When Should You File IRS Form 1099-DIV?
Form 1099-DIV, Dividends and Distributions, is a yearly tax statement provided to investors by bankers and other financial institutions to report dividends and other distributions, such as capital gains and exempt-interest dividends, of over $10 to taxpayers and the IRS.
Form 1099-DIV 2016 Tax Year Filing Deadlines:
- Recipient Copy Deadline: January 31, 2017
- Paper Filing Deadline: February 28, 2017
- E-filing Deadline: March 31, 2017
How to File Your 1099-DIV Forms
IRS Form 1099-DIV can be filed one of two ways: paper filing or e-filing.
Form 1099-DIV Paper Filing
The manual method for filing 1099-DIV Forms is done by filing paper returns with the IRS through the mail or by visiting an IRS office directly. These IRS offices, many of which keep limited hours only during filing season, can be a hassle. Even after waiting to have your forms verified by an agent, you’ll also need to file a transmittal Form 1096, which is required when paper filing.
Form 1099-DIV E-filing
Form 1099-DIV can be filed online through the e-filing, or electronic filing, method. If you have more than 250 forms to file, e-filing is mandatory. Even if you only have one Form 1099-DIV, the IRS recommends e-filing with an IRS-Authorized agent like ExpressIRSForms. With ExpressIRSForms, e-filing takes just a matter of minutes and all your information is kept secure. We’ll even print and mail your payee copies to your recipients for you when you e-file your forms with us!
What Information is Required to File IRS Form 1099-DIV?
The following information is needed to e-file IRS Form 1099-DIV:
- Payer Details: Name, EIN, Address, and Contact Information
- Payee Details: Name, SSN, Address, and Contact Information
- Federal Details: Dividends Received and Federal Tax Withheld
- State Details: State Name, ID Number, and State Tax Withheld
Are There Extensions for Form 1099-DIV Filing?
If you don’t believe you’ll be able to file your 1099-DIV Forms by the deadline, you can apply for an automatic 30-day extension using Form 8809. Form 8809 can be paper filed or e-filed right from your ExpressIRSForms account in just a matter of minutes.
What Should You Do if You Need to Make Form 1099-DIV Corrections?
If Form 1099-DIV is rejected, file a new one as soon as possible with ExpressIRSForms or by paper filing. If it’s a payee information error, file a corrected form with the IRS and mail a corrected version to the payee. If it’s an error with the payer name or TIN, write a letter containing your name, address, error type, tax year, TIN, TCC, return type, payee number, filing method, and federal income tax withheld to
Internal Revenue Service,
Information Returns Branch,
230 Murall Drive,
Mail Stop 4360,
Kearneysville, WV 25430.
IRS Form 1099-DIV Filing Penalties
Failing to file a correct Form 1099-DIV by the due date without a reasonable excuse can lead to penalties. You can also incur a penalty if you:
- Fail to file machine-readable paper forms
- File on paper when you’re required to e-file
- Fail to include all information required
- Enter incorrect information
- Fail to report a Taxpayer Identification Number (TIN)
- Report an incorrect TIN
Your penalty is based on when you file the complete, corrected return.
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Form 1099-DIV-Frequently Asked Questions
1.Are there any exceptions associated with Form 1099-DIV?
There are two exceptions for Form 1099-DIV:
- Taxable dividend distributions from life insurance contracts and employee stock ownership plans (these distributions should be reported on Form 1099-R)
- Payments received by a broker resulting from a loan of a customer's securities (see instructions for box 8 of Form 1099-DIV
2. What are qualified dividends as related to Form 1099-DIV?
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, the rate is zero for individuals whose other income is taxed at the 10% or 15% rate.
3. What are Form 1099-DIV's rules regarding dividends paid in 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, the dividends are treated as paid by the RIT or REIT and received by the recipients on December 31 of that year (as long as the dividends are actually paid during January the following year). Report the dividends on Form 1099-DIV for the year preceding the January they are actually paid.
If a dividend paid in January is subject to backup withholding, withhold when the the dividend is actually paid. Therefore, backup withhold in January, deposit withholding when appropriate, and reflect it for the year withheld on Form 945, Annual Return of Withheld Federal Income Tax. 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.
See Sections 852(b)(7) and 857(b)(9) for more information for RICs and REITs, respectively.