Ezel / IRS Rulings / 1043031
Chief Counsel Advice 1043031 Released October 29, 2010 Advice

Cash and stock dividend rules apply to earlier deficiency dividends

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This page covers one taxpayer's ruling from 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel addressed a REIT question involving deficiency dividends and cash or stock dividends. After rereading Rev. Proc. 2010-15, the advice concludes that the cash and stock dividend rules apply to a deficiency dividend for a year preceding the effective date of that revenue procedure and its predecessors.

Ruling snapshot

  • Question: Do the cash and stock dividend rules apply to a deficiency dividend for a year before Rev. Proc. 2010-15 and its predecessors took effect?
  • Outcome: Advice given
  • Key authorities: IRC § 860; Rev. Proc. 2010-15

Full text (IRS public release)

ID: CCA-413159-10 Number: 201043031
Release Date: 10/29/2010
Office: ----------------
UILC: 860.00-00

From: -----------------------
Sent: Tuesday April 13, 2010 3:09 PM
To: --------------------
Cc:
Subject: REIT Question – Deficiency Dividends and Cash/Stock Dividends

----------I reread Rev. Proc. 2010-15 and spoke to ----------------------------and the cash/stock dividend rules would apply to a deficiency dividend for a year preceding the effective date of the revenue procedure and its predecessors. -------

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