Table of Contents

• Instructions for Forms 1099, 1098, 5498, and W-2G - Introductory Material
  • What's New for 2003
  • Items You Should Note
    • Photographs of Missing Children
    • Available Products
    • Reporting Backup Withholding on Forms 1099 and W-2G
    • Form 945. Withholding Tax Return
    • Use Form 1096 To Send Forms to the IRS
    • Substitute Statements to Recipients
    • Guide to Information Returns
    • Taxpayer Identification Number (TIN) Matching
  • Need Help?
    • Information Reporting Call Site
    • Internal Revenue Bulletin
    • Unresolved Tax Issues
    • How To Get Forms and Publications
  • Backup Withholding
  • Penalties
    • Failure To File Correct Information Returns by the Due Date (Section 6721)
    • Failure To Furnish Correct Payee Statements (Section 6722)
    • Forms 1099-MSA, 1099-Q, 5498, 5498-ESA, and 5498-MSA
    • Civil Damages for Fraudulent Filing of Information Returns
  • Magnetic Media/Electronic Reporting
  • Paper Document Reporting
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • A. Who Must File
  • B. When To File
  • C. Where To File
  • D. Filing Returns With the IRS
  • E. Shipping and Mailing
  • F. Recipient Names and Taxpayer Identification Numbers (TINs)
  • G. Filer's Name, Identification Number, and Address
  • H. Statements to Recipients (Borrowers, Debtors, Insureds, Participants, Payers/Borrowers, Policyholders, Students, Transferors, or Winners on Certain Forms)
    • Statement mailing requirements for Forms 1099-DIV, 1099-INT, 1099-OID, and 1099-PATR, and forms reporting royalties only.
    • Substitute forms.
  • I. Corrected Returns on Paper Forms
  • J. Void Returns
  • K. Other Information Returns
  • L. Payments to Corporations and Partnerships
  • M. Earnings on any IRA, Coverdell ESA, or Archer MSA
  • N. Certain Grantor Trusts
  • O. Special Rules for Reporting Payments Made Through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099
    • Presumption Rules
    • Rules for Payments Made to U.S. Nonexempt Recipients Through a QI, NQI, or FTE
    • Rules for Non-U.S. Payers
    • Rules for Reporting Payments Initially Reported on Form 1042-S
    • Definitions
  • P. Account Number Box on Forms
  • Privacy Act and Paperwork Reduction Act Notice.
• Instructions for Forms 1099, 1098, 5498, and W-2G - Additional Material
• Instructions for Forms 1099, 1098, 5498, and W-2G - Additional Material
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1098
    • Exceptions
    • Mortgage Defined
    • Who Must File
    • Nonresident Alien Interest Payer
    • Payer of Record
    • Payments by Third Party
    • Seller Payments
    • Rule of 78s Method of Accounting
    • Points
    • Prepaid Interest
    • Reimbursement of Overpaid Interest
    • Statements to Payers of Record
    • Recipient's/Lender's Name and Address Box
    • Payer's/Borrower's Name and Address Box
    • Box 1. Mortgage Interest Received From Payer(s)/Borrower(s)
    • Box 2. Points Paid on Purchase of Principal Residence
    • Box 3. Refund of Overpaid Interest
    • Box 4. Blank Box
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • What's New for 2003
  • Items To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1098-E
    • Box 1. Student Loan Interest Received by Lender
    • Box 2. Checkbox
  • Specific Instructions for Form 1098-T
    • Example.
    • Box 1. Payments Received for Qualified Tuition and Related Expenses
    • Box 2. Amounts Billed for Qualified Tuition and Related Expenses
    • Box 3. Adjustments Made for a Prior Year
    • Box 4. Scholarships or Grants
    • Box 5. Adjustments to Scholarships or Grants for a Prior Year
    • Box 6. Checkbox for Amounts for an Academic Period Beginning in January through March of 2004
    • Box 7. Reimbursements or Refunds From an Insurance Contract
    • Box 8. Check if at Least Half-Time Student
    • Box 9. Check if a Graduate Student
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • • What's New for 2003
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-A
    • Coordination With Form 1099-C
    • Property
    • Who Must File
    • Abandonment
    • Statements to Borrowers
    • Box 1. Date of Lender's Acquisition or Knowledge of Abandonment
    • Box 2. Balance of Principal Outstanding
    • Box 3. Reserved
    • Box 4. Fair Market Value (FMV) of Property
    • Box 5. Was Borrower Personally Liable for Repayment of the Debt
    • Box 6. Description of Property
  • Specific Instructions for Form 1099-C
    • Coordination With Form 1099-A
    • Who Must File
    • Debt Defined
    • When To File
    • When Is a Debt Canceled
    • Exceptions
    • Multiple Debtors
    • Recordkeeping
    • Requesting TINs
    • Statements to Debtors
    • Box 1. Date Canceled
    • Box 2. Amount of Debt Canceled
    • Box 3. Interest if Included in Box 2
    • Box 4. Reserved
    • Box 5. Debt Description
    • Box 6. Check for Bankruptcy
    • Box 7. Fair Market Value (FMV) of Property
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • What's New for 2003
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-B
    • Brokers
    • Reporting
    • Barter Exchanges
    • Brokers and Barter Exchanges
    • Regulated Futures Contracts—Brokers Only:
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • What's New for 2003
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-CAP
    • When To File
    • Who Must File
    • Acquisition of Control
    • Substantial Change in Capital Structure
    • Penalties for Failure To File
    • Statement to Shareholder
    • Name, Address, Telephone Number, and TIN
    • Check if Filed by Broker
    • 2nd TIN Not.
    • Check if Shareholder Cannot Take a Loss on Their Tax Return
    • Box 1. Date of Sale or Exchange
    • Box 2. CUSIP No.
    • Box 3. Cash Received
    • Box 4. Federal Income Tax Withheld
    • Box 5. No. of Shares Exchanged
    • Box 6. (Reserved)
    • Box 7. Class of Stock Exchanged
    • Box 8. FMV of Stock Received
    • Box 9. FMV of Other Property Received
    • Box 10. Description
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • What's New for 2003
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-DIV
    • Dividends
    • Exceptions
    • Qualified Dividends
    • Section 404(k) Dividend
    • RICs and REITs
    • Restricted Stock
    • Statements to Recipients
    • 2nd TIN Not.
    • Box 1a. Total Ordinary Dividends
    • Box 1b. Qualified Dividends
    • Box 2a. Total Capital Gain Distr.
    • Box 2b. Post-May 5 Capital Gain Distr.
    • Box 2c. Qualified 5-Year Gain
    • Box 2d. Unrecap. Sec. 1250 Gain
    • Box 2e. Section 1202 Gain
    • Box 2f. Collectibles (28%) Gain
    • Box 3. Nontaxable Distributions
    • Box 4. Federal Income Tax Withheld
    • Box 5. Investment Expenses
    • Box 6. Foreign Tax Paid
    • Box 7. Foreign Country or U.S. Possession
    • Box 8. Cash Liquidation Distr.
    • Box 9. Noncash Liquidation Distr.
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • An Item To Note
  • Specific Instructions for Form 1099-G
    • Statements to Recipients
    • Box 1. Unemployment Compensation
    • Box 2. State or Local Income Tax Refunds, Credits, or Offsets
    • Box 3. Box 2 Amount Is For Tax Year
    • Box 4. Federal Income Tax Withheld
    • Box 5. Blank Box
    • Box 6. Taxable Grants
    • Box 7. Agriculture Payments
    • Box 8. Trade or Business Income (Checkbox)
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-INT
    • Box 1. Interest Income
    • Box 2. Early Withdrawal Penalty
    • Box 3. Interest on U.S. Savings Bonds and Treas. Obligations
    • Box 4. Federal Income Tax Withheld
    • Box 5. Investment Expenses
    • Box 6. Foreign Tax Paid
    • Box 7. Foreign Country or U.S. Possession
    • Rules for REMICs, FASITs, and Issuers of CDOs
  • Specific Instructions for Form 1099-OID
    • Box 1. Original Issue Discount for 2003
    • Box 2. Other Periodic Interest
    • Box 3. Early Withdrawal Penalty
    • Box 4. Federal Income Tax Withheld
    • Box 5. Description
    • Box 6. Original Issue Discount on U.S. Treasury Obligations
    • Box 7. Investment Expenses
    • Rules for REMICs, FASITs, and Issuers of CDOs
• Instructions for Forms 1099, 1098, 5498, and W-2G - Additional Material
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-LTC
    • Long-Term Care Benefits
    • Accelerated Death Benefits
    • Who Must File
    • Reporting
    • Box 1. Gross Long-Term Care Benefits Paid
    • Box 2. Accelerated Death Benefits Paid
    • Box 3. Check if Per Diem or Reimbursed Amount
    • Box 4. Qualified Contract (Optional)
    • Box 5. Check if Chronically ill or Terminally ill (Optional)
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • What's New for 2003
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-MISC
    • Box 1. Rents
    • Box 2. Royalties
    • Box 3. Other Income
    • Box 4. Federal Income Tax Withheld
    • Box 5. Fishing Boat Proceeds
    • Box 6. Medical and Health Care Payments
    • Box 7. Nonemployee Compensation
    • Box 8. Substitute Payments in Lieu of Dividends or Interest
    • Box 9. Payer Made Direct Sales of $5,000 or More
    • Box 10. Crop Insurance Proceeds
    • Boxes 11 and 12. Reserved
    • Box 13. Excess Golden Parachute Payments
    • Box 14. Gross Proceeds Paid to an Attorney
    • Box 15. Blank Box
    • Boxes 16–18. State Information
• Instructions for Forms 1099, 1098, 5498, and W-2G - Additional Material
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-MSA
  • Specific Instructions for Form 5498-MSA
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-PATR
    • Statements to Recipients
    • 2nd TIN Not.
    • Box 1. Patronage Dividends
    • Box 2. Nonpatronage Distributions
    • Box 3. Per-Unit Retain Allocations
    • Box 4. Federal Income Tax Withheld
    • Box 5. Redemption of Nonqualified Notices and Retain Allocations
    • Pass-Through Credits
    • Box 6. (Certain Credits)
    • Box 7. Investment Credit
    • Box 8. Work Opportunity Credit
    • Box 9. Patron's AMT Adjustment
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • What's New for 2003
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-Q
    • Qualified Education Programs
    • Statements to Recipients
    • Program's Name and Employer Identification Number (EIN)
    • Recipient's Name and Social Security Number (SSN)
    • Box 1. Gross Distribution
    • Box 2. Earnings
    • Box 3. Basis
    • Box 4. Trustee-to-Trustee Transfer Checkbox
    • Box 5. Checkbox
    • Box 6. Designated Beneficiary Checkbox
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • What's New for 2003
    • Form 1099-R
    • Form 5498
    • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-R
    • IRA Distributions
    • IRA Revocation
    • Deductible Voluntary Employee Contributions (DECs)
    • Direct Rollovers
    • Explanation to Recipients Before Eligible Rollover Distributions (Section 402(f) Notice)
    • Transfers
    • Corrective Distributions
    • Excess Annual Additions Under Section 415
    • Certain Excess Amounts Under 403(b) Plans
    • Failing the ADP or ACP Test After a Total Distribution
    • Loans Treated as Distributions
    • Missing Participants
    • Corrected Form 1099-R
    • Filer
    • Beneficiaries
    • Alternate Payee Under a Qualified Domestic Relations Order (QDRO)
    • Nonresident aliens
    • Statements to Recipients
    • Box 1. Gross Distribution
    • Box 2a. Taxable Amount
    • Box 2b. Taxable Amount not Determined
    • Box 2b. Total Distribution
    • Box 3. Capital Gain (Included in Box 2a)
    • Box 4. Federal Income Tax Withheld
    • Box 5. Employee Contributions or Insurance Premiums
    • Box 6. Net Unrealized Appreciation (NUA) in Employer's Securities
    • Box 7. Distribution Code(s)
    • Box 8. Other
    • Box 9a. Your Percentage of Total Distribution
    • Box 9b. Total Employee Contributions
    • Boxes 10–15. State and Local Information
  • Specific Instructions for Form 5498
    • Alternative one.
    • Alternative two.
    • Electronic filing.
    • Reporting to the IRS.
    • Box 1. IRA Contributions (Other Than Amounts in Boxes 2–4, and 8–10)
    • Box 2. Rollover Contributions
    • Box 3. Roth IRA Conversion Amount
    • Box 4. Recharacterized Contributions
    • Box 5. Fair Market Value of Account
    • Box 6. Life Insurance Cost Included in Box 1
    • Box 7. Checkboxes
    • Box 8. SEP Contributions
    • Box 9. SIMPLE Contributions
    • Box 10. Roth IRA Contributions
    • Box 11. Check if RMD in 2004
• Instructions for Forms 1099, 1098, 5498, and W-2G - Additional Material
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 1099-S
    • Reportable Real Estate
    • Exceptions
    • Who Must File
    • Employees, Agents, and Partners
    • Foreign Transferors
    • Multiple Transferors
    • Multiple Assets Sold
    • Taxpayer Identification Numbers (TINs)
    • Separate Charge Prohibited
    • Statements to Transferors
    • Filer's Name and Address Box
    • Transferor's Name and Address Box
    • Box 1. Date of Closing
    • Box 2. Gross Proceeds
    • Box 3. Address or Legal Description (Including City, State, and ZIP Code)
    • Box 4. Check Here if the Transferor Received or Will Receive Property or Services as Part of the Consideration
    • Box 5. Buyer's Part of Real Estate Tax
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • What's New for 2003
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form 5498-ESA
    • Transfers.
    • Family member.
    • Coverdell Education Savings Account
    • Box 1. Contributions (Other Than Amounts in Box 2)
    • Box 2. Rollover Contributions
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • An Item To Note
• Instructions for Forms 1099, 1098, 5498, and W-2G - Main Contents
  • Specific Instructions for Form W-2G
    • Tax-Exempt Organizations
    • Reportable Gambling Winnings
    • Withholding
    • Form 5754
    • Statements to Winners
    • 1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later
    • 2. Sweepstakes, Wagering Pools, and Lotteries
    • 3. Bingo, Keno, and Slot Machines
  • Specific Instructions for Form 5754
    • Withholding and Forms W-2G for Multiple Winners
• Index