Audits and tax notices

Form 1099-DIV, Dividends and Distributions

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IRS Definition

This form is used by banks and other financial institutions to report dividends and other distributions to taxpayers and to the IRS.

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If you receive $10 or more in dividends, you will receive a Form 1099-DIV. This form shows the dividends you received, any taxes withheld, non-dividend distributions, capital gains distributions, investment expenses, and certain other types of gains. You will need to report this income on your tax return.

If the FATCA box on your Form 1099-DIV is checked, you may have a filing requirement under the Foreign Account Tax Compliance Act (FATCA). Don’t ignore this box if it is checked. Contact your tax professional if you are unsure of your foreign income filing requirements.

The IRS also receives a copy of your Form 1099-DIV. If you receive a Form 1099-DIV and do not report the dividends on your tax return, the IRS will likely send you a CP2000, Underreported Income notice. This IRS notice will propose additional tax, penalties and interest on your dividends and any other unreported income. Learn how to handle an underreporter inquiry (CP2000).

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