Background
An information return is a tax document businesses are required to file to report certain business transactions to the Internal Revenue Service (IRS). The requirement to file Information Returns is mandated by the Internal Revenue Service and associated regulations.
Any person, including a corporation, partnership, individual, estate, and trust, who engages in reportable transactions during the calendar year must file information returns to report those transactions to the IRS. Persons required to file Information Returns to the IRS generally must also furnish statements to the recipients of the income. Filers of 250 or more such returns must file these returns electronically with IRS.
Key Developments & Observations
- Earlier this year, previously expanded Form 1099 rules – that were originally passed as a component of the Patient Protection and Affordable Care Act of 2010 – were repealed. If the rules had not been repealed, effective for payments made after December 31, 2011, the general requirement for information reporting by all persons engaged in a trade or business who make payments in any tax year aggregating $600 or more to a single payee would be expanded to include payments made to a corporation (but not payments to a tax exempt corporation). Additionally, the class of payments for which reporting is required would be expanded to include all amounts paid in consideration for property, and other gross proceeds for both property and services.
- Starting January 1, 2011, brokers required to file Form 1099-B regarding a covered security must also report the customer's adjusted basis in the security and whether any gain or loss with respect to the security is long term or short term.
- An entity should use Form W-9 to request the taxpayer identification number of a U.S. person (including a resident alien) who will receive an information return.
- An entity should use the appropriate Form W-8 for foreign persons who will receive an information return.
Checklists of Selected Payment Types, Information Returns, & Recent Instructions
Scroll to the appendices listed below:
- In Appendix A, a list of certain payment types and the information returns to report them
- In Appendix B, a list of information returns and what is reported on them
In Appendix C, a list of selected developments in the instructions for infomration returns.
APPENDIX A
Listed below is an alphabetical list of certain payments and the information forms to file report them. However, it is not a complete list of all payments, and the absence of a payment from the list does not indicate that the payment is not reportable. For information on a specific type of payment, please consult the separate instructions for the form(s) listed.
Type of Payment
|
Report on Form
|
Abandonment
|
1099-A
|
Accelerated death benefits
|
1099-LTC
|
Acquisition of control
|
1099-CAP
|
Advance earned income credit
|
W-2
|
Advance health insurance payments
|
1099-H
|
Agriculture payments
|
1099-G
|
Allocated tips
|
W-2
|
Alternate TAA payments
|
1099-G
|
Annuities
|
1099-R
|
Archer MSAs:
|
|
Contributions
|
5498-SA
|
Distributions
|
1099-SA
|
Attorney, fees and gross proceeds
|
1099-MISC
|
Auto reimbursements, employee
|
W-2
|
Auto reimbursements, nonemployee
|
1099-MISC
|
Awards, employee
|
W-2
|
Awards, nonemployee
|
1099-MISC
|
Barter exchange income
|
1099-B
|
Bonuses, employee
|
W-2
|
Bonuses, nonemployee
|
1099-MISC
|
Broker transactions
|
1099-B
|
Cancellation of debt
|
1099-C
|
Capital gain distributions
|
1099-DIV
|
Car expense, employee
|
W-2
|
Car expense, nonemployee
|
1099-MISC
|
Changes in capital structure
|
1099-CAP
|
Charitable gift annuities
|
1099-R
|
Commissions, employee
|
W-2
|
Commissions, nonemployee
|
1099-MISC
|
Commodities transactions
|
1099-B
|
Compensation, employee
|
W-2
|
Compensation, nonemployee
|
1099-MISC
|
Contributions of motor vehicles, boats, and airplanes
|
1098-C
|
Cost of current life insurance protection
|
1099-R
|
Coverdell ESA contributions
|
5498-ESA
|
Coverdell ESA distributions
|
1099-Q
|
Crop insurance proceeds
|
1099-MISC
|
Damages
|
1099-MISC
|
Death benefits
|
1099-R
|
Accelerated
|
1099-LTC
|
Debt cancellation
|
1099-C
|
Dependent care payments
|
W-2
|
Direct rollovers
|
1099-Q, 1099-R, 5498
|
Direct sales of consumer products for resale
|
1099-MISC
|
Directors' fees
|
1099-MISC
|
Discharge of indebtedness
|
1099-C
|
Dividends
|
1099-DIV
|
Donation of motor vehicle
|
1098-C
|
Education loan interest
|
1098-E
|
Employee business expense reimbursement
|
W-2
|
Employee compensation
|
W-2
|
Excess deferrals, excess contributions, distributions of
|
1099-R
|
Exercise of incentive stock option under section 422(b)
|
3921
|
Fees, employee
|
W-2
|
Fees, nonemployee
|
1099-MISC
|
Fishing boat crew members proceeds
|
1099-MISC
|
Fish purchases for cash
|
1099-MISC
|
Foreclosures
|
1099-A
|
Foreign persons' income
|
1042-S
|
401(k) contributions
|
W-2
|
404(k) dividend
|
1099-DIV
|
Gambling winnings
|
W-2G
|
Golden parachute, employee
|
W-2
|
Golden parachute, nonemployee
|
1099-MISC
|
Grants, taxable
|
1099-G
|
Health care services
|
1099-MISC
|
Health insurance advance payments
|
1099-H
|
Health savings accounts:
|
|
Contributions
|
5498-SA
|
Distributions
|
1099-SA
|
Income attributable to domestic production activities, deduction for
|
1099-PATR
|
Income tax refunds, state and local
|
1099-G
|
Indian gaming profits paid to tribal members
|
1099-MISC
|
Interest income
|
1099-INT
|
Tax-exempt
|
1099-INT
|
Interest, mortgage
|
1098
|
IRA contributions
|
5498
|
IRA distributions
|
1099-R
|
Life insurance contract distributions
|
1099-R, 1099-LTC
|
Liquidation, distributions in
|
1099-DIV
|
Loans, distribution from pension plan
|
1099-R
|
Long-term care benefits
|
1099-LTC
|
HSA, Archer MSA or Medicare Advantage MSAs:
|
|
Contributions
|
5498-SA
|
Distributions
|
1099-SA
|
Medical services
|
1099-MISC
|
Mileage, employee
|
W-2
|
Mileage, nonemployee
|
1099-MISC
|
Military retirement
|
1099-R
|
Mortgage insurance premiums
|
1098
|
Mortgage interest
|
1098
|
Moving expense
|
W-2
|
Nonemployee compensation
|
1099-MISC
|
Nonqualified deferred compensation:
|
|
Beneficiary
|
1099-R
|
Employee
|
W-2
|
Nonemployee
|
1099-MISC
|
Original issue discount (OID)
|
1099-OID
|
Patronage dividends
|
1099-PATR
|
Pensions
|
1099-R
|
Points
|
1098
|
Prizes, employee
|
W-2
|
Prizes, nonemployee
|
1099-MISC
|
Profit-sharing plan
|
1099-R
|
Punitive damages
|
1099-MISC
|
Qualified plan distributions
|
1099-R
|
Qualified tuition program payments
|
1099-Q
|
Real estate transactions
|
1099-S
|
Recharacterized IRA contributions
|
1099-R, 5498
|
Refund, state and local tax
|
1099-G
|
Rents
|
1099-MISC
|
Retirement
|
1099-R
|
Roth conversion IRA contributions
|
5498
|
Roth conversion IRA distributions
|
1099-R
|
Roth IRA contributions
|
5498
|
Roth IRA distributions
|
1099-R
|
Royalties
|
1099-MISC
|
Timber, pay-as-cut contract
|
1099-S
|
Sales:
|
|
Real estate
|
1099-S
|
Securities
|
1099-B
|
Section 1035 exchange
|
1099-R
|
SEP contributions
|
W-2, 5498
|
SEP distributions
|
1099-R
|
Severance pay
|
W-2
|
Sick pay
|
W-2
|
SIMPLE contributions
|
W-2, 5498
|
SIMPLE distributions
|
1099-R
|
Student loan interest
|
1098-E
|
Substitute payments in lieu of dividends or tax-exempt interest
|
1099-MISC
|
Supplemental unemployment
|
W-2
|
Tax refunds, state and local
|
1099-G
|
Tips
|
W-2
|
Transfer of stock acquired through an employee stock purchase plan under section 423(c)
|
3922
|
Tuition
|
1098-T
|
Unemployment benefits
|
1099-G
|
Vacation allowance, employee
|
W-2
|
Vacation allowance, nonemployee
|
1099-MISC
|
Wages
|
W-2
|
APPENDIX B
Listed below is aguide for information returns and what is reported on them.
Form
|
Title
|
What to Report
|
Amounts to Report
|
Due Date To IRS
|
Due DateTo Recipient (unless indicated otherwise)
|
1042-S
|
Foreign Person's U.S. Source Income Subject to Withholding
|
Income such as interest, dividends, royalties, pensions and annuities, etc., and amounts withheld under Chapter 3. Also, distributions of effectively connected income by publicly traded partnerships or nominees.
|
See form instructions
|
March 15
|
March 15
|
1098
|
Mortgage Interest Statement
|
Mortgage interest (including points) and certain mortgage insurance premiums you received in the course of your trade or business from individuals and reimbursements of overpaid interest.
|
$600 or more
|
February 28*
|
(To Payer/Borrower) January 31
|
1098-C
|
Contributions of Motor Vehicles, Boats, and Airplanes
|
Information regarding a donated motor vehicle, boat, or airplane.
|
Gross proceeds of more than $500
|
February 28*
|
(To Donor) 30 days from date of sale or contribution
|
1098-E
|
Student Loan Interest Statement
|
Student loan interest received in the course of your trade or business.
|
$600 or more
|
February 28*
|
January 31
|
1098-T
|
Tuition Statement
|
Qualified tuition and related expenses, reimbursements or refunds, and scholarships or grants (optional).
|
See instructions
|
February 28*
|
January 31
|
1099-A
|
Acquisition or Abandonment of Secured Property
|
Information about the acquisition or abandonment of property that is security for a debt for which you are the lender.
|
All amounts
|
February 28*
|
(To Borrower) January 31
|
1099-B
|
Proceeds From Broker and Barter Exchange Transactions
|
Sales or redemptions of securities, futures transactions, commodities, and barter exchange transactions.
|
All amounts
|
February 28*
|
February 15**
|
1099-C
|
Cancellation of Debt
|
Cancellation of a debt owed to a financial institution, the Federal Government, a credit union, RTC, FDIC, NCUA, a military department, the U.S. Postal Service, the Postal Rate Commission, or any organization having a significant trade or business of lending money.
|
$600 or more
|
February 28*
|
January 31
|
1099-CAP
|
Changes in Corporate Control and Capital Structure
|
Information about cash, stock, or other property from an acquisition of control or the substantial change in capital structure of a corporation.
|
Amounts of stock or property valued at $100 million or more
|
February 28*
|
(To Shareholders) January 31
|
1099-DIV
|
Dividends and Distributions
|
Distributions, such as dividends, capital gain distributions, or nontaxable distributions, that were paid on stock and liquidation distributions.
|
$10 or more, except $600 or more for liquidations
|
February 28*
|
January 31**
|
1099-G
|
Certain Government Payments
|
Unemployment compensation, state and local income tax refunds, agricultural payments, and taxable grants.
|
$10 or more for refunds and unemployment
|
February 28*
|
January 31
|
1099-H
|
Health Coverage Tax Credit (HCTC) Advance Payments
|
Health insurance premiums paid on behalf of certain individuals.
|
All amounts
|
February 28*
|
January 31
|
1099-INT
|
Interest Income
|
Interest income.
|
$10 or more ($600 or more in some cases)
|
February 28*
|
January 31**
|
1099-LTC
|
Long-Term Care and Accelerated Death Benefits
|
Payments under a long-term care insurance contract and accelerated death benefits paid under a life insurance contract or by a viatical settlement provider.
|
All amounts
|
February 28*
|
January 31
|
1099-MISC
|
Miscellaneous Income (Also, use to report direct sales of $5,000 or more of consumer goods for resale.)
|
Rent or royalty payments; prizes and awards that are not for services, such as winnings on TV or radio shows.
|
$600 or more, except $10 or more for royalties
|
February 28*
|
January 31**
|
|
|
Payments to crew members by owners or operators of fishing boats including payments of proceeds from sale of catch.
|
All amounts
|
|
|
Section 409A income from nonqualified deferred compensation plans (NQDCs).
|
All amounts
|
|
|
Payments to a physician, physicians' corporation, or other supplier of health and medical services. Issued mainly by medical assistance programs or health and accident insurance plans.
|
$600 or more
|
|
|
Payments for services performed for a trade or business by people not treated as its employees. Examples: fees to subcontractors or directors and golden parachute payments.
|
$600 or more
|
|
|
Fish purchases paid in cash for resale.
|
$600 or more
|
|
|
Crop insurance proceeds.
|
$600 or more
|
|
|
Substitute dividends and tax-exempt interest payments reportable by brokers.
|
$10 or more
|
February 15**
|
|
|
Gross proceeds paid to attorneys.
|
$600 or more
|
February 15**
|
1099-OID
|
Original Issue Discount
|
Original issue discount.
|
$10 or more
|
February 28*
|
January 31**
|
1099-PATR
|
Taxable Distributions Received From Cooperatives
|
Distributions from cooperatives passed through to their patrons including any domestic production activities deduction and certain pass-through credits.
|
$10 or more
|
February 28*
|
January 31
|
1099-Q
|
Payments From Qualified Education Programs (Under Sections 529 and 530)
|
Earnings from qualified tuition programs and Coverdell ESAs.
|
All amounts
|
February 28*
|
January 31
|
1099-R
|
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
|
Distributions from retirement or profit-sharing plans, any IRA, insurance contracts, and IRA recharacterizations.
|
$10 or more
|
February 28*
|
January 31
|
1099-S
|
Proceeds From Real Estate Transactions
|
Gross proceeds from the sale or exchange of real estate and certain royalty payments.
|
Generally, $600 or more
|
February 28*
|
February 15
|
1099-SA
|
Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
|
Distributions from an HSA, Archer MSA, or Medicare Advantage MSA.
|
All amounts
|
February 28*
|
January 31
|
3921
|
Exercise of an Incentive Stock Option Under Section 422(b)
|
Transfer of an employer's stock to an employee pursuant to the exercise of an incentive stock option under section 422(b).
|
All amounts
|
February 28*
|
January 31
|
3922
|
Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c)
|
Transfer(s) of stock acquired through an employee stock purchase plan under section 423(c)
|
All amounts
|
February 28*
|
January 31
|
5498
|
IRA Contribution Information
|
Contributions (including rollover contributions) to any individual retirement arrangement (IRA) including a SEP, SIMPLE, and Roth IRA; Roth conversions; IRA recharacterizations; and the fair market value (FMV) of the account.
|
All amounts
|
May 31
|
(To Participant) For FMV/RMD January 31; For contributions May 31
|
5498-ESA
|
Coverdell ESA Contribution Information
|
Contributions (including rollover contributions) to a Coverdell ESA.
|
All amounts
|
May 31
|
April 30
|
5498-SA
|
HSA, Archer MSA, or Medicare Advantage MSA Information
|
Contributions to an HSA (including transfers and rollovers) or Archer MSA and the FMV of an HSA, Archer MSA, or Medicare Advantage MSA.
|
All amounts
|
May 31
|
(To Participant) May 31
|
W-2G
|
Certain Gambling Winnings
|
Gambling winnings from horse racing, dog racing, jai alai, lotteries, keno, bingo, slot machines, sweepstakes, wagering pools, poker tournaments, etc.
|
Generally, $600 or more; $1,200 or more from bingo or slot machines; $1,500 or more from keno
|
February 28*
|
January 31
|
W-2
|
Wage and Tax Statement
|
Wages, tips, other compensation; social security, Medicare, withheld income taxes; and advance earned income credit (EIC) payments. Include bonuses, vacation allowances, severance pay, certain moving expense payments, some kinds of travel allowances, and third-party payments of sick pay.
|
See separate instructions
|
To SSA Last day of February*
|
To Recipient January 31
|
*The due date is March 31 if filed electronically. **The due date is March 15 for reporting by trustees and middlemen of WHFITs
|
APPENDIX C
Included below are selected developments in the instructions for information returns.
New title for the General Instructions. The title of the General Instructions has been changed to General Instructions for Certain Information Returns (Forms 1098, 1099, 3921, 3922, 5498, and W-2G).
Truncating payee identification number on paper payee statements. Notice 2009-93 allows filers of information returns in the Form 1098 series, Form 1099 series, and Form 5498 series to truncate an individual payee's social security number (SSN), IRS individual taxpayer identification number (ITIN), or IRS adoption taxpayer identification number (ATIN) on paper payee statements for tax years 2009 and 2010. For more information, see part M.
New Form 1097-BTC, Bond Tax Credit. The American Recovery and Reinvestment Act of 2009 allows regulated investment companies (RICs) to elect to distribute tax credit bond credits to shareholders. Form 1097-BTC has been created for all holders and issuers of tax credit bonds to report this information. See the separate instructions for Form 1097-BTC.
Widely held fixed investment trusts (WHFITs). Notice 2010-4 provides new guidance and limited penalty relief for transition year reporting by trustees, middlemen, and trust interest holders (TIHs) of widely held fixed investment trusts. For more information, see Widely held fixed investment trusts (WHFITs) on page 3.
Publication 1220. Information on new forms was added to Pub. 1220, which is now titled Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically.
Forms 3921 and 3922. 2010 will be the first reporting year for Forms 3921 and 3922. See the Instructions for Forms 3921 and 3922.
Instructions for Form 1098.
- A TIP has been added under Prepaid Mortgage Insurance regarding allocation of prepaid mortgage insurance premiums by payers/borrowers.
- The instructions under Box 4. Mortgage Insurance Premiums regarding reporting requirements for mortgage insurance premiums received by recipients/lenders, have been expanded.
Form 1098-C. On the back of Copy B, in the Instructions for Donor, we added a phrase advising taxpayers to attach Copy B of the form to Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return.
Form 1099-B. On the back of Copy B, in the Instructions for Recipient, we added instructions for Box 12.
Form 1099-G. Boxes 10a, 10b, and 11 have been added to allow reporting of state income tax withheld.
Instructions for Form 1099-G. Reporting instructions for Boxes 10a, 10b, and 11 have been added for those states that require state income tax withholding on unemployment compensation.
Form 1099-H. The title of Box 2 was changed to No. of mos. for which HCTC payments received.
Instructions for Form 1099-H. The description for Box 1 was changed to reflect that HCTC advance payments cannot exceed 80% of total health insurance premiums.
Form 1099-INT.
- Reporting of credits from qualified school construction bonds and Build America bonds has been added to Box 1 in the Instructions for Recipient.
- Box 10 was added to report the Committee on Uniformed Security Identification Procedures (CUSIP) number for each tax-exempt bond for which interest was reported in box 8.
Instructions for Forms 1099-INT and 1099-OID.
- We added a What's New under Interest to holders of tax credit bonds, stating that the credit allowable to holders of Build America bonds and Qualified school construction bonds is treated as interest.
- We added a What's New under Box 10, instructions for reporting the CUSIP number of the tax-exempt bond for which tax-exempt interest is reported in Box 8.
Form 1099-R.
- Reporting of tax free transfers of qualified long-term care insurance contracts was added to Box 1 in the Instructions for Recipient.
- Reporting of charges or payments made against the cash value of an annuity contract or the cash surrender value of a life insurance contract for purchasing qualified long-term care insurance was added to Box 1 in the Instructions for Recipient.
- Qualified long-term care insurance contracts were added to the list of Section 1035 exchanges for Code 6 in Box 7 in the Instructions for Recipient.
- The title for Code E in Box 7 in the Instructions for Recipient was changed to Distributions under Employee Plans Compliance Resolution System (EPCRS).
- New Code W was added to the list of codes for Box 7 in the Instructions for Recipient, for reporting charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements.
- Generally, report distributions from traditional, SEP, and SIMPLE IRAs in boxes 1 and 2a. Check the "Taxable amount not determined" box in box 2b.
- Charges or payments made against the cash value of annuity contracts or the cash surrender value of life insurance policies for the purchase of qualified long-term care insurance contracts under combined arrangements are reported in Box 1, with Distribution Code W in Box 7.
- Notice 2002-3 has been modified and superseded by Notice 2009-68, which contains two safe harbor explanations that can be provided to recipients of eligible rollover distributions from an employer plan in order to satisfy section 402(f).
- Effective January 1, 2010, eligible rollover distributions from an employer's plan paid directly to a nonspouse beneficiary are subject to mandatory 20% withholding.
Form 5498.
- The checkbox in Box 11 has been lined up to the right for the convenience of issuers of the form.
- The Box 11 description in the Instructions for Participant, has been returned to the wording found on previous versions of the form.
- Boxes 15a and 15b have been shaded out as no further catch-up contributions to IRAs due to certain employer bankruptcies are permitted in lieu of the higher contribution limit for individuals 50 and older. Also, the box descriptions in the Instructions for Participant, have been removed.
- References to Additional contribution rules for 2004 and 2005 under Special reporting for U.S. Armed Forces in designated combat zones have been removed due to expiration of this provision on May 28, 2009.
- References to catch-up contributions in Special reporting for 2009 and the reporting instructions for Boxes 15a and 15b have been removed due to expiration of this provision.
Logos, slogans, and advertising on information returns: For amounts paid after 2010, logos, slogans, and advertising will not be permitted on Forms 1096, or Copy A of Forms 1098, 1099, 5498, W-2G, 1042-S, or any payee statements. See Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S.
See the specific form instructions for more information on the changes listed above.
Reminders:
Due date for certain statements sent to recipients. The due date for furnishing statements to recipients for Forms 1099-B, 1099-S, and 1099-MISC (if amounts are reported in Boxes 8 or 14) is February 15.
Electronic Filing. E-filers are reminded that using the FIRE system requires following the specifications contained in Pub. 1220, Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. Also, the IRS does not provide a fill-in form option. See part F on page 5 for information on e-file.
Payee. Throughout these instructions the term "payee" means any recipient of Forms 1098, 1099, 3921, 3922, 5498, or W-2G including borrowers, debtors, donors, insureds, participants, policyholders, students, transferors, and winners on certain forms.
Where to file. All information returns filed on paper will be filed with only two Internal Revenue Service Centers: Austin, TX, and Kansas City, MO. See part D on page 4, and Form 1096, Annual Summary and Transmittal of U.S. Information Returns.