[Code of Federal Regulations]
[Title 26, Volume 9]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.853-3]

[Page 44-45]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec.  1.853-3  Notice to shareholders.

    (a) General rule. If a regulated investment company makes an 
election under section 853(a), in the manner provided in Sec.  1.853-4, 
the investment company is required, under section 853(c), to furnish its 
shareholders with a written notice mailed not later than 45 days (30 
days for taxable years ending before February 26, 1964) after the close 
of its taxable year. The notice must designate the shareholder's portion 
of foreign taxes paid to each such country or possession and the portion 
of the dividend which represents income derived from sources within each 
such country or possession. For purposes of section 853(b)(2) and 
paragraph (b) of Sec.  1.853-2, the amount that a shareholder may treat 
as his proportionate share of foreign taxes paid and the amount to be 
included as gross income derived from any foreign country or possession 
of the United States shall not exceed the amounts so designated by the 
company in such written notice. If, however, the amount designated by 
the company in the notice exceeds the shareholder's proper proportionate 
share of foreign taxes or gross income from sources within any foreign 
country or possession, the shareholder is limited to the amount 
correctly ascertained.
    (b) Shareholder of record custodian of certain unit investment 
trusts. In any case where a notice is mailed pursuant to paragraph (a) 
of this section by a regulated investment company with respect to a 
taxable year of the regulated investment company ending after December 
8, 1970 to a shareholder of record who is a nominee acting as a 
custodian of a unit investment trust described in section 851(f)(1) and 
paragraph (b) of Sec.  1.851-7, the nominee shall furnish each holder of 
an interest in such trust with a written notice mailed on or before the 
55th day following the

[[Page 45]]

close of the regulated investment company's taxable year. The notice 
shall designate the holder's proportionate share of the amounts of 
foreign taxes paid to each such country or possession and the holder's 
proportionate share of the dividend which represents income derived from 
sources within each country or possession shown on the notice received 
by the nominee pursuant to paragraph (a) of this section. The notice 
shall include the name and address of the nominee identified as such. 
This paragraph shall not apply if the regulated investment company 
agrees with the nominee to satisfy the notice requirements of paragraph 
(a) of this section with respect to each holder of an interest in the 
unit investment trust whose shares are being held by the nominee as 
custodian and not later than 45 days following the close of the 
company's taxable year, files with the Internal Revenue Service office 
where such company's return for the taxable year is to be filed, a 
statement that the holders of the unit investment trust with whom the 
agreement was made have been directly notified by the regulated 
investment company. Such statement shall include the name, sponsor, and 
custodian of each unit investment trust whose holders have been directly 
notified. The nominee's requirements under this paragraph shall be 
deemed met if the regulated investment company transmits a copy of such 
statement to the nominee within such 45-day period: Provided however, if 
the regulated investment company fails or is unable to satisfy the 
requirements of this paragraph with respect to the holders of interest 
in the unit investment trust, it shall so notify the Internal Revenue 
Service within 45 days following the close of its taxable year. The 
custodian shall, upon notice by the Internal Revenue Service that the 
regulated investment company has failed to comply with the agreement, 
satisfy the requirements of this paragraph within 30 days of such 
notice.

[T.D. 7187, 37 FR 13257, July 6, 1972]