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.
Current Products
Recent Developments
Other Items You May Find Useful:
Form 973, Corporation Claim for Deduction for Consent Dividends
Comment on Form 972
Send us an email or use the Comment on Tax Forms and Publications web submission form to provide us feedback on the content of the products we give you to help you comply with tax law.
Caution: If you have a tax-related question, please go to Help With Tax Questions or call our toll-free number at 1-800-829-1040 (Individuals) or 1-800-829-4933 (Business). We cannot respond to tax-related questions submitted from this page.
Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.
