IRS Form 1099s will be mailed on February 1 and reflect all 2015 payments. Please note that you may receive more than one type of Form 1099, depending on the type of income received from CIRI, and the proper IRS forms and schedules to use when completing your tax return may vary depending on the types of CIRI payments received. For example, IRS instructions stipulate that IRS Form 1040A is not the proper form to use if a 1099-MISC was received.
In 2015, CIRI paid $36.51 per share (or $3,651 per 100 shares) in quarterly dividends, which were reported on a 1099-DIV in both Box 1a – Ordinary Dividends, and Box 1b – Qualified Dividends. Distributions received in 2015 from the Elders’ Benefit Program are also reported by CIRI on a Form 1099-DIV in both Box 1a and Box 1b. The Box 1a amount is the total of all taxable distributions CIRI paid for dividends and Elders’ Benefit Program distributions. Box 1b shows the same amount and may qualify for a reduced tax rate. If you have held your shares for less than one year, please consult your tax advisor regarding the proper treatment of qualified dividends.
CIRI Elders’ Settlement Trust payments had both a taxable and nontaxable portion, with the taxable portion reported in Boxes 1a and 1b on a 1099-DIV, and the nontaxable portion reported in Box 3 – Nondividend Distributions. If you received all four Elders’ Trust payments last year, $1,566.32 is reported in Boxes 1a and 1b, and the remaining $233.68 is reported in Box 3.
If you inherited shares in 2015 you may have an amount reported in Box 3 – Nondividend Distributions, some or all of which could be subject to tax depending upon your tax basis in the stock. Please consult your tax advisor for the appropriate treatment of any amount reported in Box 3.
At-large shareholders received a $15.4133 per share (or $1,541.33 per 100 shares) resource revenue payment in 2015, which will be reported on a 1099-MISC in Box 3 – Other Income. The payments appear on a different form because resource revenue payments are not dividends, and are not considered investment income. If you are a village shareholder, ANCSA directs that your resource revenue payment be paid to your village corporation; therefore, CIRI does not report this amount as income to you. 2015 prize payments will be reported on a 1099-MISC, in Box 3.
Remember, it is your responsibility to accurately report your CIRI income on your tax returns. CIRI cannot provide tax advice. Shareholders are encouraged to consult with a tax advisor regarding individual circumstances and applicable federal and state tax requirements.
The trustees of the CIRI Elders’ Settlement Trust have approved the 2016 Elders’ Trust distribution schedule, with payments scheduled for March 11, June 10, September 9 and December 9. The trust mandates quarterly payments of $450 per eligible Elders for as long as the trust has assets available to make the distributions. Original shareholders who are 65 years of age or older, and who own at least one share of CIRI stock as of these dates, are eligible to receive payments, and need to do nothing but keep a current mailing address on file.
The CIRI Board has approved the following payment dates for 2016 dividends: March 31, June 30, September 30 and December 8. CIRI’s dividend policy states that the total dividend payment to shareholders in any given year is equal to 3.50 percent of total shareholders’ equity, calculated as of December 31 of the prior year. Dividend amounts are calculated shortly before the date of record for the first quarter dividend, which generally falls within the last two weeks of March. As the first step, CIRI’s prior-year accounting books must be “closed,” which means all prior-year expenses and income must be received and either paid or properly accounted for. Next, the finance and accounting department prepares CIRI’s financial statements for the prior-year, after which an independent accounting firm is retained to review the statements and confirm their accuracy. This process will determine CIRI’s total shareholders’ equity upon which current-year dividends will be based.
Prior to the completion and audit of the financial statements, the accounting and finance department has enough information to estimate the ending shareholders’ equity balance, enabling the amounts of the first through third quarter dividends to be declared. Once the completed financial statements have been reviewed and confirmed by the independent accounting firm, the amount of the fourth quarter dividend is able to be calculated and announced.
A table containing the dates for each type of payment CIRI expects to issue to shareholders in 2016 is posted here and will be updated as soon as possible after amounts have been calculated.