Many businesses are required to file IRS 1099 DIV (Dividends and Distributions) forms with the IRS. Below is a list of facts every business should know about 1099-DIV Forms.
1. Form 1099-DIV reports distributions, such as dividends, capital gain distributions, or nontaxable distributions, that were paid on stock and liquidation distributions.
2. Filers are required to send 1099-DIV forms to recipients by January 31 of the year following the tax year the form covers. For example 2011 1099-DIV forms must be sent to recipients by January 31, 2012.
3. Filers are required to send 1099-DIV forms to the Internal Revenue Service (IRS) by February 28 of the year following the tax year the form covers.
4. Who gets what 1099-DIV copy:
a. Copy A: For Payer to file with the Internal Revenue Service(IRS)
b. Copy B: For Recipient to file with income tax return
c. Copy C: For Payer to keep for their files/records or file with the State
5. 1099 DIV forms in Adobe PDF files, which can be downloaded from www.IRS.Gov can’t be used for actual reporting and they can’t be sent to recipients or filed with the Internal Revenue Service.
6. As a filer of 1099-DIV forms if you are required to file 250 or more information returns, you must file electronically. To file electronically, you must have 1099 DIV software that generates a file according to the specifications in IRS Publication 1220(Specifications for Filing Forms Electronically).
7. If you are required to file 1099 Dividends and Distributions forms and you fail to file a correct 1099 DIV form by the due date and you cannot show reasonable cause, you may be subject to a penalty:
a. $30 per 1099-DIV form if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $250,000 per year ($75,000 for small businesses).
b. $60 per 1099-DIV form if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses).
c. $100 per 1099-DIV form if you file after August 1 or you do not file required 1099-DIV forms; maximum penalty $1,500,000 per year ($500,000 for small businesses).
8. Where to file form 1099 DIV Copy A (Federal Copy):
a. If your principal business, office or agency, or legal residence in the case of an individual, is located in Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia or West Virginia then send forms to Department of the Treasury , Internal Revenue Service Center Austin, TX 73301
b. If your principal business, office or agency, or legal residence in the case of an individual, is located in Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin or Wyoming then send forms to Department of the Treasury, Internal Revenue Service Center - Kansas City, MO 64999.
Good Luck !