dividends as long-term capital gain.43

Prior to the Act, for purposes of determining the amount of a net capital gain dividend, the amount of net capital gain for a taxable year was determined without regard to any net capital loss or net long-term capital loss attributable to transactions after October 31 of the taxable year, and the post-October net capital loss or net long-term capital loss was treated as arising on the first day of the RIC's next taxable year.44 In addition, to the extent provided in regulations, the above rules relating to post-October net capital losses also applied for purposes of computing taxable income of a RIC.45 Regulations have been issued allowing RICs to elect to defer all or part of any net capital loss (or if there is no such net capital loss, any net long-term capital loss) attributable to the portion of the taxable year after October 31, to the first day of the succeeding taxable year.46

Under a provision in the Act, except to the extent provided in regulations, a RIC may elect to "push" to the first day of the next taxable year part or all of any post-October capital loss and such post-October losses will now include net short-term losses. The term "post-October capital loss" is amended to be the greatest of the RIC's net capital loss, net long-term capital loss, or net short-term capital loss (attributable to the portion of the taxable year after October 31). The election applies for all purposes of the Code, including determining taxable income, net capital gain, net short-term capital gain, and earnings and profits.

Modification of Deferral Rules for Excise Tax Purposes

The Act provides amended rules for deferring certain ordinary income or losses, arising after October 31, into the following calendar year for purposes of determining required distributions under the excise tax provisions in Section 4982.

Explanation

Section 4982 generally imposes a 4% excise tax on RICs to the extent that a RIC does not satisfy certain minimum distribution requirements during a calendar year. For calendar years beginning in 2011, the required minimum distribution will be generally equal to the sum of 98% of the RIC's ordinary income (generally computed on a calendar year basis), plus 98.2% of the RIC's capital gain net income (generally computed for the year period ending on October 31). The amount that must be distributed is generally increased by undistributed income and gains from prior years.

Under certain provisions of the Code, ordinary income or loss can arise on the sale or disposition of certain assets. As an example, Section 988 provides ordinary income or loss treatment for certain foreign currency gains or losses. Ordinary gains and losses can also result from certain dispositions of stock in a passive foreign investment company ("PFIC"). Such transactions could result in unanticipated ordinary income towards the end of a calendar year. If such transactions were including in computing the calendar year ordinary income, for purposes of Section 4982, it could be difficult to accurately predict the amount of such ordinary income, and the required distributions under Section 4982.

To alleviate this concern, net foreign currency losses and gains and ordinary loss or gain from the disposition of stock in a PFIC that are otherwise properly taken into account after October 31 are moved to the following calendar year for purposes of the excise tax.47

In addition, to the extent provided in regulations, a RIC may elect to push the post-October net foreign currency losses and the net reduction in the value of stock in a PFIC with respect to which a mark-to-market election is in effect under Section 1296(k) forward into the next taxable year.48 Regulations have been issued allowing RICs to elect to defer all or part of any post-October net foreign currency losses for the portion of the taxable year after October 31, to the first day of the succeeding taxable year.49

The Act amends Section 4982 to expand the treatment of foreign currency gains and losses arising after October 31 to include ordinary gains and losses from the sale, exchange, or other disposition of (or termination of a position with respect to) property, including foreign currency gain or loss, and amounts marked-to-market under Section 1296. These post-October 31 ordinary gains and losses would be moved into the next calendar for purposes of Section 4982.

The provision applies for taxable years of RICs beginning after the Date of Enactment.

Treatment of Capital Losses in Calculating Earnings and Profits of a RIC

The Act changes the rules for determining the effect of capital losses in calculating a RIC's earnings and profits.

Explanation

In Rev. Rul. 76–299,50 the IRS ruled that capital loss carryovers do not reduce earnings and profits in the year in which the carryover is applied, even though such carryovers reduce the amount of taxable capital gains in such year. As a result, prior to the Act, if a RIC distributed capital gains earned during a taxable year that were offset by loss carryovers, the distributed gains were generally treated as ordinary dividends in the hands of the shareholders.51

Under a provision in the Act, a net capital loss for a taxable year is not taken into account in determining earnings and profits for such year, and any capital loss carried over that is treated as arising on the first day of the next taxable year is taken into account in determining earnings and profits for such next taxable year (subject to the application of the net capital loss rule for that year). The provision applies to capital losses arising in taxable years beginning after the Date of Enactment.

Reduction of Earnings and Profits by Certain Amounts Disallowed as Deductions by Funds Paying Exempt-Interest Dividends

The Act also changes the rules for computing "earnings and profits" for a RIC to reduce earnings and profits by certain amounts disallowed as deductions by funds paying exempt-interest dividends.

Explanation

Distributions paid by a RIC are generally taxable as dividends to the extent of the RIC's current or accumulated earnings and profits. The calculation of a RIC's earnings and profits is generally computed under the rules applicable to other corporations.

Prior to the Act, Section 852(c)(1) provided that the earnings and profits of a RIC for any taxable year (but not its accumulated earnings and profits) shall not be reduced by any amounts not allowable as a deduction in computing its taxable income for such taxable year. If a nondeductible expense reduced current earnings and profits, there would be a corresponding reduction in the ability of the RIC to pay taxable dividends (assuming there were no accumulated earnings and profits), even though there was no corresponding reduction in the amount of investment company taxable income which must be distributed.

Section 852(c)(1) was intended to insure that a RIC will have sufficient earnings and profits to distribute the full amount of its investment company taxable income as dividends even though the RIC has a net capital loss in the same year. Similarly, a RIC will have sufficient earnings and profits to pay capital gain dividends out of its net capital gains in a year in which the RIC has a net operating loss, since earnings and profits would not be reduced by the amount of the net operating loss.52

In the case of a RIC investing in tax-exempt obligations, the amount of exempt- interest dividends which may be paid by the RIC is equal to the amount excludible from gross income under Section 103, reduced by the amounts disallowed as deductions under Section 171(a)(2) (relating to amortization of bond premium) and Section 265 (expenses and interest relating to tax-exempt income).53 However, the IRS has taken the position that amounts disallowed as deductions under Section 171(a)(2) and Section 265 do not reduce earnings and profits pursuant to Section 852(c)(1).54 Under such a view, the distribution of amounts in excess of the amount that could be designated as exempt-interest dividends would be taxable in whole or in part as ordinary dividends since the RIC's earnings and profits would exceed the amount that could be designated as exempt interest dividends.

Example: In 2008, RIC X had $1 million of tax exempt interest and $50,000 of nondeductible expenses. X can distribute exempt-interest dividends of $950,000. However, its earnings and profits are $1 million because such earnings and profits were not reduced by the nondeductible expenses. If X distributed $975,000, there would be a taxable dividend of $25,000.

The Act amends Section 851(c)(2) to allow expenses that are disallowed under Section 265 or Section 171(a)(2) to reduce a RIC's earnings and profits. The provision is effective for taxable years beginning after the Date of Enactment.

Expansion of Excise Tax Exemption for Certain RICs Owned by Certain Tax-Exempt Entities and/or Segregated Asset Accounts of Life Insurance Companies

A RIC owned by certain tax-exempt entities and/or segregated asset accounts of life insurance companies held in connection with variable insurance contracts is generally exempt from the excise tax distribution requirements under Section 4982. The Act expands the types of entities that can be owners of such a RIC, effective in calendar years beginning after the Date of Enactment.

Explanation

The excise tax under Section 4982 does not apply to a RIC for a calendar year in which each shareholder is either a qualified pension plan under Section 401(a) or a segregated asset account of a life insurance company held in connection with a variable contract.55 For this purpose, any shares attributable to an investment in the RIC (not exceeding $250,000) made in connection with the organization of the RIC are not taken into account.

This exception to the excise tax was intended to include RICs that act as underlying investments for variable insurance contracts. Insurance company segregated asset accounts must satisfy certain diversification requirements under Section 817(h) and the regulations thereunder. If the segregated asset account invests in a RIC, there is generally an ability to look through to the assets of the RIC in determining compliance under Section 817(h) if the ownership in the RIC is generally limited to insurance company separate accounts and certain tax-exempt entities.56 Such RICs are often referred to as "insurance dedicated" funds.

The Act expands the types of entities that can own a RIC eligible for the exception to the excise tax, to include any tax-exempt entity whose ownership of beneficial interest in the RIC would not preclude the application of the look-through rule in Section 817(h). The expansion includes qualified annuity plans described in Section 403, IRAs (including Roth IRAs), certain government plans described in Section 414(d) or 457, and pension plans described in Section 501(c)(18).57

The Act also allows a RIC eligible for the excise tax exception to be owned by another RIC eligible for the exception. This allows an insurance dedicated fund of funds to invest in other underlying insurance dedicated funds without affecting the eligibility of the underlying insurance dedicated funds for the excise tax exemption.

The expansion of the excise tax exemption is effective in calendar years beginning after the Date of Enactment (i.e., for calendar years beginning in 2011).

Treatment of Estimated Tax Payments Under Section 4982

The Act changes the timing of deemed distributions credited to a RIC under Section 4982 in situations where the RIC pays estimated taxes on retained income or gains.

Explanation

In determining the distributed amount under the excise tax provisions in Section 4982 for any calendar year, a RIC may include any amount on which tax is imposed on the RIC under Section 852 (on investment company taxable income and/or undistributed net capital gain) for any taxable year ending in such calendar year.58 As an example, if a RIC that has a June 30th taxable year paid tax on retained income or gains for the tax year ending on June 30, 2009, then the RIC could treat the amount on which tax was imposed as being distributed in 2009.

Under the Act, a RIC making estimated tax payments for taxes imposed in a taxable year beginning (but not ending) during any calendar year may elect to increase the deemed distributed amount for that calendar year by the amount on which the estimated tax payments for taxes are made during that calendar year. The distributed amount for the following calendar year is reduced by the amount of the prior year's increase. The provision applies to calendar years beginning after the Date of Enactment (i.e., for calendar years beginning in 2011).

Modification of Sales Load Basis Deferral Rule

The Act modifies the sales load basis deferral rule under Section 852(f).

Explanation

Shares of certain RICs may only be acquired at a total price equal to the net asset value of such shares plus a "load charge" which normally is computed as a percentage of such net asset value.

In such a case, if the shareholder redeems his shares, it is often possible for the shareholder to subsequently acquire shares in the same RIC, or in a RIC with the same investment adviser, without the payment of an additional load charge. Prior to the enactment, in 1989, of Section 852(f),59 it was possible for a shareholder to obtain a current capital loss for the amount of the load charge by first acquiring shares in a related RIC (i.e., a RIC with the same investment adviser) and then exchanging the shares for shares in the RIC in which he wished to actually invest.

Section 852(f) excludes load charges from the computation of a taxpayer's basis in the shares of a RIC (for purposes of computing both gains and losses), if such shares are disposed of within 90 days after such shares were acquired and the taxpayer subsequently acquires shares in the same RIC or in another RIC and the otherwise applicable load charge is reduced by reason of a reinvestment right. The provision only applies to the extent of the amount of the reduction in load charges by reason of the reinvestment right.

Section 852(f) can result in a retroactive adjustment to the amount of gain or loss on the sale of shares in a RIC, if shares in the same RIC, or in a second RIC, are subsequently purchased with a reinvestment right. The Act amends Section 852(f) to limit its application to situations where the subsequently purchased shares are acquired no later than January 31 of the following calendar year. The amendment applies to load charges incurred in taxable years beginning after the Date of Enactment.

Comment: The amendment to Section 852(f) was made in light of the cost basis reporting rules.

Repeal of Additional Penalty on Payment of Deficiency Dividends

The Act repeals the additional penalty applicable to the payment of a deficiency dividend by a RIC.

Explanation

If there is a determination that a RIC has a tax deficiency with respect to a prior taxable year, the RIC can distribute a "deficiency dividend," to its current shareholders, that can be related back to the prior taxable year for purposes of computing the RIC's dividends paid deduction (and taxable income and gains) in such prior year.60

A RIC paying a deficiency dividend is subject to an interest charge computed on the amount of the deficiency dividend distributed by the RIC. In addition, prior to the Act, a RIC was also liable for an additional penalty equal to the lesser of (1) the amount of the interest charge, or (2) one-half of the amount of the deficiency dividend.61 The Act repeals the additional penalty on the payment of deficiency dividends. The repeal of the penalty applies to taxable years beginning after the Date of Enactment.

Comment: The repeal of the additional penalty on deficiency dividends paid by RICs conforms to the prior repeal of the additional penalty on the payment of similar deficiency dividends by REITs. As noted above, the repeal of the penalty applies "to taxable years beginning after" the Date of Enactment. Presumably this means that deficiency dividends distributed in taxable years beginning after the Date of Enactment will not be subject to the penalty, even if the deficiency dividend relates back to a taxable year prior to the Date of Enactment.

Footnotes

26 Section 855.

27 Section 855(a)(1).

28 Section 6072(b).

29 Section 19 of the 1940 Act has rules requiring notices to shareholders identifying the source of distributions from sources other than net income.

30 Section 852(b)(5).

31 Section 853.

32 See Rev. Rul. 74–463, 1974–2 C.B. 96.

33 Section 302(b)(3).

34 Section 302(c).

35 Section 302(b)(2).

36 Section 302(b)(1).

37 See Section 302(b)(2).

38 See Rev. Rul. 76–385, 1976–2 C.B. 92; Rev. Rul. 78–60, 1978–1 C.B. 81.

39 See Section 67(c)(2)(B).

40 Section 267(f).

41 Section 852(b)(4)(B).

42 Section 852(b)(4)(A).

43 Section 852(b)(3).

44 Section 852(b)(3)(C).

45 Id.

46 Treas. Reg. Section 1.852-11.

47 Sections 4982(e)(5) and 4982(e)(6).

48 Sections 852(b)(8) and 852(b)(10).

49 Treas. Reg. Section 1.852-11.

50 1976–2 C.B. 211.

51 Rev. Rul. 76-299, 1976-2 C.B. 211.

52 GCM 36503.

53 Expenses of such a RIC generally are disallowed in whole or in part under Section 265(a)(3).

54 PLR 8722108.

55 Section 4982(f).

56 Treas. Reg. Section 1.817-5(f).

57 See Rev. Rul. 94-62, 1994-2 C.B. 164, as supplemented by Rev. Rul. 2007-58, I.R.B. 2007-37.

58 Section 4982(c)(1)(B).

59 Section 852(f) was added to the Code by the Omnibus Budget Reconciliation Act of 1989, P.L. 101-239.

60 Section 860.

61 Section 6697.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.