26 U.S.C. § 6042 — Returns regarding payments of dividends

Page 3356 TITLE 26—INTERNAL REVENUE CODE § 6042 (1) the name, address, and phone number of the information contact of the person required to make such return, and (2) in the case of subsection (a), the aggre- gate amount of payments to the person re- quired to be shown on such return. The written statement required under the pre- ceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under sub- section (a) was made. (f) Recipient to furnish name, address, and iden- tification number; inclusion on return (1) Furnishing of information Any person with respect to whom a return or statement is required under this section to be made by another person shall furnish to such other person his name, address, and identifica- tion number at such time and in such manner as the Secretary may prescribe by regulations. (2) Inclusion on return The person to whom an identification num- ber is furnished under paragraph (1) shall in- clude such number on any return which such person is required to file under this section and to which such identification number re- lates. (Added Pub. L. 97–248, title III, § 312(a), Sept. 3, 1982, 96 Stat. 601; amended Pub. L. 104–168, title XII, § 1201(a)(2), July 30, 1996, 110 Stat. 1469; Pub. L. 105–34, title X, § 1022(a), Aug. 5, 1997, 111 Stat. 923.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this paragraph, referred to in subsec. (d)(3), is the date of enactment of Pub. L. 105–34, which was approved Aug. 5, 1997. AMENDMENTS 1997—Subsec. (d)(3). Pub. L. 105–34 added par. (3). 1996—Subsec. (e)(1). Pub. L. 104–168 substituted ‘‘name, address, and phone number of the information contact’’ for ‘‘name and address’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–34, title X, § 1022(b), Aug. 5, 1997, 111 Stat. 923, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall apply to returns the due date for which (determined without regard to any extension) is more than 90 days after the date of the en- actment of this Act [Aug. 5, 1997].’’ 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. EFFECTIVE DATE Pub. L. 97–248, title III, § 312(c), Sept. 3, 1982, 96 Stat. 603, provided that: ‘‘The amendments made by this sec- tion [enacting this section and amending section 6678 of this title] shall apply to payments and sales made after December 31, 1982.’’ § 6042. Returns regarding payments of dividends and corporate earnings and profits (a) Requirement of reporting (1) In general Every person— (A) who makes payments of dividends ag- gregating $10 or more to any other person during any calendar year, or (B) who receives payments of dividends as a nominee and who makes payments aggre- gating $10 or more during any calendar year to any other person with respect to the divi- dends so received, shall make a return according to the forms or regulations prescribed by the Secretary, set- ting forth the aggregate amount of such pay- ments and the name and address of the person to whom paid. (2) Returns required by the Secretary Every person who makes payments of divi- dends aggregating less than $10 to any other person during any calendar year shall, when required by the Secretary, make a return set- ting forth the aggregate amount of such pay- ments, and the name and address of the person to whom paid. (b) Dividend defined (1) General rule For purposes of this section, the term ‘‘divi- dend’’ means— (A) any distribution by a corporation which is a dividend (as defined in section 316); and (B) any payment made by a stockbroker to any person as a substitute for a dividend (as so defined). (2) Exceptions For purposes of this section, the term ‘‘divi- dend’’ does not include any distribution or payment— (A) to the extent provided in regulations prescribed by the Secretary— (i) by a foreign corporation, or (ii) to a foreign corporation, a non- resident alien, or a partnership not en- gaged in a trade or business in the United States and composed in whole or in part of nonresident aliens, or (B) except to the extent otherwise pro- vided in regulations prescribed by the Sec- retary, to any person described in section 6049(b)(4). (3) Special rule If the person making any payment described in subsection (a)(1)(A) or (B) is unable to de- termine the portion of such payment which is a dividend or is paid with respect to a divi- dend, he shall, for purposes of subsection (a)(1), treat the entire amount of such pay- ment as a dividend or as an amount paid with respect to a dividend. (c) Statements to be furnished to persons with respect to whom information is required Every person required to make a return under subsection (a) shall furnish to each person whose Page 3357 TITLE 26—INTERNAL REVENUE CODE § 6042 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 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. (d) Statements to be furnished by corporations to Secretary Every corporation shall, when required by the Secretary— (1) furnish to the Secretary a statement stating the name and address of each share- holder, and the number of shares owned by each shareholder; (2) furnish to the Secretary a statement of such facts as will enable him to determine the portion of the earnings and profits of the cor- poration (including gains, profits, and income not taxed) accumulated during such periods as the Secretary may specify, which have been distributed or ordered to be distributed, re- spectively, to its shareholders during such taxable years as the Secretary may specify; and (3) furnish to the Secretary a statement of its accumulated earnings and profits and the names and addresses of the individuals or shareholders who would be entitled to such ac- cumulated earnings and profits if divided or distributed, and of the amounts that would be payable to each. (Aug. 16, 1954, ch. 736, 68A Stat. 746; Pub. L. 87–834, § 19(a), Oct. 16, 1962, 76 Stat. 1053; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, §§ 303(a), 308(a), Sept. 3, 1982, 96 Stat. 587, 591; Pub. L. 97–354, § 5(a)(40), Oct. 19, 1982, 96 Stat. 1696; Pub. L. 98–67, title I, §§ 102(a), 108(b), Aug. 5, 1983, 97 Stat. 369, 383; Pub. L. 98–369, div. A, title VII, § 714(d), July 18, 1984, 98 Stat. 961; Pub. L. 99–514, title XV, § 1501(c)(2), Oct. 22, 1986, 100 Stat. 2736; Pub. L. 104–168, title XII, § 1201(a)(3), July 30, 1996, 110 Stat. 1469.) Editorial Notes AMENDMENTS 1996—Subsec. (c)(1). Pub. L. 104–168 substituted ‘‘name, address, and phone number of the information contact’’ for ‘‘name and address’’. 1986—Subsec. (c). Pub. L. 99–514, in amending subsec. (c) generally, substituted ‘‘information is required’’ for ‘‘information is furnished’’ in heading and, in text, sub- stituted references to persons required to make returns for former references to persons making returns and struck out provisions directing that no statement was required to be furnished to any person under this sub- section if the aggregate amount of payments to such person as shown on the return made under subsec. (a)(1) was less than $10. 1984—Subsec. (b)(2). Pub. L. 98–369, in amending par. (2) generally, designated existing provision as subpar. (A), redesignated as cls. (i) and (ii) of subpar. (A) text formerly designated (A) and (B), and added subpar. (B). 1983—Pub. L. 98–67 substituted in subsec. (c) ‘‘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), (c), (e). Pub. L. 97–248 provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, subsecs. (a)(1) and (c) are amended and a new subsec. (e) is added. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III 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. Subsec. (b)(2). Pub. L. 97–354 redesignated cl. (A)(i) as subpar. (A) and cl. (A)(ii) as subpar. (B). Former subpar. (B), excluding from the term ‘‘dividends’’ any amount described in section 1373 (relating to undistributed tax- able income of electing small business corporations), was struck out. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 1962—Pub. L. 87–834 substituted ‘‘Returns regarding payments of dividends and corporate earnings and prof- its’’ for ‘‘Returns regarding corporate dividends, earn- ings, and profits’’ in section catchline, added subsecs. (a) to (c), designated existing provisions of section as subsec. (d), and substituted in par. (1) of subsec. (d) ‘‘furnish to the Secretary or his delegate a statement stating the name and address of each shareholder, and the number of shares owned by each shareholder’’ for ‘‘Make a return of its payments of dividends, stating the name and address of, the number of shares owned by, and the amount of dividends paid to, each share- holder.’’ 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. 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 1984 AMENDMENT Amendment by Pub. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsi- bility Act of 1982, Pub. L. 97–248, to which such amend- ment relates, see section 715 of Pub. L. 98–369, set out as a note under section 31 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by section 108(b) 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. Page 3358 TITLE 26—INTERNAL REVENUE CODE § 6043 1 So in original. Probably should be section ‘‘6652(l).’’ EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97–354 applicable to taxable years beginning after Dec. 31, 1982, see section 6(a) of Pub. L. 97–354, set out as an Effective Date note under section 1361 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Pub. L. 87–834, § 19(h), Oct. 16, 1962, 76 Stat. 1058, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) DIVIDENDS AND INTEREST.—The amendments made by this section [enacting sections 6049 and 6678 of this title and amending this section and sections 6041, 6044, and 6052 of this title] shall apply to payments of dividends and interest made on or after January 1, 1963. ‘‘(2) PATRONAGE DIVIDENDS.—The amendments made by this section shall apply to payments of amounts de- scribed in section 6044(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] made on or after January 1, 1963, with respect to patronage occurring on or after the first day of the first taxable year of the cooperative beginning on or after January 1, 1963.’’ § 6043. Liquidating, etc., transactions (a) Corporate liquidating, etc., transactions Every corporation shall— (1) Within 30 days after the adoption by the corporation of a resolution or plan for the dis- solution of the corporation or for the liquida- tion of the whole or any part of its capital stock, make a return setting forth the terms of such resolution or plan and such other in- formation as the Secretary shall by forms or regulations prescribe; and (2) When required by the Secretary, make a return regarding its distributions in liquida- tion, stating the name and address of, the number and class of shares owned by, and the amount paid to, each shareholder, or, if the distribution is in property other than money, the fair market value (as of the date the dis- tribution is made) of the property distributed to each shareholder. (b) Exempt organizations Every organization which for any of its last 5 taxable years preceding its liquidation, dissolu- tion, termination, or substantial contraction was exempt from taxation under section 501(a) shall file such return and other information with respect to such liquidation, dissolution, termination, or substantial contraction as the Secretary shall by forms or regulations pre- scribe; except that— (1) no return shall be required under this subsection from churches, their integrated auxiliaries, conventions or associations of churches, or any organization which is not a private foundation (as defined in section 509(a)) and the gross receipts of which in each taxable year are normally not more than $5,000, and (2) the Secretary may relieve any organiza- tion from such filing where he determines that such filing is not necessary to the efficient ad- ministration of the internal revenue laws or, with respect to an organization described in section 401(a), where the employer who estab- lished such organization files such a return. (c) Changes in control and recapitalizations If— (1) control (as defined in section 304(c)(1)) of a corporation is acquired by any person (or group of persons) in a transaction (or series of related transactions), or (2) there is a recapitalization of a corpora- tion or other substantial change in the capital structure of a corporation, when required by the Secretary, such corpora- tion shall make a return (at such time and in such manner as the Secretary may prescribe) setting forth the identity of the parties to the transaction, the fees involved, the changes in the capital structure involved, and such other information as the Secretary may require with respect to such transaction. (d) Cross references For provisions relating to penalties for failure to file— (1) a return under subsection (b), see section 6652(c), or (2) a return under subsection (c), see section 6652(1).1 (Aug. 16, 1954, ch. 736, 68A Stat. 746; Pub. L. 91–172, title I, § 101(j)(35), Dec. 30, 1969, 83 Stat. 529; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 99–514, title XV, § 1501(d)(1)(C), Oct. 22, 1986, 100 Stat. 2740; Pub. L. 101–239, title VII, § 7208(b)(1), (3)(A), (B), Dec. 19, 1989, 103 Stat. 2337, 2338; Pub. L. 104–188, title I, § 1704(t)(17), Aug. 20, 1996, 110 Stat. 1888.) Editorial Notes AMENDMENTS 1996—Pub. L. 104–188 substituted ‘‘Liquidating, etc., transactions’’ for ‘‘Liquidating; etc., transactions’’ in section catchline. 1989—Pub. L. 101–239, § 7208(b)(3)(B), substituted ‘‘Liq- uidating; etc., transactions’’ for ‘‘Returns regarding liquidation, dissolution, termination, or contraction’’ in section catchline. Subsec. (a). Pub. L. 101–239, § 7208(b)(3)(A), substituted ‘‘Corporate liquidating, etc., transactions’’ for ‘‘Cor- porations’’ in heading. Subsecs. (c), (d). Pub. L. 101–239, § 7208(b)(1), added subsecs. (c) and (d) and struck out former subsec. (c) which read as follows: ‘‘CROSS REFERENCE.—For provi- sions relating to penalties for failure to file a return re- quired by subsection (b), see section 6652(c).’’ 1986—Subsec. (c). Pub. L. 99–514 substituted ‘‘section 6652(c)’’ for ‘‘section 6652(d)’’. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 1969—Pub. L. 91–172 inserted references to termi- nation and contraction in section catchline, designated existing provisions as subsec. (a), and added subsecs. (b) and (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–239, title VII, § 7208(b)(4), Dec. 19, 1989, 103 Stat. 2338, provided that: ‘‘The amendments made by this subsection [amending this section and section 6652 of this title] shall apply to transactions after March 31, 1990.’’ 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 Dec. 31, 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 1969 AMENDMENT Amendment by Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section