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E-file Form 1099-LS Online for 2022 Tax Year

What is 1099-LS Form?

Form 1099-LS is used to report the acquirer’s interest in a life insurance contract/policy in a reportable policy sale to report the acquisition. An acquirer is any person that acquires an interest in a life insurance contract (through direct acquisition or indirect acquisition of the interest) or in a reportable policy sale which means 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 could be a reportable policy sale.

The tax implications of a life insurance settlement should be considered prior to the sale of the life insurance policy. Tax2efile makes it easy to import, print, and e-file Form 1099-LS directly to IRS.

How to File Form 1099-LS?

1099 LS Form
Filer Instructions
  • Box 1: Amount Paid to Payment Recipient
  • Box 2:Date of sale

The policy number is required if, the taxpayer has multiple policies for a recipient for whom they are filing more than one 1099-LS.

Information required to file Form 1099-LS:
  • Taxpayer's (ISSUER/ACQUIRER) information
  • Policy number
  • Acquirer's information

Watch our step-by-step video to E-file Form 1099-LS with IRS.

Who Must File Form 1099-LS?

IRS 1099-LS can be used if you are the acquirer of any interest in a life insurance contract in a reportable policy sale. Tax filings who have acquired interest from a life insurance contract may not need to report on Form 1099-LS if, the received interest in the life insurance contract was provided in generosity if you qualify for an exception under Regulations section 1.6050Y-2 (f), or a third-party information reporting contractor report on your behalf under the unified reporting provisions of Regulations section 1.6050Y-2(b). You may qualify for the Regulations section 1.6050Y-2(f) exception if you are a foreign person, if you report reportable policy sale payments made to a person other than the seller under section 6041 or 6041A, or if you acquire a life insurance contract in a section 1035 exchange. Additionally, enter the name, address, and telephone number of your information contact, if different from your own. This contact information must provide direct access to the person who filed the return.

When is the Deadline to File Form 1099-LS?

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 on the next business day.

Still Have Questions?

Form 1099-LS is used Acquirer of any interest in a life insurance contract in a reportable policy sale.

Details of Acquirers Information & Tin of Acquirers, Payment Recipients Information, Tin, Date of sale.

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

Tax2efile allows you to correct a mistake to the payment recipient 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 1099-LS for a single return the filing fee is $3.25.

The IRS requires Form 1099-LS 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 1099 form, the maximum penalty can be up to $194,000. The penalty increases to $100 per 1099 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 1099 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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