Frequently Asked Questions about IBM, our stock, finances and investing in the company.
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Under federal law, Computershare must withhold 28% of dividend payments and sale proceeds from a stockholder who fails to comply with certain IRS regulations such as providing a taxpayer identification number or certifying (with Form W-9) that you are not subject to backup withholding. The withholding will take place at the time of the payment.
A copy of the report, Form 1099DIV, will be mailed to stockholders in December of each year. If you receive dividend checks, the Form 1099DIV will be attached to your December dividend check. If you have your dividends reinvested, the Form 1099DIV will be part of your December statement. Stockholders who do not receive a check, or a quarterly statement, will receive a separate Form 1099DIV. 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 1099DIV, you may contact Computershare (see contact information).
When shares are sold from the Investor Services Program or a payment on shares is issued as a result of shares tendered or a similar transaction, Computershare must report the gross proceeds of the transaction to the IRS.
A copy of the report, Form 1099B, 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 and therefore a Form 1099-B would not be generated.
To obtain a replacement Form 1099B, 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 origin. 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 1042S 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.