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There are many reasons you could have received a notice regarding your Form(s) 1099-INT and/or Form 1099-DIV. The most common reasons are listed below:

• The form was never entered into the TaxACT program and the income was not reported elsewhere on the return. 
  • According to the IRS instructions, the payer is only required to send you a Form 1099-INT or Form 1099-DIV if the interest or dividend income exceeds $10; however, you are responsible for reporting ALL interest and dividend income, regardless of the amount.
• Entry error:
  • Example of a transposed number: The number that should have been entered was $21,123; instead the user entered $12,123. This would have caused a difference of $9,000 in underreported taxable income. 
  • Example of an omitted number: The number that should have been entered was $21,123; instead the user entered $2,123. This would have caused a difference of $19,000 in underreported taxable income.
• The form imported from a previous year’s tax return, but only the payer’s information was transferred. The user did not enter the information for the current tax year.
• You entered the interest and/or dividend income, but indicated the amount was federal and/or state exempt.

To review and/or modify your entries for Form 1099-INT Interest Income:

1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
2. Click Investment Income to expand the category and then click Interest Income
3. Click Add to create a new copy of the form or click Review to review a form already created 
4. Click Quick Entry or Step-by-Step Guidance 
   1. If you select Quick Entry, fill in the form to match your paper copy of Form 1099-INT and be sure to scroll down to answer questions.
   2. If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter or review the appropriate information.

To review and/or modify your entries for Form 1099-DIV Dividends and Distributions:

1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
2. Click Investment Income to expand the category and then click Dividend Income (Form 1099-DIV)
3. Click Add to create a new copy of the form or click Review to review a form already created 
4. Click Quick Entry or Step-by-Step Guidance
   1. If you select Quick Entry, fill in the form to match your paper copy of Form 1099-DIV and be sure to scroll down to answer questions.
   2. If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter or review the appropriate information.

Related Links:

• Audit Assistant IRS Notice Listing