Federal Form 1099-Div Instructions
For the latest information about developments related to
Form 1099-DIV and its instructions, such as legislation
enacted after they were published, go to www.irs.gov/form1099div.
In addition to these specific instructions, you should also use
the 2014 General Instructions for Certain Information
Returns. Those general instructions include information
about the following topics.
- Who must file (nominee/middleman).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Other general topics.
You can get the general instructions from www.irs.gov/form1099div or by calling 1-800-TAX-FORM
File Form 1099-DIV, Dividends and Distributions, for each
- To whom you have paid dividends (including capital gain
dividends and exempt-interest dividends) and other
distributions on stock of $10 or more,
For whom you have withheld and paid any foreign tax on
dividends and other distributions on stock,
For whom you have withheld any federal income tax on
dividends under the backup withholding rules, or
To whom you have paid $600 or more as part of a
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 the regulations
under section 6042 for a definition of dividends.
You are not required to report on Form 1099-DIV the
- Taxable dividend distributions from life insurance
contracts and employee stock ownership plans. These are
reported on Form 1099-R, Distributions From Pensions,
Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.
- 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
the instructions for box 8 in the 2014 Instructions for Form
TIP. 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, and Certain Other Information Returns.
- Payments made to certain payees. These include a
corporation, tax-exempt organization, any IRA, Archer MSA,
health savings account (HSA), U.S. agency, state, the
District of Columbia, U.S. possession, or registered
securities or commodities dealer.
CAUTION. 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.
Exceptions. The following dividends are not qualified
- 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, later. 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.
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, later. 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.
- 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.
Dividends paid by a regulated investment company that
are not treated as qualified dividend income under section
Dividends paid by a real estate investment trust that are
not treated as qualified dividend income under section
Deductible dividends paid on employer securities. See
Section 404(k) Dividends, on this page.
Qualified foreign corporation. A foreign corporation is a
qualified foreign corporation if it is:
- Incorporated in a possession of the United States or
- Eligible for benefits of a comprehensive income tax
treaty with the United States that the Treasury Department
determines is satisfactory for this purpose and that includes
an exchange of information program.
TIP. For a list of income tax treaties of the United States
that (a) are comprehensive, (b) include an
information exchange program, and (c) have been
determined by the Treasury Department to be satisfactory for
this purpose, see Notice 2011-64, 2011-37 I.R.B. 231,
available at www.irs.gov/irb/2011-37_IRB/ar07.html.
If the foreign corporation does not meet either 1 or 2
above, then it may be treated as a qualified foreign
corporation for any dividend paid by the corporation if the
stock associated with the dividend paid is readily tradable on
an established securities market in the United States. See
Notice 2003-71, 2003-43 I.R.B. 922, available at
www.irs.gov/irb/2003-43_IRB/ar10.html, for more information
on when a stock may be considered to be readily tradable.
For additional requirements that must be met, see Notice
2006-3, 2006-3 I.R.B. 306, available at www.irs.gov/irb/2006-03_IRB/ar11.html.
TIP. For guidance on the extent to which distributions,
inclusions, and other amounts received by, or
included in the income of, individual shareholders as
ordinary income from foreign corporations subject to certain
anti-deferral regimes may be treated as qualified dividends,
see Notice 2004-70, 2004-44 I.R.B. 724, available at
Section 404(k) Dividends
Report as ordinary dividends in box 1a of Form 1099-DIV
payments of 404(k) dividends directly from the corporation to
the plan participants or their beneficiaries.
Section 404(k) dividends are not subject to backup
withholding. Also, these dividends are not eligible for the reduced capital gains rates (see Exceptions under Qualified
RICs and REITs
Qualified dividends. If any part of the total ordinary
dividends reported in box 1a is qualified dividends, report the
qualified dividends in box 1b.
TIP. For guidance pertaining to dividends designated by
RICs and REITs, see Notice 2004-39, 2004-22
I.R.B. 982, (capital gain dividends of RICs and
REITs) available at www.irs.gov/irb/2004-22_IRB/ar11.html
and Rev. Rul. 2005-31, 2005-21 I.R.B. 1084, (limitations
applicable to dividends received from RICs) available at
Dividend payment delayed until January. If a regulated
investment company (RIC) or a real estate investment trust
(REIT) declares a dividend in October, November, or
December payable to shareholders of record on a specified
date in such a month, the dividends are treated as paid by
the RIC or REIT and received by the recipients on December
31 of such year as long as the dividends are actually paid by
the RIC or REIT during January of the following year. Report
the dividends on Form 1099-DIV for the year preceding the
January they are actually paid. See sections 852(b)(7) and
857(b)(9) for RICs and REITs, respectively.
If a dividend paid in January is subject to backup
withholding, withhold when the dividend is actually paid.
Therefore, backup withhold in January, deposit the
withholding when appropriate, and reflect it on Form 945,
Annual Return of Withheld Federal Income Tax, for the year
withheld. However, since the dividend is reportable on Form
1099-DIV for the prior year, the related backup withholding is
also reportable on the prior year Form 1099-DIV.
Qualified small business stock - RICs. Under section
1202, a 50% exclusion may be allowed on the gain from the
sale or exchange of qualified small business stock issued
after August 10, 1993, and held for more than 5 years. A 60%
exclusion may be allowed if the stock is empowerment zone
business stock acquired after December 21, 2000. For
qualified small business stock acquired after February 17,
2009, and before September 28, 2010, the exclusion is 75%.
For qualified small business stock acquired after September
27, 2010, and before January 1, 2014, the exclusion is 100%.
For purposes of the 75% and 100% exclusions, the
acquisition date shall be the first day on which the stock was
held by the taxpayer determined after the application of
section 1223. The 75% and 100% exclusion increases do not
apply to empowerment zone stock.
If any part of the capital gain distribution reported in
box 2a may qualify for this exclusion (taking into
consideration the recipient's holding period), report the gain
in box 2c, and furnish the recipient a statement that reports
separately for each designated section 1202 gain the:
Name of the corporation that issued the stock that was
Date(s) on which the RIC acquired the stock,
Recipient's part of the sales price,
Recipient's part of the RIC's basis in the stock, and
Amount of the recipient's section 1202 gain and the
Qualified tax credit bonds. If a RIC or REIT holds any
qualified tax credit bonds, any interest that the RIC or REIT
recognizes on the bonds is included in the RIC's or REIT's
gross income. See section 54A and Notice 2009-15, 2009-6
I.R.B. 449, available at www.irs.gov/irb/2009-06_IRB/ar09.html. RICs can make an election to distribute any
credits allowed to shareholders or beneficiaries. Report tax
credit bond credits distributed by a RIC or REIT on Form
1097-BTC. See section 853A.
If a RIC or REIT distributes any credits with respect to its
stock, the RIC or REIT must report the distributed credits that
are treated as dividends on Form 1099-DIV. See Notice
2010-28 available at www.irs.gov/irb/2010-15/ar08.html.
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.
Widely Held Fixed Investment Trusts (WHFITs)
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.
Due date exception and other requirements for furnish-
ing the tax information statement to TIHs. A tax
information statement that includes the information provided
to the IRS on all Forms 1099 filed for the calendar year with
respect to the TIH's interest in the WHFIT, as well as
additional information identified in Regulations section
1.671-5(e), must be provided to the TIHs. The written tax
information statement furnished to the TIH for 2014 is due on
or before March 16, 2015. The amount of an item of trust
expense that is attributable to a TIH must be included on the
tax information statement provided to the TIH and is not
required to be included in box 5 on the Form 1099-DIV.
For more filing requirements, see the 2014 General
Instructions for Certain Information Returns.
Statements to Recipients
If you are required to file Form 1099-DIV, you must provide a
statement to the recipient.
Truncating recipient's identification number on paper
payee statements. Pursuant to proposed regulations §§
1.6042-4(b) and 301.6109-4 (REG-148873-09), all filers of
this form may truncate a recipient's identification number
(social security number (SSN), individual taxpayer
identification number (ITIN), or adoption taxpayer
identification number (ATIN)) on payee statements.
For information about the requirement to furnish
statements to recipients and truncation, see part M in the
2014 General Instructions for Certain Information Returns.
2nd TIN Not.
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-3-years rule, you are considered to have
received one notice and you are not required to send a
second "B" notice to the taxpayer on receipt of the second
notice. See part N in the 2014 General Instructions for
Certain Information Returns for more information.
TIP. For information on the TIN Matching System offered
by the IRS, see Items You Should Note in the 2014
General Instructions for Certain Information Returns.
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 2014 General Instructions for
Certain Information Returns.
Box 1a. Total Ordinary Dividends
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 paid directly from the corporation.
Include as a dividend the amount of the recipient's share of
investment expenses that you report in box 5.
CAUTION. An S corporation reports as dividends on Form
1099-DIV only distributions made during 2013 out of
accumulated earnings and profits. See section 1368
for more information.
Box 1b. Qualified Dividends
Enter the portion of the dividends in box 1a that qualify for the
reduced 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
and the Caution, earlier.
You must report a dividend paid by a foreign corporation
according to the guidance provided in Notice 2003-79,
2003-50 I.R.B. 1206, available at www.irs.gov/irb/2003-50_IRB/ar12.html and Notice 2004-71, 2004-45 I.R.B.
793, available at www.irs.gov/irb/2004-45_IRB/ar09.html,
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, 2006-3 I.R.B. 306,
available at www.irs.gov/irb/2006-03_IRB/ar11.html.
Box 2a. Total Capital Gain Distr.
Enter total capital gain distributions (long-term). Include all
amounts shown in boxes 2b, 2c, and 2d.
TIP. For more information about reporting amounts in
boxes 2b through 2d see section 1(h).
Box 2b. Unrecap. Sec. 1250 Gain
Enter any amount included in box 2a that is an unrecaptured
section 1250 gain from certain depreciable real property.
Box 2c. Section 1202 Gain
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, earlier.
Box 2d. Collectibles (28%) Gain
Enter any amount included in box 2a that is a 28% rate gain
from sales or exchanges of collectibles.
Box 3. Nondividend Distributions
Enter nondividend distributions, if determinable.
TIP. File Form 5452, Corporate Report of Nondividend
Distributions, if you are a corporation and paid
nondividend distributions to shareholders.
Box 4. Federal Income Tax Withheld
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.
Box 5. Investment Expenses
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.
Box 6. Foreign Tax Paid
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. Report this amount in U.S. dollars.
Box 7. Foreign Country or U.S. Possession
Enter the name of the foreign country or U.S. possession for
which the foreign tax was paid and reported in box 6.
RICs - special reporting instructions. Do not complete
box 7. Under Regulations section 1.853-4,
country-by-country reporting to shareholders for the amount
reported in box 6 is not required. The requirement to file a
separate statement to the Internal Revenue Service has been
modified to require filing a statement that elects the
application of section 853 for the tax year with the return for
the tax year. See Regulations section 1.853-4 for more
information. Do not send the statement with the Forms 1096
CAUTION. Boxes 8 and 9 apply only to corporations in partial or
complete liquidation. Do not include these amounts
in box 1a or 1b.
Box 8. Cash Liquidation Distr.
Enter cash distributed as part of a liquidation.
Box 9. Noncash Liquidation Distr.
Enter noncash distributions made as part of a liquidation.
Show the fair market value as of the date of distribution.
Box 10. Exempt-Interest Dividends
Enter exempt-interest dividends from a mutual fund or other
regulated investment company (RIC). Include specified
private activity bond interest dividends in box 11 and in the
total for box 10. See the instructions for box 11 below.
Box 11. Specified Private Activity Bond Interest
Enter exempt-interest dividends paid by a RIC on specified
private activity bonds to the extent that the dividends are
attributable to interest on the bonds received by the RIC
minus an allocable share of the expenses. Generally,
"specified private activity bond" means any private activity
bond defined in section 141 and issued after August 7, 1986.
See section 57(a)(5) for more details.
Boxes 12-14. State Information
These boxes, and Copies 1 and 2, are provided for your
convenience only and need not be completed for the IRS. If
you withheld state income taxes on this payment, use the
state information boxes to report payments for up to two
states. Keep the information for each state separated by the
dashed line in each box. In box 12, enter the abbreviated
name of the state. In box 13, enter payer's state identification
number. The state number is the payer's identification
number assigned by the individual state. Enter in box 14 the
state income tax withheld on this payment.
If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information to
the state tax department. Give Copy 2 to the recipient for use
in filing the recipient's state income tax return.