Yes. The dividends should be reported to you with a 1099-INT form. Reinvesting dividends is no different then if the dividends were sent to you in cash and then you used that money to buy new stock. Either way it is taxable income.
If you did not receive a 1099-INT then contact the payer of the dividends to see what happened to it and get it reissued.
**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.**
