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IRS issues notice on capital gain distributions from a RIC

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Tax Hot TopicsThe IRS on May 29 released Notice 2015-41, which provides guidance on the proper reporting and treatment of capital gain dividends from regulated investment companies (RICs).  

The notice was issued to update prior guidance (Notice 97-64) based on statutory changes to Section 852 made according to the Regulated Investment Company Modernization Act of 2010 and solely addresses RICs. The notice doesn’t address real estate investment trusts.

The updated guidance for capital gain dividends includes changes to the reporting and designation of capital gain rate groups,  shareholder treatment,  limitations on designation of capital gain dividends, deferral under Section 852(b)(8) for post-Oct. 31 capital losses, and the bifurcation adjustment described in Notice 97-64.

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Andy Cordonnier
+1 202 521 1502
andy.cordonnier@us.gt.com

Greg Fairbanks
+1 202 521 1503
andy.cordonnier@us.gt.com

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