§6043A — Title 26 Internal Revenue Code | U.S. Code

§6043A Returns Relating to Taxable Mergers and Acquisitions

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 61— INFORMATION AND RETURNS › Subchapter A— Returns and Records › Part III— INFORMATION RETURNS › Subpart B— Information Concerning Transactions With Other Persons › § 6043A

Last updated Apr 6, 2026|Official source

Summary

When one corporation buys another in a deal that forces any shareholder of the acquired company to recognize gain, the acquiring corporation must file an information return with the IRS. The return describes the acquisition, names and addresses of each shareholder required to recognize gain, and the money and fair market value of other property each one received. The company must also send each of those shareholders a written statement showing the information reported about them and a contact name, address, and phone number. If a nominee holds the stock for someone else, the nominee must pass the information along to the real owner.

Title 26, §6043A

Internal Revenue Code — Source: USLM XML via OLRC

(a)According to the forms or regulations prescribed by the Secretary, the acquiring corporation in any taxable acquisition shall make a return setting forth—

(1)a description of the acquisition,

(2)the name and address of each shareholder of the acquired corporation who is required to recognize gain (if any) as a result of the acquisition,

(3)the amount of money and the fair market value of other property transferred to each such shareholder as part of such acquisition, and

(4)such other information as the Secretary may prescribe.

(b)According to the forms or regulations prescribed by the Secretary:

(1)Any person who holds stock as a nominee for another person shall furnish in the manner prescribed by the Secretary to such other person the information provided by the corporation under subsection (d).

(2)In the case of stock held by any person as a nominee, references in this section (other than in subsection (c)) to a shareholder shall be treated as a reference to the nominee.

(c)For purposes of this section, the term “taxable acquisition” means any acquisition by a corporation of stock in or property of another corporation if any shareholder of the acquired corporation is required to recognize gain (if any) as a result of such acquisition.

(d)According to the forms or regulations prescribed by the Secretary, every person required to make a return under subsection (a) shall furnish to each shareholder 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,

(2)the information required to be shown on such return with respect to such shareholder, and

(3)such other information as the Secretary may prescribe.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 108–357, title VIII, § 805(d), Oct. 22, 2004, 118 Stat. 1574, provided that: “The

Amendments

made by this section [enacting this section and amending section 6724 of this title] shall apply to acquisitions after the date of the enactment of this Act [Oct. 22, 2004].”