BanditAI
Form 1099-CAP: What you need to know
Form 1099-CAP, Changes in Corporate Control and Capital Structure, is an IRS information return required when shareholders receive cash, stock, or other property valued at $100 million or more as a result of:
- A corporate acquisition or change in control
- A substantial change in a corporation's capital structure
Who is required to file Form 1099-CAP?
Domestic corporations required to file Form 8806 with the IRS must also file Form 1099-CAP when shareholders receive cash, stock, or other property from a corporate transaction.
This includes:
- Corporations acquired through a change in control
- Corporations undergoing a merger, consolidation, or asset transfer
- Corporations that change their identity, form, or place of organization
- Transferee corporations, if the original filing corporation fails to meet the reporting requirement
1099-CAP Deadlines for the 2025 Tax Year
Know your filing and furnishing deadlines to stay compliant and avoid costly penalties.
| Furnish copies to Shareholders | Furnish copies to Clearing Organizations | Electronic Filing with IRS | Paper Filing with IRS |
|---|---|---|---|
| February 2, 2026 | January 5, 2026 | March 31, 2026 | March 02, 2026 |
Information Required to File Form 1099-CAP
Discover the key information needed to file Form 1099-CAP easily.
Corporation Details
Name, address, and TIN.
Shareholder Information
Name, address, and TIN of each shareholder receiving cash, stock, or other property.
Date of Sale or Exchange
Aggregate Amount Received
- Total cash received.
- Fair market value (FMV) of any stock or property received.
- Combined amount received in exchange for the shareholder's exchanged shares.
Number of Shares Exchanged
Type(s) of stock exchanged, such as:
- C – Common stock.
- P – Preferred stock.
- O – Other classes.
The Bandit Commitment
Ensuring the right outcome for every 1099-CAP you file.
Filing Form 1099-CAP requires more than simply submitting information—it demands accurate shareholder data, careful validation, and a process designed for compliance and successful IRS acceptance.
The Bandit Commitment is TaxBandits’ promise to keep your filing accurate, compliant, and fully supported—from data entry to final IRS acceptance and shareholder copy distribution.
Getting the right data in
Every Form 1099-CAP starts with validated, error-free shareholder data—because accuracy at the point of entry means fewer issues down the line.
Guided, end-to-end compliance
From capturing corporate transaction details to distributing recipient copies, TaxBandits manages every step to ensure your reporting obligations are fully met.
Free retransmission
If your form gets rejected by the IRS due to any errors, you can fix and retransmit it at no additional cost.
Money-back guarantee
If we’re unable to get your return accepted or it turns out to be a duplicate, your filing fee may be refunded.
How to File Form 1099-CAP with TaxBandits
TaxBandits provides a structured, guided workflow for accurate reporting, from data entry to final submission.
Prepare forms with ease
No hunting through instructions or second-guessing field definitions.
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Flexible Data Import:
Bring shareholder data via CSV upload or directly through your accounting software integration.
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Guided preparation:
Structured prompts walk you through every required field, no complexities.
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Secure Data Storage:
All filing data is stored securely for easy access, status tracking, and future reference.
Validate your data for accuracy
Our system validates your Form 1099-CAP data at every stage, catching errors before they reach the IRS.
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Built-In Data Validations:
Automatically identify missing TINs, incorrect values, and data inconsistencies before submission.
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Pre-Submission Smart Review:
Review flagged alerts and resolve issues in advance to ensure a clean, accurate filing and higher IRS acceptance rates.
E-file with the IRS & distribute shareholder copies
Submit your Form 1099-CAP securely to the IRS and furnish shareholder copies — all in one streamlined step.
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Secure Transmission:
Your data is encrypted and transmitted securely to the IRS, no paperwork, no postage, no hassle.
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Immediate IRS Acknowledgment:
Receive an IRS acknowledgment for your submission within 1 business day—no waiting around.
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Shareholder Copy Distribution:
Furnish shareholder copies via postal mail, secure online access, or both.
FAQs
Frequently Asked Questions about Form 1099-CAP
The IRS considers mergers, acquisitions, recapitalizations, consolidations, asset transfers, and changes in a corporation's identity, form, or place of organization to qualify. If Form 8806 was required, Form 1099-CAP almost certainly is too.
Yes! Shareholders who receive a Form 1099-CAP may need to report the gain or loss on their individual tax return based on what they received — cash, stock, or other property — in the corporate transaction.
Exempt recipients include corporations, tax-exempt organizations, IRAs, nonresident aliens (when payments are reported on another IRS form), and shareholders who received no cash, stock, or property in the transaction.
Yes, exceptions apply if:
- The shareholder is a corporation, tax-exempt organization, IRA, or other exempt recipient
- No cash, stock, or property was distributed
- The transaction does not meet the $100 million threshold
- The shareholder is a nonresident alien, and the payment is already reported on another IRS form
Penalties range from $60 to $340 per form, depending on how late the filing is. Higher penalties apply for intentional disregard of filing requirements.
Form 8806 is the IRS form that corporations file to report an acquisition of control or a substantial change in capital structure. If your corporation was required to file Form 8806, you are also required to file Form 1099-CAP for each qualifying shareholder.
