Before you begin to prepare your Form 1099-DIV filing, it is important that you know what information you need. This step-by-step guide identifies 5 key topics that will help you correctly and timely file your Form 1099-DIV.
What’s New for 2018?
New Box 5 section 199A dividends must be completed to report section 199A dividends paid to the recipient. This amount is also included in Box 1a.
Determine who receives Form 1099-DIV
Forms 1099-DIV are completed for each person who has been paid dividends and other distributions on stock of $10 or more.
Gather the information to prepare Form 1099-DIV
The information needed to prepare Form 1099-DIV includes the taxpayer names, addresses, and the identification numbers for the reporting business (“payer”) and the recipient (“payee”), as well as the amounts paid to the recipient.
Verify your information
It is important to take the time to review the information being reported on your Forms 1099-DIV for accuracy before distributing and filing, including the payment amounts and taxpayer information. This will minimize the risk of incurring penalties and fines.
The most common errors returned are invalid TINs. If you don’t correct invalid TIN errors, then you may be subject to notices and/or penalties from the IRS. You can get ahead of these errors by using products like TINCorrect to verify the TIN information you have against IRS records before submitting your filing.
Distribute and file Form 1099-DIV
The IRS and recipient each require copies of the 1099-DIV form, as well as some state tax departments.
Deadlines for Form 1099-DIV
Recipient copies of Forms 1099-DIV must be distributed by January 31, 2019.
Forms 1099-DIV must be submitted to the IRS on paper by February 28, 2019, or electronically by April 1, 2019.
Please note that you must file electronically if you have over 250 Forms 1099-DIV to report for Tax Year 2018.
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BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.