Instructions For Forms 1099-Sa And 5498-Sa - 2006 (Page 12 of 25) in pdf

on the original return, do not include it on the corrected return.

or other reportable payments on the applicable information

See part L on page GEN-9.

return using the estate’s name and EIN. The debtor should

notify you when the bankruptcy is closed, dismissed, or

Recipient’s statement. You may enter a date next to the

converted, so that any subsequent information returns will be

“CORRECTED” checkbox. This will help the recipient in the

filed with the correct name and EIN. Different rules apply if the

case of multiple corrections.

bankruptcy is converted to Chapter 7, 12, or 13 of the

Filing corrected returns on paper forms. The error charts on

Bankruptcy Code. For additional guidance, see Notice 2006-83

page GEN-7 give step-by-step instructions for filing corrected

which is on page 596 of Internal Revenue Bulletin 2006-40

returns for the most frequently made errors. They are grouped

available at

under Error Type 1 or 2, based on how the correction is made.

TINs. TINs are used to associate and verify amounts you

Correction of errors may require the submission of more than

report to the IRS with corresponding amounts on tax returns.

one return. Be sure to read and follow the steps given.

Therefore, it is important that you furnish correct names, social

security numbers (SSNs), individual taxpayer identification

If you fail to file correct information returns or furnish a

numbers (ITINs), or employer identification numbers (EINs) for

correct payee statement, you may be subject to a

recipients on the forms sent to the IRS.

penalty. See part O on page GEN-12. Regulations

CAUTION

section 301.6724-1 (relating to information return penalties)

Requesting a recipient’s TIN. If the recipient is a U.S.

does not require you to file corrected returns for missing or

person (including a U.S. resident alien), the IRS suggests that

incorrect TINs if you meet the reasonable cause criteria. You

you request the recipient complete Form W-9 (or Form W-9S, if

are merely required to include the correct TIN on the next

appropriate). See the Instructions for the Requester of Form

original return you are required to file. However, if you do not

W-9 for more information on how to request a TIN.

meet the reasonable cause criteria, a reduced penalty may be

If the recipient is a foreign person, the IRS suggests that you

imposed if the corrected returns are filed by August 1.

request the recipient complete the appropriate Form W-8. See

In addition, even if you meet the reasonable cause criteria,

the Instructions for the Requester of Forms W-8BEN, W-8ECI,

the IRS encourages you to file corrections for incorrect or

W-8EXP, and W-8IMY.

missing TINs so that the IRS can update the payees’ records.

U.S. resident aliens who rely on a “saving clause” of a

tax treaty are to complete Form W-9, not Form W-8BEN.

I. Void Returns

See Pub. 515, Withholding of Tax on Nonresident Aliens

CAUTION

and Foreign Entities, and Pub. 519.

An “X” in the “VOID” box at the top of the form will not correct a

You may be subject to a penalty for an incorrect or missing

previously filed return. See Corrected Returns on Paper Forms

TIN on an information return. See part O on page GEN-12. You

on page GEN-6 for instructions for making corrections.

are required to maintain the confidentiality of information

VOID box. If a completed or partially completed Form 1098,

obtained on a Form W-9/W-9S relating to the taxpayer’s identity

1099, or 5498 is incorrect and you want to void it before

(including SSNs, EINs, and ITINs), and you may use such

submission to the IRS, enter an “X” in the “VOID” box at the top

information only to comply with the tax laws.

of the form. For example, if you make an error while typing or

printing a form, you should void it. The return will then be

If the recipient does not provide a TIN, leave the box for

disregarded during processing by the IRS. Go to the next form

TIP

the recipient’s TIN blank on the Form 1098, 1099, 5498,

on the page, or to another page, and enter the correct

or W-2G. Only one recipient TIN can be entered on the

information; but do not mark the “CORRECTED” box. Do not

form. Backup withholding may apply; see part N on page

cut or separate the forms that are two or three to a page.

GEN-11.

Submit the entire page even if only one of the forms on the

The TIN for individual recipients of information returns is the

page is a good return.

SSN. See the information about sole proprietors above. For

other recipients, including corporations, partnerships, and

estates, the TIN is the EIN. Income reportable after the death of

J. Recipient Names and Taxpayer

an individual must reflect the TIN of the payee, that is of the

Identification Numbers (TINs)

estate or of the surviving joint owner. For more information, see

Personal Representative in Pub. 559, Survivors, Executors, and

Recipient name. Show the full name and address in the

Administrators. For LLCs, see the information on LLC above.

section provided on the information return. If payments have

SSNs have nine digits separated by two hyphens

been made to more than one recipient or the account is in more

(000-00-0000), and EINs have nine digits separated by only

than one name, show on the first name line the name of the

one hyphen (00-0000000).

recipient whose TIN is first shown on the return. You may show

the names of any other individual recipients in the area below

Electronic submission of Forms W-9. Requesters may

the first line, if desired. Form W-2G filers, see the Instructions

establish a system for payees and payees’ agents to submit

for Forms W-2G and 5754.

Forms W-9 electronically, including by fax. A requester is

anyone required to file an information return. A payee is anyone

Sole proprietors. You must show the individual’s name on

required to provide a TIN to the requester.

the first name line; on the second name line, you may enter the

“doing business as (DBA)” name. You may not enter only the

Payee’s agent. A payee’s agent can be an investment

DBA name. For the TIN, enter either the individual’s SSN or the

advisor (corporation, partnership, or individual) or an

EIN of the business (sole proprietorship). The IRS prefers that

introducing broker. An investment advisor must be registered

you enter the SSN.

with the Securities Exchange Commission (SEC) under The

Investment Advisers Act of 1940. The introducing broker is a

Limited liability company (LLC). For a single-member LLC

broker-dealer that is regulated by the SEC and the National

(including a foreign LLC with a U.S. owner) that is disregarded

Association of Securities Dealers, Inc., and that is not a payer.

as an entity separate from its owner under Regulations section

Except for a broker who acts as a payee’s agent for “readily

301.7701-3, enter the individual’s name only on the first name

tradable instruments,” the advisor or broker must show in

line and the LLC’s name on the second name line. For the TIN,

writing to the payer that the payee authorized the advisor or

enter the individual’s SSN (or EIN, if applicable). If the LLC is a

broker to transmit the Form W-9 to the payer.

corporation, partnership, etc., enter the entity’s EIN.

Generally, the electronic system must:

Bankruptcy estate. If an individual (the debtor) for whom

you are required to file an information return is in Chapter 11

1. Ensure the information received is the information sent

bankruptcy, and the debtor notified you of the bankruptcy

and document all occasions of user access that result in the

estate’s EIN, report post-petition gross income, gross proceeds,

submission.

GEN-8

Instructions For Forms 1099-Sa And 5498-Sa - 2006 Page 12

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