SECTION 5. PAYMENTS REPORTED

ON FORMS 1099–DIV FOR 2003

Some taxpayers may receive Forms 1099–DIV for calendar year 2003 that erroneously characterize payments in lieu of dividends as dividend income because the brokers issuing the forms have not yet modified their information reporting systems to comply with the JGTRRA. A taxpayer who receives payments in lieu of dividends may treat the payments as dividend income to the extent that the payments are reported to the taxpayer as dividend income on Form 1099–DIV for calendar year 2003, unless the taxpayer knows, or has reason to know, that the payments are in fact payments in lieu of dividends rather than actual dividends.