Reporting of Payments by Acquirer in a Reportable Policy Sale

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15:52 - 13-Aug-2018

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2019

Department of the Treasury
Internal Revenue Service

Instructions for Form
1099-LS
Reportable Policy Sale

Future Developments

information must provide direct access to a person who
can answer questions about this information return.

Reminders

Online fillable forms. You may fill out the form, found
online at IRS.gov/Form1099LS, and send Copy B to the
recipient. For filing with the IRS, follow your usual
procedures for filing electronically if you are filing 250 or
more forms. If you are filing this form on paper due to a
low volume of recipients, for this form only, you may
send in the black-and-white Copy A with a Form 1096 that
you print from the IRS website.

For the latest information about developments related to
Form 1099-LS and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1099LS.

In addition to these specific instructions, you should also
use the 2019 General Instructions for Certain Information
Returns. Those general instructions include information
about the following topics.
Who must file.
When and where to file.
Electronic reporting.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers (TINs).
Backup withholding.
Penalties.
Other general topics.
You can get the general instructions from General
Instructions for Certain Information Returns at IRS.gov/
1099generalinstructions or go to IRS.gov/Form1099LS.

General Instructions

This form is used by the acquirer of a life insurance
contract (also known as a life insurance policy), or any
interest in a life insurance contract, in a “reportable policy
sale” to report the acquisition. A “reportable policy sale” is
any direct or indirect acquisition of a life insurance
contract, or any interest in a life insurance contract, if the
acquirer has no substantial family, business, or financial
relationship with the person insured under that contract,
apart from the acquirer’s interest in such life insurance
contract. The acquisition of an interest in a partnership,
trust, or other entity that holds an interest in a life
insurance contract may be an indirect acquisition of a life
insurance contract or an interest in a life insurance
contract and may be a reportable policy sale.

Who Must File

File Form 1099-LS if you are the acquirer of a life
insurance contract, or any interest in a life insurance
contract, in a reportable policy sale.
An acquirer is any person who acquires a life insurance
contract, or any interest in a life insurance contract, in a
reportable policy sale.
If you are the acquirer, enter your name, address,
telephone number, and TIN. Additionally, enter the name,
address, and telephone number of your information
contact, if different from your own. This contact
Aug 13, 2018

Reporting

If you are the acquirer, you must file a separate Form
1099-LS for each payment recipient with respect to each
life insurance contract you acquired, or acquired an
interest in, in a reportable policy sale. Enter the name,
address, and TIN of the payment recipient; the name of
the issuer of the life insurance contract; the policy number
of the life insurance contract; the amount paid to the
payment recipient; and the date of the sale.

Payment Recipient

A payment recipient is any person who receives a
payment in a reportable policy sale.

Issuer

The issuer is the insurance company that bears the risk
with respect to the life insurance contract on the date a
Form 1099-LS is required to be made under section
6050Y(a). In general, this will be the life insurance
company responsible for administering the contract,
including paying death benefits under the life insurance
contract.

Policy Number

The policy number is the unique identifying number
assigned to the life insurance contract by the issuer
named on the Form 1099-LS.

Statements to Payment Recipient and Issuer

If you are required to file Form 1099-LS, you must furnish
a statement or acceptable substitute to the payment
recipient and to the issuer, as shown. However, the
requirement to furnish a statement to the issuer applies
only with respect to any Form 1099-LS you are required to
file identifying a payment recipient from whom you
acquired a life insurance contract, or an interest in a life
insurance contract, in the reportable policy sale being
reported.

Cat. No. 71418S

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IF the statement is for the...

THEN use...

payment recipient

Copy B.

issuer

Copy C.

payment recipient (Copy B). However, filers may not
truncate the payment recipient’s TIN on statements
furnished to an issuer (Copy C). Truncation is not allowed
on any documents the filer files with the IRS. An acquirer’s
TIN may not be truncated on any form. See part J in the
2019 General Instructions for Certain Information Returns.

Specific Instructions

For more information about the requirement to furnish a
statement to the payment recipient and the issuer, see
part M in the 2019 General Instructions for Certain
Information Returns.

Box 1. Amount Paid to Payment Recipient

Enter the total amount paid to the payment recipient in the
reportable policy sale. The acquirer is not required to
report this information to the issuer of the life insurance
contract. Reporting the amount paid to the payment
recipient is therefore optional on Copy C.

Truncating recipient’s TIN on payment recipient
statements. Pursuant to Treasury Regulations section
301.6109-4, all filers of this form may truncate the
payment recipient’s TIN (social security number (SSN),
individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer
identification number (EIN)) on statements furnished to a

Box 2. Date of Sale

Enter the date of the reportable policy sale.

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Instructions for Form 1099-LS (2019)