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Instructions for Form 1099, 1098, 5498, & W-2G |
2006 Tax Year |
General Instructions for Forms 1099, 1098, 5498, and W-2G
Main Contents
This is archived information that pertains only to the 2006 Tax Year. If you are looking for information for the current tax year, go to the Tax Prep Help Area.
Table of 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, Donors, Insureds, Participants, Payers/Borrowers, Policyholders, Students,
Transferors, or Winners on Certain 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, Archer MSA, or HSA
- N. Certain Grantor Trusts
- O. Special Rules for Reporting Payments Made Through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099
- P. Account Number Box on Forms
- Privacy Act and Paperwork Reduction Act Notice.
See the separate specific instructions for each form.
Nominee/middleman returns.
Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee
recipient. You must file a
Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable
to each. You must also
furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the Internal Revenue Service Center
for your area. On each
new Form 1099, list yourself as the “ payer” and the other owner as the “ recipient.” On Form 1096, list yourself as the “ filer.” A
husband or wife is not required to file a nominee return to show amounts owned by the other. The nominee, not the original
payer, is responsible for
filing the subsequent Forms 1099 to show the amount allocable to each owner.
Successor/predecessor reporting.
A successor business (a corporation, partnership, or sole proprietorship) and a predecessor business (a corporation,
partnership, or sole
proprietorship) may agree that the successor will assume all or some of the predecessor's information reporting responsibilities.
This would permit
the successor to file one Form 1099, 1098, 5498, or W-2G for each recipient combining the predecessor's and successor's reportable
amounts, including
any withholding. If they so agree and the successor satisfies the predecessor's obligations and the conditions described below,
the predecessor does
not have to file the specified information returns for the acquisition year. If the successor and predecessor do not agree,
or if the requirements
described are not met, the predecessor and the successor each must file Forms 1099, 1098, 5498, and W-2G for their own reportable
amounts as they
usually would. For more information and the rules that apply to filing combined Forms 1042-S, see Rev. Proc. 99-50, which
is available on page 757 of
Internal Revenue Bulletin 1999-52 at
www.irs.gov/pub/irs-irbs/irb99-52.pdf.
The combined reporting procedure is available when all the following conditions are met:
-
The successor acquires from the predecessor substantially all the property (a) used in the trade or business of the predecessor,
including
when one or more corporations are absorbed by another corporation under a merger agreement, or (b) used in a separate unit
of a trade or business of
the predecessor.
-
The predecessor is required to report amounts, including any withholding, on information returns for the year of acquisition
for the period
before the acquisition.
-
The predecessor is not required to report amounts, including withholding, on information returns for the year of acquisition
for the period
after the acquisition.
Combined reporting agreement.
The predecessor and the successor must agree on the specific forms to which the combined reporting procedure applies
and that the successor assumes
the predecessor's entire information reporting obligations for these forms. The predecessor and successor may agree to:
-
Use the combined reporting procedure for all Forms 1099, 1098, 5498, and W-2G, or
-
Limit the use of the combined reporting procedure to (a) specific forms or (b) specific reporting entities, including any
unit, branch, or
location within a particular business entity that files its own separate information returns. For example, if the predecessor's
and successor's only
compatible computer or recordkeeping systems are their dividends paid ledgers, they may agree to use the combined reporting
procedure for Forms
1099-DIV only. Similarly, if the only compatible systems are in their midwest branches, they may agree to use the combined
reporting procedure for
only the midwest branches.
Combined reporting procedure.
On each Form 1099, 1098, 5498, and W-2G filed by the successor, the successor must combine the predecessor's (before
the acquisition) and
successor's reportable amounts, including any withholding, for the acquisition year and report the aggregate. For transactional
reporting on Form
1099-B, Proceeds From Broker and Barter Exchange Transactions, the successor must report each of the predecessor's transactions
and each of its own
transactions on each Form 1099-B. The successor may include with the form sent to the recipient additional information explaining
the combined
reporting.
For purposes of the combined reporting procedure, the sharing of TINs and other information obtained under section
3406 for information reporting
and backup withholding purposes does not violate the confidentiality rules in section 3406(f).
Statement required.
The successor must file a statement with the IRS indicating the forms that are being filed on a combined basis under
Rev. Proc. 99-50. The
statement must:
-
Include the predecessor's and successor's names, addresses, telephone numbers, EINs, and the name and telephone number of
the person
responsible for preparing the statement.
-
Reflect separately the amount of federal income tax withheld by the predecessor and by the successor for each type of form
being filed on a
combined basis (for example, Form 1099-R or 1099-MISC).
-
Be sent separately from Forms 1099, 1098, 5498, and W-2G by the forms' due date to: Enterprise Computing Center—Martinsburg,
Attn:
Chief, Information Returns Branch, Mail Stop 360, 230 Murall Dr., Kearneysville, WV 25430. Do not send Form 1042-S statements
to this address.
Instead, use the address given in the Instructions for Form 1042-S; see Rev. Proc. 99-50.
Qualified settlement funds.
A qualified settlement fund must file information returns for distributions to claimants if any transferor to the
fund would have been required to
file if the transferor had made the distributions directly to the claimants.
For distributions to transferors, a fund is subject to the information reporting requirements of sections 6041 and
6041A and may be required to
file Form 1099-MISC. For payments made by the fund on behalf of a claimant or transferor, the fund is subject to these same
rules and may have to file
Form 1099-MISC for the payment to a third party. For information reporting purposes, a payment made by the fund on behalf
of a claimant or transferor
is considered a distribution to the claimant or transferor and is also subject to information reporting requirements.
The same filing requirements, exceptions, and thresholds apply to qualified settlement funds as apply to any other
payer. That is, the fund must
determine the character of the payment (for example, interest, fixed and determinable income, or gross proceeds from broker
transactions) and to whom
the payment is made (for example, corporation or individual).
For more information, see Regulations section 1.468B-2(l). In addition, see Proposed Regulations sections 1.468B-1(k)
and 1.468B-6 through 1.468B-9
that relate to escrow and other similar funds.
Payments to foreign persons.
See the Instructions for Form 1042-S, relating to U.S. source income of foreign persons, for reporting requirements
relating to payments to foreign
persons.
File Forms 1098, 1099, or W-2G on paper or magnetic media by February 28, 2006 (March 31, 2006, if filing electronically).
Also file Form 1096 with
paper forms. Brokers may file Forms 1096 and 1099-B anytime after the reporting period they elect to adopt (month, quarter,
or year), but not later
than the due date. File Form 1096 with Forms 5498, 5498-ESA, and 5498-SA by May 31, 2006.
You will meet the requirement to file if the form is properly addressed and mailed on or before the due date. If the regular
due date falls on a
Saturday, Sunday, or legal holiday, file by the next business day. A business day is any day that is not a Saturday, Sunday,
or legal holiday. See
part H on page GEN-10 about providing Forms 1098, 1099, 5498, and W-2G or statements to recipients.
Private delivery services.
You can use certain private delivery services designated by the IRS to meet the “ timely mailing as timely filing” rule for information
returns. The list includes only the following:
-
DHL Worldwide Express (DHL): DHL “Same Day” Service; DHL Next Day 10:30 AM; DHL Next Day 12:00 PM; DHL Next Day 3:00 PM; and DHL 2nd
Day Service.
-
Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Priority, and
FedEx
International First.
-
United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide
Express Plus,
and UPS Worldwide Express.
The private delivery service can tell you how to get written proof of the mailing date.
Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an
IRS P.O. box address.
Reporting period.
Forms 1098, 1099, and W-2G are used to report amounts received, paid, credited, canceled in the case of Form 1099-C,
or contributions in the case
of Form 1098-C, during the calendar year. Forms 5498, 5498-ESA, and 5498-SA are used to report amounts contributed and the
fair market value of an
account for the calendar year.
Extension.
For paper or electronic/magnetic media filing, you can get a 30-day extension of time to file by sending Form 8809,
Application for Extension of
Time To File Information Returns, to the address shown on Form 8809. No signature or explanation is required for the extension.
However, you must file
Form 8809 by the due date of the returns in order to get the 30-day extension. Under certain hardship conditions you may apply
for an additional
30-day extension. See Form 8809 for more information.
If you are requesting extensions of time to file for more than 50 payers, you must submit the extension requests magnetically
or electronically.
See Pub. 1220.
For information on extensions for providing statements to recipients, see Extension on page GEN-12.
Except for Form 1098-C, send all information returns filed on paper to the following:
If your principal business, office or agency, or legal residence in the case of an
individual, is located in |
Use the following Internal Revenue Service Center address |
▼ |
▼ |
Alabama, Arizona, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Carolina, Texas, Virginia
|
Austin, TX 73301
|
Arkansas, Connecticut, Delaware, Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania,
Rhode
Island, Vermont,
West Virginia
|
Cincinnati, OH 45999
|
Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota,
Tennessee, Wisconsin
|
Kansas City, MO 64999
|
Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Maryland, Montana, Nevada, Oregon, Utah, Washington,
Wyoming
|
Ogden, UT 84201
|
If your legal residence or principal place of business or principal office or agency is outside the United States, file with
the Internal Revenue
Service Center, Philadelphia, PA 19255.
Form 1098-C.
Send all Forms 1098-C filed on paper to the Internal Revenue Service Center, Ogden, UT 84201-0027.
Returns filed magnetically.
Send all information returns filed magnetically to Enterprise Computing Center—Martinsburg, Information Reporting
Program, 230 Murall Drive,
Kearneysville, WV 25430.
State and local tax departments.
Contact the applicable state and local tax department as necessary for reporting requirements and where to file Copy
1 (Forms 1099-MISC and
1099-R). Generally, the state or local tax department you need to contact will be located in the recipient's state of legal
residence.
D. Filing Returns With the IRS
The IRS strongly encourages the quality review of data before filing to prevent erroneous notices being mailed to payees (or
others for whom
information is being reported).
If you must file any Form 1098, 1099, 5498, or W-2G with the IRS and you are filing paper forms, you must send a Form 1096
with each type of form
as the transmittal document. You must group the forms by form number and submit each group with a separate Form 1096. For
example, if you file Forms
1098, 1099-A, and 1099-MISC, complete one Form 1096 to transmit Forms 1098, another for Forms 1099-A, and a third for Forms
1099-MISC. Specific
instructions for completing Form 1096 are included on the form. Also, see Transmitters, paying agents, etc. on page GEN-9. For information
about filing corrected returns, see Corrected Returns on Paper Forms on page GEN-12.
If you are filing on magnetic media, Form 4804, Transmittal of Information Returns Reported Magnetically, must accompany your
submissions.
Form 4804 is no longer required if you file information returns electronically. See Electronic/Magnetic Media Reporting on
page GEN-5.
For information on the preparation of transmittal documents for magnetic media and paper document reporting (Forms 4804 and
1096), see Rev. Proc.
84-24, 1984-1 C.B. 465.
Report payments on the appropriate form, as explained in the separate specific instructions.
See Pub. 1179 for specifications for private printing of substitute information returns. You may not request special consideration.
Only forms that
conform with the official form and the specifications in Pub. 1179 are acceptable for filing with the IRS.
Transmitters, paying agents, etc.
A transmitter, service bureau, paying agent, or disbursing agent (hereafter referred to as “ agent”) may sign Form 1096 or Form 4804 on behalf
of any person required to file (hereafter referred to as “ payer”) if the conditions in 1 and 2 below are met:
-
The agent has the authority to sign the form under an agency agreement (oral, written, or implied) that is valid under state
law
and
-
The agent signs the form and adds the caption “For: (Name of payer).”
Signing of the form by an authorized agent on behalf of the payer does not relieve the payer of the liability for
penalties for not filing a
correct, complete, and timely Form 1096 or Form 4804 and accompanying returns.
Forms 1098, 1099, 5498, W-2G, or acceptable substitute statements to recipients issued by a service bureau or agent
should show the same payer's
name as shown on the information returns filed with the IRS.
For information about the election to report and deposit backup withholding under the agent's TIN and how to prepare
forms if the election is made,
see Rev. Proc. 84-33, 1984-1 C.B. 502.
Keeping copies.
Generally, keep copies of information returns you filed with the IRS or have the ability to reconstruct the data for
at least 3 years, 4 years for
Form 1099-C, from the due date of the returns. Keep copies of information returns for 4 years if backup withholding was imposed.
Send the forms to the IRS in a flat mailing (not folded). If you are sending many forms, you may send them in conveniently
sized packages. On each
package, write your name, number the packages consecutively, and place Form 1096 in package number one. Postal regulations
require forms and packages
to be sent by First-Class Mail.
F. Recipient Names and Taxpayer Identification Numbers (TINs)
Recipient name.
Show the full name and address in the section provided on the information return. If payments have been made to more
than one recipient or the
account is in more than one name, show on the first name line the name of the recipient whose TIN is first shown on the return.
You may show the names
of any other individual recipients in the area below the first line, if desired. Form W-2G filers, see the Instructions for
Forms W-2G and 5754.
Sole proprietors.
You must show the individual's name on the first name line; on the second name line, you may enter the “ doing business as (DBA)” name. You may
not enter only the DBA name. For the TIN, enter either the individual's SSN or the EIN of the business (sole proprietorship).
The IRS prefers that you
enter the SSN.
Limited liability company (LLC).
Single-member LLC (including a foreign LLC with a U.S. owner) that is disregarded as an entity separate from its owner
under Regulations section
301.7701-3, enter the individual's name only on the first name line and the LLC's name on the second name line. For the TIN,
enter the individual's
SSN (or EIN, if applicable). If the LLC is a corporation, partnership, etc., enter the entity's EIN.
TINs.
TINs are used to associate and verify amounts you report to the IRS with corresponding amounts on tax returns. Therefore,
it is important that you
furnish correct names, social security numbers (SSNs), individual taxpayer identification numbers (ITINs), or employer identification
numbers (EINs)
for recipients on the forms sent to the IRS.
Requesting a recipient's TIN.
If the recipient is a U.S. person (including a U.S. resident alien), the IRS suggests that you request the recipient
complete Form W-9 (or Form
W-9S, if appropriate). See the Instructions for the Requester of Form W-9 for more information on how to request a TIN.
If the recipient is a foreign person, the IRS suggests that you request the recipient complete the appropriate Form
W-8. See the Instructions
for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY.
U.S. resident aliens who rely on a “ saving clause” of a tax treaty are to complete Form W-9, not Form W-8BEN. See Pub. 515, Withholding of Tax
on Nonresident Aliens and Foreign Entities, and Pub. 519.
You may be subject to a penalty for an incorrect or missing TIN on an information return. See Penalties on page GEN-4. You are required
to maintain the confidentiality of information obtained on a Form W-9/W-9S relating to the taxpayer's identity (including
SSNs, EINs, and ITINs), and
you may use such information only to comply with the tax laws.
If the recipient does not provide a TIN, leave the box for the recipient's TIN blank on the Form 1098, 1099, 5498, or W-2G.
See Backup
Withholding on page GEN-3. Only one recipient TIN can be entered on the form.
The TIN for individual recipients of information returns is the SSN. See the information about sole proprietors above.
For other
recipients, including corporations, partnerships, and estates, the TIN is the EIN. For LLCs, see the information on LLC above.
SSNs have nine digits separated by two hyphens (000-00-0000), and EINs have nine digits separated by only one hyphen
(00-0000000).
Electronic submission of Forms W-9.
Requesters may establish a system for payees and payees' agents to submit Forms W-9 electronically, including by fax.
A requester is anyone
required to file an information return. A payee is anyone required to provide a TIN to the requester.
Payee's agent.
A payee's agent can be an investment advisor (corporation, partnership, or individual) or an introducing broker. An
investment advisor must be
registered with the Securities Exchange Commission (SEC) under The Investment Advisers Act of 1940. The introducing broker
is a broker-dealer that is
regulated by the SEC and the National Association of Securities Dealers, Inc., and that is not a payer. Except for a broker
who acts as a payee's
agent for “ readily tradable instruments,” the advisor or broker must show in writing to the payer that the payee authorized the advisor or broker
to transmit the Form W-9 to the payer.
Generally, the electronic system must:
-
Ensure the information received is the information sent and document all occasions of user access that result in the submission.
-
Make reasonably certain the person accessing the system and submitting the form is the person identified on
Form W-9.
-
Provide the same information as the paper Form W-9.
-
Be able to supply a hard copy of the electronic Form W-9 if the IRS requests it.
-
Require as the final entry in the submission an electronic signature by the payee whose name is on Form W-9 that authenticates
and verifies
the submission. The electronic signature must be under penalties of perjury and the perjury statement must contain the language
of the paper Form
W-9.
For Forms W-9 that are not required to be signed, the electronic system need not provide for an electronic signature or a
perjury statement.
Additional requirements may apply. See Announcement 98-27 that is available on page 30 of Internal Revenue Bulletin 1998-15
at
www.irs.gov/pub/irs-irbs/irb98-15.pdf; and Announcement 2001-91,
that is available on page 221 of Internal Revenue Bulletin 2001-36 at
www.irs.gov/pub/irs-irbs/irb01-36.pdf.
Electronic submission of Forms W-9S.
See the Instructions for Forms 1098-E and 1098-T.
G. Filer's Name, Identification Number, and Address
The TIN for filers of information returns, including sole proprietors and nominees/middlemen, is the federal EIN. However,
sole proprietors and
nominees/middlemen who are not otherwise required to have an EIN should use their SSNs. A sole proprietor is not required
to have an EIN unless he or
she has a Keogh plan or must file excise or employment tax returns. See Pub. 583, Starting a Business and Keeping Records.
The filer's name and TIN should be consistent with the name and TIN used on the filer's other tax returns. The name of the
filer's paying agent or
service bureau must not be used in place of the name of the filer.
If you do not have an EIN, you may apply for one online. Go to the IRS website
www.irs.gov/businesses/small and click on the link for EINs. You may also apply by calling
1-800-829-4933 or by faxing or mailing Form SS-4 to the IRS. See Form SS-4 for more information.
Enter your street address including the room, suite, or other unit number on the forms.
H. Statements to Recipients (Borrowers, Debtors, Donors, Insureds, Participants, Payers/Borrowers, Policyholders, Students,
Transferors, or Winners on Certain Forms)
If you are required to file Forms 1099, 1098, 5498, or W-2G, you must also furnish statements to recipients containing the
information furnished to
the IRS and, in some cases, additional information. Be sure that the statements you provide to recipients are clear and legible.
Substitute statements.
If you are not using the official IRS form to furnish statements to recipients, see Pub. 1179 for specific rules about
providing “ substitute”
statements to recipients. Generally, a substitute is any statement other than Copy B (and C in some cases) of the official
form. You may develop them
yourself or buy them from a private printer. However, the substitutes must comply with the format and content requirements
specified in Pub. 1179.
Telephone number.
You are required to include the telephone number of a person to contact on the following statements to recipients:
W-2G, 1098, 1098-C, 1098-E,
1098-T, 1099-A, 1099-B, 1099-CAP, 1099-DIV, 1099-G (excluding state and local income tax refunds), 1099-H, 1099-INT, 1099-LTC,
1099-MISC (excluding
fishing boat proceeds), 1099-OID, 1099-PATR, 1099-Q, and 1099-S. You may include the telephone number in any conspicuous place
on the statements. This
number must provide direct access to an individual who can answer questions about the statement. Although not required, if
you report on other Forms
1099 and 5498, you are encouraged to furnish telephone numbers.
Rules for furnishing statements.
Different rules apply to furnishing statements to recipients depending on the type of payment (or other information)
you are reporting and the form
you are filing.
If you are reporting a payment that includes noncash property, show the fair market value of the property at the time of payment.
Although,
generally, you are not required to report payments smaller than the minimum described for a form, you may prefer, for economy
and your own
convenience, to file Copies A for all payments. The IRS encourages this.
See the heading below for the type of payment or other information you are reporting. The headings are (a) Interest,
dividend, and royalty
payments; (b) Real estate transactions; and (c) Other information.
Interest, dividend, and royalty payments.
For payments of dividends under section 6042 (reported on Form 1099-DIV) or patronage dividends under section 6044
(reported on Form 1099-PATR),
interest (including original issue discount) under section 6049 (reported on Form 1099-INT or 1099-OID), or royalties under
section 6050N (reported on
Form 1099-MISC or 1099-S), you are required to furnish an official IRS Form 1099 or an acceptable substitute Form 1099 to
a recipient either in
person, by First-Class Mail to the recipient's last known address, or electronically (see Electronic recipient statements on page GEN-11).
Statements may be sent by intraoffice mail if you use intraoffice mail to send account information and other correspondence
to the recipient.
Statement mailing requirements for Forms 1099-DIV, 1099-INT, 1099-OID, and 1099-PATR, and forms reporting royalties only.
The following statement mailing requirements apply only to Forms 1099-DIV (except for section 404(k) dividends), 1099-INT
(except for interest
reportable in the course of your trade or business under section 6041), 1099-OID, 1099-PATR, and timber royalties reported
under section 6050N (on
Form 1099-MISC or 1099-S). The mailing must contain the official IRS Form 1099 or an acceptable substitute and may also contain
the following
enclosures : (a) Form W-2, applicable Form W-8, Form W-9, or other Forms W-2G, 1098, 1099, and 5498 statements; (b) a
check from the account being reported; (c) a letter explaining why no check is enclosed; (d) a statement of the person's
account
shown on Forms 1099, 1098, or 5498; and (e) a letter explaining the tax consequences of the information shown on the recipient
statement.
A statement of the person's account (year-end account summary) that you are permitted to enclose in a statement mailing
may include information
similar to the following: (a) tax-exempt interest (including accrued OID) and the part of such interest exempt from the alternative
minimum
tax or from state or local income tax; (b) the part of a mutual fund distribution that is interest on U.S. Treasury obligations;
(c) accrued interest expense on the purchase of a debt obligation; and (d) the cost or other basis of securities and the
gain/loss on the sale of securities.
No additional enclosures, such as advertising, promotional material, or a quarterly or annual report, are permitted.
Even a sentence or two on the
year-end statement describing new services offered by the payer is not permitted. Logos are permitted on the envelope and
on any nontax enclosures.
See Notice 96-62 which is available on page 8 of Internal Revenue Bulletin 1996-49 at
www.irs.gov/pub/irs-irbs/irb96-49.pdf.
The IRS intends to amend the regulations to allow the use of certain logos and identifying slogans on substitute statements
to recipients that
are subject to the statement mailing requirements. Until the new regulations are issued, the IRS will not assess penalties
for the use of a logo
(including the name of the payer in any typeface, font, or stylized fashion and/or a symbolic icon) or slogan on a statement
to a recipient if the
logo or slogan is used by the payer in the ordinary course of its trade or business. In addition, use of the logo or slogan
must not make it less
likely that a reasonable payee will recognize the importance of the statement for tax reporting purposes.
A recipient statement may be perforated to a check or to a statement of the recipient's specific account. The check
or account statement to which
the recipient statement is perforated must contain, in bold and conspicuous type, the legend “ Important Tax Return Document Attached.”
The legend “ Important Tax Return Document Enclosed” must appear in a bold and conspicuous manner on the outside of the envelope and on each
letter explaining why no check is enclosed, or on each check or account statement that is not perforated to the recipient
statement. The legend is not
required on any tax form, tax statement, or permitted letter of tax consequences included in a statement mailing. Further,
you need not pluralize the
word “ document” in the legend simply because more than one recipient statement is enclosed.
If you provide recipient statements in a “ separate mailing” that contains only recipient statements, Forms W-8 and W-9, and a letter
explaining the tax consequences of the information shown on a recipient statement included in the envelope, you are not required
to include the legend
“ Important Tax Return Document Enclosed” on the envelope.
Substitute forms.
You may furnish to the recipient Copy B of the official IRS form, or you may use substitute Forms 1099-DIV, 1099-INT,
1099-OID, or 1099-PATR, if
they contain the same language as the official IRS forms and they comply with the rules in Pub. 1179, relating to substitute
Forms 1099. Applicable
box titles and numbers must be clearly identified, using the same wording and numbering as the official IRS form. However,
for Form 1099-INT, if your
substitute does not contain box 3, “ Interest on U.S. Savings Bonds and Treas. obligations,” you may omit “ not included in box 3” from the
box 1 title. For information on substitute Forms 1099-MISC, see Other information below. For Forms 1099-S, see Real estate
transactions below.
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.
If you are using substitutes, the IRS encourages you to use boxes so that the substitute has the appearance of a form.
The substitute form must
contain the applicable instructions as on the front and back of Copy B of the official IRS form. See Pub. 1179 for additional
requirements. Certain
“ composite” statements are permitted. See Pub. 1179.
Real estate transactions.
You must furnish a statement to the transferor containing the same information reported to the IRS on Form 1099-S.
You may use Copy B of the
official IRS Form 1099-S or a substitute form that complies with Pub. 1179 and Regulations section 1.6045-4(m). You may use
a Uniform Settlement
Statement (under RESPA) as the written statement if it is conformed by including on the statement the legend shown on Form
1099-S and by designating
which information is reported to the IRS on Form 1099-S. You may furnish the statement to the transferor in person, by mail,
or electronically.
Furnish the statement at or after closing but by January 31 of the following year.
The statement mailing requirements explained on page GEN-10 do not apply to statements to transferors for proceeds from real estate
transactions reported on Form 1099-S. However, the statement mailing requirements do apply to statements to transferors for
timber royalties
reportable under section 6050N on Form 1099-S.
Other information.
Statements to recipients for Forms 1098, 1098-C, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-CAP, 1099-G, 1099-H,
1099-LTC, 1099-MISC, 1099-Q,
1099-R, 1099-SA, 5498, 5498-ESA, 5498-SA, W-2G, 1099-DIV only for section 404(k) dividends reportable under section 6047,
1099-INT only for interest
reportable in the course of your trade or business under section 6041, or 1099-S only for royalties need not be, but can be,
a copy of the official
paper form filed with the IRS. If you do not use a copy of the paper form, the form number and title of your substitute must
be the same as
the official IRS form. All information required to be reported must be numbered and titled on your substitute in substantially
the same manner as on
the official IRS form. However, if you are reporting a payment as “ Other income” in box 3 of Form 1099-MISC, you may substitute appropriate
explanatory language for the box title. For example, for payments of accrued wages to a beneficiary of a deceased employee
required to be reported on
Form 1099-MISC, you might change the title of box 3 to “ Beneficiary payments” or something similar.
Appropriate instructions to the recipient, similar to those on the official IRS form, must be provided to aid in the
proper reporting of the items
on the recipient's income tax return. For payments reported on Form 1099-B, rather than furnish appropriate instructions with
each Form 1099-B
statement,
you may furnish to the recipient one set of instructions for all statements required to be furnished to a recipient in a
calendar year.
Except for royalties reported on Form 1099-MISC, the statement mailing requirements explained earlier do not apply
to statements to recipients for
information reported on the forms listed above under Other information. You may combine the statements with other reports or financial or
commercial notices, or expand them to include other information of interest to the recipient. Be sure that all copies of the
forms are legible.
Certain “ composite” statements are permitted. See Pub. 1179.
When to furnish forms or statements.
Generally, you must furnish Forms 1098, 1099, and W-2G information by January 31, 2006. However, you may issue them
earlier in some situations, as
provided by the regulations. For example, you may furnish Form 1099-INT to the recipient on redemption of U.S. Savings Bonds
at the time of
redemption. Brokers and barter exchanges may furnish Form 1099-B anytime but not later than January 31, 2006.
Donee organizations required to issue Form 1098-C must furnish the acknowledgment to a donor within 30 days of the
sale of the vehicle (if it is
sold without material improvements or significant intervening use) or within 30 days of the contribution.
Trustees or issuers of traditional IRAs must furnish participants with a statement of the value of the participant's
account, and RMD if
applicable, by January 31, 2006. The fair market value of SEP IRAs must also be furnished to the participant by January 31,
2006. Traditional IRA,
Roth IRA, SEP, or SIMPLE contribution information must be furnished to the participant by May 31, 2006. However, Coverdell
ESA contribution
information must be furnished to the beneficiary by May 1, 2006.
Trustees of a SIMPLE must furnish a statement of the account balance and the account activity by January 31, 2006.
For real estate transactions, you may furnish the statement to the transferor at closing or by mail on or before January
31, 2006.
Filers of Form 1099-G who report state or local income tax refunds, credits, or offsets must furnish the statements
to recipients during
January 2006.
See the Guide to Information Returns on pages GEN-17 and GEN-18 for the date other information returns are due to the recipient.
You will meet the requirement to furnish the statement if it is properly addressed and mailed, or posted to a website,
on or before the due date.
If the regular due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. A business day
is any day that is not a
Saturday, Sunday, or legal holiday.
Electronic recipient statements.
If you are required to furnish a written statement (Copy B or an acceptable substitute) to a recipient, then you may
furnish the statement
electronically instead of on paper. This includes furnishing the statement to recipients of Forms 1098, 1098-E, 1098-T, 1099-A,
B, C, CAP, DIV, H,
INT, G, LTC, MISC, OID, PATR, Q, R, S, SA, 5498, 5498-ESA, and 5498-SA. It also includes Form W-2G (except for horse and dog
racing, jai alai,
sweepstakes, wagering pools, and lotteries).
Until further guidance is issued to the contrary, Form 1098-C may not be furnished electronically.
If you meet the requirements listed below, you are treated as furnishing the statement timely.
Consent.
The recipient must consent in the affirmative and not have withdrawn the consent before the statement is furnished.
The consent by the recipient
must be made electronically in a way that shows that he or she can access the statement in the electronic format in which
it will be furnished.
You must notify the recipient of any hardware or software changes prior to furnishing the statement. A new consent
to receive the statement
electronically is required after the new hardware or software is put into service.
Prior to furnishing the statements electronically, you must provide the recipient a statement with the following statements
prominently displayed:
-
If the recipient does not consent to receive the statement electronically, a paper copy will be provided.
-
The scope and duration of the consent. For example, whether the consent applies to every year the statement is furnished or
only for the
January 31 immediately following the date of the consent.
-
How to obtain a paper copy after giving consent.
-
How to withdraw the consent. The consent may be withdrawn at any time by furnishing the withdrawal in writing (electronically
or on paper)
to the person whose name appears on the statement. Confirmation of the withdrawal also will be in writing (electronically
or on paper).
-
Notice of termination. The notice must state under what conditions the statements will no longer be furnished to the recipient.
-
Procedures to update the recipient's information.
-
A description of the hardware and software required to access, print and retain a statement, and a date the statement will
no longer be
available on the website.
Format, posting, and notification.
Additionally, you must:
-
Ensure the electronic format contains all the required information and complies with the applicable revenue procedure for
substitute
statements to recipients in Pub. 1179.
-
Post, on or before the January 31 due date, the applicable statement on a website accessible to the recipient through October
15 of that
year.
-
Inform the recipient, electronically or by mail, of the posting and how to access and print the statement.
For more information, see Regulations section 31.6051-1. For electronic furnishing of Forms 1098-E and 1098-T, see
Regulations section 1.6050S-2.
For electronic furnishing of Forms 1099-R, 1099-SA, 1099-Q, 5498, 5498-ESA, and 5498-SA, see Notice 2004-10 that is on page
433 of Internal Revenue
Bulletin 2004-6 at
www.irs.gov/pub/irs-irbs/irb04-06.pdf.
Extension.
You may request an extension of time to provide the statements to recipients by sending a letter to Enterprise Computing
Center—Martinsburg,
Information Reporting Program, Attn: Extension of Time Coordinator, 240 Murall Drive, Kearneysville, WV 25430. The letter
must include (a)
your name, (b) your TIN, (c) your address, (d) type of return, (e) a statement that your extension request
is for providing statements to recipients, (f) reason for delay, and (g) the signature of the payer or authorized agent.
Your
request must be postmarked by the date on which the statements are due to the recipients. If your request for an extension
is approved, generally you
will be granted a maximum of 30 extra days to furnish the recipient statements. If you are requesting extensions of time to
furnish statements for 50
or more recipients, see the TIP on page GEN-8.
I. Corrected Returns on Paper Forms
To file corrections on magnetic media, see Electronic/Magnetic Media Reporting on page GEN-5 and Pub. 1220.
If you filed a return with the IRS and later discover you made an error on it, you must:
When making a correction, complete all required information (see Filing Corrected Returns on Paper Forms on page GEN-13).
-
Do not cut or separate forms that are two or three to a page. Submit the entire page even if only one of the forms on the
page is
completed.
-
Do not staple the forms to Form 1096.
-
Do not send corrected returns to the IRS if you are correcting state or local information only. Contact the state or local
tax department
for help with this type of correction.
To correct payer information, see the instructions on
page GEN-6.
Form 1096.
Use a separate Form 1096 for each type of return you are correcting. For the same type of return, you may use one
Form 1096 for both originals and
corrections. You do not need to correct a previously filed Form 1096.
CORRECTED checkbox.
Enter an “ X” in the corrected checkbox only when correcting a form previously filed with the IRS or furnished to the recipient. When
the type
of error requires two returns to make the correction, see Filing Corrected Returns on Paper Forms on page GEN-13 to determine when to mark
the “ CORRECTED” checkbox.
Account number.
If the account number was provided on the original return, the same account number must be included on both the original
and corrected return to
properly identify and process the correction. If the account number was not provided on the original return, do not include
it on the corrected
return. See Account Number Box on Forms on page GEN-15.
Recipient's statement.
You may enter a date next to the “ CORRECTED” checkbox. This will help the recipient in the case of multiple corrections.
Filing corrected returns on paper forms.
The error charts on page GEN-13 give step-by-step instructions for filing corrected returns for the most frequently
made errors. They are grouped
under Error Type 1 or 2 , based on how the correction is made. Correction of errors may require the submission of more than
one
return. Be sure to read and follow the steps given.
If you fail to file correct information returns or furnish a correct payee statement, you may be subject to a penalty. See
Penalties on
page GEN-4. Regulations section 301.6724-1 (relating to information return penalties) does not require you to file corrected
returns for missing or
incorrect TINs if you meet the reasonable cause criteria. You are merely required to include the correct TIN on the next original
return you are
required to file. However, if you do not meet the reasonable cause criteria, a reduced penalty may be imposed if the corrected
returns are filed by
August 1.
In addition, even if you meet the reasonable cause criteria, the IRS encourages you to file corrections for incorrect or missing
TINs so that the
IRS can update the payees' records.
An “X” in the “VOID” box at the top of the form will not correct a previously filed return. See Corrected Returns on Paper
Forms on GEN-12 for instructions for making corrections.
VOID box.
If a completed or partially completed Form 1098, 1099, or 5498 is incorrect and you want to void it before submission
to the IRS, enter an “ X”
in the “ VOID” box at the top of the form. For example, if you make an error while typing or printing a form, you should void it. The return
will
then be disregarded during processing by the IRS. Go to the next form on the page, or to another page, and enter the correct
information; but do
not mark the “ CORRECTED” box. Do not cut or separate the forms that are two or three to a page. Submit the entire page even if only one of
the forms on the page is a good return.
K. Other Information Returns
The income information you report on the following forms must not be repeated on Forms 1099 or W-2G:
-
Form W-2 reporting wages and other employee compensation.
-
Forms 1042-S and 1000 reporting income to foreign persons.
-
Form 2439 reporting undistributed long-term capital gains of a regulated investment company or real estate investment trust.
-
Schedule K-1 of Form 1065 or 1065-B reporting distributive shares to members of a partnership.
-
Schedule K-1 of Form 1041 reporting distributions to beneficiaries of trusts or estates.
-
Schedule K-1 of Form 1120S reporting distributive shares to shareholders of S corporations.
-
Schedule K of Form 1120-IC-DISC reporting actual and constructive distributions to shareholders and deferred DISC income.
-
Schedule Q of Form 1066 reporting income from a REMIC to a residual interest holder.
L. Payments to Corporations and Partnerships
Generally, payments to corporations are not reportable. However, you must report payments to corporations for the following:
-
Medical and health care payments (Form 1099-MISC),
-
Withheld federal income tax or foreign tax,
-
Barter exchange transactions (Form 1099-B),
-
Substitute payments in lieu of dividends and tax-exempt interest (Form 1099-MISC),
-
Interest or original issue discount paid or accrued to a regular interest holder of a REMIC (Form 1099-INT or 1099-OID),
-
Acquisitions or abandonments of secured property (Form 1099-A),
-
Cancellation of debt (Form 1099-C),
-
Payments of attorneys' fees and gross proceeds paid to attorneys (Form 1099-MISC),
-
Fish purchases for cash (Form 1099-MISC), and
-
Federal executive agency payments for services (Form 1099-MISC). For additional reporting requirements, see Rev. Rul. 2003-66
that is on
page 1115 of Internal Revenue Bulletin 2003-26 at
www.irs.gov/pub/irs-irbs/irb03-26.pdf.
Reporting generally is required for all payments to partnerships . For example, payments of $600 or more made in the course
of your trade
or business to an architectural firm that is a partnership are reportable on Form 1099-MISC. However, see Regulations section
1.6049-4(c)(1)(ii)(A).
M. Earnings on any IRA, Coverdell ESA, Archer MSA, or HSA
Generally, income earned in any IRA, Coverdell ESA, Archer MSA, or HSA, such as interest or dividends, is not reported on
Forms 1099. However,
distributions must be reported on Form 1099-R, 1099-Q, or 1099-SA.
N. Certain Grantor Trusts
Certain grantor trusts may choose to file Forms 1099 rather than a separate statement attached to Form 1041 , U.S. Income
Tax Return for
Estates and Trusts. If you have filed Form 1041 for a grantor trust in the past and you want to choose the Form 1099 filing
method for 2005, you must
have filed a final Form 1041 for 2004. To change reporting method, see Regulations section 1.671-4(g) and the Instructions
for Form
1041 and Schedules A, B, D, G, I, J, and K-1 .
O. Special Rules for Reporting Payments Made Through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099
If you are the payer and have received a Form W-8IMY , Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or
Certain U.S.
Branches for United States Tax Withholding, from a foreign intermediary or flow-through entity, follow the instructions below
for completing Form
1099. Definitions of the terms used in these instructions are on page GEN-15.
For additional information including details on the presumption rules, see the Instructions for the Requester of Forms W-8BEN,
W-8ECI, W-8EXP, and
W-8IMY and Pub. 515. To order, see How To Get Forms and Publications on page GEN-3.
If you are the payer and do not have a Form W-9, appropriate Form W-8, or other valid documentation, or you cannot allocate
a payment to a specific
payee, prior to payment, you are required to use certain presumption rules to determine the following:
-
The status of the payee as a U.S. or foreign person and
-
The classification of the payee as an individual, trust, estate, corporation, or partnership.
See Regulations sections 1.1441-1(b)(3), 1.1441-5(d) and (e), 1.6045-1(g)(3)(ii), and 1.6049-5(d).
Under these presumption rules, if you must presume that the payee is a U.S. nonexempt recipient subject to backup withholding,
you must report the
payment on a Form 1099. However, if before filing Form 1099 with the IRS the recipient is documented as foreign, then report
the payment on a Form
1042-S.
On the other hand, if you must presume that the payee is a foreign recipient and prior to filing Form 1042-S with the IRS
you discover that the
payee is a U.S. nonexempt recipient based on documentation, then report all payments made to that payee during the calendar
year on a Form 1099.
If you use the 90-day grace period rule to presume a payee is foreign, you must file a Form 1042-S to report all payments
subject to withholding
during the grace period. If you later discover that the payee is a U.S. nonexempt recipient subject to backup withholding,
you must file a Form 1099
for all
payments made to that payee after the discovery of the payee's U.S. status.
Rules for Payments Made to U.S. Nonexempt Recipients Through a QI, NQI, or FTE
If you are the payer making a payment through a QI, NQI, or FTE for a U.S. nonexempt recipient on whose behalf the QI, NQI,
or FTE is acting, use
the following rules to complete Form 1099.
Known recipient.
If you know that a payee is a U.S. nonexempt recipient and have the payee's name, address, and TIN (if a TIN has been
provided), you must complete
the Form 1099 with that information. Also, on the second name line below the recipient's name enter “ IMY” followed by the name of the QI, NQI, or
FTE.
For payments made to multiple recipients: (a) enter the name of the recipient whose status you relied on to determine the
applicable
rate of withholding and (b) on the second name line, enter “IMY” followed by the name of the QI, NQI, or FTE. However, if the QI has
assumed primary Form 1099 reporting or backup withholding responsibility, you are not required to issue the Form 1099 or to
backup withhold. See
Qualified intermediary on page GEN-15.
Unknown recipient.
If you cannot reliably associate a payment with valid documentation and are required to presume a payee is a U.S.
nonexempt recipient:
-
File a Form 1099 and enter “unknown recipient” on the first name line.
-
On the second name line, enter “IMY” followed by the name of the QI, NQI, or FTE.
-
Enter the EIN of the QI, NQI, or FTE, if applicable, in the recipient's identification number box.
-
Furnish a copy of the Form 1099 with “unknown recipient” to the QI, NQI, or FTE who is acting on the recipient's behalf.
A payer that is required to report payments made to a U.S. nonexempt recipient account holder but does not receive the necessary
allocation
information cannot report those payments on a pro rata basis. Report unallocated payments using the presumption rules on page
above.
Rules for Non-U.S. Payers
Non-U.S. payers (foreign persons that are not U.S. payers) generally have the same reporting obligations as U.S. payers. A
U.S. payer is anyone who
is:
-
A U.S. person,
-
Any U.S. governmental agency,
-
A controlled foreign corporation (CFC),
-
A foreign partnership that has one or more U.S. partners who, in the aggregate hold more than 50 percent of the gross income
derived from
the conduct of a U.S. trade or business,
-
A foreign person who owns 50 percent or more of the gross income that is effectively connected with a U.S. trade or business,
or
-
A U.S. branch of a foreign bank or a foreign insurance company.
For more information, see Regulations section 1.6049-5(c)(5).
Exceptions.
The following payments are not subject to reporting by a non-U.S. payer:
-
A foreign source reportable payment paid outside the U.S. For example, see Regulations section 1.6049-5(b)(6).
-
Gross proceeds from a sale effected outside the U.S., see Regulations section 1.6045-1(a).
-
An NQI or QI that provides another payer all the information sufficient for that payer to complete Form 1099 reporting. For
example, see
Regulations section 1.6049-5(b)(14). However, if an NQI or QI does not provide sufficient information for another payer to
report a payment on Form
1099, the intermediary must report the payment.
Rules for Reporting Payments Initially Reported on Form 1042-S
If an NQI or QI receives a Form 1042-S made out to an “unknown recipient” and, the NQI or QI has actual knowledge that the payee of the income
is a U.S. nonexempt recipient, it must file a Form 1099 even if the payment has been subject to withholding by another payer.
The NQI or QI reports
the amount withheld by the other payer on Form 1099 as federal income tax withheld.
Foreign intermediary.
A foreign intermediary is any person who is not a U.S. person and acts as a custodian, broker, nominee, or otherwise
as an agent for another
person, regardless of whether that other person is the beneficial owner of the amount paid, a flow-through entity, or another
intermediary. The
intermediary can be a qualified intermediary or a nonqualified intermediary.
Qualified intermediary (QI).
A qualified intermediary is a person that is a party to a withholding agreement with the IRS and is:
-
A foreign financial institution or a foreign clearing organization (other than a U.S. branch or U.S. office of the institution
or
organization),
-
A foreign branch or office of a U.S. financial institution or a foreign branch or office of a U.S. clearing organization,
-
A foreign corporation for purposes of presenting claims of benefits under an income tax treaty on behalf of its shareholders,
or
-
Any other person the IRS accepts as a qualified intermediary and who enters into a withholding agreement with the IRS.
For details on QI agreements, see Rev. Proc. 2000-12 that is on page 387 of Internal Revenue Bulletin 2000-4 at
www.irs.gov/pub/irs-irbs/irb00-04.pdf; modified by Rev. Proc.
2003-64, Section 4A (Appendix 3), that is on page 306 of Internal Revenue Bulletin 2003-32 at
www.irs.gov/pub/irs-irbs/irb03-32.pdf; further modified by Rev.
Proc. 2004-21 that is on page 702 of Internal Revenue Bulletin 2004-14 at
www.irs.gov/pub/irs-irbs/irb04-14.pdf.
Nonqualified intermediary (NQI).
A nonqualified intermediary is any intermediary that is not a U.S. person and that is not a qualified intermediary.
Foreign flow-through entity (FTE).
A flow-through entity is a foreign partnership (other than a withholding foreign partnership), a foreign simple trust
or foreign grantor trust
(other than a withholding foreign trust), or, for payments for which a reduced rate of withholding is claimed under an income
tax treaty, any entity
to the extent the entity is considered to be fiscally transparent under section 894 with respect to the payment by an interest
holder's jurisdiction.
Withholding foreign partnership or withholding foreign trust.
A withholding foreign partnership or withholding foreign trust is a foreign partnership or a foreign simple or grantor
trust that has entered into
a withholding agreement with the IRS in which it agrees to assume primary withholding responsibility for all payments that
are made to it for its
partners, beneficiaries, or owners. See Rev. Proc. 2003-64 as amended by Rev. Proc. 2004-21, for procedures for entering into
a withholding foreign
partnership or trust agreement.
Nonwithholding foreign partnership, simple trust, or grantor trust.
A nonwithholding foreign partnership is any foreign partnership other than a withholding foreign partnership. A nonwithholding
foreign simple trust
is any foreign simple trust that is not a withholding foreign trust. A nonwithholding foreign grantor trust is any foreign
grantor trust that is not a
withholding foreign trust.
Fiscally transparent entity.
An entity is treated as fiscally transparent with respect to an item of income to the extent that the interest holders
in the entity must, on a
current basis, take into account separately their shares of an item of income paid to the entity, whether or not distributed,
and must determine the
character of the items of income as if they were realized directly from the sources from which they were realized by the entity.
For example,
partnerships, common trust funds, and simple trusts or grantor trusts are generally considered to be fiscally transparent
with respect to items of
income received by them.
P. Account Number Box on Forms
Use the account number box, when provided, on Forms 1099, 1098, 5498, and W-2G for an account number designation. The account
number is
required if you have multiple accounts for a recipient for whom you are filing more than one information return of the same
type. Additionally, the
IRS encourages you to include the recipient's account number on paper forms if your system of records uses the account number
rather than the name or
TIN for identification purposes. Also, the IRS will include the account number in future notices to you about backup withholding.
If you are filing
electronically or magnetically, see Pub. 1220.
The account number may be a checking account number, savings account number, serial number, or any other number you assign
to the payee that is
unique and will distinguish the specific account. This number must not appear anywhere else on the form, and this box may
not be used for any other
item unless the separate instructions indicate otherwise. Using unique account numbers ensures that corrected information
returns will be processed
accurately.
If you are using window envelopes to mail statements to recipients and using reduced rate mail, be sure the account number
does not appear in the
window. The Postal Service may not accept these for reduced rate mail.
Privacy Act and Paperwork Reduction Act Notice.
We ask for the information on these forms to carry out the Internal Revenue laws of the United States. You are required to
give us the information.
We need it to figure and collect the right amount of tax.
Sections 170(f)(12),199, 220(h), 223, 408, 408A, 529, 530, 6041, 6041A, 6042, 6043, 6044, 6045, 6047, 6049, 6050A, 6050B,
6050D, 6050E, 6050H,
6050J, 6050N, 6050P, 6050Q, 6050R, 6050S, 6050T, and their regulations require you to file an information return with the
IRS and furnish a statement
to recipients. Section 6109 and its regulations require you to provide your taxpayer identification number on what you file.
Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation, and to
cities, states, and the
District of Columbia for use in administering their tax laws. We may also disclose this information to other countries under
a tax treaty, to federal
and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat
terrorism. If you fail
to provide this information in a timely manner, you may be subject to penalties.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless
the form displays a valid
OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may
become material in the
administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by
section 6103.
The time needed to complete and file the following forms will vary depending on individual circumstances. The estimated average
times are:
If you have comments concerning the accuracy of these time estimates or suggestions for making these forms simpler, we would
be happy to hear from
you. You can write to the Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution
Ave. NW, IR-6406,
Washington, DC 20224. Do not send these forms to this address. Instead, see Where To File on page GEN-8.
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