I.R.C. § 591(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.
I.R.C. § 591(b) Mutual Savings Bank To Include Certain Banks With Capital Stock —
For purposes of this part, the term “mutual savings bank” includes any bank—
I.R.C. § 591(b)(1) —
which has capital stock represented by shares, and
I.R.C. § 591(b)(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; Oct. 16, 1962,
Pub. L. 87-834, 6(f), 76 Stat. 984; Aug. 13, 1981, Pub. L. 97-34, title II, 245(a), 95 Stat. 255.)
BACKGROUND NOTES
Amendments to Part
1986—Pub. L. 99-514, title IX, 904(b)(2), (c)(2)(A), Oct. 22, 1986, 100 Stat. 2385, as amended by Pub. L. 100-647, title IV, 4012(a)(2), Nov. 10, 1988, 102 Stat. 3656, provided that, applicable to
transfers after Dec. 31, 1989, in taxable years ending after that date, the analysis
is amended by striking out item 597.
1981--Pub. L. 97-34, title II, 244(b), Aug. 13, 1981, 95 Stat. 255, added item 597.
1976--Pub. L. 94-455, title XIX, 1901(b)(19), Oct. 4, 1976, 90 Stat. 1796, struck out item 592 “Deduction
for repayment of certain loans”.
1969--Pub. L. 91-172, title IV, 434(b)(2), Dec. 30, 1969, 83 Stat. 625, added item 596.
1962--Pub. L. 87-834, 6(d), Oct. 16, 1962, 76 Stat. 984, substituted “Reserves for losses on loans” for
“Additions to reserve for bad debts” in item 593, and added item 595.
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 sections 591 and 593
of this title] shall apply with respect to taxable years ending after the date of
the enactment of this Act [Aug. 13, 1981].”
[592. Repealed. Pub. L. 94-455, title XIX, 1901(a)(83), Oct. 4, 1976, 90 Stat. 1778]
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 205, authorized a deduction by mutual
savings banks for repayment of loans made before Sept. 1, 1951, by the United States
or any agency or instrumentality thereof, or any mutual fund established under the
authority of the laws of any State.
Effective Date of Repeal
Repeal effective with respect to taxable years beginning after Dec. 31, 1976, see
section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title.
