Title 26 — Internal Revenue CodeRelease 119-73
§6042 Returns regarding payments of dividends and corporate earnings and profits
Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 61— - INFORMATION AND RETURNS › Subchapter Subchapter A— - Returns and Records › Part PART III— - INFORMATION RETURNS › Subpart Subpart B— - Information Concerning Transactions With Other Persons › § 6042
Summary
If you pay out dividends of $10 or more to someone in a year, you must tell the IRS about it. If you got dividends as a nominee and then paid $10 or more to others, you must report that too. The IRS can also require reports for smaller payments. "Dividend" here means corporate distributions that count as dividends and certain broker payments that stand in for dividends. The IRS can exclude some foreign-related payments and some other listed kinds of payments under its rules. If you cannot tell which part of a payment is a dividend, treat the whole payment as a dividend for reporting. Anyone who must report also must give each recipient a written notice with the payer’s contact info and the total paid. When the IRS asks, a corporation must give the IRS the names, addresses, and share counts of its shareholders; information to figure what earnings and profits were distributed; and a list of who would get any accumulated earnings and profits and how much each would receive.
Full Legal Text
Title 26, §6042
Internal Revenue Code — Source: USLM XML via OLRC
(a)(1)Every person—
(A)who makes payments of dividends aggregating $10 or more to any other person during any calendar year, or
(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,
(2)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.
(b)(1)For purposes of this section, the term “dividend” means—
(A)any distribution by a corporation which is a dividend (as defined in section 316); and
(B)any payment made by a stockbroker to any person as a substitute for a dividend (as so defined).
(2)For purposes of this section, the term “dividend” does not include any distribution or payment—
(A)to the extent provided in regulations prescribed by the Secretary—
(i)by a foreign corporation, or
(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
(B)except to the extent otherwise provided in regulations prescribed by the Secretary, to any person described in section 6049(b)(4).
(3)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.
(c)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—
(1)the name, address, and phone number of the information contact of the person required to make such return, and
(2)the aggregate amount of payments to the person required to be shown on the return.
(d)Every corporation shall, when required by the Secretary—
(1)furnish to the Secretary a statement stating the name and address of each shareholder, and the number of shares owned by each shareholder;
(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
(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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1996—Subsec. (c)(1). Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. 1986—Subsec. (c). Pub. L. 99–514, in amending subsec. (c) generally, substituted “information is required” for “information is furnished” in heading and, in text, substituted references to persons required to make returns for former references to persons making returns and struck out provisions directing that no statement was required to be furnished to any person under this subsection if the aggregate amount of payments to such person as shown on the return made under subsec. (a)(1) was less than $10. 1984—Subsec. (b)(2). Pub. L. 98–369, in amending par. (2) generally, designated existing provision as subpar. (A), redesignated as cls. (i) and (ii) of subpar. (A) text formerly designated (A) and (B), and added subpar. (B). 1983—Pub. L. 98–67 substituted in subsec. (c) “The written statement required under the preceding sentence shall be furnished (either in person or in a separate mailing by first-class mail) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made, and shall be in such form as the Secretary may prescribe by
Regulations
” for “The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a)(1) was made” and repealed
Amendments
made by Pub. L. 97–248. See 1982 Amendment note below. 1982—Subsecs. (a)(1), (c), (e). Pub. L. 97–248 provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after
June 30, 1983, subsecs. (a)(1) and (c) are amended and a new subsec. (e) is added. section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of
June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the
Amendments
made by such subtitle A) had not been enacted. Subsec. (b)(2). Pub. L. 97–354 redesignated cl. (A)(i) as subpar. (A) and cl. (A)(ii) as subpar. (B). Former subpar. (B), excluding from the term “dividends” any amount described in section 1373 (relating to undistributed taxable income of electing small business corporations), was struck out. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1962—Pub. L. 87–834 substituted “Returns regarding payments of dividends and corporate earnings and profits” for “Returns regarding corporate dividends, earnings, and profits” in section catchline, added subsecs. (a) to (c), designated existing provisions of section as subsec. (d), and substituted in par. (1) of subsec. (d) “furnish to the Secretary or his delegate a statement stating the name and address of each shareholder, and the number of shares owned by each shareholder” for “Make a return of its payments of dividends, stating the name and address of, the number of shares owned by, and the amount of dividends paid to, each shareholder.”
Statutory Notes and Related Subsidiaries
Effective Date
of 1996 AmendmentAmendment by Pub. L. 104–168 applicable to statements required to be furnished after Dec. 31, 1996 (determined without regard to any extension), see section 1201(b) of Pub. L. 104–168, set out as a note under section 6041 of this title.
Effective Date
of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to returns the due date for which (determined without regard to extensions) is after Oct. 22, 1986, see section 1501(e) of Pub. L. 99–514, set out as an
Effective Date
note under section 6721 of this title.
Effective Date
of 1984 AmendmentAmendment by Pub. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97–248, to which such amendment relates, see section 715 of Pub. L. 98–369, set out as a note under section 31 of this title.
Effective Date
of 1983 AmendmentAmendment by section 108(b) of Pub. L. 98–67 applicable with respect to payments made after Dec. 31, 1983, see section 110(a) of Pub. L. 98–67, set out as a note under section 31 of this title.
Effective Date
of 1982 AmendmentAmendment by Pub. L. 97–354 applicable to taxable years beginning after Dec. 31, 1982, see section 6(a) of Pub. L. 97–354, set out as an
Effective Date
note under section 1361 of this title.
Effective Date
of 1962 Amendment Pub. L. 87–834, § 19(h), Oct. 16, 1962, 76 Stat. 1058, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(1) Dividends and interest.—The
Amendments
made by this section [enacting section 6049 and 6678 of this title and amending this section and section 6041, 6044, and 6052 of this title] shall apply to payments of dividends and interest made on or after January 1, 1963. “(2) Patronage dividends.—The
Amendments
made by this section shall apply to payments of amounts described in section 6044(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] made on or after
January 1, 1963, with respect to patronage occurring on or after the first day of the first taxable year of the cooperative beginning on or after
January 1, 1963.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 6042
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73