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Formulaire 1099-SB Instructions

Instructions pour le formulaire 1099-SB, Placement du vendeur dans un contrat d'assurance-vie

Rév. Décembre 2019

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Department of the Treasury  
Internal Revenue Service  
Instructions for Form  
1099-SB  
(Rev. December 2019)  
Seller's Investment in Life Insurance Contract  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
Regulations section 1.101-1(c)(2). The acquisition of an  
interest in a partnership, trust, or other entity that holds an  
interest in a life insurance contract may be an indirect  
acquisition of that interest in a life insurance contract and  
may be a reportable policy sale. See Regulations section  
1.101-1(e)(3)(ii).  
In general, an issuer is any person that bears any part  
of the risk with respect to a life insurance contract and any  
person responsible for administering the contract,  
including collecting premiums and paying death benefits.  
See Regulations section 1.6050Y-1(a)(8)(i). An issuer’s  
designee is also considered an issuer. See Regulations  
1.6050Y-1(a)(8)(i) and (iv).  
A seller is any person that holds an interest in a life  
insurance contract and transfers that interest, or any part  
of that interest, to an acquirer in a reportable policy sale or  
that owns a life insurance contract and transfers title to,  
possession of, or legal ownership of that contract to a  
foreign person. See Regulations section 1.6050Y-1(a)  
(18).  
An acquirer is any person that acquires an interest in a  
life insurance contract (through a direct acquisition or  
indirect acquisition of the interest) in a reportable policy  
sale. See Regulations section 1.6050Y-1(a)(1).  
Future Developments  
For the latest information about developments related to  
Form 1099-SB and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/  
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.  
You can get the general instructions from General  
Who Must File  
Continuous-use form and instructions. Form 1099-SB  
and these instructions have been converted from an  
annual revision to continuous use. Both the form and its  
instructions will be updated as needed. For the most  
recent version, go to IRS.gov/Form1099SB.  
Online fillable Copies B and C. To ease statement  
furnishing requirements, Copies B and C have been made  
fillable online in a PDF format available at IRS.gov/  
Form1099SB. You can complete these copies online for  
furnishing statements to recipients and for retaining in  
your own files.  
Generally, file Form 1099-SB if you are the issuer of a life  
insurance contract and either of the following occurs. See  
Regulations sections 1.6050Y-3(a) and 1.6050Y-1(a)(8)  
(iii).  
You receive a statement from an acquirer in a  
reportable policy sale provided under section 6050Y(a),  
such as a copy of a Form 1099-LS, Reportable Life  
Insurance Sale, reporting the transfer of the life insurance  
contract, or an interest therein, in a reportable policy sale.  
You receive, from a source other than the issuer  
responsible for administering the life insurance contract  
(or its designee), notice of a transfer of the life insurance  
contract to a foreign person. In general, notice of a  
transfer to a foreign person means any notice that you  
receive of a transfer of title to, possession of, or legal  
ownership of a life insurance contract that includes foreign  
indicia, including information provided for nontax  
Specific Instructions  
This form is used by the issuer of a life insurance contract  
(also known as a life insurance policy) to report the  
seller’s investment in the contract and surrender amount  
with respect to an interest in a life insurance contract  
transferred in a “reportable policy sale” or transferred to a  
foreign person.  
purposes such as a change of address notice for purpose  
of sending statements or for other purposes, or  
information relating to loans, premiums, or death benefits  
with respect to the contract, unless you know that no  
transfer of the contract has occurred or know that the  
transferee is a U.S. person. See Regulations section  
1.6050Y-1(a)(10). However, if you are not the issuer  
responsible for administering the life insurance contract,  
including collecting premiums and paying death benefits  
under the contract on the date the notice is received, you  
In general, a reportable policy sale is any direct or  
indirect acquisition of any interest in a life insurance  
contract if the acquirer, at the time of the acquisition, has  
no substantial family, business, or financial relationship  
with the person insured under that contract, apart from the  
acquirer’s interest in such life insurance contract. See  
section 101(a)(3). Certain exceptions may apply. See  
Nov 20, 2019  
Cat. No. 71419D  
are not required to file Form 1099-SB if you or your  
designee provide the issuer responsible for administering  
the life insurance contract (or its designee) with such  
notice and with any available information necessary to  
accomplish reporting on the Form 1099-SB. See  
Regulations section 1.6050Y-1(a)(8)(iii)(B). You may not  
have to file Form 1099-SB if you qualify for an exception in  
Regulations section 1.6050Y-3(f) or if another issuer or  
third party information reporting contractor reports on your  
behalf under the unified reporting provisions of  
section 1.6050Y-1(a)(7). Accordingly, with respect to any  
seller other than the original policyholder, the issuer’s  
obligation to report the seller’s investment in the contract  
on any date will be limited to the information that is known  
to the issuer.  
Surrender Amount  
In general, the surrender amount is the amount the seller  
would have received from the issuer responsible for  
administering the life insurance contract if the seller had  
surrendered the life insurance contract to the issuer on the  
date of the reportable policy sale or the transfer of the  
contract to a foreign person. See Regulations section  
1.6050Y-3(a)(3).  
Regulations section 1.6050Y-3(b). You may qualify for an  
exception in Regulations section 1.6050Y-3(f) if the seller  
is a foreign beneficial owner, if you receive notice of a  
transfer to a foreign person but did not receive a written  
statement from an acquirer reporting the transfer as a  
reportable policy sale, or you received a written statement  
from an acquirer reporting your issuance of a life  
insurance contract in a section 1035 exchange as a  
reportable policy sale.  
Enter your name, address, telephone number, and TIN.  
Additionally, enter the name and telephone number of  
your information contact, if different from your own. This  
contact information must provide direct access to a  
person who can answer questions about this information  
return. The information contact may be a call center  
providing access to a person who can answer such  
questions.  
Statement to Seller  
If you are required to file Form 1099-SB, you must furnish  
a statement or acceptable substitute to the seller, such as  
Copy B of Form 1099-SB. For more information about the  
requirement to furnish a statement to the seller, see part  
M in the current General Instructions for Certain  
Information Returns.  
The issuer's information contact name must be  
provided in the appropriate box. The individual  
!
CAUTION  
named must be familiar with the reporting  
requirements of reportable policy sales.  
Truncating recipient’s TIN. Pursuant to Regulations  
section 301.6109-4, all filers of this form may truncate the  
seller’s TIN (social security number (SSN), individual  
taxpayer identification number (ITIN), adoption taxpayer  
identification number (ATIN), or employer identification  
number (EIN)) on statements furnished to a seller (Copy  
B). Truncation is not allowed on any documents the filer  
files with the IRS. An issuer’s TIN may not be truncated on  
any form. See part J in the current General Instructions for  
Certain Information Returns.  
Reporting  
You must file a separate Form 1099-SB for each seller of  
an interest in a life insurance contract with respect to  
which you received a statement provided under section  
6050Y(a) or for each seller of a life insurance contract with  
respect to which you received notice of a transfer to a  
foreign person. Enter the name, address, and TIN of the  
seller; the policy number of the life insurance contract; the  
seller’s investment in the contract; and the surrender  
amount.  
Rescission of Reportable Policy Sale  
Policy Number  
The policy number is the unique identifying number  
assigned to the life insurance contract by the issuer  
responsible for administering the contract.  
If a reportable policy sale or transfer of an insurance  
contract to a foreign person is rescinded and you have  
filed Form 1099-SB with respect to the reportable policy  
sale or transfer, you must file a corrected Form 1099-SB  
within 15 calendar days of the receipt of notice of the  
rescission. If a reportable policy sale or transfer of an  
insurance contract is rescinded and you have furnished a  
statement with respect to the reportable policy sale or  
transfer to a seller, you must furnish the recipient of the  
statement with a corrected statement within 15 calendar  
days of the receipt of notice of the rescission. See  
Regulations section 1.6050Y-3(e).  
Seller’s Investment in the Contract  
Investment in the contract means, with respect to the  
original policyholder of a life insurance contract, the  
aggregate amount of premiums or other consideration  
paid for the contract, less the aggregate amount received  
under the contract, to the extent that such amount was  
excludable from gross income. See Regulations section  
1.6050Y-1(a)(7)(i). With respect to any other person,  
investment in the contract means estimate of investment  
in the contract, which is the aggregate amount of  
Box 1. Investment in Contract  
Enter the seller’s investment in the contract.  
premiums paid for the contract by that person, less the  
aggregate amount received under the contract by that  
person, to the extent such information is known to or can  
reasonably be estimated by the issuer. See Regulations  
Box 2. Surrender Amount  
Enter the surrender amount.  
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Instructions for Form 1099-SB (Rev. 12-2019)