DENVER – Jan. 21, 2011 – Qwest Communications International Inc. (NYSE: Q) today announced the expected tax treatment for its 2010 dividends. During 2010, Qwest paid quarterly dividends on its common stock that amounted to $0.32 per share. For United States federal income tax-reporting purposes, the company will report the 2010 dividends as non-taxable distributions.
Non-taxable distributions are generally treated as a return of capital to the extent of a shareholder’s basis in his or her shares. Accordns reduce that tax basis. Once a shareholder’s basis is reduced to zero, non-taxable distributions generally will be taxed as capital gains.
While the above information includes general statements about the tax classification of dividends paid on Qwest common stock, these statements do not constitute tax advice. The taxation of corporate distributions can be complex, and stockholders are encouraged to consult their tax advisers to determine what impact the above information may have on their specific tax situation.
Customers coast to coast turn to Qwest’s industry-leading national fiber-optic network and world-class customer service to meet their communications and entertainment needs. For residential customers, Qwest offers a new generation of fiber-optic-fast Internet service, high-speed internet solutions, as well as home phone, Verizon Wireless, and DIRECTV® services. Fortune 500 companies and other large businesses andwholesale customers, as well as small businesses and governmental agencies, choose Qwest to deliver a full suite of network, data and voice services. Additionally, Qwest participates in Networx, the largest communications services contract in the world and is recognized as a leader in the network services market by leading technology industry analyst firms.