# 26 U.S.C. § 6042: Returns regarding payments of dividends and corporate earnings and profits Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 6042(a)(1). ## § 6042(a) Requirement of reporting **§ 6042(a)(1) In general.** Every person— **§ 6042(a)(1)(A)** who makes payments of dividends aggregating $10 or more to any other person during any calendar year, or **§ 6042(a)(1)(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. **§ 6042(a)(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. ## § 6042(b) Dividend defined **§ 6042(b)(1) General rule.** For purposes of this section, the term “dividend” means— **§ 6042(b)(1)(A)** any distribution by a corporation which is a dividend (as defined in section 316); and **§ 6042(b)(1)(B)** any payment made by a stockbroker to any person as a substitute for a dividend (as so defined). **§ 6042(b)(2) Exceptions.** For purposes of this section, the term “dividend” does not include any distribution or payment— **§ 6042(b)(2)(A)** to the extent provided in regulations prescribed by the Secretary— **§ 6042(b)(2)(A)(i)** by a foreign corporation, or **§ 6042(b)(2)(A)(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 **§ 6042(b)(2)(B)** except to the extent otherwise provided in regulations prescribed by the Secretary, to any person described in section 6049(b)(4). **§ 6042(b)(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. ## § 6042(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— **§ 6042(c)(1)** the name, address, and phone number of the information contact of the person required to make such return, and **§ 6042(c)(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. ## § 6042(d) Statements to be furnished by corporations to Secretary Every corporation shall, when required by the Secretary— **§ 6042(d)(1)** furnish to the Secretary a statement stating the name and address of each shareholder, and the number of shares owned by each shareholder; **§ 6042(d)(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 **§ 6042(d)(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. ## Regulations - [Treas. Reg. § 1.6042-1](/26/reg/1.6042-1.md): Return of information as to dividends paid in calendar years before 1963. (interprets § 6042) - [Treas. Reg. § 1.6042-2](/26/reg/1.6042-2.md): Returns of information as to dividends paid. (interprets § 6042) - [Treas. Reg. § 1.6042-3](/26/reg/1.6042-3.md): Dividends subject to reporting. (interprets § 6042) - [Treas. Reg. § 1.6042-4](/26/reg/1.6042-4.md): Statements to recipients of dividend payments. (interprets § 6042) - [Treas. Reg. § 1.6042-5](/26/reg/1.6042-5.md): Coordination with reporting rules for widely held fixed investment trusts under § 1.671-5. (interprets § 6042) - [Treas. Reg. § 301.6042-1](/26/reg/301.6042-1.md): Returns of information regarding payments of dividends and corporate earnings and profits. (interprets § 6042) ## Forms named in the regulations - [Form 1096](https://www.irs.gov/pub/irs-pdf/f1096.pdf) - [Form 1041](https://www.irs.gov/pub/irs-pdf/f1041.pdf) - [Form W-9](https://www.irs.gov/pub/irs-pdf/fw9.pdf) - [Form 5498](https://www.irs.gov/pub/irs-pdf/f5498.pdf) ## Final rules - [82 FR 2046](https://www.federalregister.gov/documents/2017/01/06/2016-31590/regulations-regarding-withholding-of-tax-on-certain-us-source-income-paid-to-foreign-persons) (2017): Regulations Regarding Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons, Information Reporting and Backup Withholding on Payments Made to Certain U.S. Persons, and Portfolio Interest Treatment - [79 FR 41127](https://www.federalregister.gov/documents/2014/07/15/2014-16464/irs-truncated-taxpayer-identification-numbers) (2014): IRS Truncated Taxpayer Identification Numbers - [79 FR 12726](https://www.federalregister.gov/documents/2014/03/06/2014-03991/withholding-of-tax-on-certain-us-source-income-paid-to-foreign-persons-information-reporting-and) (2014): Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons, Information Reporting and Backup Withholding on Payments Made to Certain U.S. Persons, and Portfolio Interest Treatment - [75 FR 64072](https://www.federalregister.gov/documents/2010/10/18/2010-25504/basis-reporting-by-securities-brokers-and-basis-determination-for-stock) (2010): Basis Reporting by Securities Brokers and Basis Determination for Stock - [71 FR 4002](https://www.federalregister.gov/documents/2006/01/24/06-396/reporting-for-widely-held-fixed-investment-trusts) (2006): Reporting for Widely Held Fixed Investment Trusts - [69 FR 55743](https://www.federalregister.gov/documents/2004/09/16/04-19478/place-for-filing) (2004): Place for Filing - [65 FR 50405](https://www.federalregister.gov/documents/2000/08/18/00-20851/extension-of-due-date-for-electronically-filed-information-returns-limitation-of-failure-to-pay) (2000): Extension of Due Date for Electronically Filed Information Returns; Limitation of Failure To Pay Penalty for Individuals During Period of Installment Agreement - [65 FR 32152](https://www.federalregister.gov/documents/2000/05/22/00-11937/revisions-to-regulations-relating-to-withholding-of-tax-on-certain-us-source-income-paid-to-foreign) (2000): Revisions to Regulations Relating to Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons and Revisions of Information Reporting Regulations. - [64 FR 73408](https://www.federalregister.gov/documents/1999/12/30/99-33515/general-revision-of-regulations-relating-to-withholding-of-tax-on-certain-us-source-income-paid-to) (1999): General Revision of Regulations Relating to Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons and Related Collection, Refunds, and Credits; Revision of Information Reporting and Backup Withholding Regulations; and Removal of Regulations Under Parts 1 and 35a and of Certain Regulations Under Income Tax Treaties - [63 FR 72183](https://www.federalregister.gov/documents/1998/12/31/98-34359/general-revision-of-regulations-relating-to-withholding-of-tax-on-certain-us-source-income-paid-to) (1998): General Revision of Regulations Relating to Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons and Related Collection, Refunds, and Credits; Revision of Information Reporting and Backup Withholding Regulations; and Removal of Regulations Under Parts 1 and 35a and of Certain Regulations Under Income Tax Treaties - [62 FR 53387](https://www.federalregister.gov/documents/1997/10/14/97-25998/general-revision-of-regulations-relating-to-withholding-of-tax-on-certain-us-source-income-paid-to) (1997): General Revision of Regulations Relating to Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons and Related Collection, Refunds, and Credits; Revision of Information Reporting and Backup Withholding Regulations; and Removal of Regulations Under Part 35a and of Certain Regulations Under Income Tax Treaties ## Leading cases - [Mikulski v. Centerior Energy Corp., 501 F.3d 555 (6th Cir. 2007)](https://www.courtlistener.com/opinion/1460325/mikulski-v-centerior-energy-corp/) - [Lachinski v. Commissioner, T.C. Memo. 1986-334](https://www.courtlistener.com/opinion/4830393/lachinski-v-commissioner/) ## Connections Cites: § 316 Dividend defined; § 6049 Returns regarding payments of interest Cited by: § 3406 Backup withholding; § 6041 Information at source; § 6652 Failure to file certain information returns, registration statements, etc.; § 6724 Waiver; definitions and special rules Derived from: 1939 § 148 ## Amendments - 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 746 - 1962-10-16: [Pub. L. 87-834](/26/act/87-834.md), 76 Stat. 1053 - 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834 - 1982-09-03: [Pub. L. 97-248](/26/act/97-248.md), 96 Stat. 587 - 1982-10-19: [Pub. L. 97-354](/26/act/97-354.md), 96 Stat. 1696 - 1983-08-05: [Pub. L. 98-67](/26/act/98-67.md), 97 Stat. 369 - 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 961 - 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2736 - 1996-07-30: [Pub. L. 104-168](/26/act/104-168.md), 110 Stat. 1469