SECTION 4. INSTRUCTIONS TO

FORM 1099–MISC AND REV. PROC. 2003–28

The Service has revised the Instructions to Form 1099–MISC for calendar year 2003 for payments in lieu of dividends. The revised instructions direct brokers to report payments in lieu of dividends in Box 8 of Form 1099–MISC whether the recipient is a corporation, an individual, or some other type of taxpayer. In addition, the Service expects to revise Rev. Proc. 2003–28 to allow brokers to furnish composite substitute payee statements for Forms 1099–DIV and Forms 1099–MISC, reporting payments in lieu of dividends, as well as other information returns.