Form 1099-DIV, Dividends and Distributions

Form 1099-DIV, Dividends and Distributions, is a yearly tax statement provided to investors by banks and other financial institutions to report dividends and other distributions to taxpayers and to the IRS. This form includes income from dividends including capital gains dividends and exempt-interest dividends over $10. The information on Form 1099-DIV is provided both to the payee and IRS.

Form 1099- DIV Flow

Use the following Flow diagram to learn more about the Filing Process & the various due dates for each filing requirement.



Payer

Form 1099-DIV

Dividents and Distributions

Recipient Delivery(Payee)

March
2

Due Date

Federal Filing (Send to IRS)

State E-File

Due Date

Depends on each state

Paper Filing

if
>250 files

E-Filing

March
2

Due Date

March
31

Due Date

Due dates for Tax year 2014

FEB

2

Monday

due date calendar

Provide 2014 Form 1099 to all Recipients

Mar

2

Monday

due date calendar

Paper Filing Deadline to send the 2014 Form 1099

Mar

31

Tuesday

due date calendar

E-File Deadline for 2014 IRS
Form 1099

Who needs to file Form 1099-DIV?

File Form 1099-DIV, Dividends and Distributions, for each person:

  • To whom you have paid dividends (including capital zero 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 liquidation.

Where do I file Form 1099-DIV?

If you are filing 250 or more returns you are required to file electronically. The IRS encourages you to file electronically even if you are filing less than 250 returns. ExpressTaxfilings.com is the easiest - we transmit it all to the IRS for you! Or, print paper copies and mail them to the IRS and recipient. To find the mailing address and other detailed Form 1099-DIV information see http://www.irs.gov/pub/irs-pdf/i1099div_14.pdf

Steps to E-file Form 1099-DIV

  • Sign In to your account
  • Select to Start a New 1099-DIV
  • Select Payer details (Name, EIN, Address)
  • Select a Recipient (Name, SSN/EIN, Address)
  • Enter Federal Details for Dividends and Distributions Income Including Boxes 1-10 of the Form 1099-DIV
  • Enter State Information & State Taxes Witheld for each applicable state
  • Review Your Order & Select whether you would like the form mailed to the recipient.
  • Add Credit Card for the Filing Fees
  • E-File the Form 1099-DIV with the IRS

Penalties for failing to file Form 1099-DIV

If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return.

The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.

The amount of the penalty is based on when you file the correct information return. The penalty is:

  • $30 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $250,000 per year ($75,000 for small businesses*).
  • $60 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses*).
  • $100 per information return if you file after August 1 or you do not file required information returns; maximum penalty $1,500,000 per year ($500,000 for small businesses*).

*Small businesses—lower maximum penalties. You are a small business if your average annual gross receipts for the 3 most recent tax years (or for the period you were in existence, if shorter) ending before the calendar year in which the information returns were due are $5 million or less.