Instructions For Form 1099-Div - 2017 (Page 2 of 4) in pdf

Dividends that relate to payments that the recipient is

For guidance pertaining to dividends of RICs and

obligated to make with respect to short sales or positions in

REITs, see Notice 2004-39, 2004-22 I.R.B. 982,

TIP

substantially similar or related property.

(capital gain dividends of RICs and REITs) available

Dividends paid by a regulated investment company (RIC)

at , modified by

that are not treated as qualified dividend income under

Notice 2015-41, 2015-24 I.R.B. 1058, (capital gain

section 854.

distributions of RICs) available at

Dividends paid by a real estate investment trust (REIT)

2015-24_IRB/ar07.html, and Rev. Rul. 2005-31, 2005-21

that are not treated as qualified dividend income under

I.R.B. 1084, (limitations applicable to dividends received from

section 857(c).

RICs) available at 2005-21_IRB/ar07.html.

Deductible dividends paid on employer securities. See

Section 404(k) Dividends on this page.

Dividend payment delayed until January. If a RIC or a

Qualified foreign corporation. A foreign corporation is a

REIT declares a dividend in October, November, or

qualified foreign corporation if it is:

December payable to shareholders of record on a specified

1. Incorporated in a possession of the United States, or

date in such a month, the dividends are treated as paid by

the RIC or REIT and received by the recipients on December

2. Eligible for benefits of a comprehensive income tax

31 of such year as long as the dividends are actually paid by

treaty with the United States that the Treasury Department

the RIC or REIT during January of the following year. Report

determines is satisfactory for this purpose and that includes

the dividends on Form 1099-DIV for the year preceding the

an exchange of information program.

January they are actually paid. See sections 852(b)(7) and

For a list of income tax treaties of the United States

857(b)(9) for RICs and REITs, respectively.

that (a) are comprehensive, (b) include an

TIP

If a dividend paid in January is subject to backup

information exchange program, and (c) have been

withholding, withhold when the dividend is actually paid.

determined by the Treasury Department to be satisfactory for

Therefore, backup withhold in January, deposit the

this purpose, see Notice 2011-64, 2011-37 I.R.B. 231,

withholding when appropriate, and reflect it on Form 945,

available at 2011-37_IRB/ar07.html.

Annual Return of Withheld Federal Income Tax, for the year

withheld. However, since the dividend is reportable on Form

If the foreign corporation does not meet either (1) or (2)

1099-DIV for the prior year, the related backup withholding is

above, then it may be treated as a qualified foreign

also reportable on the prior year Form 1099-DIV.

corporation for any dividend paid by the corporation if the

stock associated with the dividend paid is readily tradable on

Qualified small business stock—RICs. Under section

an established securities market in the United States. See

1202, a 50% exclusion may be allowed on the gain from the

Notice 2003-71, 2003-43 I.R.B. 922, available at

sale or exchange of qualified small business stock issued

2003-43_IRB/ar10.html, for more information

after August 10, 1993, and held for more than 5 years. A 60%

on when a stock may be considered to be readily tradable.

exclusion may be allowed if the stock is empowerment zone

For additional requirements that must be met, see Notice

business stock acquired after December 21, 2000. For

2006-3, 2006-3 I.R.B. 306, available at

qualified small business stock acquired after February 17,

2006-03_IRB/ar11.html.

2009, and before September 28, 2010, the exclusion is 75%.

For qualified small business stock acquired after September

For guidance on the extent to which distributions,

27, 2010, and before January 1, 2014, the exclusion is 100%.

inclusions, and other amounts received by, or

TIP

For purposes of the 75% and 100% exclusions, the

included in the income of, individual shareholders as

acquisition date shall be the first day on which the stock was

ordinary income from foreign corporations subject to certain

held by the taxpayer determined after the application of

anti-deferral regimes may be treated as qualified dividends,

section 1223.

see Notice 2004-70, 2004-44 I.R.B. 724, available at

2004-44_IRB/ar09.html.

If any part of the capital gain distribution reported in

box 2a may qualify for this exclusion (taking into

consideration the recipient's holding period), report the gain

Section 404(k) Dividends

in box 2c, and furnish the recipient a statement that reports

Report as ordinary dividends in box 1a of Form 1099-DIV

separately for each designated section 1202 gain the:

payments of 404(k) dividends directly from the corporation to

Name of the corporation that issued the stock that was

the plan participants or their beneficiaries.

sold,

Date(s) on which the RIC acquired the stock,

Section 404(k) dividends are not subject to backup

Date sold,

withholding. Also, these dividends are not eligible for the

Recipient's part of the sales price,

reduced capital gains rates (see Exceptions under Qualified

Recipient's part of the RIC's basis in the stock, and

Dividends, earlier).

Amount of the recipient's section 1202 gain and the

RICs and REITs

exclusion percentage.

Qualified tax credit bonds. If a RIC or REIT holds any

Qualified dividends. If any part of the total ordinary

qualified tax credit bonds, any interest that the RIC or REIT

dividends reported in box 1a is qualified dividends, report the

recognizes on the bonds is included in the RIC's or REIT's

qualified dividends in box 1b.

gross income. See section 54A and Notice 2009-15, 2009-6

I.R.B. 449, available at

2009-06_IRB/

ar09.html. RICs can make an election to distribute any

credits allowed to shareholders or beneficiaries. Report tax

credit bond credits distributed by a RIC or REIT on Form

1097-BTC. See section 853A.

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Instructions for Form 1099-DIV (2017)

Instructions For Form 1099-Div - 2017 Page 2

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