Instructions For Forms 1099-Sa And 5498-Sa - 2006 (Page 5 of 25) in pdf

2006

Department of the Treasury

Internal Revenue Service

General Instructions for

Forms 1099, 1098, 5498,

and W-2G

has filed a Chapter 11 bankruptcy case. See Part J on page

Section references are to the Internal Revenue Code unless

GEN-8.

otherwise noted.

Where to file. With the exception of Form 1098-C, all

Contents

Page

information returns will be filed with only two Internal Revenue

Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-1

Service Centers: Austin, TX, and Kansas City, MO. See part D

What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-1

on page GEN-4 and Form 1096, Annual Summary and

Items You Should Note . . . . . . . . . . . . . . . . . . . . . . . . . GEN-2

Transmittal of U.S. Information Returns.

A. Who Must File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-3

Form W-2G. Section 419 of the American Jobs Creation Act of

B. Other Information Returns . . . . . . . . . . . . . . . . . . . . . GEN-3

2004 (P.L. 108-357) exempted certain types of parimutuel

C. When To File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-4

winnings from withholding and reporting after October 22, 2004.

D. Where To File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-4

See Foreign Persons on page W-2 for these exemptions

E. Filing Returns With the IRS . . . . . . . . . . . . . . . . . . . . GEN-4

relating to live dog racing and horse racing.

F. Electronic/Magnetic Media Reporting . . . . . . . . . . . . . GEN-5

Form 1098-C. The following changes were made to the 2006

G. Paper Document Reporting . . . . . . . . . . . . . . . . . . . GEN-6

Form 1098-C.

H. Corrected Returns on Paper Forms . . . . . . . . . . . . . . GEN-6

•

New boxes 6a, 6b, and 6c have been added to Form 1098-C

Filing Corrected Returns on Paper Forms . . . . . . . . . . GEN-7

to satisfy new reporting requirements added by the Gulf

I. Void Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-8

Opportunity Zone Act of 2005. The donee is required to state

J. Recipient Names and Taxpayer Identification

whether any goods or services were provided, in whole or in

Numbers (TINs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-8

part, for the donation of a qualified vehicle and, if so, a

K. Filer’s Name, Identification Number, and Address . . . . GEN-9

description and fair market value of those goods or services. If

L. Account Number Box on Forms . . . . . . . . . . . . . . . . . GEN-9

the goods and services consisted of intangible religious

M. Statements to Recipients (Borrowers, Debtors,

benefits, then a statement to that effect must also be included.

•

Donors, Insureds, etc.) . . . . . . . . . . . . . . . . . . . . . . . GEN-9

New box 7 has been added to Form 1098-C to allow this form

N. Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . GEN-11 to be used as the contemporaneous written acknowledgment

O. Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-12 under section 170(f)(8) for a qualified vehicle with a claimed

P. Payments to Corporations and Partnerships . . . . . . . . GEN-13 value of at least $250 but not more than $500.

Q. Earnings on any IRA, Coverdell ESA, Archer MSA,

Form 1098-T. One of two methods may be used to report

or HSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-14 qualified tuition and related expenses. Institutions may report

R. Certain Grantor Trusts . . . . . . . . . . . . . . . . . . . . . . . GEN-14 either payments received in Box 1 or amounts billed in Box 2.

S. Special Rules for Reporting Payments Made

Box 3 has been revised to alert students that institutions have

Through Foreign Intermediaries and Foreign

changed their method of reporting as required under Rev. Proc.

Flow-Through Entities on Form 1099 . . . . . . . . . . . . . GEN-14 2005-50 which is available on page 272 of Internal Revenue

Bulletin 2005-32 at

T. Need Help? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-15

Guide to Information Returns . . . . . . . . . . . . . . . . . . . . GEN-18 Form 1099-DIV. Section 502 of the Tax Increase Prevention

Types of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . GEN-20 and Reconciliation Act of 2005 has changed section 6049(b) by

requiring the reporting of interest on state or local bonds that

Reminders

are tax-exempt under section 103(a). After December 31, 2005,

exempt-interest dividends from regulated investment

Electronic/Magnetic Media Filing. E-filers are reminded that

companies retain their tax-exempt status and are reported on

using the FIRE system requires following the specifications

Form 1099-INT, Interest Income.

contained in Pub. 1220. Also, the IRS does not provide a fill-in

Form 1099-INT.

form option. See page GEN-5 for information on e-file.

•

Amendments to section 6049 have added two new items of

Payee. Throughout these instructions the term “payee”

reportable interest income. Section 1303 of the Energy Tax

means any recipient of Forms 1099, 1098, 5498, or W-2G

Incentives Act of 2005 added new section 54 that allows for a

including borrowers, debtors, donors, insureds, participants,

credit to holders of clean renewable energy bonds. The Gulf

policyholders, students, transferors, and winners on

Opportunity Act of 2005 added new section 1400N that allows a

certain forms.

credit to holders of Gulf bonds. Both new items are treated as

interest income as required by new section 6049(d)(8) and are

Hurricane relief provisions. For information on the relief

reported on Form 1099-INT, Interest Income.

provisions relating to Hurricanes Katrina, Rita, and Wilma, see

•

Section 502 of the Tax Increase Prevention and

section 1400Q, Pub. 4492, Information for Taxpayers Affected

Reconciliation Act of 2005 amended section 6049(b) and now

by Hurricanes Katrina, Rita, and Wilma, or visit the IRS website

requires the reporting of certain tax-exempt interest. New boxes

at and click on Help for Hurricane Victims.

8 and 9 have been added to meet this new reporting

requirement. Backup withholding may apply.

What’s New

Form 1099-R. The following changes have been made to Form

Recipient name and taxpayer identification number. New

1099-R.

•

reporting rules apply regarding the correct name and EIN to

The title of box 5 has been revised to include the reporting of

show on the information return for an individual recipient who

the basis of distributions from designated Roth accounts.

Cat. No. 27976F

Instructions For Forms 1099-Sa And 5498-Sa - 2006 Page 5

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