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E-File IRS Form 1099-CAP Online for 2022 Tax Year

What is a 1099-CAP Form?

Form 1099-CAP is furnished to shareholders who receive cash, stock, or property from an acquisition of control or a substantial change in capital structure. The corporation's identity, form, or place of organization and/or the transfer/merging of a substantial amount of assets. 1099 CAP has a minimum entry of 100 million dollars. But if a share owner invests in a company that has a big share a 1099 CAP may show up.

If a filer has a gain from the exchange, the filer will need to report it on the IRS Form 8849 when they file their income tax return.
The IRS encourages the filer to designate an account number for all Form 1099-CAP that are being filed. Truncation is not allowed on any documents the filer files with the IRS.

How to File Form 1099 CAP?

1099 CAP Form
  • Box 1: Date of Sale or Exchange
  • Box 2: Aggregate Amount Received
  • Box 3: No. of Shares Exchanged
  • Box 4: Classes of Stock Exchanged
  • Box 5: Blank

What you will need to file Form 1099-CAP:

  • Taxpayer's (CORPORATION/SHAREHOLDER) information
  • Account number
  • Shares stock information

An account number is required if, the taxpayer holds multiple policies for a recipient for whom they are filing Form 1099-CAP.

Watch our step-by-step video to E-File Form 1099-CAP with IRS

Who Must File Form 1099-CAP?

Anyone who may own a stock that undergoes a significant change in control or capital structure and receives cash, stocks, or other property as a result the company will send a Copy B of the 1099-CAP Form. For example, a domestic corporation is required to file Form 8806, Information Return for Acquisition of Control or Substantial Change in Capital Structure, must file Form 1099-CAP with the IRS and furnish a copy to each shareholder who receives cash, stock, or property as a result of the acquisition of control or substantial change in capital structure.

Some exceptions are:

  • A tax-exempt organization
  • A corporation (except a subchapter S corporation)
  • An Individual Retirement Account (IRA)
  • The U.S. government or a state or a foreign government, an international organization, or a foreign central bank of issue
  • A Real Estate Investment Trust (REIT)
  • A Regulated Investment Company (RIC)
  • A securities or commodities dealer
  • An entity registered under the Investment Company Act of 1940
  • A common trust funds
  • A financial institution such as a bank or credit union, or similar organization
  • A foreign individual whom the corporation associates with a valid IRS Form W-8BEN (Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting)

There are three copies of the form the first copy will go to the IRS, the second copy is for the Shareholder, and the third copy will to the Corporation.

When is the Deadline to File Form 1099 CAP?

Filing Type Deadline
Recipient copy January 31st
IRS Paper Filing February 28th
IRS Electronic Filing March 31st

Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file on the next business day.

Still Have Questions?

Form 1099-CAP is used for furnished & shareholders who receive cash, stock, or other property from an acquisition of control or a substantial changed in capital structure.

Required Details to file Form 1099-CAP are Corporation Information & Tin of Corporation, Shareholder Information, Tin as well as any amounts

Yes, Tax2efile offers a bulk upload feature that allows the user to upload all of the payers to an excel sheet for a faster process.

Tax2efile allows you to correct a mistake to the recipient’s information for TINs, Names & amounts.

Yes, Tax2efile offers printing and mailing service! Our dedicated team will print and mail out each form you filed.

Using our fast electronic service, you can complete your filing within 5 minutes.

To file Form 1099-CAP for a single return the filing fee is $3.25.

The IRS requires Form 1099-CAP to be submitted by February 28 through the mail and by March 31 if you file the form electronically however, recipients’ copy should be mailed by January 31.

The penalty can be from $50 per 1099 form, the maximum penalty can be up to $194,000. The penalty increases to $100 per 1099 form if you submit more than 30 days after the due date, but by August 1; the maximum penalty is $556,500. If you file after August 1, the penalty increases to $280 per 1099 form, with a maximum of $3,392,000. Additionally, there are penalties for failure to furnish the payee statement.

If you have more questions, please refer to our FAQ page.

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