AUTHORITY FOR ALTERNATIVE REMEDIES TO ADDRESS CERTAIN REIT DISTRIBUTION FAILURES.

SEC. 315. AUTHORITY FOR ALTERNATIVE REMEDIES TO ADDRESS CERTAIN REIT DISTRIBUTION FAILURES. (a) In General.—Subsection (e) of section 562 is amended— (1) by striking “In the case of a real estate investment trust” and inserting the following: “(1) Determination of earnings and profits for purposes of dividends paid deduction.—In the case of a real estate investment trust” , and (2) by adding at the end the following new paragraph: “(2) Authority to provide alternative remedies for certain failures.—In the case of a failure of a distribution by a real estate investment trust to comply with the requirements of subsection (c), the Secretary may provide an appropriate remedy to cure such failure in lieu of not considering the distribution to be a dividend for purposes of computing the dividends paid deduction if— “(A) the Secretary determines that such failure is inadvertent or is due to reasonable cause and not due to willful neglect, or “(B) such failure is of a type of failure which the Secretary has identified for purposes of this paragraph as being described in subparagraph (A).” . (b) [26 U.S.C. 562 note] Effective Date.—The amendments made by this section shall apply to distributions in taxable years beginning after December 31, 2015.