Tax reporting

Tax reporting

Frequently asked questions about IBM, our stock, finances and investing in the company.

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Backup withholding

Per Internal Revenue Service (IRS) rules and regulations, for individual registered stockholder accounts, Computershare must withhold 24% of dividend payments and sale proceeds from a registered stockholder who fails to comply with certain IRS regulations such as providing a Taxpayer Identification Number (TIN) and certifying (with Form W-9) or (with Form W8-BEN)  that you are not subject to backup withholding. The withholding will take place at the time of the payment.

Dividends

Computershare must report to the IRS dividend income amounts paid to registered stockholders during a calendar year.

A copy of the report, Form 1099-DIV, will be mailed to registered stockholders in December of each year. If you receive dividend checks, the Form 1099-DIV will be attached to your December dividend check. If you have your dividends reinvested, the Form 1099-DIV will be part of your December statement. Registered stockholders who do not receive a check, or a quarterly statement, will receive a separate Form 1099-DIV. Dividend payments are reportable whether a dividend payment is issued by check, directly deposited to your bank account or reinvested into additional shares of stock.

To obtain this dividend information or a duplicate Form 1099-DIV, you may contact Computershare (see contact information).

Gross proceeds

When shares are sold from the Computershare Investment Plan, the IBM Employees Stock Purchase Plan, or a payment on shares is issued as a result of shares tendered or a similar transaction, Computershare must report the gross proceeds and taxes wihheld of the transaction to the IRS.

A copy of the report, Form 1099-B, will be mailed to you no later than January 31 if you sold shares in the prior year. If the gross proceeds from a sale are less than $20.00, the IRS does not require that transaction to be reported (unless there is a withholding) and therefore a Form 1099-B would not be generated.

To obtain a replacement Form 1099-B, you can contact Computershare (see contact information).

Non-resident alien (foreign) withholding

Income from sources within the United States, such as dividends and interest, that are received by a non-resident alien are subject to a 30% tax rate, or a lower rate if the United States has a tax treaty with your country of residency and Computershare has a valid Form W8-BEN on file from each registered stockholder.  The withholding will take place at the time of the payment. Stockholders who are non-resident aliens will receive a report of dividends paid and taxes withheld via a copy of Form 1042-S by the end of February of the year following the one in which you were paid dividends.

Taxpayer identification numbers

The IRS requires stockholders who have a U.S. taxpayer identification number to provide that number for every company in which they own shares. When necessary, the IRS also requires certification of your taxpayer identification by completion of Form W-9.