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IRS Form 1099-CAP

What Is Form 1099-CAP?

IRS Form 1099-CAP (Changes in Corporate Control and Capital Structure) is one of a series of “1099” forms used to report nonemployee payments and transactions. Corporations use Form 1099-CAP to report to the Internal Revenue Service (IRS) a substantial change in control or capital structure. A 1099-CAP is furnished to shareholders who receive cash, stock, or other property from an acquisition of control or a significant change in capital structure.


Who Needs Form 1099-CAP?

If you own stock in a corporation that undergoes a significant change in control or capital structure—and you received cash, stock, or other property as a result—the company will send you Copy B of the 1099-CAP form. Form 1099-CAP must be filed by Jan. 31 of the year following the change in control or capital structure.

What Is Form 1099-CAP Used For?

Corporations use Form 1099-CAP to report changes in control or capital structure. According to the IRS, a substantial change in capital structure occurs if: 1. The total amount of cash or other property given to shareholders is at least $100 million and the corporation merges, consolidates, transfers assets to, or otherwise combines with another corporation. 2. The corporation transfers all or part of its assets to another corporation under bankruptcy proceedings. 3. The corporation changes its identity, form, or place of organization. 4. The corporation or any of its shareholders is required to recognize gains under Internal Revenue Code 367(a) as the result of the transaction. The corporation doesn’t have to file Form 1099-CAP with shareholders who are exempt, which includes those who: 1. Receive stock in an exchange that isn’t subject to gain recognition under section 367(a) 2. Receive less than $1,000 in cash and the fair market value of any stock or property 3. Provide the corporation with an exemption certification The exempt group also includes those who are one of the following: 1. A corporation, except a subchapter S corporation 2. A tax-exempt organization 3. An individual retirement account (IRA) 4. The U.S. government or a state 5. A foreign government, an international organization, or a foreign central bank of issue 6. A real estate investment trust (REIT) 7. A regulated investment company (RIC) 8. A securities or commodities dealer 9. An entity registered under the Investment Company Act of 1940 10. A common trust fund 11. A financial institution such as a bank or credit union 12. 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) After downloading the free Form 1099-CAP template, if you need to fill in it or modify the content on your Mac,  you may need a powerful PDF editor for Mac. Using PDF Reader Pro, you can add your own details and use this template design for your own needs, edit the PDF more conveniently. Download the form and fill it out using PDF Reader Pro. Click the button "free download" to download the app.

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