Dividends earned on securities held in street name by the brokerage are reported to the Internal Revenue Service and are considered taxable income to the investor.

Question

Quizplus · Accepted Answer

Dividends earned on securities, even when held in street name by a brokerage, are reported to the IRS and are taxable income for the investor, as the investor is the beneficial owner of the income.

Dividends Earned on Securities Held in Street Name by the Brokerage