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Instructions for Form 1099-DIV (Rev. January 2022)

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Instructions for Form 1099-DIV (Rev. January 2022) Note: The draft you are looking for begins on the next page. Caution: DRAFT—NOT FOR FILING This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information. Do not file draft forms and do not rely on draft forms, instructions, and publications for filing. We do not release draft forms until we believe we have incorporated all changes (except when explicitly stated on this coversheet). However, unexpected issues occasionally arise, or legislation is passed—in this case, we will post a new draft of the form to alert users that changes were made to the previously posted draft. Thus, there are never any changes to the last posted draft of a form and the final revision of the form. Forms and instructions generally are subject to OMB approval before they can be officially released, so we post only drafts of them until they are approved. Drafts of instructions and publications usually have some changes before their final release. Early release drafts are at IRS.gov/DraftForms and remain there after the final release is posted at IRS.gov/LatestForms. All information about all forms, instructions, and pubs is at IRS.gov/Forms. Almost every form and publication has a page on IRS.gov with a friendly shortcut. For example, the Form 1040 page is at IRS.gov/Form1040; the Pub. 501 page is at IRS.gov/Pub501; the Form W-4 page is at IRS.gov/W4; and the Schedule A (Form 1040/SR) page is at IRS.gov/ScheduleA. If typing in a link above instead of clicking on it, be sure to type the link into the address bar of your browser, not a Search box. If you wish, you can submit comments to the IRS about draft or final forms, instructions, or publications at IRS.gov/FormsComments. We cannot respond to all comments due to the high volume we receive and may not be able to consider many suggestions until the subsequent revision of the product. If you have comments on reducing paperwork and respondent (filer) burden, with respect to draft or final forms, please respond to the relevant information collection through the Federal Register process; for more info, click here. Department of the Treasury Instructions for Form Internal Revenue Service 1099-DIV (Rev. January 2022) Dividends and Distributions Section references are to the Internal Revenue Code unless otherwise noted. Specific Instructions Future Developments File Form 1099-DIV for each person: DRAFT • ASTo whom you have paid dividendsOF (including capital gain For the latest information about developments related to Form dividends and exempt-interest dividends) and other distributions 1099-DIV and its instructions, such as legislation enacted after valued at $10 or more in money or other property, they were published, go to IRS.gov/Form1099DIV. • For whom you have withheld and paid any foreign tax on dividends and other distributions on stock, What’s New • For whom you have withheld any federal income tax on New Box 11. The “FATCAJuly filing requirement” checkbox has1, dividends 2021 under the backup withholding rules, or been assigned box number 11. Subsequently, box numbers 11 • To whom you have paid $600 or more in money or other through 15 have been renumbered 12 through 16, respectively. property as part of a liquidation. Reminders Dividends In addition to these specific instructions, you should also use the If you make a payment that may be a dividend but you are current General Instructions for Certain Information Returns. unable to determine whether any part of the payment is a Those general instructions include information about the dividend by the time you must file Form 1099-DIV, the entire following topics. payment must be reported as a dividend. See the regulations • Who must file. under section 6042 for a definition of dividends. • When and where to file. • Electronic reporting. Exceptions • Corrected and void returns. You are not required to report on Form 1099-DIV the following. • Statements to recipients. 1. Taxable dividend distributions from life insurance • Taxpayer identification numbers (TINs). contracts and employee stock ownership plans. These are • Backup withholding. reported on Form 1099-R. • Penalties. • The definitions of terms applicable for the purposes of 2. Substitute payments in lieu of dividends. For payments chapter 4 of the Internal Revenue Code that are referenced in received by a broker on behalf of a customer in lieu of dividends these instructions. as a result of a loan of a customer's securities, see the • Other general topics. instructions for box 8 under Specific Instructions for Form 1099-MISC in the current Instructions for Forms 1099-MISC and You can get the general instructions from General 1099-NEC. Instructions for Certain Information Returns at IRS.gov/ Substitute payments in lieu of dividends may be 1099GeneralInstructions or go to IRS.gov/Form1099DIV. TIP reported on a composite statement to the recipient with Continuous-use form and instructions. Form 1099-DIV and Form 1099-DIV. See Pub. 1179. these instructions have been converted from an annual revision to continuous use. Both the form and instructions will be updated 3. Payments made to certain payees. These include a as needed. For the most recent version, go to IRS.gov/ corporation, a tax-exempt organization, any IRA, an Archer Form1099DIV. MSA, a health savings account (HSA), a U.S. agency, a state, the District of Columbia, a U.S. possession, or a registered Section 897 gain. RICs and REITs should report any section securities or commodities dealer. 897 gains on the sale of United States real property interests (USRPI) in box 2e and box 2f. For further information, see Certain distributions commonly referred to as Section 897 gain, later. ! “dividends” are actually interest and are to be reported CAUTION on Form 1099-INT. These include so-called dividends Electronic filing of returns. The Taxpayer First Act of 2019, on deposit or on share accounts in cooperative banks, credit enacted July 1, 2019, authorized the Department of the Treasury unions, domestic building and loan associations, domestic and and the IRS to issue regulations that reduce the 250-return federal savings and loan associations, and mutual savings requirement for 2022 information tax returns. If those regulations banks. are issued and effective for 2022 information tax returns required to be filed in 2023, we will post an article at IRS.gov explaining the change. Qualified Dividends Except as provided below, qualified dividends are dividends Online fillable Copies 1, B, 2, and C. To ease statement paid during the tax year from domestic corporations and furnishing requirements, Copies 1, B, 2, and C are fillable online qualified foreign corporations. in a PDF format, available at IRS.gov/Form1099DIV. You can complete these copies online for furnishing statements to Exceptions. The following dividends are not qualified recipients and for retaining in your own files. dividends. • Dividends the recipient received on any share of stock held for less than 61 days during the 121-day period that began 60 Jun 28, 2021 Cat. No. 27978B days before the ex-dividend date. See the instructions for For guidance on the extent to which distributions, box 1b, later. When determining the number of days the inclusions, and other amounts received by, or included recipient held the stock, you cannot count certain days during in the income of, individual shareholders as ordinary which the recipient's risk of loss was diminished. The income from foreign corporations subject to certain anti-deferral ex-dividend date is the first date following the declaration of a regimes may be treated as qualified dividends, see Notice dividend on which the purchaser of a stock is not entitled to 2004-70, 2004-44 I.R.B. 724, available at IRS.gov/irb/ receive the next dividend payment. When counting the number 2004-44_IRB#NOT-2004-70. of days the recipient held the stock, include the day the recipient disposed of the stock but not the day the recipient acquired it. Section 404(k) Dividends • Dividends attributable to periods totaling more than 366 days that the recipient received on any share of preferred stock held Report as ordinary dividends in box 1a of Form 1099-DIV for less than 91 days during the 181-day period that began 90 payments of 404(k) dividends directly from the corporation to the days before the ex-dividend date. See the instructions for plan participants or their beneficiaries. box 1b, later. WhenDRAFT determining the number of days the ASSection 404(k) dividends OF are not subject to backup recipient held the stock, you cannot count certain days during withholding. Also, these dividends are not eligible for the which the recipient's risk of loss was diminished. Preferred reduced capital gains rates (see Exceptions under Qualified dividends attributable to periods totaling less than 367 days are Dividends, earlier). subject to the 61-day holding period rule above. • Dividends that relate to payments that the recipient is RICs and REITs obligated to make with respect to short sales or positions in substantially similar or relatedJuly property. 1,Qualified 2021 dividends. If any part of the total ordinary dividends • Dividends paid by a regulated investment company (RIC) that reported in box 1a is qualified dividends, report the qualified are not treated as qualified dividend income under section 854. dividends in box 1b. • Dividends paid by a real estate investment trust (REIT) that For guidance pertaining to dividends of RICs and REITs, are not treated as qualified dividend income under section see Notice 2004-39, 2004-22 I.R.B. 982 (capital gain 857(c). dividends of RICs and REITs), available at IRS.gov/irb/ • Deductible dividends paid on employer securities.
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