When Cash Dividends on Stock Are Paid,but the Stockholder Has

When cash dividends on stock are paid,but the stockholder has these dividends automatically reinvested,what are the federal income tax implications?

A) Taxes must be paid in the year the dividends are paid at ordinary income tax rates.
B) Taxes must be paid in the year the dividends are paid at long-term capital gains rates.
C) Taxes must be paid, but not until the stockholder sells the stock that was purchased through the dividend reinvestment plan.
D) Taxes do not have to be paid on these dividends-ever.
E) Either a or c-it is up to the investor to make the choice.