Bristol Bay Settlement Trust Distributions: The Settlement Trust distribution benefits paid in 2019 are not taxable and have not been reported on Form 1099. Therefore, no 1099 tax forms have been sent to shareholders.
Quarterly Elder Settlement Trust Distributions: The Bristol Bay Elders Trust distributions received in 2019 are not taxable and have not been reported on Form 1099. Therefore, no 1099 tax forms have been sent to shareholders.
ANCSA 7(j) Payments: At-large shareholders received a $20.96 per share ($2,096 for 100 shares) 7(j) resource payment in 2019. 7(j) payments are reported on Form 1099-MISC in box 3 (Other Income). The 7(j) payment derives from resource sharing among the 12 regional corporations as required by the Alaska Native Claims Settlement Act (ANCSA). The 7(j) payment appears on a different form because resource revenue payments are not dividends and are not considered investment income. Village corporation shareholders do not receive a 7(j) dividend as ANCSA requires that resource revenue be paid directly to the village corporations.
Door Prizes: Door prizes or other winnings in cash or property valued of $600 or more are reported in Box 3 (Other Income) on Form 1099-MISC.
BBNC cannot provide tax advice and shareholders are encouraged to consult with a tax advisor regarding individual circumstances and applicable federal and state tax requirements. Please remember that it is your responsibility to accurately report your BBNC related income on your tax returns.
Village Corporation 1099 Reporting: Bristol Bay Corporate Services (BBCS) processes dividends for several villages in the Bristol Bay Region. The following summarizes the 1099-DIV reporting for dividends or other payments processed on behalf of villages by BBCS.
Dividends: The following village distributions were reported as dividends in Box 1a on Form 1099-DIV. Dividends reported in box 1a are taxable dividends. The dividend amounts are also reported in Box 1b indicating the dividends are from a domestic corporation and are eligible for the lower dividend tax rates.
- Bay View
- Pedro Bay
Non-Dividend Distributions: The following village distributions were reported in Box 3 (non-dividend distributions) on Form 1099-DIV. Please consult with a tax advisor regarding the taxability of these distributions as they may be non-taxable.
- Far West
URGENT NOTICE – CORRECTED 1099-DIV FORMS BEING ISSUED FOR CHOGGIUNG, KOLIGANEK, MANOKOTAK, TOGIAK AND PAUGVIK SHAREHOLDERS
Bristol Bay Corporate Services has been notified that information presented on some of the 1099 forms is incorrect. This has affected several village corporation shareholders. We have rebuilt and verified the files for each village corporation and will be mailing corrected 1099s as follows:
Corrected 1099-Divs will be issued for the following Village Corporations:
Village Corporation Settlement Trust Distributions: The distributions to Choggiung and Paug-Vik shareholders in 2019 were actually made from the Choggiung Settlement Trust and Paug-Vik Shareholders Trust, respectively. These distributions are not taxable. 1099s should not have been issued for these distributions. A corrected 1099 will be issued showing zero in box 3.
Village Corporation Distributions of Alaska Native Funds: The distributions to Manokotak and Togiak shareholders were distributions of Alaska Native Funds originally received by the village corporations under ANCSA. These distributions are not taxable and 1099s should not have been issued. A corrected 1099 will be issued showing zero in box 3.
Please provide a copy of the corrected 1099 to your tax advisor or be sure to use the corrected 1099 if you are preparing your own return.
The Corrected 1099s have been completed and were mailed on February 12. BBCS sincerely and humbly apologizes for this error.
1099-Divs for the following Village Corporations were correct when issued. No corrected 1099-Divs are needed.
- Bay View
- Pedro Bay
- Far West
*Reporting for village distributions is determined by the respective Village Corporation and communicated to BBNC in writing. BBNC does not determine taxability of these distributions. Please contact your village corporation if you have any questions.