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What are Form 1099-INT, 1099-DIV & 1099-OID? 

Today, we conclude our dive into the many Forms 1099. To wrap up, we have a triple bill: we will be tackling Forms 1099-INT (Rev. January 2024), Interest Income, 1099-DIV (Rev. January 2024), Dividends and Distributions, and 1099-OID (Rev. January 2024), Original Issue Discount.  

If you haven’t already, make sure to read our other posts in this series:  

What you need to know about Form 1099-MISC
Your Guide to Form 1099-NEC
Understanding Form 1099-K.

What are Forms 1099-INT, 1099-DIV, and 1099-OID?  

Form 1099-INT, as you may have guessed, is for interest income. Form 1099-DIV is for dividends and distributions, and lastly, Form 1099-OID is for original issue discount.  

Copy A goes to the IRS, Copy 1 is for the State Tax Department, Copy B is for the payee, and Copy 2 is to be filed with the recipient’s state income tax return, when required.  

Who has to file these forms?  

As stated in the form instructions, you should: 

  • File a 1099-INT for each person:  
    • To whom you paid interest and tax-exempt interest amounts reportable in boxes 1, 3, or 8 of at least $10 (or at least $600 of interest paid in the course of your trade or business described in the instructions for Box 1, Interest Income);   
    • For whom you withheld and paid any foreign tax on interest; or 
    • From whom you withheld (and did not refund) any federal income tax under the backup withholding rules, regardless of the amount of the payment.   

  

  • File Form 1099-OID if the following applies:  
    • If the total daily portions of the original issue discount (OID) for a holder is at least $10 and you are any of payers as defined in the 1099-OID instructions; 
    • For any person for whom you withheld and paid any foreign tax on OID; or   
    • From whom you withheld (and did not refund) any federal income tax under the backup withholding rules, even if the amount of the OID is less than $10.   

  

  • File Form 1099-DIV for each person: 
    • To whom you have paid dividends (including capital gain dividends and exempt-interest dividends) and other distributions valued at $10 or more in money or other property, 
    • 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 in money or other property as part of a liquidation.  

When is the Form 1099 due?  

All the forms in this article share the same deadline. These forms need to be sent to recipients by January 31, 2024, and the filing date to the IRS by mail is February 28, 2024. If you are electronically filing these forms, they are due to the IRS by April 1, 2024 (the last day of March falls on a weekend).  

What are the penalties for missing the deadline?  

If a business fails to file or furnish any of the above accurately by the required deadline, the penalty ranges from $60 for up to 30 days late, with a maximum penalty of $630,500 per year ($220,500 for small businesses) to $310 after August 1 or if not filed at all, with a maximum penalty of $3,783,000 per year ($1,261,000 for small businesses). For tax year 2023, with forms due in 2024, the intentional disregard penalty is at least $630 per information return! Remember, there is no maximum penalty for intentional disregard.  

The IRS also charges interest on penalties, where the interest amount varies by the penalty type and amount.  

To download and view the form and its instructions, use the links below:  

Make sure to read our other articles diving into Forms 1099! And don’t forget to sign up for our mailing list to receive a free whitepaper filled with tips to help you this reporting season. 

This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

Form 1099-K: IRS Updates to FAQ’s

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