Form 1099-DIV is a tax form used in the United States by banks and other financial institutions to report dividends and other distributions to taxpayers and to the IRS. It breaks down the total amount of dividends paid into categories such as qualified and ordinary dividends, and may also include foreign tax paid and federal income tax withheld.
What Is Form 1099-DIV?
Dividends are typically distributions of income that a corporation pays to its shareholders out of its profits. Form 1099-DIV reports those dividends — alongside capital gain distributions and any federal tax withheld — to the recipient and the IRS. The form is sent to individuals who receive $10 or more in dividends during the tax year and is used to complete the appropriate sections of their income tax return.
Who Is Required to File Form 1099-DIV?
Any bank, brokerage, mutual fund, REIT, corporation, or other entity (domestic or foreign) that actually pays dividend-type distributions during the year must prepare and file Form 1099-DIV.
File a separate form for each recipient if, in the calendar year, you:
- Paid $10 or more in ordinary or qualified dividends, capital gain distributions, or tax-exempt interest dividends;
- Distributed $600 or more as part of a corporate liquidation;
- Withheld any amount of federal income tax (backup withholding) on dividend payments, even if total dividends were under $10.
Shareholders do not file Form 1099-DIV themselves; instead, they transfer the amounts shown to their individual tax return (e.g., Schedule B or D). The responsibility for completing, furnishing, filing, and retaining a copy rests solely with the paying entity.
Filing Deadlines
| Action | Deadline |
|---|---|
| Furnish Copy B to recipient | Monday, February 2nd, 2026 |
| File Copy A with IRS — paper | Monday, March 2nd, 2026 |
| File Copy A with IRS — electronic | Tuesday, March 31st, 2026 |
E-filing through BoomTax offers a more streamlined process and gives you the extended IRS deadline. The IRS requires e-filing when you submit 10 or more aggregate information returns of any type.
State Reporting Requirements
Although Form 1099-DIV is a federal information return, most states rely on it to administer their own income-tax laws. Each state sets its own rules for when, how, and to whom the form must be submitted.
- Separate state filing vs. CF/SF reliance. States like CA, DC, NJ, NY, and PA require you to file 1099-DIV directly with the state. Many other states accept data forwarded by the IRS through the Combined Federal/State Filing (CF/SF) Program. Always confirm whether a state participates in CF/SF and still requires its own copy.
- State filing deadlines. State agency deadlines can range from January 31 to March 31; several states match the IRS electronic due date, while others set an earlier date in February.
- State income-tax withholding. Roughly a dozen states require backup withholding on certain dividend payments. Withheld state tax is reported in Box 14 and remitted on the state's deposit schedule.
- Electronic vs. paper thresholds. Many states mandate e-filing when you issue as few as 10–25 combined 1099 forms. Some abolish paper filing entirely.
- Penalties. States generally impose monetary penalties that mirror or exceed federal amounts for late, missing, or incorrect forms.
Verify the current-year requirements for every state in which you pay dividends — relying on federal rules alone may leave you exposed to late-filing assessments and withholding liabilities.
Special Circumstances
- Threshold for reporting. Dividends of $10 or more must be reported on Form 1099-DIV.
- Multiple accounts. If a recipient has multiple accounts, report dividends per account carefully.
- Backup withholding. If a payee fails to provide a valid TIN, the payer must withhold 24% federal income tax and report it on the form.
- State reporting. Confirm state-specific rules in addition to federal requirements.
- Recordkeeping. Keep copies of filed 1099-DIV forms for at least three years.
- Foreign accounts. Special rules apply for foreign investors and U.S. citizens receiving foreign-source dividends.
Penalties for Late or Incorrect Filing
For tax year 2025, the IRS imposes the following information return penalties on late or incorrect 1099-DIV filings:
- $60 per form if filed correctly within 30 days of the due date (maximum $683,000).
- $130 per form if filed more than 30 days late but by August 1 (maximum $2,049,000).
- $340 per form if filed after August 1 or not filed at all (maximum $4,098,500).
- $680 per form for intentional disregard (no maximum).
E-file Form 1099-DIV with BoomTax
Banks, brokerages, and corporations that pay dividends need a reliable way to issue accurate 1099-DIV statements to investors and transmit copies to the IRS on time. BoomTax handles the entire workflow:
- Import shareholder and dividend data via CSV, spreadsheet, or direct entry.
- Validate before filing with built-in error checks and TIN verification.
- E-file with the IRS through the IRIS system — no TCC application required.
- Deliver recipient copies by print-and-mail or secure electronic delivery.
Don't risk penalties from late or incorrect filings — let BoomTax handle Form 1099-DIV accurately and on time.
