26 U.S.C. § 6044 — Returns regarding payments of patronage

Page 3359 TITLE 26—INTERNAL REVENUE CODE § 6044 101(k)(2)(B) of Pub. L. 91–172, set out as an Effective Date note under section 4940 of this title. § 6043A. Returns relating to taxable mergers and acquisitions (a) In general According to the forms or regulations pre- scribed by the Secretary, the acquiring corpora- tion in any taxable acquisition shall make a re- turn setting forth— (1) a description of the acquisition, (2) the name and address of each shareholder of the acquired corporation who is required to recognize gain (if any) as a result of the acqui- sition, (3) the amount of money and the fair market value of other property transferred to each such shareholder as part of such acquisition, and (4) such other information as the Secretary may prescribe. To the extent provided by the Secretary, the re- quirements of this section applicable to the ac- quiring corporation shall be applicable to the acquired corporation and not to the acquiring corporation. (b) Nominees According to the forms or regulations pre- scribed by the Secretary: (1) Reporting Any person who holds stock as a nominee for another person shall furnish in the manner prescribed by the Secretary to such other per- son the information provided by the corpora- tion under subsection (d). (2) Reporting to nominees In the case of stock held by any person as a nominee, references in this section (other than in subsection (c)) to a shareholder shall be treated as a reference to the nominee. (c) Taxable acquisition For purposes of this section, the term ‘‘taxable acquisition’’ means any acquisition by a cor- poration of stock in or property of another cor- poration if any shareholder of the acquired cor- poration is required to recognize gain (if any) as a result of such acquisition. (d) Statements to be furnished to shareholders According to the forms or regulations pre- scribed by the Secretary, every person required to make a return under subsection (a) shall fur- nish to each shareholder whose name is required to be set forth in such return a written state- ment showing— (1) the name, address, and phone number of the information contact of the person required to make such return, (2) the information required to be shown on such return with respect to such shareholder, and (3) such other information as the Secretary may prescribe. The written statement required under the pre- ceding sentence shall be furnished to the share- holder on or before January 31 of the year fol- lowing the calendar year during which the tax- able acquisition occurred. (Added Pub. L. 108–357, title VIII, § 805(a), Oct. 22, 2004, 118 Stat. 1573.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 108–357, title VIII, § 805(d), Oct. 22, 2004, 118 Stat. 1574, provided that: ‘‘The amendments made by this section [enacting this section and amending sec- tion 6724 of this title] shall apply to acquisitions after the date of the enactment of this Act [Oct. 22, 2004].’’ § 6044. Returns regarding payments of patronage dividends (a) Requirement of reporting (1) In general Except as otherwise provided in this section, every cooperative to which part I of sub- chapter T of chapter 1 applies, which makes payments of amounts described in subsection (b) aggregating $10 or more to any person dur- ing any calendar year, shall make a return ac- cording to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the person to whom paid. (2) Returns required by the Secretary Every such cooperative which makes pay- ments of amounts described in subsection (b) aggregating less than $10 to any person during any calendar year shall, when required by the Secretary, make a return setting forth the ag- gregate amount of such payments and the name and address of the person to whom paid. (b) Amounts subject to reporting (1) General rule Except as otherwise provided in this section, the amounts subject to reporting under sub- section (a) are— (A) the amount of any patronage dividend (as defined in section 1388(a)) which is paid in money, qualified written notices of allo- cation (as defined in section 1388(c)), or other property (except nonqualified written notices of allocation as defined in section 1388(d)), (B) any amount described in section 1382(c)(2)(A) (relating to certain nonpatron- age distributions) which is paid in money, qualified written notices of allocation, or other property (except nonqualified written notices of allocation) by an organization ex- empt from tax under section 521 (relating to exemption of farmers’ cooperatives from tax), (C) any amount described in section 1382(b)(2) (relating to redemption of non- qualified written notices of allocation) and, in the case of an organization described in section 1381(a)(1), any amount described in section 1382(c)(2)(B) (relating to redemption of nonqualified written notices of allocation paid with respect to earnings derived from sources other than patronage), and (D) the amount of any per-unit retain allo- cation (as defined in section 1388(f)) which is paid in qualified per-unit retain certificates (as defined in section 1388(h)), and (E) any amount described in section 1382(b)(4) (relating to redemption of non- qualified per-unit retain certificates). Page 3360 TITLE 26—INTERNAL REVENUE CODE § 6044 (2) Exceptions The provisions of subsection (a) shall not apply, to the extent provided in regulations prescribed by the Secretary, to any payment— (A) by a foreign corporation, or (B) to a foreign corporation, a nonresident alien, or a partnership not engaged in trade or business in the United States and com- posed in whole or in part of nonresident aliens. (c) Exemption for certain consumer cooperatives A cooperative which the Secretary determines is primarily engaged in selling at retail goods or services of a type that are generally for per- sonal, living, or family use shall, upon applica- tion to the Secretary, be granted exemption from the reporting requirements imposed by subsection (a). Application for exemption under this subsection shall be made in accordance with regulations prescribed by the Secretary. (d) Determination of amount paid For purposes of this section, in determining the amount of any payment— (1) property (other than a qualified written notice of allocation or a qualified per-unit re- tain certificate) shall be taken into account at its fair market value, and (2) a qualified written notice of allocation or a qualified per-unit retain certificate shall be taken into account at its stated dollar amount. (e) Statements to be furnished to persons with respect to whom information is required Every cooperative required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing— (1) the name, address, and phone number of the information contact of the cooperative re- quired to make such return, and (2) the aggregate amount of payments to the person required to be shown on the return. The written statement required under the pre- ceding sentence shall be furnished (either in per- son or in a statement mailing by first-class mail which includes adequate notice that the state- ment is enclosed) to the person on or before Jan- uary 31 of the year following the calendar year for which the return under subsection (a) was re- quired to be made and shall be in such form as the Secretary may prescribe by regulations. (Aug. 16, 1954, ch. 736, 68A Stat. 746; Pub. L. 87–834, § 19(b), Oct. 16, 1962, 76 Stat. 1054; Pub. L. 89–809, title II, § 211(d), Nov. 13, 1966, 80 Stat. 1584; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, §§ 304, 308(a), Sept. 3, 1982, 96 Stat. 587, 591; Pub. L. 98–67, title I, §§ 102(a), 108(c), Aug. 5, 1983, 97 Stat. 369, 383; Pub. L. 99–514, title XV, § 1501(c)(3), Oct. 22, 1986, 100 Stat. 2737; Pub. L. 104–168, title XII, § 1201(a)(4), July 30, 1996, 110 Stat. 1469.) Editorial Notes AMENDMENTS 1996—Subsec. (e)(1). Pub. L. 104–168 substituted ‘‘name, address, and phone number of the information contact’’ for ‘‘name and address’’. 1986—Subsec. (e). Pub. L. 99–514, in amending subsec. (e) generally, substituted ‘‘information is required’’ for ‘‘information is furnished’’ in heading and, in text, sub- stituted references to persons required to make a re- turn for former references to persons making a return and struck out provision directing that no statement was required if the aggregate amount of payments made to the person as shown on the return was less than $10. 1983—Pub. L. 98–67 substituted in subsec. (e) ‘‘The written statement required under the preceding sen- tence shall be furnished (either in person or in a sepa- rate mailing by first-class mail) to the person on or be- fore January 31 of the year following the calendar year for which the return under subsection (a) was made, and shall be in such form as the Secretary may pre- scribe by regulations’’ for ‘‘The written statement re- quired under the preceding sentence shall be furnished to the person on or before January 31 of the year fol- lowing the calendar year for which the return under subsection (a)(1) was made’’ and repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below. 1982—Subsecs. (a)(1), (b)(1), (e), (f). Pub. L. 97–248 pro- vided that, applicable to payments of interest, divi- dends, and patronage dividends paid or credited after June 30, 1983, subsecs. (a)(1), (b)(1), and (e) are amended and a new subsec. (f) is added. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed sub- title A (§§ 301–308) of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 1966—Subsec. (b)(1). Pub. L. 89–809, § 211(d)(1), added subpars. (D) and (E). Subsec. (d). Pub. L. 89–809, § 211(d)(2), inserted ref- erences to qualified per-unit retain certificates. 1962—Pub. L. 87–834 substituted ‘‘Returns regarding payments of patronage dividends’’ for ‘‘Returns regard- ing patronage dividends’’ in section catchline and amended text generally. Prior to amendment, text read as follows: ‘‘(a) PAYMENTS OF $100 OR MORE.—Any corporation al- locating amounts as patronage dividends, rebates, or refunds (whether in cash, merchandise, capital stock, revolving fund certificates, retain certificates, certifi- cates of indebtedness, letters of advice, or in some other manner that discloses to each patron the amount of such dividend, refund, or rebate) shall make a return showing— ‘‘(1) The name and address of each patron to whom it has made such allocations amounting to $100 or more during the calendar year; and ‘‘(2) The amount of such allocations to each patron. ‘‘(b) PAYMENTS REGARDLESS OF AMOUNT.—If required by the Secretary or his delegate, any such corporation shall make a return of all patronage dividends, rebates, or refunds made during the calendar year to its pa- trons. ‘‘(c) EXCEPTIONS.—This section shall not apply in the case of any corporation (including any cooperative or nonprofit corporation engaged in rural electrification) described in section 501(c)(12) or (15) which is exempt from tax under section 501(a), or in the case of any cor- poration subject to a tax imposed by subchapter L of chapter 1.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–168 applicable to state- ments required to be furnished after Dec. 31, 1996 (de- termined without regard to any extension), see section 1201(b) of Pub. L. 104–168, set out as a note under sec- tion 6041 of this title. Page 3361 TITLE 26—INTERNAL REVENUE CODE § 6045 EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to returns the due date for which (determined without regard to extensions) is after Oct. 22, 1986, see section 1501(e) of Pub. L. 99–514, set out as an Effective Date note under section 6721 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by section 108(c) of Pub. L. 98–67 applica- ble with respect to payments made after Dec. 31, 1983, see section 110(a) of Pub. L. 98–67, set out as a note under section 31 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–809 applicable with respect to calendar years after 1966, see section 211(e)(2) of Pub. L. 89–809, set out as a note under section 1382 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87–834 applicable to payments of dividends and interest made on or after Jan. 1, 1963, and to payments of amounts described in subsection (b) of this section made on or after Jan. 1, 1963, with re- spect to patronage occurring on or after the first day of the first taxable year of the cooperative beginning on or after Jan. 1, 1963, see section 19(h) of Pub. L. 87–834, set out as a note under section 6042 of this title. § 6045. Returns of brokers (a) General rule Every person doing business as a broker shall, when required by the Secretary, make a return, in accordance with such regulations as the Sec- retary may prescribe, showing the name and ad- dress of each customer, with such details regard- ing gross proceeds and such other information as the Secretary may by forms or regulations re- quire with respect to such business. (b) Statements to be furnished to customers Every person required to make a return under subsection (a) shall furnish to each customer whose name is required to be set forth in such return a written statement showing— (1) the name, address, and phone number of the information contact of the person required to make such return, and (2) the information required to be shown on such return with respect to such customer. The written statement required under the pre- ceding sentence shall be furnished to the cus- tomer on or before February 15 of the year fol- lowing the calendar year for which the return under subsection (a) was required to be made. In the case of a consolidated reporting statement (as defined in regulations) with respect to any customer, any statement which would otherwise be required to be furnished on or before January 31 of a calendar year with respect to any item reportable to the taxpayer shall instead be re- quired to be furnished on or before February 15 of such calendar year if furnished with such con- solidated reporting statement. (c) Definitions For purposes of this section— (1) Broker The term ‘‘broker’’ includes— (A) a dealer, (B) a barter exchange, (C) any person who (for consideration) reg- ularly acts as a middleman with respect to property or services, and (D) any person who (for consideration) is responsible for regularly providing any serv- ice effectuating transfers of digital assets on behalf of another person. A person shall not be treated as a broker with respect to activities consisting of managing a farm on behalf of another person. (2) Customer The term ‘‘customer’’ means any person for whom the broker has transacted any business. (3) Barter exchange The term ‘‘barter exchange’’ means any or- ganization of members providing property or services who jointly contract to trade or bar- ter such property or services. (4) Person The term ‘‘person’’ includes any govern- mental unit and any agency or instrumen- tality thereof. (d) Statements required in case of certain sub- stitute payments If any broker— (1) transfers securities of a customer for use in a short sale or similar transaction, and (2) receives (on behalf of the customer) a payment in lieu of— (A) a dividend, (B) tax-exempt interest, or (C) such other items as the Secretary may prescribe by regulations, during the period such short sale or similar transaction is open, the broker shall furnish such customer a written statement (in the man- ner as the Secretary shall prescribe by regula- tions) identifying such payment as being in lieu of the dividend, tax-exempt interest, or such other item. The written statement required under the preceding sentence shall be furnished on or before February 15 of the year following the calendar year in which the payment was made. The Secretary may prescribe regulations which require the broker to make a return which includes the information contained in such written statement. (e) Return required in the case of real estate transactions (1) In general In the case of a real estate transaction, the real estate reporting person shall file a return under subsection (a) and a statement under subsection (b) with respect to such trans- action. (2) Real estate reporting person For purposes of this subsection, the term ‘‘real estate reporting person’’ means any of the following persons involved in a real estate transaction in the following order: (A) the person (including any attorney or title company) responsible for closing the transaction, (B) the mortgage lender, (C) the seller’s broker, (D) the buyer’s broker, or (E) such other person designated in regula- tions prescribed by the Secretary. Any person treated as a real estate reporting person under the preceding sentence shall be