SECTION 6. DRAFTING

INFORMATION

The principal author of this revenue procedure is T. Ian Russell of the Office of Associate Chief Counsel (Corporate). For further information regarding this revenue procedure, contact T. Ian Russell at (202) 622–7550 (not a toll-free call).

the REIT during January of the following calendar year.

.12 Section 858 provides, in relevant part, that if a REIT declares a dividend before the time prescribed by law for the filing of its return for a taxable year (including the period of any extension of time granted for filing such return), and distributes the amount of such dividend to shareholders in the 12-month period following the close of such taxable year and not later than the date of the first regular dividend payment made after such declaration, the amount so declared and distributed shall, to the extent the REIT elects in such return, be generally considered as having been paid during such taxable year. Except as provided in section 857(b)(9), the amounts distributed pursuant to section 858 shall be treated as received by the shareholder in the taxable year in which the distribution is made.

.13 If there is a determination with respect to a RIC or a REIT that results in an adjustment that produces a tax deficiency for any taxable year, there are procedures under section 860 that enable the RIC or REIT to make a current distribution to its shareholders (a “deficiency dividend”) that increases the RIC’s or REIT’s dividends-paid deduction for the earlier year of the deficiency.