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

racing, jai alai, sweepstakes, wagering pools, and

Form 1099-K, see Regulations section 1.6050W-2(a)(2)

lotteries).

(i); and

Forms 1099-QA and 5498-QA, see Proposed

Until further guidance is issued to the contrary,

Regulations section 1.529A-7, available at

Form 1098-C may not be furnished electronically.

irb/2015-27_IRB/ar09.html.

CAUTION

Extension of time to furnish statements to recipients.

If you meet the requirements that follow, you are

You may request an extension of time to furnish the

treated as furnishing the statement timely.

statements to recipients by sending a letter to Internal

Consent. The recipient must consent in the affirmative

Revenue Service, Attn: Extension of Time Coordinator,

and not have withdrawn the consent before the statement

240 Murall Drive, Mail Stop 4360, Kearneysville, WV

is furnished. The consent by the recipient must be made

25430. The letter must include (a) payer name, (b) payer

electronically in a way that shows that he or she can

TIN, (c) payer address, (d) type of return, (e) a statement

access the statement in the electronic format in which it

that extension request is for providing statements to

will be furnished.

recipients, (f) reason for delay, and (g) the signature of the

You must notify the recipient of any hardware or

payer or authorized agent. Your request must be

software changes prior to furnishing the statement. A new

postmarked by the date on which the statements are due

consent to receive the statement electronically is required

to the recipients. If your request for an extension is

after the new hardware or software is put into service.

approved, generally you will be granted a maximum of 30

Prior to furnishing the statements electronically, you

extra days to furnish the recipient statements.

must provide the recipient a statement with the following

N. Backup Withholding

statements prominently displayed.

If the recipient does not consent to receive the

Interest (including tax-exempt interest and

statement electronically, a paper copy will be provided.

exempt-interest dividends), dividends, rents, royalties,

The scope and duration of the consent. For example,

commissions, nonemployee compensation, and certain

whether the consent applies to every year the statement is

other payments (including broker and barter exchange

furnished or only for the statement for a particular year, as

transactions, compensation paid to an H-2A visa holder

applicable, immediately following the date of the consent.

who did not furnish a TIN, reportable gross proceeds paid

How to obtain a paper copy after giving consent.

to attorneys, payment card and third-party network

How to withdraw the consent. The consent may be

transactions, and certain payments made by fishing boat

withdrawn at any time by furnishing the withdrawal in

operators) may be subject to backup withholding at a 28%

writing (electronically or on paper) to the person whose

rate. To be subject to backup withholding, a payment

name appears on the statement. Confirmation of the

must be a reportable interest (including tax-exempt

withdrawal also will be in writing (electronically or on

interest and exempt-interest dividends) or dividend

paper).

payment under sections 6049(a), 6042(a), or 6044 (if the

Notice of termination. The notice must state under what

patronage dividend is paid in money or qualified check),

conditions the statements will no longer be furnished to

or an “other” reportable payment under sections 6041,

the recipient.

6041A(a), 6045, 6050A, 6050N, or 6050W. If the payment

Procedures to update the recipient's information.

is one of these reportable payments, backup withholding

A description of the hardware and software required to

will apply if:

access, print, and retain a statement, and a date the

1. The payee fails to furnish his or her TIN to you;

statement will no longer be available on the website.

Format, posting, and notification. Additionally, you

2. For interest, dividend, and broker and barter

must do the following.

exchange accounts opened or instruments acquired after

Ensure the electronic format contains all the required

1983, the payee fails to certify, under penalties of perjury,

information and complies with the applicable revenue

that the TIN provided is correct;

procedure for substitute statements to recipients in Pub.

3. The IRS notifies you to impose backup withholding

1179.

because the payee furnished an incorrect TIN;

Post, on or before the due date, the applicable

4. For interest and dividend accounts or instruments,

statement on a website accessible to the recipient through

you are notified that the payee is subject to backup

October 15 of that year.

withholding (under section 3406(a)(1)(C)); or

Inform the recipient, electronically or by mail, of the

5. For interest and dividend accounts opened or

posting and how to access and print the statement.

instruments acquired after 1983, the payee fails to certify

For more information, see Regulations section

to you, under penalties of perjury, that he or she is not

31.6051-1.

subject to backup withholding. See 4 under

When to apply

For electronic furnishing of:

backup withholding

below.

Forms 1098-E and 1098-T, see Regulations section

If you do not collect and pay over backup

1.6050S-2;

withholding from affected payees as required, you

Forms 1099-R, 1099-SA, 1099-Q, 5498, 5498-ESA,

may become liable for any uncollected amount.

and 5498-SA, see Notice 2004-10, 2004-6 I.R.B. 433,

CAUTION

available at irb/2004-06_IRB/ar12.html;

Some payees are exempt from backup withholding. For

Forms 3921 and 3922, see the form instructions;

a list of exempt payees and other information, see Form

-16-

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 16

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