Issuers of corporate stock must report corporate actions that affect stock basis, including but not limited to mergers, stock splits, stock dividends, recapitalizations and common stock distributions paid in excess of "earnings and profits", as defined by the U.S. Internal Revenue Code. The extent to which distributions made by FirstEnergy Corp. (“FE”) to its shareholders are taxable as a dividend for U.S. federal income tax purposes is reported to shareholders on Form 1099-DIV.
Additionally, nondividend distributions characterized as “return of capital” require FE to post on its website Form 8937 reflecting the impact on shareholders’ tax basis for each distribution made. By posting this information, FE intends to satisfy the requirements of public disclosure pursuant to Treasury Regulation § 1.6045B-1(a)(3) and (b)(4). Whether any portion of a distribution is a return of capital depends on FE’s estimate of earnings and profits for the full year. The information contained in the Form 8937 is based on reasonable assumptions and estimates at the time the Form is posted. Such estimates and assumptions can change throughout the year and, if they do, FE will file a corrected Form 8937 pursuant to the applicable Treasury Regulations.
As of December 31, 2022, FE estimates that approximately 100% of distributions made during 2022 will be treated as return of capital for federal income tax purposes. See the Forms below for additional information. Final tax reporting for 2022 distributions will occur on Form 1099-DIV, which will be issued in January 2023.
As of December 31, 2021, FE estimates that 100% of distributions made during 2021 will be treated as return of capital for federal income tax purposes. See the Forms below for additional information. Final tax reporting for 2021 distributions will occur on Form 1099-DIV, which will be issued in January 2022.
For U.S. federal income tax purposes only, 100% of the March 1, 2020, June 1, 2020, September 1, 2020, and December 1, 2020 distributions by FE to its shareholders are classified under the U.S. Internal Revenue Code as a nontaxable return of capital and reduction of a shareholder’s tax basis, to the extent of a shareholder’s tax basis in each of its FE common shares, with any remaining amount being taxed as gain.
You should consult your tax advisor regarding the applicable tax consequences to you in
connection with any of these distributions under the laws of the United States (federal, state
and local), and any other applicable non-U.S. jurisdiction.
For U.S. federal income tax purposes only, the March 1, 2019 and June 1, 2019 distributions by FE to its
shareholders are classified under the U.S. Internal Revenue Code as taxable dividends.
For U.S. federal income tax purposes only, approximately 45% of the September 1, 2019 distribution by FE
to its shareholders is classified under the U.S. Internal Revenue Code as a nontaxable return of capital
and reduction of a shareholder’s tax basis, to the extent of a shareholder’s tax basis in each of its FE
common shares, with any remaining amount being taxed as gain.
For U.S. federal income tax purposes only, 100% of the December 1, 2019 distribution by FE to its
shareholders is classified under the U.S. Internal Revenue Code as a nontaxable return of capital
and reduction of a shareholder’s tax basis, to the extent of a shareholder’s tax basis in each of
its FE common shares, with any remaining amount being taxed as gain.