Instructions For Form 1099-G - 2006 (Page 3 of 24) in pdf

2006

Department of the Treasury

Internal Revenue Service

Instructions for Form

1099-G

Section references are to the Internal Revenue Code.

1099-G. In the case of the dividends tax and the capital gains tax, if

Reminder

you determine that the recipient did not itemize deductions, as

In addition to these specific instructions, you should also use the

explained above, you are not required to furnish a Form 1099-G or

2006 General Instructions for Forms 1099, 1098, 5498, and W-2G.

substitute statement to the recipient. However, in the case of the

Those general instructions include information about:

tax on unincorporated businesses, you must furnish a Form 1099-G

•

Backup withholding

or substitute statement to the recipient in all cases, as this is a tax

•

Magnetic media and electronic reporting requirements

that applies exclusively to income from a trade or business. See

•

Penalties

Box 8. Trade or Business Income (Checkbox), below and Rev. Rul.

•

Who must file (nominee/middleman)

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

•

When and where to file

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

•

Taxpayer identification numbers

Form 1099-INT, Interest Income, and furnish a statement to the

•

Statements to recipients

recipient. For interest payments of less than $600, you may choose

•

Corrected and void returns

to enter the amount with an appropriate designation such as

•

Other general topics

“Interest Income” in the blank box on Copy B of the Form 1099-G.

You can get the general instructions from the IRS website at

Box 3. Box 2 Amount Is For Tax Year

or by calling 1-800-TAX-FORM (1-800-829-3676).

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

2005 tax year. If it is for any other tax year, enter the year for which

Specific Instructions for Form 1099-G

the refund, credit, or offset was made. Also, if the refunds, credits,

or offsets are for more than 1 tax year, report the amount for each

File Form 1099-G, Certain Government Payments, if as a unit of a

year on a separate Form 1099-G. Use the format “YYYY” to make

federal, state, or local government, you made payments of

the entry in this box. For example, enter 2004, not ’04.

unemployment compensation; state or local income tax refunds,

credits, or offsets; alternative trade adjustment assistance (ATAA)

Box 4. Federal Income Tax Withheld

payments; taxable grants; or agricultural payments. The officer or

Backup withholding. Enter backup withholding at a 28% rate on

employee of the government unit having control of the payments (or

payments required to be reported in box 6 or 7. For example, if a

the designated officer or employee) must file Form 1099-G.

recipient does not furnish its taxpayer identification number (TIN) to

Statements to Recipients

you, you must backup withhold.

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

Voluntary withholding. Enter any voluntary federal withholding on

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

unemployment compensation, Commodity Credit Corporation

acceptable substitute statement to each recipient, except as

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

explained below under Box 2. State or Local Income Tax Refunds,

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

Credits, or Offsets. Also, see part M in the 2006 General

recipient. However, you are not required to report state withholding

Instructions for Forms 1099, 1098, 5498, and W-2G.

to the IRS.

Account Number

Box 5. ATAA Payments

The account number is required if you have multiple accounts for a

Enter ATAA payments of $600 or more that you paid to eligible

recipient for whom you are filing more than one Form 1099-G.

individuals under the Demonstration Project for Alternative Trade

Additionally, the IRS encourages you to designate an account

Adjustment Assistance for Older Workers.

number for all Forms 1099-G that you file. See part L in the 2006

Box 6. Taxable Grants

General Instructions for Forms 1099, 1098, 5498, and W-2G.

Enter any amount of a taxable grant administered by a federal,

Box 1. Unemployment Compensation

state, or local program to provide subsidized energy financing or

Enter payments of $10 or more in unemployment compensation

grants for projects designed to conserve or produce energy, but

including Railroad Retirement Board payments for unemployment.

only with respect to energy property or a dwelling unit located in the

Enter the total amount before any income tax was withheld. If you

United States. Also, enter any amount of a taxable grant

withhold federal income tax at the request of the recipient, enter it

administered by an Indian tribal government.

in box 4.

Report amounts of other taxable grants of $600 or more. A

federal grant is ordinarily taxable unless stated otherwise in the

Box 2. State or Local Income Tax Refunds,

legislation authorizing the grant. Do not report scholarship or

Credits, or Offsets

fellowship grants. See Scholarships in the Instructions for Form

Enter refunds, credits, or offsets of state or local income tax of $10

1099-MISC.

or more you made to recipients. If recipients deducted the tax paid

Box 7. Agriculture Payments

to a state or local government on their federal income tax returns,

any refunds, credits, or offsets may be taxable to them. You are not

Enter USDA agricultural subsidy payments made during the year. If

you are a nominee that received subsidy payments for another

required to furnish a copy of Form 1099-G or a substitute statement

to the recipient if you can determine that the recipient did not claim

person, file Form 1099-G to report the actual owner of the

itemized deductions on the recipient’s federal income tax return for

payments, and report the amount of the payments in box 7.

the tax year giving rise to the refund, credit, or offset. However, you

Box 8. Trade or Business Income (Checkbox)

must file Form 1099-G with the IRS in all cases.

If the amount in box 2 is a refund, credit, or offset attributable to an

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

income tax that applies exclusively to income from a trade or

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

business and is not a tax of general application, enter an “X” in this

unincorporated business are taxes on gain or profit rather than on

box.

gross receipts. Therefore, they are income taxes, and any refund,

credit, or offset of $10 or more of these taxes is reportable on Form

Cat. No. 27979M

Instructions For Form 1099-G - 2006 Page 3

Related Articles

Related forms

Related Categories