Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, And W-2g - General Instructions For Certain Information Returns - 2018 Page 3

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own reportable amounts as they usually would. For more
filed on a combined basis under Rev. Proc. 99-50. The
information and the rules that apply to filing combined
statement must:
Forms 1042-S, see Rev. Proc. 99-50, which is available
1. Include the predecessor's and successor's names,
on page 757 of Internal Revenue Bulletin 1999-52 at
addresses, telephone numbers, EINs, and the name and
IRS.gov/pub/irs-irbs/irb99-52.pdf.
telephone number of the person responsible for preparing
The combined reporting procedure is available when all
the statement;
the following conditions are met.
2. Reflect separately the amount of federal income tax
1. The successor acquires from the predecessor
withheld by the predecessor and by the successor for
substantially all the property (a) used in the trade or
each type of form being filed on a combined basis (for
business of the predecessor, including when one or more
example, Form 1099-R or 1099-MISC); and
corporations are absorbed by another corporation under a
3. Be sent separately from Forms 1097, 1098, 1099,
merger agreement under which the surviving corporation
3921, 3922, 5498, and W-2G by the forms' due date to:
becomes the owner of all the assets and assumes all the
Internal Revenue Service, Information Returns Branch,
liabilities of the absorbed corporation(s), or (b) used in a
230 Murall Drive, Mail Stop 4360, Kearneysville, WV
separate unit of a trade or business of the predecessor.
25430. Do not send Form 1042-S statements to this
2. The predecessor is required to report amounts,
address. Instead, use the address given in the
including any withholding, on information returns for the
Instructions for Form 1042-S; see Rev. Proc. 99-50.
year of acquisition for the period before the acquisition.
Qualified settlement funds. A qualified settlement fund
3. The predecessor is not required to report amounts,
must file information returns for distributions to claimants if
including withholding, on information returns for the year
any transferor to the fund would have been required to file
of acquisition for the period after the acquisition.
if the transferor had made the distributions directly to the
Combined reporting agreement. The predecessor
claimants.
and the successor must agree on the specific forms to
For distributions to transferors, a fund is subject to the
which the combined reporting procedure applies and that
information reporting requirements of sections 6041 and
the successor assumes the predecessor's entire
6041A and may be required to file Form 1099-MISC. For
information reporting obligations for these forms. The
payments made by the fund on behalf of a claimant or
predecessor and successor may agree to:
transferor, the fund is subject to these same rules and
1. Use the combined reporting procedure for all Forms
may have to file Form 1099-MISC for the payment to a
1097, 1098, 1099, 3921, 3922, 5498, and W-2G; or
third party. For information reporting purposes, a payment
made by the fund on behalf of a claimant or transferor is
2. Limit the use of the combined reporting procedure
considered a distribution to the claimant or transferor and
to (a) specific forms, or (b) specific reporting entities,
is also subject to information reporting requirements.
including any unit, branch, or location within a particular
business entity that files its own separate information
The same filing requirements, exceptions, and
returns. For example, if the predecessor's and
thresholds may apply to qualified settlement funds as
successor's only compatible computer or recordkeeping
apply to any other payer. That is, the fund must determine
systems are their dividends paid ledgers, they may agree
the character of the payment (for example, interest, fixed
to use the combined reporting procedure for Forms
or determinable income, or gross proceeds from broker
1099-DIV only. Similarly, if the only compatible systems
transactions) and to whom the payment is made (for
are in their midwest branches, they may agree to use the
example, corporation or individual).
combined reporting procedure for only the midwest
For more information, see Regulations section
branches.
1.468B-2(l). Also, see Treasury Decision (TD) 9249,
2006-10 I.R.B. 546, available at
IRS.gov/irb/2006-10_IRB/
Combined reporting procedure. On each Form
ar05.html. TD 9249 relates to escrow and similar funds.
1097, 1098, 1099, 3921, 3922, 5498, and W-2G filed by
the successor, the successor must combine the
Payments to foreign persons. See the Instructions for
predecessor's (before the acquisition) and successor's
Form 1042-S, relating to U.S. source income of foreign
reportable amounts, including any withholding, for the
persons, for reporting requirements relating to payments
acquisition year and report the aggregate. For
to foreign persons.
transactional reporting, the successor must report each of
Widely held fixed investment trusts (WHFITs).
the predecessor's transactions and each of its own
Trustees and middlemen of WHFITs are required to report
transactions on the appropriate form. The successor may
all items of gross income and proceeds on the appropriate
include with the form sent to the recipient additional
Form 1099. For the definition of a WHFIT, see
information explaining the combined reporting.
Regulations section 1.671-5(b)(22). A tax information
For purposes of the combined reporting procedure, the
statement that includes the information provided to the
sharing of TINs and other information obtained under
IRS on Forms 1099, as well as additional information
section 3406 for information reporting and backup
identified in Regulations section 1.671-5(e), must be
withholding purposes does not violate the confidentiality
furnished to trust interest holders (TIHs).
rules in section 3406(f).
Items of gross income (including OID) attributable to
Statement required. The successor must file a
the TIH for the calendar year including all amounts of
statement with the IRS indicating the forms that are being
income attributable to selling, purchasing, or redeeming of
a trust holder's interest in the WHFIT must be reported.
-3-
Gen. Instr. for Certain Info. Returns (2018)

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