(a)

Requirement of reporting

(1)

In general

Every person -

(A)

who makes payments of dividends aggregating $10 or more to any other person during any calendar year, or

(B)

who receives payments of dividends as a nominee and who makes payments aggregating $10 or more during any calendar year to any other person with respect to the dividends so received,

shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the person to whom paid.

(2)

Returns required by the Secretary

Every person who makes payments of dividends aggregating less than $10 to any other person during any calendar year shall, when required by the Secretary, make a return setting forth the aggregate amount of such payments, and the name and address of the person to whom paid.

(b)

Dividend defined

(1)

General rule

For purposes of this section, the term "dividend" means -

(A)

any distribution by a corporation which is a dividend (as defined in section 316); and

(B)

any payment made by a stockbroker to any person as a substitute for a dividend (as so defined).

(2)

Exceptions

For purposes of this section, the term "dividend" does not include any distribution or payment -

(A)

to the extent provided in regulations prescribed by the Secretary -

(i)

by a foreign corporation, or

(ii)

to a foreign corporation, a nonresident alien, or a partnership not engaged in a trade or business in the United States and composed in whole or in part of nonresident aliens, or

(B)

except to the extent otherwise provided in regulations prescribed by the Secretary, to any person described in section 6049(b)(4).

(3)

Special rule

If the person making any payment described in subsection (a)(1)(A) or (B) is unable to determine the portion of such payment which is a dividend or is paid with respect to a dividend, he shall, for purposes of subsection (a)(1), treat the entire amount of such payment as a dividend or as an amount paid with respect to a dividend.

(c)

Statements to be furnished to persons with respect to whom information is required

Every person required to make a return under subsection (a) shall furnish to each person 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, and

(2)

the aggregate amount of payments to the person required to be shown on the return.

The written statement required under the preceding sentence shall be furnished (either in person or in a statement mailing by first-class mail which includes adequate notice that the statement is enclosed) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made and shall be in such form as the Secretary may prescribe by regulations.

(d)

Statements to be furnished by corporations to Secretary

Every corporation shall, when required by the Secretary -

(1)

furnish to the Secretary a statement stating the name and address of each shareholder, and the number of shares owned by each shareholder;

(2)

furnish to the Secretary a statement of such facts as will enable him to determine the portion of the earnings and profits of the corporation (including gains, profits, and income not taxed) accumulated during such periods as the Secretary may specify, which have been distributed or ordered to be distributed, respectively, to its shareholders during such taxable years as the Secretary may specify; and

(3)

furnish to the Secretary a statement of its accumulated earnings and profits and the names and addresses of the individuals or shareholders who would be entitled to such accumulated earnings and profits if divided or distributed, and of the amounts that would be payable to each.