Form 972 - Dec 2016

Form 972 is used by shareholders who agree 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.

Shareholders who agree 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.

The completed Form 972 should be sent to the corporation by the due date of the corporation’s tax return for the tax year the corporation will claim the consent dividends as a deduction.