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Step 1
Call (800) TAX-FORM or visit the IRS online form ordering website (see resources below) to obtain acceptable copies of Form 1099-CAP to send to recipients. Although Form 1099-CAP is available for viewing online, the e-version of the form is unacceptable to send to shareholders or the Internal Revenue Service.
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Step 2
Check the "Corrected" box at the top of the 1099 form if applicable. Enter the Corporation's name, street address, city, state, ZIP code and telephone number in the first box.
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Step 3
Enter the Payer's Federal Tax ID number and the shareholder's identification number (usually a Social Security number or an EIN) in the two boxes beneath the first box. Below this, list the shareholder's name, street address (including apartment number), city, state and ZIP code. If applicable, enter the account number that is associated with this transaction.
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Step 4
List the date the stock was exchanged in Box 1. In Box 2, show the collective amount of any cash and the fair market value of any other property or stock the shareholder received in exchange for the stock he or she used to hold.
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Step 5
Indicate the number of shares of the corporation's stock that the shareholder held which were exchanged in the transaction in Box 3. In Box 4, list the classes of stock that were exchanged. Box 5 is left intentionally blank.
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Step 6
Check Box 6 if the stockholder can not claim a loss on the amount listed in Box 2.
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Step 7
File Form 1099-CAP with the IRS; also send a copy to the recipient. Check the IRS official website (see Resources below) for specific instructions as to the filing deadline for Form 1099-CAP; it changes annually. A copy of Form 1099-CAP must be sent to the stockholder by January 31 of the year following the exchange.
