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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 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 15th and e-filed with the IRS by March 31st each year.

How to File IRS Form 1098-F?

1098 F Form
Information required to file Form 1098-F:
  • Filer and Payer information
  • Report Fines/Penalties/Other amounts to be paid
  • Case details

Watch our step by step video for Form 1098-F

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.

1098-F Instructions
  • Box 1: Total amount required to be paid
  • Box 2: Amount to be paid for violation or potential violation
  • Box 3: Restitution/remediation amount
  • Box 4: Compliance amount
  • Box 5: Date of order/agreement
  • Box 6: Court or entity
  • Box 7: Case number
  • Box 8: Case name or names or parties to suit, order or agreement
  • Box 9: Code

A—Multiple payments. Use code A if the payer has made or is obligated to make multiple payments to satisfy the total payment required by the suit, order, or agreement.

B—Multiple payers. Use code B if multiple payers have a payment obligation pursuant to the suit, order, or agreement.

C—Multiple payees. Use code C if there are multiple payees pursuant to the suit, order, or agreement.

D—Provision of services or provision of property required. Use code D if the suit, order, or agreement requires the payer to provide services or to provide property.

E—Payment amount not identified. Use code E if the suit, order, or agreement does not identify some or all of the amount required to be paid for the violation, investigation, or inquiry, or if it identifies a payment as restitution, remediation, or an amount paid to come into compliance with a law but does not identify some or all of the aggregate amount the payer must pay. In addition, use code E if the suit, order, or agreement does not identify some or all of the amount to be paid to provide property or to provide services.

Who Must File 1098-F Tax Return?

  • Government or Governmental entity
  • Non-governmental entity (treated as a governmental entity)

With respect to any violation of a law or the investigation or inquiry into the potential violation of a law, if the aggregate amount involved in all suits, orders, or agreements equals or exceeds an amount determined by the Secretary. If filers are required to file Form 1098-F, they must provide a statement to the payer. Under the suit, order, or agreement, the aggregate amount to be paid by multiple payers for the violation of a law or the investigation or inquiry into the potential violation of law equals or exceeds $50,000, enter this payer’s individual and joint and several payment liabilities

When to File Form 1098-F?

Filing Type Deadline
Recipient copy January 31st
IRS Paper Filing February 28th
IRS Electronic Filing March 31st

Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file 1098 on the next business day.

Why File 1098-F Tax Return?

Form 1098-F reports the amount required to be paid pursuant to a suit, court order (order), or agreement with respect to any violation of a law or the investigation or inquiry into the potential 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.

Remember to select printing and mailing and/or emailing service when completing your 1098-F return so the filer can get their copies of 1098-F efficiently and without delay. For more questions or assistance reach out to our support team.

Still Have Questions?

The Form 1098-F reports the amount required to be paid pursuant to a suit, court order (order), or agreement with respect to any violation of a law or the investigation or inquiry into the potential violation of a law, if the aggregate amount involved in all suits, orders, or agreements equals or exceeds an amount.

The appropriate official of a government or governmental entity (including a nongovernmental entity treated as a governmental entity) must file Form 1098-F, Fines, Penalties, and Other Amounts. The Form 1098-F reports the amount required to be paid pursuant to a suit, court order (order), or agreement with respect to any violation of a law or the investigation or inquiry into the potential violation of a law, if the aggregate amount involved in all suits, orders, or agreements equals or exceeds an amount determined by the Secretary (“threshold amount”). The amount required to be paid includes costs to provide services or to provide property. A separate Form 1098-F must be filed with respect to each payer that is a party to the suit, order, or agreement.

Details required to file Form 1098-F are Filers & Payers Name, Address, TINs, total amounts paid, Amount paid for violations, restitution/remediation amount, compliance amounts as well as Court Entity’s/Number/Codes.

Yes, Tax2efile offers a bulk upload feature that allows the user to upload all of the payers to an excel sheet for a faster process.

Tax2efile allows you to correct a mistake to the payer’s information for TINs, Names & amounts.

Yes, Tax2efile offers printing and mailing service! Our dedicated team will print and mail out each form you filed.

Using our fast electronic service, you can complete your filing within 5 minutes.

To file Form 1098-F for a single return the filing fee is $3.25.

The IRS requires Form 1098-F to be submitted by February 28 through the mail and by March 31 if you file the form electronically however, recipients’ copy should be mailed by January 31

The penalty can be from $50 per 1098 form, the maximum penalty can be up to $194,000. The penalty increases to $100 per 1098 form if you submit more than 30 days after the due date, but by August 1; the maximum penalty is $556,500. If you file after August 1, the penalty increases to $280 per 1098 form, with a maximum of $3,392,000. Additionally, there are penalties for failure to furnish the payee statement.

If you have more questions, please refer to our FAQ page.

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