Get Form 973 (rev. May 1998). Corporation Claim For Deduction For Consent Dividends

Section 1.565 - 1(c)(2) of the regulations provides, in part, that the full amounts specified on a consent will be taxable to the shareholder even though a consent dividend deduction may be denied to the corporation because it is determined that it is not a corporation subject to part I, II or III, subchapter G, ...

Purpose of form. Form 972 is used by a shareholder who agrees to report a consent dividend as taxable income in the form of a dividend on the shareholder's own tax return even though the shareholder receives no actual cash distribution of the consented amounts.

To qualify for the 100-percent dividends-received deduction, a dividend must be distributed out of the earnings and profits of the distributing corporation or a predecessor corporations for a tax year during each day of which the paying and receiving corporation were members of the same affiliated group (Reg.

Purpose of form. Form 972 is used by a shareholder who agrees to report a consent dividend as taxable income in the form of a dividend on the shareholder's own tax return even though the shareholder receives no actual cash distribution of the consented amounts.

To report your dividends on your tax return and pay the applicable taxes, you include the appropriate amounts on Form 1040 and fill out the related line items on Schedule B if required. TurboTax can fill out the proper forms for you by asking questions about dividends you receive throughout the tax year.

The dividend must be from a corporation that's not a real estate investment trust (REIT) or a company exempt from taxation under section 501 or 521 of the Internal Revenue Code. It also can't be a capital gain dividend from a regulated investment company. The dividend must be paid by a U.S. corporation.