File 1099-DIV Online
Avalara 1099 & W-9 supports the efficient filing of many IRS form types, including the 1099-DIV for dividend and distribution income. Get started filing your 1099-DIVs now.
What is a 1099-DIV?
Form 1099-DIV is used to report dividends and distributions to the IRS. It is issued by financial institutions, such as banks and brokerage firms, to individuals who receive dividends and distributions during the course of a tax year.
- Purpose: The 1099-DIV is for reporting dividend income and distributions.
- Who Should File: Financial institutions in The United States that pay out dividends and distributions should file Form 1099-DIV to the IRS.
- How to File: It’s possible for financial institutions to e-file their 1099-DIVs, which is often recommended over postal mail for the sake of efficiency and accuracy. Avalara 1099 & W-9 allows you to e-file form 1099-DIV with a few easy steps.
When is a 1099-DIV required?
Typically, financial institutions in the United States are required to file a 1099-DIV with the IRS for each account holder who receives dividends and distributions over the course of a tax year. A financial institution needs to file Form 1099-DIV when they distribute:
- Ordinary dividends
- Qualified dividends
- Capital gain distributions
- Non-dividend distributions
- Liquidation distributions
- More
Can I file a 1099-DIV online?
Yes, you can file a 1099-DIV with the IRS on their website or submit it via traditional postal mail. Avalara 1099 & W-9 offers easy services to e-file 1099-DIV forms directly with the IRS and automatically validate their 1099 recipients’ Taxpayer Identification Numbers (TINs) at the same time to catch errors and reduce the potential for future B-notices.
For step-by-step instructions to e-file, e-deliver, and correct erroneous information in 1099-DIV forms with Avalara 1099 & W-9, watch our video tutorial:
When is the deadline to file a 1099-DIV?
The deadline for a financial institution or broker to e-file form 1099-DIV with the IRS to report dividends and distributions for the previous year is March 31st. Financial institutions and brokers must also send a copy of the 1099-DIV to the account holder by January 31st to ensure that the account holder’s distributions are accounted for in their annual tax filings.
How do I file a 1099-DIV?
The following steps are best practices for filing a 1099-DIV with the IRS:
- Step 1: Obtain account holder information, including their TIN, when they open an account.
- Step 2: Validate that their legal name, address, and TIN are legible and accurate.
- Step 3: Obtain permission from the account holder to receive their 1099-DIV via email in January.
- Step 4: At the end of the tax year, fill out a 1099-DIV with information from the account holder’s records.
- Step 5: Electronically file the 1099-DIV with the IRS before the annual March 31st deadline.
- Step 6: E-deliver copy B of the 1099-DIV to the account holder before the annual January 31st deadline. (Use postal mail for an individual or entity who did not initially opt in to electronic delivery and make sure it is postmarked before January 31st.)
- Step 7: Retain a copy of the 1099-DIV for your business records in a safe and secure repository.
- Step 8: Investigate unique state requirements for additional 1099-DIV filings.
Note: All of these steps for 1099-DIV compliance can be automated using Avalara 1099 & W-9, including the necessary collection of account holder information at the point of account opening. This video tutorial explains how:
IRS Form 1099-DIV FAQs
These are some of the most common questions that Avalara receives about the 1099-DIV:
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What is the difference between the 1099-DIV and the 1099-INT?
Both the 1099-DIV and the 1099-INT are used to report income, but the 1099-DIV is used to report dividends and distributions, whereas the 1099-INT is used to report interest income.
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Are there situations where using postal mail to file a 1099-DIV to the IRS is not allowed?
Yes, if an institution is filing more than 10 1099s of the same type, then the IRS will not accept postal mail. The institution must electronically file their 1099s to the IRS.
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What happens if the deadline for filing a 1099-DIV falls on the weekend?
If the IRS filing deadline falls on a weekend, an institution can file on the next business day. Needless to say, it’s usually not advisable to work that close to the deadline in the first place.