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E-File IRS Form 1099-CAP Online for 2022 Tax Year

What is a 1099-CAP Form?

Form 1099-CAP is furnished to shareholders who receive cash, stock, or property from an acquisition of control or a substantial change in capital structure. The corporation's identity, form, or place of organization and/or the transfer/merging of a substantial amount of assets. 1099 CAP has a minimum entry of 100 million dollars. But if a share owner invests in a company that has a big share a 1099 CAP may show up.

If a filer has a gain from the exchange, the filer will need to report it on the IRS Form 8849 when they file their income tax return.
The IRS encourages the filer to designate an account number for all Form 1099-CAP that are being filed. Truncation is not allowed on any documents the filer files with the IRS.

How to File Form 1099 CAP?

1099 CAP Form
  • Box 1: Date of Sale or Exchange
  • Box 2: Aggregate Amount Received
  • Box 3: No. of Shares Exchanged
  • Box 4: Classes of Stock Exchanged
  • Box 5: Blank

What you will need to file Form 1099-CAP:

  • Taxpayer's (CORPORATION/SHAREHOLDER) information
  • Account number
  • Shares stock information

An account number is required if, the taxpayer holds multiple policies for a recipient for whom they are filing Form 1099-CAP.

Watch our step-by-step video to E-File Form 1099-CAP with IRS

Who Must File Form 1099-CAP?

Anyone who may own a stock that undergoes a significant change in control or capital structure and receives cash, stocks, or other property as a result the company will send a Copy B of the 1099-CAP Form. For example, a domestic corporation is required to file Form 8806, Information Return for Acquisition of Control or Substantial Change in Capital Structure, must file Form 1099-CAP with the IRS and furnish a copy to each shareholder who receives cash, stock, or property as a result of the acquisition of control or substantial change in capital structure.

Some exceptions are:

  • A tax-exempt organization
  • A corporation (except a subchapter S corporation)
  • An Individual Retirement Account (IRA)
  • The U.S. government or a state or a foreign government, an international organization, or a foreign central bank of issue
  • A Real Estate Investment Trust (REIT)
  • A Regulated Investment Company (RIC)
  • A securities or commodities dealer
  • An entity registered under the Investment Company Act of 1940
  • A common trust funds
  • A financial institution such as a bank or credit union, or similar organization
  • A foreign individual whom the corporation associates with a valid IRS Form W-8BEN (Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting)

There are three copies of the form the first copy will go to the IRS, the second copy is for the Shareholder, and the third copy will to the Corporation.

When is the Deadline to File Form 1099 CAP?

Filing Type Deadline
Recipient copy January 31st
IRS Paper Filing February 28th
IRS Electronic Filing March 31st

Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file on the next business day.

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