Page:United States Statutes at Large Volume 124.djvu/3571

 124 STAT. 3545 PUBLIC LAW 111–325—DEC. 22, 2010 (1) INTEREST-RELATED DIVIDENDS.—Subparagraph (C) of section 871(k)(1) is amended by striking all that precedes ‘‘any taxable year of the company beginning’’ and inserting the fol- lowing: ‘‘(C) INTEREST-RELATED DIVIDEND.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—Except as provided in clause (ii), an interest related dividend is any dividend, or part thereof, which is reported by the company as an interest related dividend in written statements fur- nished to its shareholders. ‘‘(ii) EXCESS REPORTED AMOUNTS.—If the aggregate reported amount with respect to the company for any taxable year exceeds the qualified net interest income of the company for such taxable year, an interest related dividend is the excess of— ‘‘(I) the reported interest related dividend amount, over ‘‘(II) the excess reported amount which is allo- cable to such reported interest related dividend amount. ‘‘(iii) ALLOCATION OF EXCESS REPORTED AMOUNT.— ‘‘(I) IN GENERAL.—Except as provided in sub- clause (II), the excess reported amount (if any) which is allocable to the reported interest related dividend amount is that portion of the excess reported amount which bears the same ratio to the excess reported amount as the reported interest related dividend amount bears to the aggregate reported amount. ‘‘(II) SPECIAL RULE FOR NONCALENDAR YEAR TAXPAYERS.—In the case of any taxable year which does not begin and end in the same calendar year, if the post-December reported amount equals or exceeds the excess reported amount for such tax- able year, subclause (I) shall be applied by sub- stituting ‘post-December reported amount’ for ‘aggregate reported amount’ and no excess reported amount shall be allocated to any dividend paid on or before December 31 of such taxable year. ‘‘(iv) DEFINITIONS.—For purposes of this subpara- graph— ‘‘(I) REPORTED INTEREST RELATED DIVIDEND AMOUNT.—The term ‘reported interest related divi- dend amount’ means the amount reported to its shareholders under clause (i) as an interest related dividend. ‘‘(II) EXCESS REPORTED AMOUNT.—The term ‘excess reported amount’ means the excess of the aggregate reported amount over the qualified net interest income of the company for the taxable year. ‘‘(III) AGGREGATE REPORTED AMOUNT.—The term ‘aggregate reported amount’ means the aggre- gate amount of dividends reported by the company under clause (i) as interest related dividends for Applicability. 26 USC 871.