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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)

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