[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR]

[Page 260-261]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.6045-3T  Information reporting for an acquisition of control 
or a substantial change in capital structure (temporary).

    (a) In general. Any broker (as defined in Sec.  1.6045-1(a)(1)) that 
holds shares on behalf of a customer in a corporation that the broker 
knows or has reason to

[[Page 261]]

know based on readily available information (including, for example, 
information from a clearing organization or from information published 
by the Internal Revenue Service (see Sec.  601.601(d)(2) of this 
chapter)) has engaged in a transaction described in Sec.  1.6043-4T(c) 
(acquisition of control) or Sec.  1.6043-4T(d) (substantial change in 
capital structure), shall file a return of information with respect to 
the customer, unless the customer is an exempt recipient as defined in 
paragraph (b) of this section.
    (b) Exempt recipients. A broker is not required to file a return of 
information under this section with respect to the following customers:
    (1) Any customer who receives only cash in exchange for its stock in 
the corporation, which must be reported by the broker pursuant to Sec.  
1.6045-1(a).
    (2) Any customer who is an exempt recipient as defined in Sec.  
1.6043-4T(b)(5) or Sec.  1.6045-1(c)(3)(i).
    (c) Form, manner and time for making information returns. The return 
required by paragraph (a) of this section must be on Forms 1096, 
``Annual Summary and Transmittal of U.S. Information Returns'', and 
1099-B, ``Proceeds from Broker and Barter Exchange Transactions,'' or on 
an acceptable substitute statement. Such forms must be filed on or 
before February 28 (March 31 if filed electronically) of the year 
following the calendar year in which the acquisition of control or the 
substantial change in capital structure occurs.
    (d) Contents of return. A separate Form 1099-B must be prepared for 
each customer showing--
    (1) The name, address and taxpayer identification number (TIN) of 
the customer;
    (2) The name and address of the corporation which engaged in the 
transaction described in Sec.  1.6043-4T(c) or (d);
    (3) The number and class of shares in the corporation exchanged by 
the customer;
    (4) The aggregate amount of cash and the fair market value of any 
stock (other than stock described in 1.6043-4T(a)(1)(v)(C)) or other 
property provided to the customer in exchange for its stock; and
    (5) Such other information as may be required by Form 1099-B.
    (e) Furnishing of forms to customers. The Form 1099-B prepared for 
each customer must be furnished to the customer on or before January 31 
of the year following the calendar year in which the customer receives 
stock, cash or other property.
    (f) Single Form 1099. If a broker is required to file a Form 1099-B 
with respect to a customer under both this Sec.  1.6045-3T and Sec.  
1.6045-1(b) with respect to the same transaction, the broker may satisfy 
the requirements of both sections by filing and furnishing one Form 
1099-B that contains all the relevant information, as provided in the 
instructions to Form 1099-B.
    (g) Effective date. (1) This section applies with respect to any 
acquisition of control and any substantial change in capital structure 
occurring after December 31, 2001, if the reporting corporation or any 
shareholder is required to recognize gain (if any) as a result of the 
application of section 367(a) as a result of the transaction. However, 
paragraphs (a) through (f) of this section apply to acquisitions of 
control and substantial changes in capital structure occurring after 
December 31, 2002, if the reporting corporation or any shareholder is 
required to recognize gain (if any) as a result of the application of 
section 367(a) as a result of the transaction. For transactions prior to 
that date, see Sec.  1.6045-3T as published in 26 CFR Part 1 (revised as 
of April 1, 2003). This section expires on November 14, 2005.
    (2) For any acquisition of control or any substantial change in 
capital structure occurring during the 2003 calendar year, a broker may 
elect to satisfy the requirements of this section by using Form 1099-CAP 
in lieu of Form 1099-B.

[T.D. 9101, 68 FR 75125, Dec. 30, 2003; 69 FR 7351, Feb. 17, 2004]