# Dividends Paid Deduction for Stock Held in Employee Stock Ownership Plan
> **IRS** · Final regulations. · Published 2006-08-30 · Effective 2006-08-30 · 71 FR 51471
## Document
- **Document number:** E6-14420
- **Category:** tax-irs
- **Sub-agency:** IRS
- **Federal Register citation:** 71 FR 51471
- **CFR reference:** 26 CFR 1
- **Publication date:** 2006-08-30
- **Effective date:** 2006-08-30
- **Treasury docket:** TD 9282
## Abstract

This document contains final regulations under sections 162(k) and 404(k) of the Internal Revenue Code (Code) providing that a payment in redemption of employer securities held by an employee stock ownership plan (ESOP) is not deductible. These regulations generally affect administrators of, employers maintaining, participants in, and beneficiaries of ESOPs. In addition, they will affect corporations that make distributions in redemption of stock held in an ESOP.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2006/08/30/E6-14420/dividends-paid-deduction-for-stock-held-in-employee-stock-ownership-plan)
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