Acquisition or Abandonment of Secured Property

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Page 1 of 20 General Instructions for Forms 1099, 1098, 5498, and W-2G13:42 - 12-FEB-2008
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2008

Department of the Treasury
Internal Revenue Service

General Instructions for
Forms 1099, 1098, 5498,
and W-2G
Section references are to the Internal Revenue Code unless
otherwise noted.
Contents
Page
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Items You Should Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
A. Who Must File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
B. Other Information Returns . . . . . . . . . . . . . . . . . . . . . . . . 4
C. When To File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
D. Where To File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
E. Filing Returns With the IRS . . . . . . . . . . . . . . . . . . . . . . . 5
F. Electronic Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
G. Paper Document Reporting . . . . . . . . . . . . . . . . . . . . . . 6
H. Corrected Returns on Paper Forms . . . . . . . . . . . . . . . . . 6
Filing Corrected Returns on Paper Forms . . . . . . . . . . . . . 7
I. Void Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
J. Recipient Names and Taxpayer Identification
Numbers (TINs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
K. Filer’s Name, Identification Number, and Address . . . . . . . 9
L. Account Number Box on Forms . . . . . . . . . . . . . . . . . . . . 9
M. Statements to Recipients (Borrowers, Debtors,
Donors, Insureds, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . 9
N. Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
O. Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
P. Payments to Corporations and Partnerships . . . . . . . . . . 13
Q. Earnings on any IRA, Coverdell ESA, Archer MSA,
or HSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
R. Certain Grantor Trusts . . . . . . . . . . . . . . . . . . . . . . . . . 13
S. Special Rules for Reporting Payments Made
Through Foreign Intermediaries and Foreign
Flow-Through Entities on Form 1099 . . . . . . . . . . . . . . . 13
T. How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Guide to Information Returns . . . . . . . . . . . . . . . . . . . . . . 17
Types of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Reminders
Electronic Filing. E-filers are reminded that using the FIRE
system requires following the specifications contained in Pub.
1220, Specifications for Filing Forms 1098, 1099, 5498, and
W-2G Electronically. Also, the IRS does not provide a fill-in form
option. See part F on page 5 for information on e-file.
Payee. Throughout these instructions the term “payee”
means any recipient of Forms 1099, 1098, 5498, or W-2G
including borrowers, debtors, donors, insureds, participants,
policyholders, students, transferors, and winners on
certain forms.
Where to file. All information returns filed on paper will be filed
with only two Internal Revenue Service Centers: Austin, TX,
and Kansas City, MO. See part D on page 4 and Form 1096,
Annual Summary and Transmittal of U.S. Information Returns.

What’s New
See the specific form instructions for more information

TIP on the changes listed below.

General Instructions for Forms 1099, 1098, 5498, and W-2G.
Where to file. All information returns filed on paper must
use a 3-line mailing address. See part D on page 4.

Use of magnetic media. All references to magnetic media
have been removed from these instructions, all specific
instructions, and forms to which these instructions refer.
Enterprise Computing Center – Martinsburg (ECC – MTB) will no
longer accept tape cartridges for returns filed after December 1,
2008. After that date, electronic filing will be the only acceptable
method for filing information returns with ECC – MTB. See part F
on page 5.
Instructions for Form 1098. The Mortgage Forgiveness Debt
Relief Act of 2007 extended the requirement to report in box 4
qualified mortgage insurance premiums paid by the borrower
through December 31, 2010.
Instructions for Form 1098-C. Do not file Form 1098-C at the
Internal Revenue Service Center at Ogden, UT, after December
31, 2007. All forms filed after December 31, 2007, should be
filed at either the Austin, TX, center or the Kansas City, MO,
center, depending on the location of your principal business,
office, agency, or legal residence. See part D on page 4.
Instructions for Forms 1099-A and 1099-C. Form 1099-C is
not to be filed when fraudulent debt is cancelled due to identity
theft and the debtor is not liable for the debt. Form 1099-C is to
be used only for cancellations of debts for which the debtor is
personally liable.
Form 1099-CAP. We have removed the box 6 checkbox from
Form 1099-CAP. Under Regulations section 1.367(a)-3
nonrecognition of losses is required for all reportable
transactions from corporate inversions, making the checkbox
unnecessary.
Instructions for Form 1099-CAP. A TIP has been added
under Who Must File to inform brokers of the sources of readily
available public information for use in determining the broker’s
filing requirement. The instructions for box 6 have been
removed.
Form 1099-DIV. Box 7 may be blank as RICs no longer have
to report this information to recipients.
Instructions for Form 1099-DIV.
• The capital gains rate for qualified dividends has generally
been reduced to zero after December 31, 2007, for individuals
whose other income is taxed at the 10% or 15% rate.
• RICs meeting the requirements under final Regulations
section 1.853-4 have new reporting requirements for boxes 6
and 7.
Instructions for Form 1099-MISC. Revenue Ruling 2007-69
provides that payments made by the U.S. Department of
Veterans Affairs under the compensated work therapy program
are exempt from federal income tax as veterans’ benefits and
are no longer required to be reported on Form 1099-MISC.
Instructions for Form 1099-PATR.
• The Caution for box 6 has been revised to reflect the
allowance under new final Regulations section 1.199-6. The
allowance of the deduction at the entity level changes the tax
treatment of the cooperative’s deduction under section 1382.
• Section 8211(a) of the U.S. Troop Readiness, Veterans Care,
Katrina Recovery, and Iraq Accountability Act extended the
work opportunity credit through August 31, 2011.
• In the instructions for Box 10. Other Credits and Deductions,
the reference to Form 8861, Welfare-To-Work Credit, has been
deleted from the list of pass-through credits due to its repeal as
a separate credit. Instead, qualified second-year wages are
reported on Form 5884, Work Opportunity Credit. Also, the

Cat. No. 27976F

Page 16 of 20

General Instructions for Forms 1099, 1098, 5498, and W-2G 13:42 - 12-FEB-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

1098-C . . .
1098-E . . . .
1098-T . . . .
1099-A . . . .
1099-B . . . .
1099-C . . .
1099-CAP* .
1099-DIV . .
1099-G . . .
1099-H . . .
1099-INT . .
1099-LTC . .
1099-MISC .
1099-OID . .
1099-PATR .
1099-Q . . .
1099-R . . .
1099-S . . . .
1099-SA . . .
5498 . . . . .
5498-ESA . .
5498-SA . . .
W-2G . . . . .

Privacy Act and Paperwork Reduction Act Notice. We ask
for the information on these forms to carry out the Internal
Revenue laws of the United States. You are required to give us
the information. We need it to figure and collect the right
amount of tax.
Sections 170(f)(12),199, 220(h), 223, 408, 408A, 529, 530,
6041, 6041A, 6042, 6043, 6044, 6045, 6047, 6049, 6050A,
6050B, 6050D, 6050E, 6050H, 6050J, 6050N, 6050P, 6050Q,
6050R, 6050S, 6050T, and their regulations require you to file
an information return with the IRS and furnish a statement to
recipients. Section 6109 and its regulations require you to
provide your taxpayer identification number on what you file.
Routine uses of this information include giving it to the
Department of Justice for civil and criminal litigation, and to
cities, states, and the District of Columbia for use in
administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal and
state agencies to enforce federal nontax criminal laws, or to
federal law enforcement and intelligence agencies to combat
terrorism. If you fail to provide this information in a timely
manner, you may be subject to penalties.
You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless
the form displays a valid OMB control number. Books or
records relating to a form or its instructions must be retained as
long as their contents may become material in the
administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
The time needed to complete and file the following forms will
vary depending on individual circumstances. The estimated
average times are:
1096 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1098 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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15 minutes
7 minutes
13 minutes
9 minutes
20 minutes
10 minutes
11 minutes
18 minutes
11 minutes
18 minutes
13 minutes
13 minutes
16 minutes
12 minutes
15 minutes
11 minutes
18 minutes
8 minutes
8 minutes
12 minutes
7 minutes
10 minutes
18 minutes

* Privacy Act does not pertain to this form.

If you have comments concerning the accuracy of these time
estimates or suggestions for making these forms simpler, we
would be happy to hear from you. You can write to the Internal
Revenue Service, Tax Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send these forms to this
address. Instead, see part D on page 4.

13 minutes
7 minutes

-16-