§ 562.
(b)
Distributions in liquidation
(1)
Except in the case of a personal holding company described in section 542—
(A)
in the case of amounts distributed in liquidation, the part of such distribution which is properly chargeable to earnings and profits accumulated after February 28, 1913, shall be treated as a dividend for purposes of computing the dividends paid deduction, and
(B)
in the case of a complete liquidation occurring within 24 months after the adoption of a plan of liquidation, any distribution within such period pursuant to such plan shall, to the extent of the earnings and profits (computed without regard to capital losses) of the corporation for the taxable year in which such distribution is made, be treated as a dividend for purposes of computing the dividends paid deduction.
For purposes of subparagraph (A), a liquidation includes a redemption of stock to which section 302 applies. Except to the extent provided in regulations, the preceding sentence shall not apply in the case of any mere holding or investment company which is not a regulated investment company.
(2)
In the case of a complete liquidation of a personal holding company, occurring within 24 months after the adoption of a plan of liquidation, the amount of any distribution within such period pursuant to such plan shall be treated as a dividend for purposes of computing the dividends paid deduction, to the extent that such amount is distributed to corporate distributees and represents such corporate distributees’ allocable share of the undistributed personal holding company income for the taxable year of such distribution computed without regard to this paragraph and without regard to subparagraph (B) of section 316(b)(2).
(e)
Special rules for real estate investment trusts
(1)
Determination of earnings and profits for purposes of dividends paid deduction
In the case of a real estate investment trust, in determining the amount of dividends under section 316 for purposes of computing the dividends paid deduction—
(A)
the earnings and profits of such trust for any taxable year (but not its accumulated earnings) shall be increased by the amount of gain (if any) on the sale or exchange of real property which is taken into account in determining the taxable income of such trust for such taxable year (and not otherwise taken into account in determining such earnings and profits), and
(B)
section 857(d)(1) shall be applied without regard to subparagraph (B) thereof.
(2)
Authority to provide alternative remedies for certain failures
In the case of a failure of a distribution by a real estate investment trust to comply with the requirements of subsection (c), the Secretary may provide an appropriate remedy to cure such failure in lieu of not considering the distribution to be a dividend for purposes of computing the dividends paid deduction if—
(A)
the Secretary determines that such failure is inadvertent or is due to reasonable cause and not due to willful neglect, or
(B)
such failure is of a type of failure which the Secretary has identified for purposes of this paragraph as being described in subparagraph (A).
([Aug. 16, 1954, ch. 736], [68A Stat. 198]; [Pub. L. 88–272, title II, § 225(f)(3)], Feb. 26, 1964, [78 Stat. 88]; [Pub. L. 97–248, title II, § 222(e)(7)], Sept. 3, 1982, [96 Stat. 480]; [Pub. L. 97–448, title I, § 102(c)(2)], Jan. 12, 1983, [96 Stat. 2370]; [Pub. L. 99–514, title VI, § 657(a)], title XVIII, § 1804(d)(1), Oct. 22, 1986, [100 Stat. 2299], 2800; [Pub. L. 108–357, title IV, § 413(c)(9)], Oct. 22, 2004, [118 Stat. 1507]; [Pub. L. 111–325, title III, § 307(a)], (b), Dec. 22, 2010, [124 Stat. 3550]; [Pub. L. 114–113, div. Q, title III], §§ 314(a), (b), 315(a), 320(b), Dec. 18, 2015, [129 Stat. 3093], 3097.)