Contents -

Form 1099-CAP
NOTE

ANY INSTRUCTIONS CONTAINED HEREIN ARE ADVISORY ONLY.

REFER TO IRS INSTRUCTIONS FOR OFFICIAL INFORMATION.



Form 1099-CAP - Changes in Corporate Control and Capital Structure

File Form 1099-CAP for shareholders of a corporation if control of the corporation was acquired or it underwent a substantial change in capital structure.  This form is furnished to shareholders who receive cash, stock, or other property from an acquisition of control or a substantial change in capital structure.

Account number (Required)
Enter any number assigned by the payer to the payee that can be used by the IRS to distinguish between information returns.  This number must be unique for each information return.  The account number is critical in the correction process, especially when more than one information return is filed for a payee.  MAG-FILER will automatically assign an account number if the field is blank.

TIN # (Required)
Enter the payee's valid 9-digit Taxpayer Identification Number (SSN or EIN, as appropriate).  Leave this field blank if the TIN# is unknown.   Any form filed containing an invalid identification number in this entry may be returned for correction.

SSN  (else EIN) (Required)
Check this box if the payee TIN # is a Social Security Number (SSN) of an individual.  Leave this box blank if the payee TIN # is an Employer Identification Number (EIN) of a business or an organization.

NOTE: Imbedded blanks, extraneous words, titles, and special characters ( i.e., Mr., Mrs., Dr., period [.], apostrophe [ ' ] should be removed from Payee Name Lines.  An ampersand (&) and a dash (- ) are the only acceptable special characters.  A comma ( , ) between last name and first name that is placed by MAG-FILER is also acceptable.

Name (Required)
Enter the name of the recipient belonging to the Taxpayer Identification Number (TIN).  If the TIN, is an SSN, enter as last name suffix, first, middle initial, e.g., Doe Jr., John A.).  If the TIN is an EIN, the name is entered as is.  Use the Second Name Field if additional space is required.

Second Name Field
If the payee name requires more space than is available in the name field, enter only the remaining portion of the name in this entry.  If there are multiple payees, this field may be used for those payees' names.
   ** DO NOT USE THIS FIELD FOR ADDRESS INFORMATION.
   ** The pre-printed IRS form does not have a line for the 2nd Payee name when
     for printing to the official Copy A used for paper filing to the IRS (MAG-FILER
     pre-printed selection).  However, the second name field will print to 
     MAG-FILER's laser created recipient forms (pre-printed unchecked) under
     "Which copy" and will also be included in the IRS file for e-filing. 

Address (Required)
Enter the payee's mailing address.  The address MUST be present.  This entry must not contain any data other than the payee's mailing address.

City (Required)
Enter the payee's city.   Do not enter state and zip code information in this entry.

State (Required)
Enter the abbreviation for the payee's state or foreign country.  You must use valid U.S. Postal Service state abbreviations for U.S. addresses.

Zip (Required)
Enter the payee's valid 9-digit zip code assigned by the U.S. Postal Service.

Date of Sale or Exchange
Enter the trade date of the sale or exchange, actually or constructively received.  Enter date in MMDDYYYY format.  If the date is not required for this transaction, r-click to display menu and select Clear date on this record.  

Aggregate amount received (Required)
Enter the aggregate amount of cash, stock, and other property received in exchange for the number of shares exchanged in the reporting corporation.

No. of shares exchanged 
Enter the number of shares the shareholder exchanged in the reporting corporation for cash or other property received.

Class of Stock Exchanged
Enter the class or classes of stock (e.g., preferred, common, etc.) exchanged in the reporting corporation for cash or other property received. Abbreviate the class or any subclasses to fit the entry.  For example, you may enter "C" for common stock, "P" for preferred, or "O" for other.

Check if cannot take a loss on tax return
Check the box if this shareholder cannot claim a loss based on the amount in box 2...  
This box must be checked if the reporting corporation reasonably determines that the exchange is part of a transaction described in section 367(a) for which shareholders are required to recognize gain (if any) but are not allowed to claim a loss. 

Description (optional)
This is an optional payee information area.

Special
This area may be used to record information for state or local government reporting or for the filer's own purposes.  This information will be sent to the IRS file and does not print to the form.

Select Print
Check this box to select specific payees for printing.

Corrected Return
Check this box if this entry is a corrected return.  This is only used IF YOU HAVE ALREADY SUBMITTED MAGNETIC MEDIA FILING and wish to print or file corrected returns.  NOTE: The same account number reported on the original must also be on the corrected record.