Instructions For Form 1099-Ltc - 2018

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2018
Department of the Treasury
Internal Revenue Service
Instructions for Form
1099-LTC
Long-Term Care and Accelerated Death Benefits
Future Developments
Viatical Settlement Providers
A viatical settlement provider is any person who:
For the latest information about developments related to
Form 1099-LTC and its instructions, such as legislation
1. Is regularly engaged in the trade or business of
enacted after they were published, go to
IRS.gov/
purchasing or taking assignments of life insurance contracts
Form1099LTC.
on the lives of terminally or chronically ill individuals, and
Reminder
2. Is licensed in the state where the insured lives. If
licensing is not required in the state, the provider must meet
In addition to these specific instructions, you should also use
other requirements (including those below) depending on
the 2018 General Instructions for Certain Information
whether the insured is terminally or chronically ill.
Returns. Those general instructions include information
a. If the insured is terminally ill, the provider must meet
about the following topics.
the requirements of sections 8 and 9 of the Viatical
Who must file (nominee/middleman).
Settlements Model Act of the National Association of
When and where to file.
Insurance Commissioners (NAIC), relating to disclosure and
Electronic reporting requirement.
general rules. The provider must also meet the requirements
Corrected and void returns.
of the Model Regulations of the NAIC for evaluating the
Statements to recipients.
reasonableness of amounts paid in viatical settlement
Taxpayer identification numbers (TINs).
transactions with terminally ill individuals.
Backup withholding.
b. If the insured is chronically ill, the provider must meet
Penalties.
requirements similar to those of sections 8 and 9 of the
Other general topics.
Viatical Settlements Model Act of the NAIC and must also
You can get the General Instructions for Certain
meet any standards of the NAIC for evaluating the
Information Returns at
IRS.gov/Form1099
or go to
IRS.gov/
reasonableness of amounts paid in viatical settlement
Form1099LTC.
transactions with chronically ill individuals.
However, if a state enacts a licensing requirement
Specific Instructions
but does not permit viatical settlement providers to
!
File Form 1099-LTC if you paid any long-term care benefits.
engage in business until the licenses are granted, the
CAUTION
provider will not be considered as licensed under section
Online fillable form. Due to the very low volume of paper
101(g)(2)(B)(i)(I). See Rev. Rul. 2002-82, which is on
Forms 1099-LTC received and processed by the IRS each
page 978 of Internal Revenue Bulletin 2002-51 at
year, this form has been converted to an online fillable
IRS.govgov/pub/irs-irbs/irb02-51.pdf.
format. You may fill out the form, found online at
IRS.gov/
Form1099LTC, and send Copy B to the recipient. For filing
with the IRS, follow the applicable procedures for filing
Qualified Long-Term Care Insurance Contract
electronically if you are filing 250 or more forms. For Form
A contract issued after 1996 is a qualified long-term care
1099-LTC only, If you are filing this form on paper, you may
insurance contract if it meets the requirements of section
send in the black-and-white Copy A with Form 1096 that you
7702B, including the requirement that the insured must be a
print from the IRS website.
chronically ill individual (see Chronically Ill Individual, later). A
Long-Term Care Benefits
contract issued before 1997 generally is treated as a
qualified long-term care insurance contract if it met state law
“Long-term care benefits” means:
requirements for long-term care insurance contracts and it
1. Any payments made under a product that is
has not been materially changed.
advertised, marketed, or offered as long-term care insurance
(whether qualified or not); and
Accelerated Death Benefits
2. Accelerated death benefits (excludable in whole or in
An accelerated death benefit is any amount paid under a life
part from gross income under section 101(g)) paid under a
insurance contract for an insured individual who is terminally
life insurance contract or paid by a viatical settlement
or chronically ill. It also includes any amount paid by a viatical
provider.
settlement provider for the sale or assignment of a death
benefit under a life insurance contract for a chronically or
Who Must File
terminally ill individual.
Payers of long-term care benefits who must file Form
1099-LTC include insurance companies, governmental units,
and viatical settlement providers.
Oct 03, 2017
Cat. No. 27981Y

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