LITTLE ROCK, Ark., July 2, 2013 (GLOBE NEWSWIRE) — Windstream Corp. (Nasdaq:WIN) today announced a change in the tax treatment of dividends paid to stockholders in 2012, which may result in income tax refunds.
Windstream previously reported the 2012 dividends as entirely taxable income. Under the revised reporting, 66.417 percent of the dividend amounts paid in 2012 are to be treated as non-taxable income. As a result of this change, shareholders who have already filed 2012 income tax returns may be eligible for refunds on taxes previously paid on their 2012 dividends.
Revised IRS Forms 1099-DIV reflecting the revised tax reporting of the dividend will be mailed to stockholders beginning on July 15, 2013.
Stockholders who hold their shares through a bank or broker should receive revised IRS Forms 1099-DIV from that institution.
The company has posted Form 8937 (Report of Organizational Actions Affecting Basis of Securities) on the Investor Relations section of its website at www.windstream.com/investors to assist investors with cost-basis reporting by identifying activities that could affect the cost basis of their investment.
Stockholders should consult their tax advisor to determine the tax cost basis of their holdings and the appropriate tax treatment of dividends paid in 2012.
Going forward, future dividends paid to stockholders are expected to be treated in part as taxable and non-taxable income. For dividends paid in 2013, Windstream currently estimates 50 percent to 60 percent will be treated as non-taxable income.
This change in tax treatment does not have any impact on Windstream’s ability to pay its dividend, and there has been no change to Windstream’s net income, free cash flow or other financial results as previously reported under Generally Accepted Accounting Principles (GAAP).
Stockholders with questions about the revised tax reporting can contact Windstream’s shareholder services representative, Okapi Partners, by calling 1-877-259-6290 or sending an email to windstream@okapipartners.com