Form 1099-DIV--Dividends and Distributions

2019

Department of the Treasury
Internal Revenue Service

Instructions for Form
1099-DIV
Dividends and Distributions
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to
Form 1099-DIV and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1099DIV.

Dividends

What’s New
Empowerment zone business stock. An increased
exclusion percentage does not apply to gains after 2018. See
Qualified small business stock RICs, under RICs and REITs,
for more information.

Reminders

In addition to these specific instructions, you also should use
the 2019 General Instructions for Certain Information
Returns. Those general instructions include information
about the following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• The definitions of terms applicable for chapter 4 purposes
that are referenced in these instructions.
• Other general topics.
You can get the general instructions from General
Instructions for Certain Information Returns at IRS.gov/
1099GeneralInstructions or go to IRS.gov/Form1099DIV.
Online fillable Copies 1, B, 2, and C. To ease statement
furnishing requirements, Copies 1, B, 2, and C have been
made fillable online in a PDF format, available at IRS.gov/
Form1099DIV. You can complete these copies online for
furnishing statements to recipients and for retaining in your
own files.
Box 5 section 199A dividends. Box 5, section 199A
dividends, must be completed to report section 199A
dividends paid to the recipient. The amount paid also is
included in box 1a.

Specific Instructions

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.

Exceptions

You are not required to report on Form 1099-DIV the
following.
1. 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.
2. 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 2019 Instructions for Form
1099-MISC.
Substitute payments in lieu of dividends may be

TIP reported on a composite statement to the recipient
with Form 1099-DIV. See Pub. 1179.

3. 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.
Certain distributions commonly referred to as
“dividends” are actually interest and are to be
CAUTION 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.

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Qualified Dividends

Except as provided below, qualified dividends are dividends
paid during the tax year from domestic corporations and
qualified foreign corporations.

File Form 1099-DIV for each person:
• 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,
Oct 29, 2018

• 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.

Exceptions. The following dividends are not qualified
dividends.
• 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

Cat. No. 27978B

For guidance on the extent to which distributions,

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 (RIC)
that are not treated as qualified dividend income under
section 854.
• Dividends paid by a real estate investment trust (REIT)
that are not treated as qualified dividend income under
section 857(c).
• Deductible dividends paid on employer securities. See
Section 404(k) Dividends, later.
Qualified foreign corporation. A foreign corporation is a
qualified foreign corporation if it is:
1. Incorporated in a possession of the United States, or
2. 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 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
IRS.gov/irb/2004-44_IRB#NOT-2004-70.

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
Dividends, earlier).

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.
For guidance pertaining to dividends of RICs and

TIP REITs, see Notice 2004-39, 2004-22 I.R.B. 982

(capital gain dividends of RICs and REITs), available
at IRS.gov/node/48546#NOT-2004-39, modified by Notice
2015-41, 2015-24 I.R.B. 1058 (capital gain distributions of
RICs), available at IRS.gov/irb/2015-24_IRB#NOT-2015-41,
and Rev. Rul. 2005-31, 2005-21 I.R.B. 1084 (limitations
applicable to dividends received from RICs), available at
IRS.gov/irb/2005-21_IRB#RR-2005-31.
Dividend payment delayed until January. If a RIC or a
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
also is reportable on the prior year Form 1099-DIV.

For a list of income tax treaties of the United States

TIP 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 IRS.gov/irb/2011-37_IRB#NOT-2011-64.
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 IRS.gov/irb/
2003-43_IRB#NOT-2003-71, 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 IRS.gov/irb/
2006-03_IRB#NOT-2006-3.
A foreign corporation will not be considered a qualified
foreign corporation if:
1. The foreign corporation is a passive foreign investment
company (as defined in section 1297) for the taxable year in
which the dividend was paid or the prior year, or
2. The foreign corporation first became a surrogate
foreign corporation (as defined in section 7874(a)(2)(B)) after
December 22, 2017, but is not treated as a domestic
corporation under section 7874(b).

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, but not on
gain attributable to periods after December 31, 2018. 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.
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Instructions for Form 1099-DIV (2019)

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
sold,
• Date(s) on which the RIC acquired the stock,
• Date sold,
• 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
exclusion percentage.

Truncating recipient’s TIN on payee statements.
Pursuant to Regulations section 301.6109-4, all filers of this
form may truncate a recipient’s TIN (social security number
(SSN), individual taxpayer identification number (ITIN),
adoption taxpayer identification number (ATIN), or employer
identification number (EIN)) on payee statements. Truncation
is not allowed on any documents the filer files with the IRS. A
payer's TIN may not be truncated on any form. See part J in
the 2019 General Instructions for Certain Information
Returns.

FATCA Filing Requirement Checkbox

Check the box if you are a U.S. payer that is reporting on
Form(s) 1099 (including reporting distributions in boxes 1
through 3 and 9 through 12 on this Form 1099-DIV) as part of
satisfying your requirement to report with respect to a U.S.
account for chapter 4 purposes as described in Regulations
section 1.1471-4(d)(2)(iii)(A). In addition, check the box if you
are an FFI reporting payments to a U.S. account pursuant to
an election described in Regulations section 1.1471-4(d)(5)
(i)(A).

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 IRS.gov/irb/
2009-06_IRB#NOT-2009-15. 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 IRS.gov/irb/
2010-15_IRB#NOT-2010-28.

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 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 2019 General Instructions for
Certain Information Returns for more information.

Restricted Stock

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.

For information on the TIN Matching System offered

TIP by the IRS, see Items You Should Note in the 2019

General Instructions for Certain Information Returns.

Account Number

The account number is required if you have multiple
accounts for a recipient for whom you are filing more than
one Form 1099-DIV. The account number also is required if
you check the “FATCA filing requirement” box. See FATCA
Filing Requirement Checkbox, earlier. Additionally, the IRS
encourages you to designate an account number for all
Forms 1099-DIV that you file. See part L in the 2019 General
Instructions for Certain Information Returns.

Due date exception and other requirements for furnishing 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 2019 is due on
or before March 15, 2020. 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 2019 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.

Statements to Recipients

An S corporation reports as dividends on Form
1099-DIV only distributions made during 2019 out of
CAUTION accumulated earnings and profits. See section 1368
for more information.

If you are required to file Form 1099-DIV, you must provide a
statement to the recipient. For information about the
requirement to furnish statements to recipients, see part M in
the 2019 General Instructions for Certain Information
Returns.

Instructions for Form 1099-DIV (2019)

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Box 1b. Qualified Dividends

gross income under section 67(c) and also must be included
in box 1a. Do not include any investment expenses in box 1b.

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.

Box 7. 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.

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
IRS.gov/irb/2003-50_IRB#NOT-2003-79, and Notice
2004-71, 2004-45 I.R.B. 793, available at IRS.gov/irb/
2004-45_IRB#NOT-2004-71, 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 IRS.gov/irb/
2006-03_IRB#NOT-2006-3.

Box 8. 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 7.
RICs—Special reporting instructions. Do not complete
box 8. Under Regulations section 1.853-4,
country-by-country reporting to shareholders for the amount
reported in box 7 is not required. The requirement to file a
separate statement to the IRS 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 and 1099.

Box 2a. Total Capital Gain Distr.

Enter total capital gain distributions (long-term). Include all
amounts shown in boxes 2b, 2c, and 2d.
For more information about reporting amounts in
TIP boxes 2b through 2d, see section 1(h).

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CAUTION

Box 2b. Unrecap. Sec. 1250 Gain

Boxes 9 and 10 apply only to corporations in partial
or complete liquidation. Do not include these
amounts in box 1a or 1b.

Box 9. Cash Liquidation Distributions

Enter any amount included in box 2a that is an unrecaptured
section 1250 gain from certain depreciable real property.

Enter cash distributed as part of a liquidation.

Box 10. Noncash Liquidation Distributions

Box 2c. Section 1202 Gain

Enter noncash distributions made as part of a liquidation.
Show the fair market value as of the date of distribution.

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 11. Exempt-Interest Dividends

Enter exempt-interest dividends from a mutual fund or other
RIC. Include specified private activity bond interest dividends
in box 12 and in the total for box 11. See the instructions for
box 12 below.

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

Box 12. Specified Private Activity Bond Interest
Dividends

Enter nondividend distributions, if determinable.

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.

File Form 5452 if you are a corporation and paid

TIP nondividend distributions to shareholders.

Box 4. Federal Income Tax Withheld

Enter backup withholding. Recipients who have not furnished
their TIN to you in the manner required are subject to backup
withholding on certain dividend payments reported on this
form. Use Form W-9 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.

Boxes 13–15. 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 13, enter the abbreviated
name of the state. In box 14, enter the payer's state
identification number. The state number is the payer's
identification number assigned by the individual state. Enter
in box 15 the state income tax withheld on this payment.

For more information on backup withholding, including the
applicable rate, see part N in the 2019 General Instructions
for Certain Information Returns.

Box 5. Section 199A Dividends

Enter the section 199A dividends paid to the recipient. This
amount is included in the amount reported in box 1a.

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.

Box 6. 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
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Instructions for Form 1099-DIV (2019)