What is Form 1098-F?
IRS created Form 1098-F for filers to report required payments pursuant to a suit, court order, agreement with respect to any violation of a law, the investigation or inquiry into the potential violation of the law if the aggregate amount involved in all suits, orders, or agreements equals or exceeds an amount determined by the Secretary. If the filers are required to file Form 1098-F, they must provide a statement to the payer when the aggregate amount of a penalty or fine incurred reaches a minimum of $600.
The report must identify any amounts that are for compensation or remediation of property, or correction of noncompliance. Like most forms in the 1099 series and the 1098 series, may have three copies of the form. The first copy will go to the IRS, the second copy will go to the taxpayer, and the third copy to the individual or entity which received payment (in this case a governmental entity). Reporting is required for a suit, order, or agreement that becomes binding on or after January 1.
1098-F forms must be mailed to recipients by February 15 and e-filed with the IRS by March 31 each year.
How to File IRS Form 1098-F?
Information required to file Form 1098-F:
- Taxpayer’s (Donee) information
- Vehicle’s information
- Sales details
IRS requires that all income and deductible expenses are reported by businesses and individuals or penalties could apply. Each sale of a donated vehicle must have gross proceeds of $500 or more.
- Box 1: Total amount
- Box 2: Amount to be paid for violation
- Box 3: Restitution amount
- Box 4: Compliance amount
- Box 5: Date of order/agreement
- Box 6: Court or entity
- Box 7: Case Number
- Box 8: Case name
IRS Paper Filing
IRS Electronic Filing
Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file on the next business day.
Why File 1098-F?
Form 1098-F should be filed for the purpose of furnishing reports of payments made or accrued in pursuance of a court order, suit, agreement, or violation of the law. Such reports are required by section 6050X to be reported to the department of treasury and the payer of said amounts.
Get Started by Registering with Tax2efile Today!