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                                                                                              Department of the Treasury
                                                                                              Internal Revenue Service
Instructions for Form 

1099-LS

(Rev. December 2019)
Reportable Life Insurance Sale

Section references are to the Internal Revenue Code             reportable policy sale. See Regulations section 1.101-1(e)
unless otherwise noted.                                         (3)(ii).

Future Developments                                             Who Must File
For the latest information about developments related to        Generally, file Form 1099-LS if you are the acquirer of any 
Form 1099-LS and its instructions, such as legislation          interest in a life insurance contract in a reportable policy 
enacted after they were published, go to IRS.gov/               sale.
Form1099LS.
                                                                An acquirer is any person that acquires an interest in a 
Reminders                                                       life insurance contract (through a direct acquisition or 
                                                                indirect acquisition of the interest) in a reportable policy 
In addition to these specific instructions, you should also 
                                                                sale.
use the current General Instructions for Certain 
Information Returns. Those general instructions include         You may not have to file Form 1099-LS if the interest in 
information about the following topics.                         a life insurance contract was transferred to you 
• Who must file.                                                gratuitously, if you qualify for an exception in Regulations 
• When and where to file.                                       section 1.6050Y-2(f), or if another acquirer or third party 
• Electronic reporting.                                         information reporting contractor reports on your behalf 
• Corrected and void returns.                                   under the unified reporting provisions of Regulations 
• Statements to recipients.                                     section 1.6050Y-2(b). You may qualify for an exception in 
• Taxpayer identification numbers.                              Regulations section 1.6050Y-2(f) if you are a foreign 
• Backup withholding.                                           person, if you report reportable policy sale payments 
• Penalties.                                                    made to a person other than the seller under section 6041 
• Other general topics.                                         or 6041A, or if you acquire a life insurance contract in a 
                                                                section 1035 exchange.
  You can get the general instructions at IRS.gov/
1099GeneralInstructions or go to IRS.gov/Form1099LS.            If you are the acquirer, enter your name, address, 
                                                                telephone number, and taxpayer identification number 
Continuous-use form and instructions.     Form 1099-LS          (TIN). Additionally, enter the name, address, and 
and these instructions have been converted from an              telephone number of your information contact, if different 
annual revision to continuous use. Both the form and            from your own. This contact information must provide 
instructions will be updated as needed. For the most            direct access to a person who can answer questions 
recent version, go to IRS.gov/Form1099LS.                       about this information return.
Online fillable Copies B, C, and D. To ease statement 
                                                                Reporting
furnishing requirements, Copies B, C, and D have been 
made fillable online in a PDF format available at IRS.gov/      If you are the acquirer, you must file a separate Form 
Form1099LS. You can complete these copies online for            1099-LS for each payment recipient with respect to each 
furnishing statements to recipients and for retaining in        interest in a life insurance contract you acquired in a 
your own files.                                                 reportable policy sale. Enter the name, address, and 
                                                                taxpayer identification number (TIN) of the payment 
                                                                recipient, the name of the issuer of the life insurance 
General Instructions                                            contract, the policy number of the life insurance contract, 
This form is used by the acquirer of any interest in a life     the amount paid to the payment recipient, and the date of 
insurance contract (also known as a life insurance policy)      the sale. See Regulations section 1.6050Y-2.
in a reportable policy sale to report the acquisition. In 
general, a reportable policy sale is any direct or indirect     Payment Recipient
acquisition of any interest in a life insurance contract if the In general, a reportable policy sale payment recipient 
acquirer, at the time of the acquisition, has no substantial    (payment recipient) is any person that receives a 
family, business, or financial relationship with the person     reportable policy sale payment in a reportable policy sale. 
insured under that contract, apart from the acquirer’s          A payment recipient may include any seller in the 
interest in such life insurance contract. See section 101(a)    reportable policy sale (any person that holds an interest in 
(3). Certain exceptions may apply. See Regulations              a life insurance contract and transfers that interest, or any 
section 1.101-1(c)(2). The acquisition of an interest in a      part of that interest, to an acquirer in a reportable policy 
partnership, trust, or other entity that holds an interest in a sale), as well as any broker or other intermediary that 
life insurance contract may be an indirect acquisition of       retains a portion of the cash or other consideration 
that interest in a life insurance contract and may be a         transferred in the reportable policy sale. See Regulations 

Nov 20, 2019                                         Cat. No. 71418S

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section 1.6050Y-1(a)(16)(i) for the definition of a               For more information about the requirement to furnish a 
reportable policy sale payment recipient and section          statement to the payment recipient and the issuer, see 
1.6050Y-1(a)(18)(i) for the definition of seller. However, a  part M in the current General Instructions for Certain 
person other than a seller is not a payment recipient if that Information Returns.
person received aggregate payments of less than $600 
                                                              Truncating recipient’s TIN on payment recipient 
with respect to a reportable policy sale. See Regulations 
                                                              statements. Pursuant to Regulations section 
section 1.6050Y-1(a)(16)(ii).
                                                              301.6109-4, all filers of this form may truncate the 
Issuer                                                        payment recipient’s TIN (social security number (SSN), 
                                                              individual taxpayer identification number (ITIN), adoption 
The issuer is the person responsible for administering the    taxpayer identification number (ATIN), or employer 
life insurance contract, including collecting premiums and    identification number (EIN)) on statements furnished to a 
paying death benefits under the contract, on the date a       payment recipient (Copy B). Truncation is not allowed on 
Form 1099-LS is required to be furnished under section        any documents the filer files with the IRS. An acquirer’s 
6050Y(a), or their designee. See Regulations section          TIN may not be truncated on any form. See part J in the 
1.6050Y-1(a)(8)(i), (ii), and (iv).                           current General Instructions for Certain Information 
Policy Number                                                 Returns.

The policy number is the unique identifying number            Rescission of Reportable Policy Sale
assigned to the life insurance contract by the issuer         If a reportable policy sale is rescinded and you have filed 
named on the Form 1099-LS.                                    a Form 1099-LS with respect to the reportable policy sale, 
Statements to Payment Recipient and Issuer                    you must file a corrected Form 1099-LS within 15 
                                                              calendar days of the receipt of notice of the rescission. If a 
If you are required to file Form 1099-LS, you must            reportable policy sale is rescinded and you have furnished 
generally furnish a statement or acceptable substitute to     a statement with respect to the reportable policy sale to a 
each payment recipient and to the issuer, as shown in the     payment recipient or issuer, you must furnish the recipient 
table below. The requirement to furnish a statement to the    of that statement with a corrected statement within 15 
issuer applies only with respect to a Form 1099-LS filed      calendar days of the receipt of notice of the rescission. 
with respect to the seller and only if your acquisition of an See Regulations section 1.6050Y-2(e).
interest in a life insurance contract in a reportable policy 
sale is a direct acquisition. See Regulations section         Specific Instructions
1.6050Y-2(d)(2)(i). Statements furnished to the issuer 
should be directed to the administrative office that,         Box 1. Amount Paid to Payment Recipient
pursuant to the life insurance contract, processes            Enter the total amount paid to the payment recipient in the 
transfers of ownership. You may not have to furnish           reportable policy sale. The acquirer is not required to 
statements to the payment recipient and issuer if another     report this information to the issuer of the life insurance 
acquirer or third party information reporting contractor      contract. Reporting the amount paid to the payment 
reports on your behalf under the unified reporting            recipient is therefore optional on Copy C.
provisions of Regulations section 1.6050Y-2(b).
                                                              Box 2. Date of Sale
IF the statement is for the... THEN use...                    Enter the date of the reportable policy sale.
Payment recipient              Copy B
Issuer                         Copy C

                                                              -2-         Instructions for Form 1099-LS (Rev. 12-2019)