Form 976

(Rev. November 2018) 

Department of the Treasury 

Internal Revenue Service 

Claim for Deficiency Dividends Deductions by a 

Personal Holding Company, Regulated Investment 

Company, or Real Estate Investment Trust

(Under Section 547 or 860 of the Internal Revenue Code)

OMB No. 1545-0123 

Name of entity

Number, street, and room or suite no. (If a P.O. box, see instructions.)

City or town, state, and ZIP code

Employer identification number

Type of entity filing the claim:

Personal holding company

Regulated investment company

Real estate investment trust

1 Amount of tax deficiency . . . . . . . . . . . . . . . . . . . . . . . 1 

2 Tax year of deficiency ends: / / .

3 a Amount paid . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a 

b Date paid / / .

4 Amount unpaid. Subtract line 3a from line 1 . . . . . . . . . . . . . . . . 4 

5 How was the deficiency established?

a Tax Court Decision—Attach a copy.

b Court Judgment—Attach a copy. If established by a final judgment in a suit against the

United States for refund:

(1) Date the claim for refund was filed / / .

(2) Date the suit was brought / / .

c Closing agreement under section 7121.

d If a personal holding company, agreement under section 547(c)(3)—Attach a copy of a 

properly executed Form 2198.

e If a regulated investment company or real estate investment trust, agreement under section

860(e)(3)—Attach a copy of the agreement.

f If a regulated investment company or real estate investment trust, a statement under 

section 860(e)(4)—Attach a copy of the Form 8927 filed with the IRS (see instructions).

6 Determination date (see instructions) / / .

7 Date the deficiency dividend was distributed / / . (Attach a certified copy of the

resolution of the board of directors or other authority authorizing the payment of the deficiency dividend.)

8 Deficiency dividend was distributed as follows:

a Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a 

b Other property (attach description): 

(1) Fair market value . . . . . . . . . . . . . . . . . . . . . . . . 8b(1)

(2) Adjusted basis . . . . . . . . . . . . . . . . . . . . . . . . . 8b(2)

9 a Amount claimed as a deduction for deficiency dividends . . . . . . . . . . . . 9a 

b For a regulated investment company or real estate investment trust, enter the amount of line

9a designated or reported as capital gain dividends . . . . . . . . . . . . . . 9b

10 Only personal holding companies must complete line 10.

(a) Name and address of each shareholder

(b) Class of stock and number of

shares of each class of stock held at

date of payment of deficiency dividend

(c) Amount of deficiency dividend

paid to each shareholder on each

class of stock

Sign 

Here

Under penalties of perjury, I declare that I have examined this claim, including accompanying schedules and statements, and to the best of my knowledge and 

belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

▲

Signature of officer Date ▲

Title

Paid 

Preparer 

Use Only

Print/Type preparer’s name Preparer’s signature Date Check if 

self-employed

PTIN

Firm’s name ▶

Firm’s address ▶

Firm’s EIN ▶

Phone no.

For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat. No. 17061B Form 976 (Rev. 11-2018)
Form 976 (Rev. 11-2018) Page 2 

Instructions

Section references are to the Internal Revenue Code unless otherwise noted.

Future Developments

For the latest information about developments related to Form 976 and its 

instructions, such as legislation enacted after they were published, go to 

www.irs.gov/Form976.

Purpose of form. File Form 976 for a personal holding company (PHC),

regulated investment company (RIC), or real estate investment trust (REIT) 

that is claiming a deficiency dividend deduction under section 547 or 860. If 

the claim is allowed, taxpayers will be relieved, in whole or in part, from the 

payment of certain taxes (or allowed a credit or refund of certain taxes). In 

addition, a RIC or REIT will owe interest determined with respect to the 

amount of the deficiency dividend deduction allowed. See sections 860(a), 

860(c), 6601, and 6621. The Service will notify the RIC or REIT of the amount 

of interest.

When and where to file. File Form 976 within 120 days after the

determination date (defined below). A PHC must file Form 976 with the IRS 

office where the determination of PHC status was made. A RIC or a REIT 

must file Form 976 with the Internal Revenue Service Center where the 

income tax return for the tax year for which the determination applies was 

filed, unless the situations below apply.

If the determination is made by a RIC or REIT under section 860(e)(4), file 

Form 976 with the Internal Revenue Service, P.O. Box 9941, Mail Stop 4912, 

Ogden, UT 84409. This is the same address for filing Form 8927, 

Determination Under Section 860(e)(4) by a Qualified Investment Entity.

If the determination is from an agreement with the delegate (under section 

547(c)(3) or 860(e)(3)) any claim resulting from the deficiency dividend 

deduction may be filed with the delegate or corresponding IRS office.

Deficiency dividends. Deficiency dividends must be distributed no later than 

90 days after the determination date (defined below) and prior to filing 

Form 976.

The deficiency dividend must be of such a nature as would have permitted 

its inclusion in the computation of the deduction for dividends paid under 

section 561 for the tax year for which the tax liability exists, if it had been 

distributed during that year.

Determination date. If the determination was made by:

• A decision of the Tax Court, the determination date is the date the decision 

becomes final under section 7481.

• A judgment, decree, or order by a court, the determination date is the date 

the judgment, decree, or order becomes final.

• A closing agreement made under section 7121, the determination date is 

the date the agreement is approved by the Commissioner.

• An agreement between the IRS and the taxpayer under section 547(c)(3) 

(Form 2198) (see below) or section 860(e)(3) and the signed copy of the 

agreement is sent to the taxpayer by registered mail, the determination date 

is the date of the registration. If the agreement is sent by certified mail, the 

determination date is the date of the postmark on the sender’s receipt. But if 

the dividend is paid before the registration or postmark date, and on or after 

the date the agreement is signed by the delegate of the Commissioner, the 

determination date is the date the agreement was signed.

• A RIC or REIT under section 860(e)(4) (Form 8927), in general, the 

determination date is the date Form 8927 was mailed to the IRS. See Rev. 

Proc. 2009-28 for more information. A RIC or REIT should retain written 

evidence with its records to establish the date Form 8927 was mailed.

Enter this date on line 6.

Form 2198. Form 2198, Determination of Liability for Personal Holding

Company Tax Section 547(c)(3) of the Internal Revenue Code, is used as the 

agreement required by section 547(c)(3). The form is jointly signed by a 

delegate of the Commissioner of Internal Revenue and a qualified officer of 

the PCH to establish the PCH’s tax liability.

Claim for credit or refund. If the allowance of the deficiency dividend

deduction results in an overpayment of tax, the taxpayer must file an

amended income tax return in addition to Form 976 to obtain a credit or

refund of the overpayment.

Corporate acquisitions. When the assets of one corporation are acquired 

by another corporation in a distribution or transfer described in section 

381(a), see sections 381(c)(17) and 381(c)(23) for special rules for claiming a 

deficiency dividend deduction.

Address. Include the suite, room, or other unit number after the street

address. If the Post Office does not deliver mail to the street address and the 

taxpayer has a P.O. box, show the box number instead of the street address.

Line 1. Enter the amount of the tax liability established by the determination 

without taking into account the deficiency dividend deduction claimed and 

without regard to whether the tax liability is (or was) a deficiency as defined 

under section 6211(a)(1).

Attach a detailed statement that discloses the computation of the tax 

deficiency amount reported on line 1. This statement should identify each 

amount and item that changes income, expenses or credits as reported on 

the original or amended Form 1120-REIT, Form 1120-RIC, or Schedule PH 

(Form 1120), as applicable. Also, provide an explanation for these changes. 

For RICs or REITs that are partners in a partnership subject to the 

centralized partnership audit regime set out in sections 6221 through 6241 

(as amended by the Bipartisan Budget Act of 2015), this detailed statement 

meets part of the documentation requirements for purposes of sections 

6225(c) and 6226 and the regulations thereunder with respect to adjustments 

allocated to RICs or REITs.

Line 2. Enter the ending date of the tax year for which the deficiency

dividend deduction is claimed. A separate Form 976 must be filed for each 

deficiency dividend deduction claimed.

Line 3a. Enter the amount paid, if any, of the tax liability entered on line 1 

without taking into account the deficiency dividend deduction.

Line 5f. A RIC or REIT can file Form 8927 with the IRS to make a selfdetermination. If a statement is used instead of Form 8927, attach a copy of 

the statement to Form 976.

Line 6. See Determination date, earlier, for more information.

Line 8(b). If a stock distribution by a publicly traded RIC or REIT meets all 

the requirements of section 3.02 of Rev. Proc. 2010-12, the RIC or REIT that 

made the distribution must enter the fair market value of the stock distributed 

on line 8(b)(1) and is not required to complete line 8(b)(2). See Rev. Proc. 

2010-12 for more information.

Signature. The return must be signed and dated by the president, vice

president, treasurer, assistant treasurer, chief accounting officer, or any other 

officer (such as tax officer) authorized to sign. A receiver, trustee, or assignee 

must sign and date any return filed on behalf of the company or trust.

If an officer completed Form 976, the Paid Preparer Use Only space under 

“Signature of officer” should remain blank. If someone prepares Form 976 

and does not charge the corporation, that person should not sign the return. 

Certain others who prepare Form 976 should not sign. For example, a 

regular, full-time employee, such as a clerk, secretary, etc., should not sign.

Generally, anyone who is paid to prepare Form 976 must sign the return 

and fill in the other blanks in the “Paid Preparer Use Only” section of the 

return.

The preparer required to sign the return must complete the required 

preparer information and:

• Sign it, by hand, in the space provided for the preparer’s signature 

(signature stamps or labels are not acceptable); and

• Give a copy of Form 976 to the taxpayer in addition to the copy filed with 

the IRS.

Paperwork Reduction Act Notice. We ask for the information on this form 

to carry out the Internal Revenue laws of the United States. We need it to 

ensure that you are complying with these laws and to allow us to figure and 

collect the right amount of tax.

You are not required to provide the information requested on a form that is 

subject to the Paperwork Reduction Act unless the form displays a valid 

OMB control number. Books or records relating to a form or its instructions 

must be retained as long as their content may become material in the 

administration of any Internal Revenue law. Generally, tax return and return 

information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on 

individual circumstances. The estimated average time is:

Recordkeeping . . . . . . . . . . . . 5 hr., 44 min.

Learning about the law or the form . . . . . . . . . 53 min.

Preparing, copying, assembling, and 

sending the form to the IRS . . . . . . . . . . 1 hr., 2 min.

If you have comments concerning the accuracy of these time estimates or 

suggestions for making this form simpler, we would be happy to hear from 

you. You can send us comments from www.irs.gov/FormComments. Or you 

can also send your comments to the Internal Revenue Service, Tax Forms 

and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, 

DC 20224. Do not send this form to this office. Instead, see When and where 

to file above.