Form 1099-LS is a tax document used to report sales of life insurance policies. It records the money earned by selling a life insurance contract to another person. This ensures that the IRS is informed of all sales transactions involving life insurance policies, safeguarding the transparency and accuracy of taxable income declarations.
A 1099-LS form is issued to anyone who acquires a life insurance policy. This happens in a reportable transaction. This usually means transferring the policy for value. If you buy a policy in such a deal, expect to get this tax form.
A paper form 1099 LS must reach the IRS by February 28th. If it's filed online, the deadline is March 31st. You should get the form as the recipient by January 31st. Keep these dates in mind to stay compliant.
Seller. The original policyholder selling their interest in the life insurance policy.
Buyer/Acquirer. The entity or person purchasing the interest in the life insurance policy, liable to report the transaction via form 1099-LS.
IRS. The federal agency receiving the reporting form to keep track of taxable transactions involving life insurance.
When you receive a form 1099 LS, follow these steps:
Lawrina provides a PDF tool to help fill out the form, making the process easier and more accurate.