Form 1099-DIV is an information return issued by banks and other financial institutions to report dividends and distributions received by an investor within a calendar year.
Investors receive a Form 1099-DIV from each institution where they have investments that paid out dividends or other distributions exceeding $10 during the year. If investors have accounts at multiple institutions, they may receive several forms.
The information provided on Form 1099-DIV is used by investors to accurately report the dividends and distributions on their tax return.
As a payer, you must file Form 1099-DIV for each recipient if any of the following situations occur:
If any of these conditions apply, you are legally obligated to file Form 1099-DIV to report the dividend payments or distributions made to that recipient during the tax year.
Payers must be aware of two important deadlines related to Form 1099-DIV:
The deadline for payers to file Form 1099-INT with the IRS depends on the filing method:
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Payers are required to provide copies of Form 1099-DIV to the recipients by January 31st of the year following the tax year for which the form is being issued. This ensures that recipients have the necessary information to accurately report their dividends and distributions when filing their tax returns.
Failure to meet these deadlines or providing inaccurate information on Form 1099-DIV may result in penalties imposed by the IRS. Payers should take appropriate measures to ensure timely and accurate filing and distribution of Form 1099-DIV to avoid any potential penalties.
If you miss filing Form 1099-DIV within the deadline, the IRS will impose a penalty. Here's the Form 1099-DIV penalty rates:
Days late | Penalty per return |
---|---|
Up to 30 days | $60 |
31 days late through August 1 | $130 |
After August 1 or not filed | $330 |
Intentional disregard | $660 |
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Let's see line-by-line instructions on how to fill out Form 1099-DIV.
Enter your name or business name, complete address, and TIN (SSN if you're an individual; EIN if you're a business)
Enter the recipient’s name, complete address, and TIN (SSN for an individual; EIN for a business).
Enter the total amount of ordinary dividends received, including:
The amount in Box 1a includes the amounts reported in Boxes 1b, 2e, and the recipient's share of investment expenses from Box 6.
Enter the portion of the dividends in box 1a that qualifies for the reduced capital gains rates.
Enter total capital gain distributions (long-term). Include all amounts shown in boxes 2b, 2c, 2d, and 2f.
Enter any amount included in box 2a that is an unrecaptured section 1250 gain from certain depreciable real property.
Enter any amount included in box 2a that is a section 1202 gain from certain qualified small business stock.
Enter any amount included in box 2a that is a 28% rate gain from sales or exchanges of collectibles.
Enter any amount included in box 1a that is section 897 gain from dispositions of USRPI.
Enter any amount included in box 2a that is section 897 gain from dispositions of USRPI.
Enter non-dividend distributions, if determinable.
Enter any federal income tax that was withheld from the payments reported.
Enter the qualified REIT dividends paid by a REIT or section 199A dividends paid by a RIC to the recipient. This amount is included in the amount reported in box 1a.
Enter the recipient's proportional share of certain expenses that a non-publicly offered regulated investment company (RIC) can deduct when computing its taxable income.
This amount must be included in the recipient's gross income under section 67(c). It should also be added to the amount reported in Box 1a (Total Ordinary Dividends).
DO NOT include any investment expenses in Box 1b.
Enter foreign tax paid on dividends and other distributions on stock. A RIC must report only the amount it elects to pass through to the recipient. This amount must be reported in U.S. dollars.
Enter the name of the foreign country or U.S. territory for which the foreign tax was paid. Only applicable if you have reported in box 7.
Enter cash distributed as part of a liquidation.
Enter noncash distributions made as part of a liquidation. Show the fair market value as of the date of distribution.
Check this box if you're
Enter the amount of exempt-interest dividends received from a mutual fund or other RIC. These are dividends derived from tax-exempt interest income sources.
Also include in Box 12 any specified private activity bond interest dividends, which should additionally be reported separately in Box 13.
Box 14: Enter the 2-letter state abbreviation for the state
Box 15: Enter the state identification number
Box 16: Report any state income tax withheld from the payment
You can file Form 1099-DIV, which reports dividends and distributions, either electronically or by mail.
The IRS recommends e-filing Form 1099-DIV, as it is an efficient and straightforward process. E-filing also offers the advantage of receiving notifications promptly after the IRS processes your submission.
To e-file Form 1099-DIV, you can choose an IRS-authorized e-file service provider, such as TaxZerone.
TaxZerone streamlines the e-filing process, allowing you to complete it within minutes. Here's how it works:
By following these simple steps, you can ensure that your Form 1099-DIV is filed electronically in a timely and efficient manner.
If you prefer to file Form 1099-DIV through traditional paper methods, follow these steps:
Important considerations for paper filing:
If you prefer paper filing, the mailing address for Form 1099-DIV varies depending on your business location. Below is a table summarizing the mailing address for Form 1099-DIV:
If your business operates in or your legal residence is… | Mail Form 1099-DIV to… |
---|---|
Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Kentucky, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Texas, Vermont, Virginia | Internal Revenue Service Austin Submission Processing Center P.O. Box 149213 Austin, TX 78714 |
Alaska, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming | Department of the Treasury IRS Submission Processing Center P.O. Box 219256 Kansas City, MO 64121-9256 |
California, Connecticut, District of Columbia, Louisiana, Maryland, Pennsylvania, Rhode Island, West Virginia | Department of the Treasury IRS Submission Processing Center 1973 North Rulon White Blvd. Ogden, UT 84201 |
Outside the United States | Internal Revenue Service, Austin Submission Processing Center, P.O. Box 149213, Austin, TX 78714 |
Before initiating the e-filing process for Form 1099-DIV, it's essential to have all the necessary information ready to ensure a smooth and efficient filing experience. Here's what you'll need to gather:
Once you have collected all the required information, you can proceed with the e-filing process using TaxZerone in three simple steps:
Step 1: Complete Form 1099-DIV
Open the Form 1099-DIV and fill out the necessary fields with the information you have gathered, including the payer's details, the recipient's details, dividends paid, and any federal income tax withheld.
Step 2: Review and Transmit the Return
Carefully review all the information you have entered to ensure accuracy. Once you have verified the details, transmit the completed Form 1099-DIV to the IRS electronically through TaxZerone's secure platform.
Step 3: Provide the Recipient Copy
After successfully transmitting the form to the IRS, send a copy of the completed Form 1099-DIV to the recipient. This will allow them to report the dividend income accurately on their tax return.
When you choose to e-file Form 1099-DIV with TaxZerone, you can enjoy several advantages that streamline the filing process and ensure compliance with IRS requirements. These benefits include:
By leveraging TaxZerone's e-filing solution, you can streamline the Form 1099-DIV filing process, ensuring accuracy, efficiency, and compliance with IRS requirements. You can save time, reduce the risk of errors, and provide a better experience for your recipients.