Consent Dividends

Consent Dividends means:
hypothetical distributions (as distinguished from actual distributions) that shareholders agree to treat as dividends on their personal tax returns. Each consenting shareholder must include the consent dividends in gross income and increase his or her stock basis. The consent must be made on Forms 972 and 973 no later than the due date of the corporate tax return. These dividends are used most frequently with respect to the personal holding company tax and the accumulated earnings tax. Former IRC (check if this IRC provision is current here) §565.

See Corporate Tax in the U.S. Legal Encyclopedia and Corporate Tax in the International Legal Encyclopedia.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.