The IRS requires rounding to the nearest dollar.
49 cents or less rounds to zero and not reported. 50 cents rounds to $1.00 and must be reported whether you have a 1099-DIV or not. Financial institution do not have to mail you a 1099-DIV under $10.00 since the postage is more than the tax, but that does not mean that you do not need to report it as if you had received a 1099-DIV. The financial institution reports all dividends electronically to the IRS regardless of the amount.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
