What
are information returns?
An information return is a tax document that
certain persons are required to file with the Internal Revenue Service to report
certain business transactions.
An information return is
not an income tax return; it is used for reporting purposes
only. Information on the return is used both to assist taxpayers in preparing
their return and to allow the IRS to match the information from the specified
transaction to the taxpayer’s tax return.
Who has to
file information returns?
Any person, including a corporation, partnership,
individual, estate, trust or LLC that engages in certain transactions during the
calendar year must file information returns to report those transactions to the
IRS. Persons required to file information returns to the IRS must also furnish
statements to the other parties to the transaction.
What
transactions must be reported?
The IRS web site lists 120 transactions
and the forms on which they must be reported. This is not a complete list of
all transactions, and the absence of a transaction from the list does not mean
that the transaction need not be reported. For information on a specific type
of transaction, see the separate instructions for the specific form. The list
can be found at: http://www.irs.gov/efile/article/0,,id=98114,00.html
Which
information returns do I file?
Different types of transactions are reported
on different information returns. All IRS information returns can be found on
the IRS web site at:www.irs.gov/formspubs/index.html.
The specific types of transactions that are required to be reported on each form
can be found in the form’s instructions. All links below are to forms used for
filing 2004 returns.
| Form
Number
| Name |
Instructions |
| Form W-2 | Wage and
Tax Statement | Instructions |
| Form W-2C | Corrected
Wage and Tax Statement | Instructions |
| Form W-2G | Certain
Gambling Winnings | Instructions |
| Form 1042S | Foreign
Person’s U.S. Source Income Subject to Withholding | Instructions |
| Form
1098 | Mortgage Interest Statement | Instructions |
| Form 1098E | Student
Loan Interest Statement | Instructions |
| Form 1098T | Tuition
Statement | Instructions |
| Form 1099A | Acquisition
or Abandonment of Secured Property |
| Form 1099B | Proceeds
from Broker and Barter Exchange Transactions | Instructions |
| Form 1099C | Cancellation
of Debt | Instructions |
| Form 1099DIV | Dividends
and Distributions | Instructions |
| Form 1099G | Certain
Government Payments | Instructions |
| Form 1099INT | Interest
Income | Instructions |
| Form 1099LTC | Long
Term Care and Accelerated Death Benefits | Instructions |
| Form 1099MISC | Miscellaneous
Income | Instructions |
| Form 1099OID | Original
Issue Discount | Instructions |
| Form 1099PATR | Taxable
Distributions Received From Cooperatives | Instructions |
| Form 1099R | Distributions
from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance
Contracts, etc. | Instructions |
| Form 1099S | Proceeds
From Real Estate Transactions | Instructions |
| Form 5498 | IRA Contribution
Information | Instructions |
| Form 5498-ESA | Coverdell
ESA Contribution Information | Instructions |
How
do I file information returns?
Information returns
may be filed via paper by mailing the form to the correct address identified in
the instructions. Certain information returns can be filed using magnetic media.
(See the instructions for the form to see if this is applicable). Forms 1042-S,
1098, 1099, 5498, 8027, and W-2G can also be filed electronically via FIRE (File
Information Returns Electronically) using a secure internet connection. Filing
electronically has a multitude of benefits,including speed, accuracy and cost
effectiveness. Certain information returns are required to be filed electronically
if more than a certain number are filed. For more information on electronic filing
see Tax Tip 805 , the FIRE website
at https://fire.irs.gov/ or
visit the IRS e-file web page under e-file for business
and self employed taxpayers and clicking on Electronic Filing
Options for Business Returns and then on Filing
Information Returns Electronically (FIRE) (Forms 1099, 1098, W-2G & more).
When
are information returns due?
Generally issuers of information
returns must provide copies to recipients by January 31 and to the IRS (or Social
Security Administration depending on the type of form) by February 28. Refer to
the individual instructions for additional information.
What
if I need an extension to file information returns?
You
can get a 30-day extension for filing information returns with the IRS (or SSA)
by submitting Form
8809, Application for Extension of Time To File Information Returns. Refer
to the instructions on the form for additional information.
You
may also request an extension of time to provide statements to recipients by sending
a letter to: IRS - Martinsburg Computing Center, Information Reporting Program,
Attn: Extension of Time Coordinator, 240 Murall Drive, Kearneysville, WV 25430.
If your request is approved, you will be granted a maximum of 30 extra days to
furnish statements to recipients.
What if I made a
mistake on an information return?
A correction should
be filed as soon as possible. For instructions on amending information returns
filed electronically or magnetically, refer to Part A, section 11, of Publication
1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Electronically
or Magnetically.
For instructions on amending paper
information returns, refer to the General
Instructions for Forms 1098, 1099, 5498, or W-2G.
What
will the IRS use when it matches information returns to income tax returns?
The
IRS will use the last corrected information return received.
Where
can I get more information?
You can get more information
on filing information returns at:
