Instructions for Form 1098-F (Rev. April 2025)

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Instructions for Form 1098-F
(Rev. April 2025)

Fines, Penalties, and Other Amounts
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 1098-F and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1098F.
You can get the general instructions from IRS.gov/
1099GeneralInstructions.

What’s New
E-filing returns. The Taxpayer First Act of 2019
authorized the Department of the Treasury and the IRS to
issue regulations that reduce the 250-return e-file
threshold. T.D. 9972, published February 23, 2023,
lowered the e-file threshold to 10 (calculated by
aggregating all information returns), effective for
information returns required to be filed on or after January
1, 2024. Go to IRS.gov/InfoReturn for e-file options.
Information Reporting Intake System (IRIS). The IRS
has developed IRIS, an online portal for e-filing
information returns. Go to IRS.gov/IRIS for more
information.

Reminders

In addition to these specific instructions, you should also
use the current 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.
Continuous use revision. Use these instructions for tax
year 2025 and subsequent years until a superseding
revision is issued.
Online fillable Copy B. To ease statement furnishing
requirements, Copy B has been made fillable online in a
PDF format, available at IRS.gov/Form1098F. You can
complete this copy online for furnishing statements to
recipients and for retaining in your own files.
Threshold amount. Pursuant to Regulations section
1.6050X-1(f)(6) the threshold amount for reporting is
$50,000. Reporting is required for a suit, order, or
agreement that becomes binding on or after January 1,
2022. See T.D. 9946, available at IRS.gov/TD9946.

Jan 15, 2025

Specific Instructions
Who Must File

The appropriate official of a government or governmental
entity (including a nongovernmental entity treated as a
governmental entity) must file Form 1098-F, Fines,
Penalties, and Other Amounts. The Form 1098-F reports
the amount required to be paid pursuant to a suit, court
order (order), or agreement with respect to any violation of
a law or the investigation or inquiry into the potential
violation of a law, if the aggregate amount involved in all
suits, orders, or agreements equals or exceeds an amount
determined by the Secretary (“threshold amount”). The
amount required to be paid includes costs to provide
services or to provide property. A separate Form 1098-F
must be filed with respect to each payer that is a party to
the suit, order, or agreement.
Statements to be furnished to payers. If you are
required to file Form 1098-F, you must provide a statement
to the payer. For more information about the requirement
to furnish a statement to the payer, see part M in the
current General Instructions for Certain Information
Returns.
Truncating payer's TIN on statements to payers.
Pursuant to Regulations section 301.6109-4, all filers of
this form may truncate a payer’s TIN (social security
number (SSN), individual taxpayer identification number
(ITIN), adoption taxpayer identification number (ATIN), or
employer identification number (EIN)) on statements to
payers. Truncation is not allowed on any documents the
filer files with the IRS. A filer’s TIN may not be truncated
on any form. See part J in the current General Instructions
for Certain Information Returns.
Filer’s name, address, and telephone number box.
Enter the name, address, and telephone number of the
filer of Form 1098-F. Use this same name and address on
Form 1096.
Payer's name and address boxes. Enter the name and
address, in the appropriate boxes, of the person with
respect to whom Form 1098-F is filed.

Box 1. Total Amount To Be Paid Pursuant to the
Suit, Order, or Agreement

If the aggregate amount required to be paid pursuant to a
suit, order, or agreement to, or at the direction of, a
government or governmental entity in relation to the
violation of a law, or for the investigation or inquiry into the
potential violation of a law, equals or exceeds $50,000,
enter the total amount required to be paid pursuant to the
suit, order, or agreement. This rule applies regardless of
whether any separate amount required to be paid
pursuant to a suit, order, or agreement is less than the
threshold amount. This rule also applies if the aggregate

Instructions for Form 1098F (Rev. 4-2025) Catalog Number 71404E
Department of the Treasury Internal Revenue Service www.irs.gov

amount of all suits, orders, or agreements relating to the
same violation, investigation, or inquiry equals or exceeds
the threshold amount.
Payment amount not identified. If the suit, order, or
agreement does not identify some or all of the total
amount to be paid for the violation of a law or the
investigation, or inquiry into the potential violation of a law,
and the government or governmental entity reasonably
expects the aggregate amount of the payment pursuant to
the suit, order, or agreement to equal or exceed $50,000,
enter $50,000. Enter code E in box 9.
Multiple payers. If, under the suit, order, or agreement,
the aggregate amount to be paid by multiple payers for the
violation of a law or the investigation or inquiry into the
potential violation of a law equals or exceeds $50,000,
enter this payer’s individual and joint and several payment
liability. Enter code B in box 9. Do not file a Form 1098-F
with respect to any person that does not have a payment
obligation or obligation for costs to provide services or to
provide property.

Box 2. Amount To Be Paid for Violation or
Potential Violation

Enter the amount required to be paid for the violation,
investigation, or inquiry into the potential violation of a law.
If some or all of the amount to be paid for the violation or
potential violation of a law is not identified, leave box 2
blank and enter code E in box 9.

Box 3. Restitution/Remediation Amount

Enter the amount required to be paid (or costs to provide
property or to provide services), as a result of the suit,
order, or agreement, which constitutes restitution or
remediation. If some or all of the amount to be paid as
restitution or remediation is not identified, leave box 3
blank and enter code E in box 9.

Box 4. Compliance Amount

Enter the amount required to be paid (or costs to provide
property or to provide services), as a result of the suit,
order, or agreement, for the purpose of coming into
compliance with a law. If some or all of the amount to be
paid to come into compliance with a law is not identified,
leave box 4 blank and enter code E in box 9.
The amount entered in box 1 may or may not
equal the amount entered in box 2, box 3, or
CAUTION box 4, or the sum of box 2 plus box 3 plus box 4.

!

Example. Corporation A (Corp. A) enters into an
agreement with State Y's environmental enforcement
agency (Agency) for violating state environmental laws.
Pursuant to the agreement, Corp. A pays $40,000 to
Agency in civil penalties, $80,000 in restitution for the
environmental harm that the Corp. A has caused, $50,000
for remediation of contaminated sites, and $60,000 to
conduct comprehensive upgrades to Corp. A's operations
to come into compliance with the state environmental
laws.
Pursuant to the settlement agreement, the aggregate
amount Corp. A is required to pay to, or at the direction of

2

Agency, for the violation or potential violation of State Y
law exceeds $50,000. Therefore, an appropriate
government official of Agency must file Form 1098-F.
Agency will complete Form 1098-F as follows:
• Box 1. Total Amount To Be Paid Pursuant to the Suit,
Order, or Agreement. Total Amount $230,000 ($40,000 +
$80,000 + $50,000 + $60,000)
• Box 2. Amount To Be Paid for Violation or Potential
Violation $40,000
• Box 3. Restitution/Remediation Amount $130,000
($80,000 + $50,000)
• Box 4. Compliance Amount $60,000

Box 5. Date of Order/Agreement

Enter the date the order was entered by the court or the
agreement was fully executed.

Box 6. Court or Entity

Enter the name of the court, or any other entity, that
entered the order or approved the agreement, if
applicable.

Box 7. Case Number

Enter the case number associated with the court order or
agreement, if applicable.

Box 8. Case Name or Names of Parties to Suit,
Order, or Agreement

Enter the case name or names of parties to suit, order, or
agreement.

Box 9. Code

Enter one or more of the following codes if applicable.
Read the code descriptions carefully to ensure you
choose the correct one(s).
A—Multiple payments. Use code A if the payer has
made or is obligated to make multiple payments to
satisfy the total payment required by the suit, order, or
agreement.
B—Multiple payers. Use code B if multiple payers
have a payment obligation pursuant to the suit, order,
or agreement.
C—Multiple payees. Use code C if there are multiple
payees pursuant to the suit, order, or agreement.
D—Provision of services or provision of property
required. Use code D if the suit, order, or agreement
requires the payer to provide services or to provide
property.
E—Payment amount not identified. Use code E if
the suit, order, or agreement does not identify some or
all of the amount required to be paid for the violation,
investigation, or inquiry, or if it identifies a payment as
restitution, remediation, or an amount paid to come
into compliance with a law but does not identify some
or all of the aggregate amount the payer must pay. In
addition, use code E if the suit, order, or agreement
does not identify some or all of the amount to be paid
to provide property or to provide services.

Instructions for Form 1098-F (Rev. 4-2025)