Table of Contents
- Specific Instructions for Form 1099-DIV
- Dividends
- Exceptions
- Qualified Dividends
- Section 404(k) Dividends
- RICs and REITs
- Restricted Stock
- Widely Held Fixed Investment Trusts (WHFITs)
- Statements to Recipients
- 2nd TIN Not.
- Account Number
- Box 1a. Total Ordinary Dividends
- Box 1b. Qualified Dividends
- Box 2a. Total Capital Gain Distr.
- Box 2b. Unrecap. Sec. 1250 Gain
- Box 2c. Section 1202 Gain
- Box 2d. Collectibles (28%) Gain
- Box 3. Nondividend Distributions
- Box 4. Federal Income Tax Withheld
- Box 5. Investment Expenses
- Box 6. Foreign Tax Paid
- Box 7. Foreign Country or U.S. Possession
- Box 8. Cash Liquidation Distr.
- Box 9. Noncash Liquidation Distr.
File Form 1099-DIV, Dividends and Distributions, for each person:
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To whom you have paid dividends (including capital gains dividends) and other distributions on stock of $10 or more,
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For whom you have withheld and paid any foreign tax on dividends and other distributions on stock,
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For whom you have withheld any federal income tax under the backup withholding rules, or
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To whom you have paid $600 or more as part of a liquidation.
If you make a payment that may be a dividend but you are unable to determine whether any part of the payment is a dividend by the time you must file Form 1099-DIV, the entire payment must be reported as a dividend. See regulations under section 6042 for a definition of dividends.
You are not required to report on Form 1099-DIV the following:
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Taxable dividend distributions from life insurance contracts are reported on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
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Exempt-interest dividends from regulated investment companies retain their tax-exempt status, but after December 31, 2005, are reported on Form 1099-INT, Interest Income (see section 852(b)(5)).
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Substitute payments in lieu of dividends. For payments received by a broker on behalf of a customer in lieu of dividends as a result of a loan of a customer's securities, see box 8 in the 2008 Instructions for Form 1099-MISC.
Substitute payments in lieu of dividends may be reported on a composite statement to the recipient with Form 1099-DIV. See Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S.
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Payments made to certain payees including a corporation, tax-exempt organization, any IRA, U.S. agency, state, the District of Columbia, U.S. possession, or registered securities or commodities dealer.
Certain distributions commonly referred to as “dividends” are actually interest and are to be reported on Form 1099-INT. These include
so-called “dividends” on deposit or on share accounts in cooperative banks, credit unions, domestic building and loan associations, domestic and
federal savings and loan associations, and mutual
savings banks.
Except as provided below, qualified dividends are dividends paid during the tax year from domestic corporations and qualified foreign corporations. For individuals, estates, and trusts, qualified dividends are taxed at a maximum rate of 15% (generally, after December 31, 2007, the rate is zero for individuals whose other income is taxed at the 10% or 15% rate).
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Dividends the recipient received on any share of stock held for less than 61 days during the 121-day period that began 60 days before the ex-dividend date. See the instructions for box 1b on page 3. When determining the number of days the recipient held the stock, you cannot count certain days during which the recipient's risk of loss was diminished. The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock is not entitled to receive the next dividend payment. When counting the number of days the recipient held the stock, include the day the recipient disposed of the stock but not the day the recipient acquired it.
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Dividends attributable to periods totaling more than 366 days that the recipient received on any share of preferred stock held for less than 91 days during the 181-day period that began 90 days before the ex-dividend date. See the instructions for box 1b on page 3. When determining the number of days the recipient held the stock, you cannot count certain days during which the recipient's risk of loss was diminished. Preferred dividends attributable to periods totaling less than 367 days are subject to the 61-day holding period rule above.
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Dividends that relate to payments that the recipient is obligated to make with respect to short sales or positions in substantially similar or related property.
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Dividends paid by a regulated investment company that are not treated as qualified dividend income under section 854.
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Dividends paid by a real estate investment trust that are not treated as qualified dividend income under section 857(c).
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Deductible dividends paid on employer securities. See Section 404(k) Dividends, on page 2.
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Incorporated in a possession of the United States or
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Eligible for benefits of a comprehensive income tax treaty with the United States that the Secretary determines is satisfactory for this purpose and that includes an exchange of information program.
Report as ordinary dividends in box 1a of Form 1099-DIV dividends distributed under section 404(k) on stock held by an employee stock ownership plan (ESOP) or a tax credit ESOP. If a section 404(k) distribution is made in the same year as a total distribution from the ESOP, you may report the entire amount on Form 1099-R or you may report the dividends on Form 1099-DIV and the remaining amount on Form 1099-R.
For 2009, the IRS is considering changing the way section certain 404(k) dividends are reported. For more information, see What's Hot in Forms and Publications on the Tax Forms and Publications webpage in the IRS website at http://www.irs.gov www.irs.gov , at a later date.
Section 404(k) dividends are not subject to backup withholding. Also, these dividends are not eligible for the
zero and 15% capital gains rates (see Exceptions under Qualified Dividends on page 1).
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Name of the corporation that issued the stock that was sold,
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Date(s) on which the RIC acquired the stock,
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Date sold,
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Recipient's part of the sales price,
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Recipient's part of the RIC's basis in the stock, and
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Amount of the recipient's section 1202 gain.
For information about reporting dividends on restricted stock, see Rev. Proc. 80-11, 1980-1 C.B. 616, distinguished by Rev. Proc. 83-38, 1983-1 C.B. 773, and Rev. Rul. 83-22, 1983-1 C.B. 17.
Trustees and middlemen must report the gross amount of dividend income attributable to a trust income holder (TIH) in the appropriate box on Form 1099-DIV, if that amount exceeds $10. If the trustee or middleman provides WHFIT information using the safe harbor rules in Regulations section 1.671-5(f)(1) or (g)(1), the trustee or middleman must determine the amounts reported on all Forms 1099 under section 1.671-5(f)(2) or (g)(2), as appropriate.
If you are required to file Form 1099-DIV, you must provide a statement to the recipient. For information about the requirement to furnish an official or acceptable substitute Form 1099-DIV to recipients in person, by statement mailing, or electronically, see part M in the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.
You may enter an “X” in this box if you were notified by the IRS twice within 3 calendar years that the payee provided an incorrect taxpayer identification number (TIN). If you mark this box, the IRS will not send you any further notices about this account. However, if you received both IRS notices in the same year, or if you received them in different years but they both related to information returns filed for the same year, do not check the box at this time. For purposes of the two notices in the 3-year rule, you are considered to have received one notice. You are not required to send a second “B” notice to the taxpayer on receipt of the second notice. See part N in the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G for more information.
For information on the TIN Matching System offered by the IRS, see the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.
The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-DIV. Additionally, the IRS encourages you to designate an account number for all Forms 1099-DIV that you file. See part L in the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.
Enter dividends, including dividends from money market funds, net short-term capital gains from mutual funds, and other distributions
on stock.
Include reinvested dividends and section 404(k) dividends. Include as a dividend the amount of the recipient's share of investment
expenses that you
report in
box 5.
An S corporation reports as dividends on Form 1099-DIV only distributions made during 2008 out of accumulated earnings and profits. See section 1368 for more information.
Enter the portion of the dividends in box 1a that qualify for the
zero and 15% capital gains rates. Include dividends for which it is impractical to determine if the section 1(h)(11)(B)(iii)
holding period
requirement has been met. See Qualified Dividends on page 1.
You must report a dividend paid by a foreign corporation according to the guidance provided in Notice 2003-79 and Notice 2004-71 which contain the rules for reporting the dividend for tax years 2003 and 2004. These rules are extended for 2005 and subsequent tax years by Notice 2006-3.
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Notice 2003-79 is available on page 1206 of Internal Revenue Bulletin 2003-50 at www.irs.gov/pub/irs-irbs/irb03-50.pdf.
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Notice 2004-71 is on page 793 of Internal Revenue Bulletin 2004-45 at www.irs.gov/pub/irs-irbs/irb04-45.pdf.
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Notice 2006-3 is on page 306 of Internal Revenue Bulletin 2006-3 at www.irs.gov/pub/irs-irbs/irb06-03.pdf.
Enter total capital gain distributions (long-term). Include all amounts shown in boxes 2b, 2c, and 2d.
For more information about reporting amounts in boxes 2a through 2d, see section 1(h).
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. See Qualified small business stock—RICs on page 2.
Enter any amount included in box 2a that is a 28% rate gain from sales or exchanges of collectibles.
File Form 5452, Corporate Report of Nondividend Distributions, if you are a corporation and paid nondividend distributions to shareholders.
Enter backup withholding. For example, if a recipient does not furnish its TIN to you in the manner required, you must backup withhold at a 28% rate on certain dividend payments reported on this form. Use Form W-9, Request for Taxpayer Identification Number and Certification, to request the TIN of the recipient. For foreign recipients, use the applicable Form W-8. See the Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY.
Enter the recipient's pro rata share of certain amounts deductible by a nonpublicly offered RIC in computing its taxable income. This amount is includible in the recipient's gross income under section 67(c) and must also be included in box 1a. Do not include any investment expenses in box 1b.
Enter creditable foreign tax withheld and paid (within the meaning of section 901) on dividends and other distributions on stock. A RIC must report only the amount it elects to pass through to the recipient. Report this amount in U.S. dollars.
Enter the name of the foreign country or U.S. possession to which the withheld tax applies.
Boxes 8 and 9 apply only to corporations in partial or complete liquidation. Do not include these amounts in
box 1a or 1b.
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