Interest Income

Department of the Treasury
Internal Revenue Service

09
General Instructions for Forms
1099, 1098, 3921, 3922, 5498,
and W-2G

Cat. No. 50251Z
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Contents
Regular Large Print
Page
Page
What’s New
1
5
Reminders
2
11
Items You Should Note
2
12
A. Who Must File
3
16
B. Other Information Returns
4
23
C. When To File
4
24
D. Where To File
5
27
E. Filing Returns With the IRS
5
29
F. Electronic Reporting
5
31
G. Paper Document Reporting
6
36
H. Corrected Returns on
6
39
Paper Forms
Filing Corrected Returns on
7
41
Paper Forms
I. Void Returns
8
44
J. Recipient Names and
Taxpayer Identification
8
45
Numbers (TINs)
K. Filer’s Name, Identification
9
50
Number, and Address
L. Account Number Box on
9
51
Forms
Topic

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Contents, Continued
Regular Large Print
Page
Page

Topic
M. Statements to Recipients
(Borrowers, Debtors,
Donors, Insureds, etc.)
N. Backup Withholding
O. Penalties
P. Payments to Corporations
and Partnerships
Q. Earnings on any IRA,
Coverdell ESA, Archer
MSA, or HSA
R. Certain Grantor Trusts
S. Special Rules for Reporting
Payments Made Through
foreign Intermediate and
Foreign Flow-Through
Entities on form 1099
T. How To Get Tax Help
Guide to Information Returns
Types of Payments
Index

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9

52

11
12

66
73

13

79

14

80

14

80

14

81

15
17
19
20

89
97
99
103

Section references are to the Internal Revenue Code
unless otherwise noted.

What’s New
See the specific form instructions for
more information on the changes listed
below.
General Instructions for Forms 1099, 1098, 3921,
3922, 5498, and W-2G.
New title for the General Instructions. The title
of the General Instructions has been changed to
reflect the addition of Forms 3921 and 3922
beginning in 2009.
At the time these instructions went to print,
final regulations had not be issued for
reporting Forms 3921 and 3922 and their
separate instructions. These general instructions will
be re-released when final regulations are issued.
Extension of due date for statements sent to
recipients. The due date for furnishing statements to
recipients for Forms 1099-B, 1099-S, and 1099MISC (if amounts are reported in boxes 8 or 14) has
been extended to February 15.
Guide to Information Returns. Forms 5471,
5472, 8027, 8300, 8308, 104, 926, and TDF 90-22.1,
not affiliated with these general instructions,
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have been removed from the guide on pages 17
and 18. Forms 3921 and 3922 have been added.
Form 1098-E. For loans made before September 1,
2004, box 2 on the Form 1098-E should be checked if
the amount in box 1 of the form does not include loan
origination fees and/or capitalized interest. This is a
reverse of the 2008 instructions for the completion of
box 2.
Form 1099-C. The form has been revised, moving
“Debt description” from box 5 to an enlarged box 4.
Box 5 now contains 2 checkboxes to indicate whether
the borrower was personally liable for repayment of
the debt.
Creditor’s phone number. A central phone
number for debtors to use to contact a person
having knowledge of a canceled debt is now
required information in the Creditor’s information
box.
Instructions for Form 1099-C The number of entities
who must report cancellation of debt after the
expiration of the nonpayment testing period has been
reduced. The order under “Who Must File” has been
changed.
Form 1099-DIV. Payments of section 404(k)
dividends directly from a corporation to participants in
an employee stock ownership plan (ESOP), or their
beneficiaries, must be reported on Form 1099-DIV.
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Payments of section 404(k) dividends from the ESOP
to the participants continue to be reported on Form
1099-R.
If a regulated investment company (RIC) or a real
estate investment trust (REIT) holds any qualified
tax credit bonds, the credit determined from tax
credit bonds is interest and is included in gross
income as a distribution to the shareholder or
beneficiary. Attach a statement to Form 1099-DIV.
Form 1099-G. There is a new box 9 for reporting
market gain associated with the repayment of
Commodity Credit Corporation (CCC) loans.
Instructions for Forms 1099-INT and 1099-OID.
The credit allowable to holders of the following tax
credit bonds is treated as interest and reported in
box 1 of Form 1099-INT.
• Qualified forestry conservation bonds issued after
May 22, 2008.
• Qualified energy conservation bonds.
• Qualified zone academy bonds.
• Midwestern tax credit bonds.
Form 1099-MISC. The following reporting changes
have been made to Form 1099-MISC.
Military differential pay. Payments made after
2008 to former employees while they are on active
duty for more than 30 days in the Armed Forces or
other uniformed services are not reported on Form
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1099-MISC. Report those payments on Form W-2
instead. Also, see the instructions for box 3.
Death benefits. Death benefits from nonqualified
deferred compensation plans paid to the estate or
beneficiary of a deceased employee are now
reported on Form 1099-MISC instead of Form
1099-R. Death benefit payments from qualified plans
continue to be reported on Form 1099-R.
Payments to individuals in medical research
studies. Payments made to individuals in medical
research studies are reported in box 3.
Box 15a. Payers are not required to report
deferrals under nonqualified deferred compensation
plans under section 409A in box 15a.
Instructions for Form 1099-PATR.
• A new tax credit is allowed for cellulosic biofuel
produced after 2008. For more information, see
section 40 and Form 6478.
• A new tax credit is allowed for qualified agricultural
chemicals security expenses paid or incurred after
May 22, 2008. For more information, see section 45O
and Form 8931.
• The Indian employment credit has been extended
through December 31, 2009.
• The energy efficient appliance credit has been
revised and extended for eligible products produced
through December 31 2010.
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Instructions for Forms 1099-R and 5498.
Form 1099-R.
• Generally, box 2a should be left blank when
reporting “Taxable distributions from traditional or SEP
IRAs. Box 2b, amount not determined” should be
checked.
• Corrective distributions of excess contributions and
excess aggregate contributions are taxable in the
year distributed (except for designated Roth
contributions).
• Distributions from a nonqualified deferred
compensation (NQDC) plan to an estate or
beneficiary of a deceased plan participant are no
longer reported on Form 1099-R. They should be
reported on Form 1099-MISC.
• Qualified distributions from IRAs for charitable
purposes may be made through December 31, 2009.
• Distributions of dividends from an employee stock
ownership plan (ESOP) under section 404(k) to
participants or their beneficiaries are to be reported
on Form 1099-R. All other distributions from an ESOP
must be reported on a separate Form 1099-R.
• Rev. Proc. 2008-24 was issued to address the tax
treatment of certain tax-free exchanges of annuity
contracts under sections 72 and 1035. The interim
guidance provided by Notice 2003-51 is superseded.
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• The following changes were made to the Guide to
Distribution Codes.
1. For Distribution Code 1, references to the
qualified reservist distribution under section
72(t)(2)(G) have been made permanent due to P.L.
110-245, sec. 107.
2. New Distribution Code U, for distributions under
IRC 404(k), was added to the table.
3. Distribution Codes B and U are a valid
combination.
Form 5498.
• The form has been enlarged and reformatted to 2 to
a page instead of 3 to a page to provide additional
boxes for reporting information formerly reported in
the blank box next to box 10. Instructions have been
added for new boxes 12a through 1 5b.
• The words “presidentially declared disaster areas”
have been changed to “federally declared disaster
areas.”
• P.L. 110-245, sec. 109, allows recipients of military
death gratuities and servicemembers’ group life
insurance (SGLI) payments to contribute all or a
portion of the amounts received to a Roth IRA.
• P.L. 110-343, Division C, sec. 504, allows recipients
of qualified settlement income received in connection
with the Exxon Valdez litigation to contribute all or a
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portion of the amount received to a traditional or Roth
IRA.
• P.L. 110-458, sec. 125, allows all or a portion of
certain payments made to qualified airline employees
to be contributed to a Roth IRA.
• P.L. 110-458, sec. 201, suspends required
minimum distributions (RMDs) for 2009 for defined
contribution plans and IRAs.
Instructions for Forms 3921 and 3922. Revised
Forms 3921 and 3922 and their instructions are
expected to be issued for reporting years beginning
subsequent to 2008 after final regulations have been
issued.
Instructions for Form 5498-ESA. Rollover
contributions to a Coverdell ESA include contributions
of military death gratuity payments.

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, 3921, 3922, 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,
3921, 3922, 5498, or W-2G including borrowers,
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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 5 and Form 1096, Annual Summary and
Transmittal of U.S. Information Returns.

Items You Should Note
Photographs of Missing Children
The Internal Revenue Service is a proud partner with
the National Center for Missing and Exploited
Children. Photographs of missing children selected by
the Center may appear in instructions on pages that
would otherwise be blank. You can help bring these
children home by looking at the photographs and
calling 1-800-THE-LOST (1-800-843-5678) if you
recognize a child.
Available Products
In addition to these general instructions, which contain
general information concerning Forms 1099, 1098,
3921, 3922, 5498, and W-2G, we provide specific
form instructions as separate products. Get the
instructions you need for completing a specific form
from the following list of separate instructions.
• Instructions for Forms W-2G and 5754
• Instructions for Form 1098
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Instructions for Form 1098-C
Instructions for Forms 1098-E and 1098-T
Instructions for Forms 1099-A and 1099-C
Instructions for Form 1099-B
Instructions for Form 1099-CAP
Instructions for Form 1099-DIV
Instructions for Form 1 099-G
Instructions for Form 1099-H
Instructions for Forms 1099-INT and 1099-OID
Instructions for Form 1099-LTC
Instructions for Form 1099-MISC
Instructions for Form 1099- PATR
Instructions for Form 1099-Q
Instructions for Forms 1099-R and 5498
Instructions for Form 1099-S
Instructions for Forms 1099-SA and 5498-SA
Instructions for Forms 3921 and 3922
Instructions for Form 5498-ESA
See How To Get Forms, Publications, and Other
Assistance on page 15.
Guide to Information Returns
See the chart on pages 17 and 18 for a brief
summary of information return reporting rules.

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Use Form 1096 To Send Paper Forms to the IRS
You must send Copies A of all paper Forms 1099,
1098, 3921, 3922, 5498, and W-2G to the IRS with
Form 1096, Annual Summary and Transmittal of U.S.
Information Returns. Instructions for completing Form
1096 are contained on Form 1096. Also see part E on
page 5.
Reporting Backup Withholding on Forms 1099
and W-2G
If you backup withhold on a payment, you must file
the appropriate Form 1099 or Form W-2G with the
IRS and furnish a statement to the recipient to report
the amount of the payment and the amount withheld.
This applies even though the amount of the payment
may be below the normal threshold for filing Form
1099 or Form W-2G. For how to report backup
withholding, see part N on page 11.
Substitute Statements to Recipients
If you are using a substitute form to furnish
information statements to recipients (generally Copy
B), be sure your substitute statements comply with
the rules in Pub. 1179, General Rules and
Specifications for Substitute Forms 1096, 1098, 1099,
3921, 3922, 5498, W-2G, and 1042-S. Pub. 1179,
which is revised annually, explains the requirements
for format and content of substitute statements to
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recipients. See part M on page 9 for additional
information.
All substitute statements to recipients must
contain the tax year, form number, and form
name prominently displayed together in one
area of the statement. For example, they could be
shown in the upper right part of the statement.
Taxpayer Identification Number (TIN) Matching
TIN Matching allows a payer or authorized agent who
is required to file Forms 1099-B, DIV, INT, MISC,
OID, and/or PATR, which report income subject to
backup withholding, to match TIN and name
combinations with IRS records before submitting the
forms to the IRS. TIN Matching is one of the
e-services products that is offered and is accessible
through the IRS website. For program guidelines, see
Pub. 2108A, e-Services On-Line TIN Matching
Program, or go to www.irs.gov and enter keyword
“TIN matching” in the upper right corner. It is
anticipated that payers who validate the TIN and
name combinations before filing information returns
will receive fewer backup withholding (CP21 00) “B”
notices and penalty notices. E-services technical
support is available by calling 1-866-255-0654.

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A. Who Must File
See the separate specific instructions for each
form.
Nominee/middleman returns. Generally, if you
receive a Form 1099 for amounts that actually belong
to another person, you are considered a nominee
recipient. You must file a Form 1099 with the IRS (the
same type of Form 1099 you received) for each of the
other owners showing the amounts allocable to each.
You must also furnish a Form 1099 to each of the
other owners. File the new Form 1099 with Form
1096 with the Internal Revenue Service Center for
your area. On each new Form 1099, list yourself as
the “payer” and the other owner as the “recipient.” On
Form 1096, list yourself as the “filer.” A husband or
wife is not required to file a nominee return to show
amounts owned by the other. The nominee, not the
original payer, is responsible for filing the subsequent
Forms 1099 to show the amount allocable to each
owner.
Successor/predecessor reporting. A successor
business (a corporation, partnership, or sole
proprietorship) and a predecessor business (a
corporation, partnership, or sole proprietorship) may
agree that the successor will assume all or some of
the predecessor’s information reporting
responsibilities. This would permit the successor to
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file one Form 1099, 1098, 3921, 3922, 5498, or W-2G
for each recipient combining the predecessor’s and
successor’s reportable amounts, including any
withholding. If they so agree and the successor
satisfies the predecessor’s obligations and the
conditions described below, the predecessor does not
have to file the specified information returns for the
acquisition year. If the successor and predecessor do
not agree, or if the requirements described are not
met, the predecessor and the successor each must
file Forms 1099, 1098, 3921, 3922, 5498, and W-2G
for their own reportable amounts as they usually
would. For more information and the rules that apply
to filing combined Forms 1042-S, Foreign Person’s
U.S. Income Subject to Withholding, see Rev. Proc.
99-50, which is available on page 757 of Internal
Revenue Bulletin 1999-52 at www.irs.gov/pub/irsirbs/irb99-52.pdf.
The combined reporting procedure is available
when all the following conditions are met.
1. The successor acquires from the predecessor
substantially all the property (a) used in the trade or
business of the predecessor, including when one or
more corporations are absorbed by another
corporation under a merger agreement, or (b) used in
a separate unit of a trade or business of the
predecessor.
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2. The predecessor is required to report amounts,
including any withholding, on information returns for
the year of acquisition for the period before the
acquisition.
3. The predecessor is not required to report
amounts, including withholding, on information returns
for the year of acquisition for the period after the
acquisition.
Combined reporting agreement. The
predecessor and the successor must agree on the
specific forms to which the combined reporting
procedure applies and that the successor assumes
the predecessor’s entire information reporting
obligations for these forms. The predecessor and
successor may agree to:
1. Use the combined reporting procedure for all
Forms 1099, 1098, 3921, 3922, 5498, and W-2G, or
2. Limit the use of the combined reporting
procedure to (a) specific forms or (b) specific
reporting entities, including any unit, branch, or
location within a particular business entity that files its
own separate information returns. For example, if the
predecessor’s and successor’s only compatible
computer or recordkeeping systems are their
dividends paid ledgers, they may agree to use the
combined reporting procedure for Forms 1099-DIV
only. Similarly, if the only compatible systems are in
their midwest branches, they may agree to use the
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combined reporting procedure for only the midwest
branches.
Combined reporting procedure. On each Form
1099, 1098, 3921, 3922, 5498, and W-2G filed by
the successor, the successor must combine the
predecessor’s (before the acquisition) and
successor’s reportable amounts, including any
withholding, for the acquisition year and report the
aggregate. For transactional reporting on Form
1099-B, Proceeds From Broker and Barter Exchange
Transactions, the successor must report each of the
predecessor’s transactions and each of its own
transactions on each Form 1099-B; these same
reporting requirements apply to Form 3921, Exercise
of an Incentive Stock Option under Section 422(b),
and Form 3922, Transfer of Stock Acquired Through
an Employee Stock Purchase Plan under Section
423(c). The successor may include with the form sent
to the recipient additional information explaining the
combined reporting.
For purposes of the combined reporting
procedure, the sharing of TINs and other information
obtained under section 3406 for information reporting
and backup withholding purposes does not violate the
confidentiality rules in section 3406(f).
Statement required. The successor must file a
statement with the IRS indicating the forms that are
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being filed on a combined basis under Rev. Proc.
99-50. The statement must:
1. Include the predecessor’s and successor’s
names, addresses, telephone numbers, EINs, and the
name and telephone number of the person
responsible for preparing the statement.
2. Reflect separately the amount of federal income
tax withheld by the predecessor and by the successor
for each type of form being filed on a combined basis
(for example, Form 1099-R or 1099-MISC).
3. Be sent separately from Forms 1099, 1098,
3921, 3922, 5498, and W-2G by the forms’ due date
to: Enterprise Computing Center–Martinsburg, Attn:
Chief, Information Returns Branch, Mail Stop 360,
230 Murall Dr., Kearneysville, WV 25430. Do not
send Form 1042-S statements to this address.
Instead, use the address given in the Instructions for
Form 1042-S; see Rev. Proc. 99-50.
Qualified settlement funds. A qualified settlement
fund must file information returns for distributions to
claimants if any transferor to the fund would have
been required to file if the transferor had made the
distributions directly to the claimants.
For distributions to transferors, a fund is subject
to the information reporting requirements of sections
6041 and 6041A and may be required to file Form
1099-MISC. For payments made by the fund on
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behalf of a claimant or transferor, the fund is subject
to these same rules and may have to file Form 1099MISC for the payment to a third party. For
information reporting purposes, a payment made by
the fund on behalf of a claimant or transferor is
considered a distribution to the claimant or transferor
and is also subject to information reporting
requirements.
The same filing requirements, exceptions, and
thresholds may apply to qualified settlement funds
as apply to any other payer. That is, the fund must
determine the character of the payment (for example,
interest, fixed and determinable income, or gross
proceeds from broker transactions) and to whom the
payment is made (for example, corporation or
individual).
For more information, see Regulations section
1.468B-2(l). Also, see Treasury Decision (TD) 9429
available at www.irs.gov/irb/2006-10_IRB/ar05.html.
TD 9249 relates to escrow and similar funds.
Payments to foreign persons. See the Instructions
for Form 1042-S, relating to U.S. source income of
foreign persons, for reporting requirements relating to
payments to foreign persons.
Widely held fixed investment trusts (WHFITs).
Trustees and middlemen of WHFITs are required to
report all items of gross income and proceeds on the
appropriate Form 1099. For the definition of a WHFIT,
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see Regulations section 1.671-5(b)(22). A tax
information statement that includes the information
provided to the IRS on Forms 1099, as well as
additional information identified in Regulations section
1.671-5(e) must be furnished to trust interest holders
(TIHs).
Items of gross income (including OID) attributable
to the TIH for the calendar year including all
amounts of income attributable to selling,
purchasing, or redeeming of a trust holder’s interest
in the WHFIT must be reported. Items of income that
are required to be reported including non pro-rata
partial principal payments, trust sales proceeds,
redemption asset proceeds, and sales of a trust
interest on a secondary market must be reported on
Form 1099-B. See Regulations section 1.671-5(d).
Safe harbor rules for determining the amount of
an item to be reported on Form 1099 and a tax
information statement with respect to a TIH in a nonmortgage WHFIT (NMWHFIT) and a widely held
mortgage trust (WHMT) are found in Regulations
sections 1.671-5(f) and (g) respectively.
Trustees and middlemen must follow all the rules
for filing Forms 1099 with the IRS and furnishing a
statement to the TIH (except as noted below) as
described in parts A through S of these instructions.
Trustees and middlemen should also follow the
separate instructions for Forms 1099-B, 1099-DIV,
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1099-INT, 1099-MISC, and 1099-OID, as applicable,
which may address additional income reporting
requirements.
Due date exception and other requirements
for furnishing statement to TIH. The written tax
information for 2009 furnished to the TIH is due on
or before March 15, 2010. For other items of
expense and credit that must be reported to the TIH,
see Regulations section 1.671-5(c).
There is no reporting requirement if the TIH is an
exempt recipient unless the trustee or middleman
backup withholds under section 3406. If the trustee
or middleman backup withholds, then follow the
rules in part N on page 11. An exempt recipient for
this purpose is defined in Regulations section
1.671-5(b)(7).
Reporting to foreign persons. Items of a
WHFIT attributable to a TIH who is not a U.S. person
must be reported and amounts withheld following the
provisions of sections 1441 through 1464. See Form
1042-S and its separate instructions for more
information.

B. Other Information Returns
The income information you report on the following
forms must not be repeated on Forms 1099 or W-2G.

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• Form W-2, Wage and Tax Statement, reporting
wages and other employee compensation.
• Forms 1042-S and 1000 reporting income to foreign
persons.
• Form 2439 reporting undistributed long-term capital
gains of a regulated investment company (RIC) or
real estate investment trust (REIT).
• Schedule K-1 of Forms 1065 or 1065-B reporting
distributive shares to members of a partnership.
• Schedule K-1 of Form 1041 reporting distributions
to beneficiaries of trusts or estates.
• Schedule K-1 of Form 1120S reporting distributive
shares to shareholders of S corporations.
• Schedule K of Form 1120-IC-DISC reporting actual
and constructive distributions to shareholders and
deferred DISC income.
• • Schedule Q of Form 1066 reporting income from a
real estate mortgage investment conduit (REMIC) to a
residual interest holder.

C. When To File
File Forms 1098, 1099, 3921, 3922, or W-2G on
paper by March 1, 2010, or March 31, 2010, if filing
electronically. Also file Form 1096 with paper forms.
Brokers may file Forms 1096 and 1099-B anytime
after the reporting period they elect to adopt (month,
quarter, or year), but not later than the due date. File
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Form 1096 with Forms 5498, 5498-ESA, and 5498SA by June 1, 2010.
You will meet the requirement to file if the form is
properly addressed and mailed on or before the due
date. If the regular due date falls on a Saturday,
Sunday, or legal holiday, file by the next business
day. A business day is any day that is not a
Saturday, Sunday, or legal holiday. See part M on
page 9 about providing Forms 1098, 1099, 3921,
3922, 5498, and W-2G or statements to recipients.
Private delivery services. You can use certain
private delivery services designated by the IRS to
meet the “timely mailing as timely filing” rule for
information returns. The list includes only the
following.
• DHL Worldwide Express (DHL): DHL “Same Day”
Service; DHL Next Day 10:30 AM; DHL Next Day
12:00 PM; DHL Next Day 3:00 PM; and DHL 2nd Day
Service.
• Federal Express (FedEx): FedEx Priority Overnight,
FedEx Standard Overnight, FedEx 2 Day, FedEx
International Priority, and FedEx International First.
• United Parcel Service (UPS): UPS Next Day Air,
UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd
Day Air A.M., UPS Worldwide Express Plus, and UPS
Worldwide Express.

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The private delivery service can tell you how to
get written proof of the mailing date.
Private delivery services cannot deliver items
to P.O. boxes. You must use the U.S. Postal
Service to mail any item to an IRS P.O. box
address.
Reporting period. Forms 1098, 1099, 3921, 3922,
and W-2G are used to report amounts received, paid,
credited, donated, transferred, or canceled in the
case of Form 1099-C during the calendar year. Forms
5498, 5498-ESA, and 5498-SA are used to report
amounts contributed and the fair market value of an
account for the calendar year.
Extension. You can get an automatic 30-day
extension of time to file by completing Form 8809,
Application for Extension of Time To File Information
Returns. The form may be submitted on paper, or
through the FIRE system either as a fill-in form or an
electronic file. No signature or explanation is required
for the extension. However, you must file Form 8809
by the due date of the returns in order to get the 30day extension. Under certain hardship conditions you
may apply for an additional 30-day extension. See the
instructions for Form 8809 for more information.
How to apply. As soon as you know that a
30-day extension of time to file is needed, file
Form 8809.
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• If you are requesting an extension for 10 or fewer
filers, follow the instructions on Form 8809 and mail it
to the address listed in the instructions on the form.
See the instructions for Form 8809 for more
information.
• If you are requesting an extension for more than 10
filers, you must submit the extension request online or
electronically. You are encouraged to submit requests
for 10 or fewer filers using the online fill-in form. See
Pub. 1220, Part E, for more information on filing
online or electronically.
Extension for statements to recipients. For
information on requesting an extension of time to file
statements to recipients, see Extension on page 11.

D. Where To File
Use the 3-line address for your state found below for
mailing information returns.
Send all information returns filed on paper to the
following:

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If your legal residence or principal place of
business or principal office or agency is outside the
United States, file with the Department of the
Treasury, Internal Revenue Service Center, Austin,
TX 73301.
State and local tax departments. Contact the
applicable state and local tax department as
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necessary for reporting requirements and where to file
Copy 1 (Forms 1099-MISC and 1099-R). Generally,
the state or local tax department you need to contact
will be located in the recipient’s state of legal
residence.

E. Filing Returns With the IRS
The IRS strongly encourages the quality review of
data before filing to prevent erroneous notices from
being mailed to payees (or others for whom
information is being reported).
If you must file any Form 1098, 1099, 3921, 3922,
5498, or W-2G with the IRS and you are filing paper
forms, you must send a Form 1096 with each type of
form as the transmittal document. You must group
the forms by form number and submit each group
with a separate Form 1096. For example, if you file
Forms 1098, 1099-A, and 1099-MISC, complete one
Form 1096 to transmit Forms 1098, another for Forms
1099-A, and a third for Forms 1099-MISC. Specific
instructions for completing Form 1096 are included
on the form. Also, see Transmitters, paying agents,
etc. below. For information about filing corrected
returns, see part H on page 6.
See Pub. 1179 for specifications for private
printing of substitute information returns. You may
not request special consideration. Only forms that
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conform to the official form and the specifications in
Pub. 1179 are acceptable for filing with the IRS.
Transmitters, paying agents, etc. A transmitter,
service bureau, paying agent, or disbursing agent
(hereafter referred to as “agent”) may sign Form 1096
on behalf of any person required to file (hereafter
referred to as “payer”) if the conditions in 1 and 2
below are met.
1. The agent has the authority to sign the form
under an agency agreement (oral, written, or implied)
that is valid under state law and
2. The agent signs the form and adds the caption
“For: (Name of payer).”
Signing of the form by an authorized agent on
behalf of the payer does not relieve the payer of the
liability for penalties for not filing a correct, complete,
and timely Form 1096 and accompanying returns.
Forms 1098, 1099, 3921, 3922, 5498, W-2G, or
acceptable substitute statements to recipients issued
by a service bureau or agent should show the same
payer’s name as shown on the information returns
filed with the IRS.
For information about the election to report and
deposit backup withholding under the agent’s TIN
and how to prepare forms if the election is made,
see Rev. Proc. 84-33, 1984-1 C.B. 502 and the
Instructions for Form 945.
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Keeping copies. Generally, keep copies of
information returns you filed with the IRS or have the
ability to reconstruct the data for at least 3 years, 4
years for Form 1099-C, from the due date of the
returns. Keep copies of information returns for 4 years
if backup withholding was imposed.
Shipping and mailing. Send the forms to the IRS in
a flat mailing (not folded). If you are sending many
forms, you may send them in conveniently sized
packages. On each package, write your name,
number the packages consecutively, and place Form
1096 in package number one. Postal regulations
require forms and packages to be sent by First-Class
Mail.

F. Electronic Reporting
Electronic reporting may be required for filing all
information returns discussed in these instructions
(see Who must file electronically on this page).
Different types of payments, such as interest,
dividends, and rents, may be reported in the same
submission.
Pub. 1220 provides the procedures for reporting
electronically and is updated annually. Pub. 1220 is
available on the IRS website at www.irs.gov.

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You can file electronically through the
Filing Information Returns Electronically
System (FIRE System); however, you must have
software that can produce a file in the proper format
according to Pub. 1220. The FIRE System does not
provide a fill-in form option for information return
reporting. The FIRE System operates 24 hours a day,
7 days a week. You may access the FIRE System via
the Internet at http://fire.irs.gov. See Pub. 1220 for
more information.
Due dates. File Forms 1098, 1099, 3921, 3922, or
W-2G electronically through the FIRE System by
March 31, 2010. File Forms 5498, 5498-ESA, or 5498SA by June 1, 2010. See part M on page 9 about
providing Forms 1098, 1099, 3921, 3922, 5498, and
W-2G or statements to recipients.
Extension of time to file. For information about
requesting an extension of time to file, see Extension
on page 4.
If you file electronically, do not file the same
returns on paper.
Who must file electronically. If you are required to
file 250 or more information returns, you must file
electronically. The 250-or-more requirement applies
separately to each type of form. For example, if you
must file 500 Forms 1098 and 100 Forms 1099-A, you
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must file Forms 1098 electronically, but you are not
required to file Forms 1099-A electronically.
The electronic filing requirement does not apply if
you apply for and receive a hardship waiver. See
How to request a waiver from filing electronically on
page 6.
The IRS encourages you to file electronically
even though you are filing fewer than 250
returns.
Filing requirement applies separately to originals
and corrections. The electronic filing requirements
apply separately to original returns and corrected
returns. Originals and corrections are not aggregated
to determine whether you are required to file
electronically. For example, if you file 400 Forms 1098
electronically and you are making 75 corrections, your
corrections can be filed on paper because the number
of corrections for Form 1098 is less than the 250 filing
requirement. However, if you were filing 250 or more
Form 1098 corrections, they would have to be filed
electronically.
Reporting incorrect payer name and/or TIN. If a
payer discovers an error in reporting the payer name
and/or TIN, write a letter to IRS/ECC–MTB (see
below) containing the:
1. Name and address of the payer,
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2. Type of error (including the incorrect payer
name/TIN that was reported),
3. Tax year,
4. Payer TIN,
5. Transmitter Control Code (TCC), if applicable,
6. Type of return,
7. Number of payees, and
8. Filing method (paper or electronic).
Send the letter to Enterprise Computing Center–
Martinsburg, Information Reporting Program, 240
Murall Drive, Kearneysville, WV 25430. Also see Pub.
1220, Part A, Section 10.11.
If a payer realizes duplicate reporting or a large
percentage of incorrect information has been filed,
contact the information reporting customer service
site at 1-866-455-7438 for further instructions.
How to get approval to file electronically. File
Form 4419, Application for Filing Information Returns
Electronically, at least 30 days before the due date of
the returns. File Form 4419 for all types of returns that
will be filed electronically. See Form 4419 for more
information. Once you have received approval, you
need not reapply each year. The IRS will provide a
written reply to the applicant and further instructions
at the time of approval, usually within 30 days.

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How to request a waiver from filing electronically.
To receive a waiver from the required filing of
information returns electronically, submit Form 8508,
Request for Waiver From Filing Information Returns
Electronically, at least 45 days before the due date of
the returns. You cannot apply for a waiver for more
than 1 tax year at a time. If you need a waiver for
more than 1 tax year, you must reapply at the
appropriate time each year.
If a waiver for original returns is approved, any
corrections for the same types of returns will be
covered under the waiver. However, if you submit
original returns electronically but you want to submit
your corrections on paper, a waiver must be
approved for the corrections if you must file 250 or
more corrections.
If you receive an approved waiver, do not send a
copy of it to the service center where you file your
paper returns. Keep the waiver for your records only.
Penalty. If you are required to file electronically but
fail to do so, and you do not have an approved
waiver, you may be subject to a penalty of $50 per
return for failure to file electronically unless you
establish reasonable cause. However, you can file up
to 250 returns on paper; those returns will not be
subject to a penalty for failure to file electronically.

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The penalty applies separately to original returns
and corrected returns. See Filing requirement applies
separately to originals and corrections on page 5.

G. Paper Document Reporting
If you are required to file 250 or more information
returns, see part F on page 5.
Common errors. Be sure to check your returns to
prevent the following common errors.
1. Duplicate filing. Do not send the same
information to the IRS more than once. Also see
Multiple filings later.
2. Filer’s name, address, and TIN are not the
same on Form 1096 and the attached Forms 1099,
1098, 3921, 3922, 5498, or W-2G.
3. Decimal point to show dollars and cents
omitted. For example, 1230.00 is correct, not 1230.
4. Two or more types of returns submitted with
one Form 1096 (for example, Forms 1099-INT and
1099-MISC with one Form 1096). You must submit a
separate Form 1096 with each type of return.
Multiple filings. If, after you file Forms 1099, 1098,
3921, 3922, 5498, or W-2G, you discover additional
forms that are required to be filed, file these forms with
a new Form 1096. Do not include copies or
information from previously filed returns.
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Required format. Because paper forms are scanned,
all Forms 1096 and Copies A of Forms 1098, 1099,
3921, 3922, and 5498 must be prepared in
accordance with the following instructions. If these
instructions are not followed, you may be subject to a
penalty of $50 for each incorrectly filed document.
1. Do not cut or separate Copies A of the forms
that are printed two or three to a sheet (except Forms
W-2G and 1098-C). Generally, Forms 1098, 1099,
3921, 3922, and 5498 are printed two or three to an
8 x 11 inch sheet. Form 1096 is printed one to an 8 x
11 inch sheet. These forms must be submitted to the
IRS on the 8 x 11 inch sheet. If at least one form on
the page is correctly completed, you must submit the
entire page. Forms W-2G may be separated and
submitted as single forms. Send the forms to the IRS
in a flat mailing (not folded).
2. No photocopies of any forms are acceptable.
See How To Get Forms, Publications, and Other
Assistance on page 15.
3. Do not staple, tear, or tape any of these forms.
It will interfere with the IRS’s ability to scan the
documents.
4. Pinfeed holes on the form are not acceptable.
Pinfeed strips outside the 8 x 11 inch area must be
removed before submission, without tearing or ripping
the form. Substitute forms prepared in continuous or
strip form must be burst and stripped to conform to the
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size specified for a single sheet (8 x 11 inches) before
they are filed with the IRS.
5. Do not change the title of any box on any form.
Do not use a form to report information that is not
properly reportable on that form. If you are unsure of
where to report the data, call the information reporting
call site at 1-866-455-7438 (toll free).
6. Report information only in the appropriate
boxes provided on the forms. Make only one entry in
each box unless otherwise indicated in the form’s
specific instructions.
7. Do not submit any copy other than Copy A to
the IRS.
8. Do not use prior year forms unless you are
reporting prior year information; do not use
subsequent year forms for the current year. Because
forms are scanned, you must use the current year
form to report current year information.
9. Use the official forms or substitute forms that
meet the specifications in Pub. 1179. If you submit
substitute forms that do not meet the current
specifications and that are not scannable, you may be
subject to a penalty of $50 for each return for
improper format.
10. Do not use dollar signs ($) (they are
preprinted on the forms), ampersands (&), asterisks
(*), commas (,), or other special characters in money
amount boxes.
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11. Do not use apostrophes (’), asterisks (*), or
other special characters on the payee name line.
Suggested format. Follow these suggestions.
1. Although handwritten forms are acceptable, the
IRS prefers that you type or machine print data
entries using 10 pitch (pica) or 12 pitch (elite) black
type. Use block print, not script characters. Insert data
in the middle of the blocks well separated from other
printing and guidelines, and take other measures to
guarantee a dark black, clear, sharp image.
2. Do not enter 0 (zero) or “None” in money
amount boxes when no entry is required. Leave the
boxes blank unless the instructions specifically
require that you enter a 0 (zero). For example, in
some cases, you must enter 0 (zero) to make
corrections. See part H below.
3. Do not enter number signs (#)—RT 2, not
Rt. #2.

H. Corrected Returns on Paper Forms
To file corrections for electronically filed forms,
see part F on page 5 and Pub. 1220.
If you filed a return with the IRS and later discover
you made an error on it, you must:
• Correct it as soon as possible and file Copy A and
Form 1096 with your Internal Revenue Service Center
(see part D on page 5).
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• Furnish statements to recipients showing the
correction.
• When making a correction, complete all information
(see Filing Corrected Returns on Paper Forms on
page 7).
• Do not cut or separate forms that are two or three to
a page. Submit the entire page even if only one of the
forms on the page is completed.
• Do not staple the forms to Form 1096.
• Do not send corrected returns to the IRS if you are
correcting state or local information only. Contact the
state or local tax department for help with this type of
correction.
To correct payer information, see Reporting
incorrect payer name and/or TIN on page 6.
Form 1096. Use a separate Form 1096 for each type
of return you are correcting. For the same type of
return, you may use one Form 1096 for both originals
and corrections. You do not need to correct a
previously filed Form 1096.
CORRECTED checkbox. Enter an “X” in the
corrected checkbox only when correcting a form
previously filed with the IRS or furnished to the
recipient. Certain errors require two returns to make
the correction. See Filing Corrected Returns on Paper
Forms on page 7 to determine when to mark the
“CORRECTED” checkbox.
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Filing Corrected Returns on Paper Forms
Identify the correction needed based on Error Type 1 or 2; then follow the steps to make the corrections and file the form(s).
Also see Part H on page 6.

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-42-

Account number. If the account number was
provided on the original return, the same account
number must be included on both the original and
corrected returns to properly identify and process the
correction. If the account number was not provided on
the original return, do not include it on the corrected
return. See part L on page 9.
Recipient’s statement. You may enter a date next to
the “CORRECTED” checkbox. This will help the
recipient in the case of multiple corrections.
Filing corrected returns on paper forms. The error
charts on page 7 give step-by-step instructions for
filing corrected returns for the most frequently made
errors. They are grouped under Error Type 1 or 2,
based on how the correction is made. Correction of
errors may require the submission of more than one
return. Be sure to read and follow the steps given.
If you fail to file correct information returns or
furnish a correct payee statement, you may be
subject to a penalty. See part O on page 12.
Regulations section 301.6724-1 (relating to
information return penalties) does not require you to
file corrected returns for missing or incorrect TINs if
you meet the reasonable cause criteria. You are
merely required to include the correct TIN on the next
original return you are required to file. However, if you
do not meet the reasonable cause criteria, a reduced
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penalty may be imposed if the corrected returns are
filed by August 1.
In addition, even if you meet the reasonable
cause criteria, the IRS encourages you to file
corrections for incorrect or missing TINs so that the
IRS can update the payees’ records.

I. Void Returns
An “X” in the “VOID” box at the top of the form will not
correct a previously filed return. See part H on page 6
for instructions for making corrections.
VOID box. If a completed or partially completed Form
1098, 1099, 3921, 3922, or 5498 is incorrect and you
want to void it before submission to the IRS, enter an
“X” in the “VOID” box at the top of the form. For
example, if you make an error while typing or printing
a form, you should void it. The return will then be
disregarded during processing by the IRS. Go to the
next form on the page, or to another page, and enter
the correct information; but do not mark the
“CORRECTED” box. Do not cut or separate the forms
that are two or three to a page. Submit the entire
page even if only one of the forms on the page is a
good return.

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J. Recipient Names and Taxpayer
Identification Numbers (TINs)
Recipient name. Show the full name and address in
the section provided on the information return. If
payments have been made to more than one recipient
or the account is in more than one name, show on the
first name line the name of the recipient whose TIN is
first shown on the return. You may show the names of
any other individual recipients in the area below the
first line, if desired. Form W-2G filers, see the
Instructions for Forms W-2G and 5754.
Sole proprietors. You must show the individual’s
name on the first name line; on the second name line,
you may enter the “doing business as (DBA)” name.
You may not enter only the DBA name. For the TIN,
enter either the individual’s SSN or the EIN of the
business (sole proprietorship). The IRS prefers that
you enter the SSN.
Limited liability company (LLC). For a singlemember LLC (including a foreign LLC with a U.S.
owner) that is disregarded as an entity separate from
its owner under Regulations section 301.7701-3,
enter the individual’s name only on the first name
line and the LLC’s name on the second name line.
For the TIN, enter the individual’s SSN (or EIN, if
applicable). If the LLC is a corporation, partnership,
etc., enter the entity’s EIN.
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Bankruptcy estate. If an individual (the debtor)
for whom you are required to file an information
return is in Chapter 11 bankruptcy, and the debtor
notified you of the bankruptcy estate’s EIN, report
post-petition gross income, gross proceeds, or other
reportable payments on the applicable information
return using the estate’s name and EIN. The debtor
should notify you when the bankruptcy is closed,
dismissed, or converted, so that any subsequent
information returns will be filed with the correct name
and EIN. Different rules apply if the bankruptcy is
converted to Chapter 7, 12, or 13 of the Bankruptcy
Code. For additional guidance, see Notice 2006-83,
available at www.irs.gov/irb/2006-40_IRB/ar12.html.
TINs. TINs are used to associate and verify amounts
you report to the IRS with corresponding amounts on
tax returns. Therefore, it is important that you furnish
correct names, social security numbers (SSNs),
individual taxpayer identification numbers (ITINs), or
employer identification numbers (EINs) for recipients
on the forms sent to the IRS.
Requesting a recipient’s TIN. If the recipient is
a U.S. person (including a U.S. resident alien), the
IRS suggests that you request the recipient
complete Form W-9, Request for Taxpayer
Identification Number and Certification, or Form W9S, Request for Student’s or Borrower’s Taxpayer
Identification Number and Certification, if
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appropriate. See the Instructions for the Requester of
Form W-9 for more information on how to request a
TIN.
If the recipient is a foreign person, the IRS
suggests that you request the recipient complete the
appropriate Form W-8. See the Instructions for the
Requester of Forms W-8BEN, W-8ECI, W-8EXP,
and W-8IMY.
U.S. resident aliens who rely on a “saving
clause” of a tax treaty are to complete Form
W-9, not Form W-8BEN. See Pub. 515,
Withholding of Tax on Nonresident Aliens and
Foreign Entities, and Pub. 519, U.S. Tax Guide for
Aliens.
You may be subject to a penalty for an incorrect
or missing TIN on an information return. See part O
on page 12. You are required to maintain the
confidentiality of information obtained on a Form
W-9/W-9S relating to the taxpayer’s identity
(including SSNs, EINs, and ITINs), and you may use
such information only to comply with the tax laws.
If the recipient does not provide a TIN, leave
the box for the recipient’s TIN blank on the
Form 1098, 1099, 3921, 3922, 5498, or W-2G.
Only one recipient TIN can be entered on the form.
Backup withholding may apply; see part N on
page 11.
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The TIN for individual recipients of information
returns is the SSN or ITIN. See the information
about sole proprietors on this page. For other
recipients, including corporations, partnerships, and
estates, the TIN is the EIN. Income reportable after
the death of an individual must reflect the TIN of the
payee, that is, of the estate or of the surviving joint
owner. For more information, see Personal
Representative in Pub. 559, Survivors, Executors,
and Administrators. For LLCs, see the information
on LLC above.
SSNs and ITINs have nine digits separated by
two hyphens (000-00-0000), and EINs have nine
digits separated by only one hyphen (00-0000000).
Electronic submission of Forms W-9. Requesters
may establish a system for payees and payees’
agents to submit Forms W-9 electronically, including
by fax. A requester is anyone required to file an
information return. A payee is anyone required to
provide a TIN to the requester.
Payee’s agent. A payee’s agent can be an
investment advisor (corporation, partnership, or
individual) or an introducing broker. An investment
advisor must be registered with the Securities
Exchange Commission (SEC) under the Investment
Advisers Act of 1940. The introducing broker is a
broker-dealer that is regulated by the SEC and the
National Association of Securities Dealers, Inc., and
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that is not a payer. Except for a broker who acts as a
payee’s agent for “readily tradable instruments,” the
advisor or broker must show in writing to the payer
that the payee authorized the advisor or broker to
transmit the Form W-9 to the payer.
Generally, the electronic system must:
1. Ensure the information received is the
information sent and document all occasions of user
access that result in the submission.
2. Make reasonably certain the person accessing
the system and submitting the form is the person
identified on Form W-9.
3. Provide the same information as the paper
Form W-9.
4. Be able to supply a hard copy of the electronic
Form W-9 if the IRS requests it.
5. Require as the final entry in the submission an
electronic signature by the payee whose name is on
Form W-9 that authenticates and verifies the
submission. The electronic signature must be under
penalties of perjury and the perjury statement must
contain the language of the paper Form W-9.
For Forms W-9 that are not required to be
signed, the electronic system need not provide
for an electronic signature or a perjury
statement.
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Additional requirements may apply. See
Announcement 98-27 that is available on page 30 of
Internal Revenue Bulletin 1998-15 at
www.irs.gov/pub/irs-irbs/irb98-15.pdf and
Announcement 2001-91, which is available on page
221 of Internal Revenue Bulletin 2001-36 at
www.irs.gov/pub/irs-irbs/irb01-36.pdf.
Electronic submission of Forms W-9S. See the
Instructions for Forms 1098-E and 1098-T.

K. Filer’s Name, Identification Number, and
Address
The TIN for filers of information returns, including sole
proprietors and nominees/middlemen, is the federal
EIN. However, sole proprietors and
nominees/middlemen who are not otherwise required
to have an EIN should use their SSNs. A sole
proprietor is not required to have an EIN unless he or
she has a Keogh plan or must file excise or
employment tax returns. See Pub. 583, Starting a
Business and Keeping Records.
The filer’s name and TIN should be consistent
with the name and TIN used on the filer’s other tax
returns. The name of the filer’s paying agent or
service bureau must not be used in place of the
name of the filer.

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For a single-member LLC (including a foreign
LLC with a U.S. owner) that is disregarded as an
entity separate from its owner under Regulations
section 301.7701-3, enter the individual’s name only
on the first name line and the LLC’s name on the
second name line. For the TIN, enter the individual’s
SSN (or EIN, if applicable). If the LLC is a
corporation, partnership, etc., enter the entity’s EIN.
If you do not have an EIN, you may apply for one
online. Go to the IRS website www.irs.gov and enter
keyword “online EIN” in the upper right corner. You
may also apply by calling 1-800-829-4933 or by
faxing or mailing Form SS-4, Application for
Employer Identification Number, to the IRS. See the
Instructions for Form SS-4 for more information.
Enter your street address including the room,
suite, or other unit number on the forms.

L. Account Number Box on Forms
Use the account number box, when provided, on
Forms 1099, 1098, 3921, 3922, and 5498 for an
account number designation. The account number is
required if you have multiple accounts for a recipient
for whom you are filing more than one information
return of the same type. Additionally, the IRS
encourages you to include the recipient’s account
number on paper forms if your system of records
uses the account number rather than the name or TIN
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for identification purposes. Also, the IRS will include
the account number in future notices to you about
backup withholding. See Pub. 1220 if you are filing
electronically.
The account number may be a checking account
number, savings account number, serial number, or
any other number you assign to the payee that is
unique and will distinguish the specific account. This
number must not appear anywhere else on the form,
and this box may not be used for any other item
unless the separate instructions indicate otherwise.
Using unique account numbers ensures that
corrected information returns will be processed
accurately.
If you are using window envelopes to mail
statements to recipients and using reduced rate
mail, be sure the account number does not appear in
the window. The Postal Service may not accept
these for reduced rate mail.

M. Statements to Recipients (Borrowers,
Debtors, Donors, Insureds, Participants,
Payers/Borrowers, Policyholders, Students,
Transferors, or Winners on Certain Forms)
If you are required to file Forms 1099, 1098, 3921,
3922, 5498, or W-2G, you must also furnish
statements to recipients containing the information
furnished to the IRS and, in some cases, additional
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information. Be sure that the statements you provide
to recipients are clear and legible.
Substitute statements. If you are not using the
official IRS form to furnish statements to recipients,
see Pub. 1179 for specific rules about providing
“substitute” statements to recipients. Generally, a
substitute is any statement other than Copy B of the
official form. You may develop them yourself or buy
them from a private printer. However, the substitutes
must comply with the format and content
requirements specified in Pub. 1179 that is available
on the IRS website at www.irs.gov.
Telephone number. You are required to include the
telephone number of a person to contact on the
following statements to recipients: W-2G, 1098, 1098C, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099CAP, 1 099-DIV, 1 099-G (excluding state and local
income tax refunds), 1099-H, 1099-INT, 1099-LTC,
1099-MISC (excluding fishing boat proceeds), 1099OID, 1099-PATR, 1099-Q, and 1099-S. You may
include the telephone number in any conspicuous
place on the statements. This number must provide
direct access to an individual who can answer
questions about the statement. Although not required,
if you report on other Forms 1099 and 5498, you are
encouraged to furnish telephone numbers.

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Rules for furnishing statements. Different rules
apply to furnishing statements to recipients depending
on the type of payment (or other information) you are
reporting and the form you are filing.
If you are reporting a payment that includes
noncash property, show the fair market value
of the property at the time of payment.
Although, generally, you are not required to report
payments smaller than the minimum described for a
form, you may prefer, for economy and your own
convenience, to file Copies A for al payments. The
IRS encourages this.
Report the type of payment information as
described below and on the next page for: (a)
Dividend, interest, and royalty payments; (b) Real
estate transactions; and (c) Other information.
Dividend, interest, and royalty payments. For
payments of dividends under section 6042 (reported
on Form 1099-DIV), patronage dividends under
section 6044 (reported on Form 1099-PATR), interest
(including original issue discount and tax-exempt
interest) under section 6049 (reported on Form 1099INT or 1099-OID), or royalties under section 6050N
(reported on Form 1099-MISC or 1099-S), you are
required to furnish an official IRS Form 1099 or an
acceptable substitute Form 1099 to a recipient either
in person, by First-Class Mail to the recipient’s last
known address, or electronically (see Electronic
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recipient statements on page 11). Statements may be
sent by intraoffice mail if you use intraoffice mail to
send account information and other correspondence
to the recipient.
Statement mailing requirements for Forms
1099-DIV, 1099-INT, 1099-OID, and 1099-PATR,
and forms reporting royalties only. The following
statement mailing requirements apply only to Forms
1099-DIV (except for section 404(k) dividends),
1099-INT (except for interest reportable in the
course of your trade or business under section
6041), 1099-OID, 1099-PATR, and timber royalties
reported under section 6050N (on Form 1099-MISC
or 1099-S). The mailing must contain the official IRS
Form 1099 or an acceptable substitute and may also
contain the following enclosures: (a) Form W-2,
applicable Form W-8, Form W-9, or other Forms
W-2G, 1098, 1099, 3921, 3922, and 5498
statements; (b) a check from the account being
reported; (c) a letter explaining why no check is
enclosed; (d) a statement of the person’s account
shown on Forms 1099, 1098, 3921, 3922, or 5498;
and (e) a letter explaining the tax consequences of
the information shown on the recipient statement.
A statement of the person’s account (year-end
account summary) that you are permitted to enclose
in a statement mailing may include information
similar to the following: (a) the part of a mutual fund
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distribution that is interest on U.S. Treasury
obligations; (b) accrued interest expense on the
purchase of a debt obligation; and (c) the cost or other
basis of securities and the gain/loss on the sale of
securities.
No additional enclosures, such as advertising,
promotional material, or a quarterly or annual report,
are permitted. Even a sentence or two on the yearend statement describing new services offered by
the payer is not permitted. Logos are permitted on
the envelope and on any nontax enclosures. See
Notice 96-62 which is available on page 8 of Internal
Revenue Bulletin 1996-49 at www.irs.gov/pub/irsirbs/irb96-49.pdf.
Until further guidance is issued regarding the
use of certain logos and identifying slogans on
substitute returns that are subject to the
statement mailing requirements, the IRS will not
assess penalties for the use of a logo (including the
name of the payer in any typeface, font, or stylized
fashion and/or a symbolic icon) or slogan on a
statement to a recipient if the logo or slogan is used
by the payer in the ordinary course of its trade or
business. In addition, use of the logo or slogan must
not make it less likely that a reasonable payee will
recognize the importance of the statement for tax
reporting purposes.
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A recipient statement may be perforated to a
check or to a statement of the recipient’s specific
account. The check or account statement to which
the recipient statement is perforated must contain, in
bold and conspicuous type, the legend “Important
Tax Return Document Attached.”
The legend “Important Tax Return Document
Enclosed” must appear in a bold and conspicuous
manner on the outside of the envelope and on each
letter explaining why no check is enclosed, or on
each check or account statement that is not
perforated to the recipient statement. The legend is
not required on any tax form, tax statement, or
permitted letter of tax consequences included in a
statement mailing. Further, you need not pluralize
the word “document” in the legend simply because
more than one recipient statement is enclosed.
If you provide recipient statements in a
“separate mailing” that contains only recipient
statements, Forms W-8 and W-9, and a letter
explaining the tax consequences of the information
shown on a recipient statement included in the
envelope, you are not required to include the legend
“Important Tax Return Document Enclosed” on the
envelope.
Substitute forms. You may furnish to the
recipient Copy B of the official IRS form, or you may
use substitute Forms 1099-DIV, 1099-INT, 1099-57-

OID, or 1099-PATR, if they contain the same
language as the official IRS forms and they comply
with the rules in Pub. 1179, relating to substitute
Forms 1099. Applicable box titles and numbers must
be clearly identified, using the same wording and
numbering as the official IRS form. For information on
substitute Forms 1099-MISC, see Other information
below. For Forms 1099-S, see Real estate
transactions below.
All substitute statements to recipients must
contain the tax year, form number, and form
name prominently displayed together in one
area of the statement. For example, they could be
shown in the upper right part of the statement.
If you are using substitutes, the IRS encourages
you to use boxes so that the substitute has the
appearance of a form. The substitute form must
contain the applicable instructions as on the front
and back of Copy B (in the case of Form 1099-R,
Copies B, C, and 2) of the official IRS form. See
Pub. 1179 for additional requirements and certain
“composite” statements that are permitted.
Real estate transactions. You must furnish a
statement to the transferor containing the same
information reported to the IRS on Form 1099-S. You
may use Copy B of the official IRS Form 1099-S or a
substitute form that complies with Pub. 1179 and
Regulations section 1.6045-4(m). You may use a
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Uniform Settlement Statement (under the Real Estate
Settlement Procedures Act (RESPA)) as the written
statement if it is conformed by including on the
statement the legend shown on Form 1099-S and by
designating which information is reported to the IRS
on Form 1099-S. You may furnish the statement to
the transferor in person, by mail, or electronically.
Furnish the statement at or after closing but by
February 15 of the following year.
The statement mailing requirements explained
above do not apply to statements to transferors for
proceeds from real estate transactions reported on
Form 1099-S. However, the statement mailing
requirements do apply to statements to transferors
for timber royalties reportable under section 6050N
on Form 1099-S.
Other information. Statements to recipients for
Forms 1098, 1098-C, 1098-E, 1098-T, 1099-A,
1099-B, 1099-C, 1099-CAP, 1099-G, 1099-H,
1099-LTC, 1099-MISC, 1099-Q, 1099-R, 1 099-SA,
3921, 3922, 5498, 5498-ESA, 5498-SA, W-2G,
1099-DIV only for section 404(k) dividends reportable
under section 6047, 1 099-INT only for interest
reportable in the course of your trade or business
under section 6041, or 1099-S only for royalties need
not be, but can be, a copy of the official paper form
filed with the IRS. If you do not use a copy of the
paper form, the form number and title of your
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substitute must be the same as the official IRS form.
All information required to be reported must be
numbered and titled on your substitute in substantially
the same manner as on the official IRS form.
However, if you are reporting a payment as “Other
income” in box 3 of Form 1099-MISC, you may
substitute appropriate explanatory language for the
box title. For example, for payments of accrued
wages to a beneficiary of a deceased employee
required to be reported on Form 1099-MISC, you
might change the title of box 3 to “Beneficiary
payments” or something similar.
Appropriate instructions to the recipient, similar to
those on the official IRS form, must be provided to
aid in the proper reporting of the items on the
recipient’s income tax return. For payments reported
on Form 1099-B, rather than furnish appropriate
instructions with each Form 1099-B statement, you
may furnish to the recipient one set of instructions
for all statements required to be furnished to a
recipient in a calendar year.
Except for royalties reported on Form 1099MISC, the statement mailing requirements explained
earlier do not apply to statements to recipients for
information reported on the forms listed under Other
information above. You may combine the statements
with other reports or financial or commercial notices,
or expand them to include other information of
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interest to the recipient. Be sure that all copies of the
forms are legible. See Pub. 1179 for certain
“composite” statements that are permitted.
When to furnish forms or statements. Generally,
you must furnish Forms 1098, 1099, 3921, 3922, and
W-2G information by February 1, 2010. Forms
1099-B, 1099-S, and 1099-MISC (only if you are
reporting payments in boxes 8 or 14) must be
furnished by February 16, 2010. However, you may
issue them earlier in some situations, as provided by
the regulations. For example, you may furnish Form
1099-INT to the recipient on redemption of U.S.
Savings Bonds at the time of redemption. Brokers
and barter exchanges may furnish Form 1099-B
anytime but not later than February 16, 2010.
Donee organizations required to issue Form
1098-C must furnish the acknowledgment to a donor
within 30 days of the sale of the vehicle (if it is sold
without material improvements or significant
intervening use) or within 30 days of the
contribution.
Trustees or issuers of traditional IRAs must
furnish participants with a statement of the value of
the participant’s account, and RMD if applicable, by
February 1, 2010. The fair market value of SEP
IRAs must also be furnished to the participant by
February 1, 2010. Traditional IRA, Roth IRA, SEP, or
SIMPLE contribution information must be furnished
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to the participant by June 1, 2010. However,
Coverdell ESA contribution information must be
furnished to the beneficiary by April 30, 2010.
Trustees of a SIMPLE must furnish a statement
of the account balance and the account activity by
February 1, 2010.
Trustees and middlemen of a WHFIT must
furnish the required statement by March 15, 2010.
For real estate transactions, you may furnish the
statement to the transferor at closing or by mail on
or before February 16, 2010.
Filers of Form 1099-G who report state or local
income tax refunds, credits, or offsets must furnish
the statements to recipients during January 2010.
Filers of Form 5498-SA who furnish a statement
of FMV of the account to the participant by
February 1, 2010, with no reportable contributions,
including rollovers, made in 2009, need not furnish
another statement by June 1, 2010, to the participant
to report zero contributions. If another statement is
not furnished to the participant, the statement of the
FMV of the account must contain a legend
designating which information is being filed with the
Internal Revenue Service.
See the Guide to Information Returns on pages
17 and 18 for the date other information returns are
due to the recipient.
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You will meet the requirement to furnish the
statement if it is properly addressed and mailed, or
posted to a website, on or before the due date. If the
regular due date falls on a Saturday, Sunday, or
legal holiday, the due date is the next business day.
A business day is any day that is not a Saturday,
Sunday, or legal holiday.
Electronic recipient statements. If you are required
to furnish a written statement (Copy B or an
acceptable substitute) to a recipient, then you may
furnish the statement electronically instead of on
paper. This includes furnishing the statement to
recipients of Forms 1098, 1098-E, 1098-T, 1099-A, B,
C, CAP, DIV, H, INT, G, LTC, MISC, OID, PATR, Q,
R, S, SA, 3921, 3922, 5498, 5498-ESA, and 5498SA. It also includes Form W-2G (except for horse and
dog racing, jai alai, sweepstakes, wagering pools, and
lotteries).
Until further guidance is issued to the contrary,
Form 1098-C may not be furnished
electronically.
If you meet the requirements listed below, you
are treated as furnishing the statement timely.
Consent. The recipient must consent in the
affirmative and not have withdrawn the consent
before the statement is furnished. The consent by
the recipient must be made electronically in a way
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that shows that he or she can access the statement in
the electronic format in which it will be furnished.
You must notify the recipient of any hardware or
software changes prior to furnishing the statement. A
new consent to receive the statement electronically is
required after the new hardware or software is put
into service.
Prior to furnishing the statements electronically,
you must provide the recipient a statement with the
following statements prominently displayed.
• If the recipient does not consent to receive the
statement electronically, a paper copy will be
provided.
• The scope and duration of the consent. For
example, whether the consent applies to every year
the statement is furnished or only for the January 31
or February 15, as applicable, immediately following
the date of the consent.
• How to obtain a paper copy after giving consent.
• How to withdraw the consent. The consent may be
withdrawn at any time by furnishing the withdrawal in
writing (electronically or on paper) to the person
whose name appears on the statement. Confirmation
of the withdrawal also will be in writing (electronically
or on paper).

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• Notice of termination. The notice must state under
what conditions the statements will no longer be
furnished to the recipient.
• Procedures to update the recipient’s information.
• A description of the hardware and software required
to access, print, and retain a statement, and a date
the statement will no longer be available on the
website.
Format, posting, and notification. Additionally,
you must:
• Ensure the electronic format contains all the
required information and complies with the applicable
revenue procedure for substitute statements to
recipients in Pub. 1179.
• Post, on or before the January 31 or February 15,
as applicable, due date, the applicable statement on a
website accessible to the recipient through October 15
of that year.
• Inform the recipient, electronically or by mail, of the
posting and how to access and print the statement.
For more information, see Regulations
section 31.6051-1. For electronic furnishing of Forms
1098-E and 1098-T, see Regulations section
1.6050S-2. For electronic furnishing of Forms 1099R, 1099-SA, 1099-Q, 5498, 5498-ESA, and 5498SA, see Notice 2004-10, available at
www.irs.gov/irb/2004-06_IRB/ar12.html. For
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electronic furnishing of Forms 3921 and 3922, see
Regulation 1031 46-08 available at
www.irs.gov/irb/2008-37_IRB/ar10.html.
Extension. You may request an extension of time to
furnish the statements to recipients by sending a
letter to Enterprise Computing Center–Martinsburg,
Information Reporting Program, Attn: Extension of
Time Coordinator, 240 Murall Drive, Kearneysville,
WV 25430. The letter must include (a) your name, (b)
your TIN, (c) your address, (d) type of return, (e) a
statement that your extension request is for providing
statements to recipients, (f) reason for delay, and (g)
the signature of the payer or authorized agent. Your
request must be postmarked by the date on which the
statements are due to the recipients. If your request
for an extension is approved, generally you will be
granted a maximum of 30 extra days to furnish the
recipient statements.

N. Backup Withholding
Interest (including tax-exempt interest and exemptinterest dividends), dividends, rents, royalties,
commissions, nonemployee compensation, and
certain other payments (including broker and barter
exchange transactions, reportable gross proceeds
paid to attorneys, and certain payments made by
fishing boat operators) may be subject to backup
withholding at a 28% rate. To be subject to backup
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withholding, a payment must be a reportable interest
(including tax-exempt interest and exempt-interest
dividends) or a dividend payment under section
6049(a), 6042(a), or 6044 (if the patronage dividend
is paid in money or qualified check), or an “other”
reportable payment under section 6041, 6041A(a),
6045, 6050A, or 6050N. If the payment is one of
these reportable payments, backup withholding will
apply if:
1. The payee fails to furnish his or her taxpayer
identification number (TIN) to you,
2. For interest, dividend, and broker and barter
exchange accounts opened or instruments acquired
after 1983, the payee fails to certify, under penalties
of perjury, that the TIN provided is correct,
3. The IRS notifies you to impose backup
withholding because the payee furnished an incorrect
TIN (“B” notice),
4. For interest and dividend accounts or
instruments, you are notified that the payee is subject
to backup withholding (under section 3406(a)(1)(C)),
or
5. For interest and dividend accounts opened or
instruments acquired after 1983, the payee fails to
certify to you, under penalties of perjury, that he or
she is not subject to backup withholding under 4
on page 11.
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Except as explained in 2 on page 11, reportable
“other” payments are subject to backup withholding
only if 1 or 3 on page 11 applies.
If you do not collect and pay over backup
withholding from affected payees as required,
you may become liable for any uncollected
amount.
Some payees are exempt from backup
withholding. For a list of exempt payees and other
information, see Form W-9 and the separate
Instructions for the Requester of Form W-9.
Examples of payments to which backup
withholding does not apply include but are not
limited to:
• Wages.
• Distributions from a pension, annuity, profit-sharing
or stock bonus plan, any IRA, an owner-employee
plan, or other deferred compensation plan.
• Distributions from a medical or health savings
account and long-term care benefits.
• Certain surrenders of life insurance contracts.
• Distribution from qualified tuition programs or
Coverdell ESAs.
• Gambling winnings if regular gambling winnings
withholding is required under section 3402(q).
However, if regular gambling winnings withholding is
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not required under section 3402(q), backup
withholding applies if the payee fails to furnish a TIN.
• Real estate transactions reportable under section
6045(e).
• Cancelled debts reportable under section 6050P.
• Fish purchases for cash reportable under section
6050R.
• Certain payment card transactions by a qualified
payment card agent.
At the time these instructions went to print, the
IRS had published proposed Regulations
section 31.3406(g)-1(f) regarding rules for
certain payment card transactions. A proposed
revenue procedure was also issued as Notice 200759, available at www.irs.gov/irb/200730_IRB/ar12.html. For more information, go to
www.irs.gov and enter keyword “QPCA” in the upper
right corner.
When to apply backup withholding. Generally, the
period for which the 28% should be withheld is as
follows.
1. Failure to furnish TIN in the manner required.
Withhold on payments made until the TIN is furnished
in the manner required. Special backup withholding
rules may apply if the payee has applied for a TIN.
The payee may certify to this on Form W-9 by noting
“Applied For” in the TIN block and by signing the
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form. This form then becomes an “awaiting-TIN”
certificate, and the payee has 60 days to obtain a TIN
and furnish it to you. If you do not receive a TIN from
the payee within 60 days and you have not already
begun backup withholding, begin backup withholding
and continue until the TIN is provided.
The 60-day exemption from backup
withholding applies only to interest and
dividend payments and certain payments
made with respect to readily tradable instruments.
Therefore, any other payment, such as nonemployee
compensation, is subject to backup withholding even
if the payee has applied for and is awaiting a TIN. For
information about whether backup withholding applies
during the 60-day period, see Regulations section
31.3406(g)-3.
2. Notice from the IRS that payee’s TIN is
incorrect (“B” notice). You may choose to withhold
on any reportable payment made to the account(s)
subject to backup withholding after receipt of the “B”
notice, but you must withhold on any reportable
payment made to the account more than 30 business
days after you received the “B” notice. Stop
withholding within 30 days after you receive a certified
Form W-9 (or other form that requires the payee to
certify under penalty of perjury).

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The IRS will furnish a notice to you, and you
are required to promptly furnish a copy of such
notice, or an acceptable substitute, to the
payee. For further information, see Regulations
section 31.3406(d)-5 and Pub. 1281.
If you receive two incorrect TIN notices within 3
years for the same account, follow the procedures in
Regulations section 31.3406(d)-5(g) and Pub. 1281.
3. Notice from the IRS that payee is subject to
backup withholding due to notified payee
underreporting. You may choose to withhold on any
reportable payment made to the account(s) subject to
backup withholding after receipt of the notice, but you
must withhold on any reportable payment made to the
account more than 30 business days after you
receive the notice. The IRS will notify you in writing
when to stop withholding, or the payee may furnish
you a written certification from the IRS stating when
the withholding should stop. In most cases, the stop
date will be January 1 of the year following the year of
the notice.
You must notify the payee when withholding
under this procedure starts. For further
information, see Regulations section
31.3406(c)-1(d).
4. Payee failure to certify that he or she is not
subject to backup withholding. Withhold on
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reportable interest and dividends until the certification
has been received.
For exceptions to these general timing rules, see
section 3406(e).
For special rules on backup withholding on
gambling winnings, see the separate
Instructions for Forms W-2G and 5754.
Reporting backup withholding. Report backup
withholding on Form 945, Annual Return of Withheld
Federal Income Tax. Also, report backup withholding
and the amount of the payment on Forms W-2G,
1099-B, DIV, G, INT, MISC, OID, or PATR even if the
amount of the payment is less than the amount for
which an information return is normally required.
Form 945. Report backup withholding, voluntary
withholding on certain government payments, and
withholding from gambling winnings, pensions,
annuities, IRAs, military retirement, and Indian
gaming profits on Form 945. Generally, file Form 945
for 2009 by February 1, 2010. For more information,
including the deposit requirements for Form 945, see
the separate Instructions for Form 945 and Circular
E, Employer’s Tax Guide (Pub. 15).
Do not report on Form 945 any income tax
withholding reported on the following forms.

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• Form W-2 including withholding on distributions to
plan participants from nonqualified plans that must be
reported on Form 941, Employer’s Quarterly Federal
Tax Return.
• Form 1042-S must be reported on Form 1042,
Annual Withholding Tax Return for U.S. Source
Income of Foreign Persons.
Pub. 515 has more information on Form 1042
reporting, partnership withholding on effectively
connected income, and dispositions of U.S. real
property interests by a foreign person.
Additional information. For more information about
backup withholding, see Pub. 1281, Backup
Withholding for Missing and Incorrect Name/TIN(s).

O. Penalties
The following penalties generally apply to the person
required to file information returns. The penalties
apply to paper filers as well as to electronic filers.
For information on the penalty for failure to file
electronically, see Penalty on page 6.
Failure To File Correct Information Returns by the
Due Date (Section 6721)
If you fail to file a correct information return by the due
date and you cannot show reasonable cause, you
may be subject to a penalty. The penalty applies if
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you fail to file timely, you fail to include all information
required to be shown on a return, or you include
incorrect information on a return. The penalty also
applies if you file on paper when you were required to
file electronically, you report an incorrect TIN or fail to
report a TIN, or you fail to file paper forms that are
machine readable.
The amount of the penalty is based on when you
file the correct information return. The penalty is:
• $15 per information return if you correctly file within
30 days (by March 30 if the due date is February 28);
maximum penalty $75,000 per year ($25,000 for
small businesses, defined below).
• $30 per information return if you correctly file more
than 30 days after the due date but by August 1;
maximum penalty $150,000 per year ($50,000 for
small businesses).
• $50 per information return if you file after August 1
or you do not file required information returns;
maximum penalty $250,000 per year ($100,000 for
small businesses).
If you do not file corrections and you do not
meet any of the exceptions to the penalty
described on page 6, the penalty is $50 per
information return.
Small businesses—lower maximum penalties. You
are a small business if your average annual gross
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receipts for the 3 most recent tax years (or for the
period you were in existence, if shorter) ending before
the calendar year in which the information returns
were due are $5 million or less.
Exceptions to the penalty. The following are
exceptions to the failure to file penalty.
1. The penalty will not apply to any failure that you
can show was due to reasonable cause and not to
willful neglect. In general, you must be able to show
that your failure was due to an event beyond your
control or due to significant mitigating factors. You
must also be able to show that you acted in a
responsible manner and took steps to avoid the
failure.
2. An inconsequential error or omission is not
considered a failure to include correct information. An
inconsequential error or omission does not prevent or
hinder the IRS from processing the return, from
correlating the information required to be shown on
the return with the information shown on the payee’s
tax return, or from otherwise putting the return to its
intended use. Errors and omissions that are never
inconsequential are those related to (a) a TIN, (b) a
payee’s surname, and (c) any money amount.
3. De minim us rule for corrections. Even though
you cannot show reasonable cause, the penalty for
failure to file correct information returns will not apply
to a certain number of returns if you:
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a. Filed those information returns,
b. Either failed to include all the information
required on a return or included incorrect information,
and
c. Filed corrections by August 1.
If you meet all the conditions in a, b, and c above, the
penalty for filing incorrect returns (but not for filing late)
will not apply to the greater of 10 information returns
or 1/2 of 1% of the total number of information returns
you are required to file for the calendar year.
Intentional disregard of filing requirements. If any
failure to file a correct information return is due to
intentional disregard of the filing or correct information
requirements, the penalty is at least $100 per
information return with no maximum penalty.
Failure To Furnish Correct Payee Statements
(Section 6722)
If you fail to provide correct payee statements and you
cannot show reasonable cause, you may be subject to
a penalty. The penalty applies if you fail to provide the
statement by January 31 (February 15 for Forms
1099-B, 1099-S, and 1099-MISC (boxes 8 and 14
only)) (see part M on page 9), you fail to include all
information required to be shown on the statement, or
you include incorrect information on the statement.
“Payee statement” has the same meaning as
“statement to recipient” as used in part M on page 9.
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The penalty is $50 per statement, no matter when
the correct statement is furnished, with a maximum of
$100,000 per year. The penalty is not reduced for
furnishing a correct statement by August 1.
Exception. An inconsequential error or omission is
not considered a failure to include correct information.
An inconsequential error or omission cannot
reasonably be expected to prevent or hinder the
payee from timely receiving correct information and
reporting it on his or her income tax return or from
otherwise putting the statement to its intended use.
Errors and omissions that are never inconsequential
are those relating to (a) a dollar amount, (b) a
significant item in a payee’s address, (c) the
appropriate form for the information provided (that is,
whether the form is an acceptable substitute for the
official IRS form), and (d) whether the statement was
furnished in person or by “statement mailing,” when
required.
Intentional disregard of payee statement
requirements. If any failure to provide a correct
payee statement is due to intentional disregard of the
requirements to furnish a correct payee statement,
the penalty is at least $100 per payee statement with
no maximum penalty.

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Forms 1099-Q, 1099-SA, 5498, 5498-ESA, and
5498-SA (Section 6693)
The penalties under sections 6721 and 6722 do not
apply to:
Forms
1099-SA and 5498-SA
5498
5498-ESA
1099-Q

Filed Under Code Section
220(h) and 223(h)
408(i) and 408(l)
530(h)
529(d) and 530(h)

The penalty for failure to timely file Forms 1099SA, 5498-SA, 5498, 5498-ESA, or 1 099-Q is $50 per
return with no maximum, unless the failure is due to
reasonable cause. See section 6693.
Fraudulent Acknowledgments With Respect to
Donations of Motor Vehicles, Boats, and
Airplanes (Section 6720)
If you are required under section 170(f)(12)(A) to
furnish a contemporaneous written acknowledgment
to a donor and you knowingly furnish a false or
fraudulent Form 1098-C, or knowingly fail to furnish a
Form 1098-C within the applicable 30-day period, you
may be subject to a penalty. See the 2009
Instructions for Form 1098-C for more detailed
information.
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Civil Damages for Fraudulent Filing of Information
Returns (Section 7434)
If you willfully file a fraudulent information return for
payments you claim you made to another person, that
person may be able to sue you for damages. You may
have to pay $5,000 or more.

P. Payments to Corporations and
Partnerships
Generally, payments to corporations are not
reportable. However, you must report payments to
corporations for the following.
• Medical and health care payments (Form 1099MISC),
• Withheld federal income tax or foreign tax,
• Barter exchange transactions (Form 1099-B),
• Substitute payments in lieu of dividends and taxexempt interest (Form 1099-MISC),
• Acquisitions or abandonments of secured property
(Form 1099-A),
• Cancellation of debt (Form 1099-C),
• Payments of attorneys’ fees and gross proceeds
paid to attorneys (Form 1099-MISC),
• Fish purchases for cash (Form 1099-MISC),
• The credits for clean renewable energy bonds and
for Gulf tax credit bonds treated as interest and
reported on Form 1099-INT, and
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• Federal executive agency payments for services
(Form 1099-MISC). For additional reporting
requirements, see Rev. Rul. 2003-66 on page 1115 of
Internal Revenue Bulletin 2003-26 at
www.irs.gov/pub/irs-irbs/irb03-26.pdf.
Reporting generally is required for all payments
to partnerships. For example, payments of $600 or
more made in the course of your trade or business to
an architectural firm that is a partnership are
reportable on Form 1099-MISC. However, see
Regulations section 1.6049-4(c)(1 )(ii)(A).

Q. Earnings on any IRA, Coverdell ESA,
Archer MSA, or HSA
Generally, income earned in any IRA, Coverdell ESA,
Archer MSA, or HSA, such as interest or dividends, is
not reported on Forms 1099. However, distributions
from such arrangements or accounts must be
reported on Form 1099-R, 1099-Q, or 1 099-SA.

R. Certain Grantor Trusts
Certain grantor trusts (other than WHFITs) may
choose to file Forms 1099 rather than a separate
statement attached to Form 1041, U.S. Income Tax
Return for Estates and Trusts. If you have filed Form
1041 for a grantor trust in the past and you want to
choose the Form 1099 filing method for 2009, you
must have filed a final Form 1041 for 2008. To
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change reporting method, see Regulations section
1.671-4(g) and the Instructions for Form 1041 and
Schedules A, B, D, G, I, J, and K-1.
For more information on WHFITs, see Widely
held fixed investment trusts (WHFITs) on page 4.

S. Special Rules for Reporting Payments
Made Through Foreign Intermediaries and
Foreign Flow-Through Entities on Form 1099
If you are the payer and have received a Form
W-8IMY, Certificate of Foreign Intermediary, Foreign
Flow-Through Entity, or Certain U.S. Branches for
United States Tax Withholding, from a foreign
intermediary or flow-through entity, follow the
instructions on page 15 for completing Form 1099.
Definitions
Foreign intermediary. A foreign intermediary is any
person who is not a U.S. person and acts as a
custodian, broker, nominee, or otherwise as an agent
for another person, regardless of whether that other
person is the beneficial owner of the amount paid, a
flow-through entity, or another intermediary. The
intermediary can be a qualified intermediary or a
nonqualified intermediary.
Qualified intermediary (QI). A QI is a person
that is a party to a withholding agreement with the
IRS and is:
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• A foreign financial institution or a foreign clearing
organization (other than a U.S. branch or U.S. office of
the institution or organization),
• A foreign branch or office of a U.S. financial
institution or a foreign branch or office of a U.S.
clearing organization,
• A foreign corporation for purposes of presenting
claims of benefits under an income tax treaty on
behalf of its shareholders, or
• Any other person the IRS accepts as a qualified
intermediary and who enters into a withholding
agreement with the IRS.
For details on QI agreements, see:
• Rev. Proc. 2000-12 on page 387 of Internal
Revenue Bulletin 2000-4 at www.irs.gov/pub/irsirbs/irb00-4.pdf;
• Modified by Rev. Proc. 2003-64, Section 4A
(Appendix 3), on page 306 of Internal Revenue
Bulletin 2003-32 at www.irs.gov/pub/irs-irbs/irb0332.pdf;
• Further modified by Rev. Proc. 2004-21, available
at www.irs. gov/irb/2004-14_IRB/ar10.html; and
• Also see Rev. Proc. 2005-77 which amends the
final withholding partnership and withholding foreign
trust agreements by expanding the availability of
simplified documentation, reporting, and withholding
procedures, further modifying Rev. Proc. 2003-64.
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Rev. Proc. 2005-77 is available at
www.irs.gov/irb/2005-51_IRB/ar13.html.
Generally, a branch of a financial institution
may not operate as a QI after December 31,
2006, in a country that does not have
approved know-your-customer (KYC) rules. Branches
of financial institutions that operate in non-KYC
approved jurisdictions will be required to act as non
qualified intermediaries after December 31, 2006, or
after December 31, 2007, if an extension to operate
as a QI was approved by the IRS. For additional
information, see Notice 2006-35, available at
www.irs.gov/irb/2006-14_IRB/ar13.html.
Non qualified intermediary (NQI). An NQI is any
intermediary that is not a U.S. person and that is not
a QI.
Foreign flow-through entity (FTE). An FTE is a
foreign partnership (other than a withholding foreign
partnership), a foreign simple trust or foreign grantor
trust (other than a withholding foreign trust), or, for
payments for which a reduced rate of withholding is
claimed under an income tax treaty, any entity to the
extent the entity is considered to be fiscally
transparent under section 894 with respect to the
payment by an interest holder’s jurisdiction.
Withholding foreign partnership or
withholding foreign trust. A withholding foreign
partnership or withholding foreign trust is a foreign
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partnership or a foreign simple or grantor trust that
has entered into a withholding agreement with the
IRS in which it agrees to assume primary withholding
responsibility for all payments that are made to it for its
partners, beneficiaries, or owners. See Rev. Proc.
2003-64 as amended by Rev. Proc. 2004-21, for
procedures for entering into a withholding foreign
partnership or trust agreement.
Non withholding foreign partnership, simple
trust, or grantor trust. A nonwithholding foreign
partnership is any foreign partnership other than a
withholding foreign partnership. A nonwithholding
foreign simple trust is any foreign simple trust that is
not a withholding foreign trust. A nonwithholding
foreign grantor trust is any foreign grantor trust that
is not a withholding foreign trust.
Fiscally transparent entity. An entity is treated
as fiscally transparent with respect to an item of
income to the extent that the interest holders in the
entity must, on a current basis, take into account
separately their shares of an item of income paid to
the entity, whether or not distributed, and must
determine the character of the items of income as if
they were realized directly from the sources from
which they were realized by the entity. For example,
partnerships, common trust funds, and simple trusts
or grantor trusts are generally considered to be
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fiscally transparent with respect to items of income
received by them.
Presumption Rules
For additional information including details on
the presumption rules, see the Instructions for
the Requester of Forms W-8BEN, W-8ECI, W8EXP, and W-8IMY and Pub. 515. To order, see How
To Get Forms, Publications, and Other Assistance on
page 15.
If you are the payer and do not have a Form W-9,
appropriate Form W-8, or other valid documentation,
or you cannot allocate a payment to a specific payee,
prior to payment, you are required to use certain
presumption rules to determine the following.
• The status of the payee as a U.S. or foreign person
and
• The classification of the payee as an individual,
trust, estate, corporation, or partnership.
See Regulations sections 1.1441-1(b)(3),
1.1441-5(d) and (e), 1.6045-1(g)(3)(ii), and 1.60495(d).
Under these presumption rules, if you must
presume that the payee is a U.S. nonexempt
recipient subject to backup withholding, you must
report the payment on a Form 1099. However, if
before filing Form 1099 with the IRS the recipient is
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documented as foreign, then report the payment on
a Form 1042-S.
Conversely, if you must presume that the payee
is a foreign recipient and prior to filing Form 1042-S
with the IRS you discover that the payee is a U.S.
nonexempt recipient based on documentation, then
report all payments made to that payee during the
calendar year on a Form 1099.
If you use the 90-day grace period rule to
presume a payee is foreign, you must file a Form
1042-S to report all payments subject to withholding
during the grace period. If you later discover that the
payee is a U.S. nonexempt recipient subject to
backup withholding, you must file a Form 1099 for all
payments made to that payee after the discovery of
the payee’s U.S. status.
Rules for Payments Made to U.S. Nonexempt
Recipients Through a QI, NQI, or FTE
If you are the payer making a payment through a QI,
NQI, or FTE for a U.S. nonexempt recipient on whose
behalf the QI, NQI, or FTE is acting, use the following
rules to complete Form 1099.
Known recipient. If you know that a payee is a U.S.
nonexempt recipient and have the payee’s name,
address, and TIN (if a TIN has been provided), you
must complete the Form 1099 with that information.
Also, on the second name line below the recipient’s
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name, enter “IMY” followed by the name of the QI,
NQI, or FTE.
For payments made to multiple recipients: (a)
enter the name of the recipient whose status you
relied on to determine the applicable rate of
withholding and (b) on the second name line, enter
“IMY” followed by the name of the QI, NQI, or FTE.
However, if the QI has assumed primary Form 1099
reporting or backup withholding responsibility, you
are not required to issue the Form 1099 or to
backup withhold. See Qualified intermediary (QI) on
page 14.
Unknown recipient. If you cannot reliably associate
a payment with valid documentation and are required
to presume a payee is a U.S. nonexempt recipient:
1. File a Form 1099 and enter “unknown recipient”
on the first name line.
2. On the second name line, enter “IMY” followed
by the name of the QI, NQI, or FTE.
3. Enter the EIN of the QI, NQI, or FTE, if
applicable, in the recipient’s identification number
box.
4. Furnish a copy of the Form 1099 with “unknown
recipient” to the QI, NQI, or FTE who is acting on the
recipient’s behalf.

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A payer that is required to report payments
made to a U.S. nonexempt recipient account
holder but does not receive the necessary
allocation information cannot report those payments
on a pro rata basis. Report unalocated payments
using the presumption rules on page 14.
Rules for Non-U.S. Payers
Non-U.S. payers (foreign persons that are not U.S.
payers) generally have the same reporting obligations
as U.S. payers. A U.S. payer is anyone who is:
• A U.S. person,
• Any U.S. governmental agency,
• A controlled foreign corporation (CFC),
• A foreign partnership that has one or more U.S.
partners who, in the aggregate, hold more than 50
percent of the gross income derived from the conduct
of a U.S. trade or business,
• A foreign person who owns 50 percent or more of
the gross income that is effectively connected with a
U.S. trade or business, or
• A U.S. branch of a foreign bank or a foreign
insurance company.
For more information, see Regulations section
1.6049-5(c)(5).
Exceptions. The following payments are not subject
to reporting by a non-U.S. payer.
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1. A foreign source reportable payment paid
outside the U.S. For example, see Regulations
section 1.6049-5(b)(6).
2. Gross proceeds from a sale effected outside
the U.S. See Regulations section 1.6045-1(a).
3. An NQI or QI that provides another payer all the
information sufficient for that payer to complete Form
1099 reporting. For example, see Regulations section
1.6049-5(b)(14). However, if an NQI or QI does not
provide sufficient information for another payer to
report a payment on Form 1099, the intermediary
must report the payment.
Rules for Reporting Payments Initially Reported
on Form 1042-S
If an NQI or QI receives a Form 1042-S made out to
an “unknown recipient” and the NQI or QI has actual
knowledge that the payee of the income is a U.S.
nonexempt recipient, it must file a Form 1099 even if
the payment has been subject to withholding by
another payer. The NQI or QI reports the amount
withheld by the other payer on Form 1099 as federal
income tax withheld.

T. How To Get Tax Help
Information Reporting Customer Service Site
If you have questions about reporting on Forms 1096,
1098, 1099, 3921, 3922, 5498, W-2, W-2G, and W-3,
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you may call a toll-free number, 1-866-455-7438.
You may still use the original telephone number,
304-263-8700 (not toll free). For TTY/TDD equipment,
call 304-267-3367 (not toll free).
Other tax-related matters. For other tax information
related to business returns or accounts, call
1-800-829-4933.
If you have access to TTY/TDD equipment, call
1-800-829-4059 to ask tax account questions or to
order forms and publications.
Internal Revenue Bulletin
The Internal Revenue Bulletin (IRB), published
weekly, contains newly issued regulations, notices,
announcements, legislation, court decisions, and
other items of general interest. You may find this
publication useful to keep you up to date with current
developments. See How To Get Forms, Publications,
and Other Assistance on this page.
Contacting Your Taxpayer Advocate
The Taxpayer Advocate Service (TAS) is an
independent organization within the IRS whose
employees assist taxpayers who are experiencing
economic harm, who are seeking help in resolving tax
problems that have not been resolved through normal
channels, or who believe that an IRS system or
procedure is not working as it should.
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You can contact the TAS by calling the TAS
toll-free case intake line at 1-877-777-4778 or
TTY/TDD 1-800-829-4059 to see if you are eligible
for assistance. You can also call or write to your
local taxpayer advocate, whose phone number and
address are listed in your local telephone directory
and in Pub. 1546, Taxpayer Advocate Service –
Your Voice at the IRS. You can file Form 911,
Request for Taxpayer Advocate Service Assistance
(And Application for Taxpayer Assistance Order), or
ask an IRS employee to complete it on your behalf.
For more information, go to www.irs.gov/advocate.
Taxpayer Advocacy Panel (TAP). The TAP
listens to taxpayers, identifies taxpayer issues, and
makes suggestions for improving IRS services and
customer satisfaction. If you have suggestions for
improvements, contact the TAP, toll free at 1-888912-1227 or go to www.improveirs.org.
How To Get Forms, Publications, and Other
Assistance
Because the IRS processes paper forms by
machine (optical character recognition
equipment), you cannot file with the IRS Form
1096 or Copy A of Forms 1098, 1099, 3921, 3922, or
5498 that you print from the IRS website or the DVD.

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Free Tax Services
To find out what services are available, get Pub. 910,
IRS Guide to Free Tax Services. It contains lists of
free tax information sources, including publications,
services, and free tax education and assistance
programs. It also has an index of over 100 TeleTax
topics (recorded tax information) you can listen to on
your telephone.
Accessible versions of IRS published products
are available on request in a variety of alternative
formats for people with disabilities.
Mail. You can send your order for forms, instructions,
and publications to the address below. You should
receive a response within 10 days after your request
is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61 704-6613
Internet. You can access the IRS website 24 hours a
day, 7 days a week, at www.irs.gov to:
• Access commercial tax preparation and e-file
services.
• Download forms, instructions, and publications.
• Order IRS products online.
• Research your tax questions online.
• Search publications online by topic or keyword.
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• View Internal Revenue Bulletins (IRBs) published in
the last few years.
• Sign up to receive local and national tax news by
email.
DVD for Tax Products. You can order Pub. 1796,
IRS Federal Tax Products DVD, and obtain:
• Current-year forms, instructions, and publications.
• Prior-year forms, instructions, and publications.
• Tax Map: An electronic research tool and finding
aid.
• Tax Law frequently asked questions (FAQs).
• Tax Topics from the IRS telephone response
system.
• Fill-in, print, and save features for most tax forms.
• Internal Revenue Bulletins.
• Toll-free and email technical support.
• The DVD is released twice during the year.
• The first release will ship the beginning of
January.
• The final release will ship the beginning of March.
Purchase the DVD from National Technical
Information Service at www.irs.gov/cdorders for $30
(no handling fee) or call 1 -877-CDFORMS
(1-877-233-6767) toll-free to buy the DVD for $30
(plus a $6 handling fee). Price is subject to change.
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Phone. Many services are available by phone.
• Ordering forms, instructions, and publications. Call
1-800-829-3676 to order current-year forms,
instructions, and publications, and prior-year forms
and instructions. You should receive your order within
10 days.
• TTY/TDD equipment. If you have access to
TTY/TDD equipment, call 1-800-829-4059 to ask tax
questions or to order forms and publications.
Evaluating the quality of our telephone
services. To ensure IRS representatives give
accurate, courteous, and professional answers, we
use several methods to evaluate the quality of our
telephone services. One method is for a second IRS
representative to listen in on or record random
telephone calls. Another is to ask some callers to
complete a short survey at the end of the call.
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, 6039, 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
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file an information return with the IRS and furnish a
statement to recipients. Section 6109 and its
regulations require you to provide your TIN 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:
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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 5.
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Guide to Information Returns (If any date shown falls on a Saturday,
Sunday, or legal holiday, the due date is the next business day.)

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Guide to Information Returns (Continued)

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Types of Payments
Below is an alphabetic list of some payments and the forms to file and
report them. However, it is not a complete list of al payments, and the
absence of a payment from the list does not indicate that the payment is
not reportable. For instructions on a specific type of payment, see the
separate instructions in the form(s) listed.

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Types of Payments, Continued
Types of Payment

Report on Form

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Types of Payments, Continued
Types of Payment

Report on Form

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Types of Payments, Continued
Types of Payment

Report on Form

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Index
Account number box .................................................. 9
B
Backup withholding ....................................... 2, 11, 12
C
Corporations, payments to ...................................... 13
Corrected returns, how to file .................................... 6
D
Due dates ........................................................ 4, 5, 10
E
Electronic reporting ................................................... 5
Extension to file ......................................................... 4
Extension to furnish statements .............................. 11
F
Filing returns ............................................................. 5
FIRE System ............................................................. 5
Foreign intermediaries, payments made through .... 14
Foreign person, payment to....................................... 4
Form 1096 ............................................................. 2, 5
Form 945 ................................................................. 12
Form W-9 ................................................................... 9
Forms, how to get ................................................... 15
G
Grantor trusts .......................................................... 14
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H
Help.......................................................................... 15
I
Information returns, other ......................................... 4
K
Keeping copies ......................................................... 5
L
Limited liability company (LLC) ............................. 8, 9
Logos or substitute statements ............................... 10
M
Mailing forms ............................................................. 5
N
Names, TINs, etc. ...................................................... 8
Nominee/middleman .................................................. 3
O
Ordering forms ........................................................ 15
P
Paper document reporting ......................................... 6
Partnerships, payments to ....................................... 13
Payee statements ........................................... .2, 9, 10
Payments made through foreign intermediaries ..... 15
Penalties ............................................................. 6, 12
Private delivery services ........................................... 4
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Q
Qualified settlement funds ......................................... 3
S
State and local tax departments ............................... 5
Statement mailing requirements ............................. 10
Statements to recipients ................................. 2, 9, 10
Substitute forms .......................................... 2, 6, 9, 10
Successor/predecessor reporting ............................. 3
T
Taxpayer Advocate ................................................. 15
Taxpayer identification number ........................... 8, 11
Telephone numbers on statements ........................... 9
TIN Matching ............................................................. 3
Transmitters, paying agents, etc................................ 5
W
What’s New ............................................................... 1
When to file ........................................................... 4, 5
When to furnish statements ..................................... 10
Where to file .............................................................. 5
Who must file ......................................................... 3, 5
Widely held fixed investment trusts ........................... 4
Withholding, backup....................................... 2, 11, 12

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