There is a business out there that purchases big companies, and restructures them. These companies would need to send out 1099-CAP to all the shareholders in which the paid cash, stock or other property to.
Form 1099-CAP, Changes in Corporate Control and Capital Structure is given to shareholders of a corporation in which control of the corporation underwent a substantial change in capital structure during the year. This form should be given to recipients who have received cash, stock, or other property from an acquisition of control or a substantial change in capital structure.
E-File Magic 1099 Software would make filing Form 1099-CAP extremely easy, you can upload an Excel sheet into the software, the software populates all the correct information into the forms and pow! You have completed forms to send to your clients. Did I also mention that we offer a print and mail service so you wouldn’t even need to mail these forms out? Check out our 1099 software and give it a try!