Income Tax Reporting
The Internal Revenue Service requires that you sign and attach to your 1996 Federal income tax return a statement setting forth certain prescribed information regarding the distribution. The last page of this document is a sample statement that, after consulting with your tax advisor, you may want to use for that purpose.
If you received a check in payment of fractional share proceeds, a Form 1099B will be issued for payments in excess of $20 and mailed to you in January 1997. A Form 1099B will not be issued for payments of $20 or less, although any such payment that you receive must be reported on your 1996 Federal income tax return.
The information contained herein represents our understanding of existing Federal income tax law and does not constitute tax advice. A more detailed description of the Federal income tax consequences of the distribution can be found at pages 3-4 of the Information Statement dated September 30, 1996, which you should have received prior to the distribution. We suggest that you consult with your own tax advisor, particularly if you purchased your Union Pacific common stock at different prices or acquired them by gift or bequest.