Business News

Qwest Announces Tax Treatment for 2010 Dividends

Monday 24. January 2011 - Qwest Communications International Inc. (NYSE: Q) today announced the expected tax treatment for its 2010 dividends. During 2010, Qwest paid quarterly dividends on its common stock that amounted to $0.32 per share. For United States federal income tax-reporting purposes, the company will report the 2010 dividends as non-taxable distributions.

Non-taxable distributions are generally treated as a return of capital to the extent of a shareholder’s basis in his or her shares. Accordingly, these non-taxable distributions reduce that tax basis. Once a shareholder’s basis is reduced to zero, non-taxable distributions generally will be taxed as capital gains.
While the above information includes general statements about the tax classification of dividends paid on Qwest common stock, these statements do not constitute tax advice. The taxation of corporate distributions can be complex, and stockholders are encouraged to consult their tax advisers to determine what impact the above information may have on their specific tax situation.