Get Form 5452

Purpose of Form. Complete Form 5452 if the corporation made nondividend distributions to shareholders under section 301, section 1368(c)(3), section 1371(e), or section 1371(f). Who Must File. All corporations that have made nondividend distributions to their shareholders must file Form 5452.

Non-taxable distributions are generally reported in Box 3 of Form 1099-DIV. Return of capital shows up under the “Non-Dividend Distributions” column on the form. The investor may receive this form from the company that paid the dividend. If not, the distribution may be reported as an ordinary dividend.

This is because distributions have no effect on your business's profitability or the amount of taxes your business will pay. Distributions are made to business owners by taking cash out of the business from retained profits or cash that investors put into the business.

Schedule K-1 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc. The S corporation files a copy of this schedule with the IRS to report your share of the corporation's income, deductions, credits, etc.

Corporations file Form 5452, if they made nondividend distributions to shareholders under section 301, section 1368(c)(3), or section 1371(e).

Use Form 1120-S to report the income, gains, losses, deductions, credits, etc., of a domestic corporation or other entity for any tax year covered by an election to be an S corporation.

More In Forms and Instructions Corporations file Form 5452, if they made nondividend distributions to shareholders under section 301, section 1368(c)(3), or section 1371(e).

A nondividend distribution is a distribution that is not paid out of the earnings and profits of a corporation or a mutual fund. You should receive a Form 1099-DIV or other statement showing you the nondividend distribution. On Form 1099-DIV, a nondividend distribution will be shown in box 3.