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                                                                                      Department of the Treasury
                                                                                      Internal Revenue Service
Instructions for Form 1099-H

(Rev. December 2020)
Health Coverage Tax Credit (HCTC) Advance Payments

Section references are to the Internal Revenue Code        Transaction Center), as an administrator of the HCTC, will 
unless otherwise noted.                                    file the required returns and furnish statements to the 
                                                           recipients unless you elect to file and furnish information 
Future Developments                                        returns and statements on your own. Contact the HCTC 
For the latest information about developments related to   Program for this purpose by emailing the HCTC Program 
Form 1099-H and its instructions, such as legislation      at wi.hctc.stakehldr.en@irs.gov. Unless you notify the 
enacted after they were published, go to IRS.gov/          HCTC Program of your intent to file information returns 
Form1099H.                                                 and furnish statements, you will be considered to have 
                                                           elected to have the HCTC Program file Form 1099-H and 
Reminders                                                  furnish statements to recipients in satisfying section 
General instructions.   In addition to these specific      6050T filing and furnishing requirements.
instructions, you should also use the current General 
                                                           How To File
Instructions for Certain Information Returns. Those 
general instructions include information about the         For filing with the IRS, see part E in the current General 
following topics.                                          Instructions for Certain Information Returns and Pub. 
Backup withholding.                                      1220.
Electronic reporting.
                                                           Statements to Recipients
Penalties.
Who must file.                                           If you are required to file Form 1099-H, a statement must 
When and where to file.                                  be furnished to the recipient. The HCTC Program will 
Taxpayer identification numbers (TINs).                  furnish a copy of Form 1099-H or an acceptable substitute 
Statements to recipients.                                statement to each recipient on your behalf, unless you 
Corrected and void returns.                              elect to file Form 1099-H and furnish the copy or 
Other general topics.                                    substitute statement yourself. If you make this election, 
                                                           you may fill out the form, found online at IRS.gov/
   You can get the general instructions from General 
                                                           Form1099H, and send Copy B to the recipient. See part J 
Instructions for Certain Information Returns at IRS.gov/
                                                           in the current General Instructions for Certain Information 
1099GeneralInstructions or go to IRS.gov/Form1099H.
                                                           Returns.
Continuous-use form and instructions.       Form 1099-H 
                                                           Truncating recipient‘s TIN on recipient statements. 
and these instructions have been converted from an 
                                                           Pursuant to Treasury Regulations section 301.6109-4, all 
annual revision to continuous use. Both the form and 
                                                           filers of this form may truncate a recipient’s TIN (social 
instructions will be updated as needed. For the most 
                                                           security number (SSN), individual taxpayer identification 
recent version, go to IRS.gov/Form1099H.
                                                           number (ITIN), or adoption taxpayer identification number 
                                                           (ATIN)) on recipient statements. Truncation is not allowed 
Specific Instructions                                      on any documents the filer files with the IRS. A filer’s TIN 
File Form 1099-H if you received any advance payments      may not be truncated on any form. See part J in the 
during the calendar year of qualified health insurance     current General Instructions for Certain Information 
payments for the benefit of recipients of eligible trade   Returns.
adjustment assistance (TAA), Alternative TAA (ATAA),                 Expired ITINs may continue to be used for 
Reemployment TAA (RTAA); or Pension Benefit Guaranty          !      information return purposes regardless of whether 
Corporation (PBGC) payees, and their qualifying family     CAUTION   they have expired for individual income tax return 
members. These individuals are referred to in these        filing purposes. See part J in the current General 
instructions as recipients.                                Instructions for Certain Information Returns.

Who Must File                                              Waiver of penalties. Section 6724(a) authorizes the IRS 
Section 6050T requires providers of qualified health       to waive any penalties under sections 6721 and 6722 for 
insurance coverage (defined in section 35(e)) that receive failure to comply with the reporting requirements of 
advance payments of the HCTC from the Department of        section 6050T if such failures resulted from reasonable 
the Treasury on behalf of eligible recipients (pursuant to cause and not willful neglect. The HCTC Program will 
section 7527) to file Forms 1099-H to report those         furnish a copy of Form 1099-H or an acceptable substitute 
advance payments and to furnish a statement reporting      statement to each recipient on your behalf, unless you 
that information to the recipient.                         elect to file Form 1099-H and furnish the copy or 
                                                           substitute statement yourself. The IRS will not assert the 
   However, Notice 2004-47, 2004-29 I.R.B. 48, available   penalties imposed by sections 6721 and 6722 for 
at IRS.gov/irb/2004-29_IRB#NOT-2004-47, provides that      information returns and statements required to be filed 
the IRS HCTC Program (formerly the IRS HCTC 

Nov 19, 2020                                          Cat. No. 35080G



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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

and furnished under section 6050T against you if you       exceed 72.5% of the total health insurance premium for 
allow the HCTC Program to file and furnish Forms           the individual.
1099-H. If you elect not to allow the HCTC Program to file 
and furnish Forms 1099-H, the general rules for seeking a  Box 2—No. of Mos. HCTC Payments Received
penalty waiver under section 6724(a) apply. See            Enter the number of months payments were received on 
Regulations section 301.6724-1. For more information on    behalf of the recipient. This number cannot be more than 
penalties, see part O in the current General Instructions  12.
for Certain Information Returns.
                                                           Boxes 3 Through 14—Amount of Advance 
Box 1—Amount of HCTC Advance Payments                      Payment(s) Included in Box 1
Enter the total amount of advance payments of health       Enter the amount of the advance payment received for 
insurance premiums received on behalf of the recipient for each month in the applicable box. You may receive these 
the period January 1 through December 31 of the current    payments prior to the month for which they are paid. Be 
year. The amount received for the current year cannot      sure to enter the amounts in the correct box.

                                                           -2-            Instructions for Form 1099-H (Rev. 12-2020)






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