Form 972, Consent of Shareholder To Include Specific Amount in Gross Income
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. A dividend is a consent dividend only if it would have been included in the shareholder’s gross income if it was actually paid. If the shareholder agrees to treat the dividend as taxable, the corporation may be able to claim a consent dividend deduction on its income tax return. Also, the shareholder increases its basis in the stock of that corporation in the amount of the consent dividend for which the shareholder is taxed.
Other Items You May Find Useful:
Form 973, Corporation Claim for Deduction for Consent Dividends
Comment on Form 972
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