Tips for Filing 1099-DIV

You have plenty of tasks on your to-do list as a business owner. From paying employees to keeping customers happy, you will do whatever is necessary to keep things running smoothly. When it comes to taxes, though, you may be anything but an expert. Let’s say you rely on independent contractors for certain projects. If that’s the case, you must send out 1099 forms for tax-filing purposes. Be aware that such forms are only sent to sole proprietorships and partnerships. Most importantly, it’s your responsibility to do your own bookkeeping. Tax season will be here before we know it, which is why it’s imperative to get those forms straightened out now. Keep reading for 1099-DIV filing tips.

About Form 1099-DIV

Form 1099 Dividends and Distributions is used to report dividends and other distributions payments to investors. What’s a dividend, you may ask? Well, dividends reported on 1099-DIV forms can include dividends paid, capital gains, dividends, and exempt-interest dividends. Form 1099-DIV reports the total amount paid by the bank or financial institution to an investor during the course of a year. The form is also used to report tax items such as Section 1250 Gain, Section 1202 Gain, investment expenses, foreign tax paid, as well as federal tax withheld.

Keep in mind that financial institutions must file this form with the IRS for each investor to whom they have paid dividends during the year, whether electronically or on paper. The bank is also required to provide a statement to the recipient to whom the dividend is paid. In terms of logistics, 1099-DIV forms will be reported on Schedule B of your personal return. Should the form be issued to a partnership or S corporation, it will be listed separately on the Schedule K-1 and end up on your personal Schedule B.

Who Should File Form 1099-DIV?

The IRS requires most payments of dividends and distributions to be reported on 1099-DIV forms by the person or entity that makes the payments. As aforementioned, most financial institutions or government agencies making dividend payments are the ones needing this form.

When is Form 1099-DIV Filed?

An organization must file this form if they:

  • Paid dividends (including capital gain dividends and exempt-interest dividends) and other distributions on stocks of $10 or more

  • Paid at least $600 as part of a liquidation

  • Paid or withheld any foreign tax on dividends and other distributions on stock

  • Withheld any federal income tax on dividends under the backup withholding rules

Are There Penalties For Not Filing Form 1099-DIV?

If you weren’t already aware, the deadline to file 1099-DIV forms is the end of February if filing on paper. Electronic files must be submitted by the end of March. That said, the deadline to provide recipient copies is the end of January. It’s important to know that the IRS imposes heavy penalties if a business fails to file in general or fails to file correct information with these forms. For example, expect to get penalized for not providing recipient copies. Not surprisingly, the penalty increases with time. That’s why it’s a good idea to file as soon as possible.

File 1099 Forms With Ease

There’s no question that filing your 1099 forms can become a nightmare. Do you really want to spend your time manually completing forms and/or purchasing expensive software to get the job done? Our team at OnlineFileTaxes.com doesn’t think you should. Thanks to our online tax reporting service, you can e-file your 1099 forms online in minutes. Whether you have one or hundreds or 1099 forms, we invite you to check out our services. Note that standard pricing includes printing, mailing, and filing services.

Why Use OnlineFileTaxes.Com?

Are you tired of managing those 1099 tax forms the old-fashioned way? Has it gotten to the point where tax forms get in the way of running your business? Then you’ve got to check out what our e-file provider has to offer. Rest assured that our service is simple, cost-effective, efficient, and secure. As long as you get your data in by the end of March, then it will be filed on time. OnlineFileTaxes.com is also an IRS-approved federal e-filing provider.

Here are just some of the benefits of working with OnlineFileTaxes.com:

  • Allows you to process any number of forms seamlessly and economically

  • Eliminates the need to invest in any software

  • Eliminates administrative and IT costs associated with year-end 1099 processing

  • Prints, mails, and electronically files with the IRS once you fill out the required forms

  • Supports uploading Excel files instead of manually filling out forms

With OnlineFileTaxes.com, forms cost as low as $1.25. We are proud to offer the most cost-efficient way to e-file 1099 forms. Don’t let 1099 preparation get in the way of running your business any longer. Sign up for free at OnlineFileTaxes.com.

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