26Title 26The US tax code, read & explained

26 U.S.C. § 591

§ 591. Deduction for dividends paid on deposits

147 words · amended 2 times · cited by 8 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

The law as written

Current through Public Law 119-102. Amendment notes omitted.

(a) In general

In the case of mutual savings banks, cooperative banks, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under Federal or State law, there shall be allowed as deductions in computing taxable income amounts paid to, or credited to the accounts of, depositors or holders of accounts as dividends or interest on their deposits or withdrawable accounts, if such amounts paid or credited are withdrawable on demand subject only to customary notice of intention to withdraw.

(b) Mutual savings bank to include certain banks with capital stock

For purposes of this part, the term “mutual savings bank” includes any bank—

(1)

which has capital stock represented by shares, and

(2)

which is subject to, and operates under, Federal or State laws relating to mutual savings bank.