General Instructions For Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, And W-2g)

other Forms 1099 and 5498, or on Forms 3921 and 3922,

A recipient statement may be perforated to a check or

you are encouraged to furnish telephone numbers.

to a statement of the recipient's specific account. The

check or account statement to which the recipient

Rules for furnishing statements. Different rules apply

statement is perforated must contain, in bold and

to furnishing statements to recipients depending on the

conspicuous type, the legend “Important Tax Return

type of payment (or other information) you are reporting

Document Attached.”

and the form you are filing.

The legend “Important Tax Return Document

If you are reporting a payment that includes

Enclosed” must appear in a bold and conspicuous

noncash property, show the fair market value of

manner on the outside of the envelope and on each letter

TIP

the property at the time of payment.

explaining why no check is enclosed, or on each check or

account statement that is not perforated to the recipient

Report the type of payment information as described

statement. The legend is not required on any tax form, tax

next for: (a) Dividend, interest, and royalty payments; (b)

statement, or permitted letter of tax consequences

Real estate transactions; and (c) Other information.

included in a statement mailing. Further, you need not

Dividend, interest, and royalty payments. For

pluralize the word “document” in the legend simply

payments of dividends under section 6042 (reported on

because more than one recipient statement

Form 1099-DIV), patronage dividends under section 6044

is enclosed.

(reported on Form 1099-PATR), interest (including

If you provide Forms 1097, 1098, 1099, 3921,

original issue discount and tax-exempt interest) under

3922, 5498, or W-2G recipient statements in a

section 6049 (reported on Form 1099-INT or 1099-OID),

TIP

“separate mailing” that contains only these

or royalties under section 6050N (reported on Form

statements, Forms W-8 and W-9, and a letter explaining

1099-MISC or 1099-S), you are required to furnish an

the tax consequences of the information shown on a

official IRS Form 1099 or an acceptable substitute Form

recipient statement included in the envelope, you are not

1099 to a recipient either in person, by First-Class Mail to

required to include the legend “Important Tax Return

the recipient's last known address, or electronically (see

Document Enclosed” on the envelope.

Electronic recipient

statements, later). Statements may be

sent by intraoffice mail if you use intraoffice mail to send

Substitute forms. You may furnish to the recipient

account information and other correspondence to the

Copy B of the official IRS form, or you may use substitute

recipient.

Forms 1099-DIV, 1099-INT, 1099-OID, or 1099-PATR, if

Statement mailing requirements for Forms

they contain the same language as the official IRS forms

1099-DIV, 1099-INT, 1099-OID, and 1099-PATR, and

and they comply with the rules in Pub. 1179 relating to

forms reporting royalties only. The following statement

substitute Forms 1099. Applicable box titles and numbers

mailing requirements apply only to Forms 1099-DIV

must be clearly identified, using the same wording and

(except for section 404(k) dividends), 1099-INT (except

numbering as the official IRS form. For information on

for interest reportable in the course of your trade or

substitute Forms 1099-MISC, see

Other

information, later.

business under section 6041), 1099-OID, 1099-PATR,

For Forms 1099-S, see Real estate transactions,

Real

and timber royalties reported under section 6050N (on

estate

transactions, later.

Form 1099-MISC or 1099-S). The mailing must contain

All substitute statements to recipients must

the official IRS Form 1099 or an acceptable substitute and

contain the tax year, form number, and form name

TIP

may also contain the following enclosures: (a) Form W-2,

prominently displayed together in one area of the

applicable Form W-8, Form W-9, or other Forms W-2G,

statement. For example, they could be shown in the upper

1097, 1098, 1099, 3921, 3922, and 5498 statements; (b)

right part of the statement.

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 1097, 1098, 1099,

If you are using substitutes, the IRS encourages you to

3921, 3922, or 5498; and (e) a letter explaining the tax

use boxes so that the substitute has the appearance of a

consequences of the information shown on the recipient

form. The substitute form must contain the applicable

statement.

instructions as on the front and back of Copy B (in the

case of Form 1099-R, Copies B, C, and 2) of the official

A statement of the person's account (year-end account

IRS form. See Pub. 1179 for additional requirements and

summary) that you are permitted to enclose in a statement

certain “composite” statements that are permitted.

mailing may include information similar to the following:

(a) the part of a mutual fund distribution that is interest on

Real estate transactions. You must furnish a statement

U.S. Treasury obligations; (b) accrued interest expense

to the transferor containing the same information reported

on the purchase of a debt obligation; and (c) the cost or

to the IRS on Form 1099-S. You may use Copy B of the

other basis of securities and the gain/loss on the sale of

official IRS Form 1099-S or a substitute form that

securities.

complies with Pub. 1179 and Regulations section

No additional enclosures, such as advertising,

1.6045-4(m). You may use a Settlement Statement (under

promotional material, or a quarterly or annual report, are

the Real Estate Settlement Procedures Act (RESPA)) as

permitted. Even a sentence or two on the year-end

the written statement if it is conformed by including on the

statement describing new services offered by the payer is

statement the legend shown on Form 1099-S and by

not permitted. Logos are permitted on the envelope and

designating which information is reported to the IRS on

Form 1099-S. You may furnish the statement to the

on any nontax enclosures. See Pub. 1179, section 1.3.2.

transferor in person, by mail, or electronically. Furnish the

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Gen. Instr. for Certain Info. Returns (2017)

General Instructions For Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, And W-2g) - 2017 Page 14

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