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

information reporting obligations for these forms. The

6041A and may be required to file Form 1099-MISC. For

predecessor and successor may agree to:

payments made by the fund on behalf of a claimant or

transferor, the fund is subject to these same rules and

1. Use the combined reporting procedure for all Forms

may have to file Form 1099-MISC for the payment to a

1097, 1098, 1099, 3921, 3922, 5498, and W-2G; or

third party. For information reporting purposes, a payment

2. Limit the use of the combined reporting procedure

made by the fund on behalf of a claimant or transferor is

to (a) specific forms, or (b) specific reporting entities,

considered a distribution to the claimant or transferor and

including any unit, branch, or location within a particular

is also subject to information reporting requirements.

business entity that files its own separate information

The same filing requirements, exceptions, and

returns. For example, if the predecessor's and

thresholds may apply to qualified settlement funds as

successor's only compatible computer or recordkeeping

apply to any other payer. That is, the fund must determine

systems are their dividends paid ledgers, they may agree

the character of the payment (for example, interest, fixed

to use the combined reporting procedure for Forms

or determinable income, or gross proceeds from broker

1099-DIV only. Similarly, if the only compatible systems

transactions) and to whom the payment is made (for

are in their midwest branches, they may agree to use the

example, corporation or individual).

combined reporting procedure for only the midwest

branches.

For more information, see Regulations section

1.468B-2(l). Also, see Treasury Decision (TD) 9249,

Combined reporting procedure. On each Form

2006-10 I.R.B. 546, available at

1097, 1098, 1099, 3921, 3922, 5498, and W-2G filed by

2006-10_IRB/ar05.html. TD 9249 relates to escrow and

the successor, the successor must combine the

similar funds.

predecessor's (before the acquisition) and successor's

Payments to foreign persons. See the Instructions for

reportable amounts, including any withholding, for the

Form 1042-S, relating to U.S. source income of foreign

acquisition year and report the aggregate. For

persons, for reporting requirements relating to payments

transactional reporting on Form 1099-B, the successor

to foreign persons.

must report each of the predecessor's transactions and

each of its own transactions on each Form 1099-B. These

Widely held fixed investment trusts (WHFITs).

same reporting requirements apply to Form 3921 and

Trustees and middlemen of WHFITs are required to report

Form 3922. The successor may include with the form sent

all items of gross income and proceeds on the appropriate

to the recipient additional information explaining the

Form 1099. For the definition of a WHFIT, see

combined reporting.

Regulations section 1.671-5(b)(22). A tax information

For purposes of the combined reporting procedure, the

statement that includes the information provided to the

sharing of TINs and other information obtained under

IRS on Forms 1099, as well as additional information

section 3406 for information reporting and backup

identified in Regulations section 1.671-5(e), must be

withholding purposes does not violate the confidentiality

furnished to trust interest holders (TIHs).

rules in section 3406(f).

Items of gross income (including OID) attributable to

Statement required. The successor must file a

the TIH for the calendar year including all amounts of

statement with the IRS indicating the forms that are being

income attributable to selling, purchasing, or redeeming of

filed on a combined basis under Rev. Proc. 99-50. The

a trust holder's interest in the WHFIT must be reported.

statement must:

Items of income that are required to be reported including

1. Include the predecessor's and successor's names,

non-pro rata partial principal payments, trust sales

addresses, telephone numbers, EINs, and the name and

proceeds, redemption asset proceeds, and sales of a trust

telephone number of the person responsible for preparing

interest on a secondary market must be reported on Form

the statement;

1099-B. See Regulations section 1.671-5(d).

2. Reflect separately the amount of federal income tax

Safe harbor rules for determining the amount of an item

withheld by the predecessor and by the successor for

to be reported on Form 1099 and a tax information

each type of form being filed on a combined basis (for

statement with respect to a TIH in a non-mortgage WHFIT

example, Form 1099-R or 1099-MISC); and

(NMWHFIT) and a widely held mortgage trust (WHMT)

are found in Regulations sections 1.671-5(f) and (g),

3. Be sent separately from Forms 1097, 1098, 1099,

respectively.

3921, 3922, 5498, and W-2G by the forms' due date to:

Internal Revenue Service, Information Returns Branch,

Trustees and middlemen must follow all the rules for

230 Murall Drive, Mail Stop 4360, Kearneysville, WV

filing Forms 1099 with the IRS and furnishing a statement

25430. Do not send Form 1042-S statements to this

to the TIH (except as noted below) as described in parts A

address. Instead, use the address given in the

through S of these instructions. Trustees and middlemen

Instructions for Form 1042-S; see Rev. Proc. 99-50.

should also follow the separate instructions for Forms

1099-B, 1099-DIV, 1099-INT, 1099-MISC, and 1099-OID,

Qualified settlement funds. A qualified settlement fund

as applicable, which may address additional income

must file information returns for distributions to claimants if

reporting requirements.

any transferor to the fund would have been required to file

Due date and other requirements for furnishing

if the transferor had made the distributions directly to the

statement to TIH. The written tax information for 2017

claimants.

furnished to the TIH is due on or before March 15, 2018.

For distributions to transferors, a fund is subject to the

For other items of expense and credit that must be

information reporting requirements of sections 6041 and

reported to the TIH, see Regulations section 1.671-5(c).

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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 3

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