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Step 1
Call (800) TAX-FORM or visit the IRS online form ordering website (see resources below) to obtain acceptable copies of Form 1099-DIV to send to recipients. Although Form 1099-DIV is available for viewing online, the e-version of the form is unacceptable to send to taxpayers or the Internal Revenue Service.
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Step 2
Check the "Void" or "Corrected" box at the top of the 1099 form if applicable. Enter the Payer's name, street address, city, state, ZIP code and telephone number in the first box. The Payer is the organization or entity that paid out the dividend or distribution income.
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Step 3
Enter the Payer's Federal Tax ID number and the recipient's identification number (usually a Social Security number or an EIN) in the two boxes beneath the first box. Below this, list the recipient's name, street address (including apartment number), city, state and ZIP code. If applicable, enter the account number that is associated with this dividend/distribution payment. Check the box if the payee has a second tax identification number.
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Step 4
List the total ordinary taxable short-term dividends paid to the recipient during the year in Box 1a. In Box 1b, indicate the portion of 1a that is susceptible to the 5% or 15% capital gains tax. In Box 2a, show any long-term capital gain distributions from a regulated investment company or real estate investment trust (REIT). In Box 2b, show the portion of the amount in 2a that is unrecaptured gain from depreciable real property. In Box 2c, show the portion of Box 2a that is a Section 1202 gain from small business stock subject to a 50% exclusion. In Box 2d, list any 28% rate gain from the sale or exchange of collectibles.
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Step 5
Shows the part of the dividend distribution that is nontaxable because it is a return of the recipient's cost in Box 3. Note any income tax that was withheld as a backup by you, the payer, in Box 4. If the recipient did not provide you with a Tax ID number, you are required to list a 28% withholding of the dividend or distribution income paid to the recipient. In Box 5, shows the recipient's share of any expenses of a non-publicly offered regulated investment company, usually a mutual fund.
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Step 6
Report any foreign tax paid by the payee in Box 6; list the applicable foreign entity in Box 7. In Boxes 8 and 9, show any cash and non-cash liquidation distributions.
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Step 7
File Form 1099-DIV with the IRS; also send a copy to the recipient. Check the IRS official website (see Resources below) for specific instructions as to the filing deadline for Form 1099-DIV; it changes annually.
