Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 73

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 73
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therefore, jeopardize the Fund’s qualification for taxation as a RIC and possibly subject the Fund to the 4% excise tax. The Fund
will endeavor to avoid restrictions on its ability to make dividend payments.

Information Reporting

Section 6045B of the Code generally imposes certain
reporting requirements on the Fund with respect to any organizational action that affects the tax basis of the Shares for U.S. federal
income tax purposes. The Fund has historically made return of capital distributions (“ROC Distributions”) to certain Stockholders
and, to the extent such payments continue, the Fund will generally be required to file IRS Form 8937, Report of Organizational Actions
Affecting Basis of Securities (“Form 8937”), with the IRS and deliver an information statement to certain Stockholders, subject
to certain exceptions. Generally, the Fund must file Form 8937 with the IRS on or before the 45th day following the corporate action
or, if earlier, January 15 of the year following the calendar year of the corporate action. In addition, the Fund must furnish the same
information to certain Stockholders on or before January 15 of the year following the calendar year of the corporate action. However,
the Fund generally would not be required to file Form 8937 or furnish this information to Stockholders provided it posts the requisite
information on its primary public website by the due date for filing Form 8937 with the IRS and such information is available on its
website (or any successor organization’s website) for 10 years.

As the Fund will generally not be able to determine
whether a distribution during the year will be out of its earnings and profits (and, therefore, whether such distribution should be treated
as a dividend or a ROC Distribution for these purposes) until the close of the tax year, the Fund does not intend to file Form 8937 until
after the end of the current calendar year. Based on the limited interpretive guidance currently available, the Fund believes that its
treatment of ROC Distributions and its current intended action regarding Form 8937 continue to be consistent with the requirements of
Form 8937, Section 6045B and the Treasury Regulations thereunder. The Fund intends to utilize its best efforts to determine the tax characterization
of the Fund’s distributions as soon as practicable following the close of the year and timely comply with the abovementioned Section
6045B requirements, to the extent applicable. The Fund and its management do not believe