File Form 1099-DIV, Dividends and Distributions, 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, 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.
Box 1a. Total Ordinary Dividends
Enter dividends, including dividends from money market 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 ofinvestment expenses that you report in box 5.
Box 1b. Qualified Dividends
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 atwww.irs.gov/irb/2003-50_IRB/ar12.html and Notice 2004-71, 2004-45 I.R.B.793, available at www.irs.gov/irb/2004-45_IRB/ar09.html contain the rules for reporting the dividend for taxyears 2003 and 2004. These rules are extended for 2005 andsubsequent tax years by Notice 2006-3, 2006-3 I.R.B. 306, available at www.irs.gov/irb/2006-03_IRB/ar11.html.
Box 2a. Total Capital Gain Distr.
Enter total capital gain distributions (long-term). Include all amounts shown in boxes 2b, 2c, and 2d.
Box 2b. Unrecap. Sec. 1250 Gain
Enter any amount included in box 2a that is an unrecaptured section 1250 gain from certain depreciable real property.
Box 2c. Section 1202 Gain
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 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
Enter nondividend distributions, if determinable.
Box 4. Federal Income Tax Withheld
Enter backup withholding. For example, if a recipient does not furnish its TIN to you in the manner required, you must backup withhold at a 28% rate 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.
Box 5. 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 gross income under section 67(c) and must also be included in box 1a. Do not include any investment expenses in box 1b.
Box 6. 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.
Box 7. 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 6
RICs—special reporting instructions. Do not complete box 7. Under Regulations section 1.853-4,country-by-country reporting to shareholders for the amount reported in box 6 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 8. Cash Liquidation Distributions
Enter cash distributed as part of a liquidation.
Box 9. Noncash Liquidation Distributions
Enter noncash distributions made as part of a liquidation.Show the fair market value as of the date of distribution.
Box 10. Exempt-Interest Dividends
Enter exempt-interest dividends from a mutual fund or other RIC. Include specified private activity bond interest dividends in box 11 and in the total for box 10. See the instructions for box 11 below.
Box 11. Specified Private Activity Bond Interest Dividends
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.
Boxes 12–14. 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 12, enter the abbreviated name of the state. In box 13, enter the payer's state identification number. The state number is the payer'sidentification number assigned by the individual state. Enter in box 14 the state income tax withheld on this payment.
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.
