124 STAT. 3542 PUBLIC LAW 111–325—DEC. 22, 2010 reported amount as the reported capital gain divi- dend 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 CAPITAL GAIN DIVIDEND AMOUNT.—The term ‘reported capital gain dividend amount’ means the amount reported to its share- holders under clause (i) as a capital gain dividend. ‘‘(II) EXCESS REPORTED AMOUNT.—The term ‘excess reported amount’ means the excess of the aggregate reported amount over the net capital gain 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 capital gain dividends for the taxable year (including capital gain dividends paid after the close of the taxable year described in section 855). ‘‘(IV) POST-DECEMBER REPORTED AMOUNT.— The term ‘post-December reported amount’ means the aggregate reported amount determined by taking into account only dividends paid after December 31 of the taxable year. ‘‘(v) ADJUSTMENT FOR DETERMINATIONS.—If there is an increase in the excess described in subparagraph (A) for the taxable year which results from a deter- mination (as defined in section 860(e)), the company may, subject to the limitations of this subparagraph, increase the amount of capital gain dividends reported under clause (i). ‘‘(vi) SPECIAL RULE FOR LOSSES LATE IN THE CAL- ENDAR YEAR.—For special rule for certain losses after October 31, see paragraph (8).’’. (2) CONFORMING AMENDMENT.—Subparagraph (B) of section 860(f)(2) is amended by inserting ‘‘or reported (as the case may be)’’ after ‘‘designated’’. (b) EXEMPT-INTEREST DIVIDENDS.—Subparagraph (A) of section 852(b)(5) is amended to read as follows: ‘‘(A) DEFINITION OF EXEMPT-INTEREST DIVIDEND.— ‘‘(i) IN GENERAL.—Except as provided in clause (ii), an exempt-interest dividend is any dividend or part thereof (other than a capital gain dividend) paid by a regulated investment company and reported by the company as an exempt-interest dividend in written statements furnished to its shareholders. 26 USC 860. Applicability.
