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General Instructions for Certain Information Returns - Introductory Material

Table of Contents

What's New

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 and under Interest to holders of tax credit bonds, text 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 and 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.

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.

Instructions for Forms 1099-R and 5498.

What's New for Form 1099-R.

  • 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.

What's New for Form 5498.

  • 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.

Items You Should Note

Photographs of Missing Children

The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST(1-800-843-5678) if you recognize a child.

Available Products

In addition to these general instructions, which contain general information concerning Forms 1098, 1099, 3921, 3922, 5498, and W-2G, we provide specific form instructions as separate products. Get the instructions you need for completing a specific form from the following list of separate instructions.

  • Instructions for Forms W-2G and 5754

  • Instructions for Form 1097-BTC

  • Instructions for Form 1098

  • Instructions for Form 1098-C

  • Instructions for Forms 1098-E and 1098-T

  • Instructions for Forms 1099-A and 1099-C

  • Instructions for Form 1099-B

  • Instructions for Form 1099-CAP

  • Instructions for Form 1099-DIV

  • Instructions for Form 1099-G

  • Instructions for Form 1099-H

  • Instructions for Forms 1099-INT and 1099-OID

  • Instructions for Form 1099-LTC

  • Instructions for Form 1099-MISC

  • Instructions for Form 1099-PATR

  • Instructions for Form 1099-Q

  • Instructions for Forms 1099-R and 5498

  • Instructions for Form 1099-S

  • Instructions for Forms 1099-SA and 5498-SA

  • Instructions for Forms 3921 and 3922

  • Instructions for Form 5498-ESA

See How To Get Forms, Publications, and Other Assistance on page 14.

Guide to Information Returns

See the chart on pages 16 and 17 for a brief summary of information return reporting rules.

Use Form 1096 To Send Paper Forms to the IRS

You must send Copies A of all paper Forms 1098, 1099, 3921, 3922, 5498, and W-2G to the IRS with Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Instructions for completing Form 1096 are contained on Form 1096. Also see part E on page 4.

Reporting Backup Withholding on Forms 1099 and W-2G

If you backup withhold on a payment, you must file the appropriate Form 1099 or Form W-2G with the IRS and furnish a statement to the recipient to report the amount of the payment and the amount withheld. This applies even though the amount of the payment may be below the normal threshold for filing Form 1099 or Form W-2G. For how to report backup withholding, see part N on page 11.

Substitute Statements to Recipients

If you are using a substitute form to furnish information statements to recipients (generally Copy B), be sure your substitute statements comply with the rules in Pub. 1179. Pub. 1179, which is revised annually, explains the requirements for format and content of substitute statements to recipients. See part M on page 9 for additional information.

All substitute statements to recipients must contain the tax year, form number, and form name prominently displayed together in one area of the statement. For example, they could be shown in the upper right part of the statement.

Taxpayer Identification Number (TIN) Matching

TIN Matching allows a payer or authorized agent who is required to file Forms 1099-B, DIV, INT, MISC, OID, and/or PATR, which report income subject to backup withholding, to match TIN and name combinations with IRS records before submitting the forms to the IRS. TIN Matching is one of the e-services products that is offered and is accessible through the IRS website. For program guidelines, see Pub. 2108-A, On-Line Taxpayer Identification (TIN) Matching Program, or go to www.irs.gov and enter keyword “TIN matching” in the upper right corner. It is anticipated that payers who validate the TIN and name combinations before filing information returns will receive fewer backup withholding (CP2100) “B” notices and penalty notices. E-services technical support is available by calling 1-866-255-0654.

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