Information Reporting for Certain Life Insurance Contract Transactions

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Form 1099-SB Seller's Investment in Life Insurance Contract	Form	Modified	Available
Form 1099-LS Reportable Life Insurance Sale	Form	Modified	Repair queued
Form 1099-LS Reporting of Payments by Acquirer in a Reportable Policy Sale	Form	Modified	Repair queued
2025 Supporting Statement 1545-2281.docx	Supporting Statement A	Uploaded 2025-02-24	Repair queued
2025 Supporting Statement 1545-2281.docx	Supporting Statement A	Uploaded 2025-02-24	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
234018	Reporting of Payments by Acquirer in a Reportable Policy Sale	Form	Modified	Seller's Investment in Life Insurance Contract
234018	Reporting of Payments by Acquirer in a Reportable Policy Sale	Form	Modified	Reportable Life Insurance Sale
234018	Reporting of Payments by Acquirer in a Reportable Policy Sale	Form	Modified
234018	Reporting of Payments by Acquirer in a Reportable Policy Sale	Instruction	Modified

ICR Details

OMB Control No: 1545-2281	ICR Reference No: 202408-1545-019
Status: Active	Previous ICR Reference No: 202107-1545-013
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Information Reporting for Certain Life Insurance Contract Transactions
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 05/08/2025
Retrieve Notice of Action (NOA)	Date Received in OIRA: 03/31/2025
Terms of Clearance: OMB understands that the IRS is currently in the process of revising the methodology it uses to estimate burden and costs. OMB expects that future ICRs under this OMB control number will include dollar estimates of annual burden costs to taxpayers calculated using this revised methodology.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2028	36 Months From Approved	05/31/2025
Responses	13,100	0	6,000
Time Burden (Hours)	1,572	0	720
Cost Burden (Dollars)	0	0	0

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Abstract: The collection covers the information reporting requirements for certain life insurance contracts under IRC 6050Y, which was added by the Tax Cuts and Jobs Act (TCJA). Form 1099-LS is used by the acquirer of any interest in a life insurance contract (also known as a life insurance policy) in a reportable policy sale to report the acquisition. Form 1099-SB is used by the issuer of a life insurance contract (also known as a life insurance policy) to report the seller’s investment in the contract and surrender amount with respect to an interest in a life insurance contract transferred in a “reportable policy sale” or transferred to a foreign person.

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Authorizing Statute(s): US Code: 26 USC 6050Y Name of Law: Returns relating to certain life insurance contract transaction
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	89 FR 81989	10/09/2024
30-day Notice:	Federal Register Citation:	Citation Date:
	90 FR 14189	03/28/2025
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

table that charts list of burden

IC Title	Form No.	Form Name
Reporting of Payments by Acquirer in a Reportable Policy Sale	1099-SB, 1099-LS	Reportable Life Insurance Sale ,   Seller's Investment in Life Insurance Contract

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ICR Summary of Burden

table that charts list of burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	13,100	6,000	0	0	7,100	0
Annual Time Burden (Hours)	1,572	720	0	0	852	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: There were no changes made to the forms that resulted in any change to the burden previously reported to OMB. However, the number of responses was updated based on current filing data. This increases the number of responses by 7,100 and the burden hours by 852 annually due to Agency Estimate.

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Annual Cost to Federal Government: $62,677

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 03/31/2025

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