§ 117.18. Return of information as to payment in excess of $10.
(a) A person making a distribution, to a taxpayer, out of a pension or profit sharing plan, other than by reason of death, disability or retirement, shall make an annual information return, to the Department of Revenue, Bureau of Personal Income Tax, with respect to the distribution, to the extent that the distribution exceeds that portion contributed to the plan by the taxpayer.
(1) Information returns shall be filed on or before February 28 of each year for distributions made to a taxpayer in the preceding calendar year.
(2) Separate information returns shall be prepared for each taxpayer receiving a distribution, and the return shall substantially conform to Internal Revenue Service Form 1099R.
(i) The returns shall show the following:
(A) The name, address and identification number of the person making the distribution.
(B) The name, address and Social Security number of the taxpayer receiving the distribution.
(C) The amount or value of the distribution made and the amounts contributed by the employer and by the employe, respectively.
(ii) A copy of the return shall be supplied to the employe.
(3) With prior approval of the Director of the Pennsylvania Personal Income Tax Bureau, a person required to make information returns may be permitted to submit a magnetic tape or computer printed listing in lieu of copies of Form 1099R.
(b) On or before February 28 of each year, a Pennsylvania information return for recipients of dividends and other taxable or nontaxable distributions on shares of stock or beneficial interests shall be made by any of the following:
(1) An investment company making a distribution exceeding $10 to a taxpayer or other investment company if the investment company making payment received interest exempt from tax under the laws of the Commonwealth but is not a regulated investment company, as defined at 26 U.S.C.A. § 851 (relating to definition of regulated investment company).
(2) A corporation that has an election in effect under 26 U.S.C.A. § 1362 (relating to election; revocation; termination) making a distribution exceeding $10 to a taxpayer if the corporation is not required to make an information return on REV Form 20-S, ‘‘Pennsylvania S Corporation Information Return.’’
(3) An investment company making a distribution exceeding $10 to a taxpayer or other investment company if the investment company making payment received interest exempt from State taxation under the laws of the United States.
(4) A regulated investment company, as defined in paragraph (1), making a distribution exceeding $10 to a taxpayer or other investment company if the regulated investment company making payment received interest on State or local bonds that is taxable under this article.
(5) A corporation, association, business trust or investment company making a distribution exceeding $10 to a taxpayer if it is not required to make an information return on Federal Form 1099-DIV.
(6) A personal holding company or foreign corporation, each as defined at 26 U.S.C.A. § 7701 (relating to definitions), making a distribution exceeding $10 to a taxpayer.
(c) Pennsylvania information return. The Pennsylvania information return shall be made in one of the following ways:
(1) The Pennsylvania information return may be made on a Pennsylvania Form 99-DIV ‘‘Information Return for Recipients of Dividends and Distributions’’ or other form acceptable to the Department and shall show the following:
(i) The payer’s name, address and Federal identification number.
(ii) The recipient’s name, address and Federal identification number.
(iii) The amount of dividends, nontaxable distributions, and, in the case of investment companies, Pennsylvania exempt-interest dividends paid.
(2) If a regulated investment company furnishes Federal Form 1099-DIV to a recipient in compliance with Federal Income Tax requirements, the Pennsylvania information return may be made by attaching or providing one of the following:
(i) A separate statement showing the ratio of Pennsylvania exempt-interest dividends paid to total ordinary dividends reported on the Federal form.
(ii) A separate statement showing other information, if the statement and Federal form contain sufficient information to enable distributees to compute the correct amount of Pennsylvania exempt-interest dividends.
(3) If a regulated investment company is not required to furnish Federal Form 1099-DIV, the Pennsylvania information return may be made by separate statement showing the amount of dividends, nontaxable distributions and Pennsylvania exempt-interest dividends paid or containing sufficient information to enable distributees to compute the amount of taxable dividend distributions and any adjustment to basis or taxable gain for the taxable year.
(d) Unless an extension is granted by the Department, on or before February 28 of each calendar year beginning on or after January 1, 1997, an information return shall be furnished to each recipient of distributions who makes a written request therefor or who is one of the following:
(1) A resident individual, estate or trust or other taxpayer.
(2) An investment company.
(e) An investment company, corporation, association, business trust or personal holding company may rely on its business records in determining the identity and place of residence of recipients.
Authority The provisions of this § 117.18 amended under section 354 of the Tax Reform Code of 1971 (72 P. S. § 7354).
Source The provisions of this § 117.18 adopted September 27, 1974, 4 Pa.B. 2078; amended March 1, 1996, effective March 2, 1996, 26 Pa.B. 887; amended November 13, 1998, effective November 14, 1998, 28 Pa.B. 5669. Immediately preceding text appears at serial pages (211399) to (211401).
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