Dechert: Reduced Cash Requirement in Part Stock and Part Cash Dividends: New IRS Guidance on RIC and REIT Distributions | Practical Law

Dechert: Reduced Cash Requirement in Part Stock and Part Cash Dividends: New IRS Guidance on RIC and REIT Distributions | Practical Law

This law firm publication by Dechert discusses the IRS Revenue Procedure 2020-19 (RP 2020-19) issued May 4, 2020, which allows regulated investment companies (RICs) and real estate investment trusts (REITs) to limit their dividends to a maximum 10% cash between April 1, 2020, and December 31, 2020, if certain procedures are followed. The goal of this initiative is to allow RICs and REITs to increase liquidity in response to the COVID-19 pandemic.

Dechert: Reduced Cash Requirement in Part Stock and Part Cash Dividends: New IRS Guidance on RIC and REIT Distributions

by Dechert LLP
Published on 14 May 2020 • USA (National/Federal)
This law firm publication by Dechert discusses the IRS Revenue Procedure 2020-19 (RP 2020-19) issued May 4, 2020, which allows regulated investment companies (RICs) and real estate investment trusts (REITs) to limit their dividends to a maximum 10% cash between April 1, 2020, and December 31, 2020, if certain procedures are followed. The goal of this initiative is to allow RICs and REITs to increase liquidity in response to the COVID-19 pandemic.
View PDF