Form 1099-CAP

4.8 (14 reviews)
All states | 22 types
Updated Jan 17, 2025
~ 5 pages
PDF
2.4K downloads
Form 1099-CAP is a federal form between a corporation and its shareholders detailing changes in corporate control or capital structure. It is used to report distributions that may be taxable as capital gains.
Form 1099-CAP Page 1
Preview
Reviewed by Kate Adkham

Template Description

Copy section link
1099-cap

When it comes to financial transactions and the IRS, clearly understanding each form is vital for your financial well-being. One such important form is 1099-CAP, also known as corporate control and capital structure changes. In layman’s terms, this form reports significant changes in control or capital structure that affect a corporation.

Key Situations for Using Form 1099-CAP

Copy section link

  1. When one company merges with another or gets bought out, control of the company changes.

  2. If you receive money, stock, or other items due to changes in the company's financial structure, this is part of the changes happening to the business.

  3. Corporate reorganizations impacting shareholder equity.

  4. Any significant corporate event that alters shareholder investments.

Parties Involved

Copy section link
  • Issuer
    The corporation is undergoing a structural change, such as a merger, acquisition, or reorganization.
  • Recipients
    Shareholders who receive cash, stock, or other property as a result of the corporate change.

Important Terminologies

Copy section link
  • Structural Change
    Refers to significant alterations in a corporation's control or capital structure, often through mergers or acquisitions.
  • Cash, Stock, or Property
    Assets distributed to shareholders due to the structural change must be reported on form 1099 CAP.
  • Reportable Event
    Any major corporate event, like a merger or acquisition, requires reporting to the IRS and informing shareholders with form 1099 CAP.

How To Complete Form 1099-CAP

Copy section link

1. Get the Form

You can get 1099-CAP instructions and form from the IRS website or Loio platform or request it from your financial institution.

2. Fill Out the Issuer's Information

  • Put the company's name, address, phone number, and TIN on paper.
  • Add the Recipient's information.
  • Include the name, address, and TIN.


3. Provide Transaction Details

  • Enter the total fair market value of the shares exchanged.
  • Record the amount of cash received by the shareholders.
  • Note the record date (the official date of the transaction).
  • Specify the date when the sale or transaction took place.
Form 1099-CAP Preview