Internal Revenue Code:Sec. 6042. Returns regarding payments of dividends and corporate earnings and profits

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle F - Procedure and Administration
       CHAPTER 61 - INFORMATION AND RETURNS
        Subchapter A - Returns and Records
         PART III - INFORMATION RETURNS
          Subpart B - Information Concerning Transactions With Other Persons
        

Statute

    Sec. 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 aggregating $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 aggregating $10 or more during any calendar year
        to any other person with respect to the dividends so received,
      shall make a return according 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 person who makes payments of dividends aggregating less
      than $10 to any other person during any calendar year shall, when
      required by the Secretary, make a return setting forth the
      aggregate amount of such payments, and the name and address of
      the person to whom paid.
    (b) Dividend defined
      (1) General rule
        For purposes of this section, the term ''dividend'' 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 ''dividend'' 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 nonresident alien, or a
          partnership not engaged 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 provided in regulations
        prescribed by the Secretary, 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 determine the portion of such
      payment which is a dividend or is paid with respect to a
      dividend, he shall, for purposes of subsection (a)(1), treat the
      entire amount of such payment 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 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 preceding sentence shall
    be furnished (either in person or in a statement mailing by
    first-class mail which includes adequate notice that the statement
    is enclosed) to the person on or before January 31 of the year
    following the calendar year for which the return under subsection
    (a) was required 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 shareholder, 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 corporation (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, respectively, 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
      accumulated earnings and profits if divided or distributed, and
      of the amounts that would be payable to each.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 746; Pub. L. 87-834, Sec. 19(a),
    Oct. 16, 1962, 76 Stat. 1053; Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-248, title
    III, Sec. 303(a), 308(a), Sept. 3, 1982, 96 Stat. 587, 591; Pub. L.
    97-354, Sec. 5(a)(40), Oct. 19, 1982, 96 Stat. 1696; Pub. L. 98-67,
    title I, Sec. 102(a), 108(b), Aug. 5, 1983, 97 Stat. 369, 383; Pub.
    L. 98-369, div.  A, title VII, Sec. 714(d), July 18, 1984, 98 Stat.
    961; Pub. L. 99-514, title XV, Sec. 1501(c)(2), Oct. 22, 1986, 100
    Stat. 2736; Pub. L. 104-168, title XII, Sec. 1201(a)(3), July 30,
    1996, 110 Stat. 1469.)
 

Miscellaneous

                                 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, substituted
    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 subsection 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 sentence shall be furnished
    (either in person or in a separate mailing by first-class mail) to
    the person on or before 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 prescribe by
    regulations'' for ''The written statement required under the
    preceding sentence shall be furnished to the person on or before
    January 31 of the year following 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 (Sec. 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 taxable 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 profits'' for ''Returns
    regarding corporate dividends, earnings, 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 shareholder.''
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-168 applicable to statements required to
    be furnished after Dec. 31, 1996 (determined without regard to any
    extension), see section 1201(b) of Pub. L. 104-168, set out as a
    note under section 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 Responsibility Act of 1982,
    Pub. L. 97-248, to which such amendment 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 applicable 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 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
      Section 19(h) of Pub. L. 87-834, as amended by Pub. L. 99-514,
    Sec. 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 described 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.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 3406, 6041, 6652, 6724 of
    this title.