Instructions For Form 1099-G - 2000 (Page 3 of 4) in pdf

2 0 00

Department of the Treasury

Internal Revenue Service

Instructions for Form

1099-G

Section references are to the Internal Revenue Code unless otherwise noted.

If you pay interest of $600 or more on the refund, you must

What's New for 2000?

file Form 1099-INT and furnish a statement to the recipient. For

To help make it easier for you to get only the information you

interest payments of less than $600, you may choose to enter

need to complete the Forms 1099, 1098, 5498, and W-2G you

the amount with an appropriate designation such as “Interest

file, we are now providing general and specific form instructions

Income” in the blank box on the statement to the recipient.

as separate products. The new products you should use for

Box 3

2000 are the General Instructions for Forms 1099, 1098,

5498, and W-2G, which contains general information concerning

No entry is required in box 3 if the refund, credit, or offset is for

Form 1099-G and other forms in the 1099 series, and the

the 1999 tax year. If it is for any other tax year, enter the year

separate specific instructions for each information return you file.

for which the refund, credit, or offset was made. Also, if the

If you prefer to have all the specific and general instructions in

refunds, credits, or offsets are for more than 1 tax year, report

one booklet, the 2000 Instructions for Forms 1099, 1098,

the amount for each year on a separate Form 1099-G. Use the

5498, and W-2G is also available.

format “YYYY” to make the entry in this box. For example, enter

1998, not '98.

Specific Instructions for Form 1099-G

Box 4

Enter backup withholding. For example, persons who have

File Form 1099-G, Certain Government and Qualified State

not furnished their taxpayer identification number (TIN) to you

Tuition Program Payments, if you made certain payments as a

are subject to backup withholding at a 31% rate on payments

unit of a Federal, state, or local government or distributions from

required to be reported in box 6 or 7.

a qualified state tuition program (see Box 5 below).

Also enter any voluntary Federal withholding on

Statements to Recipients

unemployment compensation, Commodity Credit Corporation

loans, and certain crop disaster payments. If you withheld state

If you are required to file Form 1099-G, you must provide a

income tax, you may label it and report it on the statement to the

statement to the recipient. Furnish a copy of Form 1099-G or an

recipient. However, you are not required to report state

acceptable substitute statement to each recipient, except as

withholding to the IRS.

explained below under Box 2. Also, see part H in the 2000

General Instructions for Forms 1099, 1098, 5498, and

Box 5

W-2G.

Enter the earnings part of any distribution (including in-kind

Box 1

distributions) from a qualified state tuition program (QSTP) made

to the designated beneficiary or account owner. If a QSTP

Enter payments of $10 or more in unemployment

makes a distribution directly to an eligible educational institution

compensation including Railroad Retirement Board payments

to pay tuition and fees for the designated beneficiary or the

for unemployment. Enter the total amount before any income tax

QSTP makes a check payable to both the beneficiary and the

was withheld. If you withhold Federal income tax at the request

educational institution, enter the name, address, and TIN of the

of the recipient, enter it in box 4.

beneficiary on Form 1099-G.

Box 2

Qualified state tuition program. A QSTP is a program

established and maintained by a state or its agency or

Enter refunds, credits, or offsets of state or local income tax

instrumentality under which a person:

of $10 or more you made to recipients. If recipients deducted the

tax paid to a state or local government on their Federal income

1. May purchase tuition credits or certificates on behalf of a

tax returns, any refunds, credits, or offsets may be taxable to

designated beneficiary that entitle the beneficiary to the waiver

them. If you can determine that the recipient did not claim

or payment of qualified higher education expenses or

itemized deductions on the recipient's Federal income tax return

2. May make contributions to an account established to meet

for the tax year giving rise to the refund, credit, or offset, you are

the qualified higher education expenses of the account

not required to furnish a copy of Form 1099-G or a substitute

beneficiary.

statement to the recipient. However, you must file Form 1099-G

Other rules apply. See Proposed Regulations section 1.529-2.

with the IRS in all cases.

Distributions. Distributions, whether in cash or in kind, include

A tax on dividends, a tax on net gains from the sale or

tuition credits or certificates, payment vouchers, tuition waivers,

exchange of a capital asset, and a tax on the net taxable income

or other similar items. Distributions also include a refund to the

of an unincorporated business are taxes on gain or profit rather

account owner, to the designated beneficiary, or to the

than on gross receipts. Therefore, they are income taxes, and

designated beneficiary's estate.

any refund, credit, or offset of $10 or more of these taxes is

Do not file Form 1099-G for a change in the name of the

reportable on Form 1099-G. In the case of the dividends tax and

designated beneficiary on an account if the new beneficiary is a

the capital gains tax, if you determine that the recipient did not

member of the former beneficiary's family. Also, do not file Form

itemize deductions, as explained above, you are not required to

1099-G for a rollover. For purposes of reporting on Form

furnish a Form 1099-G or substitute statement to the recipient.

1099-G, a rollover is a trustee-to-trustee transfer from the

However, in the case of the tax on unincorporated businesses,

designated beneficiary's account to an account established for

you must furnish a Form 1099-G or substitute statement to the

a member of the designated beneficiary's family. The new

recipient in all cases, as this is a tax that applies exclusively to

designated beneficiary's account may be in a QSTP in the same

income from a trade or business. See Box 8 on page G-2 and

or another state. A distribution is not a rollover unless there is

Rev. Rul. 86-140, 1986-2 C.B. 195.

Cat. No. 27979M

Instructions For Form 1099-G - 2000 Page 3

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