Page:United States Statutes at Large Volume 76.djvu/1101

 76 STAT.]

PUBLIC LAW 87-834-OCT. 16, 1962

cise or nonexercise of a power of appointment), for purposes of this paragraph such property or interest therein shall be deemed to have been acquired by the decedent before February 1, 1962, if before that date the donor or prior decedent had acquired the property or his interest therein or had possessed a power of appointment in respect of the property or interest. SEC. 19. REPORTING OF INTEREST, DIVIDEND, AND PATRONAGE DIVIDEND PAYMENTS OF $10 OR MORE DURING A YEAR. (a) RETURNS REGARDING PAYMENT OF DIVIDENDS.—Section 6042 (relating to returns regarding corporate dividends, earnings, and profits) IS amended to read as follows: "SEC. 6042. RETURNS REGARDING PAYMENTS OF DIVIDENDS AND CORPORATE EARNINGS AND PROFITS. "(a)

1053

26 USC 6042.

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 or his delegate, 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 or his delegate, make a return setting forth the aggregate amount of such payments, and the name and address of the Eerson to whom paid. ) 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— " (A) to the extent provided in regulations prescribed by the Secretary or his delegate, any distribution or payment— "(i) by a foreign corporation, or " (ii) to a foreign corporation, a nonresident alien, or a partnership not engaged in trade or business in the United States and composed in whole or in part of nonresident aliens; and " (B) any amount described in section 1373 (relating to undistributed taxable income of electing small business corporations). "(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.

26 USC 316.

26 USC 1373.

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