Instructions For Forms 1099-Sa And 5498-Sa - 2006 (Page 6 of 25) in pdf

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The untitled box to the left of box 10 is used for reporting the

photographs and calling 1-800-THE-LOST(1-800-843-5678) if

first year of designated Roth account contributions.

you recognize a child.

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Instructions for Recipient has been expanded to include the

Available Products

back of Copy 2.

In addition to these general instructions, which contain general

The following changes have been made to the Specific

information concerning Forms 1099, 1098, 5498, and W-2G, we

Instructions for Form 1099-R.

provide specific form instructions as separate products. Get the

Account closure. Instructions for reporting a distribution as

instructions you need for completing a specific form from the

a result of an account closure due to a failure of the taxpayer to

following list of separate instructions:

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satisfy the Customer Identification Program requirements of the

Instructions for Forms W-2G and 5754

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U.S. Patriot Act have been added to the discussion of an IRA

Instructions for Form 1098

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revocation.

Instructions for Form 1098-C

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Permissive service credits. An instruction has been added

Instructions for Forms 1098-E and 1098-T

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to report the purchase of service credits under a governmental

Instructions for Forms 1099-A and 1099-C

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qualified defined benefit pension plan under section 403(b) or

Instructions for Form 1099-B

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457(b).

Instructions for Form 1099-CAP

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Instructions for Form 1099-DIV

Disclaimer of an IRA account balance. Revenue Ruling

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Instructions for Form 1099-G

2005-36 provides for the qualified disclaimer of all or some of

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Instructions for Form 1099-H

an IRA account balance under certain conditions.

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Instructions for Forms 1099-INT and 1099-OID

Certain Roth IRA conversions. Regulations section

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Instructions for Form 1099-LTC

1.408A-4T discusses how to determine the fair market value of

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Instructions for Form 1099-MISC

an individual retirement annuity described in section 408(b) that

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Instructions for Form 1099-PATR

is converted to a Roth IRA.

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Instructions for Form 1099-Q

Box 2a. Taxable amount. Reporting instructions have been

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Instructions for Forms 1099-R and 5498

changed for distributions under section 408(d)(5).

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Instructions for Form 1099-S

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Also, for transactions not reported on Form 1099-R (for

Instructions for Forms 1099-SA and 5498-SA

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example, the reporting of rollovers or RMD amounts), see

Instructions for Form 5498-ESA

Proposed Regulations sections 1.402(g)-1, 1.402A-1, 1.402A-2,

See How To Get Forms and Publications on page GEN-16.

and 1.403(b)-7.

Guide to Information Returns

Distribution of designated Roth account contributions.

Section 402A, which was added by the Economic Growth and

See the chart on pages GEN-18 and GEN-19 for a brief

Tax Reconciliation Act of 2001, provides that a participant in a

summary of information return reporting rules.

section 401(k) plan or a section 403(b) plan that includes a

Use Form 1096 To Send Forms to the IRS

Roth contribution program may elect to make designated Roth

account contributions to the plan or program in lieu of elective

You must send Copies A of all paper Forms 1099, 1098, 5498,

deferrals. Designated Roth account contributions are reported

and W-2G to the IRS with Form 1096, Annual Summary and

on the participant’s Form W-2. Designated Roth account

Transmittal of U.S. Information Returns. Instructions for

distributions are reported separately to the participant on Form

completing Form 1096 are contained on Form 1096. Also see

1099-R. A new distribution code has been added to report

part E on page GEN-4.

these distributions, Code B — Designated Roth account

Reporting Backup Withholding on Forms 1099

distribution. Other rules relating to designated Roth accounts

and W-2G

have been added throughout the instructions as applicable.

If you backup withhold on a payment, you must file the

Guide to Distribution Codes. In addition to new Code B,

appropriate Form 1099 or Form W-2G with the IRS and furnish

distribution codes 1 and 2 have been revised for withdrawals by

a statement to the recipient to report the amount of the

qualified reservists and certain public safety employees,

payment and the amount withheld. This applies even though

respectively, based on provisions in the Pension Protection Act

the amount of the payment may be below the normal threshold

of 2006.

for filing Form 1099 or Form W-2G. See part N on page

Form 5498. The following changes have been made to the

GEN-11.

Specific Instructions for Form 5498.

Substitute Statements to Recipients

Account closure. Instructions for the reporting of an

account closure have been added to the discussion of an IRA

If you are using a substitute form to furnish statements to

revocation.

recipients (generally Copy B), be sure your substitute

Contributions. A caution has been added to remind filers

statements comply with the rules in Pub. 1179, General Rules

that Form 5498 is required to be filed even after required

and Specifications for Substitute Forms 1096, 1098, 1099,

minimum distributions or other payments have started.

5498, W-2G, and 1042-S. Pub. 1179, which is revised annually,

explains the requirements for format and content of substitute

Special reporting for U.S. Armed Forces in designated

statements to recipients. If you are using a substitute form to

combat zones. Section 2 of the Heroes Earned Retirement

furnish information to recipients, it must comply with the

Opportunities (HERO) Act of 2006 amended section 219(f) and

requirements in Pub. 1179. See part M. Statement to

allows combat pay that is excluded under section 112 to be

Recipients on page GEN-9 for additional information.

included in compensation for determining the amounts that may

be contributed to both traditional and Roth IRAs. These rules

All substitute statements to recipients must contain

will be applied retroactively to allow contributions for tax years

the tax year, form number, and form name prominently

2004 and 2005. See page R-16 for the special reporting rules.

displayed together in one area of the statement. For

CAUTION

example, they could be shown in the upper right part of the

statement.

Items You Should Note

Taxpayer Identification Number (TIN) Matching

Photographs of Missing Children

TIN Matching allows a payer or authorized agent who is

The Internal Revenue Service is a proud partner with the

required to file Forms 1099-B, DIV, INT, MISC, OID, and/or

National Center for Missing and Exploited Children.

PATR, which report income subject to backup withholding, to

Photographs of missing children selected by the Center may

match TIN and name combinations with IRS records before

appear in instructions on pages that would otherwise be blank.

submitting the forms to the IRS. TIN Matching is one of the

You can help bring these children home by looking at the

e-services products that is offered, and is accessible through

GEN-2

Instructions For Forms 1099-Sa And 5498-Sa - 2006 Page 6

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