
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC591]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
                   Subchapter H--Banking Institutions
 
                   PART II--MUTUAL SAVINGS BANKS, ETC.
 
Sec. 591. Deduction for dividends paid on deposits


(a) In general

    In the case of mutual savings banks, cooperative banks, and 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.

(Aug. 16, 1954, ch. 736, 68A Stat. 204; Pub. L. 87-834, Sec. 6(f), Oct. 
16, 1962, 76 Stat. 984; Pub. L. 97-34, title II, Sec. 245(a), Aug. 13, 
1981, 95 Stat. 255.)


                               Amendments

    1981--Pub. L. 97-34 designated existing provisions as subsec. (a), 
inserted heading ``In general'', and added subsec. (b).
    1962--Pub. L. 87-834 included other savings institutions chartered 
and supervised as savings and loan or similar associations under Federal 
or State law, and authorized amounts paid as interest as a deduction.


                    Effective Date of 1981 Amendment

    Section 246(d) of Pub. L. 97-34 provided that: ``The amendments made 
by section 245 [amending this section and section 593 of this title] 
shall apply with respect to taxable years ending after the date of the 
enactment of this Act [Aug. 13, 1981].''

                  Section Referred to in Other Sections

    This section is referred to in sections 165, 243, 368, 465, 501, 
512, 514, 582, 593, 864, 871, 6050P, 6323 of this title.
