AICPA flags compliance with new dividend tax rate as biggest challenge for taxpayers and practitioners this tax season.

• Position: Tax info

Complying with the new 15% dividend tax rate was the biggest challenge for taxpayers and practitioners this tax filing season, the AICPA said in testimony before Congress in late Mar. The Institute said brokerage firms and mutual funds were having "major difficulties" determining which dividends received by a taxpayer qualify for the 15% rate. Consequently, large numbers of erroneous Forms 1099-DIV, used to report dividend income, were being mailed to taxpayers.

Aside from the Form 1099-DIV problem, Robert Zarzar, chair of the AICPA's Tax Executive Committee, said the tax filing...