Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 65-32

1965-1 C.B. 522

IRS Headnote

Stockbrokers' and dealers' December or January monthly statements that contain certain information shown on Forms 1099 and 1087, may be furnished to their payee-customers as acceptable written statements required to be furnished to payees under sections 6042 and 6049 of the Internal Revenue Code of 1954.

Full Text

Rev. Rul. 65-32 /1/

Advice has been requested whether the statements furnished to customers by stockbrokers and dealers in securities for the month of December or the month of January of the following year in the manner and containing the information described below satisfy the requirements for the annual statement required to be furnished to recipients of certain dividend and interest payments under sections 1.6042-4 and 1.6049-3 of the Income Tax Regulations.

December monthly statements to customers (usually the actual owner) are furnished by stockbrokers and dealers after all payments for the calendar year have been made and before January 31 of the following year. The statement clearly sets forth the separate total of interest payments made to the customers by the stockbroker or dealer which are reportable on Form 1099, U.S. Information Return for Calendar Year. The statement also includes separate totals of interest payments and dividend payments for the calendar year which are reportable by the stockbroker and dealer on Form 1087, Nominee's Information Return. The statement not only shows the name and address of the stockbroker or dealer furnishing the statement but also shows the name and address of the customer. A legend is also included on the statement that the interest and dividend payments are those reported to the Internal Revenue Service on Forms 1099 and 1087.

Sections 6042 and 6049 of the Internal Revenue Code of 1954 and sections 1.6042-4 and 1.6049-3 of the regulations provide that a written statement shall be furnished to recipients of certain interest and dividend payments aggregating $10 or more for the calendar year. Normally, the statement is required to be furnished after the close of the year and on or before January 31 of the following year. The statement must show the aggregate amount of dividend and interest payments shown on Forms 1099 and 1087 and the name and address of the person filing such forms.

Accordingly, it is held that stockbrokers' and dealers' December monthly statements to their payee-customers for 1964 and later years, as described above, satisfy the requirements of the Code and regulations for written statements to payees. Such statements, however, must show separately and appropriately identify the annual total for all dividend payments and the annual total for all interest payments for the calendar year reportable on Form 1087 and the annual total of interest payments for the calendar year made by the stockbroker or dealer reportable on Form 1099. The name and address of the stockbroker or dealer furnishing the statement and an appropriate legend indicating such amounts are being reported to the Internal Revenue Service should also be included.

Representatives of stockbrokers and dealers have stated that some of them would prefer to furnish the aggregate dividend and aggregate interest payments on their January statements in order not to delay the early issuance of their December statements for the time required to make these additional entries. Where the stockbroker or dealer elects to utilize the regular January statement to furnish the required information for the prior year in lieu of Forms 1099 and 1087, and that statement covers a period which does not end in time for the statement to be furnished to the taxpayer by January 31, no penalty will be asserted provided the statement is mailed on January 31 (in the case of 1965, February 1). No further extension of time will be granted except by a district director pursuant to the regulations.

/1/ Also released as Technical Information Release 686, dated Jan. 28, 1965.