If Interactive Brokers lends out your stock or securities, you do not receive dividends (or interest), but payments in lieu of dividends (or interest).  For example, IBKR “loans” stock for use in a short sale transaction to another account and receives substitute dividend payments on your behalf paid while the short position was open.  Because you are not receiving the dividend directly, you receive a payment in lieu.  Refer to Publication 550, Investment Income and Expenses, for more information.

Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.