Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, And W-2g - General Instructions For Certain Information Returns - 2018 Page 20
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30Civil Damages for Fraudulent Filing of
For more information on WHFITs, see
Widely held fixed
investment trusts
(WHFITs), earlier.
Information Returns (Section 7434)
If you willfully file a fraudulent information return for
S. Special Rules for Reporting
payments you claim you made to another person, that
Payments Made Through Foreign
person may be able to sue you for damages. You may
have to pay $5,000 or more.
Intermediaries and Foreign
P. Payments to Corporations and
Flow-Through Entities on Form 1099
Partnerships
If you are the payer and have received a Form W-8IMY
from a foreign intermediary or flow-through entity, follow
Generally, payments to corporations are not reportable.
the instructions for completing Form 1099, later.
See, for example, Regulations section 1.6049-4(c)(1)(ii).
However, you must report payments to corporations for
Definitions
the following.
Foreign intermediary (FI). An FI is any person who is
Medical and health care payments (Form 1099-MISC).
not a U.S. person and acts as a custodian, broker,
Withheld federal income tax or foreign tax.
nominee, or otherwise as an agent for another person,
Barter exchange transactions (Form 1099-B).
regardless of whether that other person is the beneficial
Broker and barter transactions for an S corporation
owner of the amount paid, a flow-through entity, or
(Form 1099-B).
another intermediary. The intermediary can be a qualified
Substitute payments in lieu of dividends and
intermediary or a nonqualified intermediary.
tax-exempt interest (Form 1099-MISC).
Qualified intermediary (QI). A QI is a person that is a
Acquisitions or abandonments of secured property
party to a withholding agreement with the IRS (described
(Form 1099-A).
in Regulations section 1.1441-1(e)(5)(iii)) and is:
Cancellation of debt (Form 1099-C).
A foreign financial institution (other than a U.S. branch
Payments of attorneys' fees and gross proceeds paid to
of an FFI) that is a participating FFI (including a reporting
attorneys (Form 1099-MISC).
Model 2 FFI), a registered deemed-compliant FFI
Fish purchases for cash (Form 1099-MISC).
(including an FFI treated as a deemed-compliant FFI
Credits and interest for qualified tax credit bonds
under an applicable IGA subject to due diligence and
reported on Forms 1097-BTC and 1099-INT.
reporting requirements similar to those applicable to a
Merchant card and third-party network payments (Form
registered deemed-compliant FFI under Regulations
1099-K).
section 1.1471-5(f)(1), including the requirement to
Federal executive agency payments for services (Form
register with the IRS), or any other category of FFI
1099-MISC). For additional reporting requirements, see
identified in the QI agreement,
Rev. Rul. 2003-66 on page 1115 of Internal Revenue
A foreign person that is a home office or has a branch
Bulletin 2003-26 at IRS.gov/pub/irs-irbs/irb03-26.pdf.
that is an eligible entity (as described in Regulations
Reporting generally is required for all payments to
section 1.1441-1(e)(6)(ii), without regard to the
partnerships. For example, payments of $600 or more
requirement that the person be a QI),
made in the course of your trade or business to an
A foreign branch or office of a U.S. financial institution
architectural firm that is a partnership are reportable on
or a foreign branch or office of a U.S. clearing
Form 1099-MISC.
organization, or
A foreign entity not described above that the IRS
Q. Earnings on Any IRA, Coverdell
accepts as a QI.
For details on QI agreements, see Rev. Proc. 2017-15,
ESA, ABLE Account, Archer MSA, or
2017-03 I.R.B. 437, available at
IRS.gov/irb/
HSA
2017-03_IRB#RP-2017-15
Nonqualified intermediary (NQI). An NQI is any
Generally, income earned in any IRA, Coverdell ESA,
intermediary that is not a U.S. person and that is not a QI.
ABLE account, Archer MSA, or HSA, such as interest or
dividends, is not reported on Forms 1099. However,
Foreign flow-through entity (FTE). An FTE is a foreign
distributions from such arrangements or accounts must be
partnership (other than a withholding foreign partnership),
reported on Form 1099-R, 1099-Q, 1099-QA, or 1099-SA.
a foreign simple trust or foreign grantor trust (other than a
withholding foreign trust), or, for payments for which a
R. Certain Grantor Trusts
reduced rate of withholding is claimed under an income
tax treaty, any entity to the extent the entity is considered
Certain grantor trusts (other than WHFITs) may choose to
to be fiscally transparent under section 894 with respect to
file Forms 1099 rather than a separate statement attached
the payment by an interest holder's jurisdiction.
to Form 1041, U.S. Income Tax Return for Estates and
Withholding foreign partnership or withholding
Trusts. If you have filed Form 1041 for a grantor trust in
foreign trust. A withholding foreign partnership or
the past and you want to choose the Form 1099 filing
withholding foreign trust is a foreign partnership or a
method for 2018, you must have filed a final Form 1041
foreign simple or grantor trust that has entered into a
for 2017. To change reporting method, see Regulations
withholding agreement with the IRS in which it agrees to
section 1.671-4(g) and the Instructions for Form 1041 and
assume primary withholding responsibility for all
Schedules A, B, D, G, I, J, and K-1.
-20-
Gen. Instr. for Certain Info. Returns (2018)
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