7932 / How are dividends paid by a RIC after the close of a taxable year treated?

If a RIC declares a dividend on or before the later of (1) the 15th day of the ninth month following the close of the tax year or (2) the due date for filing the RIC’s tax return if the RIC has obtained an extension of time for filing the return, the RIC can elect to treat the dividend as being paid within the tax year. In other words, in these cases, the RIC can declare a dividend in a subsequent tax year that is treated as though it was declared in the preceding tax year for purposes of meeting the income distribution requirements that apply to RICs (see Q 7928).